11 April 2026
Bankopedia Banking Digest — 2026-04-11 #17
- #1financial_expresspositive
ADB Lifts India Growth Outlook to 6.9%
The Asian Development Bank raises India's FY2026-27 growth forecast by 40 basis points to 6.9%, citing stronger private consumption, public investment, and structural reforms. It projects a further acceleration to 7.3% in FY2027-28, supported by trade agreements and higher government employee salaries.
ADB upgrades India's FY27 growth forecast to 6.9%, with further acceleration to 7.3% in FY28.
economy_macro - #2economic_timesneutral
RBI Redraws Upper-Layer NBFC Classification Rules
The Reserve Bank of India proposes revising its scale-based regulation framework to classify Non-Banking Financial Companies (NBFCs) with assets above ₹1 lakh crore as upper-layer entities, bringing eligible government-owned NBFCs into scope for the first time. The draft also permits upper-layer NBFCs to use state government guarantees as credit risk transfer instruments without a prescribed limit.
RBI proposes asset-size threshold of ₹1 lakh crore to define upper-layer NBFCs, including public sector entities.
regulationbanking_supervision - #3economic_timespositive
India Forex Reserves Recover Amid Rupee Pressure
India's foreign exchange reserves rose by $9.06 billion to $697.12 billion in the week ending April 3, 2026, driven by gains in gold and foreign currency assets. Reserves remain well below the record high of $728.49 billion touched in late February, as the Reserve Bank of India continues to intervene in currency markets to stabilise the rupee amid the West Asia conflict.
India's forex reserves rebound by $9.06 billion to $697.12 billion, still $31 billion below February peak.
forexeconomy_macro - #4hindu_businesslineneutral
RBI Drains Surplus Liquidity Via VRRR Auction
The Reserve Bank of India announces a ₹2 lakh crore Variable Rate Reverse Repo (VRRR) auction to absorb surplus liquidity swelled by maturing government securities, with reversal scheduled for April 17. Banking system liquidity stands at an estimated surplus of approximately ₹4.55 lakh crore as of April 9.
RBI conducts ₹2 lakh crore VRRR auction to drain surplus banking liquidity exceeding ₹4.55 lakh crore.
monetary_policypayments - #5reserve_bank_of_indianeutral
RBI Weekly Data: Credit Growth Holds at 13.8%
RBI's weekly statistical supplement shows total foreign exchange reserves at $697.12 billion as of April 3, 2026, with gold holdings up $7.22 billion over the week to $120.74 billion. Scheduled commercial bank credit grew 13.8% year-on-year to ₹20.77 lakh crore as of March 15, 2026, while aggregate deposits expanded 10.8% year-on-year.
Bank credit grows 13.8% year-on-year to ₹20.77 lakh crore; forex reserves stand at $697 billion.
economy_macroforex - #6reserve_bank_of_indianeutral
RBI Simplifies NBFC Upper Layer Classification Criteria
The Reserve Bank of India (RBI) has proposed replacing the existing two-pronged methodology for classifying Non-Banking Financial Companies in the Upper Layer (NBFC-UL) with a simpler asset-size threshold of ₹1,00,000 crore and above. The draft directions also propose bringing eligible government-owned NBFCs under the NBFC-UL framework, moving toward an ownership-neutral regulatory regime.
RBI proposes ₹1 lakh crore asset threshold to simplify NBFC Upper Layer classification.
regulationbanking_supervision - #7reserve_bank_of_indianegative
Pratapgarh Cooperative Bank Licence Cancelled, Winding Up Ordered
The RBI has cancelled the banking licence of National Urban Cooperative Bank Ltd., Pratapgarh, effective April 10, 2026, citing inadequate capital, poor earning prospects, and risk to depositor interests. Approximately 99.76% of depositors are eligible to receive full repayment up to ₹5 lakh through the Deposit Insurance and Credit Guarantee Corporation (DICGC).
RBI cancels Pratapgarh cooperative bank licence; 99.76% of depositors fully covered by DICGC.
banking_supervisionregulation - #8reserve_bank_of_indianegative
Jalna Cooperative Bank Faces Full Withdrawal Freeze Order
The RBI has placed Motiram Agrawal Jalna Merchants Cooperative Bank Limited, Jalna, under strict regulatory directions from April 10, 2026, prohibiting all withdrawals, fresh deposits, and lending activities due to a severe shortfall in liquid assets. The action follows repeated engagement with the bank's board that failed to produce concrete steps to address its liquidity crisis.
RBI freezes all withdrawals at Jalna cooperative bank due to acute liquidity shortfall.
banking_supervisionregulation - #9reserve_bank_of_indianeutral
Overnight Markets Signal Deep System Liquidity Absorption
Overnight money market volumes on April 9, 2026, stood at ₹6,17,684.72 crore, with a weighted average rate of 4.77%, as the RBI absorbed ₹5,59,722 crore through the Standing Deposit Facility (SDF). Net liquidity, including outstanding operations, remained in deficit at ₹4,55,354.26 crore.
RBI absorbs over ₹5.6 lakh crore via SDF, leaving system liquidity in net deficit.
paymentscredit_markets - #10financial_expressneutral
Securities Markets Code Raises Delegated Legislation Constitutional Concerns
Legal practitioners and former Securities and Exchange Board of India (Sebi) officials argue that the proposed Securities Markets Code Bill, 2025 risks unconstitutionally concentrating legislative, executive, and judicial powers within a single regulator. They contend that defining contraventions and prescribing penalties are core legislative functions that cannot be delegated to a regulatory body without breaching constitutional limits.
Securities Markets Code Bill risks unconstitutional delegation of penalty-setting powers to Sebi.
regulationcapital_markets