Weighted average lending rate stood at 9.2% in May
1-Year median Marginal Cost of Funds based Lending Rate (MCLR) of SCBs moderated to 8.90 per cent in June 2025 from 8.95 per cent in May 2025.
The share of External Benchmark based Lending Rate (EBLR) linked loans in total outstanding floating rate rupee loans of SCBs was 61.6 per cent at end-March 2025 (60.6 per cent at end-December 2024), while that of MCLR linked loans was 34.9 per cent (35.9 per cent at end-December 2024).
The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of SCBs stood at 6.11 per cent in May 2025 as compared to 6.34 per cent in April 2025. The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of SCBs was 7.07 per cent in May 2025 (7.10 per cent in April 2025).
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Indian Express
8 hours ago
- Indian Express
Rupee-backed stable coin: An idea whose time has come
Crypto assets raise concerns about monetary sovereignty, financial stability, and risks like money laundering. However, with the GENIUS Act, the US is backing stablecoin — a crypto backed by the full faith of USD. Maybe it is time to evaluate the pros and cons of a well-regulated rupee-backed stablecoin. The following factors can be considered when evaluating the benefits and risks of a rupee-based stablecoin. A clear and robust regulatory framework is essential for launching a rupee-based stablecoin. The RBI took the initiative on Central Bank Digital Currency (CBDC), the e-rupee. The same experimentation and inquisitiveness are required for a rupee-based stable coin. We can adopt a framework similar to the US GENIUS Act, which treats stablecoins as distinct financial instruments. This would involve defining stablecoins as digital tokens backed 1:1 by INR, held in cash, bank deposits, or government securities. It would also need mandating reserve requirements, regular audits, and redemption rights to ensure transparency and user trust. A rupee-backed stablecoin is uncharted territory. It will require close coordination between the RBI, Securities and Exchange Board of India (SEBI), and the Ministry of Finance. Together, they would regulate stablecoin issuers to prevent known risks such as loss of monetary control and unknown risks. Secondly, they would need to ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. The RBI's regulatory sandbox could pilot rupee-backed stablecoins, allowing private players to innovate under controlled conditions before full-scale deployment. India could align its framework with guidelines from the Bank for International Settlements (BIS) and Financial Stability Board (FSB), which emphasise reserve backing, operational resilience, and consumer protection. Building a rupee-based stablecoin also requires a robust technological foundation, leveraging India's digital infrastructure. The issuing of the stablecoin using a permissioned or public blockchain (for example, Ethereum, Polygon, or a custom blockchain like the RBI's e-rupee) is the way forward. Distributed Ledger Technology (DLT) can ensure transparency and immutability. The stablecoin should be linked to India's digital public infrastructure (DPI), such as the Unified Payments Interface (UPI) for seamless domestic transactions, and rely on Aadhaar-based eKYC for user onboarding and compliance. The stablecoin should be designed with smart contracts to enable programmable payments, such as instant settlements for remittances, tokenised export contracts, or direct benefit transfers (DBTs). It is also important to ensure the stablecoin can operate offline (like the e-rupee) to cater to rural and semi-urban areas with limited internet access. It will need regular third-party audits (similar to USDC in the US) to verify reserve backing and ensure the stablecoin's redeemability. The stablecoin could be issued by the RBI or a company promoted by a consortium of regulated financial institutions or Private entities (eg, fintechs or crypto exchanges) under strict regulatory oversight. Rupee-backed stablecoin has several advantages. It would protect Indian users from foreign exchange volatility and reduce reliance on foreign currencies. Integration with India's remittance and trade ecosystems will drive demand for INR-backed stablecoins. A rupee-based stablecoin could address several economic pain points and enhance India's financial ecosystem. Launching a rupee-based stablecoin requires coordination among multiple stakeholders. The RBI would lead regulatory oversight, while the Ministry of Finance and SEBI could define taxation and trading rules. Fintechs, crypto exchanges, and global players like PayPal and Visa could develop and integrate stablecoin solutions. Banks could hold reserves and provide redemption services. Collaboration among blockchain developers and the Reserve Bank Innovation Hub (RBIH) to build the technical infrastructure. A suggested roadmap could include a three-phase implementation. In the first phase, a regulatory framework, pilot INR-backed stablecoins in the RBI sandbox, and integration with UPI and e-rupee. In the second phase, expand to remittances and SME payments, with RBI-regulated issuers and audited reserves. In the third and final phase, scale nationally and explore cross-border applications, aligning with global stablecoin frameworks. India can launch a rupee-based stablecoin by developing a clear regulatory framework, leveraging its digital infrastructure, and ensuring appropriate regulatory oversight and transparency. By integrating with UPI and the e-rupee and focusing on use cases like remittances and trade, India could position itself as a leader in stablecoin innovation, enhancing financial inclusion and global fintech influence. Public-private partnerships will be critical to testing and scaling this initiative. As Victor Hugo said, nothing is more powerful than an idea whose time has come. Rupee-backed stablecoin on balance is an idea whose time has come. The writer is MD, Kotak Mahindra AMC
India.com
9 hours ago
- India.com
SBI makes BIG announcement, home loan rates increased by..., EMIs to now cost more for customers; Here's What it means for new borrowers
SBI makes BIG announcement, home loan rates increased by..., EMIs to now cost more for customers; Here's What it means for new borrowers Even though the Reserve Bank of India (RBI) has cut the repo rate to 5.5 per cent to make borrowing cheaper, the State Bank of India (SBI) has increased home loan rates for new borrowers by 25 basis points. SBI's home loan interest range has now gone up from 7.50 per cent – 8.45 per cent to 7.50 per cent – 8.70 per cent . This means people with lower credit scores could end up paying more, as the highest interest rate has been raised. Other public sector banks, such as Union Bank of India, Bank of India, Bank of Maharashtra, and Central Bank of India, currently offer rates starting from 7.35 per cent and going up to over 10 per cent, depending on a borrower's credit history. Experts say other public banks might also increase rates following SBI's move, even though the RBI's repo rate cut was meant to bring down loan costs and give people some financial relief. Earlier, SBI had said in a report that the RBI's repo rate cut would make home loans cheaper. The impact would be felt fastest in loans linked to the External Benchmark Lending Rate (EBLR), which make up about 60% of all loans given by Scheduled Commercial Banks (SCBs), according to SBI Research. As of August 2025, most new SBI home loans are tied to the EBLR, which is calculated as the RBI's repo rate plus a fixed spread. How SBI's Rate Hike Could Affect Home Loan Borrowers Let's take an example of a Rs. 30 lakh home loan over 20 years. Earlier rate (8.45 per cent) EMI: Rs. 25,830 Total repayment: Rs. 61.99 lakh New rate (8.70 per cent) EMI: Rs. 26,278 Total repayment: Rs. 63.06 lakh That's about Rs. 450 extra per month, which may not sound huge at first, but over the full tenure, it adds up to over Rs. 1 lakh more in repayments. For bigger loans: Say Rs. 50 lakh or more, this effect becomes even more significant, making home ownership costlier, especially for first-time buyers.
Time of India
11 hours ago
- Time of India
Nifty may swing -11% to +4% around 25,000; macro uncertainty clouds outlook: Report
Representative image Nifty 50 could fluctuate between 11 per cent below and 4 per cent above its year-end target of 25,000 as markets face a host of uncertainties, according to a report by BofA Securities. As per news agency ANI, the brokerage said that possible US trade tariffs on Indian goods, a shaky US economic outlook, delays in policy responses, and upcoming elections in six major Indian states could all weigh on investor sentiment. These six states together account for more than 16 per cent of India's public subsidy and capital expenditure. 'We keep our Nifty year-end target intact at 25,000 but expect Nifty to swing -11 per cent to +4 per cent versus this target as markets react to emerging developments around key factors such as trade tariffs, US economic outlook, Fed/RBI cuts, and potential fiscal support to offset tariff impact,' the report noted. BofA expects Nifty earnings to grow 7 per cent in FY26 and 11 per cent in FY27, well below market expectations of 9 per cent and 15 per cent respectively and warned that each earnings season could trigger short-term corrections rather than sustained rallies. The firm added that timely legislative and fiscal reforms, funded by higher RBI dividends, asset sales, fuel duties and leveraged infrastructure spending, could lift market sentiment and provide upside potential. Publicly available data show that both the Nifty 50 and BSE Sensex have been struggling, each in the midst of their longest losing streak in over two decades. They are down about 12.6 per cent and 11.7 per cent respectively from their record highs in September last year, with a roughly 3 per cent decline so far this year. On Thursday, however, both indices ended slightly higher in a volatile session. The Sensex rose 57.75 points (0.07 per cent) to 80,597.66, while the Nifty gained 11.95 points (0.05 per cent) to close at 24,631.30. Gains in IT, pharma, banking and consumer durables were offset by losses in metals, oil and gas, and FMCG. Vinod Nair, head of research at Geojit Financial Services, was quoted by news agency PTI as saying that softer US inflation data and a dovish outlook supported IT and pharma stocks, while hopes for a consumption-led recovery lifted banking and consumer durables. Adding to the broader macro picture, S&P Global Ratings has upgraded India's sovereign credit rating to 'BBB' with a stable outlook, the first such improvement in nearly 19 years, citing robust growth, fiscal discipline, and favourable monetary policy. S&P said the possible impact of US tariffs on India would be 'manageable,' pointing out that around 60 per cent of the country's economic growth comes from domestic consumption, making it less reliant on trade. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
