The Trump administration is intensifying its sweeping efforts to shrink the size of the federal workforce by ordering agencies to lay off all probationary employees who had not yet gained civil service protection.
RBI has told at least two state-owned banks to penalize corporate clients for breaching foreign exchange laws by obtaining guarantees from overseas banks. While such guarantees are barred under FEMA, RBI's 2019 master direction allows them. The discrepancies between these regulations have led to confusion and potential legal conflicts, prompting RBI to demand regularization.
The Reserve Bank of India has placed restrictions on New India Co-operative Bank of Mumbai, citing liquidity concerns. With deposits amounting to Rs 2436 crores at the end of March 2024, the bank is now prohibited from granting loans, renewing advances, or accepting new deposits starting February 13, 2025, to safeguard depositors' interests.
The RBI also conducted an overnight variable rate repo (VRR) auction for 2.75 lakh crore, where RBI received bids for 2.35 lakh crore. System liquidity stood at a deficit of 2.07 lakh crore on Wednesday, and has been in a daily average deficit of 1.28 lakh crore in February.
