The Reserve Bank of India (RBI) has said that Manappuram Finance Ltd or group company Manappuram Agro Farms are not eligible to accept nay form of public deposits and any acceptance of deposits will be punishable.

The firm is not eligible to accept deposits as it has converted itself into a non-deposit taking non-banking financial company. The central bank said that the company is not permitted to accept deposits from the public and that is punishable with imprisonment.

Banks in the country are urging individual borrowers to secure their loans by purchasing insurance policies amid growing concerns that non-performing assets (NPAs) are likely to increase in the country.

The country's banks have enjoyed lower levels of NPAs. However, there are growing concerns that many borrowers might be unable to replay loans in the coming months. According to banking officials, both public and private sector banks are convincing their customers to buy policies to cover their personal loans and overdraft facilities.

Global giant, UBS has said that the 50 basis points cut in cash reserve ratio (CRR) announced by the Reserve Bank of India (RBI) on Tuesday signifies a turn in the Indian monetary policy.

UBS said in a note released on Tuesday that, "We believe it is time to add beta and turn less defensive on Indian stocks." The global bank increased rating for infrastructure stocks to overweight from underweight and real estate to overweight from neutral in India.

India’s central Bank, the Reserve Bank of India (RBI) is not likely to change the key interest rates in the country during its upcoming policy review meeting on Tuesday.

The central bank continues to be concerned by the high rate of inflation in the country. It has increased its interest rates thirteen times since March 2010, in order to control the double digit inflation, which has remained high despite the tightening measures.

The Indian rupee has weakened to the level of 50.28/50.29 against the US dollar due to demand for dollars from oil refiners and importers.

The fall in the rupee was halted by the weak performance by the US dollar against the major global currencies. Refiners are the biggest buyers of dollars in the domestic currency market and usually increase demand towards the end of the month.

The yields of Indian federal bonds remained almost unchanged as investors wait of the review by India's central bank, the reserve Bank of India (RBI) to determine actions in the market.

The 10-year benchmark bond yield was recorded at the level of 8.21 percent, down 1 basis point this morning at the time of reporting. A volume of worth 30.30 billion rupees were traded on the RBI's electronic trading platform, which is below the average of about 40 billion rupees traded in the first two hours.

India’s headline inflation fell to 7.47 per cent, it’s lowest in two years, in the month of December 2011, backed by the cheaper prices of food items in the country.

India’s inflation, which is based on Whole Sale Price Index (WPI), was recorded at the level of 9.11 per cent recorded in November. The inflation was recorded at the level of 9.45 percent in December of 2010.

According to the latest official data, India’s headline inflation has fallen to the level of 7.47 per cent in December 2011.

Country’s inflation, which is based on Whole Sale Price Index (WPI), was recorded at the level of 9.11 per cent recorded in November. The all comes as a relief to the central bank, the Reserve Bank of India (RBI) and the central government which have taken the stance of higher interest rates in order to control the inflation.

The Indian rupee has risen to the level of 52.25/26 against the US dollar on Tuesday due to new momentum in by foreign funds.

The foreign funds acquired government debt before limits on the amount of bonds expire in the middle of the month. According to foreign exchange traders, the rise of the rupee was further boosted by a more than 1.5 percent rise in Indian stock market.

India's food inflation has fallen drastically below zero to the level of - 3.36 percent for the week till December 24 as prices of onions, potatoes and vegetables fell in the market, according to the latest data released by the government.

India's food inflation, which is calculated on the bases of the Wholesale Price Index (WIP), was recorded 0.42 percent in the previous week. The food inflation eased due to the improved supplies of essentials and a low base. The prices of essential items like vegetables, onion, potato and wheat declined.

India’s central bank, the Reserve Bank of India (RBI) allowed the relaxation of rice band limits of government securities traded on the first trading day of the year.

The Fixed-Income Markets and Derivatives Association (FIMMDA) also changed the price band in order to prevent cancellation of more than Rs 5,000 crore worth of deals made on Monday.

The yields on India's 10-year bonds fell to its lowest level in two weeks due to perception that the country's central bank might increase cut interest rates for reversing the economic slowdown in the Indian economy.

India’s central bank, the Reserve Bank of India (RBI) has said that the government will further borrow Rs 40,000 crore, increasing the gross borrowings for the financial year.

The borrowing from the government may reduce the resources for the private sector, which has already reduced investments due to the global economic uncertainties.

Analysts say that government borrowings will boost the yield on Indian bonds. The benchmark 10-year government bond yield is expected to rise 5 basis points in opening trades on Tuesday following the announcement of the unscheduled auction.

India's central bank, the Reserve Bank of India (RBI) has announced its decision to do away with the limit of Rs 50,000 per customer per day imposed on mobile transactions.

The limit on mobile transactions was imposed in 2009 by the regulator. Under the new rules, the banks will be allowed to fix their own limit on mobile transactions for customers in the country. The RBI had issued guidelines on mobile banking transactions in India in 2008 and had placed certain monetary restrictions on fund transactions.

The Indian government has planned to borrow $9.5 billion or about 500 billion rupees from public sector banks in the country, a move that will help reduce the need to increase sales of new bonds and also allow market to maintain its growth.

India’s inflation has fallen to the level of 9.11 percent in November from a year earlier, which is its lowest level in a year.

The commerce ministry said in a statement in New Delhi today that the inflation fell to 9.11 percent from 9.73 percent in October this year. The fall in inflation has prompted many to believe that the central bank would half its increase in interest rates and might even consider decreasing its key rates to boost growth in the Indian economy.

The reserve Bank of India (RBI) has said that it believes that there is adequate level of liquidity in the banking system in India.

The comments from RBI deputy governor KC Chakrabarty came amid concerns that the increased interest rates in the country have died the banking sector of much needed liquidity. When asked if the RBI is considering cutting the cash reserve ratio (CRR) to ease liquidity crunch, he said that the central bank could use any of its tools at any time.

K C Chakrabarty , deputy governor, RBI said: "There is sufficient liquidity in the system. As for cash reserve ratio, the text books say that it is one of the tools that can be used... you should wait for December 16."

India's central bank, The Reserve Bank of India has introduced trading in credit- default swaps in India to attract investors to the country's corporate bond market, a move that would increase inflows into the country and help control the fall in the rupee.

The central bank has also created rules limiting the scope of the market. The RBI now allows domestic lenders and units of foreign banks to purchase credit- default swaps contracts to "hedge" assets and trading positions, according to a notification from the central bank.

Indian central bank, the Reserve Bank of India’s (RBI) Governor, D Subbarao has said that the inflation in the country should fall to five percent or below that level in order to bring stabilization in the economy and facilitate economic growth.

D Subbarao said, "A high-inflation scenario makes both savers and investors uncertain." He said that the monetary tightening policy by the RBI is aimed at restraining demand and anchoring inflation expectations.

India's central bank, the Researve Bank of India has relaxed its regulations to allow companies to borrow abroad and it also increased interest rates for Indians living aboard in order to help contain the fall in the Indian rupee.