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A recent study by the RBI indicates that banks are more responsive to interest rate hikes than to cuts. Specifically, banks relayed 76.4% of repo rate increases, while only 64% of reductions were passed on. Amid periods of tightening, lending rates surged significantly, in contrast to the minimal decreases observed during easing. This research highlights the intricate dynamics of interest rate adjustments, particularly affecting sectors like MSMEs.
As October unfolds, India's vibrant festival season translates into various state-specific bank holidays. On October 26, banking services will pause in Tripura, Chandigarh, Jammu and Kashmir, and Himachal Pradesh. Important dates approaching include Karva Chauth on October 29 and Sardar Vallabhbhai Patel's birth anniversary on October 31. Although digital transactions persist, customers are encouraged to verify local holiday observances to sidestep any unexpected closures at physical branches.
The government has amended the Central Motor Vehicles Rules to facilitate the registration of flex-fuel vehicles capable of running on 85% to 100% ethanol blended petrol. As car manufacturers gear up to introduce their E100 models soon, this initiative promises to lessen emissions and curb reliance on crude oil imports. Notably, existing vehicle owners are not required to make any modifications.