The Reserve Bank of India has raised the retail exposure limit for banks to Rs 10 crore, up from the previous threshold, and cut risk weights on such loans, giving banks meaningful capital relief. The changes follow a review of draft norms issued in October 2025, with the RBI incorporating feedback before finalising the rules. Risk weights determine how much capital a bank must set aside against a loan. Lower weights mean banks need less capital per rupee lent, freeing up funds to extend more credit. The retail segment covers individual borrowers and small businesses, so the higher exposure cap lets banks lend larger sums to this group while still qualifying for the lighter capital treatment. Banks with sizeable retail books stand to benefit most, as their capital ratios improve without raising fresh equity. Watch for how lenders deploy the freed capital, whether into retail loan growth, margin improvement, or buffer building, as that will signal the real-world effect of this policy shift.
India's Expenditure Finance Committee has cleared a Rs 1.25 lakh crore outlay for India Semiconductor Mission 2.0, up 64 percent from ISM 1.0's Rs 76,000 crore. The proposal now goes to the Cabinet, as two chip plants begin commercial output and a third, CG Semi, is set to open July 4, 2026.
The Supreme Court blocked Trump from firing Federal Reserve board member Lisa Cook, preserving the Fed's independence from presidential removal power. A separate ruling the same day gave Trump broader authority to dismiss leaders of other independent federal agencies.
The US Supreme Court has blocked President Trump's attempt to fire Federal Reserve governor Lisa Cook, who faced unproven mortgage fraud allegations. The ruling preserves Fed independence for now and keeps a politically charged removal case alive in the courts.
The US Supreme Court, splitting along ideological lines, has allowed the Trump administration to end Temporary Protected Status for Haitian and Syrian immigrants.
