On Thursday (April 23, 2020) Reserve Bank of India permitted all scheduled commercial banks to issue electronic cards to natural persons having Overdraft Accounts. The cards will be issued to accounts in the nature of personal loan without any specific end-use restrictions. Hitherto, banks have been permitted to issue debit cards to customers having Saving…
TLTRO is acronym to Targeted Long Term Repo Operation (TLTRO). The scheme was introduced by Reserve bank of India as a tool to enhance the liquidity to sectors and entities experiencing liquidity constraints and/or hindrances to market access in the wake of the COVID-19 crisis. For a second time on April 17, 2020, RBI has…
RBI today (April 21, 2020) announced that “to ensure that farmers do not have to pay penal interest and at the same time continue getting the benefits of interest subvention scheme, Government has decided to continue the availability of 2% IS and 3% PRI to farmers for the extended period of repayment up to 31.05.2020…
On Friday (April 17), the Reserve Bank of India announced freezing of classification of non-performing assets for three months starting March 1, in view of the widespread impact of the Covid-19 pandemic and the subsequent nationwide lockdown. “In respect of all accounts for which lending institutions decide to grant moratorium and which were standard as…
As part of Basel III Framework on Liquidity Standards, banks are required to maintain High Quality Liquid Assets (HQLAs) to meet 30 days net outgo under stressed conditions. Banks in India are also required to hold liquid assets of 18 percent of their NDTL from April 11, 2020 to maintain Statutory Liquidity Ratio (SLR). Although…
In terms of the existing Prudential Framework, lenders are required to implement a resolution plan in respect of entities in default within 180 days from the end of Review Period of 30 days. As announced in the RBI Governor’s statement on Friday (17.04.2020), on a review aimed at alleviating the lingering impact of Covid19 on…
Today (17.04.2020) RBI Governor Shaktikanta Das in a media statement announced new measures to maintain adequate liquidity in system to facilitate bank credit flow and ease financial stress. The measures include conducting of targeted LTRO of ₹50,000 crores, cut reserve repo rate by 25 basis points and eased NPA rules for banks. Further, banks are…
As announced today (17.04.2020) and set out in Governor’s Statement, the Reserve Bank of India declared reduction in the fixed rate reverse repo under the Liquidity Adjustment Facility (LAF) by 25 basis points from 4.00 per cent to 3.75 per cent with immediate effect. The policy repo rate under the LAF remains unchanged at 4.40…
Reserve Bank of India publishes dates of 6 tranches of Sovereign Gold Bonds from April 2020 to September 2020 as per the calendar specified below. S. No. Tranche Date of Subscription Date of Issuance 1. 2020-21 Series I April 20-24, 2020 April 28, 2020 2. 2020-21 Series II May 11-15, 2020 May 19, 2020 3.…
The Home Ministry, Government of India invoked the National Disaster Management Act, 2005 (NDMA) and the Epidemic Diseases Act, 1897 (EDA) on March 24 and clamped a national lockdown for 21 days from March 25. In view of the above order of the Government, all commercial and private establishments, industrial establishments, all transport services, educational…