On March 27, 2020 (Friday), the Monetary Policy Committee (MPC) of RBI announced certain regulatory measures to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses. With regard to rescheduling of Term Loans, Working Capital payments, and NPA classification certain common…
In the Statement of Development and Regulatory Policies released on March 27, 2020, RBI released several regulatory measures to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to safeguard the continuity of viable businesses. The package includes Rescheduling of Term Loans and Working Capital payments, recalculate the…
Today (March 27, 2020), the Monetary Policy Committee (MPC) announced Seventh Bi-monthly Monetary Policy Statement, 2019-20 and slashed all the key policy rates. According to the announcement the MPC decided to advance its meeting scheduled for 31st March, 1st and 3rd April 2020 and met on 24th, 26th, and 27th March. As per the announcement…
In light of the spreading disease – COVID-19 – and government orders, banks across the country are working at reduced capacities, providing only essential services. Only essential basic services allowed: Effective from Monday, March 23, 2020, only basic essential services like cash deposit and withdrawal, cheque clearances, remittances,, and government transactions are undertaken by the…
Today (Monday, March 23, 2020), RBI advised commercial banks that their loans to registered NBFCs (other than MFIs) for on-lending to be eligible for classification as priority sector is extended for FY 2020-21. The circular further said that existing loans disbursed under the on-lending model will continue to be classified under the Priority Sector till…
‘Capital Instruments’ means monetary instruments in capital markets such as equity shares, debentures, preference shares and share warrants issued by a company. Indian companies are permitted to raise money by way of capital instruments for their operational purposes. The instruments issued in capital markets are listed below: Equity shares: Equity shares are the shares joint-stock…
In the settlement system under the Asian Clearing Union (ACU) Mechanism, all instruments of payments are required to be denominated in Asian Monetary Unit. The Asian Monetary Unit is the common unit of account of ACU and is equivalent in value to one U.S.Dollar. Hitherto, the Asian Monetary Unit was denominated only as ACU dollar.[…
RBI tells the public to use non-cash digital payment options (like NEFT, IMPS, UPI and BBPS) which are available round the clock to facilitate fund transfers, purchase of goods/services, payment of bills, etc. The above announcement of the Central Bank came in the light of the fallout of the Corona virus pandemic in India. The…
Update: The Reserve Bank of India (RBI) on Friday (May 22, 2020) raised the group exposure limit of banks to 30% from 25% for a temporary period till 30 June 2021. The limit will be restored to 25% after the deadline unless the RBI decides otherwise. As a prudential measure, aimed at better risk management…
RBI on Thursday (12.03.2020) announced that it has been decided to undertake 6-month US Dollar sell/buy swaps to provide liquidity to the foreign exchange market in multiple tranches. The first tranch would be offered on March 16, 2020, for swap amount USD 2 Billion “On emerging Financial markets worldwide are facing intense selling pressures on…