On the basis of CPI data announced by the Labour Bureau for the period of January 2020 to March 2020, the average index number works out to 7486 (base 1960=100) or 761slabs(76.10%) for the above period. It means bank employees and officers are entitled to an increase of 2slabs (0.20%) for the ensuing quarter of…
On Thursday (April 30, 2020) RBI announced that the regulatory benefits under the special liquidity facility for mutual funds (SLF-MF) scheme being extended to all banks irrespective of whether they avail funding from the Reserve Bank or deploy their own resources under the scheme. As per RBI circular April 27, 2020, RBI would conduct repo…
Reserve Bank of India is the banker to Central Government as well as State governments. In terms of Section 20 and section 21 of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government departments and to carry out the exchange, remittance and other banking operations, including…
Today (April 27, 2020) Reserve Bank of India announced ₹50,000 crores of special liquidity facility for mutual funds. This was in view of liquidity constraints faced by the Mutual Funds intensified in the wake of large redemptions and high exposure to low-rated illiquid debt securities. The move follows in a bid to support mutual funds…
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…