(This article elucidates comprehensively about S4A (‘Scheme for Sustainable Structuring of Stressed Assets’) to tackle the problem loans of large projects. The article also covers S4A- post resolution, with regard to management issues, Asset Classification, and Provisioning) The newly announced ‘Scheme for Sustainable Structuring of Stressed Assets’ (S4A) by RBI is outlined to tackle the…
The interest rates for small savings schemes for the quarter July 2016 to September 2016 kept unchanged, as per announcement of the Government (finance ministry). Accordingly, the interest rates for the investments in the small savings schemes remain the same as in the previous quarter. The details of the interest rate applicable on various small saving…
The Government of India introduced major changes in FDI policy on Monday, Jun 20, 2016, bringing most sectors and activities under the automatic approval route. The changes introduced now simplifies the regulations governing foreign investments, and increase sectoral caps with a small negative list. These amendments are the second sweeping changes in FDI policy after…
(The importance of FDI is explained in this article in questions and answers format. The questions are like What way FDI is useful to domestic economy?, Why overseas entities invest in other countries?, Why India attracts FDI?, Why shop-keepers, businessmen and some political parties in India oppose FDI?, Is there any restriction for FDI?, What…
In a leading move to the consolidation of struggling public sector banks, Union Cabinet today (15th Jun 2016) has approved take over of State Bank of Bikaner and Jaipur, State Bank of Hyderabad , State Bank of Mysore and State Bank of Travancore by State Bank of India. The Government sources said that the above move is…
(This article elucidates self-help groups, their activities, bank loan facilities, advantages of lending to SHGs, Aajeevika- National Rural Livelihoods Mission (NRLM) for women SHGs in rural areas.) Self Help Groups (SHGs) are important because they help the poor access financial services, generate employment, and address social issues, especially in rural areas where many people don’t…
(This post narrates the background of introducing the ‘bankruptcy law’ and in what way the new law is likely flags the problem loans and protects the interest of lenders.) The ‘Insolvency and Bankruptcy Code, 2016’ bill will be shortly enacted as an ‘ACT’ which will be dealing with resolutions of insolvency and bankruptcy. The fundamental…
RBI in its Second Bi-Monthly Statement with regard to ‘Monetary and Liquidity Measures’ made on 06.06.2016 decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent; keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);…
(This article elucidates the role of micro ATMs in rural India and the details of how these ATMs work. Advantage and disadvantage of Micro ATMs is explained.) The Micro ATM is the developed version of point of sales (POS) terminals with the advanced features like the biometric scanner (finger print scanner) attached to it. Unlike…
The Stand-Up India Scheme is launched by Government of India to generate the profitable employment to hitherto underserved segment of our society. The scheme provides bank loans between 10 lakh and 100 lakh to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting…