Reserve bank of India advised all the scheduled commercial banks that with effect from April 1, 2020, Short Term Crop Loans should be extended only through KCC to be eligible for Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI). According to the notification, the Ministry of Agriculture & Farmers Welfare vide their Office Memorandum,…
External benchmark rate means the reference rate which includes the policy Repo rate of RBI, Government of India’s 3-Months and 6-Months Treasury Bill yields published by Financial Benchmarks India Private Ltd (FBIL), and any other benchmark market interest rate published by FBIL. The interest rate on banks’ lending based on external benchmark shall be reset…
As announced in the Statement on Developmental and Regulatory Policies of February 6, 2020, the Reserve Bank of India has decided to revise its liquidity management through which it controls cash in the banking system to rationalise interest rates in line with the policy actions. Instruments of liquidity management will include “fixed and variable rate…
RBI permits one-time restructuring of MSME advances till December 31, 2020 RBI on Tuesday (11.02.2020) allowed a one-time restructuring of existing loans extended to MSMEs by Banks and NBFCs and permitting them to classify such assets as ‘Standard’ without a downgrade in the asset classification if the following conditions are met. • The aggregate of…
In terms of Statement on Developmental and Regulatory Policies of February 6, 2020, the Reserve Bank of India announced that the special lending window with CRR exemption will be open from February 14 and incremental loans disbursed under this facility will have CRR exemption for the next five years. Accordingly, banks are allowed to deduct…
Reserve Bank on Wednesday (February 5, 2020) said that the statutory auditor’s certificate in respect of interest subvention claim may be submitted by June 30, 2020, and in the meantime settle claims based on internal/concurrent auditor certificate. As per earlier covenants, the interest subvention would be released only on the basis of claim duly certified…
Many surveys on the status of financial literacy in India reveal that about a staggering 76% of Indian adults do not understand basic financial concepts. These surveys confirm the financial literacy rate in India has been consistently poor as compared to the rest of the world. Financial Literacy Week is an initiative by RBI to…
In the sixth bi-monthly monetary policy statement announced on Thursday (dated 06.02.2020), MPC decided to keep the policy REPO rate under the liquidity adjustment facility (LAF) unchanged at 5.15 percent. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth while ensuring that inflation remains within…
Pursuant to an announcement made by the Finance Minister Mrs.Nirmala Sitharaman in the Lokasabha while placing budget for the year 2020-21, the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India, has raised the limit of insurance cover for depositors in insured banks from the present level of…
In the budget 2020-21, a new Section 115 BAC being introduced to income tax act whereby an individual and HUF can opt to pay tax as per new tax rates in case he/she is ready to forgo all exemptions and deductions. Individuals opting to pay tax under the new lower personal income tax regime will…