Union MSME Minister Narayan Rane on Thursday launched the revamped Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. The modifications included a reduction in guarantee fees for loans up to ₹1 crore by 50% to the level of 0.37% per annum only. Another major change announced was raising of ceiling for the…
RBI on Wednesday (April 26) decided to amend the directions under para 2 (ii) of the A.P. (DIR Series) Circular dated February 16, 2021. As per the revised amendment, Resident Individuals may also open a Foreign Currency Account (FCA) in IFSCs, for making the above permissible investments under Liberalised Remittance Scheme (LRS). Hence, the extant…
RBI today announced through a circular that the GCC Scheme shall henceforth be called “General Credit Card (GCC) Facility. The General Credit Cards (GCC cards) can be issued by banks to Individuals who have been sanctioned working capital facilities for non-farm entrepreneurial activities that are eligible for classification under the priority sector guidelines. The GCC…
The Non-Resident Indians (NRIs), Persons of Indian Origin (PIO), or Overseas Citizens of India (OCI) may want to sell their property if they do not have a plan to visit India or maintain the property in India. Any property residential or commercial can be sold to a resident Indian whether purchased, inherited, or gifted. However,…
The account held by the resident Indian will be re-designated as an NRO account, once he/she becomes a Non-Resident Indian (NRI). A new NRO account can be opened in the bank from abroad if they need one. NRO account is maintained in Indian Currency. The NRO account holder can use these funds available in his…
FCNR (B) deposits and NRE deposits can be opened by Non-Resident Indians or persons of Indian Origin (PIO) or Overseas Citizens of India (OCI). The difference between FCNR (B) deposits and NRE deposits is that the FCNR-B (Bank) deposits are maintained only in Foreign Currencies term deposits and maturity of these deposits is payable in terms…
There are several major centrally sponsored schemes under which credit is provided by banks and subsidy is received through Government Agencies. Credit flow under these schemes is monitored by RBI. Under each of these, there is a significant reservation/relaxation for the members of the SC/ST communities. SCLCSS for under the National SC/ST hub scheme: The…
Reserve Bank of India on Wednesday issued various guidelines to the Regulated Entities (Financial institutions like banks and NBFCs) to ensure reasonableness and transparency in the disclosure of penal interest. Under the extant guidelines, lending institutions have the operational autonomy to formulate Board approved policies for the levy of penal rates of interest. It has…
RBI on April 3, 2023, issued a Master circular, consolidating the instructions/guidelines issued to banks on the housing finance issued up to March 31, 2023. According to the above instruction, individuals are eligible for housing finance for the construction of building/ready-built houses for the following purposes. In light of the observations of the Delhi High…
Some banks have introduced innovative Housing Loan Schemes in association with developers/builders. The normal process of these schemes, is upfront disbursal of sanctioned individual housing loans to the builders without linking the disbursals to various stages of construction of the housing project, Interest/EMI on the housing loan availed of by the individual borrower being serviced…