Modified Interest Subvention Scheme (MISS) for 2025–26 continues the concessional short‑term credit support to farmers through Kisan Credit Cards (KCC) for agriculture and allied activities, with no fundamental change in structure vis‑à‑vis earlier years. It aims to ensure assured, affordable and timely working capital to cultivators while incentivising prompt repayment and supporting the viability of…
The RBI Priority Sector Lending (PSL) Master Directions, 2025, updated as on January 19, 2026, consolidate and supersede the earlier 2020 guidelines. These Directions apply to Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Local Area Banks (LABs), and Urban Co-operative Banks (UCBs), excluding Salary Earners’ Banks. The revised framework aims to strengthen…
(This article clarifies on who is eligible ( the age, limit, qualification) including quantum of subsidy, bank loan and money to be bought up by the entrepreneur to start up a business for bank finance under PMEGP scheme.) Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh…
The Ministry of Micro, Small and Medium Enterprises is operating a scheme namely “Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small Enterprises. If you are a MSE (Micro & Small Enterprise) manufacturer and if you want to modernize your equipment/plant/machineries, you may get capital subsidy of up to Rs.15 lakh…
(To be verified before disbursement and safe custody) — A. Sanction & Acceptance ☐ Sanction terms communicated to borrower in writing ☐ Written acceptance obtained from borrower ☐ Written acceptance obtained from guarantor (where applicable) ☐ Sanction letter and acceptance kept on record — B. Stamp Duty & Stamping ☐ Document stamped before or at…
This article is to equip bank staff with a practical, compliance-oriented understanding of loan documentation, ensuring creation of legally valid, enforceable, and error-free loan documents. 1. What is Loan Documentation? Loan documentation refers to the systematic process of obtaining, executing, and preserving documents strictly in accordance with sanction terms, applicable laws, and regulatory requirements. Proper…
In view of enhancement in CGTMSE coverage up to Rs.2 crore from the earlier limit of Rs.1 crore, the Indian Banks Association (IBA) has formulated a common MSME loan application for adaption of all member bank of IBA. Scheduled Commercial Banks, Regional Rural Banks, and select Financial Institutions who are member institutions of CGTMSE extend…
RBI has issued Amendment Directions on December 11, 2025 that overhaul the framework for opening and maintaining cash credit (CC), current accounts (CA) and overdraft (OD) accounts, notably freeing CC facilities from earlier operational restrictions and rationalising current/OD discipline around a ₹10 crore banking-system exposure threshold with a 10% lender-share rule. These amendments will apply…
When a Bank Guarantee (BG) issued on behalf of a customer is invoked by the beneficiary and the bank settles the claim, the bank becomes a creditor to the customer for the amount paid. If the customer fails to reimburse the bank, the bank must follow a series of operational, legal, and recovery steps as…
The Reserve Bank of India (RBI), through circular DBOD.Dir.BC.62/13.07.09/2002-03 dated January 24, 2003, had earlier prohibited banks from extending non-fund based facilities to non-constituent borrowers. This restriction was aimed at preventing frauds, fund diversion, and misuse of one-off transaction-based facilities without proper credit assessment. However, over time, this blanket bar created genuine challenges for borrowers…