New Capital Adequacy Framework (NCAF) on capital regulation – eligibility of CRISIL Ratings Limited

Today (January 27, 2021), RBI told the banks to use the ratings of the CRISIL Ratings Limited for the purpose of risk weighting their claims for New Capital Adequacy Framework (NCAF) on Basel III capital regulation purposes. The above decision taken by RBI is owing to rating business of CRISIL Limited has since been transferred…

Salient features of Co-lending Model (CLM) scheme announced by RBI for priority sector lending

The Reserve Bank on Thursday came out with a Co-Lending Model (CLM) scheme under which banks can provide loans along with NBFCs (including HFCs) to priority sector borrowers based on a prior agreement. The arrangement entailed joint contribution of credit at the facility level by both the lenders as also sharing of risks and rewards.…

RBI notifies revised guidelines for Opening of Current Accounts by Banks

Today (02.11.2020), RBI announced that banks may ensure compliance with the instructions contained in their Circular dated August 6, is extended up to December 15, 2020. In its circular of August 6, RBI said in respect of the opening of current accounts banks shall comply with all the instructions contained therein the circular. For existing…

These eleven things you need to know for acceptance of power of attorney for creation of mortgage

Every other day, we have been coming across cases where fraudsters are using Power of Attorney for creating mortgages. Bankers and other financial lenders are most vulnerable to mortgage related frauds. Therefore, Staff working in the loan and advance departments of banks and financial departments shall be vigilant at the time of documentation and may…