The latest rise in corporate credit amplified the demand for priority sector lending certificates (PSLC)

The jump in lending to corporate borrowers has driven up demand for priority-sector lending certificates (PSLC), forcing banks to pay a higher premium to meet regulatory lending targets. The total Priority Sector lending of a domestic commercial bank should be 40 per cent (target for foreign banks 32%) of Adjusted Net Bank Credit or Credit…

Banks fail to observe the directions while financing to Government owned entities: RBI

RBI on Tuesday said that Banks fail to observe its directions in letter and spirit while financing Government-owned entities. As per RBI Master Directions, Banks should not grant finance for the construction of buildings meant purely for Government/Semi-Government offices, including Municipal and Panchayat offices. However, banks may grant loans for activities, which will be refinanced…

Most of the digital lending apps are not registered with the RBI: Police will take necessary action on receipt of complaint says RBI governor

While speaking at the Iconic Week celebration as part of the ‘Azadi Ka Amrit Mahotsav’ to mark the 75th anniversary of Independence, organised by the Central Board of Indirect Taxes and Customs (CBIC), today RBI Governor Shaktikanta Das said that most of the digital lending apps are not registered with the central bank and operate…

Eligibility criteria for Kisan Credit Card Scheme for farmers engaged in fisheries/ aquaculture, amended

RBI on Wednesday (18.05.2022) notified all the banks that the RBI circular dated February 04, 2019, related to Kisan Credit Card (KCC) for  ‘Working Capital for Animal Husbandry and Fisheries’  stand modified. Modification of the scheme was necessitated by the Central Bank in India (RBI), as they received information that the licensing/authorisation related requirements pertaining…

RBI permits banks to extend on-lending facility on an ongoing basis for delivering credit to the specified priority sectors

 “On-lending” means loans sanctioned by banks to eligible intermediaries for onward lending for the creation of priority sector assets. As per the latest RBI, circular banks are permitted to extend the above facility on an ongoing basis. RBI on Friday (May 13, 2022) announced that “To ensure the continuation of the synergies that have been…

Mandatory LEI codes required for non-individual borrowers to enjoy credit facility of 5 crore and above

RBI on Thursday (21.04.2022) extended the guidelines on Legal Entity Identifier (LEI) to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs). According to RBI’s circular ‘Non-individual borrowers enjoying aggregate exposure of Rs 5 crore and above from banks (excluding RRBs) and financial institutions (FIs), who fail to obtain LEI codes from an authorized…

Things to know while buying and selling house property, associated costs involved in home loans, EMI calculation tax rules etc.

This post provides you the key legal checklist for buying and selling a house property; method of title deed verification, database available with CERSAI and RERA, EMI calculation, associated costs of home loans, teaser rates, risks involved in transferring of loan to other banks, rules regarding funds transfer abroad after disposal of properties in India;…