The Government of India, Ministry of Housing and Urban Affairs (MoHUA), had restructured the erstwhile Swarna Jayanti Shahari Rozgar Yojana (SJSRY) and launched the National Urban Livelihoods Mission (NULM) in 2013. NULM has been implemented in all district headquarters (irrespective of population) and all the cities with population of 1 lakh or more. The Self…
The “Prime Minister’s New 15-Point Programme for the Welfare of Minorities” is the revised guidelines of the earlier programme on Credit facilities to the minority community. The objective of the new programme is to ensure that the benefits of various government schemes for the underprivileged reach the disadvantaged sections of the minority communities which are…
The Supreme Court on Tuesday has pronounced its judgment on a batch of pleas related to the six-month loan moratorium period, stating that it cannot allow waiver of complete interest and extension of the moratorium. The judgment was delivered by a Bench of Justices Ashok Bhushan, R Subhash Reddy, and MR Shah in a batch…
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…
On the subject of a bad bank, RBI Governor Shaktikanta Das on Saturday said RBI can consider the idea of a bad bank if there is any such proposal. He said the idea has been under discussion for a very long time. “We in the RBI have provided regulatory guidelines for asset reconstruction companies and…
Today, RBI for a second time in six months cautioned the general public and small business enterprises against falling prey to unauthorized digital lending platforms and mobile apps on promises of quick and hassle-free loans. The RBI’s words of caution come from reports over coercive recovery tactics including incessant calls, and naming and shaming defaulters…
Small Industries Development Bank of India (SIDBI) in a statement on Monday said it has launched a web portal to help micro, small and medium enterprises (MSMEs) take benefit of the Reserve Bank of India’s one-time debt restructuring. We may recollect here that during August 2020, RBI had announced one-time restructuring for personal and corporate…
A lien or positive lien is akin to a bailment. It is the claim or legal right to retain goods or securities that are typically used as collateral to satisfy a debt. There is no legal definition of the term ‘negative lien’ in any of the Indian legislative enactments. But as it is understood in…
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.…
The loan and advances made by a bank shall be utilized for the recognized purpose and the fund is effectively recycled. As a business partner, your bank is also a stakeholder in the business performance of his borrower. This is because the investment made by the borrower through the bank finance shall bring income both…