In view of Bank unions AIBOC and AIBEA have opposed the Reserve Bank’s move to allow lenders to settle loans of wilful defaulters under compromise settlement, the central bank in a follow-up on Monday issued FAQs (Frequently Asked Questions) related to its June 8 circular. RBI denied that it has introduced a new clause permitting…
Regulated Entities like banks and NBFCs may undertake technical write-offs in loan accounts that are either considered unrecoverable or whose recovery is likely to consume disproportionate resources of the lenders. The board approval will be required for compromise settlements or technical write-offs for accounts categorised as wilful defaulters or fraud. As for technical or prudential…
The Reserve Bank of India came out with guidelines on the Default Loss Guarantee (DLG) in Digital Lending, a move aimed at ensuring the orderly development of the credit delivery system. The Default Loss Guarantee (DLG) is a contractual arrangement, between Regulated Entities like banks, non-banking finance companies, and lending service providers (LSPs, popularly known…
RBI permitted Regulated Entities (Res) like banks, NBFCs, and other financial institutions to put in place Board-approved policies for undertaking compromise settlements with the borrowers as well as for technical write-offs. Compromise settlement for this purpose shall refer to any negotiated arrangement with the borrower to fully settle the claims of the RE against the…
Informal Micro Enterprises (IMEs) were defined as those enterprises which are unable to get registered on the Udyam Registration Portal (URP) due to a lack of mandatory required documents such as Permanent Account Number (PAN) or Goods and Services Tax Identification Number (GSTIN). As per the existing guidelines, all lenders were required to obtain a…
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 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…
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…
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…
(This article envisions what are the title deeds of a property, how to examine them, and how to find out if the construction is legal and authorized, etc.) Identifying a property for purchase is not just about the price of the property, locality, or amenities like a gym, club swimming pool, etc. Along with identifying…