Loans and advances – Page 6

Compensation of Rs.100 per day shall be paid by Credit Institutions and CICs for delayed updation/rectification of credit information

Loans and advancesBy Surendra Naik October 27, 2023

The Reserve Bank of India Thursday (October 26, 2023) released the framework for compensation to customers for delayed updation or rectification of credit information by credit institutions (CIs) and credit information companies (CICs). The compensation framework will come into effect six months from the date of this circular, the Reserve Bank said and directed CICs…

Lenders must release property Documents within 30days of loan repayment: RBI

Loans and advancesBy Surendra Naik September 14, 2023

RBI on Wednesday directed all the regulated entities such as Commercial Banks, cooperative banks, small banks, RRBs, Local Area Banks, NBFCs, Asset Reconstruction Companies, etc. to release all the original movable/immovable property documents and remove charges registered with any registry within a period of 30 days after full repayment/ settlement of the loan account. The…

Penalty should be a charge, not penal interest that will be compounded: RBI

Loans and advancesBy Surendra Naik August 21, 2023

The Reserve Bank of India (RBI) took a significant step on Friday to ensure fairness and transparency in the disclosure of penal interest by saying that the penalty should be a ‘charge’ instead of an ‘interest’ that will be compounded. Through various guidelines, the banking regulator has issued various guidelines to the Banks and other…

Soon, you will get loans in minutes; RBI announces Public Tech Platform for Frictionless Credit

Loans and advancesBy Surendra Naik August 17, 2023

Reserve Bank of India (RBI) has announced the development of a Public Tech Platform for Frictionless Credit. The Platform is being developed by the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of RBI. The Platform would be rolled out as a pilot project on August 17, 2023, in a calibrated fashion, both in terms…

RBI Guidelines on Valuation and Revaluation of Properties

Loans and advancesBy Surendra Naik August 2, 2023

Every Bank has a Board approved policy in place for valuation of properties including collaterals accepted for their exposures. The valuation of properties should be done by professionally qualified independent Valuers i.e., the Valuer should not have a direct or indirect interest on assessed property or in the account. In the case of Valuation Reports…

eSARAS mobile app to add ecommerce initiatives for products made by SHG

Priority Sector AdvancesBy Surendra Naik July 4, 2023

eSARAS an e-commerce mobile app will be used as a more effective platform for marketing of the products made by women of self-help groups. It is an initiative conceptualized by the DAY-NRLM, Ministry of Rural Development (MoRD), towards the marketing of the best, authentic handicrafts and hand-looms. Launching the App, Secretary Shri Shailesh Kumar Singh…

Does RBI circular dilute the penal measures on borrowers classified as wilful defaulter or fraud?

NPA managementBy Surendra Naik June 20, 2023

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…

What is Technical write-off, is it a normal banking practice?

NPA managementBy Surendra Naik June 20, 2023

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…

RBI provides guidelines on Default Loss Guarantee (DLG) in Digital Lending

Loans and advancesBy Surendra Naik June 13, 2023

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 frames policies for undertaking compromise settlements and technical write offs

NPA managementBy Surendra Naik June 12, 2023

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…

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