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…
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…
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…
Every other day, we have been coming across cases where fraudsters are using Power of Attorney for creating mortgages or sale of properties. General Public, 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…
On Friday (October 23, 2020), the finance ministry announced the details of the implementation of the waiver of ‘interest on interest’ on loans of up to Rs 2 crore for the six-month moratorium that was rolled out to mitigate the hardship of borrowers hit by the coronavirus pandemic. The Government also announced that those who…
RBI revises the guidelines for Priority Sector Lending vide its circular dated Sept 4, 2020. In the revised PSL Guidelines, the Reserve Bank of India doubled credit limits for certain categories, has included some fresh categories eligible for finance under the priority sector. These include loans to farmers for installation of solar power plants; loans…