The Self Help Group-Bank Linkage Programme (SBLP) was started in 1992 at the initiative of NABARD. The basic idea of the SBLP is to link the unorganized sector of our population to the formal banking sector. Typically this segment of population is from the lower income that used to meet its financial needs through limited…
RBI introduced Lead Bank scheme in 1969, on the basis of recommendations of D.R.Gadgil study group. The study group suggested adaption of ‘area approach’ for adequate banking facilities in rural area. The scheme envisages every district across the country shall be assigned to a commercial bank which has major presence in that district to perform…
Service area approach (SAA) is an improved version of area approach of Lead Bank Scheme. Under SAA plan each commercial bank / RRB branch in rural and semi-urban area is designated to serve 15 to 25 villages for planned and orderly development of rural and semi-urban areas. The designated branch of a bank has to…
The Government of India has amended the rules under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011(Referred as principal rules). The amendment to principal rules came into force from the date same were published in the gazette of India Part II section3 sub-section. (i) (January 22, 2016) .…
The weaker sections of our society are the socially backward/ minority communities at national level or the people belonging to economically low income group. Normally, such people may not easily get timely and adequate credit without the priority credit dispensation of RBI. As per RBI’s priority sector approved plan, Banks have to achieve weaker section…
The MSMED Act 2006 classifies Micro, Small & Medium Enterprises (MSMEs) in two categories viz. Manufacturing Enterprises and Service Enterprises. The manufacturing enterprises are those who are engaged in manufacture or production of goods pertaining to any industry listed in first schedule to the industries (Development and Regulation) Act 1951 or an enterprise employing plant…
Although, the commercial banks and other financial institutions have been making steady strides to increase their share of credits to MSE sector, but they have certain difficulties in sanctioning limits to SME borrowers. In an environment of NPA numbers in banking sector alarmingly swelling, banks themselves are under the stress and facing challenge to raise…
Following the ordinance empowering RBI to lay down the process of initiating steps under the Insolvency and Bankruptcy Code (IBC), an Internal Advisory Committee (IAC) is set up by RBI to oversee the specific steps that are initiated by bankers for resolution of a bad debt. In its first meeting on June 12, 2017, the…
Stamp duty payable on an instrument/document when joint executants are in different state The section 17 of Stamp act 1899 provides that all instruments chargeable to the duty and executed by any person in India shall be stamped before or at the time of execution of the instrument. Section 19A provides that added stamp duty…
Kisan Credit card (KCC) is a type of credit card specially designed for farmers as a form of credit for their cultivation and other needs. Banks may choose to issue EMV (Europay, MasterCard and VISA) chip, and RUPAY compliant chip cards with magnetic stripe and pin with ISO IIN. The farmers can use their KCC…