Latest news: Outcomes of the meeting between UFBU and IBA
The meeting of the UFBU (United Forum of Bank Unions) and Indian Banks’ Association (IBA) was held on June 21, 2023, in Mumbai. The important discussions and outcomes taken place in the meeting are explained below. Medical Insurance Scheme: The representatives of Unions have submitted their suggestions in detail like clubbing the policies of in-service…
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Govt. proposes Motor Third Party Insurance Premium and Liability Rules for the Financial Year 2023-24
The Ministry of Road Transport and Highways (MoRTH), on Tuesday, proposed new base premium rates for third-party motor insurance for different categories of vehicles, including two-wheelers, passenger cars, and commercial vehicles, for 2023-24 fiscal. As per a draft notification issued by the Ministry new base premium rates for third-party motor insurance for different categories of…
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Does RBI circular dilute the penal measures on borrowers classified as wilful defaulter or fraud?
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…
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What is Technical write-off, is it a normal banking practice?
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…
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The issue of Sovereign Gold Bond Scheme 2023-24 – Series I opens today
The Sovereign Gold Bond Scheme 2023-24 – Series I will be open for subscription during June 19–23, 2023. The Subscription of the Gold Bonds under this Scheme shall be open between June 19, 2023(Monday) and June 23, 2023 (Friday). The Central Government may, with prior notice, close the Scheme at any time before the period…
RBI provides guidelines on Default Loss Guarantee (DLG) in Digital Lending
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…
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