Now you get ‘Electronic Cards’ for your Overdraft Accounts
On Thursday (April 23, 2020) Reserve Bank of India permitted all scheduled commercial banks to issue electronic cards to natural persons having Overdraft Accounts. The cards will be issued to accounts in the nature of personal loan without any specific end-use restrictions. Hitherto, banks have been permitted to issue debit cards to customers having Saving…
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Repo operations: What is TRTRO?
TLTRO is acronym to Targeted Long Term Repo Operation (TLTRO). The scheme was introduced by Reserve bank of India as a tool to enhance the liquidity to sectors and entities experiencing liquidity constraints and/or hindrances to market access in the wake of the COVID-19 crisis. For a second time on April 17, 2020, RBI has…
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Interest subvention on short term crop loan: RBI extends the time limit
RBI today (April 21, 2020) announced that “to ensure that farmers do not have to pay penal interest and at the same time continue getting the benefits of interest subvention scheme, Government has decided to continue the availability of 2% IS and 3% PRI to farmers for the extended period of repayment up to 31.05.2020…
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Asset Classification and Provisioning under COVID19 Regulatory Package
On Friday (April 17), the Reserve Bank of India announced freezing of classification of non-performing assets for three months starting March 1, in view of the widespread impact of the Covid-19 pandemic and the subsequent nationwide lockdown. “In respect of all accounts for which lending institutions decide to grant moratorium and which were standard as…
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RBI lowers the requirement of Liquidity Coverage Ratio (LCR)
As part of Basel III Framework on Liquidity Standards, banks are required to maintain High Quality Liquid Assets (HQLAs) to meet 30 days net outgo under stressed conditions. Banks in India are also required to hold liquid assets of 18 percent of their NDTL from April 11, 2020 to maintain Statutory Liquidity Ratio (SLR). Although…
COVID19 Regulatory Package: RBI extends Resolution Timelines on stressed assets under the Prudential Framework
In terms of the existing Prudential Framework, lenders are required to implement a resolution plan in respect of entities in default within 180 days from the end of Review Period of 30 days. As announced in the RBI Governor’s statement on Friday (17.04.2020), on a review aimed at alleviating the lingering impact of Covid19 on…
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