Primary cooperative banks can now lend upto 10 lakhs for house repair or alteration
Reserve Bank of India (RBI) on Tuesday said primary cooperative banks can now extend loans of up to Rs 10 lakh to individuals for repair or alterations of their dwelling units in metropolitan centres. “The ceiling on such loans is now revised to Rs 10 lakh in metropolitan centres (those centres with a population of…
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RBI clarifies on New Definition of Micro, Small and Medium Enterprises (MSME)
The government of India vide Gazette Notification S.O. 2119 (E) dated June 26, 2020, has notified new criteria for classifying the enterprises as Micro, Small, and Medium enterprises effective from July 1, 2020. Under the new criteria for the classification of MSMEs, enterprises are reclassified under composite criteria (investment and turnover) and there is no…
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Eligibility criteria for Kisan Credit Card Scheme for farmers engaged in fisheries/ aquaculture, amended
RBI on Wednesday (18.05.2022) notified all the banks that the RBI circular dated February 04, 2019, related to Kisan Credit Card (KCC) for ‘Working Capital for Animal Husbandry and Fisheries’ stand modified. Modification of the scheme was necessitated by the Central Bank in India (RBI), as they received information that the licensing/authorisation related requirements pertaining…
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RBI permits banks to extend on-lending facility on an ongoing basis for delivering credit to the specified priority sectors
“On-lending” means loans sanctioned by banks to eligible intermediaries for onward lending for the creation of priority sector assets. As per the latest RBI, circular banks are permitted to extend the above facility on an ongoing basis. RBI on Friday (May 13, 2022) announced that “To ensure the continuation of the synergies that have been…
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Mandatory LEI codes required for non-individual borrowers to enjoy credit facility of 5 crore and above
RBI on Thursday (21.04.2022) extended the guidelines on Legal Entity Identifier (LEI) to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs). According to RBI’s circular ‘Non-individual borrowers enjoying aggregate exposure of Rs 5 crore and above from banks (excluding RRBs) and financial institutions (FIs), who fail to obtain LEI codes from an authorized…
Microfinance Loans: RBI issues Master Direction 2022 for Regulatory Framework
A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to Rs300000 (Rupees Three Lakhs). For this purpose, the household shall mean an individual family unit, i.e., husband, wife, and their unmarried children. The collateral-free loan under microfinance shall be irrespective of end-use and mode of application/…
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