Govt asks banks to credit back the compound interest on loans before 5 November
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…
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SC gives November 2 deadline to Centre for an action plan to implement waiver of compound interest
Directing the government to implement the decision to waive “interest on interest” without delay, yesterday the Supreme Court directed the Centre to come back “with an appropriate action plan” on November 2. The above direction came from Apex court when solicitor general Tushar Mehta, representing the Centre, said the waiver would come into effect by…
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RBI clarifies various queries on COVID 19 related resolution framework scheme
RBI today released FAQs on the resolution framework for Covid-19 related stress, clarifying to borrowers as well as lenders that a loan account that was due for more than 30 days as of March 1, 2020, but subsequently got regularised, will not be ineligible for resolution under the COVID-19 resolution framework. The above clarification was…
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Basel III Regulatory capital for Retail Portfolio: Revised Limit for Risk Weight
In the Statement on Developmental and Regulatory Policies dated October 9, 2020, broadcasted by RBI on the limit for regulatory retail portfolio, it was decided to revise the risk weight for individual exposures to reduce the cost of credit to this segment. updated on November 17, 2023: RBI on Thursday (November 17, 2023)increases risk weights…
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New Co-lending model and rationalisation of Risk Weights for Housing loans
The Statement on Developmental and Regulatory Policies of RBI on its 4th quarterly review has taken two key decisions. One, the the rationalization of risk weights for banks and secondly, the co-origination of loans for NBFCs and HFCs has been allowed. Rationalisation of risk weight: In terms of the extant regulations on capital charge for…
Government modifies interest subvention scheme for MSMES, extends scheme till March 2021
The Ministry of MSME (MoMSME) has implemented the “Interest Subvention Scheme for Incremental credit to MSMEs” vide circular no. FIDD.CO.MSME.BC.No.14/06.02.031/2018-19 dated February 21, 2019. According to the RBI circular, the term loan or working capital extended by Scheduled Commercial Banks to MSMEs are eligible under the scheme. Both manufacturing and service enterprises are eligible for…
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