CLCSS subsidy scheme for micro and small enterprises
The Ministry of Micro, Small and Medium Enterprises is operating a scheme namely “Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small Enterprises. If you are a MSE (Micro & Small Enterprise) manufacturer and if you want to modernize your equipment/plant/machineries, you may get capital subsidy of up to Rs.15 lakh…
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Managing key elements of Fraud Risk in Banks
This article examines the key elements of RBI’s Master Directions on Fraud Risk Management, focusing on RFAs, EWS, staff accountability, and governance requirements. Red Flagged Accounts (RFA) A Red Flagged Account is identified when one or more Early Warning Signals indicate the possibility of fraudulent activity in a loan or credit facility. RBI mandates banks…
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Loan Documentation – concise, ready-to-use Bank Staff Checklist
(To be verified before disbursement and safe custody) — A. Sanction & Acceptance ☐ Sanction terms communicated to borrower in writing ☐ Written acceptance obtained from borrower ☐ Written acceptance obtained from guarantor (where applicable) ☐ Sanction letter and acceptance kept on record — B. Stamp Duty & Stamping ☐ Document stamped before or at…
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Perfecting Loan Documentation: A Practical Compliance Checklist for Bankers
This article is to equip bank staff with a practical, compliance-oriented understanding of loan documentation, ensuring creation of legally valid, enforceable, and error-free loan documents. 1. What is Loan Documentation? Loan documentation refers to the systematic process of obtaining, executing, and preserving documents strictly in accordance with sanction terms, applicable laws, and regulatory requirements. Proper…
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What is CGTMSE Credit guarantee scheme?
In view of enhancement in CGTMSE coverage up to Rs.2 crore from the earlier limit of Rs.1 crore, the Indian Banks Association (IBA) has formulated a common MSME loan application for adaption of all member bank of IBA. Scheduled Commercial Banks, Regional Rural Banks, and select Financial Institutions who are member institutions of CGTMSE extend…
Garnishee and Income Tax Attachment Orders: A Banker’s Guide
Banks frequently receive garnishee orders from civil courts and attachment orders from the Income Tax Department, both of which require immediate and careful action. These orders mandate banks to freeze customer accounts and remit funds to creditors or tax authorities, subject to statutory conditions. Given the legal sensitivity involved, banks must act promptly, accurately, and…
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