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…
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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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RBI frames policies for undertaking compromise settlements and technical write offs
RBI permitted Regulated Entities (Res) like banks, NBFCs, and other financial institutions to put in place Board-approved policies for undertaking compromise settlements with the borrowers as well as for technical write-offs. Compromise settlement for this purpose shall refer to any negotiated arrangement with the borrower to fully settle the claims of the RE against the…
RBI keeps policy repo rate unchanged at 6.5% SDF pegged at 6.25
The six-member Monetary Policy Committee (MPC) headed by RBI Governor on Thursday (June 8, 2023) decided to keep the policy repo rate unchanged at 6.50% and the Standing Deposit Facility (SDF) rate has been pegged at 6.25 per cent. The central bank kept bank rates at 6.75 per cent. He added that the MPC unanimously…
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