FAQs on Exchange of Notes and Coins in banks
Q: Which are the banks authorised to exchange notes coins? R: All the bank branches in entire India are mandated to provide facility for exchange of notes and coins to the members of public. Banks are also directed by the banking regulator (RBI) to issue fresh/good quality notes and coins of all denominations whenever customers…
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Credit Guarantee Scheme for subordinate debt/CGSSD explained
The credit facilities extended to MSMEs under ‘Distressed Assets Fund – Subordinate Debt for Stressed MSMEs scheme’ as a special dispensation, are backed by a guarantee from the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). RBI vide its circular dated July 1, 2020 permitted all the scheduled commercial banks to reckon the…
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RBI announces Special liquidity scheme for NBFCs/HFCs
The Government of India on Wednesday July 1, 2020, has approved a scheme to improve the liquidity position of NBFCs/HFCs through a Special Purpose Vehicle (SPV) to avoid any potential systemic risks to the financial sector. The Non-Banking Financial Company (NBFCs), including Microfinance Institutions that are registered with the RBI, under the Reserve Bank of…
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RBI continues reduced Minimum Daily Maintenance of the Cash Reserve Requirement of banks as a temporary measure
Keeping in view of ongoing hardships faced by banks in terms of social distancing of staff and consequent strains on reporting requirements, RBI has decided to extend the relaxation of the minimum daily maintenance of the Cash Reserve Ratio of 80 per cent for a further period of three months, i.e., up to September 25,…
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What is Emergency Credit Line Guarantee Scheme –ECLGS?
Emergency Credit Line Guarantee Scheme (ECLGS) which is also known as Guaranteed Emergency Credit Line (GECL) scheme is a 100% collateral free fund-based working capital term loan extended by the banks, NBFCs and Financial Institutions (FIs) to Business entities /MSMEs including borrowers of MUDRA loans constituted as Proprietorship, Partnership, a registered company, trusts, and Limited…
RBI directs banks, NBFCs and digital lending platforms to adhere Fair Practices Code and Outsourcing Guidelines
While issuing guidelines, on digital lending platforms on Wednesday (June 24, 2020) the Reserve Bank of India directed banks, NBFCs and digital lending platforms to disclose full information upfront on their websites to customers. The direction comes against the backdrop of several complaints relating to exorbitant interest rates and harsh recovery measures, among others, against…
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