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…
Read article 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…
Read article RBI sensitises public for safe use of digital transactions
Reserve Bank in its press release today (June 22, 2020) said that the bank has set up many digital awareness campaigns for the users of digital transactions. The initiation in this regard has been continuously and actively undertaken in the print and Audio-Visual media, including through Central Bank’s flagship programme RBI Kehta Hai, it said.…
RBI proposes a few changes for regulatory framework applicable to HFCs
Reserve Bank of India today placed a draft of the changes proposed to be prescribed for HFCs. These are as follows: Classifying HFCs as systemically important (asset size of ₹500 crore & above) and non-systemically important (asset size less than ₹500 crore); Reserve Bank’s directions on Liquidity Risk framework &, LCR, securitisation, etc., for NBFCs,…
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