What is SHG bank linkage programme?
[This post offers updated guidelines/instructions on SHG-Bank linkage programme at one place based on various circulars issued by Reserve Bank of India on the subject up to June 30, 2020] The Self Help Group-Bank Linkage Programme (SBLP) was started in 1992 at the initiative of NABARD. The basic idea of the SBLP is to link…
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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,…
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…
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