Kisan Credit Card (KCC) scheme for farmers,animal-husbandary and fisheries
Kisan Credit Accounts are normally short term crop loans emerged as an innovative credit delivery mechanism to meet the production credit requirements of the farmers in a timely and hassle-free manner. The repayment period may be fixed as per the anticipated harvesting and marketing period for the crops for which a loan has been granted. …
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Bad Loans (NPA) in Banks: Why do we have this state of affairs?
The BSR-1 released by RBI at every quarter shows that small borrowal accounts the credit limit up to ₹ 0.2 million constitute only a share of 7.3 percent in total outstanding credit of the banks. From the above stats, we may infer that it is the large borrowers who have been heavily damaging banking industries…
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Now you get ‘Electronic Cards’ for your Overdraft Accounts
On Thursday (April 23, 2020) Reserve Bank of India permitted all scheduled commercial banks to issue electronic cards to natural persons having Overdraft Accounts. The cards will be issued to accounts in the nature of personal loan without any specific end-use restrictions. Hitherto, banks have been permitted to issue debit cards to customers having Saving…
Read article Interest subvention on short term crop loan: RBI extends the time limit
RBI today (April 21, 2020) announced that “to ensure that farmers do not have to pay penal interest and at the same time continue getting the benefits of interest subvention scheme, Government has decided to continue the availability of 2% IS and 3% PRI to farmers for the extended period of repayment up to 31.05.2020…
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Asset Classification and Provisioning under COVID19 Regulatory Package
On Friday (April 17), the Reserve Bank of India announced freezing of classification of non-performing assets for three months starting March 1, in view of the widespread impact of the Covid-19 pandemic and the subsequent nationwide lockdown. “In respect of all accounts for which lending institutions decide to grant moratorium and which were standard as…
COVID19 Regulatory Package: RBI extends Resolution Timelines on stressed assets under the Prudential Framework
In terms of the existing Prudential Framework, lenders are required to implement a resolution plan in respect of entities in default within 180 days from the end of Review Period of 30 days. As announced in the RBI Governor’s statement on Friday (17.04.2020), on a review aimed at alleviating the lingering impact of Covid19 on…
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