The Reserve Bank of India clarified that official figures for deposits of old currency notes after demonetization would be announced soon, after various media reports published estimates. The government will finalize a second round of capital infusion for public sector banks in the coming days. Prime Minister Modi announced new schemes providing benefits like loan interest waivers for farmers, home loans under Rs. 12 lakhs, increased credit limits for MSMEs, and higher deposit interest rates for senior citizens. The RBI imposed restrictions on withdrawing more than Rs. 2 lakhs from bank accounts without quoting PAN or Form 60, in response to misuse of Jan Dhan and dormant accounts. SBI launched a new home loan scheme offering a fixed interest
RBI GUIDELINES: ONE TIME SETTLEMENT OF NPAS DATED 16-MARCH-2018GK Dutta
As per instructions of Reserve Bank of India (RBI), banks are required to have a loan recover policy, which may cover, inter
alia, negotiated settlements of NPAs. As per inputs received from Public Sector Banks (PSBs), all PSBs have One Time
Settlement (OTS) schemes. These OTS schemes are in pursuance of Board-approved policies of banks, and are typically
oriented towards sectors such as agriculture, Micro Small and Medium Enterprises (MSMEs), weaker sections and
education loans, and typically have an upper limit on the amount of NPA.
RBI GUIDELINES: GUIDELINES FOR COMPROMISE SETTLEMENT OF DUES OF BANKS AND FIN...GK Dutta
As you are aware, the Indian Banks’ Association (IBA) has been issuing guidelines to member institutions for taking up of cases for settlement through Lok Adalats. The position
was reviewed and it was observed that banks have not taken adequate advantage of the Lok Adalats for compromise settlement of their NPAs. There are certain advantages in using the forum of Lok Adalats by banks and financial institutions in compromise settlement of their NPAs. There are no court fees involved when fresh disputes are referred to it. It can take cognizance of any existing suit in the court as well as look into and adjudicate upon fresh disputes. If no settlement is arrived at, the parties can continue with court proceedings. Its decrees have legal status and are binding. It has, therefore, been decided that with a view to making increasing use of the forum of Lok
Adalats to settle banking disputes involving smaller amounts, banks and financial institutions should follow the following guidelines for implementation.
NON PERFORMING ASSETS – NEED FOR PRAGMATIC & PRACTICAL REGULATORY FRAMEWORK Neha Sharma
The Reserve Bank of India, Indian Banks Association, almost all Public Sector Banks and the Indian businesses are deeply concerned about significant rise in nonperforming assets during last one year. The Indian economy has been passing through unprecedented turbulent times. Many important sectors of the economy have been adversely affected.
RBI GUIDELINES: ONE TIME SETTLEMENT OF NPAS DATED 16-MARCH-2018GK Dutta
As per instructions of Reserve Bank of India (RBI), banks are required to have a loan recover policy, which may cover, inter
alia, negotiated settlements of NPAs. As per inputs received from Public Sector Banks (PSBs), all PSBs have One Time
Settlement (OTS) schemes. These OTS schemes are in pursuance of Board-approved policies of banks, and are typically
oriented towards sectors such as agriculture, Micro Small and Medium Enterprises (MSMEs), weaker sections and
education loans, and typically have an upper limit on the amount of NPA.
RBI GUIDELINES: GUIDELINES FOR COMPROMISE SETTLEMENT OF DUES OF BANKS AND FIN...GK Dutta
As you are aware, the Indian Banks’ Association (IBA) has been issuing guidelines to member institutions for taking up of cases for settlement through Lok Adalats. The position
was reviewed and it was observed that banks have not taken adequate advantage of the Lok Adalats for compromise settlement of their NPAs. There are certain advantages in using the forum of Lok Adalats by banks and financial institutions in compromise settlement of their NPAs. There are no court fees involved when fresh disputes are referred to it. It can take cognizance of any existing suit in the court as well as look into and adjudicate upon fresh disputes. If no settlement is arrived at, the parties can continue with court proceedings. Its decrees have legal status and are binding. It has, therefore, been decided that with a view to making increasing use of the forum of Lok
Adalats to settle banking disputes involving smaller amounts, banks and financial institutions should follow the following guidelines for implementation.
NON PERFORMING ASSETS – NEED FOR PRAGMATIC & PRACTICAL REGULATORY FRAMEWORK Neha Sharma
The Reserve Bank of India, Indian Banks Association, almost all Public Sector Banks and the Indian businesses are deeply concerned about significant rise in nonperforming assets during last one year. The Indian economy has been passing through unprecedented turbulent times. Many important sectors of the economy have been adversely affected.
The scheme is the biggest fiscal component of the Rs 20-trillion Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May
A Snapshot On The Overall Performance of The Financial Inclusion Initiatives ...VARUN KESAVAN
Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. Financial refers to all types of financial services, including savings, payments and credit from all types of formal financial institutions. An estimated 2 billion working-age adults globally have no access to the types of formal financial services delivered by regulated financial institutions.
The Prime Minister of India on May 12,2020 launching Aatma Nirbhar Bharat Abhiyaan under which he announcing a special economic package of Rs 20 lakh crore which is equivalent to 10% of India’s GDP. The policy aims to make India self-reliant, empowering the poor, laborers, and migrants who have been majorly affected by COVID-19.
INDUSTRY OVERVIEW
Evolution of Banking Sector in India
Structure of Banking in India
Parameters/ Indicator – banking Sector
Growth of the Industry with Examples
Prominent Companies in the Banking Sector
New entrants in the Banking Sector
Exit of Banks
Major Decisions take by the Government for Banking Sector
The scheme is the biggest fiscal component of the Rs 20-trillion Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May
A Snapshot On The Overall Performance of The Financial Inclusion Initiatives ...VARUN KESAVAN
Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. Financial refers to all types of financial services, including savings, payments and credit from all types of formal financial institutions. An estimated 2 billion working-age adults globally have no access to the types of formal financial services delivered by regulated financial institutions.
The Prime Minister of India on May 12,2020 launching Aatma Nirbhar Bharat Abhiyaan under which he announcing a special economic package of Rs 20 lakh crore which is equivalent to 10% of India’s GDP. The policy aims to make India self-reliant, empowering the poor, laborers, and migrants who have been majorly affected by COVID-19.
INDUSTRY OVERVIEW
Evolution of Banking Sector in India
Structure of Banking in India
Parameters/ Indicator – banking Sector
Growth of the Industry with Examples
Prominent Companies in the Banking Sector
New entrants in the Banking Sector
Exit of Banks
Major Decisions take by the Government for Banking Sector
INCOME DECLARATION SCHEME A time to come cleanNeha Sharma
The IDS scheme announced by the government is open till 30th September, 2016. It is an important opportunity and the government has committed to not to seek any details or source of money earned and assets created once disclosed in terms of the scheme.
CII suggests a 6 Point Agenda to the Government to further recapitalize the Public Sector Banks (PSBs). A prudent combination of any or all these recommendations will go a long way in easing the PSBs of the NPA overhang by infusing capital and creating the necessary momentum for credit growth in the economy.
1. WEEKLY FINANCIAL SNIPPETS- 07/01/2017
1. RBI CLARIFIES REGARDING OLD NOTE DEPOSITS: The Reserve Bank of India has issued
clarification after various news agencies, citing sources, had come out with estimates of old
notes deposited in the banking system. Neither the RBI nor the government has come out
with a final official figure in this matter. The Reserve Bank of India in its last official release
said that till December 10th
, Rs 12.44 lakh crore worth of old notes were returned to the
banking system. RBI has already initiated the process and the final figure will be announced
soon.
2. GOVERNMENT TO FINALISE SECOND TRANCHE OF CAPITAL INFUSION IN STATE-RUN
BANKS: Finance Ministry is likely to finalise the second tranche of capital infusion in public
sector banks in the next few days and the decision will be crystallised before the budget. The
government has already announced a fund infusion of 22,915 crores, out of the 25,000
crores earmarked. Of this, 75% has already been released. The remaining amount will be
linked to performance with particular reference to greater efficiency, growth of both
deposits and credit in addition to the reduction in cost of operations.
3. PM MODI ANNOUNCES SOPS FOR MSMEs, RURAL INDIA AND HOUSING SECTOR: Prime
Minister Shri Narendra Modi has announced new schemes for rural and urban housing,
farmers, senior citizen and MSME sector. The Prime Minister has announced a 60 day waiver
of interest on farm loans.Home loans up to Rs 2.00 lakhs, Rs 9.00 lakhs and Rs 12 Lakhs will
now be eligible for interest relief of 3%, 4% and 3% respectively. The government has also
waived interest on existing farm loans for the latest kharif and rabi crops. Under MSME the
CGTSME coverage has been increased to Rs 2.00 crore from the existing 1.00 crore. Besides
this, the cash credit limit for small businesses has been raised to 25% from 20%. The Senior
citizens will now be eligible for 8% interest on their deposits up to 7.5 lakh for 10 years.
4. RBI IMPOSES RESTRICTIONS ON WITHDRAWAL FROM CERTAN ACCOUNTS: Tightening the
noose around the people who misused banking channels to park their un-accounted money,
the Reserve Bank of India has now imposed restrictions on withdrawal of more than 2.00
lakhs from bank accounts. Withdrawal/transfer will not be permitted without quoting PAN
or submission of Form 60. These restrictions have come in effect after the misuse of Jan-
Dhan and dormant accounts.As per RBI notification, withdrawal and transfer of funds (more
than Rs 2.00 lakh) will not be permitted in account without quoting PAN or submission of
Form 60.
5. SBI’S NEW HOME LOAN SCHEME—“HAMARA GHAR”: In an effort to push home loans, SBI
has floated a new scheme offering fixed rate for first two years at 8.50% for women and
8.55% for men. In this new schematic “Hamara Ghar“ housing loan, once the fixed tenure of
two year ends, the interest rate will be linked to the prevailing one year Marginal Cost of
Lending rate ( MCLR) with a normal spread over MCLR, which is 50 basis points.
2. 6. TWO LARGE PSU BANKS MAY MERGE: The Centre may merge two large state-run banks in
the coming financial year once a clean-up of bad assets is completed. Consolidation of
India’s public sector Banks(PSBs) would be the final step of the government in rebuilding a
financial system capable of underwriting credit growth and job creating investment in Asia’s
third largest economy.
