RBI plans to formalise linking of new loans to repo rate

The Reserve Bank of India(RBI) is considering asking banks to link loans to an external benchmark such as the repo rate to improve transmission of policy rates and foster economic growth. Repo stands for ‘Repurchasing Option’.It refers to the rate at which commercial banks borrow money from the RBI. Currently,bank loans are linked to marginal… Continue reading RBI plans to formalise linking of new loans to repo rate

NBFCs with big realty loans must rebalance books: RBI

The Reserve Bank of India(RBI) has asked non-banking finance companies(NBFCs) to bring down their lending to the real estate sector. In the finance sector,the National Housing Bank has also been keeping a watch on lending to real estate sector by finance companies.Banks too have scaled down their lending to this segment. Despite facing a credit… Continue reading NBFCs with big realty loans must rebalance books: RBI

RBI Governor, state-run bank CEOs discuss slow rate transmission

The Reserve Bank of India Governor has discussed the issues of banking sector with the officials of Public sector banks(PSBs) and Indian Banks Association(IBA). During the meeting,the issue of less than desired level of transmission of monetary policy rates was discussed with the banks.Even though the RBI has cut the Repo rate by 75 basis… Continue reading RBI Governor, state-run bank CEOs discuss slow rate transmission

Banks’ bad loans down at 9.34 lakh crore at FY19-end

Finance minister has informed the Parliament that Gross non performing assets(NPA) of scheduled commercial banks has declined by Rs 1.02 lakh crore to Rs 9.34 lakh crore in 2018-19. Non-performing assets(NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. The decline in number… Continue reading Banks’ bad loans down at 9.34 lakh crore at FY19-end

Banks reported 44,016 frauds in last 11 years

According to the data provided by the Finance Ministry,banks have reported 44,016 frauds in the last 11 years since 2008-09.The frauds being considered in the list are those involving ₹1 lakh or more. The ministry said that the government had issued a ‘framework for the timely detection,reporting,investigation relating to large value banks frauds’. The framework… Continue reading Banks reported 44,016 frauds in last 11 years

RBI to DRI: We can’t ask banks to share customer information

The Reserve Bank of India(RBI) has said that it has no power to ask banks to share information on customers with third parties including investigative agencies of the government even if it is in the interests of the bank. The RBI’s response came on a request by the Directorate of Revenue Intelligence(DRI) which sought RBI’s… Continue reading RBI to DRI: We can’t ask banks to share customer information

Banks may extend foreign currency loans for exporters

Commerce and Industry Minister has said that the ministry is in talks with banks to see ways to extend foreign currency loans to exporters. The minister has also said Export Credit Guarantee Corporation of India (ECGC) can play a role of credit enhancement agency for exporters. He has asked ECGC to come up with a… Continue reading Banks may extend foreign currency loans for exporters

Modi likely to meet bank chiefs to discuss roadmap for PSBs

Prime Minister is likely to meet chief executives of Indian banks to chalk out a strategy for the banking sector for the next five years. The meeting assumes significance as the country’s GDP growth slowed to 5.8% in the January-March 2019 quarter dragging down the full-year growth to a 5-year low of 6.8%. Further, the… Continue reading Modi likely to meet bank chiefs to discuss roadmap for PSBs

RBI to create regulatory cadre

The Reserve Bank of India(RBI) Central board has decided to create a specialised supervisory and regulatory cadre within the RBI to strengthen the supervision and regulation of commercial banks, urban cooperative banks and non-banking financial companies. The RBI’s decision to create a specialised regulatory cadre is important in light of increasing complexity of the regulated… Continue reading RBI to create regulatory cadre

NCLAT allows banks to declare defaulting IL&FS, group companies as NPAs

The National Company Law Appellate Tribunal (NCLAT) has allowed the banks to declare the accounts of IL&FS and its group companies as non-performing assets(NPA) if they have defaulted on payments.NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. However,the appellate tribunal has said… Continue reading NCLAT allows banks to declare defaulting IL&FS, group companies as NPAs