RBI’s proposal for regulation of the Microfinance sector- Explained, pointwise

Introduction Recently, the Reserve Bank of India has released a Consultative Document on Regulation of Microfinance sector. The document aimed to address the concerns related to the over-indebtedness of microfinance borrowers and empowering them. The document proposes that there should be no prepayment penalty and collateral for all microfinance loans. The introduction of regulation is… Continue reading RBI’s proposal for regulation of the Microfinance sector- Explained, pointwise

Significance of SC Ruling on Personal Guarantors for Corporate Loans

Synopsis – The Apex Court has dismissed all challenges to the liability of personal guarantors for corporate loans under the insolvency code. Introduction The Supreme Court upheld a government notification of 2019 issued under the Indian Insolvency and Bankruptcy Code (IBC). This allows banks to initiate insolvency proceedings against personal guarantors who are usually promoters… Continue reading Significance of SC Ruling on Personal Guarantors for Corporate Loans

SC Ruling on Personal Guarantor’s Liability for Corporate Debt

What is the News? The Supreme Court has upheld the government’s move to allow lenders to initiate insolvency proceedings against personal guarantors. Who is a personal guarantor? To showcase their intent to repay the bank loan on time, the promoters of some big business houses submit a personal guarantee to the lenders. It secures them… Continue reading SC Ruling on Personal Guarantor’s Liability for Corporate Debt

RBI to transfer Surplus Profit to Central Government

What is the News?  The RBI (Reserve Bank of India) Central Board has approved the transfer of Rs. 99,122 crore as surplus to the central government. RBI’s Transfer of Surplus to Government:  The Reserve Bank of India(RBI) transfers its surplus profits to the Government every year. It is according to the provisions of Section 47… Continue reading RBI to transfer Surplus Profit to Central Government

RBI’s Economic Measures to Tackle 2nd Wave of Covid-19

What is the News? The Reserve Bank of India(RBI) has announced measures to help India to tackle the unprecedented Covid-19 crisis during the second wave. Measures announced by the RBI: On-Tap Liquidity Facility: RBI has opened a Rs 50,000-crore on-tap liquidity window with a tenor of up to three years. Banks can borrow from this… Continue reading RBI’s Economic Measures to Tackle 2nd Wave of Covid-19

RBI Joins “Network for Greening the Financial System”

What is the News? Reserve Bank of India(RBI) has joined the Network for Greening the Financial System (NGFS) as a Member. About Network for Greening the Financial System(NGFS): Firstly, NGFS was launched at the Paris One Planet Summit in December 2017. Secondly, it is a group of Central banks and financial supervisors. The NGFS aims… Continue reading RBI Joins “Network for Greening the Financial System”

New Umbrella Entity for Payment System – Explained, Pointwise

Introduction The RBI in August last year released a framework for setting up New Umbrella Entity or entities. These Entities will carry out various payment services, similar to the ones being provided by the NPCI right now. Recently the Reserve Bank of India said that it is not in favour of having direct and supervisory… Continue reading New Umbrella Entity for Payment System – Explained, Pointwise

Introducing National Digital Currency in India – Explained, Pointwise

Introduction There is uncertainty over the legal status of digital currencies in India. An unofficial estimate mentions that Indian investors holding around $1.5 billion (Rs 10,000 crore) in digital currencies. The inter-ministerial committee (IMC) suggested a ban on private digital currencies, but it favors RBI-backed National Digital Currency or central bank digital currency (CBDC). The… Continue reading Introducing National Digital Currency in India – Explained, Pointwise

“Asset Reconstruction Companies” – Sudarshan Sen Committee Set-up

What is the News? The Reserve Bank of India(RBI) has set up the Sudarshan Sen committee to review the working of Asset Reconstruction Companies (ARCs) Comprehensively. It will recommend suitable measures for enabling them to meet the growing requirements. Headed by: The committee will be headed by Sudarshan Sen, the former executive director, Reserve Bank… Continue reading “Asset Reconstruction Companies” – Sudarshan Sen Committee Set-up

India on US’s “Currency Watch list”

What is the News?  The US treasury places India along with 10 other countries on its currency watch list. What is Currency Manipulator: Current Manipulators are countries engaging in “unfair currency practices” by deliberately devaluing their currency against the dollar. The practice would mean that the country in question is artificially lowering the value of… Continue reading India on US’s “Currency Watch list”