Ex-MP Ravindra seeks relaxation in NPA Classification Norms
AP Chapter of Nafcub writes letter to RBI
Chitturi Ravindra (Ex-MP), Chairman of Andhra Pradesh State Cooperative Urban Banks and Credit Societies Federation has written a letter to the Executive Director of Reserve Bank of India requesting a temporary relaxation in NPA Classification Norms.
The letter has been addressed on behalf of Urban Cooperative Banks of Andhra Pradesh. “We request you to allow temporary reprieve to UCBs, and permit classification of NPAs on the basis of 180 days norm instead of the present 90 days norm, demands the ex-MP.
The letter further reads, “RBI and Government of India have taken several measures to kick start the economy. Most of these measures were in the form of offering financial stimulus to borrowers in the form of restructuring of loans, rescheduling of payments, conversion of interest accrued into another credit facility, granting of moratorium etc. These have been beneficial to
All Bank Branches To Be Covered Under Cheque Truncation System By September, Says RBI
The Reserve Bank of India (RBI) (PUNIT PARANJPE/AFP/Getty Images)
In a letter written to heads of the bank, the Chief General Manager (CGM) of the Reserve Bank of India, RBI, has asked them to implement image-based cheque truncation system (CTS) across all bank branches by September.
This comes in accordance with the Statement on Development and Regulatory policy issued by RBI last month.
Currently, 1,50,000 branches of all banks have implemented the CTS system since its inception in 2010.
Till last September, all 1,219 pre-existing non-CTS clearing houses had successfully migrated to CTS system all over the country.
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Banks, NBFCs or maybe fintechs. Who is in a better position to plug the $240 billion credit gap for MSMEs?
Synopsis
With technology transforming the lending landscape, are traditional lenders losing sheen and who’s best placed to lend to SMEs?
For 65 million Indian MSMEs that contribute over 45% of the nation’s manufacturing output, a lack of timely and adequate access to funding remains their Achilles’ heel. A report by an IFC-Intellecap in 2019 on unmet
credit gap had pegged it at around a massive $240 billion (about Rs 17.40 lakh crore).
Given the vulnerabilities faced by small businesses today, the MSME sector’s liquidity needs have witnessed a spike. As MSMEs scramble to raise
February 18, 2021
Deposit insurance may remain unused×
RELATED
At present, when a bank is placed under Directions, deposit withdrawals are capped and it ranges from ₹1,000 to ₹1 lakh of the total balance held by a depositor.
Depositors of Urban Co-operative Banks (UCBs), under Directions, may not have to sweat it out to get back their savings up to the ₹5 lakh insured amount, going by the amendments being considered to the Deposit Insurance and Credit Guarantee Act (DICGC), 1961.
The Government and the Reserve Bank of India (RBI) are believed to be examining the feasibility of allowing depositors of banks, especially UCBs, under regulatory Directions to withdraw up to the ₹5 lakh insured amount to alleviate their misery.