Government hikes interest rate on Small Savings schemes by 30 to 40 basis points

(PPF & NSC to give 8%, Senior citizen to get 8.7%) The Ministry of Finance Government of India has announced the Rates of Interest on various Small Savings Schemes for the Third Quarter of the Current Financial Year 2018-19 starting 1st October, 2018, and ending on 31st December, 2018.  The Small Savings Schemes includes  include…

External Commercial Borrowings (ECB) Policy – Revision

In consultation with Government of India, the Reserve Bank of India liberaised some aspects of ECB policy including policy on Rupee Denominated Bonds (RDB). According to review of the policy, the eligible borrower companies in manufacturing sector can raise Extranal Commercial Borrowings up to USD 50 million or its equivalent with minimum average maturity period…

SC Stays RBI Circular of February 12: Recovery process by banks could be further delayed

The Supreme Court on September 11, 2018 (Tuesday) consolidated all cases by members of the Association of Power Producers (APP), Independent Power Producers Association of India (IPPA), Shipowners Association and Textile Associations filed across the country to be heard on November 14, 2018.  The Court has meanwhile, asked RBI and parties to maintain status quo…

Monetary limit for filing cases in DRT rose up to Rs.20 lakh

The notification  dated  September 6, 2018 of finance ministry, Government of India increased the monetary limit up to Rs.20 lakh for filing loan recovery application in the Debt Recovery Tribunals (DRT) by banks and financial institutions. It is reported that there are 38,376 cases pending in 39 debt recovery tribunals (DRTs) in the country, as…

Amendments to Reserve Bank of India (Note Refund) Rules, 2009

The Central Government has made amendments to the Reserve Bank of India (Note Refund) Rules, 2009. The amended rules called “the Reserve Bank of India (Note Refund) Amendment Rules, 2018” are effective from Gazette notification date September 6, 2018. The amendment to rules would help the public to exchange mutilated notes in Mahatma Gandhi (New)…

Present banking sector crisis should not become an alibi for privatization of public sector banks: Parliamentary Standing Committee

The Parliamentary Standing Committee on Finance in its report dated September 5, 2018 on banking sector, made various suggestions to the RBI to resurrect the bleeding public sector banks, which include relaxation in capital adequacy rules to free up excess capital, easing of the Prompt Corrective Action (PCA) framework, separate treatment of NPAs due to…