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Category Archives: Loans and advances

  • Key difference between Basel II & Basel III framework

    Key difference between Basel II & Basel III framework

    The key difference between the Basel II and Basel III are that in comparison to Basel II framework,  the Basel III framework prescribes more of common equity, creation of capital buffer, introduction of Leverage Ratio, Introduction of Liquidity coverage Ratio(LCR) and Net Stable Funding Ratio (NSFR). Leverage Ratio: The…

  • FAQs on education loan scheme

    FAQs on education loan scheme

    Q: How the education loan granted to a minor student binds him to repay the loan, as he is not the executant of loan documents? What is the procedure to be followed in cases of minor students as borrowers? Reply: If the student is a minor, then the parent/guardian…

  • Highlights of revised Model Educational Loan Scheme

    Highlights of revised Model Educational Loan Scheme

    A revised Model Educational Loan Scheme (2015) for Pursuing Higher Education in India & abroad was formulated by IBA and circulated to member banks for adaption and implementations vide IBA circular no. CIR/RB-ELS/6 dated 17th August 2015. The scheme provides broad guidelines to the banks for operationalizing the educational…

  • What are the multiple guarantees offered by NCGTC?

    What are the multiple guarantees offered by NCGTC?

    National Credit Guarantee Trustee Company Ltd [NCGTC] was set up by the Department of Financial Services, Ministry of Finance, Government of India incorporated under the Companies Act 1956 on March 28, 2014. NCGTC, inter alia, act as a common trustee company to manage and operate various credit guarantee trust…

  • What is interest subsidy scheme for education loan?

    What is interest subsidy scheme for education loan?

    It is a Government of India scheme known as Central Scheme to provide Interest Subsidy (CSIS) for the EWS students to pursue Technical/ Professional education studies in India.  This scheme is independent of any other schemes which may cater to Economically Weaker Sections.  Under the scheme the interest payable…

  • Interest subvention scheme for short-term Crop loans 2018-19

    Interest subvention scheme for short-term Crop loans 2018-19

    RBI vide its communiqué RBI/2017-18/190 FIDD.CO.FSD.BC.No.21/05.04.001/2017-18 dated June 7, 2018 advised all the Public & Private Sector Scheduled Commercial Banks as an interim measure, the Interest Subvention Scheme will be implemented in 2018-19 till further instructions are received from the Government, on the terms and conditions approved for the…

  • Salient features of IBC (amendment) ordinance 2018

    Salient features of IBC (amendment) ordinance 2018

    President Mr.Ram Nath Kovind on Wednesday (June 6, 2018) gave assent to promulgate the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018. The Government in its statement said that the changes envisioned in the amendment are expected to further strengthen the Insolvency Resolution Framework in the country and produce better…

  • What are the latest guidelines on Priority sector lending and targets?

    What are the latest guidelines on Priority sector lending and targets?

    Updated up to :June 6, 2018 Categories under priority sector under revised guidelines:  As per RBI circular RPCD.CO.Plan.BC10/04.09.01/2014-15 dated July 1, 2014, Medium Enterprises, Social Infrastructure and Renewable Energy will form part of priority sector, in addition to the earlier existing categories like Agriculture,Micro Small enterprises,Export credit,education,housing loan, and…

  • What is Provisioning Coverage Ratio?

    What is Provisioning Coverage Ratio?

    In banking lexicon, provisioning means to set aside or provide some funds to cover up losses if things go wrong and some of their loans turn into bad assets. Provisioning Coverage Ratio (PCR) refers to the prescribed percentage of funds to be set aside by the banks for covering…

  • Prudential norms for income recognition and provisioning of NPAs

    Prudential norms for income recognition and provisioning of NPAs

    (This article  explains the definition of non-performing assets (NPAs), and basis on which accounts are classified into Special Mention Accounts (SMA) /sub-standard Assets, Doubtful assets, and Loss Assets. Income recognition and provisioning requirement are specified in the article.) Internationally income from Non-Performing Assets (NPAs) is not recognized on accrual basis…

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