RBI may extend relief on repayment of loans
PrintListen to this Article
The banking regulator has been conducting an impact assessment of sectors and borrower segments by collating data on repayments and cash flows of borrowers since the lockdown was announced in March to get a better understanding of the challenges faced by borrowers, the people aware of the talks between RBI and the banks said on condition of anonymity.
“While it’s a foregone conclusion that the moratorium will be extended for certain segments beyond August, the fine print is still a work in progress,” said the first person cited above. “For starters, RBI is of the view that some sectors will continue to need support from lenders as the current economic pain is expected to linger for them.”
RBI governor Shaktikanta Das is trying to provide relief to struggling businesses as the coronavirus pandemic forces people to stay indoors, driving down demand for the airline and hospitality industry to a trickle.
The prolonged lockdown to contain the spread of the virus has also forced many firms to shutter operations, leaving millions of people jobless and pushing the economy toward its worst contraction since Independence.
“RBI could be looking at extending the moratorium for certain sectors like automobile, hospitality, etc.,” said the second person. The loan moratorium is unlikely to be extended to individual borrowers.
On July 10 State Bank of India chairman Rajnish Kumar had brushed aside the need for a blanket extension of the deferment benefit. He had said certain sectors need some relief and that RBI will take a call based on data from banks.
Around 29% of loans given by banks and mortgage lenders and 59% of loans by non-bank lenders were under moratorium between April and June, according to disclosures by banks and non-banking financial companies. #casansaar (Source - The Hindustan Times)
Category : RBI | Comments : 0 | Hits : 535
Listing of an Indian company on international stock exchanges got a push with the Reserve Bank of India (RBI) coming out with regulations under Foreign Exchange Management (FEMA). Experts believe new regulations will help companies utilise foreign exchange more effectively. Regulations have been made public through two notifications. First set of regulations deals with mode of payment and reporting of non-debt instruments. “The proceeds of purchase / subscription of equity shares of an ...
The Lok Sabha elections 2024 are in full swing with electioneering adding much colour to the entire process. However, to ensure that there is no wrongdoing, the Reserve Bank of India (RBI) has sent a missive to Payment System Operators (PSOs) asking them to keep a watch on all suspicious high-value transactions that they may come across in their systems. The general purpose of the letter is to deny the use of electronic fund transfer mechanism to anyone who is intending to influence the election...
he Reserve Bank on Tuesday came out with draft guidelines to further strengthen regulations on payment aggregators, a move aimed at boosting the payment ecosystem. The draft also covers the physical point-of-sale activities of payment aggregators (PAs). The RBI said that given the growth in digital transactions and the significant role that PAs play in this space, the current directions on PAs are proposed to be updated and cover, inter alia, KYC and due diligence of merchants, operations ...
The RBI on Monday eased rules to allow resident entities to hedge their exposures to the price risk of gold using the OTC derivatives in the International Financial Services Centre (IFSC) in addition to the derivatives on the exchanges in the IFSC. Resident entities such as banks were permitted to hedge their exposure to the price risk of gold on the exchanges in the IFSC that are recognised by the International Financial Services Centres Authority (IFSCA), and the new directive provides them...
The Reserve Bank of India (RBI) on March 21 said it has imposed monetary penalty on five co-operative banks for rule violations. These banks are Pragati Mahila Nagrik Sahakari Bank, Janata Co-operative Bank, Jila Sahakari Kendriya Bank, Karad Urban Co-operative Bank, and The Kalupur Commercial Co-operative Bank. The central bank imposed Rs 26.60 lakh on The Kalupur Commercial Co-operative Bank, Rs 13.30 lakh on Karad Urban Co-operative Bank, Rs 5 lakh on Janata Co-operative Bank, Rs 1 lakh...
Comments