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
Tag: ECO_4
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
Contents1 What is the News?2 Who is a personal guarantor?3 What is the issue?4 What has the Supreme Court said? 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… Continue reading SC Ruling on Personal Guarantor’s Liability for Corporate Debt
RBI to transfer Surplus Profit to Central Government
Contents1 2 What is the News? 3 RBI’s Transfer of Surplus to Government: 4 RBI transfer to Government for 2020-21: 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)… 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. Contents1 Measures announced by the RBI:2 Liquidity Support for Small Finance Banks(SFBs):3 Wider ‘Priority Sector’ Benefits for SFBs:4 Resolution framework 2.0 for individuals, small businesses and MSMEs:5 Credit to MSME… 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
Contents1 Introduction2 What is New Umbrella Entity?3 Functions of New Umbrella Entities4 RBI framework related to the New Umbrella Entities5 Need for the New regulator/NPCI to regulate New Umbrella Entities6 Challenges with vesting the regulatory control of NUE to NPCI or a new regulatory body7 Solutions to regulate New Umbrella Entities:8 Conclusion Introduction The RBI… Continue reading New Umbrella Entity for Payment System – Explained, Pointwise
Introducing National Digital Currency in India – Explained, Pointwise
Contents1 Introduction2 What is the CBDC or National Digital currency?3 National Digital Currency in India4 Challenges with non-state digital currency5 Advantages of a CBDC6 Challenges/issues with CBDC7 What is the way forward? Introduction There is uncertainty over the legal status of digital currencies in India. An unofficial estimate mentions that Indian investors holding around $1.5… Continue reading Introducing National Digital Currency in India – Explained, Pointwise
“Asset Reconstruction Companies” – Sudarshan Sen Committee Set-up
Contents1 What is the News?1.1 About Asset Reconstruction Company (ARC):2 Capital Requirements for an ARC:2.1 What are sources of funds for ARCs?2.2 How are ARCs different from the IBC? 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… 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”
