Recently,three state-run banks had reported divergence in bad loan recognition while announcing the results. Divergence takes place when the Reserve Bank of India (RBI) finds that a lender has under-reported (or not reported at all) bad loans in a particular year and hence asks the lender to make disclosures if under-reporting is more than 10%… Continue reading RBI now uses divergence to compel banks to improve their loan-loss ratios
Tag: RBI
E-payments panel submits report to RBI
The Reserve Bank of India(RBI) appointed a committee, headed by Nandan Nilekani has submitted its suggestions on promoting digital payments to RBI Governor. RBI had set up the five-member panel on deepening digital payments with a view to encouraging digitisation of payments and enhance financial inclusion through digitisation. The panel was tasked with reviewing the… Continue reading E-payments panel submits report to RBI
RBI tells bigger NBFCs to appoint chief risk officer
The Reserve Bank of India has directed non-banking finance companies (NBFC) with assets size of over Rs 5000 crore to appoint a chief risk officer(CRO) to improve standards of their risk management. This directive comes at a time when NBFCs are facing a funding crisis as some of the firms are burdened with over-leveraging and… Continue reading RBI tells bigger NBFCs to appoint chief risk officer
RBI to bank on data analytics for timely fraud detection
The Reserve Bank of India(RBI) has decided to encourage the use of data analytics to timely detect frauds and take recovery actions such as blocking irregular transactions before payment authorisation. This move is a part of RBI’s vision 2019-21 for payments and settlements in electronic space. The RBI has also proposed to make India a… Continue reading RBI to bank on data analytics for timely fraud detection
RBI envisions fourfold growth in digital transactions by 2021
The Reserve Bank of India (RBI) has released its document on ‘Payment and Settlement Systems in India: Vision 2019–2021’. The document with its core theme of ‘Empowering Exceptional E-payment Experience’ envisages to achieve a highly digital and cash-lite society through the goal posts of competition, cost effectiveness, convenience and confidence(4Cs). This document expects the number… Continue reading RBI envisions fourfold growth in digital transactions by 2021
Income support, UDAY driving fiscal slippages: RBI
The Reserve Bank has warned of the rising risks to fiscal consolidation of the states as their finances are burdened with (a)farm loan waivers (b)income support schemes and (c)UDAY bonds for their power distribution companies. These remarks were made during a meeting between the members of the 15th Finance Commission and the RBI members. Further,other… Continue reading Income support, UDAY driving fiscal slippages: RBI
RBI raises cap on home loans by SFBs, RRBs
The Reserve Bank of India has decided to increase the housing loan limits for Regional Rural Banks(RRBs) and Small Finance Banks(SFBs). Further,all such loans will be classified by these banks as priority sector loans. The eligibility cap has been increased to ₹35 lakh in metropolitan areas and ₹25 lakh in other centres provided the overall… Continue reading RBI raises cap on home loans by SFBs, RRBs
Payment service will be launched only after complying with RBI norms, WhatsApp tells Supreme Court
WhatsApp has assured the Supreme Court that only a trial run of its payments service is underway at present and that it would comply with Reserve Bank of India(RBI) norms before launching the full version. This assurance came when the Supreme Court was hearing a petition seeking directions for the messaging platform to comply with… Continue reading Payment service will be launched only after complying with RBI norms, WhatsApp tells Supreme Court
RBI imposes fines on PPIs for violating norms
The Reserve Bank of India has imposed penalties on five prepaid payment instrument(PPI) issuers under Section 30 of the Payment and Settlement Systems Act, 2007 for violation of regulatory guidelines. Prepaid payment instruments (PPIs) come with a pre-loaded value and in some cases a pre-defined purpose of payment.They facilitate the purchase of goods and services… Continue reading RBI imposes fines on PPIs for violating norms
NCLAT allows banks to declare defaulting IL&FS, group companies as NPAs
The National Company Law Appellate Tribunal (NCLAT) has allowed the banks to declare the accounts of IL&FS and its group companies as non-performing assets(NPA) if they have defaulted on payments.NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. However,the appellate tribunal has said… Continue reading NCLAT allows banks to declare defaulting IL&FS, group companies as NPAs
