Page 278 - Latest Updates on Reserve Bank of India
Loans up to Rs 50 cr for start-ups get priority sector tag in new RBI norms
Lending limit for health infrastructure doubled to Rs 10 crore, says central bank.
 "Loans up to Rs 50 cr for start-ups get priority sector tag in new RBI norms")
Banks turn to digital tools to rework debt payment structures during Covid
According to India Ratings estimates, retail loans - home, personal, auto, and credit cards - amounting to Rs 30,000 crore may come up for recast
 "Banks turn to digital tools to rework debt payment structures during Covid")
Moratorium on loan repayment shouldn't be at the cost of economic recovery
Hopefully, the court will recognise that the legal system should not undermine the financial system
 "Moratorium on loan repayment shouldn't be at the cost of economic recovery")
Firms raising 3-month money at much lower than RBI's overnight rates
Even as FCI is raising Rs 75,000 cr for three months at 4.69%, companies are regularly tapping bond market for the same tenure at as low as 3.2%, way lower than RBI's repo rate of 4%
 "Firms raising 3-month money at much lower than RBI's overnight rates")
Moratorium case: SC directive to benefit small, mid-sized accounts
Bankers said special mention accounts (SMA)- overdue period between 31 to 60 days (SMA1) and overdue period between 61 to 90 days (SMA2) would have become NPAs in August and September 2020
 "Moratorium case: SC directive to benefit small, mid-sized accounts")
Aditya Birla Idea Payments Bank ceased to be banking company: RBI
In November last year, the RBI had said that Aditya Birla Idea Payments Bank was headed for liquidation after the company's application for voluntary winding up
 "Aditya Birla Idea Payments Bank ceased to be banking company: RBI")
SC protects loans not declared NPAs till Aug 31 from such action for now
The Supreme Court Bench said if a loan account had not been declared bad as of the end of August, it should not be classified as NPA till the moratorium case was disposed of
 "SC protects loans not declared NPAs till Aug 31 from such action for now")
Out of the woods? Analysts turn bullish on NBFCs on improved liquidity
Recent steps by the government and the RBI to keep systemic liquidity and rates benign along with direct liquidity to NBFCs facing constraints, in the wake of Covid-19, have helped, analysts say
 "Out of the woods? Analysts turn bullish on NBFCs on improved liquidity")
Govt must heed Urjit Patel's warning on NPAs, come up with policy response
The former RBI governor has served a warning on the intractable problem of bad loans
Asking banks to waive interest will adversely impact financial system: Govt
Solicitor General Tushar Mehta told the three-judge Bench that waiving interest or granting a blanket moratorium on repayment of loans will be a "knee jerk reaction"
FM to meet heads of banks, NBFCs to review loan recast scheme on Thursday
The Reserve Bank of India (RBI) last month permitted one-time restructuring of both corporate and retail loans without getting classified as a non-performing asset (NPA)
 "FM to meet heads of banks, NBFCs to review loan recast scheme on Thursday")
Supreme Court to decide on moratorium interest waiver issue today
The apex court said it would hear the matter again and decide on Wednesday a bunch of petitions demanding waiver of interest, or waiver of interest on interest on the suspended monthly instalments
 "Supreme Court to decide on moratorium interest waiver issue today")
First economic contraction in 4 decades: India GDP shrinks 23.9% in Q1FY21
The two growth engines, consumer spending and investments contract massively as govt-led spending lifts GDP from falling further. On supply side, only agriculture shows growth, industry contracts 40%
 "First economic contraction in 4 decades: India GDP shrinks 23.9% in Q1FY21")
Monetary Policy Committee is just a cosmetic addition, not suited to India
Tackling inflation with monetary policy is like trying to move boulders with eyebrow tweezers
 "Monetary Policy Committee is just a cosmetic addition, not suited to India")
RBI steps in with measures to boost demand for bonds, cool down yields
Says it is comfortable with a rising rupee, which helps bring down import-led inflation, adds that it remains "committed to ensuring comfortable liquidity and financing conditions in the economy"
 "RBI steps in with measures to boost demand for bonds, cool down yields")
GST compensation row: FM's 'act of God' can be a nightmare for RBI
The government has invoked "act of God" for not paying its due to the states directly
Managing markets
Bond and currency markets would increase policy difficulties
 "Managing markets")
Credit growth: Barking up the wrong tree?
It is unfair to expect risk capital from banks to prop up the economy. They deal with public money
 "Credit growth: Barking up the wrong tree?")
Second blow for BoB as RBI rejects plan to send Anil Ambani firms to NCLT
An earlier Delhi HC order had stayed BoB and the entire consortium of lenders' move to classify these accounts as fraud, restraining them from taking any other coercive action till the next hearing
West Bengal rejects Centre's borrowing propositions to meet GST shortfall
Says will engage with other states to take collective steps
 "West Bengal rejects Centre's borrowing propositions to meet GST shortfall")