 "Is the cash reserve ratio (CRR) a deadweight on banks? Of every Rs 100 raised by banks in deposits, Rs 4.50 is locked up and it earns nothing by way of interest. The CRR framework is in the spotlight because one, a good number of folks now opt to par")
A State Bank of India (SBI)-led committee to encourage co-lending between commercial banks and non-banking financial companies (NBFCs) has recommended doing away with the goods and services tax (GST) of 18 per cent.
“The SBI-led co-lending committee has submitted the report to the finance ministry, recommending that no GST should be imposed on co-lending-related activities. The report also recommends that co-lending should be restricted to priority sector lending, not extended to other areas, due to the larger associated risks,” said a person familiar with the matter.
In May 2024, the Department of Financial Services (DFS), a division
