Since the economy is seeing a slowdown, a larger push is needed to drive growth, RBI governor Shaktikanta Das had said, according to the minutes of August Monetary Policy Committee (MPC) meeting.
FDs offer a fixed interest rate for the investment tenure along with guaranteed maturity return, which makes the capital free of investment risks.
Although there are a plethora of investment options for senior citizens, not all could be considered as safe investments.
Such benchmarking could protect the interest of retail savers and help the system achieve quicker transmission. Banks would be comfortable if bulk deposits are floating rates and would be more willing to pass on as well, by having repo-linked loans. Since no bank can do it alone, it needs to be an RBI
The central bank had released guidelines on co-origination of loans by banks and NBFCs to the priority sector last year with a view to leveraging on the reach of NBFCs to help banks meet their priority sector lending targets.
Timely resolution is very important. I d request you to ensure that the resolutions are done in time, not just for the regulatory requirement but also because it will result in better valuation going forward, NS Vishwanathan said at the Ficci-IBA banking conference.
A Finance Ministry official said the government expects the capital infusion to aid lending growth, while some banks will need funds to meet minimum regulatory requirements.
In India, single rupee deposits of Rs 2 crore and above are considered as bulk deposits and banks have discretion to offer differential rate of interest on bulk deposits.
The lender through a exchange notice had said earlier that it recieved shareholder approval to raise up to Rs 5,000 crore through rights issue or qualified institutional placement (QIP).
The two-day event concluded on Tuesday. He further added that since the global financial crisis in 2008 to 2020, penalties and fines imposed on banks for lack of compliance is well expected to cross $400 billion.
From January to July this year, the RBI has imposed monetary penalties on 70 occasions totalling Rs 122.9 crore, he pointed out.
The Basel Committee had resolved that the loss-absorbing capacity of banks should be increased and a capital conservation buffer be put in place to tide over periods of liquidity stress.
The move has come at a time when several sectors are witnessing a slowdown, leading to production cuts, layoffs and subdued credit demand.
Section 54EC provides exemption of tax on amount of capital gain invested in the specified bonds. Thus, only the amount of capital gain, not the sales consideration, is to be invested in specified bonds.
Card providers charge this small fraction of the total bill to keep your credit card account operative even if you don’t have the money to pay the bill in full. However, by doing so, they charge interest on the remaining amount which can be anywhere between 3-4% per month.
Before investing or spending a single rupee, make sure you have a stable financial base and then only take the next step of investing.
Across different loan segments such as car loan, personal loans, home loans or education loans, the bank is providing loans with added benefits to the borrowers.
SBI customers will enjoy other benefits such as waiver in processing fees, pre-approved digital loans and loans with no escalation in interest rates across various categories, the bank said in a news release.
RLLR home loan is highly volatile and one should be prepared for this type of volatility while going ahead with such a loan.
Global card payments group Visa is critical of the Indian government’s decision to boost adoption of electronic payments by requiring banks and card payment networks to offer no-fee debit card transactions, a senior Visa executive said.
The retail-wholesale inflation gap, which touched 10 percentage points (ppt) in September 2015, has sharply reduced to below 2 ppt since November 2016 as the two inflation rates converged.
There is nothing further the government can do, Kumar said, adding that there is liquidity, partial credit enhancement and interest rates have moderated. Asked about the progress made in the resolution of stressed NBFC Dewan Housing Finance (DHFL), Kumar said: “That you should ask the company.”
If such flexibility is created on the liabilities side, the bank will pass on all rate cuts to its borrowers. Since existing liabilities cannot be repriced, only new borrowers will get the benefit of repo-linked loans.
Das said there was no proposal to conduct an asset quality review of non-bank finance companies (NBFCs) which were facing a liquidity crunch.