Forwarded from Pravanjan Tripathy
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Course/Test Series Overview: RRB GBO Scale 2, Scale 3 and SO
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#RBI #MONETARY #POLICY
Update on #RBI #Policy #Review on #4th #June 2021.
A Banker must note that:
1. RBI has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. Consequently the reverse Repo Rate is also kept at 3.35%, Bank Rate 4.25% and MSF Rate at 4.25% . All policy rates have been kept unchanged.
2. The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target i.e. within the range of 2 to 6%.
3. As per RBI extant guidelines the eligibility conditions for MSME accounts to be considered for restructuring under the framework,
states that the aggregate exposure, including non-fund based facilities, of all lending institutions to the MSME borrower should not exceed ₹25 crore as on March 31, 2021.
Based on a review, it has been decided to enhance the above limit from ₹25 crore to ₹50 crore.
4. Till now the eligible borrowers who may be considered for
resolution under the framework for restructuring included the following sub-clauses:
Individuals who have availed of loans and advances for business purposes and to whom the lending institutions have aggregate exposure of not more than ₹25 crore as on March 31, 2021.
Small businesses, including those engaged in retail and wholesale trade, other than those classified as MSME as on March 31, 2021, and to whom the lending institutions have aggregate exposure of not more than ₹25 crore as on March 31, 2021.
Based on a review, it has been decided to enhance the above limits from ₹25 crore to ₹50 crore.
5. The Real GDP has contracted 7.3% during 2020-21, while GDP grew at the rate of 1.6% in Q4. Overall contraction but Q4 has shown a positive growth.
6. In order to mitigate the adverse impact of the second wave of the pandemic on certain contact-intensive sectors, a separate liquidity window of ₹15,000 crores is being opened till March 31, 2022 with tenors of up to three years at the repo rate. Under the scheme, banks can provide fresh lending support to hotels and restaurants; tourism – travel agents, tour operators and adventure/heritage facilities; aviation ancillary services – ground handling and supply chain; and other services that include private bus operators, car repair services, rent-a-car service providers, event/conference organizers, spa clinics, and beauty parlours/ saloons.
7. To nurture the still nascent growth impulses and ensure continued flow of credit to the real economy, the Reserve Bank had extended fresh support of ₹50,000 crore on April 7, 2021 to All India Financial Institutions (AIFIs) for new lending in 2021-22. This included ₹15,000 crore to the Small Industries Development Bank of India (SIDBI). To further support the funding requirements of micro, small and medium enterprises (MSMEs), particularly smaller MSMEs and other businesses including those in credit deficient and aspirational districts, it has been decided to extend a special liquidity facility of ₹16,000 crore to SIDBI for on-lending/ refinancing through novel models and structures. This facility will be available at the prevailing policy repo rate for a period of up to one year, which may be further extended depending on its usage.
8. To provide greater flexibility in raising short term funds by RRBs, it has now been decided to permit RRBs to issue Certificates of Deposit (CDs).
9. National Automated Clearing House (NACH) on all days of the week:
NACH, a bulk payment system operated by the NPCI, facilitates one-to-many credit transfers such as payment of dividend, interest, salary, pension, etc., as also collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds, insurance premium, etc. NACH has emerged as a popular and prominent mode of direct benefit transfer (DBT) to large number of beneficiaries.
Update on #RBI #Policy #Review on #4th #June 2021.
A Banker must note that:
1. RBI has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. Consequently the reverse Repo Rate is also kept at 3.35%, Bank Rate 4.25% and MSF Rate at 4.25% . All policy rates have been kept unchanged.
2. The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target i.e. within the range of 2 to 6%.
3. As per RBI extant guidelines the eligibility conditions for MSME accounts to be considered for restructuring under the framework,
states that the aggregate exposure, including non-fund based facilities, of all lending institutions to the MSME borrower should not exceed ₹25 crore as on March 31, 2021.
Based on a review, it has been decided to enhance the above limit from ₹25 crore to ₹50 crore.
4. Till now the eligible borrowers who may be considered for
resolution under the framework for restructuring included the following sub-clauses:
Individuals who have availed of loans and advances for business purposes and to whom the lending institutions have aggregate exposure of not more than ₹25 crore as on March 31, 2021.
Small businesses, including those engaged in retail and wholesale trade, other than those classified as MSME as on March 31, 2021, and to whom the lending institutions have aggregate exposure of not more than ₹25 crore as on March 31, 2021.
Based on a review, it has been decided to enhance the above limits from ₹25 crore to ₹50 crore.
5. The Real GDP has contracted 7.3% during 2020-21, while GDP grew at the rate of 1.6% in Q4. Overall contraction but Q4 has shown a positive growth.
6. In order to mitigate the adverse impact of the second wave of the pandemic on certain contact-intensive sectors, a separate liquidity window of ₹15,000 crores is being opened till March 31, 2022 with tenors of up to three years at the repo rate. Under the scheme, banks can provide fresh lending support to hotels and restaurants; tourism – travel agents, tour operators and adventure/heritage facilities; aviation ancillary services – ground handling and supply chain; and other services that include private bus operators, car repair services, rent-a-car service providers, event/conference organizers, spa clinics, and beauty parlours/ saloons.
7. To nurture the still nascent growth impulses and ensure continued flow of credit to the real economy, the Reserve Bank had extended fresh support of ₹50,000 crore on April 7, 2021 to All India Financial Institutions (AIFIs) for new lending in 2021-22. This included ₹15,000 crore to the Small Industries Development Bank of India (SIDBI). To further support the funding requirements of micro, small and medium enterprises (MSMEs), particularly smaller MSMEs and other businesses including those in credit deficient and aspirational districts, it has been decided to extend a special liquidity facility of ₹16,000 crore to SIDBI for on-lending/ refinancing through novel models and structures. This facility will be available at the prevailing policy repo rate for a period of up to one year, which may be further extended depending on its usage.
8. To provide greater flexibility in raising short term funds by RRBs, it has now been decided to permit RRBs to issue Certificates of Deposit (CDs).
9. National Automated Clearing House (NACH) on all days of the week:
NACH, a bulk payment system operated by the NPCI, facilitates one-to-many credit transfers such as payment of dividend, interest, salary, pension, etc., as also collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds, insurance premium, etc. NACH has emerged as a popular and prominent mode of direct benefit transfer (DBT) to large number of beneficiaries.
RBI CIRCULAR regarding Provising of NPA Account. Please check definations of substandard doubtful and loss assets on page 9
#IMPORTANT FOR All Exams
The categories under priority sector lending (PSL) are as follows:
⏺ Agriculture
⏺ Micro, Small and Medium Enterprises
⏺ Export Credit
⏺ Education
⏺ Housing
⏺ Social Infrastructure
⏺ Renewable Energy
⏺ Others
The categories under priority sector lending (PSL) are as follows:
⏺ Agriculture
⏺ Micro, Small and Medium Enterprises
⏺ Export Credit
⏺ Education
⏺ Housing
⏺ Social Infrastructure
⏺ Renewable Energy
⏺ Others
Reserve Bank of India (RBI) has changed some rules regarding cash withdrawal from automated teller machine (ATM). These ATM cash withdrawal rule changes include higher charges on transactions beyond the free permissible limit, a new free ATM transaction limit and a rise in interchange fee.
The new ATM charges as defined by RBI are as under:
📔Free cash withdrawal limit from own bank: Bank customers can now do five free financial and non-financial transactions every month from their own bank ATMs.
📔Free ATM transaction limit from other banks: ATM cardholders can do three free financial and non-financial transactions in metro centres while five in the non-metro transaction from other bank ATMs
📔Charges on ATM cash withdrawal beyond the free limit: RBI allowed banks to increase charges on ATM transactions beyond the free ATM transaction limit.
📔Rise in interchange fee: Interchange fee per transaction changed from Rs 15 to Rs 17 for financial transactions
The new ATM charges as defined by RBI are as under:
📔Free cash withdrawal limit from own bank: Bank customers can now do five free financial and non-financial transactions every month from their own bank ATMs.
📔Free ATM transaction limit from other banks: ATM cardholders can do three free financial and non-financial transactions in metro centres while five in the non-metro transaction from other bank ATMs
📔Charges on ATM cash withdrawal beyond the free limit: RBI allowed banks to increase charges on ATM transactions beyond the free ATM transaction limit.
📔Rise in interchange fee: Interchange fee per transaction changed from Rs 15 to Rs 17 for financial transactions
▪︎GOVERNMENT SCHEME - 3
■ EMERGENCY CREDIT LINE GUARANTEE SCHEME EXTENDED.
Government extended the scope of Emergency Credit Line Guarantee Scheme through introduction of ECLGS 3.0.
□ ABOUT SCHEME :-
100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and MUDRA borrowers.
□ OBJECTIVES :-
◇ Aims at mitigating the economic distress faced by MSMEs by providing them additional funding in the form of a fully guaranteed emergency credit line (GECL).
◇ To provide incentive to Member Lending Institutions (MLIs) to increase and enable the availability of additional funding facility to MSME borrowers.
◇ Will Provide a 100 per cent guarantee for any losses suffered by them.
□ ABOUT ECLGS 3.0
◇ It involve extension of credit of upto 40% of total credit outstanding across all lending institutions.
◇ The tenor of loans granted shall be 6 years including moratorium period of 2 years.
◇ Revised operational guidelines in this regard shall be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).
■ EMERGENCY CREDIT LINE GUARANTEE SCHEME EXTENDED.
Government extended the scope of Emergency Credit Line Guarantee Scheme through introduction of ECLGS 3.0.
□ ABOUT SCHEME :-
100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs. 3 lakh crore to eligible MSMEs and MUDRA borrowers.
□ OBJECTIVES :-
◇ Aims at mitigating the economic distress faced by MSMEs by providing them additional funding in the form of a fully guaranteed emergency credit line (GECL).
◇ To provide incentive to Member Lending Institutions (MLIs) to increase and enable the availability of additional funding facility to MSME borrowers.
◇ Will Provide a 100 per cent guarantee for any losses suffered by them.
□ ABOUT ECLGS 3.0
◇ It involve extension of credit of upto 40% of total credit outstanding across all lending institutions.
◇ The tenor of loans granted shall be 6 years including moratorium period of 2 years.
◇ Revised operational guidelines in this regard shall be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).
forex reserves: India's forex kitty crosses $600 billion for the first time - The Economic Times
https://m.economictimes.com/markets/forex/forex-reserves-cross-600-billion-mark-for-first-time/articleshow/83433204.cms
https://m.economictimes.com/markets/forex/forex-reserves-cross-600-billion-mark-for-first-time/articleshow/83433204.cms
The Economic Times
India's forex kitty crosses $600 billion for the first time
The increase in foreign kitty in the reporting week was mainly on the back of a rise in the value of foreign currency assets (FCA) held by the central bank even as the value of gold reserves held by RBI fell.
#FULL #FORMS
#BOM #RRB GBO EXAM
Important Banking ABBREVIATIONS starting with alphabet 'K' & 'L':
KCC - Kisan Credit Card
KYC - Know Your Customer
LAF - Liquidity Adjustment Facility
LCR - Liquidity Coverage Ratio
LEI - Legal Entity Identifier
LIBOR - London Inter-Bank Offered Rate
LTROs - Long Term Repo Operations
LTV - Loan-to-Value
#BOM #RRB GBO EXAM
Important Banking ABBREVIATIONS starting with alphabet 'K' & 'L':
KCC - Kisan Credit Card
KYC - Know Your Customer
LAF - Liquidity Adjustment Facility
LCR - Liquidity Coverage Ratio
LEI - Legal Entity Identifier
LIBOR - London Inter-Bank Offered Rate
LTROs - Long Term Repo Operations
LTV - Loan-to-Value