Sunny Verma

The RBI monetary policy review has kept interest rates on hold, contrary to broad market expectations. A look at how concerns around inflation and growth led to this decision, and other key highlights.

The scheme, which provides additional 20 per cent collateral-free credit, will now cover individual loans given for business purposes.

Satish Marathe, director at the RBI’s Central Board, has also called for government to reduce its holding in state-owned banks to 26 per cent and not go for privatisation of the banks.

The Market disruption caused by the Covid-19 pandemic has forced the government to extend bid deadlines multiple times for its showpiece privatisation programmes of BPCL and Air India, while stake sale of other state-owned companies are also facing delays.

Sectors such as tourism, hospitality and real estate have been seeking this relief to tide over the business slump resulting from effects of COVID-19 pandemic induced economic downturn.

The RBI had announced a three-month moratorium on repayments in March to help borrowers tackle the impact, especially lockdown, of the Covid-19 pandemic.

Two months after the launch of the scheme, cumulative loan sanctions have risen to Rs 1.30 lakh crore from Rs 1.10 lakh crore on July 1, with both private and state-owned banks stepping up credit deployment, according to most recent data.

The government has been taking a series of measures in recent months to restrict the inflow of Chinese investments and products into the country.

Bank managements and unions have agreed to introduce the system of performance-linked incentive (PLI) in public sector banks for the first time.

India shares its border with China, Nepal, Bhutan, Pakistan, Bangladesh and Myanmar. As per official data, out of these, the government has extended lines of credit to Bangladesh, Nepal, Myanmar, exempting them from the new order.

PSU bank employees salary: The wage hike will benefit employees of old generation private banks and some foreign banks as the agreement has been signed by 11 state-owned banks, 12 private sector banks and seven foreign banks.

The government has already set in motion privatisation plans for large PSU companies BPCL, Air India, Container Corporation of India, and Shipping Corporation of India.

Sources said the Centre is preparing the next set of measures that would be required to support economic activity. These measures are likely to be announced from beginning of September.

Under monetisation, the Centre can raise funds directly from the RBI via issuance of “COVID perpetual bonds” or such instruments.

The SBI’s economics research team report has suggested the government raise funds directly from the RBI, through issuance of “Covid perpetual bonds” or such instruments.

Prime Minister Narendra Modi is learnt to have met Finance Minister Nirmala Sitharaman on Thursday, the second meeting this week, to take stock of the economy.

In the backdrop of the steep economic contraction expected in the April-June quarter, the government is trying to assess its revenue position, how it can be augmented and what more will be required to support economic activity in these uncertain times, sources familiar with the matter said.

Yes Bank FPO tomorrow: Spurt in NPAs and consequent provisioning has led to Yes Bank breaching the capital adequacy requirements as mandated by the Reserve Bank of India.

The banking sector, led by the Indian Banks Association, had recently submitted a proposal for setting up a bad bank to the finance ministry and the RBI.

There are several questions involved: Why are gold prices rising? Is it a good idea to buy at this price? Can the price crash?

On June 22, Sebi eased its preferential allotment rules to help stressed companies raise capital, changed the pricing formula to reflect recent prices and exempted such companies from the open offer requirement.

Credit enhancement entities aid in augmenting the credit ratings of bonds of certain above-investment grade operational infrastructure projects, improving their attractiveness to institutional investors, by proving partial or full credit guarantees.

Under the ECLGS scheme, banks are offering up to Rs 3 lakh crore of government-guaranteed loans — an extra 20 per cent of outstanding loans to their MSME borrowers that are non-NPA.

Even as government departments have started clearing up dues of MSMEs with the Finance Ministry stressing timely clearance of funds, many micro and small firms are stuck with pending payments of more than Rs 3 lakh crore with large firms with no easy legal recourse.