Finance Minister Nirmala Sitharaman had recently instructed public sector banks to onboard on the AA system by end of July. Players believe that the AA ecosystem will also benefit with PSBs joining the platform.
An AA is a consent manager for financial data. They are NBFCs licensed by the RBI to collect data from, FIPs that hold an individual’s personal financial data like banks, and share the data with, FIUs that provide financial services to the individual.
RBI has reviewed and revised the existing framework for SCB’s and also issued fresh PCA Framework for NBFC’s. The new PCA norms for SCB’s shall be effective January 1st, 2022 & for NBFC’s the PCA norms will be effective wef October 1, 2022.
RBI issued instructions to all the Financial Institutions including Banks, Cooperative Banks, NBFC’s and other FI’s to initiate necessary action for reclassification of enterprises as per the new definition w.e.f July 1, 2020 and issue necessary instructions to your branches/controlling offices in this regard,
The Cabinet approved the amalgamation of the 10 public sector banks (PSB) into 4 PSBs that was announced on August 30, 2019. The nod was given today and the merger would come into effect from April 1, 2020. The Cabinet’s approval will lead to the merger of –
Oriental Bank of Commerce and United Bank of India into Punjab National Bank;
Andhra Bank and Corporation Bank into Union Bank of India;
Syndicate Bank into Canara Bank; and
Allahabad Bank into Indian Bank
Reserve Bank Governor Shaktikanta Das on Monday said slowing credit growth is one of the major challenges that banks are facing currently. Loan growth in the system is hovering around 7 per cent.
Banks may press for commitment fees on unutilised credit limits from large, mid-sized corporates
Finance Minister Nirmala Sitharaman announces 4 mega bank mergers. FM said that the creation of next-generation banks was imperative for India to become a $5 trillion economy in the next five years. The reforms in the banking sector come after the government announced a slew of measures to revive growth in the Indian economy.
The Finance Ministry has taken a note that the Market Share of PSB’s is declining while that of Private Banks is declining and therefore MOF has planned to address the issue of declining share of 18 Public Sector Banks based on the Performance Indicators in certain Key areas. Now onwards Performance indicators will assess how…
Lowering leverage ratio threshold can offer leeway to expand balance sheet of banks. Lowering Leverage Ratio allows some leeway for banks to take additional exposure (vis-à-vis capital) and expand their balance sheets.
PCR is the ratio of provisioning to gross non-performing assets and indicates the extent of funds a bank has kept aside to cover loan losses. Some banks make record provisions against bad loans.Banks clean up books as NPA additions slow over the past year.