Finance Minister Piyush Goyal unveiled ‘Project Sashakt’, a five-prong strategy to deal with non-performing assets. Sashakt aims to strengthen the credit capacity, credit culture and credit portfolio of public sector banks. What is Project Sashakt? Project Sashakt was proposed by a panel led by PNB chairman Sunil Mehta. The Five-Prong Approach is as under:- 1. Outlining SME Resolution approach for…
RBI Notification DNBR (PD-ARC) No. 05/ED(SS)-2017 dated April 28, 2017In exercise of the powers conferred by clause (b) of sub-section (1) of section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Reserve Bank of India hereby specifies that the Net Owned Fund (NOF) for Asset Reconstruction Companies…
A good and informative article shared from my friend Shri Arvind Mannur’s post:MAJOR POLICIES THAT AFFECT BANKS:All the major policy matters decide the destiny of banks. Look at the following:1. MONETARY POLICY decides the volume of business growth, interest rates on deposits & lending, and all other prudential regulations.2. FISCAL POLICY decides the tax matters…
The Lower House of Parliament i.e. Lok Sabha has today passed Four(4) Supplementary Bills of the GST which will pave the path for smooth roll out of GST from 1st July 2017. Since this Bill has been passed as Money Bill passage of it from the Upper House i.e. Rajya Sabha will not be an…
Summary of the important announcement regarding Banning of 500 & 1000 Rupee Note : 1. Black money issue, 500 rupees and 1000 rupees banned from Midnight. 2. ATM’s wouldn’t wouldn’t work on 9th and 10th November. Rather the withdrawal limit is Rs. 2000 only. 3. All Residents have option till 30th December 2016, to deposit…
RBI has on August 1, 2016 released “Guidelines for ‘on tap’ Licensing of Universal Banks in the Private Sector”.On Tap Licensing is one of the Reforms brought in by the RBI Governor Shri Raghuram Rajan which means Continuous Banking i.e. Now bank licensing process will no longer be a once-in-a-decade affair. It will be an…
1. Bankers need skill to perform the daily work. Time now ripe to teach them Knowledge. Future banking is knowledge-driven. 2. Inter-linkages in bank functioning needs to be taught. Officers should be able to understand the entire balance sheet management of the Bank in a holistic manner. 3. Inter-linkages in various functioning of banks should…
RBI’s MONETARY POLICY COMMITTEE : GOVERNOR’S ROLE REDUCED. 1. The Government has notified the formation of ” Monetary Policy Committee” (MPC) under the RBI. This committee will take decision on interest rate or Repo rate in a transparent manner in future. 2. MPC will bring significant changes in the power of the RBI Governor. 3.…
SIGNIFICANT PARAMATERS TO SHOW HOW STRONG A BANK IS SIGNIFICANT PARAMATERS TO SHOW HOW STRONG A BANK IS Net Interest Income There is no such thing as turnover or sales for banks. Instead, net interest margin is an indicator of bank’s performance; it is the difference between the income earned on lending and interest spent…
What is Negative Interest Rate?DEFINITION of ‘Negative Interest Rate Policy (NIRP)’ A negative interest rate policy (NIRP) is an unconventional monetary policy tool whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent.A negative interest rate means the Central Bank and perhaps private banks will charge…