- BANK CREDIT GROWS BY 14.88% AND DEPOSITS BY 9.13%: The total Bank credit went up by 14.88% to touch 91.11 Lakh Crore and Deposits by 9.13% to Rs 118.25 Lakh Crore as on November 9, 2018. A year ago during the same time the Bank credit was Rs 79.31 lakh Crore and Deposits stood at Rs 108.35 Lakh Crore. Bank credit to Service sector expanded by 24% as compared to with 7% in September 2017. Advances to agriculture and allied activities grew by 5.8%.
- HALF OF INDIA’S ATMs MAY CLOSE DOWN BY MARCH 2019: The Confederation of ATM Industry (CATMi) has warned that half of India’s ATMs may face closure due to the changes in regulatory landscape. The Industry body has said that the recent regulatory changes, including those on hardware and software upgrades, coupled with mandates on cash management standards and the cassette swap method of loading cash will make the ATM operations unviable, resulting in the closure. A majority of ATMs that will shut down will be in the non-urban areas which can hamper the financial inclusion efforts put in by the government and the banks.
- SBI’S “YONO” SUSPENDS PAPERLESS ACCOUNT OPENING VIA AADHAAR: Sate Bank of India has temporarily suspended its Aadhaar based online account opening through its one-stop solution platform- YONO (You Only Need One) since the Supreme Court in its ruling has said that it is not mandatory to link the 12 digit Unique Identification Number Aadhaar for opening of accounts. As of now the e-KYC is not being permitted and hence the same has been suspended and now they have sought clarification from RBI.
- J&K BANK BROUGHT UNDER RTI, CVC AND STATE LEGISLATURE: The Jammu & Kashmir bank has been brought under the purview of Right to Information (RTI) Act, The Chief Vigilance Commissioner (CVC) guidelines and the State Legislature as per an official release. The State Administrative Council (SAC) has approved that the provisions of Jammu & Kashmir Rights to Information Act 2009, shall be applicable to the bank like any other PSUs. Besides the bank shall follow CVC guidelines. Established in 1938 the J&K Bank Ltd is the only state government promoted bank in the country with the J&K Government holding 59.3% share in the bank. The purpose of SAC’s decision is a step towards strengthening better corporate governance.
- DELHI JUMPS CLOSURE TO MUMBAI’S INCOME TAX COLLECTIONS: Mumbai, India’s Business hub and business capital still contributes 29% of total Income Tax revenues which is the largest chunk. But its share has been falling. Delhi which is the second largest contributor of the tax revenue saw its collections rising by 45% from April to November 2018 this year. Collections in Mumbai rose by a meagre 5%. Slower growth in Mumbai is attributed to hefty refunds and the changing economic landscape of our country.
- RBI TAKES MEASURES TO INCREASE CREDIT FLOWS AS MOST PCA LADEN BANKS MET MANDATORY PRIORITY LENDING TARGETS: The government feels that putting as many as half of banks in Prompt Corrective Action (PCA) is preventing the credit flow to MSME sector which is highly labour intensive. But an analysis of RBI data on such loans shows that a large majority of banks including those facing PCA have achieved the mandatory priority sector target for Micro Enterprises. The MSME lending has been exempted from most of the restrictions and several steps have been taken by RBI to ease credit flow to this sector.
- PUBLIC SECTOR BANKS’ LOSSES RISE 3.5 TIMES HIGHER IN SECOND QUARTER OF FY’19: The cumulative losses of Public Sector banks has widened nearly 3,5 times to Rs 14, 716 crore in July-September quarter of current fiscal. Higher provisioning towards bad loans has impacted the balance sheets of majority of these banks. Out of this, the loss reported by Punjab National bank was the highest with the bank posting a net loss of Rs 4,532 crore during the said period.
This post first appeared on IMPACT OF DEMONITIZATION OF CURRENCY IN INDIA IN 2016, please read the originial post: here
