- PSU BANKS RUSH TO SELL STRESSED ASSETS: Public Sector Banks have started rushing to sell Non-Performing assets (NPAs) in the last quarter of the fiscal ending March 2017. As strict norms on sale of stressed assets come into effect from April 1, 2017, all banks have lined up more than Rs.20,000 crore of NPAs to be sold to Asset Reconstruction Companies ( ARC). However banks putting these stressed assets on blocks do not mean they will be sold, as most of the time these loans end up not being sold as there is a big difference in the price banks demand and what the ARCs are willing to pay.
- SBI ANNOUNCES Rs.6,000 CRORE TRACTOR LOAN SETTLEMENT SCHEME: State Bank of India has announced a one-time settlement scheme for tractor and farm mechanism loans, which are in the doubtful or loss asset category as on 30th September 2016. This scheme will remain open till March 31st. Loans worth Rs.6,000 crore would be eligible under the said settlement scheme. The bank is willing to write off up to 40 % of the outstanding principal amount of the loan under the scheme.
- NO LIMIT ON CASH WITHDRAWALS FROM MARCH 13th: The Reserve Bank of India has ended all the curbs on withdrawals from savings bank account from March 13th Earlier the weekly withdrawal limit per savings bank account had been raised to Rs. 50,000/- from Rs. 24,000/- with effect from February 20th and all limits on cash withdrawal have now been withdrawn.
- SBI CREATES WHOLLY-OWNED SUBSIDIARY TO MANAGE REAL ESTATE: State Bank of India has incorporated a specialised firm- SBI Infra Management Solutions Pvt Ltd (SBIIMS) , which will manage its premises and real estate property across the country. The primary role of the new entity will be to handle transaction management, advisory services, project management etc. The move is seen as public sector bank’s efforts to exit non-core activities to improve balance sheet as per government guidelines.
- HDFC BANK DIGITISES OVER 1,200 DAIRY CO-OPERATIVES ACROSS INDIA: In line with government’s initiative for a cash-less society, HDFC Bank under the aegis of its “ Milk to Money” (M2M) programme has digitised payments at over 1,200 diary co-operatives in the country. M2M programme will benefit about 3.2 lakhs dairy farmers across 16 states, bringing these farmers into the organised banking system.
- BANKS MAY GET INCENTIVES FOR DIGITAL PUSH: Government may give banks an incentive of up to Rs 10/- for each transaction to encourage merchants to adopt digital modes of payment. This is aimed at achieving the objective of cash-less economy. The incentive is aimed at encouraging banks to bring more merchants into the new payments ecosystem and build the requisite infrastructure.
- RBI TO OPEN UP UPI FOR DIGITAL WALLETS: Reserve Bank of India prepares to open up the Unified Payment Interface (UPI) platform for digital wallets such as Paytm and Mobikwik. Once this is done, the wallet companies will become inter-operable. RBI is set to issue guidelines shortly on inter-operability and Know your Customer (KYC) norms for digital wallet companies.
This post first appeared on IMPACT OF DEMONITIZATION OF CURRENCY IN INDIA IN 2016, please read the originial post: here