- GOVERNMENT TO REVIEW BAN ON SALE OF GUARANTOR’S PERSONAL ASSETS UNDER INSOLVENCY LAW: National Company Law Tribunal (NCLT) had recently ruled that the personal assets of guarantors cannot be seized during moratorium on the disposal of assets that is in place, while the insolvency process is underway in case of corporate debts. Now the government will review the issue of the bar on liquidating the assets of directors who have given their personal guarantees for corporate loans.
- GOVERNMENT INSTRUCTS PSB EMPLOYEES TO LEARN RISK MANAGEMENT: The Department of Financial Services (DFS) at the Finance Ministry has directed Public Sector Bank executives to attend a 3 day workshop at the SBI training Academy Gurgaon, to train and learn the latest topics on technology and risk management. The Ministry believes that it is important to have a session on the systems, controls and processes that are not being followed in banks.
- RBI SLAPS Rs. 5 CRORE PENALTY ON AIRTEL PAYMENTS BANK FOR VIOLATION OF NORMS: The Reserve Bank of India has imposed a penalty of Rs. 5 crore on Airtel Payments Bank for violating operating guidelines and Know Your Customer (KYC) norms. The fine was imposed by RBI after scrutinising bank’s documents relating to opening of bank accounts without any specific or clear consent from the customers.
- PUNJAB NATIONAL BANK SEEKS PROVISIONING RELIEF FROM RBI FOR Rs. 13,000 CRORE LOSSES: Punjab National Bank has requested RBI to allow it to provide for losses in the Rs. 13,000 crore Nirav Modi- Gitanjali Gems scam over four quarters instead of at one go as it expects to recover 40% of the defaulted loan amount. Further, bearing full provisioning loss of over Rs. 13,000 crore in March 2018 quarter alone could wipe out more than 25% of PNB’s net worth of Rs. 48,000 crore.
- RBI ASKS BANKS FOR DETAILS OF LOUs AS FAR BACK AS 2011: The Reserve Bank of India has asked all banks to provide details of LOUs (Letter of Undertaking) issued by them as far back from 2011 onwards including outstanding as on date and whether the banks had pre-approved credit limits or kept enough cash margins before issuing the LOUs. RBI has given a deadline of one week to respond.
- PSBs MAY BE TOLD TO TAKE PASSPORT DETAILS FOR LOANS ABOVE Rs. 50 CRORE: The Finance Ministry may ask Public Sector Banks to seek certified passport details of the borrowers with an exposure of Rs. 50 crore and above to help prevent them fleeing the country in case of default or wrong doing. The idea is under consideration and will be taken up for discussions.
- E-WAY BILL MAY NOT BE COMPULSORY FOR SMALL ORDERS: Small orders that are part of a large consignment out for multiple deliveries within the state may not require an electronic- way bill (E-way bill) in the Goods &Services Tax (GST) regime. The E-way bill requirement will be limited to items priced over Rs. 50,000 within the state.
- NBFCs’ SHARE IN CREDIT MARKET TO TOUCH 20% BY 2020: Non Banking Financial Companies (NBFCs) have been steadily growing their share in the credit market and will consolidate their position further in a couple of years. As per a report from CRISIL, the NBFC share in credit market will touch to 20% by the year 2020.
This post first appeared on IMPACT OF DEMONITIZATION OF CURRENCY IN INDIA IN 2016, please read the originial post: here
