RBI

17 Oct 24

Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)

Ministry of MSME started Credit Guarantee Scheme for Micro & Small Enterprises (MSEs) (CGTMSE) in the year 2000. In order to implement the Credit Guarantee Scheme, Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) was setup by the Ministry of MSME, GoI and SIDBI. Credit Guarantee Scheme aims…

18 Jun 24

Tax Exemption for Startups under Section 80 IAC under Income Tax Act

Newly established and incorporated startups often face shortage of financial resources during their initial stages of operations. This further has a negative impact on their sales and profits. The situation further gets worsened when out of the minimal income they earn, a huge chunk is paid as taxes. Hardly, any…

04 Jun 24

RBI Fair Practice Code: Now Interest will be charge by Lenders from the date of receipt of funds in Bank Account

Home Loans, Mortgage Loans or any type of Loans, customer usually starts to make payment of Interest from the date of disbursement of loan even though they don’t receive actual funds in their bank accounts. Banks/NBFCs loan management system (LMS) starts charging interest on principal amount disbursed as per repayment…

19 Nov 23

RBI IMPLEMENTS STRICTER MEASURES ON CONSUMERCREDIT AND NBFCS

The Reserve Bank of India (RBI) has recently implemented regulatory measures aimed at addressing the rapid growth in consumer credit and the increasing dependency of Non-Banking Financial Companies (NBFCs) on bank borrowings. In a statement dated November 16, 2023, Governor Vaibhav Chaturvedi highlighted the need for banks and NBFCs to…

19 Nov 23

Home Loans & Its Benefits

‘Home’ brings to mind comfort, joy, pride and family time. Every homeowner will tell you that her home gives her a sense of identity and its ownership is sacrosanct; this is one asset she would never trade for anything in the world. To experience this sense of ownership, pride and joy,…

12 Nov 23

The Insolvency and Bankruptcy Board of India (IBBI) proposes changes to rules for insolvency resolution process in Realty Projects

The Insolvency and Bankruptcy Board of India (IBBI) has proposed five broad changes, including operating a separate bank account for each real estate project, executing registration/sublease deeds with approval of the Committee of Creditors (CoC) during the resolution process and allowing CoC to examine and invite separate plans for each…

12 Nov 23

RBI Permits Non-resident Investment in Government-issued SGBs via ‘Fully Accessible Route’ for F.Y. 2023-24

The Reserve Bank of India (RBI) has recently issued a circular (RBI/2023-24/81) expanding investment opportunities for non-residents in the Government Securities market. The circular, dated November 08, 2023, includes Sovereign Green Bonds in the ‘Fully Accessible Route’ (FAR), opening new avenues for investors. This development holds significant implications for both…

12 Aug 23

RBI asks banks to maintain incremental CRR (I-CRR)

The Reserve Bank of India (RBI) has asked banks to maintain an incremental Cash Reserve Ratio (ICRR) of 10 per cent on the increase in their deposits between May 19 and July 28 to suck out excess liquidity in the banking system. Bank does not earn interest on CRR maintained with RBI…

12 Aug 23

Relationship between Interest Rates & Inflations

Inflation and interest rates are inversely proportional. People borrow more from banks and save less when interest rates are low. This increases both the supply and demand for money in the economy. As a result, commodity prices rise, causing inflation. In this scenario, the RBI raises interest rates in order…