The move will push privatisation of Indian banking and boost ease of doing business
Two recent pronouncements, one by the Prime Minister in the Lok Sabha on the role of the private sector and the other by the Finance Minister about lifting the embargo on private sector banks (PvBs) from conducting government business, have left a signalling impact on the ecosystem of private sector initiatives in India.
The RBI, after it was established in 1935, was empowered to carry out the general banking business of the Central and State governments through its own offices and through the offices of the ‘agency banks’ SBI and later public sector banks (PSBs) appointed under Section 45 of the RBI Act, 1934, by mutual agreement. And the RBI pays agency commission to agency banks for the government business handled by them.
TS, PSU banks at loggerheads over government lands of loan defaulters
Updated Apr 5, 2021, 7:09 am IST
Banks argue that the government had permitted mortgage of the property and hence cannot reclaim the land or the assets built on them
The latest Trident scam, in which CBI booked the developers of the hotel project near Hitec City on charges of a Rs 1,285 crore bank fraud, will only add to the ongoing tussle between the state government and the banks. -By arrangement
Hyderabad: The Telangana state government and several public sector banks are at loggerheads over mortgaged government lands and assets developed on them by loan defaulters, which is collectively worth thousands of crores.
URL copied Image Source : PTI
Supreme Court order on interest waiver: PSU Banks may have to take Rs 2,000 cr hit
Public sector banks may have to bear a burden of Rs 1,800-2,000 crore arising due to a recent Supreme Court judgement on the waiver of compound interest on all loan accounts which opted for moratorium during March-August 2020, sources said.
The judgement covers loans above Rs 2 crore as loans below this got blanket interest on interest waiver in November last year. Compound interest support scheme for loan moratorium cost the government Rs 5,500 crore during 2020-21 and the scheme covered all borrowers including the prompt one who did not avail moratorium.
According to banking sources, initially 60 per cent of borrowers availed moratorium and gradually the percentage came down to 40 per cent and even less as collection improved with ease in lockdown.
SC order on interest waiver: PSU banks may have to take Rs 2,000cr hit
Top Searches
SC order on interest waiver: PSU banks may have to take Rs 2,000cr hit
PTI / Updated: Apr 4, 2021, 11:30 IST
FacebookTwitterLinkedinEMail
NEW DELHI: Public sector banks may have to bear a burden of Rs 1,800-2,000 crore arising due to a recent Supreme Court judgement on the waiver of compound interest on all loan accounts which opted for moratorium during March-August 2020, sources said.
The judgement covers loans above Rs 2 crore as loans below this got blanket interest on interest waiver in November last year. Compound interest support scheme for loan moratorium cost the government Rs 5,500 crore during 2020-21 and the scheme covered all borrowers including the prompt one who did not avail moratorium.