RBI not in favour of fresh insolvency freeze
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During initial discussions with the government, RBI has indicated a freeze will not help anyone in the long run as it will only show lower level of non-performing assets (NPAs).
Reuters
(This story originally appeared in on May 17, 2021)The Reserve Bank of India (RBI) has shot down suggestions of a fresh suspension of the Insolvency & Bankruptcy Code (IBC) due to the second wave of Covid-19, while making it clear that banks can still restructure distressed but viable loans, ensuring that their balance sheets remain transparent.
During initial discussions with the government, RBI has indicated a freeze will not help anyone in the long run as it will only show lower level of non-performing assets (NPAs), government sources told TOI. The government has not completely shut the door on the issue but the regulator’s reluctance will certainly weigh on the decision.
Govt appoints Vandita Kaul as nominee director on board of Bank of India
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Last Updated: May 14, 2021, 03:14 PM IST
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The government has nominated Vandita Kaul, Additional Secretary, Ministry of Finance, Department of Financial Services as government nominee director on the board of directors of Bank of India with immediate effect, the lender said in a regulatory filing.
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Bank of India (BOI) on Friday said the government has appointed Vandita Kaul, additional secretary in the Finance Ministry, to its board as nominee director.
The bank said it has received the communication from the Finance Ministry about Kaul s nomination on May 13, 2021.
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Besides relief for borrowers and funding for healthcare, the RBI announced a host of steps that would provide funds for those who lend to the micro-segment. (Reuters)
MUMBAI: Reserve Bank of India has opened its purses to fund the second battle in the war against Covid by providing a Rs 50,000 crore liquidity window to ramp up healthcare infrastructure. While it did not announce a blanket moratorium on all repayments like in 2020, It did extend relief to individuals and small businesses who have loans up to Rs 25 crore by allowing them to seek a loan restructuring.
“This is the first part of a calibrated and comprehensive strategy against the pandemic,” said RBI governor Shaktikanta Das in a public announcement said that he was willing to take many more `small and big steps including unconventional measures and work with the government to `ameliorate the extreme travails that our citizens are undergoing in this hour of distress.
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RBI announces loan moratorium to individuals, small borrowers - Check eligibility
RBI on Wednesday allowed certain individual and small borrowers more time to repay debt and allowed banks to give priority loans to vaccine makers, hospitals and COVID-related health infrastructure as it announced support measures to cushion the pandemicâs blow on the economy.
Moratorium eligibility
The moratorium of up to two years will be available to individuals and small and medium enterprises that did not restructure their loans in 2020 and were classified as standard accounts till March 2021, RBI Governor Shaktikanta Das in an unscheduled address. This facility will be available to borrowers with a total exposure of Rs 25 crore.