RBI sets up panel to review ownership, corporate structure of Private sector banks

The Reserve Bank of India has constituted a five-member Internal Working Group to review the guidelines related to ownership, governance and corporate structure of private sector banks. In a press release, RBI informed that RBI Central Board Director P K Mohanty will head the committee, which will submit its report by 30th September, 2020.   The panel will also examine norms for promoter shareholding at the initial/licensing stage and subsequently, along with the timelines for dilution of the sh...

RBI slashes lending rates and extends moratorium on loan repayment by 3 months to support economic growth

Over 99% of CKP Co-Op Bank's depositors to get full repayment: RBI

Reserve Bank of India has said that over 99 per cent of CKP Co-Op Bank's 1.32 lakh depositors will get full money through Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI's chief general manager in the Department of Communication, Yogesh Dayal, said that the CKP co operative bank had been under all inclusive directions that had restricted its activities since 2014 itself, and the decision to cancel the license was taken as there was no scope for its revival. In i...

RBI asks banks to extend all benefits announced by govt pertaining to short-term crop loans to farmers

The Reserve Bank of India has asked banks to extend the benefit of interest subvention (IS) and prompt repayment incentive (PRI) for short-term crop loans to farmers till 31st May, 2020. In a notification, RBI said, it has observed that many farmers are not able to travel to bank branches for payment of their short-term crop loan dues due to the national lockdown imposed in view of the coronavirus outbreak. It further noted that moratorium has already been announced for all term loans including ...

Merger of 10 state-run banks into 4 to come into force from April 1: RBI

Reserve Bank of India has said that the merger of 10 state-run banks into four will come into force from April 1. The branches of merging banks will operate as of the banks in which these have been amalgamated.  The government on March 4 had notified the amalgamation schemes for 10 state owned banks into four as part of its consolidation plan to create bigger size stronger banks in the public sector.  As per the scheme, Oriental Bank of Commerce and United Bank of India will be merged into Punja...

Slowing credit growth critical challenge for banking industry: RBI Governor

Reserve Bank of India Governor Shaktikanta Das has said that slowing credit growth is one of the most critical challenges for the banking industry. He said credit growth has moderated to 7-7.5 per cent this year and there is a need to focus on prudent lending by the banks. Addressing the Mint annual banking conclave in Mumbai yesterday the apex Bank Governor stated that to facilitate the flow of credit, the RBI has taken several steps like reducing repo rate, facilitating bank refinance to NBFCs...

RBI keeps repo rate, reverse repo rate unchanged