Career
NEET deferred for a year
The government on Friday cleared an ordinance to defer the implementation of NEET, the common entrance test for under-graduate medical courses in India.
 
The ordinance, which puts on hold a Supreme Court May 9 ruling ordering the implementation of National Eligibility cum Entrance Test (NEET) from this year, was cleared in a cabinet meeting under the chairmanship of Prime Minister Narendra Modi, official sources said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Merchant M S

6 months ago

The ordinance need to be challenged. One country one syllabus one exam.

Moneylife Foundation seeks clarity on defaults in credit records from RBI
Moneylife Foundation, a non-governmental organisation (NGO) with over 39,000 members, has requested the Reserve Bank of India (RBI) to provide clarity on defaults recorded by credit information companies (CICs), proper dispute resolution mechanism for credit reports, score and history and initiate a sustained public awareness campaign. 
 
RBI Governor Dr Raghuram Rajan, replying to the detailed report submitted by the Foundation, has asked the concerned department to examine the issue. "Governor Rajan has gone through your letter and we have forwarded the same to the Department concerned to examine the issue," a reply sent by the Governor's office says.
 
The report prepared by Moneylife Foundation, based on an online survey, meetings with CICs, lawyers dealing with defaults, study of international practices and actual consumer experience, highlights how borrowers, who are marked as defaulters are permanently ostracised from the credit system.
 
In theory, the default should remain on a person's credit information report (CIR) for seven years. However, the Credit Information Companies (Regulation) Act, 2005 (CICRA), uses the word as 'minimum' period, the submission from Moneylife Foundation observes.
 
In addition, there is no concept of Lenders' Liability in India, therefore even those with genuine disputes with the lender about interest and charges, end up being marked as defaulters. 
 
In such cases, Moneylife Foundation requested the RBI Governor to have a more equitable system to deal with cases of disputes with lenders regarding charges and asked that the Banking Ombudsman should be allowed to decide such disputes. Even the Aditya Puri Committee set up by the RBI has recommended to allow Banking Ombudsman to look in to credit record-related issues.
 
The Moneylife Foundation report says, "...in theory, each bank is supposed to decide on whether to reject a loan in cases where there is a default or a settlement. In many cases, it could be the result of a temporary job loss or illness or unforeseen natural calamities. Based on an analysis of each case, banks are supposed to offer loans, maybe at a higher interest rate, and allow an opportunity to rebuild credit history. However, in practice, only a few finance companies offer such loans that too in cases where they have tied up with expensive 'credit repair' agencies of debt doctors. It is surely not the RBI's intention to create a business opportunity for debt doctors by forcing hapless individuals to seek their services. Some clarity regarding the rules by large lenders will allow people access to reasonably priced loans once again."
 
"We are sure you will agree that this makes the system very inequitable to individuals, especially in view of the mountain of bad loans piled up by large corporate borrowers, where there is no system of sharing information about habitual and wilful defaulters among banks and lenders," the report from Moneylife Foundation says.
 
The Survey conducted by the Foundation for this report also highlights how borrowers are left clueless for rejection of their loan applications. Lenders tend to ignore the Obligation to disclose (CIC regulations Chapter VIc: Data Use
Limitations) as specified in the regulations and those seeking a loan are invariably clueless as to the reason for the rejection.
 
The regulations clearly specify:
Obligation to disclose: Every specified user, in case of denying credit or any other service to a borrower or a client, as the case may be, on the basis of his credit information report within thirty days of such decision shall, 
i. send a written intimation to such borrower, or the client about the rejection;
ii. include in such intimation the specific reasons for rejection;
iii. forward a copy of the credit information report relied upon for such decision; and
iv. also provide the name and address of the credit information company which had provided the credit information report to the borrower or client, as the case may be'
 
The Moneylife Foundation report also highlights the need to spread awareness about credit information reports and credit scores. It says, "There is very poor awareness about credit information reports and credit scores despite credit information companies having existed for 16 years. A massive awareness campaign is urgently required, especially in the light of the Prime Minister's all-out effort at financial inclusion. Otherwise, new borrowers and users of the overdraft offered on these schemes will once again be excluded from the formal financial system soon after the hard work of including them. Easy access to formal credit at reasonable interest rates is also imperative for India's progress."
 
Here is the report submitted by Moneylife Foundation to the RBI Governor...
 

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COMMENTS

Balasubramaniam K

5 months ago

I remember an interview on a TV channel about 3 years back, where one of the CIBIL top executives said that any defaults remain only for 7 years in their records. Thanks to Moneylife for highlighting this discrepancy.

Roy Aranha

6 months ago

the appeal is very correct i was just quering i may be wrong that the defaulter companies also be barred from their shares being traded no expansion till all liabilities are settled and that investor isssues are resolved fully could the investigation be extended to teh stock exchanges too , accountability of the promoters thank you these are my humble suggestions

ATANU DE

6 months ago

Unathorised credit enquiry may be curbed by use of OTP, which the enquirer has to obtain from the prospect and key-in to enquire.

ATANU DE

6 months ago

Unathorised credit enquiry may be curbed by use of OTP, which the enquirer has to obtain from the prospect and key-in to enquire.

Mukesh Khathuria

6 months ago

Appreciate Moneylife efforts for taking up the issue with RBI. This was long awaited and lot needs to be done to improve functioning /rating system of CIBIL as far as individual borrowers are concerned. Based on my experience, I can vouch that CIBIL has still rated most of the genuine borrowers with good payment track record on the lower side of credit history. At times, I also felt that there is a nexus between CIBIL and Debt doctors especially CIBIL and Credit Sudhar. I have received numerous offers from Credit sudhar for improving my credit rating on payment of fee. I have various meetings with Bankers and most of the Bankers have also admitted that CIBIL rating system for individual borrowers is not reliable. If CIBIL does not improve its rating process for individual borrowers, in short term debt doctors (e.g. Credit Sudhar) will make money at the cost of genuine borrowers and in long term CIBIL will lose its credibility amongst bankers as far as personal finance is concerned for individual borrowers.

SuchindranathAiyerS

6 months ago

This is long overdue. I was debited with renewal fee on a cancelled Standard Chartered Gold Card when I had shifted to Nairobi from Bangalore. Interest was added on it. The debt collector came and badgered my father who, without consulting me, settled. On my return, the Bank began t badger me again. I took the documents and threatened to take them to court. They gave me a letter confirming that I owed them nothing. Years later, I was refused a Credit Card by HSBC with whom I had banked for decades. Luckily, as a former banker, I used my contacts to get a copy of my credit report. I took it to Standard Chartered and told them that if they do not issue a letter to HSBC forthwith, I shall take them to court. They delivered. But think of the stress and trauma for my father who was in his eighties at the time, and the humiliation for me. What happens to somebody without the contacts to get a copy of the credit report to threaten the puisine Bank that behaves like a an Indian High Court that will set aside the Indian Penal Code to favour the scum of the Earth, secure in the knowledge that the Supreme Court will decline to uphold the Rule of law?

REPLY

Sucheta Dalal

In Reply to SuchindranathAiyerS 6 months ago

This is an extraordinary story. Thank you for sharing it here. We wish many others who have gone through such experiences would help Moneylife Foundation in its efforts to spread the word and help people FREE through our credit helpline. Strangely, people prefer to go to paid services, who falsely promise to get them off the CIBIL records. Some even end up paying Rs20,000+ for so-called credit repair.
We also feel rather angry that Corporate India does not give a damn about the ignorance of their employees.
Only yesterday, Yogesh Sapkale came across a horror story of someone who has been receiving notices, but does not even know what is a credit score.

We would love it if you evangalise this among senior corporate management and bankers to send people for FREE learning or counselling sessions or organise them in-house -- especially for call centre employees . Check out http://www.freecredithelp.in/

SUDHEER VAIDYA

In Reply to Sucheta Dalal 4 months ago

The 1% control the levers to the economy including the financial system /services. They are the ones who get to exploit the resources without let or hindrance. Reading someone like Noam Chomsky (who incidentally calls India a failed state) can be instructive in getting a perspective on the system. Just joined this conversation & appreciate the work Moneylife has set out to accomplish.

SuchindranathAiyerS

6 months ago

This is long overdue. I was debited with renewal fee on a cancelled Standard Chartered Gold Card when I had shifted to Nairobi from Bangalore. Interest was added on it. The debt collector came and badgered my father who, without consulting me, settled. On my return, the Bank began t badger me again. I took the documents and threatened to take them to court. They gave me a letter confirming that I owed them nothing. Years later, I was refused a Credit Card by HSBC with whom I had banked for decades. Luckily, as a former banker, I used my contacts to get a copy of my credit report. I took it to Standard Chartered and told them that if they do not issue a letter to HSBC forthwith, I shall take them to court. They delivered. But think of the stress and trauma for my father who was in his eighties at the time, and the humiliation for me. What happens to somebody without the contacts to get a copy of the credit report to threaten the puisine Bank that behaves like a an Indian High Court that will set aside the Indian Penal Code to favour the scum of the Earth, secure in the knowledge that the Supreme Court will decline to uphold the Rule of law?

ARJUN REDDY

6 months ago

Kudos to Moneylife Team,If Mr.Rajan is serious on this issue,lot of common people will be benefited from the misreporting by financial institutions,specially Shaha Finance/Standart Chartered fraud nexus which is indirectly supported by CIBIL is more threatening to the entire system.

HSBC to shut down 21 retail branches in India
HSBC on Thursday announced closure of its 21 retail branches in India to reshape its business around digital capabilities.
 
The decision was taken as a part of the strategic review of its retail banking and wealth management (RBWM) business in India, the company said in a statement. 
 
"The network will consolidate from 50 branches across 29 cities to 26 branches across 14 cities. This change reflects changes in customer behaviour, who are increasingly using digital channels for their banking," it said.
 
HSBC said that in the consolidation process, most of the staff will be re-deployed and absorbed in various other departments. 
 
The statement cited HSBC India group general manager and CEO Stuart P. Milne as saying that the move "aims to position our RBWM business for the future, with the right mix of digital versus physical branch distribution."
 
"India is a priority market for HSBC and we will continue to invest to achieve
sustainable growth by supporting the needs of our customers," it said.
 
"The consolidation of the branch network will take place over the coming months in a phased manner," it added.
 
The branches being consolidated account for less than 10% of HSBC’s retail customer base in India, the company said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

COMMENTS

Jitendra Parikh

6 months ago

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