RBI had earlier tightened the prudential norms to check excessive lending by NBFCs
The Punjab government has adopted the EBT model under which cash benefits to be disbursed to the beneficiaries would be directly transferred to their accounts
Chandigarh: The Punjab government has issued instructions to directly credit cash in the bank accounts of beneficiaries under various welfare schemes through Electronic Benefit Transfer (EBT) system to check delays and redtapism, reports PTI.
Informing this the state's Social Security and Health Minister Madan Mohan Mittal said the SAD-BJP alliance government in consultation with Reserve Bank of India has adopted the EBT model under which cash benefits to be disbursed to the beneficiaries would be directly transferred to their accounts.
Social Security Department had been giving cash benefits under various schemes like Shagun Scheme, Old Age Pension, Bebe Nanki Kanya Scheme and other financial assistance and it was felt that beneficiaries were facing problems due to late disbursal of amounts, cheques issued on wrong names or cheques issued after expiry of cheque, he said.
Chief Minister Parkash Singh Badal opined that late disbursal of financial assistance defeated the very purpose of such schemes and directed Finance and Institutional Finance Departments to coordinate with RBI and other banks for online credit of financial assistance, Mr Mittal said.
In order to promote housing for low income groups in major cities, the RBI asked urban cooperative banks to double the limit for home loans to Rs10 lakh
Mumbai: In a bid to promote housing for low income groups in major cities, Reserve Bank directed urban cooperative banks to double the limit for home loans to Rs10 lakh for consideration under priority sector lending, reports PTI.
As per the norms, assistance given to a non-governmental agency approved by the NHB (National Housing Bank) for refinance for construction or reconstruction of dwelling units or for slum clearance and rehabilitation of slum dwellers, subject to a ceiling of loan component of Rs5 lakh is classified as priority sector lending.
At present, RBI has hiked the ceiling to Rs10 lakh.
“Pursuant to the announcements made by the Union Finance Minister (in) the Budget Speech for the year 2012-13, it has been decided to increase the above limit from Rs5 lakh to Rs10 lakh,” RBI said in a circular.
RBI has already issued similar instructions to commercial banks and also regional rural banks.
Banks have to provide 40% of the total credit to the prescribed priority sectors including housing for weaker section.
Loans of such nature fall under indirect finance to housing sector as the final disbursement is done through NHB approved non-governmental agencies.