Interest Waiver:'Common man's Diwali in your hands', SC Tells Govt
The Supreme Court on Wednesday told the Centre that the common man's Diwali is in the government's hands, as it sought implementation of the decision to waive interest-on-interest for loans up to Rs2 crore for eight categories.
 
The top court gave time till 2nd November to the Centre to update it on the issuance of circulars in this matter.
 
A bench, headed by Justice Ashok Bhushan and comprising Justices MR Shah and R Subhash Reddy told solicitor general Tushar Mehta, representing the Centre, that it does not require one month time to implement its decision on waiver of interest on interest on loans up to Rs2 crore.
 
"This is not fair on the part of the government," said Justice Bhushan, noting that the top court has given enough time to the government to act in the matter.
 
"When you have decided, then why it is taking time," he asked.
 
The bench insisted that the Centre should issue necessary orders based on its decision so that the common man can receive the benefits.
 
Justice Shah told Mr Mehta that the government should see the plight of the common man, as they know that Centre has taken a decision in their favour. "But they want some concrete result," he added.
 
Mr Mehta said the government has considered the plight of the common man and it does not gain anything by delaying its decision unnecessarily, but there are certain formalities which have to be completed.
 
To this, the bench said the government should have issued a circular to implement its decision. Mr Mehta replied that banks will waive interest on interest and then they will get reimbursement from the government in the eight categories of loans up to Rs2 crore.
 
"To implement this, we have to ensure banks give us proper format," he submitted.
 
Justice Bhushan said the court will hear the matter in November and then the Centre should inform it steps taken to implement its decision.
 
"We want order for circular for implementation of this decision," he said.
 
The bench reiterated that it welcomes the decision of the Centre, but the only thing is that it should be translated practically.
 
Justice Shah said that "the common man's Diwali is in the government's hands."
 
The top court has scheduled the matter for further hearing on 2nd November.
 
The government has agreed to waive compound interest on MSME and personal loans up to Rs2 crore during the moratorium.
 
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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    Securitisation Dives 80% during the First Half on Moratorium Blues: CRISIL
    Securitisation transactions plunged 80% to just over Rs20,000 crore by value in the first half of the current fiscal, following the COVID-19 pandemic and the moratorium on loan repayments allowed thereafter, says a note from ratings agency CRISIL, adding since September, however, number of originators and investors have increased.  
     
    In the report, CRISIL says, "September saw a rebound in transactions to about Rs10,000 crore as economic activity began clawing back. Overall volume, however, continues to be well below the levels seen in the past few years, when securitisation had become one of the preferred fund-raising tools for non-banking financial companies (NBFCs). Volume in the first half of fiscal 2018 was around Rs37,000 crore, which surged to about Rs 68,000 crore in the same period of fiscal 2019, and onwards to around Rs96,000 crore in the first half of fiscal 2020."  
     
    According to the ratings agency, NBFCs have had to increasingly take recourse to securitisation to raise funds after the default by a large financial institution in September 2018. Securitisation proceeds accounted for 26% of the disbursements done by the top-20 non-banks (13 NBFCs and seven microfinance institutions) in fiscal 2020. In fiscals 2019 and 2018, the numbers were 18% and 12%, respectively, it added.
     
    Krishnan Sitaraman, senior director at CRISIL Ratings says, “Disbursements by non-banks had declined sharply in the first half as business activity hard-braked. That also reduced the need for non-banks to access the securitisation market to churn assets. Investors also preferred to wait on the side lines, assessing the impact of moratorium on collection efficiency and credit behaviour, and awaiting clarity on improvement in borrower cash flows and economic activity. Further, in the interim, NBFCs were able to secure funds through alternate means such as targeted long-term repo operations and partial credit guarantee scheme.”
     
    According to the ratings agency, asset-backed securities constituted 70% of the overall securitised volume in the first half of this fiscal, which marked a 1,000-bps (basis points) growth on-year (see Chart 1 below). 
     
     
    The direct assignment (DA) route, being the most preferred mode for mortgage-backed securities, accounted for nearly two-thirds of all deals (see Chart 2 above). In terms of asset classes, commercial vehicle and gold loans comprised more than half of the transaction volume in the first half of this fiscal.
     
    Direct assignment transactions supported by partial credit guarantee of the government, saw renewed interest from banks in the past few months, accounting for nearly 12% of volumes.
     
    According to CRISIL, the number of active originators have increased in the past three months as portfolios under moratorium fell. "Consequently, interest of investors, too, picked up, as more data became available on borrower behaviour during the moratorium. Investors preferred to acquire loans given to borrowers who had not opted to avail of the moratorium from June to August," it says. 
     
    While private banks and insurers remained the main investors, as per the ratings agency, public sector banks and NBFCs also put money into some securitised pools. However, it says, mutual funds, major investors in recent years, have been largely inactive this fiscal.
     
    With containment measures beginning to be relaxed from June, economic activity is picking up and NBFCs have begun disbursement of loans—but on a limited scale—amid operational constraints.
     
    According to Rohit Inamdar, senior director at CRISIL Ratings, as more data becomes available on borrower behaviour at portfolio and pool levels, and if they point to predictable, and pre-pandemic-level, collection efficiencies, investor interest will increase. "The contours of the one-time restructuring likely for borrowers will determine the extent of the securitisation recovery in the near term,” he added.
     
    CRISIL says, the spread, intensity and duration of the pandemic and further lock-downs will also be monitorables.
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    Rajiv Bajaj says Don't Want My Child to Inherit an India Built on Hate: Report
    Rajiv Bajaj, managing director of Bajaj Auto Ltd has reportedly said that he do not want his children to inherit an India built on hate. He was commenting on his decision to stop advertising on TV channels involved in the television rating point (TRP) scam. 
     
    In an interview with Swati Chaturvedi of GulfNews the Bajaj Auto MD says, "“I have a friend, who I will not name because he will not like it, told me when I was upset about MS Dhoni’s daughter and the way Amitabh Bachchan was wished death on social media when he was suffering from COVID-19 that you can do something about this. Stop funding this hate. To me it is a wise decision because my child, my brother’s children can’t inherit an India and a society where such hate festers. It was a simple choice and I made it."
     
    “Dhoni, is a close friend and I was incredibly hurt when someone gave a rape threat to his five-year-old baby girl, who is part of my family. I said enough of this toxic hate. Bajaj Auto does not endorse hate mongering in society and a strong brand is the foundation on which you build a business,” Mr Bajaj told the portal.
     
    Bajaj Auto is the first corporate to withdraw advertising from three TV channels, which Mr Bajaj, terms as 'indulge in toxic hate mongering'.
     
    Justifying his decision to boycott the three TV channels, Mr Bajaj has reportedly said, "I strongly believe that a strong brand is a foundation on which you build a business. Purpose of strong base is to contribute to the society. Bajaj brand does not endorse toxicity and hate mongering in the society. Therefore, Bajaj as a brand has blacklisted three channels for advertising for some time."
     
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    COMMENTS

    priyankaniperpharma

    2 weeks ago

    Almost every one who takes loan from Bajaj finance hates .

    beaumind

    2 weeks ago

    Good initiative by Bajaj and Parle-G. Hope Indian corporates do themselves a favor and support honest journalism, not hate. I don't have much hope though given their silence in the last 6 years even as India is gradually losing whatever economic status it had.

    saharaaj

    2 weeks ago

    Indi awas not built on hate but refurbished and remodeled on hate by rulers

    s5rwav

    2 weeks ago

    As the ilk of Mr Anand Mahindra and Mr Mukesh Ambani and Mr Ratan Tata and Mr Uday Kotak and Mr Kumar Mangalam Birla Keep Mouth Shut at Rampant High Level Corruption and Unpardonable Heinous Crimes against Humanity, at least Mr Rahul Bajaj and Mr Rajiv Bajaj Speak their Minds. I am Babubhai Vaghela from Ahmedabad on Whatsapp Number 9409475783. Thanks....

    kunaldutt204

    2 weeks ago

    Rajiv - - - Rahul - - - - - XXXX

    A family close to Congress names his sons on the basis of Fake Gandhi names... Glad Rahul is unmarried... And they were saved to name that poor kid... Not because of hate but because of bootlicking Gandhis...your kids are safe...

    REPLY

    beaumind

    In Reply to kunaldutt204 2 weeks ago

    And I thought where are all the a****les.

    s5rwav

    In Reply to kunaldutt204 2 weeks ago

    ???

    psgchandel

    2 weeks ago

    I guess, Mr. Bajaj is trying to become another Amir Khan of India. I can see his obsession with current Govt may be due to some unwarranted business benefits which he will not like that. So, I urge Mr. Bajaj to sell his wonderful business to another businessman and participate in active politics. Coz, I will just considering him as a coward who attacks Govt in the name of business despite it's becoming evident that, they are more inclined towards Congress. Until then, despite being very good Indian brand, I no longer want to purchase their products.

    REPLY

    s5rwav

    In Reply to psgchandel 2 weeks ago

    ???

    khushkid

    2 weeks ago

    I think by giving publicity to his decision to boycott three tv channels for purposes of advertising Mr.Bajaj is also joining the Hate Campaign.It is his "hate" v/s."the hate of others". He is indirectly endorsing those channels who go out to promote an accused by arranging a special interview for the entity. It would be better to take a non-partisan view and ask for a correction of the entire system. Selective cure will not serve the purpose but increase divisions.

    mahesh.bhatt

    2 weeks ago

    Cricket is grand Politico Business Legal betting games so this is new normal Mahesh Bhatt

    Subray

    2 weeks ago

    Kudos to Mr Rajiv Bajaj on his action of blacklisting 3 channels. I hope that is just a beginning. Because I feel there are many more channels who also sensationalize and contribute.

    Is he willing to stop funding the main National parties, who are the chief perpetrators of this hate atmosphere.
    He may not be raring to do so.
    By and large, I feel only the economically marginalized sections of the society would react and agree to these hate mongering news.
    The normal layman and white collared community has no time to respond.

    swarke

    2 weeks ago

    100 chuhe maar ke billi hai ko chalee.
    His family had no issue with giving indians 3rd grade engineered product like scooter n rickshaw after making them wait for 10 years.
    These crooks have just exploited their proximity to then government after independence to ensure monopoly to manufacturer & dump lousy products for decades n decades.

    REPLY

    s5rwav

    In Reply to swarke 2 weeks ago

    ???

    Newme

    2 weeks ago

    How cruelly Bajaj Finance treats their loan defaulters.

    amitjainpc

    2 weeks ago

    What a fake man, just like his father... this is not the first time the man has spoken filth..

    i_sakarwala

    2 weeks ago

    Love you Mr Rajiv Bajaj....... You have proved that these fake nationalist who scream and shout on television are nothing but lusty sensationalist.
    You are the hope that we Indians still have in democracy. Truly HAMARA BAJAJ.

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