MONEY & BANKING


Moneylife Digital Team 16 August 2019
The Reserve Bank of India (RBI) has finally responded to customers being wrongly fleeced by banks and clarified that transactions that have failed due to technical reasons, or when there is no cash withdrawals at automated teller machine (ATM) cannot be counted as valid and bank cannot charge...

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It is now four years since the National Democratic Alliance government announced a package of reforms to make the public sector banks (PSBs) efficient and healthy.   After the Gyan Sangam, a conclave of top executives of the PSBs, the Reserve bank of India (RBI) officials and the...

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Moneylife Digital Team 16 August 2019
Liquidity risk is increasing for Indian-based real-estate developers, as non-bank financial institutions (NBFIs) including housing finance companies are shying away from lending to the sector, says a research note    In the report, Fitch Ratings says, "Developers that rely on...

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Moneylife Digital Team 16 August 2019
Risks in India's banking sector may rise as a result of the Reserve Bank of India (RBI)'s recent steps encouraging banks to lend more to non-bank financial institutions (NBFIs) and retail borrowers, says a report.   In the research note, Fitch Ratings says, "These initiatives are...

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Moneylife Digital Team 13 August 2019
Debt-ridden Adlabs Entertainment Ltd, promoted by Bollywood producer, director Manmohan Shetty, is apparently under the hammer of creditors. Lenders led by the Union Bank of India, have invited expression of interest (EOI) to recover more than Rs1,200 crore by selling the company properties....

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The failure of the credit rating agencies to blow the whistle in the Rs90,000 crore Infrastructure Leasing & Financial Services (IL&FS) scam,  business as usual despite 55 prosecutions filed by the ministry of corporate affairs (MCA)  against Pricewaterhousecoopers (PwC) auditors, the STC/...

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Moneylife Digital Team 08 August 2019
With every rate cut, the media tell you that your home loans and other loans have become cheaper. This, alert borrowers is, a lie. Banks do not reduce the rates in tune with policy rates. And this lie will continue, thanks to Reserve Bank of India’s (RBI's) policy of junking the...

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IANS 08 August 2019
The State Bank of India (SBI), the country's largest lender by assets, here on Wednesday cut the benchmark lending rates by 15 basis points (bps) across tenors, shortly after the Reserve Bank of India (RBI) slashed interest rates by a larger-than-expected 35 bps to boost the...

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IANS 08 August 2019
The Punjab National Bank (PNB) has recovered Rs 278.66 crore as penalty in the financial year 2018-19 from the poor account holders for not maintaining the minimum balance.   This was revealed after an RTI activist in Madhya Pradesh's Neemuch district, Chandrashekhar Gaur sought...

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IANS 07 August 2019
In a bid to boost demand and growth, the RBI's Monetary Policy Committee (MPC) on Wednesday announced 35 bps cut in repo rate, which eventually is expected to be transmitted to retail loans. However, a look at the recent past shows that rate cuts by the central bank are transmitted further to...

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Moneylife Digital Team 07 August 2019
The Reserve Bank of India (RBI) on Wednesday reduced its repo rate (short-term lending) by 35 basis points (bps) to 5.40% in its third bi-monthly monetary policy review for 2019-20.   Following the move, the reverse repo rate (short-term borrowing) stands at 5.15%. Subsequently, the...

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IANS 06 August 2019
In the matter of the company's resolution plan, mortgage lender Dewan Housing Finance Corporation Ltd (DHFL) on Tuesday sought a moratorium on repayment of its dues, also saying, however, that the lenders will not have to take haircuts on the principal amount of their loans.   A...

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Moneylife Digital Team 06 August 2019
The Reserve Bank of India (RBI) imposed monetary penalty on 11 banks for non-compliance with provisions of “Frauds classification and reporting by commercial banks and select financial institutions (FIs)”. Public sector banks (PSBs), such as State Bank of India (SBI), Punjab National Bank...

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Moneylife Digital Team 02 August 2019
Updated on 8 August 2019 at 4.37pm to include response from ICICI Bank.   In June, the Reserve Bank of India (RBI) directed banks not to levy any charges for transactions processed in the real time gross settlement system (RTGS) and national electronic funds transfer (NEFT) systems in...

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Updated on 8 August 2019 at 3.30pm to include response from Charles Russell Speechlys LLP   When Pramod Mittal was arrested in Bosnia on 24th July, it hardly caused a ripple in India, except to note that he is the younger brother of global steel magnate Lakshmi N Mittal. Although he...

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Moneylife Digital Team 01 August 2019
Indiabulls Housing Finance Ltd has shared voluntarily its sources of equity funds since inception and details of all investors to quell rumours about its funding.   According to the statement, between 2000 and 2015 Indiabulls has received Rs8,583.60 crore as investment from over 150...

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Moneylife Digital Team 30 July 2019
If we want to improve the governance process, we have to place ethics at the centre. Ethics and values should be the bases on which all corporates, and more particularly, banks dealing with public resources should function as trustees. It is the attitude to life and the value system one has...

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The Supreme Court on Tuesday held that Section 143A of the Negotiable Instruments (NI) Act on payment of interim compensation to complainant during the pendency of the case will have no retrospective application.   Section 143A was inserted in NI Act in September 2018 to reduce the...

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SUBHASH NARAYAN (IANS) 29 July 2019
Financial indiscipline is expected to put a burden of over Rs 3,500 crore on four state power distribution companies of Uttar Pradesh, Karnataka, Telangana and Tamil Nadu as these would now have to offer bank guarantee of that amount to the generators or face disruption in power supplies from...

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The operating environment for India's banks will be stable but economic slowdown poses challenges to the sector, a Moody's Investors Service report said on Monday.   According to the report - the India banking system outlook - the country's economic growth will remain weaker than in...

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