The lending landscape in India is undergoing a change with the spread of digitisation and the advent of fintechs. In the past, banks were hobbled by the lack of infrastructure and costs involved in expanding their geographic footprint into the hinterland. But fintechs and advancements in technology enabled banks to extend their reach without significant inflation in fixed costs.
The move will help reduce the burden of compliance on the regulated entities based on the recommendations of the Regulations Review Authority (RRA 2.0) and an Internal Working Group of RBI.
More banks, contrary to expectations, are busy building brick-and-mortar presence across the country for access to something that has defined banking since it began: Deposits.
Banks had been pressing for immunity from arbitrary arrest or action by investigating agencies against their top executives for taking commercial decisions such as grant of loans, but there has been little headway on this demand so far.
Banks will bundle housing loans with rooftop solar installations to boost solar energy usage. The government's PM Surya Ghar Muft Bijli Yojana will be supported through standalone products. Banks will link with the National Portal for Rooftop Solar to provide real-time data access. Prime Minister Narendra Modi announced the launch of the new rooftop solar scheme.
Banks will bundle housing loans with rooftop solar installations to boost solar energy usage. The government's PM Surya Ghar Muft Bijli Yojana will be supported through standalone products. Banks will link with the National Portal for Rooftop Solar to provide real-time data access. Prime Minister Narendra Modi announced the launch of the new rooftop solar scheme.
The Reserve Bank's instructions on review of fixed remuneration for non-executive directors (NEDs) come into force immediately. The instructions apply to all private sector banks, small finance banks, payment banks, and wholly owned subsidiaries of foreign banks.
At present, each lender has its own format, which leads to data variation, an issue flagged by the banking regulator, leading to a rise in cases of customers facing denial of loan or reduction in credit limit. "We are working on a common format," said a bank executive familiar with the development.
Today, such exposures are not reported by banks, no risk weight is assigned to the credit, the facilities are not rated, and in a predominant number of cases no interest is charged by banks on these intra-day overdrafts.
Many banks have approached the Ram Mandir Trust for opening its bank accounts, given the donations and payments for various events at the temple. The upcoming consecration of the Shri Ram Janmabhoomi Mandir at Ayodhya has thrown open huge business opportunities for banks and financial services firms.
"Banks have individually communicated with the RBI after the liquidity deficit widened significantly at the end of December. The money market rates had shot up, making it more expensive for borrowers to raise funds in debt capital markets," a source aware of the developments said.
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