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Tag: banks

Banks may be given incentive to extend loans in backward areas: RBI Dy Guv MK Jain

Banks may be given incentive to extend loans in backward areas: RBI Dy Guv MK Jain

Finance
RBI Deputy Governor MK Jain on Wednesday made a case for incentivising banks to extend loans to poor in backward areas in a bid to promote financial inclusion. Speaking at an event organised by the National Bank for Agriculture and Rural Development (NABARD), Jain said despite impressive growth in formal agriculture granted, there are still several challenges which need to be tackled. Data on the average loan taken by agricultural households indicated that 72 per cent of the credit requirement was met by institutional sources and 28 per cent from non-institutional sources, he said quoting NABARD Financial Inclusion Survey Report 2016-17. Further, the analysis of state-wise flow of institutional agriculture credit has revealed uneven distribution of credit among states, compared to their co...
Banks Board Bureau recommends names for heading 3 state-owned banks

Banks Board Bureau recommends names for heading 3 state-owned banks

Finance
NEW DELHI: The Banks Board Bureau (BBB) has recommended names of Sanjiv Chadha, L V Prabhakar and Atanu Kumar Das for the post of managing director and chief executive officer (MD & CEO) of three state-owned lenders -- Bank of Baroda, Canara Bank and Bank of India. The selection was done by the BBB based on an interview held on Tuesday. The Bureau recommends the following candidates, in order of merit, for the position of the MD & CEO in Bank of Baroda, Canara Bank and Bank of India, BBB said in a statement. Besides, Bank of Maharashtra MD & CEO A S Rajeev and Karur Vyasa Bank MD & CEO P R Seshadri have also been kept in the reserve list, it said. Currently, Chadha is the MD & CEO of SBI Capital Markets, the merchant and investment banking arm of State Bank of India, wh...
From January, banks cannot charge you for online NEFT transactions

From January, banks cannot charge you for online NEFT transactions

Finance
From January 2020, banks can no longer charge savings bank account holders for online transactions in the NEFT system. The Reserve Bank of India (RBI) has now mandated banks to do this through a press release on Friday. In its press release, RBI stated that it is doing this to promote digital payments. In its July monetary policy review, RBI had decided to do away with charges for NEFT and RTGS transactions. However, it hadn’t set a date by when banks had to comply. In its July statement it had said, “In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems. Banks will be required, in turn, to pass these benefits to their customers.” In the press release issue
Banks to take 55% haircut on Coastal Energen’s debt of Rs 6,500 crore

Banks to take 55% haircut on Coastal Energen’s debt of Rs 6,500 crore

Finance
Mumbai: Banks have agreed for a one-time settlement for Tamil Nadu-based Coastal Energen, which owes creditors Rs 6,500 crore. Lenders have agreed to sell the company’s debt at a 55% haircut to a consortium comprising Hong Kong’s alternative investment fund SSG Capital and the distressed debt unit of Deutsche Bank, two people involved in the negotiations said. A 55% haircut works out to an upfront cash payment of Rs 2,925 crore, which the lenders will receive in lieu of their debt. They have also been offered a 15% equity in the firm, which could give them an upside in the future, said one of the persons quoted above. “The equity value is approximately Rs 200 crore, which we will get through issuance of fresh shares to banks. We expect this resolution plan to be completed either by the end
‘Banks can’t recover money lost in fraud from customer’

‘Banks can’t recover money lost in fraud from customer’

Finance
KOCHI: Banks cannot ask a customer to repay money lost through online fraud using its powers under SARFAESI Act as it is a disputed transaction, the high court has held. Banks would have to approach a civil court to recover the money from the persons responsible, the court said. After referring to two rulings by the Supreme Court and a ruling by the high court that banks are liable for unauthorized withdrawals, Justice A Muhamed Mustaque said in the judgment, “Thus, it is clear that the bank cannot claim any amount from the customer when a transaction is shown to be a ‘disputed transaction’. The bank can recover from the customers only when it can unequivocally prove that the customer was responsible for such transaction, independently through the civil court. The RBI guidelines is a clear