Agriculture in India is wholly dependent on nature. Crop insurance scheme has been implemented to protect the farmers from perils of nature. The Central Govt. has announced a new format of Crop Insurance in name of "Pradhan Mantri Fasal Bima Yojana (PMFBY)", to be implemented … [Read more...] about PRADHAN MANTRI FASAL BIMA YOJANA (PMFBY)
POSITIVE PAY SYSTEM FOR CHEQUE PAYMENT
To provide customers safety in cheque payments and reduce instances of fraud occurring on account of tampering of cheque leaves, RBI introduces a mechanism of Positive Pay for all cheques of value ₹50,000 and above. RBI Governor Shakti Kanta Das has announced of the same on 6 … [Read more...] about POSITIVE PAY SYSTEM FOR CHEQUE PAYMENT
Income Recognition, Asset Classification (IRAC) and Provisioning Norms
In line with the international practices and as per the recommendations made by the Committee on the Financial System (Chairman Shri M. Narasimham), the Reserve Bank of India has introduced, in a phased manner, prudential norms for income recognition, asset classification and … [Read more...] about Income Recognition, Asset Classification (IRAC) and Provisioning Norms
NON-COOPERATIVE BORROWERS
The issue of Non-Performing Assets (NPAs) in the Indian banking sector has become the subject of much discussion and scrutiny. When the borrower stops paying interest or principal on a loan, the lender institutions will lose money. Such a loan is known as Non-Performing Asset … [Read more...] about NON-COOPERATIVE BORROWERS
WILFUL DEFAULTERS
A wilful defaulter is an entity or a person that has not paid the loan back despite the ability to repay it. The RBI has been initiating every effort to ensure that wilful default should not adversely affect the health of the banking system. The Reserve Bank of India (RBI) is in … [Read more...] about WILFUL DEFAULTERS