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…

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…

Banks in India are reeling from the overhang of bad loans on their books across both the public and private sector. After a prolonged period of stress, which saw the gross non-performing assets (GNPA) of scheduled commercial banks rising drastically.…

GARNISHEE ORDER A Garnishee Order is an order issued by court under provisions of Order 21, Rule 46 of the Code of Civil Procedure, 1908. The concept of 'Garnishment' has been introduced in civil procedure code by the amendment Act,…

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…

Your CIBIL Score is an evaluation of your credit history for determination of your loan eligibility. With many applicants looking for a loan, banks were increasingly finding it difficult to carry out intensive background checks regarding the credit-worthiness of the…

Micro, Small & Medium Enterprises (MSME) is the pillar of economic growth of India. MSME has played a prominent role in the development of the country in terms of creating employment opportunities- MSMEs contribute 29 per cent to India's gross…

Government of India, Ministry of Housing and Urban Poverty Alleviation has restructured the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY) and launched the NULM w.e.f. 24.09.2013. Scheme is operative in all districts headquarters irrespective is population and all cities with…

Government of India launched Swarnjayanti Gram Swarozgar Yojana (SGSY) scheme after restructuring the Integrated Rural Development Programme (IRDP) from April 1, 1999 in the rural area of the country. SGSY was effective up to 31st March 2013. The Ministry of…

Internet banking has become one of the fastest and easiest way of banking. Information security issue is the most important one in using Internet and it becomes more crucial while implementing the Internet in banking sectors. This research revealed a…

PMEGP is a new MSME Scheme of Govt. of India by merging REGP and PMRY scheme launched on 04-04-2008. State Khadi & V.I. Board and District Industries Centre of State Government have also been associated in implementation of the programme.…

Ministry of Housing and Urban Affairs, Government of India has come out with Scheme "PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi)" aimed for financing to street vendors to make them self-reliant and come out of distress situation due to COVID-19…

The concept of ‘Priority sector lending’ focuses on the idea of directing the lending of the banks towards few specified sectors and activities in the economy. The term ‘priority sector’ indicates those activities which have national importance and have been…

MSME is the pillar of economic growth in many developed and developing countries in the world. Though India is still facing infrastructural problems, lack of proper market linkages, and challenges in terms of flow of institutional credit, it has seen…

The Consumer Protection Act has been enacted for the purpose of providing timely and effective administration and settlement of consumer disputes and related matters. The Government instead of bringing an amendment in the 1986 Act, enacted a new Act altogether…

For the improvement of customer service in banking industry, RBI has provided a platform to customer for redressal of banking related dispute. RBI notified the Banking Ombudsman Scheme 2006 u/s 35 A of Banking Regulation Act 1949. The scheme came…

Pradhan Mantri Awas Yojana (PMAY) is a mission started with an aim ‘Housing For All’ (HFA) scheme by NDA Government to be achieved by the year 2022, that is when India will be completing its 75 years of Independence. The…

INTRODUCTION To consolidate framework of rules and regulations on Housing Finance issued by RBI Master Circular DBR.No.DIR.BC.13/08.12.001/2015-16 dated July 1, 2015. In pursuance of National Housing Policy of Central Government, Reserve Bank of India has been facilitating the flow of…

The basic objective of the Right to Information Act is to empower the citizens, to promote transparency and accountability in the working of the Government, and public authority. The act helps to mitigate the corruption, and to enhance people’s participation…

KCC scheme was first introduced during the year 1998 for farmers on the basis of their holdings by the banks for purchase of agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs. The scheme was…

VIGILANCE FUNCTION IN BANKS The dictionary defines Vigilance as being watchful and cautious to detect danger, being ever awake and alert. While being vigilant is important in all walks of life, the observance of vigilance becomes more critical in the…

Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch. In its place an electronic image of the cheque is transmitted…

Reserve Bank of India (RBI) Governor Shaktikanta Das today announced a second tranche of liquidity boost for the economy. The announcements covered four key points: A 25 basis point reverse repo cut taking it to 3.75 per cent from 4 per…

Relationship between a banker and customer comes into existence when the banker agrees to open an account in the name of customer.  The relationship between a banker and a customer depends on the activities, products or services provided by bank…

Nomination is the right conferred upon the holder of a bank account to appoint one or more persons who will be entitled to receive monies upon the death of the account holder. In the event of death of an account…

RBI has issued a Master Circular on Customer Service in Banks on July 1, 2015. RBI explained the Settlement of claims in respect of deceased depositors in bank. As per the circular, RBI has simplified the procedure the settlement process…

RBI constituted committee on Procedures and Performance Audit of Public Services in November 2003, under the chairmanship of Shri S. S. Tarapore (former Dy. Governor) to address the issues relating to availability of adequate banking services to the common man.…

  The Bank is committed to following fair practices especially with regard to collection and recovery of its dues from its borrowers (hereinafter referred to as "customer"). At the same time the Bank is also committed to follow fair practices…

Bank is an important service sector organisation. Customers play the most significant part in bank. Customer is the one who uses the banking products and services and judges the quality of those products and services. Banking relationship is a contract…

Lending is an important activity of banking industry. Bank invests public deposit in the form of lending and earns profit. Quality of the advances indicates bank’s image in the market. A banker should have a thorough knowledge of the requirement…