The Reserve Bank of India has issued a draft circular proposing the framework for aggregation of loan products by lending service providers (LSPs) in order to ensure complete transparency for borrowers in the credit intermediation process.
The central bank said it has observed that many LSPs -- and regulated entities (RE) acting as LSPs -- offer aggregation services for loan products through outsourcing arrangements with several lenders. Herein, the Digital Lending App/ Platform (DLA) of the LSP/RE matches the borrower to one of the lenders.
As per the proposed norms, regulated entities will need to ensure that LSPs provide a digital view of all the loan offers available as per the borrowers’ requirements, from all willing and partner LSPs. While the LSP may adopt any mechanism to ascertain the willingness of the lenders to offer a loan, it shall follow a consistent approach which has been disclosed on website.
RBI came out with guidelines for the voluntary conversion of small finance banks into universal banks. The “Guidelines for ‘on-tap’ Licensing of SFBs in Private Sector”, dated December 5, 2019, provide a transition path for SFBs to become universal banks. To be eligible for conversion into a universal bank, the RBI stipulates that only listed SFBs will qualify.
Those intending to convert must have a minimum net worth of Rs 1,000 crore. Also, the SFBs must have a scheduled status and a satisfactory track record of at least five years with a gross non-performing asset (NPA) of 3 per cent or less and a net NPA of 1 per cent or less in the past two financial years.
These instructions are issued under Section 22 (1) of the Banking Regulation Act, 1949. SFBs must have reported a net profit in the past two financial years and met the prescribed capital adequacy norms. The RBI requires SFBs to provide a detailed rationale for their desire to convert into universal bank. Those with a diversified loan portfolio will be preferred.
The application for transition from SFB to universal bank shall be assessed in accordance with the Guidelines for ‘on tap’ Licensing of Universal Banks in the Private Sector dated August 1, 2016, as applicable, and RBI (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Directions, 2023, dated January 16, 2023, as amended from time to time.
RBI kept the investment limit by Foreign Portfolio Investors in government securities unchanged at 6 percent of the outstanding securities stocks for 2024-25. Moreover, the central bank, in a statement, announced that it would maintain the FPI limits for investment in state government securities and corporate bonds at 2% and 15%, respectively, of the outstanding securities.
The allocation of incremental changes in the g-sec limit over the two sub-categories – ‘General’ and ‘Long-term’ – shall be retained at 50:50 for 2024-25. Further, the aggregate limit of the notional amount of Credit Default Swaps sold by FPIs shall be 5 percent of the outstanding stock of corporate bonds. Accordingly, an additional limit of Rs 2,54,500 crore has been set.
Consultancy major Deloitte raised its India GDP growth forecast for FY24 to 7.6-7.8% from its earlier forecast of 6.9-7.2%, anticipating higher consumption expenditure and economic activity. The company said it expects India’s GDP growth to be around 6.6% in FY25 and 6.75% in FY26.
Deloitte's upward revision comes after several other entities including the IMF, World Bank, Asian Development Bank and S&P Global raised their forecasts for India’s GDP growth in FY24. High growth numbers in the quarter caused India's National Statistical Office to raise its GDP growth estimate for FY24 from 7.3% in its first forecast to 7.6% in its second.
On April 29, 1971, the International Labour Organisation adopted the Occupational Safety and Health Convention. In 2003, the International Labour Organisation announced that April 28 will be observed as World Day for Safety and Health at Work. The theme for this year's World Day for Safety and Health at Work is - Climate change and safety and health at work.
Hitachi Payment Services, one of leading names in payments and commerce solutions, announced the launch of the "country’s first upgradable ATM." The company said that the upgradable ATM can be transformed into a high-performance cash recycling machine at any point in time. "Manufactured under the Make in India initiative, these new upgradable ATMs provide more flexibility.
The upgradable ATM will allow banks to safeguard their investment and expand their services to include cash deposit facilities at offsite locations later, based on their business needs and local market conditions.
Yakshagana thespian Subrahmanya Dhareshwar (67), who had earned the fame of 'Bhagavata Shrestha' for his scintillating voice, passed away. A Karnataka Rajyotsava awardee, Dhareshwara was a professional ‘bhagavatha’ in Yakshagana melas (touring performing troupes) like Amrutheswari, Hiremahalingeshwara, Panchalinga and Perdoor.
Subrahmanya Dhareshwar had served 46 years in the field of Yakshagana, a unique dance form from coastal Karnataka, which involves distinct singing, dancing and drama style that has resemblance with the Theyyam art form of neighbouring Kerala.
A team of three astronauts launched aboard a rocket as part of China's Shenzhou-18 mission, heading towards the Tiangong space station in low earth orbit, according to Chinese space authorities.
This marks the most recent mission in Beijing's space programme, which is working towards sending astronauts to the Moon by 2030.
The Shenzhou-18 spacecraft, also known as the "Divine vessel," along with its three passengers, launched atop a Long March-2F rocket from the Jiuquan Satellite Launch Centre in northwest China.
Economic think-tank National Institute of Public Finance and Policy (NIPFP) said it has estimated India's GDP growth at 7.1 per cent for the current fiscal, using high-frequency models. The economic think tank said that in 2023-24, states' capex growth is robust due to significant capex transfers from the Centre.
While the Asian Development Bank (ADB) and Fitch Ratings have estimated India's growth at 7 per cent, the International Monetary Fund (IMF), S&P Global Ratings and Morgan Stanley projected a 6.8 per cent growth rate for FY25.
The Indian Air Force (IAF) has achieved a significant milestone with the successful test firing of an air-launched ballistic missile capable of hitting targets over 250 kilometers away. The missile, known as ROCKS or Crystal Maze 2, is of Israeli origin and was test-fired from a Su-30 MKI fighter jet in the Andaman and Nicobar Islands.
The Crystal Maze 2 is an extended stand-off range air-to-surface missile designed to strike high-value stationary and relocatable targets, including long-range radars and air defense systems. It is specifically effective in GPS-denied environments, similar to the conditions faced by India during the Kargil War, and can also penetrate areas protected by air defense systems.
