Finance Minister Arun Jaitley on Tuesday called for time bound implementation of the Insolvency and Bankruptcy Code. “Immediate action is required on the key requirements for implementation of the Code including setting-up of Insolvency and Bankruptcy Board of India (IBBI) and notifying rules for insolvency professionals, insolvency professional agencies and corporate insolvency,” he said at a meeting to review its progress. To promote ease of doing business by faster resolution of insolvency, the government is hoping to implement the Code at the earliest. The Code, which was approved by Parliament in May, provides for time bound resolution of financial distress and bankruptcy of companies and individuals..
The board understanding is that more than the budgeted amount of Rs.25,000 crore may be needed for recapitalisation of public sector banks in the current fiscal ending March, Reserve Bank of India Deputy Governor SS Mundra said on Tuesday. As the present situation is concerned, I think most of the banks are adequately capitalised to take care of minimum regulatory requirements. We will keep a watch . As we move into the year, We will see how things pan out. The board sense is that there could be more than Rs.25,000 crore for capital requirements for banks, Mundra said on the sidelines of an industry body event.
The Reserve Bank of India is reviewing the definition of bank branches to enable smaller, technology-leveraged operations to be treated as branches, two senior Industry sources told Cogencis. The aim is to help banks to contain costs and have more viable operations in unbanked areas, the sources said. The central bank has received suggestions from banks and the Indian Banks’ Association on reviewing norms on branch operations and hiring for positions in farflung areas instead of the current thrust on brick-and –mortar model.Last week, RBI Governor Raghuram Rajan had said an internal panel was studying whether the current definition of a branch needed to be revisited in the wake of availability of new technologies, such that financial inclusion requirements are met without any dilution.
Reserve Bank of India Deputy Governor S. S. Mundra said the pace of formation of new non-performing assets (NPAs) or bad loans has decelerated although some banks have posted losses for the first quarter of the current financial year due to higher provisioning. He also said most of the banks are adequately capitalised and the government has promised additional capital if they require. As far as bad loans are concerned, he said, they are showing a mixed trend. There are other banks…still they are in middle of it and they would need to do some work before they get out of it,” he said.
In its efforts to clamp down on black money, the government is actively considering the Special Investigation Team’s (SIT) recommendation of banning cash transactions over Rs 3 lakh, Rani Singh Nair, chairperson, CBDT said on Tuesday. It had also recommended that the permission of the area tax commissioner would be required if someone was holding cash above Rs 15 lakh. “These recommendations have come. It (banning cash transactions over Rs 3 lakh) is under examination,” said Nair. Sources in the department added that the matter will be put forward for the approval of Finance Minister Arun Jaitley before it is notified. The SIT, headed by Justice M B Shah (retired), last month, submitted its fifth report to the Supreme Court on steps needed to curb black money.
Ujjivan Financial Services which recently received an approval from the Reserve Bank of India (RBI) to set up a ‘Small Finance’ bank (SFB), has adopted CRMNEXT’s integrated ‘Assisted Bank-in-a-Box Edition’ thereby commencing implementation of a new-age digital banking solution. “As we get set to launch our banking operations, customer engagement and satisfaction is our top priority. And we wanted to take-off quickly. We chose CRMNEXT’s Assisted Bank-in-a-Box solution because of synergies in the product’s offerings and our vision. Ujjivan will be focusing highly on mobility solutions and will implement mobile technology using mobiles and handheld devices to reach the rural customers,” said Ittira Davis, COO & Head of Transition, Ujjivan Financial Services