 The Reserve Bank of India (RBI) has set up an expert committee under veteran banker KV Kamath to suggest financial parameters for resolution of Covid-19 related stressed assets. The committee will submit its recommendations to the RBI, which will notify them along with modifications, in 30 days. The other members of the committee will be Diwakar Gupta, T N Manoharan and Ashvin Parekh will be strategy advisor and the Indian Banks’ Association CEO will function as member secretary of the panel. |
 The Karur Vysya Bank (KVB) has entered into a partnership with Star Health and Allied Insurance Co to provide a wide range of health insurance options to its customers. Under the agreement, all the health insurance products of Star Health & Allied Insurance will be made available through all 780 branches of the Karur Vysya Bank. This agreement helps the bank to provide cost-effective insurance products and quick settlement of claims its customers. |
 YES Bank has launched a digital solution, “Loan in Seconds” for instant disbursement of retail loans. The account holders identified by the bank can avail this quick loan disbursal facility without any document. The solution aims to provide customers, completely paperless and hassle-free loans to help them meet their immediate financial needs. Eligible customers under ‘Loan in Seconds’ will receive communication from the bank with the link to apply for the loan. |
 Government of India will bring an ordinance to put all cooperative banks under the Reserve Bank of India supervision. This decision was announced by Union information and broadcasting minister Prakash Javadekar. Now 1,482 urban cooperative banks and 58 multi-state cooperative banks came under the supervisory powers of the Reserve Bank of India. The RBI’s powers as they apply to the scheduled banks will also apply to cooperative banks. This decision will give an assurance to more than 86 million depositors in these banks that their money amounting to Rs 4.84 trillion will stay safe. |
 The Karnataka Bank has rolled out a new product titled “KBL Micro Mitra” for the Micro entrepreneurs. Under the newly launched product, the Micro manufacturing and service enterprises will be offered a financial assistance of up to Rs 10 lakhs. This financial assistance would be provided either for working capital or for investment purposes. The financial assistance facility comes with a simplified procedure and competitive rate of interest. KBL Micro Mitra would be available for the Micro entrepreneurs across India through all the branches of Karnataka Bank. This will ensure timely credit assistance to the micro entrepreneurs who are playing an instrumental role in the recovery of the economy both in rural and urban India. |
 In order to boost Infrastructure projects across all the sectors at a time of a global pandemic, several decisions were taken by the Union Cabinet under the chairmanship of Prime Minister of India Narendra Modi on 24th June 2020. |
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 The Reserve Bank of India has enhanced the withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Limited, Mumbai to Rs 1 Lakh per depositor. The withdrawal limit was earlier set at Rs 50,000. According to RBI, with the enhancement of the withdrawal limit, more than 84% of the depositors of the bank will be able to withdraw their entire account balance. RBI placed the PMC bank under All-Inclusive Directions under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949 with effect from close of business on 23rd September 2019, in the interest of depositor protection. These directives were applicable till June 22, 2020. But, due to lockdown on account of COVID-19 pandemic the resolution process of the bank was negatively affected. Hence, these directives has been extended by RBI for a further period of six months from June 23, 2020 to December 22, 2020 subject to review. |
 India’s 3rd largest lender, Bank of Baroda will completely digitize its lending operations including home, agriculture, Micro, Small and Medium Enterprises(MSME), personal and auto loans. The bank has recently completed its merger with Vijaya Bank and Dena Bank. |
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About Bank of Baroda Digital Lending:
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 ICICI Home Finance Company Limited (HFC) has launched “SARAL” scheme for a special affordable house loan for urban and rural areas. The beneficiaries are women, lower, middle-income customers and economically weaker sections, with a maximum household income up to Rs 6 lakh per annum.
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 Fitch Ratings has retained India’s sovereign rating at the lowest investment grade of “BBB-“, while the rating agency has revised downward its rating outlook for India to negative from stable. Fitch has cited increasing risk to the India’s growth and debt outlook, as a reason for the above ratings. Fitch Ratings stated that the COVID-19 pandemic has significantly weakened India’s growth outlook for fiscal year 2021, simultaneously exposing the challenges associated with a high public-debt burden. Although, the rating agency expects India’s economic activity to contract by 5% in the fiscal year 2021 before rebounding by 9.5% in fiscal year 2022. |
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