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Moneylife Digital Team 31 December 2024
Reserve Bank of India (RBI) has flagged increased stress in the microfinance sector, with rising delinquencies across all types of lenders and ticket sizes. While delinquency levels in consumer credit remained stable for banks and non-banking financial companies (NBFCs), rising impairment can...

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Moneylife Digital Team 27 December 2024
The Reserve Bank of India (RBI) has raised concerns about the growing risks associated with unsecured lending and private credit markets, urging heightened vigilance amidst a cooling credit growth environment. In its annual report on Trends and Progress of Banking in India 2023-24, RBI...

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India’s credit recovery legislations have been unmitigated failures. Until 1985, for credit recovery from non-performing assets (NPAs), the courts of law would take eons to dispose the recovery petitions. The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), which was the first...

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Moneylife Digital Team 29 November 2024
Holding State Bank of India (SBI) responsible for not personally informing the borrower about withdrawing free personal accident insurance cover, the national consumer disputes redressal commission (NCDRC) directed SBI to waive the home loan outstanding of Rs14.30 lakh and pay Rs75,000 as...

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Asset reconstruction companies (ARCs) were designed to clean up the banking sector by resolving non-performing assets (NPAs). Consequently, people outside the banking, finance and investment world had nothing to do with them nor had they heard much about them. A spate of defaults among realty...

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Debayan Roy (Bar  and   Bench) 18 November 2024
The Supreme Court on Monday sought a response from the Union government regarding the non-appointment of chairpersons in 11 Debt Recovery Tribunals (DRTs) across the country.   A Bench of Chief Justice of India (CJI) Sanjiv Khanna and Justice PV Sanjay Kumar issued notice on a plea...

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Moneylife Digital Team 23 October 2024
Regulatory streamlining of lending by the Reserve Bank of India (RBI) will impact gold loan disbursements during the transition phase and curb growth in the business, says a research note. Recently, RBI flagged certain irregular practices in the loan against gold jewellery space and asked...

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Moneylife Digital Team 21 October 2024
Giving a big relief to the wife and family of a deceased home loan borrower, the national consumer disputes redressal commission (NCDRC) directed SBI Life Insurance Co Ltd to pay the amount insured for the home loan to State Bank of India (SBI). The lender is directed to accept the payment as...

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Thomas Franco (CFA) 04 October 2024
In a recent interview with the press in the industrial town of South India, Coimbatore, Nirmala Sitharama, the Union Finance Minister clarified to Mr Sundarraman, a reporter from The Indian Express, that according to the bank’s data available to her (which she cross-checked on her tablet), 49.5...

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Moneylife Digital Team 01 October 2024
The Reserve Bank of India (RBI) says it has observed several irregular practices by gold loan businesses and has asked supervised entities (SEs), including non-banking finance companies (NBFCs), to review their policies and also undertake a portfolio review.   Recently, RBI reviewed the...

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Moneylife Digital Team 27 September 2024
In a significant development following Moneylife's report, Supreme Infrastructure India Limited (SIIL) has withdrawn its proposed preferential issue of equity shares and convertible warrants that had raised serious concerns about corporate governance and public fund management. Moneylife...

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Moneylife Digital Team 24 September 2024
Sharing a Moneylife report on X, Jairam Ramesh, Congress party's general secretary in-charge of communication has urged Reserve Bank of India (RBI) to step in and examine State Bank of India (SBI)'s decision to convert its outstanding debt into equity in Supreme Infrastructure India Ltd...

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Moneylife Digital Team 23 September 2024
In a move that has surprised corporate watchers, State Bank of India (SBI) will take a dual role in the debt restructuring of defaulter Supreme Infrastructure India Ltd (SIIL). This development marks an unprecedented step in India's corporate debt resolution landscape, as the country's largest...

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Moneylife Digital Team 26 August 2024
Reserve Bank of India (RBI) has imposed a penalty of Rs3.91 crore on two non-banking financial companies (NBFCs), Innofin Solutions Pvt Ltd and NDX P2P Pvt Ltd, for violating various rules and regulations set by the banking regulator.   Innofin Solutions, also known as LenDen Club and NDX...

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Moneylife Digital Team 08 August 2024
To make available accurate credit information to lenders as well as borrowers, Reserve Bank of India (RBI) has asked lenders to submit data to credit information companies (CICs) like CIBIL TransUnion, Experian or CRIF Highmark every fortnight or at shorter intervals. At present, lenders are...

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Moneylife Digital Team 05 August 2024
Gold loans outstanding of scheduled commercial banks (SCBs) jumped 25.66% or by Rs1.57 lakh crore to Rs7.73 lakh crore, while for non-banking finance companies (NBFCs), it increased 17.25% to Rs1.53 lakh crore, the Union government told the Lok Sabha.   In a written reply, Pankaj Chaudhary,...

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Anadi Tewari (Bar  and   Bench) 26 July 2024
The Supreme Court has decided to step in and explore ways to check on unlicenced money lending and aid hapless borrowers who fall prey such unregulated Shylockian money lenders (Raj Kumar Santoshi v. Prashant Malik). Shylockian refers to a hard-hearted moneylender.    Justices CT Ravikumar...

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Moneylife Digital Team 16 July 2024
The Reserve Bank of India (RBI), while revising its master directions on fraud risk management in the regulated entities (REs), directed lenders, including commercial banks, all India financial institutions, cooperative banks and non-banking finance companies (NBFCs),  including housing finance...

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Moneylife Digital Team 13 May 2024
Top executives of Reserve Bank of India (RBI) are scheduled to meet the top management of asset reconstruction companies (ARC) this week to discuss corporate governance and stressed-asset resolutions amid concerns of potential back-door entry by defaulting promoters, says a report from Economic...

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Moneylife Digital Team 29 April 2024
After coming across instances of lenders resorting to certain unfair practices in charging interest, Reserve Bank of India (RBI) has directed all regulated entities (REs) to review their practices regarding the mode of disbursal of loans, application of interest and other charges and take...

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