GS-1, Social Empowerment, Uncategorized

Provide loans to women SHGs at 7 per cent: RBI to banks

The Reserve Bank has asked banks to provide loans to women self-help groups (SHGs) at 7% per annum, as per the government’s revised guidelines for 2016-17. All women SHGs are eligible for interest subvention on credit up to Rs 3 lakh at 7% per annum under Deendayal Antyodaya Yojana-National Rural Livelihoods Mission. Details: As per… Continue reading Provide loans to women SHGs at 7 per cent: RBI to banks

Editorials, GS-3, Uncategorized

P2P lending: towards easy funding

Livemint Issue Analysis of the guidelines issued by the Reserve Bank of India (RBI) on peer-to-peer (P2P) lending. What is P2P lending? To bridge the gap of unavailability of proper formal credit, an aggressive breed of loan providers has emerged in India, called peer-to-peer (P2P) lending. The concept is not new—it is basically an individual,… Continue reading P2P lending: towards easy funding

Editorials, GS-3, Indian Economy, Uncategorized

Measuring Mudra’s success

Article Link Summary: Prime Minister Modi, in a recent interview, indicated that his focus was to create a third sector—the personal sector—other than farms and factories wherein a person turns into a job provider through entrepreneurship rather than a job-seeker in the other two sectors. This statement assumes significance as it has many policy implications… Continue reading Measuring Mudra’s success

GS-3, Indian Economy, Uncategorized

RBI for easier bank permits

As part of its plan to put universal bank licences ‘on tap’, the Reserve Bank of India has unveiled draft guidelines that could encourage big non-banking financial players to throw their hats in the banking ring. What is ‘on tap mechanism? The central bank has been opening the bank licence window only periodically. Under the… Continue reading RBI for easier bank permits

GS-3, Indian Economy, Uncategorized

Deepak Mohanty Committee on Financial Inclusion

The Reserve Bank of India (RBI) has released the Report on Medium-term Path on Financial Inclusion submitted by 14-member committee headed by RBI Executive Director Deepak Mohanty RBI had constituted the committee in July 2015 to examine the existing policy regarding financial inclusion and a five-year (medium term) action plan It was tasked to suggest… Continue reading Deepak Mohanty Committee on Financial Inclusion

GS-3, Indian Economy, Uncategorized

Pradhan Mantri Mudra Yojana: Funding the unfunded

Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of Government of India to enable a small enterprise come into the formal financial system and get affordable credit to run his/ her business. Who? Any Indian Citizen who has a business plan for a non-farm sector income generating activity Credit need? Less than Rs 10 lakh Possible Creditors? Banks,… Continue reading Pradhan Mantri Mudra Yojana: Funding the unfunded

Editorials, Uncategorized

From Plate to Plough: How to expand inclusion

Article Link Summary: Financial inclusion and financial literacy have been important policy goals for quite some time. Inclusion has been emphasized by various governments since independence. There is a long history of financial inclusion in India. For the present government, financial inclusion is an important policy pillar to ensure inclusive development. What is ‘Financial Inclusion’?… Continue reading From Plate to Plough: How to expand inclusion

GS-3, Indian Economy, Uncategorized

RBI panel for more financial inclusion steps

Deepak Mohanty Panel report on medium-term path on financial inclusion. The recommendations include * Banks have to make special efforts to step up account opening for females. Given the government’s emphasis on the welfare of the girl child, it suggested that the government can consider a welfare scheme—Sukanya Shiksha —that can be jointly funded by… Continue reading RBI panel for more financial inclusion steps