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, Indian Economy, Uncategorized

The currency question

Livemint The recent agreement between the Government of India and the Reserve Bank of India to make inflation targeting the central bank’s prime focus has long way to go. This move represents an important structural shift in one of the two pillars of conventional macroeconomic policy (the other, of course, being fiscal policy). Background: Since… Continue reading The currency question

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

On-tap bank licences: 5 questions that linger

The Hindu Issue Questions being asked related to ‘on-tap’ bank licenses. Q.1) External committee needed? The RBI had said it would form a standing external advisory committee (SEAC) that will vet the applications after the initial screening is done by central bank staffers. The committee is to have a three-year term and will comprise eminent… Continue reading On-tap bank licences: 5 questions that linger

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

With 10 branches, first small finance bank kicks off operations

Jalandhar-based Capital Small Finance Bank Ltd, India’s first small finance bank, has commenced operations. The bank kicked off operations with ten branches. Capital Small Finance Bank has been set up by converting the erstwhile Capital Local Area Bank Ltd. It was one of the 10 applicants to be given in-principle approval for setting up SFBs… Continue reading With 10 branches, first small finance bank kicks off operations