Tides of 18.07.2015
1.
The Reserve Bank of India (RBI) has asked
banks to levy any late payment penalty on credit card customers, or report them
to credit information companies, only if the payment has been due for more than
three days.For banks, RBI said they can treat a credit card as non-preforming
asset if the 'minimum amount due' has not been paid within 90 days from the due
date.To bring in greater credit discipline as also to provide operational
flexibility to credit card issuers, RBI said the 'past due' status of a credit
card account for the purpose of asset classification would be reckoned from the
payment due date mentioned in the monthly credit card statement.
2. The RBI has permitted banks without ATM
network to issue debit cards in tie-up with a bank that has its own network as
it pushes for cashless transactions. Co-operative banks will also be allowed to
issue debit cards with a bigger bank as a sponsor."As a precursor to
moving towards a less-cash economy, it is necessary to inculcate the habit of
using electronic payment channels among bank customers," the central bank
said in a notification.
3.
In
order to facilitate exports, Authorised Dealer Category – I (AD Category –I)
banks have been permitted to provide ‘export factoring’ services to exporters
on ‘with recourse’ basis by entering into arrangements with overseas
institutions for this purpose without prior approval from the RBI subject to
compliance with guidelines issued by the Department of Banking Regulation in
this regard. This is based on the recommendation made by the Technical
Committee on Facilities and Services to the Exporters (Chairman: Shri G.
Padmanabhan),
4. The target for direct lending by banks to
agriculture under Priority Sector Norms has aimed to increase the flow of
credit directly to farmers. Direct lending to the most disadvantaged farmers,
the small and marginal farmers, has been around 6% of Adjusted Net Bank Credit
(or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is
higher). In an effort to increase direct lending to agriculture, the target for
direct lending to small and marginal farmers under the recently revised
Priority Sector Norms has been increased to 7% for 2015-16 and to 8% for
2016-17. Furthermore, a variety of corporate loans have been precluded from
getting direct lending status. This should ensure that overall direct lending
to agriculture, including medium and large farmers, will increase.
5. Mr.N.K.Sharma
VC of Hindusthan Lever will take over as Chairman of ICICI Bank Ltd w.e.f July
2015.
6.
Members of the Public
Accounts Committee of Parliament are not happy with the response of public sector
bank chiefs to their queries on the progress made in recovering the
non-performing assets (NPAs). As the panel was informed that public sector
banks are dealing with Rs.2.55-lakh crore of
NPAs or bad loans, which amount to 5.2 per cent of the total gross advances,
the members wanted quick action against the defaulters. Coal, steel, power and
infrastructure sectors contribute to a major chunk of the NPAs. The members
also wanted to know why the names and details of the owners, directors and
senior executives of defaulting companies are not publicised by the banks.
“They (the banks) are keen to publish the name of a poor farmer if he is unable
to pay his loan. But, why Vijay Mallya (owner of Kingfisher Airlines) is not
getting the same treatment,” asked a member. To this, the bankers said
publishing the names of corporate honchos may affect investor sentiment. The
members, however, were not ready to buy this argument.
