Reserve bank of india

The RBI provided this facility to defer EMI payment but online fraudsters are active to cheat people amid the lockdown. They have adopted several ways to deceive people nowadays. In the name of avoiding the EMI payments, such fraudsters are trying to cheat people to siphon money from your bank account. … [Read more...] about EMI moratorium: Beware! Fraudsters may siphon money from your bank account

How has the lockdown affected your business?The lockdown is going to create a lot of new norms. We are all working from home and probably working much longer hours and more efficiently than before. So, the lockdown is going to have a lot of positives in terms of reducing a lot of unnecessary opex across the NBFC industry. The impact will be felt across all industries in the economy. The estimated GDP loss due to the lockdown is between Rs 4 lakh crores and Rs 8 lakh crore. It is a humongous sum. So it is going to be painful, especially for lenders who have lent to the affected segments. Liquidity will be tight, receivables are going to be extended. Overall, times are brutal and it is that way for most NBFCs in the country. The Reserve Bank of India has given a moratorium that does not apply to all. Do you think the true picture on NPAs and other things will emerge only after three months when you will be able to figure out who has got cash, who can’t pay and who will struggle … [Read more...] about Liquidity problem should not turn into a solvency issue: Abhimanyu Munjal

New Delhi: The central government has allowed 28 states to cumulatively borrow up to Rs 3.2 lakh crore from the open market in the first nine months of this fiscal year. This means the states could borrow the total amount in April itself if required, to meet their expenses related to the Covid-19 outbreak. In a letter dated March 23, the finance ministry asked the Reserve Bank of India to make the necessary arrangements in consultation with the states to raise up to 50% of their net borrowing ceiling for fiscal 2021. Maharashtra has been allowed to borrow Rs 46,182 crore and Tamil Nadu, up to Rs 28,880 crore. West Bengal can borrow up to Rs 20,362 crore, Rajasthan up to Rs 16,387 crore and Punjab as much as Rs 9,098 crore. The decision has come at a time when the states are facing a sharp decline in tax revenue owing to the lockdown. While the RBI has increased the ways and means advances to states by 30%, the finance ministry has released Rs 17,287.08 crore in revenue-deficit … [Read more...] about 28 states cleared to borrow up to Rs 3.2L crore

Middle-class people like him in Mumbai, he says, have had to face many troubled times. “During wars, we had a scarcity of rations. Restaurants would be closed in the financial capital swarmed by people. Even marriages would have only 25 people attending. The worst was our wardrobe — it hardly contained two or three pairs of pants and shirts. We had to wash our clothes every day, so that we would have something to wear for the next day,” recalls Venkatanathan. … [Read more...] about Silent Generation and Baby Boomers recall surviving through disease outbreaks and wars

Mumbai: Non-banking finance companies (NBFCs) are on the edge with commercial paper worth ₹1.6 lakh crore and nonconvertible debentures (NCDs) worth ₹87,000 crore coming up for redemption by June as cash flows dwindle and banks play hardball on extending credit. Small and medium-sized NBFCs are most at risk due to the disruption caused by the Covid-19 outbreak. Large lenders will be able to tap RBI’s Rs 1 lakh crore targeted longer term refinancing operations (TLTRO) window but others are likely to face a crunch. “A lot of players will want to conserve liquidity, so we may see top-rated ones raising new money to pay back old (debt). So obviously, the mid-sized ones will be the biggest hit because they may have to dip into reserves to pay back these liabilities,” said Nachiket Naik, head, corporate lending, Kirloskar Capital. “Banks are the ones subscribing to fresh capital raises but with the TLTRO window capped at Rs 1 lakh crore, it looks … [Read more...] about NBFCs face challenges of debt repayment, cash shortage