Category:

Banking & Bancassurance

Will RBI joining NGFS help in climate finance?

The 22nd Financial Stability Report (FSR22) of the RBI had, about the “climate-related risk” that the value of financial assets/liabilities could be affected either by continuation in climate change (physical risks), or by an adjustment towards a low-carbon economy (transition risks). The manifestation of physical risks could lead to a sharp fall in asset prices and increase in uncertainty, it said.

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Indian bankers face legal risks as court rulings threaten over $6 billion in loans

Two rulings by India’s Supreme Court that threaten the repayment of loans totalling nearly Rs 50,000 crore ($6.73 billion) to some of India’s largest banks
Any failure to recoup the money adds to stress in the banking sector, which is already dealing with an increased level of bad loans and reduced profits because of the impact of the pandemic.

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PSU general insurers’ employees observe strike to protest proposed privatisation

The one-day strike against the passage of the General Insurance Business (Nationalisation) Amendment Bill 2021 in the Lok Sabha was successful across the country, General Insurance Employees All India Association’s General Secretary K Govindan claimed.

About 52,000 employees and officers across all four PSGI companies participated in the day-long strike, he added.

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RBI’s new rules on interchange fee, 24/7 bulk clearing facility functional

National Automated Clearing House (NACH) has been made available on all days of the week, effective August 1, 2021.

NACH, a bulk payment system operated by the National Payments Corporation of India (NPCI) facilitates one-to-many credit transfers such as payment of dividend, interest, salary and pension.

It also facilitates collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds and insurance premium.

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Global banks show tantalising signs of stability: S&P

S&P said its base case is that the global banking sector will continue to slowly stabilise as the economic rebound gains momentum and as support is gradually withdrawn. Should a re-intensification of risks occur, this will require more support from public authorities for the real economy.For 11 of the top 20 banking jurisdictions, S&P estimates that a return to pre-Covid-19 levels of financial strength will not occur until 2023 or beyond. For the other nine, it estimates that recovery may occur by year-end 2022.

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Lok Sabha passes Factoring Regulation Amendment Bill

The statement of objects and reasons of the bill state that an increase in the availability of working capital may lead to growth in the business of the micro, small and medium enterprises sector and also boost employment in the country.

The bill seeks to amend the definitions of “assignment”, “factoring business” and “receivables”, so as to bring them in consonance with international definitions and also to insert a new definition of “Trade Receivables Discounting System” .

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