- Current Affairs February 2019
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Banking, Finance, & Business
1 - IBA Issued advisory to Waive Off Various Charges for Kisan Credit Card
Indian Banking Association (IBA) has issued an advisory under which requested banks to waive off the processing, documentation, inspection and all other service charges especially for the Kisan Credit Card and crop loans up to Rs. 3 lakhs.
The Kisan Credit Card Scheme is destined to provide adequate and timely credit support from the banking system to the farmers. Such credit facility helps farmer to meet the short term credit requirements for cultivation of crops, investment credit requirements for agriculture and allied activities and other needs. Agriculture Ministry said that there are more than 21 crore small and marginal farmers in the country and providing them timely and affordable credit is the key to attaining comprehensive growth.
2 - Export Growth of India May Slow to 7% in 2019
As per the report released by Government of India, country’s export may slow down to 7.3% in the financial year 2018-19. Last financial year, i.e. for 2017-2018, the growth rate was 9.8%. The growth rate likely to decrease because of poor growth of traditional exports including gems and jewelry, marine, farm and engineering.
However, amidst slow growth rate, the favorable growth projections come with the assumption that investments will grow at 6.7 % in 2019-20. Besides, the investment rate, as represented by the gross fixed capital formation, stood at 7.6% in 2017-18, which has grown from a low of 1.6% in 2013-14.
3 - RBI Increased Limit on Collateral Free Agriculture Loans from 1 Lakh to 1.6 Lakhs
Reserve Bank of India (RBI) has announced a good news for the farmers by increasing the limit on collateral free agriculture loans to 1.6 lakhs. Until the such limit was 1 lakh. The objective is to boost the liquidity in the farming sector giving special attention to small and marginal farmers.
As per the report, RBI’s move will increase the coverage of small and marginal farmers in the formal credit system. Besides, RBI also planned to set up an internal working group to review agricultural credit to address issues like regional disparity, etc. Besides, to cover maximum number of farmers under the scheme of KCC (with banks’ support), government has also decided to launch a campaign.
4 - RBI Fined Rs. 1 Crore on SBI
Reserve Bank of India has slapped Rs. 1 Crore penalty on State Bank of India (SBI), for violating the norms. As per the Section 47 A of the Banking Regulation Act, 1949, RBI has imposed the penalty of Rupees one crore on the bank for not monitoring the end use of funds in respect of one of its borrowers.
State Bank of India is the largest public sector bank of the country.
5 - RBI Fined Rs. 3.5 Crore on Allahabad Bank & Corp Bank for Violating Norms
Reserve Bank of India (RBI), on the course of taking strict action against the rules violators, a cumulative penalty worth of Rs. 3.5 Crore imposed on Corporation Bank and Allahabad Bank. In its report, Corporation Bank told that they violated various norms such as not monitoring the end use of funds and exchange of information with other banks in case of a borrower.
On the other hand, Allahabad Bank also reported that RBI has imposed a penalty of Rs. 1.5 Crore for not monitoring end use of funds.
6 - Allahabad Bank, Corp Bank Out of PCA Framework: RBI
The Board for Financial Supervision (BFS) of the Reserve Bank of India has taken action against two public sector banks namely Allahabad Bank and Corporation Bank and one private sector bank namely Dhanlaxmi Bank and removed them from Prompt Corrective Action (PCA) framework.
Such exclusion decision has been taken based on the principles adopted by the BFS in its earlier meeting taken place on 31 January. However, three banks namely Bank of India, Bank of Maharashtra, and Oriental Bank of Commerce are allowed in existing PCA framework.