Page 12 - Banking Finance March 2025

ROUNDUP

strong preference for curd - popular as touch Rs. 1.60 lakh crore in 202526, up 202526, we anticipate this figure to
'tok doi' and 'mishti doi'. This plant will from the existing Rs. 1.27 lakh crore, surpass Rs. 30,000 crore," Singh said.
help cater to the growing demand in Defence Minister Rajnath Singh said. Adding to the growth figures, Secre-
the market," said Mehta. Addressing the media on the eve of tary of Defence Production Sanjeev
Amul is currently the largest fresh milk Aero India 2025, Singh highlighted that Kumar noted that the Ministry is
brand in Bengal, with sales of more defence exports have crossed a record streamlining export authorisations and
than 10 lakh litres of milk per day. The Rs. 21,000 crore this year, and by the other administrative processes to give
dairy major has a strong procurement end of 202526, it's likely to surpass Rs. a fillip to arms exports. He also stated
network in 14 districts of Bengal, with 30,000 crore. that the government's confidence in
more than 1.2 lakh women milk pro- The five-day long 16th edition of bien- meeting export targets stems from the
ducers associated with it. nial Aero India 2025 is taking place at ability of defence PSUs and private sec-
The new dairy plant will lead to further Yelahanka Indian Air Force station in tor which have been coming up with
quality products. Additionally, Indian
strengthening of the dairy cooperative Bengaluru, with participation expected
defence products are receiving good
movement in Bengal under the White from over 900 exhibitors, including
Revolution 2.0 initiative of the Union around 150 foreign exhibitors. reception globally, he added.
cooperation ministry, Amul officials "When it comes to defence manufac- In his address to media, Singh informed
said. turing, our domestic defence produc- that the government has taken a "re-

tion has surpassed a record Rs. 1.27 solve" to produce Advanced Medium
Defence production to lakh crore. By the end of 2025-26, we Combat Aircraft (AMCA) indigenously.
touch Rs. 1.6 lakh crore by expect this figure to exceed Rs. 1.60 The DRDO, which conceptualised and
lakh crore. Additionally, our defence developed the next generation air-
2025-26 exports have also crossed a record Rs. craft, will be displaying a prototype of
Defence production is expected to 21,000 crore, and by the end of the AMCA at Aero India 2025.

Govt plans law to ban unregulated lending

The Centre has circulated a draft legislation to ban lending by unregulated entities, including by platforms, with violators
facing imprisonment of up to seven years. Lenders, who harass and use unlawful means for recovery, face up to 10
years in jail, with those promoting such lending facing a term of up to five years.
The move comes amid several complaints of borrowers taking loans from digital lending platforms, including those
operated by Chinese entities, at exorbitant rates. And these platforms often harass customers by blackmailing them in
case of defaults. There have been instances of borrowers committing suicides due to harassment, prompting the Centre
and the regulator to step in.
The plan is to notify certain activities as "unregulated lending" with a "competent authority" tasked with regulating
the segment and also maintain a database on lenders. The authority headed by a secretary-rank officer will have powers
to provisionally attach the accounts of the lender and call for data. All information received by the agency will have to
be shared with CBI or state police.

Anyone, including banks and NBFCs, with information on unlawful lending has to alert authorities. Offences under the
proposed law will be cognizable and non-bailable, the draft said. The severest punishment is reserved for those who
harass borrowers - with jail term of three to 10 years and fine can be between Rs 5 lakh and twice the loan amount.
Unregulated lenders face two-to-seven years in prison, with fine that can extended up to Rs 1 crore. Repeat offenders
can be sent to jail for up to 10 years and face penalty of up to Rs 50 crore. In case of companies, individuals who
conduct business will be held liable.
CBI will enjoy powers to search and seize without warrant. The draft, based on recommendations by a panel of RBI,
has been circulated by finance ministry for consultation bt stakeholders. (Source: The Times of India)

BANKING FINANCE | MARCH | 2025 | 11