Page 11 - Banking Finance May 2023

RBI CORNER

"Bringing the NDF markets to the In- their repayment obligations to the
Attention Subscribers
ternational Financial Services Area is a lender even when they have the capac-
welcome move as we may see more ity to honour the said obligations. "This Please renew your Subscription of The
realistic forward rates for the rupee (higher willful default number) has Insurance Times Journal to receive
against most currencies," said Abizer nothing to do with the present. This is copy of the journal uninterruptedly.
Diwanji, head--financial services, EY all a catch up of the past. So, it is not You can now pay by GPAY, Phonepe,
India. for the defaults but it is the default of Paytm, Amazon, ICICI Pay, BHIM UPI
the past and where recovery and insol-
Indian banks operating units in the In-
vency actions are still going on," said
ternational Financial Services Centre
an official of a bank.
were permitted to transact in rupee
NDDCs with non-residents and with
RBI issues draft norms
each other with effect from June 1,
2020. RBI issued draft guidelines on penal
charges levied by lenders, bringing
them under the strict preview of regu-
Bad loans down, though
latory instructions issued by it.
willful default accounts

shoot up Centralised portal Pravaah
RBI has reported a sharp decline in to be launched
gross non-performing assets (NPAs), or
Reserve Bank of India will launch a
bad loans, in the banking system in the
secured web-based centralised portal
last two years, but willful defaults have
named 'PRAVAAH' (Platform for Regu-
shot up with more legacy loan accounts
latory Application, Validation And
now getting added to the willful de-
AutHorisation) to simplify and stream-
fault category.
line application processes.
There has been a rise of 38.50 per
The portal will show time limits for
cent, or Rs 94,000 crore, in willful de-
deciding on the applications/approvals
faults in the last two years, reflecting
sought. This measure will bring greater
the gaps in loan appraisals and risk Sashi Publications Easy Payment
efficiencies into regulatory processes
management in the banking sector. Modes :-
and facilitate ease of doing business for
i) UPI ID: SASHIBOOKS@KOTAK
There were 15,778 willful default ac- the regulated entities of RBI.
ii) GPAY: 9830171022@okbizaxis
counts involving an amount of Rs Gradually, it will be extended to all
iii) PAYTM: 9830171022@paytm
340,570 crore as of December 2022 as types of applications made to RBI
iv) NEFT: Current A/C
against 14,206 accounts involving Rs across all functions, the central bank
285,583 crore a year ago in December said in its statement on Developmen- 402120110000327 of 'SASHI
PUBLICATIONS PRIVATE
2021 and 12,911 accounts for Rs tal and Regulatory Policies.
LIMITED, Bank of India, VVK
245,888 crore in December 2020, ac-
The step has also been taken to com-
cording to Transunion Cibil, a credit Road Branch., Kolkata, India,
ply with the Union Budget 2023-24
information company registered with IFSC Code : BKID0004021
announcement regarding the need to
the RBI. v) Credit Card:
simplify, ease and reduce cost of com-
www.sashipublications.com
As per the Reserve Bank of India's (RBI) pliance by financial sector regulators
For any query please call
classification, a 'willful default' would within laid down time limits to decide
9073791022/9883398055
be deemed to have occurred if the the applications under various regula-
borrower has defaulted in meeting tions. www.sashipublications.com
BANKING FINANCE | MAY | 2023 | 11