Page 6 - Banking Finance November 2021

BANK UPDATE

gust 18. The country's largest private customer and also updates industry by 6.7 per cent and deposits by 9.32
bank said that it is targeting to data to prevents such borrowers from per cent.
issue five lakh credit cards every month indulging in similar practices with other
to regain the ground it had lost during banks, NBFCs & financial institutions. IMPS limit raised to Rs.
an eight month ban. The private 5Lakhfrom Rs. 2Lakh
lender also announced the launch of Emergency credit scheme
RBI has raised the transaction limit in
three new cards, including till March 2022 Immediate Payment Service (IMPS)
one that was targeted at young adults The government extended the validity from Rs 2 lakh to Rs 5 lakh. IMPS of-
without much credit history. The three of the Emergency Credit Line Guaran- fers instant domestic funds transfer
new tee Scheme (ECLGS) until March, the facility 24×7 through banking channels.
launches are HDFC Bank's Millennia, sixth such extension, while further ex- "In view of the importance of the IMPS
MoneyBack+ and Freedom cards. panding its scope. system and for enhanced consumer
convenience, it is proposed to increase
HDFC Bank's group head (payments & The government had initially budgeted
consumer finance, digital banking & IT) for Rs 3 lakh crore of funding through the per transaction limit from Rs two
Parag Rao said that the growth in digi- the scheme, which was announced to lakh to Rs five lakh," the RBI said.
tal payments reflected the extent of help small businesses tide over a liquid-
under-penetration of credit cards in ity squeeze after the national lockdown ADB cuts GDP forecast for
India, which was a "fantastic opportu- in 2020. But the limit was enhanced to FY22 to 10%
nity". "We expect the number of credit Rs 4.5 lakh crore earlier this year. The Asian Development Bank (ADB)
cards in India to soon cross 10 crores," Some of the associations representing has revised downwards India's eco-
he said. MSMEs are, however, demanding that nomic growth forecast for the current
the scheme should be open-ended. The fiscal, 2021-22 (FY22) to 10 per cent.
No fee refund for fraud finance ministry said that so far Rs Earlier this was projected at 11 per

loan applications: HDFC 2.86 lakh crore has been sanctioned cent. The Manila-based multilateral
using the backstop facility with 95% of funding agency ADB has predicted the
Bank the guarantees used for lending to GDP growth for fiscal 2022-23 (FY23)
HDFC Bank has said that as a practice micro, small and medium enterprises to 7.5 per cent.
it levies processing fees on customers (MSMEs).
The growth forecast for India in the
attempting to avail loans with discrep-
ant or suspect documents. However, it Bank credit up 6.6%, de- fiscal year 2021 (ending in March 2022)
has denied reports that these cases was revised down, as the spike in
are not reported on the bank's fraud posits up 9.34% for fort- COVID-19 cases during May dented
reporting system. night ended 24 Sep the recovery, the Asian Development
Bank (ADB).
"The bank does not waive the process- Bank credit rose by 6.67 per cent to Rs
ing costs from customers who come 109.57 lakh crore and deposits by 9.34 DICGC to pay depositors
forward in such discrepant/suspicious per cent to Rs 155.95 lakh crore in the
cases. The processing fee is charged fortnight ended September 24, 2021, of 21 banks
towards defraying the cost of efforts of RBI data showed. In the year-ago fort- Deposit Insurance and Credit Guaran-
the bank for additional due diligence night ended September 25, 2020, bank tee Corporation (DICGC) has an-
and verification and not for closing the credit stood at Rs 102.72 lakh crore nounced that it will pay up to Rs Five
cases," HDFC Bank said. and deposits at Rs 142.62 lakh crore, lakh to depositors of 21 co-operative
Responding to reports that frauds are according to RBI's Scheduled Banks' banks, including scam-hit Punjab and
not reported by the bank, the private Statement of Position in India as on Maharashtra Co-operative Bank, to-
lender said that in all cases, the bank September 24, 2021 data, released. wards settlement of deposit insurance
updates its internal database to pre- In the previous fortnight ended Sep- claim.
vent any future application from the tember 10, 2021, bank credit had risen When the RBI sacked the board of

6 | 2021 | NOVEMBER | BANKING FINANCE