Page 8 - Banking Finance October 2023

RBI CORNER

Reserve Bank

News

RBI to withdraw I-CRR by 50. There might have been some dis- Personal loans refer to loans given to
appointment in the market but it was individuals and include consumer
Oct 7 in phased manner mostly along the expectations, with credit, education loan, loans given for

RBI said it would discontinue the incre- the big relief that liquidity would come creation or enhancement of immov-
mental cash reserve ratio (I-CRR) re- back to the system before the onset of able assets (such as housing), and loans
quirement imposed on banks and re- the festival season," said Prasanna given for investment in financial assets
turn the impounded funds in phases Patankar, managing director, STCI Pri- like shares and debentures. The new
ahead of the festival season when the mary Dealer Ltd. directives will be applicable to all these
demand for cash rises. "The RBI normally prefers to keep li- loan categories.
Out of the total I-CRR maintained, 25 quidity in the neutral zone and any-
per cent will be disbursed on Septem- thing beyond that they try to stabilise RBI launches portal
ber 9, another 25 per cent on Septem- it," he added. Udgam for unclaimed de-
ber 23, and the remaining on October posit search
7. It was estimated that around Rs. 1 RBI to banks: Give prop-
trillion worth of liquidity was impounded erty papers back within 30 RBI has launched a centralised web
due to the I- CRR requirement. portal aimed at simplifying the search
days of loan closure for unclaimed deposits across banks.
The central bank in a statement said RBI directed banks and other lenders, SBI, Punjab National Bank, Central
the decision was taken based on an as- Bank, DBS Bank, South Indian Bank,
including non-banking financial compa-
sessment of current and evolving li- nies (NBFCs), housing finance compa- and Dhanlaxmi Bank have provided
quidity conditions so that the "liquid- nies and cooperative banks, to release their data to the portal. Other banks
ity in the system is not subjected to all original movable or immovable are expected to join by October 15, an
sudden shocks and money markets property documents within 30 days of RBI statement said.
function in an orderly manner". full repayment or settlement of per- Customers can register on 'Udgam'
During the August review of the mon- sonal loans by borrowers. (Unclaimed deposits - gateway to ac-
etary policy, the RBI mandated all In case of delay, the lenders will have cess information) platform using their
scheduled banks to maintain an I-CRR to compensate the borrowers by pay- mobile number. Once registered, they
of 10 per cent on the increase in their ing Rs 5,000 for each day of delay, the can search for unclaimed deposits un-
net demand and time liabilities (NDTL) RBI said. The directions, released as der their name and provide additional
between May 19 and July 28, with ef- part of responsible lending conduct, inputs such as PAN, voter ID, driving li-
fect from August 12. will be applicable to all cases where cence and passport number.
"It was largely along the expected release of original property documents Customers can then retrieve their de-
lines as the market was expecting it to is due on or after December 1 this posits by completing a KYC process
be rolled back in two tranches of 50- year. with their branch. In case the deposit-

8 | 2023 | OCTOBER | BANKING FINANCE