GJ Town India

Comprehensive steps for timely checking &     Early detection of financial frauds! Occurrence of frauds was enabled by laxity in the financial system, and the underlying causes have been systematically dealt with by the Government through comprehensive steps for reduction in occurrence of frauds, and their proactive checking and timely detection. The steps taken in this regard include, inter-alia, the following: 1. Government has issued “Framework for timely detection, reporting, investigation etc. relating to large value bank frauds” to Public Sector Banks (PSBs), for systemic and comprehensive checking of legacy stock of their non-performing assets (NPAs), which provides, inter-alia, that-2. all accounts exceeding Rs. 50 crore, if classified as NPAs, be examined by banks from the angle of possible fraud, and a report placed before the bank’s Committee for Review of NPAs on the findings of this investigation; 3. Examination be initiated for wilful default imme

The Outlook is Stable! India Ratings and Research (Ind-Ra) has affirmed Export-Import Bank of India’s (EXIM) Long-Term Issuer Rating at ‘IND AAA’. The Outlook is Stable. The instrument-wise rating action is as follows: Support from GoI: The affirmation reflects Ind-Ra’s expectation of a high probability of continued timely support to EXIM from the government of India (GoI). EXIM, which is wholly owned by the GoI, acts as an agent of the GoI by extending lines of credit to various economies (mostly developing) as per the GoI’s directives. The GoI appoints EXIM’s board of directors according to the statutes of the Export-Import Bank of India Act, 1981, under which the latter was established. EXIM’s board has representation from the ministries of finance, commerce and industry, and external affairs. Bank’s Export Facilitation Role: EXIM’s policy objectives include facilitating export credit and developing export-generation capabilities among Indian companies, thereb

Appropriate skilling of Banking resources is necessary! NITI Aayog co-hosted a conference on The Future of Indian Banking, with the Foundation for Economic Growth and Welfare (EGROW Foundation).   Dr. Rajiv Kumar, Vice Chairman, NITI Aayog, inaugurated the event. The conference aimed to increase and elevate the discourse on the banking sector in India, and help develop insights to inform the continued evolution of the Indian banking sector for optimally supporting the growing credit needs of the Indian economy.   Dr. Rajiv Kumar highlighted the tremendous progress made by the banking system in the past four years that provided a strong foundation for a long runway for expanding credit and supporting accelerating growth of India’s economy.   He indicated that there was still a lot of work to be done in improving the financial system and furthering reforms in the financial sector. The other key messages from the deliberations included, 1: Technology has become criti

Export Credit extended by Scheduled Commercial Banks has continued to reflect a steady increase. As per data compiled by the Reserve Bank of India (RBI), the Export Credit – Balance Outstanding in respect of all Scheduled Commercial Banks at the end of financial year 2016-17 & 2017-18 stood at Rs. 2,43,505 Crore and Rs. 2,43,890 Crore respectively. It declined marginally by 0.56% to Rs. 2,42,523 Crore in the First Quarter of Current Financial Year before registering an increase of 4.59% to Rs. 2,53,676 Crore in Second Quarter ending Sept. 30th, 2018. Federation of Indian Export Organisation (FIEO) has urged the Government to increase the flow of credit to Micro, Small & Medium Enterprise (MSME) exporters. Government has taken various steps in this regard. These, inter-alia, include raising interest equalization rate under Interest Equalisation Scheme (IES) from 3% to 5% for MSME exports. That including Merchant exporters under IES for Pre and Post Shipment Rupe

Authorised capital of EXIM Bank to grow 100% Government approves the recapitalization of EXIM Bank of India The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the recapitalization of EXIM Bank. The details are, i: Issuance of Recapitalization Bonds by Government of India to the tune of Rs.6,000 crore for capital infusion in Export Import Bank of India (Exim Bank). ii: The equity will be infused in two tranches of Rs. 4,500 crore in FY 2018-19 and Rs.1,500 crore in FY 2019-20 respectively. iii: The Cabinet also approved an increase in the authorized capital of Exim Bank from Rs. 10,000 crore to Rs. 20,000 crore. The recapitalisation bonds will be on the lines issued to Public Sector Banks. Major Impact is being expected that the Exim Bank is the principal export credit agency for India.               The infusion of capital into Exim Bank will enable it to augment capital adequacy and support Indian exports with enhanced ability.