The RBI reports said that the Reserve Bank of India has imposed a monetary penalty of Rs.1.00 lakh (Rupees one lakh only) on the Dahod Urban Co-operative Bank Limited, Dahod, in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) for… Read More »
A recent press report said that the Reserve Bank of India has imposed a monetary penalty of Rs.1.00 lakh (Rupees one lakh only) on Pragati Sahakari Bank Limited, Vadodara, in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) for violations… Read More »
A recent press report said that the Reserve Bank of India has imposed a monetary penalty of Rs.5.00 lakh (Rupees five lakh only) on the Jagruti Co-operative Bank Limited, Belgaum, Karnataka, in exercise of powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS)… Read More »
A recent press report said that the Reserve Bank of India has imposed a monetary penalty of Rs.5.00 lakh (Rupees five lakh only) on The Pioneer Urban Co-operative Bank Ltd., Belgaum, Karnataka, in exercise of powers vested in it under the provisions of Section 47A(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949… Read More »
A recent press report said that the Government has appointed Mr. Harun Rashid Khan as Deputy Governor of Reserve Bank of India. Mr. Harun Rashid Khan fills the vacancy of superannuation of Ms. Shyamala Gopinath. The central bank traditionally has four Deputy Governors, with two of them being from the RBI and the other two… Read More »
According to a recent press report, the central bank of the country, the RBI, has announced that for each branch proposed to be opened in Tier 3 to Tier 6 centres of under-banked districts of under-banked States, a bank will get authorization to open a branch in a Tier 1 or Tier 2 centre. The… Read More »
Recent press reports said that the Reserve Bank has posted a discussion paper on savings bank rate deregulation on its Web site, and has asked the public for feedback. Reports said that this act of the RBI was not surprising because when it tried deregulating in 1985, it forgot to tell even the Banking Secretary.… Read More »
RBI has recommended that the BPLR system be replaced by a base rate system below which no lending can be done. This recommendation comes in the backdrop of the BPLR system failing to achieve what it was originally intended for – transparency in lending rates charged by banks. The report submitted by the working group… Read More »
The evolution of the BPLR can be traced back to September 1990 when the first attempt to rationalize the administered lending rate structure was made by removing multiplicity and complexity of interest rates. According to this structure, the advances of scheduled commercial banks were divided into six slabs and progressively higher interest rates were prescribed… Read More »
All loans given after 01 April 2010 will be calculated as Lending rate =Base rate + X. The variable X will be based on parameters fixed by the banks which could include Operating costs, duration of loan, risks involved etc. This would also include charges relating to specific borrowers.