Monetary Policy Committee (MPC) at its meeting today (August 6, 2020) decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. Consequently, the reverse repo rate under the LAF remains unchanged at 3.35 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 4.25 per cent.
The instructions on opening of current accounts by banks have been reviewed and the revised instructions are as under: i. No bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactions shall be routed through the CC/OD account.
Under the extant guidelines, loans sanctioned by banks against pledge of gold ornaments and jewellery should not exceed 75 per cent of the value of gold ornaments and jewellery.
Investment in debt mutual fund/ETF for which full constituent debt details are available shall attract general market risk charge of 9 per cent, as hitherto. Specific risk capital charge for various kinds of exposures would be applied as detailed below:
Existing loans to MSMEs classified as ‘standard’ may be restructured without a downgrade in the asset classification, subject to the following conditions: i. The aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrower does not exceed ₹25 crore as on March 1, 2020.
The economic fallout on account of the Covid-19 pandemic has led to significant financial stress for borrowers across the board. The resultant stress can potentially impact the long-term viability of many firms, otherwise having a good track record under the existing promoters, due to their debt burden becoming disproportionate relative to their cash flow generation abilities.
Introduction:- In era of competition every client is looking for complete solution with perfection under one roof. Job work is very common between manufacturer in India. The manufacturing entities instead of carrying out entire operations themselves, outsource few processes to job workers to get the job done faster and more efficient manner. Job work sector […]
While filing an annual return (GSTR-9) under GST, numerous taxpayers find mismatch in ITC as per auto populated details in annual return and the data available in their GSTR-2A, which results in preparation of lot of reconciliation reports by the professionals in order to arrive at a figure shown in Table 8A. But if all […]
The registered office of an Limited Liability Partnership (LLP) is the official address of the principal place of business of the entity for all the official communications and notice. Further, it is mandatory for an LLP to maintain books of accounts at its registered office. There might be a situation when the LLP intends to […]
Particularly for Indian citizens who are accustomed to hearing sad news or depressing articles from foreign writers, the present governor of RBI gave a heart-warming speech indicating the right direction for the Indian economy. Myself being a born optimist with decades of living in India is very happy to cover his speech with my observations […]
