Repo Rate vs MSF

News About Repo Rate vs MSF

• Mapusa Urban Bank will now accept utility payments but only in cash

  The Mapusa Urban Co-operative Bank of Goa (MUCB) has received approval from the Reserve Bank of India (RBI) to accept payments for water and electricity bills from its customers. However, the payments can only be made in cash as the robust restrictions on the bank by the RBI remain effective. The cash received by the bank will be deposited to another bank and the amount will then be transferred to the respective departments. The bank has also been permitted by the RBI to transfer around Rs.32 lakh paid by consumers for water and electricity bills in the previous month to the PWD and the electricity department.

  The RBI had previously put some restrictions on the transfer of money to the above-mentioned departments due to which the payments of the customers were pending. The curb on the bank to accept deposits or lend to customers was imposed when the RBI found the cash reserve ratio of the bank to be negative.

  

  25 September 2018

• Bank books of 200 NPA accounts examined by RBI during annual inspection

  The Reserve Bank of India has examined 200 NPA accounts dating back to 2011 during its annual inspection of bank books. The RBI is looking into classificiations, debt and provisions restructuring, repayment history and a lot of other things to ensure that all of them have correctly followed the procedure. The Reserve Bank of India has asked for more details from banks to know more regarding the provision of some big stressed accounts. This move comes weeks before the August 27 deadline before which lenders will have to finalise debt resolutions for loans of more than Rs.2,000 crore. If the Reserve Bank of India finds any irregularities, the accounts will be referred to National Company Law Tribunal for bankruptcy resolution.

  

  17 August 2018

• Registered sale agreement mandatory to seek interest on home delays

  A registered sale agreement is now a necessity for a home buyer if they wish to get interest for any delays made by the real estate developer. This is according to the Maharashtra Real Estate Regulatory Authority (MahaRERA). This ruling will be very significant to investors and home buyers who are still relying on the letter of allotment even though they pay a lot of money to the developer. They still do not enter into an agreement to delay the payment of goods and service tax, stamp duty and other such charges. This verdict was delivered after a complaint filed by two home buyers against a construction firm in Mumbai. The home buyers said that even after making a payment of a substantial amount, the developer did not deliver the possession to them on the date promised by the developer. They were hopeful that the respondent is directed to the register and an agreement for sale is executed so that they can receive interest for the delay in handing over of possession. The rate of interest to paid here will be 2% more than State Bank of India’s marginal cost of lending rate. This is significant rule to keep in mind for aspiring house owners as they are still relying mainly on the letter of allotment while not entering into a registered agreement.

  

  26 July 2018

• RBI hikes repo rate after 4.5 years

  The monetary policy committee(MPC) of the Reserve Bank of India decided to increase the repo rate to 6.25% from the existing 6%. The MPC unanimously agreed to the decision after the increase in the international crude oil prices. This is the first price hike in more than 4 years, with the last hike taking place in January 2014. Many of the major lenders like ICICI Bank, State Bank of India, and Punjab National Bank have raised their lending rates as a result of this increase in the repo rate.

  

  7 June 2018