Credit Delivery Mechanism and Other Banking Services
(1) Consequent upon announcements made in the Union Budgets for the years 2007-08 and 2008-09, public sector banks, RRBs and rural co-operative banks advised to grant interest rate subvention of 2 per cent per annum to farmers in respect of short-term production credit up to Rupees three lakh.
(2) Reserve Bank to provide a sum of Rs 25,000 crore as the first instalment under the Agricultural Debt waiver and Debt Relief Scheme 2008 as temporary liquidity support under Section 17(3-B) and Section 17(4-E) of the RBI Act to scheduled banks and the NABARD, respectively, till November 3, 2008.
(3) All-in-cost ceiling for trade credit less than 3 years enhanced to 6 months LIBOR plus 200 basis points.
(4) Detailed guidelines to banks on rehabilitation of potentially viable sick SME units to be issued by end-November 2008.
(5) RRBs to be allowed greater flexibility in opening new branches as long as they are making operational profits and their financials are improving.
(6) Feedback to be given to banks to make the process of financial inclusion more effective.
(7) Recommendations of the Special Task Force to give a fresh impetus for setting up of banking facilities at additional centres in the North-Eastern region are under implementation.
(8) A Model Scheme for Financial Literacy and Credit Counselling Centres to be notified.
(9) Report of High Level Committee constituted to review the Lead Bank Scheme and improve its effectiveness to be submitted by December 2008.
(10) Study on Courier/Postage charges levied by banks for collection of outstation cheques and for sending statements/cheque books to customers to be placed on Reserve Bank's website.
Image: RBI Governor Duvvuri Subbarao (C) walks with officials as he arrives at The Reserve Bank of India (RBI) headquarters in Mumbai. | Photograph: Indranil Mukherjee/AFP/Getty Images
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