Priority Sector Lending classification to the fresh credit extended by Small Finance Banks to registered NBFC-MFIs
RBI allows Priority Sector Lending classification to the fresh credit extended by Small Finance Banks to registered NBFC-MFIs and other MFIs (Societies, Trusts etc.) which are members of RBI recognized ‘Self-Regulatory Organization’ of the sector and which have a ‘gross loan portfolio’ of up to ₹500 crore as on 31 March 2021, for the purpose of onlending to individuals.
Framework for Resolution of Covid-19 related stress of Individuals and Small Businesses
RBI has issued a framework for Resolution of Covid-19 related stress of Individuals and Small Businesses. Lending institutions are permitted to offer a limited window to individual borrowers and small businesses to implement resolution plans in respect of their credit exposures while classifying the same as Standard upon implementation of the resolution plan.
Framework for resolution of Covid-19 related stress of Micro, Small and Medium Enterprises
RBI has issued a framework for restructuring debts of MSMEs for Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs). Lending institutions shall put in place a Board approved policy on restructuring of MSME advances under these instructions at the earliest, and in any case not later than a month from the date of this circular.
IRDAI issues Guidelines on standard domestic travel insurance product.
Every General and Stand-alone Health Insurer, who has been issued a Certificate of Registration to transact General and/or Health Insurance Business, shall endeavour to offer this Standard Domestic Travel Insurance Product.
RBI allows banks to utilize 100% floating provision for non-performing assets.
RBI has allowed banks to utilise 100 per cent of floating provisions or countercyclical provisioning buffer held by them as on December 31, 2020 for making specific provisions for non-performing assets.
RBI announces rationalization of KYC compliance norms.
Due to current covid-19 related restrictions in various parts of the country, REs are advised that in respect of the customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021.
RBI extends the time period for incentives allowed to commercial banks till 31st December 2021.
The Scheduled Commercial Banks are allowed to deduct the amount equivalent to credit disbursed to ‘New MSME borrowers’ from their Net Demand and Time Liabilities for calculation of the Cash Reserve Ratio and this exemption shall be available only up to ₹25 lakh per borrower disbursed up to the fortnight ending October 1, 2021, for a period of one year, however it has now been extended till 31st December 2021.
The Income-tax (15th Amendment), Rules, 2021.
CBDT has clarified that if the amount received by or due to an individual,
as per the terms of his employment, from his employer in relation to himself and member of his
family, in connection with the specified expenditure is in excess of the thirty six thousand rupees per
person, for the individual and the member of his family, the exemption under this sub-rule would be
restricted to thirty-six thousand rupees per person, for the individual and the member of his family, or
one-third of the specified expenditure, whichever is less.
