{"id":8664,"date":"2019-12-28T19:09:57","date_gmt":"2019-12-28T13:39:57","guid":{"rendered":"http:\/\/udaen.info\/?p=8664"},"modified":"2019-12-28T19:09:57","modified_gmt":"2019-12-28T13:39:57","slug":"finance-minister-launches-eb-for-online-auction-of-assets-attached-by-banks","status":"publish","type":"post","link":"https:\/\/udaen.info\/?p=8664","title":{"rendered":"Finance Minister launches eB???? for online auction of assets attached by banks"},"content":{"rendered":"

Finance Minister launches eB???? for online auction of assets attached by banks<\/p>\n

Steps announced for boosting digital transactions Bankers assured of protection for prudent commercial decisions taken Bank outreach to MSMEs and transmission of rate cuts continues<\/p>\n

Union Finance Minister Smt. Nirmala Sitharaman here today discussed banking issues with chiefs of Public Sector Banks (PSBs), chief executive of Indian Banks\u2019 Association and representatives of leading private sector banks. Finance Secretary, Revenue Secretary, Economic Affairs Secretary, Electronics and Information Technology Secretary, CBI Director, RBI representative and the chief executive officer of NPCI were also present.<\/p>\n

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  1. \u00a0Steps\u00a0 for enhancing digital transactions<\/strong><\/li>\n<\/ol>\n

    In order to strengthen the digital payment eco-system and move towards less-cash economy, Hon\u2019ble FM in her budget speech of 2019-20 had,\u00a0inter alia<\/em>, announced that business establishments with annual turnover of more than Rs. 50 crore shall offer low cost digital modes of payment ( such as BHIM UPI, UPI QR Code, Aadhaar Pay, Debit Cards, NEFT, RTGS etc.) to their customers, and no charge or Merchant discount rates (MDR) shall be imposed on customers as well as merchants. To facilitate implementation of this announcement, it was decided as under:<\/p>\n

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    • Department of Revenue (DoR) will notify RuPay and UPI as the prescribed mode of payment for undertaking digital transactions without any MDR.<\/li>\n
    • Accordingly, all companies with a turnover of Rs. 50 crore or more shall be mandated by DoR to provide the facility of payment through RuPay Debit card and UPI QR code to their customers.<\/li>\n
    • All banks will also start a campaign to popularise RuPay Debit card and UPI.<\/li>\n<\/ul>\n

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      1. Banks restored to health for lending<\/strong><\/li>\n<\/ol>\n\n\n\n\n\n
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        Extensive reforms carried out by the Government have restored banks to health, with the gross NPAs of PSBs declining from Rs. 8.96 lakh crore in March 2018 to Rs. 7.27 lakh crore in September 2019, their provision coverage ratio rising to their highest level in seven years, and banks returning to profitability, with as many as 13 banks reporting profits in H1FY20.<\/td>\n

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        With the Essar resolution decision, banks have recovered Rs. 38,896 crore, in addition to Rs. 4.53 lakh crore recovered in the last 4\u00bd years.<\/p>\n

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        PSBs have attached assets worth over Rs. 2.3 lakh crore over the last three financial years and to enable online auction by banks of attached assets transparently and cleanly for improved realisation of value,\u00a0eB<\/strong>\u0915\u094d\u0930\u092f,\u00a0<\/strong>a common e-auction\u00a0<\/strong>platform was\u00a0 launched today by the Finance Minister<\/strong>. The platform is equipped with\u00a0property search features<\/strong>\u00a0and\u00a0navigational links<\/strong>\u00a0to all PSB e-auction sites, provides\u00a0single-window access to information<\/strong>\u00a0on properties up for e-auction as well as facility for\u00a0comparison of similar properties<\/strong>, and also contains\u00a0photographs and videos<\/strong>\u00a0of uploaded properties. As on 27.12.2019, a total of\u00a035,000 properties<\/strong>\u00a0had been uploaded on the platform by PSBs.<\/p>\n

        To strengthen banks, in addition to the recent infusion of Rs. 60,314 crore, additional\u00a0infusion of Rs. 8,855 crore (Rs 4360 crore to Indian Overseas Bank, Rs 2153 crore to Allahabad Bank, Rs 2142 crore to UCO Bank and Rs 200 crore to Andhra Bank) has been approved\u00a0<\/strong>and would be released shortly.<\/p>\n

        Having improved asset quality and internal resource generation, PSBs are now fully poised to support prudential credit growth towards a $ 5 trillion economy by 2025.<\/p>\n

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        1. Robust banks to lend without undue apprehensions<\/strong><\/li>\n<\/ol>\n

          \u00a0<\/strong><\/p>\n

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          • Bankers were assured that prudent commercial decision-making would be protected.<\/li>\n
          • To allay any apprehensions in this regard and to take feedback, Director, CBI also attended the meeting. It was decided that\u2014<\/li>\n<\/ul>\n

            (a)\u00a0\u00a0\u00a0\u00a0CBI would develop a mechanism as recently introduced for income tax notices, so that CBI notices carry a registration number to avoid any scope for unauthorised communication and consequent harassment.<\/p>\n

            (b)\u00a0\u00a0\u00a0While pursuing criminal action against those responsible, the agency shall be sensitive to the distinction between genuine commercial failures and culpability. It was also noted that there is need for preserving the value of the business enterprise by treating it on a separate footing from culpability of individuals, if any.<\/p>\n

            (c)\u00a0\u00a0\u00a0\u00a0PSBs may report instances of fraud through e-filing of FIRs on a designated email address of CBI so as to avoid scope of any arbitrage due to information asymmetry.<\/p>\n

            (d)\u00a0\u00a0\u00a0CBI would create a dedicated phone number on which any person could give information regarding any undue harassment by the investigative machinery.<\/p>\n

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            • Banks were also advised to ensure rigor and adherence to objective standards in selection of forensic auditors and devising objective SOPs for carrying out of forensic audit. To this end, the Indian Banks\u2019 Association was requested to\u2014<\/li>\n<\/ul>\n

              (a)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0strengthen the forensic auditor empanelment process;<\/p>\n

              (b)\u00a0\u00a0\u00a0\u00a0\u00a0put in place robust arrangements for assessing adherence to standards by forensic auditors; and<\/p>\n

              (c)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0tie up with CBI for training forensic auditors.<\/p>\n

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              1. Credit outreach by banks<\/strong><\/li>\n<\/ol>\n

                \u00a0<\/strong><\/p>\n

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                • PSBs have sanctioned over 11.68 lakh Repo-linked loans to retail borrowers for home\/vehicle\/education\/personal loans and to micro and small enterprises, amounting to Rs. 1.32 lakh crore post Finance Minister\u2019s announcements on 23.8.2019 on measures to boost the economy.<\/li>\n
                • All PSBs have introduced checkbox-based OTS and have sanctioned settlements under OTS in over 5.26 lakh accounts amounting to Rs. 16,716 crore, post Finance Minister\u2019s announcements on 23.8.2019.<\/li>\n
                • In order to address the working capital needs of MSMEs on account of stress arising from delayed payments, PSBs are offering up to 25% enhancement in working capital limits for standard MSME accounts as a\u00a0Standby Line of Credit<\/strong>\u00a0and have launched a\u00a0MSME Outreach Initiative\u00a0<\/strong>for\u00a0<\/strong>restructuring of stressed standard assets as needed on priority and in a timely manner, besides providing new term loans, payment solutions for delayed receivables, bill discounting and trade finance. A total of \u00a05,38,440 MSME loan accounts have been restructured<\/strong>\u00a0in terms of RBI\u2019s circular dated 1.1.2019, out of which 1,65,104 accounts have been restructured since October, 2019.<\/li>\n<\/ul>\n

                   <\/p>\n

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                  1. Support to NBFCs and HFCs by PSBs<\/strong><\/li>\n<\/ol>\n

                     <\/p>\n

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                    • On 11.12.2019, the Cabinet has approved the recently launched\u00a0Partial Credit Guarantee Scheme (<\/strong>PCGS) that would now cover NBFCs\/HFCs which may have slipped into SMA-0 (up to 30 days overdue) category during the one-year period prior to 1.8.2018, and asset pools rated BBB+ or higher. Under PCGS, Government has already approved issuance of guarantee for buy-outs of NBFC asset pools worth\u00a0Rs. 4,294 crore<\/strong>\u00a0from 10 NBFCs\/HFCs covering a wide spectrum of entities.<\/li>\n
                    • Post IL&FS default, aided significantly by Government support,\u00a0assets of NBFCs<\/strong>\u00a0have\u00a0grown by 12.83%<\/strong>\u00a0from Rs 28.31 lakh crore to Rs 31.94 lakh crore, and assets of the\u00a0211 larger NBFCs<\/strong>\u00a0with 81% of market share<\/strong>\u00a0have grown at an even higher rate of\u00a019.69%.<\/strong>\u00a0Bank exposure<\/strong>\u00a0to NBFCs has grown at a much higher rate of\u00a017.46%<\/strong>\u00a0as compared to market financing.<\/li>\n
                    • Similarly, 76 out of 101 HFCs with 82% of market share<\/strong>\u00a0have shown a positive asset growth of\u00a018%<\/strong>\u00a0post IL&FS default from Rs 8.45 lakh crore to Rs 10 lakh crore. Exposure of banks and NHB to the\u00a076 performing HFCs has grown by 38%<\/strong>\u00a0post IL&FS default, as compared to 14% growth in market financing to these HFCs..<\/li>\n
                    • Thus, the NBFC\/HFC sector post IL&FS default, is\u00a0now stabilizing<\/strong>\u00a0and\u00a0good NBFCs\/HFCs are able to raise funds from market<\/strong>\u00a0even at times at rates less than the pre-IL&FS rates. The market is, however, distinguishing between good and not-so-good entities which is reflected in the better entities being able to obtain higher financing from both banks and the market.<\/li>\n<\/ul>\n

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                       <\/p>\n","protected":false},"excerpt":{"rendered":"

                      Finance Minister launches eB???? for online auction of assets attached by banks Steps announced for boosting digital transactions Bankers assured of protection for prudent commercial decisions taken Bank outreach to MSMEs and transmission of rate cuts continues Union Finance Minister Smt. Nirmala Sitharaman here today discussed banking issues with chiefs of Public Sector Banks (PSBs), […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[14],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/udaen.info\/index.php?rest_route=\/wp\/v2\/posts\/8664"}],"collection":[{"href":"https:\/\/udaen.info\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/udaen.info\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/udaen.info\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/udaen.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8664"}],"version-history":[{"count":1,"href":"https:\/\/udaen.info\/index.php?rest_route=\/wp\/v2\/posts\/8664\/revisions"}],"predecessor-version":[{"id":8665,"href":"https:\/\/udaen.info\/index.php?rest_route=\/wp\/v2\/posts\/8664\/revisions\/8665"}],"wp:attachment":[{"href":"https:\/\/udaen.info\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/udaen.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/udaen.info\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}