In connection with tender No. RBI/Raipur/HRMD/68/20-21/ET/646, which was floated on both MSTC and RBI’s website on March 13, 2021 for the captioned work, a Pre-bid meeting was conducted at 12:15 PM on March 22, 2021 at Conference Hall, Reserve Bank of India, Mahadev Ghat Road, Sundar Nagar, Raipur. The following members participated in the meeting –
a. Representatives from Companies/ firms –
S.N.
Name of Company/ firm
Name of the Representative
1.
M/s Travel with Smile.com, Raipur
Shri Shekh Danish
b. Participants from RBI, Raipur –
S.N.
Name of the RBI Officials
Designation
1.
Shri Satya Narayan Mishra
DGM
2.
Shri G.S. Vinod
AM
3.
Shri Yogesh Sharma
AM
Following queries/doubts were clarified, as mentioned below, in the meeting:
S.N.
Query
Clarification
1.
Whether rates to be quoted should be based on price of Petrol/Diesel.
It was clarified that, rates to be quoted in Price Bid format, under each category of vehicles and for each kind of use, as prescribed Part II of the Tender Document.
2.
IT returns of how many years need to be submitted.
It was clarified that, in terms of paragraph 1. (v) (of (documents to be submitted under Eligibility Criteria), Audited Annual Turnover Statement, Income Tax Return/ Assessment Order for the last three Financial years ended March 31, 2020 need to be submitted.
3.
What is last date of submission of the Tender.
It was informed that, as per Notice Inviting Tender and as per Schedule of Tender, the Price bid along with the Tender form are to be submitted before 01.00 PM on April 05, 2021
Private sector lender ICICI Bank has launched an instant EMI facility on its internet banking platform.
Called ‘EMI @ Internet Banking’, the facility would allow pre-approved customers to convert high-value transactions up to ₹5 lakh into easy monthly instalments (EMIs).
“With this, customers can now purchase their favourite gadget or pay for their insurance premium or school fees in easy EMIs from their savings account using the internet banking platform,” ICICI Bank said in a statement, adding that the EMI would be instant and fully digital.
The bank has tied up with BillDesk and Razorpay to offer the facility. It has been enabled for over 1,000 merchants in categories like online shopping portals, insurance, travel, education- school fees and electronic chains.
“The bank endeavours to partner with more payment gateway companies, merchants and add categories under this facility in the near future,” it further said.
Customers can make purchases for amounts between ₹50,000 to ₹5 lakh and select the tenure of their choice three months, six months, nine months and 12 months.
Sudipta Roy, Head- Unsecured Assets, ICICI Bank said, “We have observed that many of our customers undertake high-value transactions for payments of insurance premiums, school fees, purchasing electronics, or paying for vacations through the bank’s internet banking platform.”
If you fall in the MIG-I and MIG-II categories and wish to take subsidy advantage being offered under the PMAY CLSS then the last date is March 31, 2021. This is unless the centre further extends the date. Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme (CLSS) for MIG or Middle Income Group was launched on January 1, 2017.
Last Date To Avail CLSS Advantage By MIG-I, II Category Is March 31, 2021
Details of the CLSS scheme for MIG category
MIG-I category of homebuyers precisely includes those with income in the range of Rs. 6 lakh to Rs. 12 lakh and they get an interest subsidy of 4% on a loan amount of up to Rs. 9 lakh.
Likewise, MIG-II category includes buyers with income ranging between Rs. 12 lakh and Rs. 18 lakh and they get a rebate of 3% on loan up to Rs. 9 lakh. Thus the PMAY CLSS subsidy amount comes to be at Rs 2,35,068 and Rs 2,30,156 for two categories, respectively.
The benefit under PMAY can be taken in case if one wants to buy a house from a developer or from the resale market via secondary buying. Also, one may secure a loan for constructing a house.
Eligibility to avail CLSS benefit:
The benefit of the subsidy on home buying can be availed by a beneficiary family that includes husband, wife and unmarried children. Further, the beneficiary should not own a pucca house either in his or her name or in the name of any other member of his or her family in any part of the country. Also, the title of the house constructed or purchased by taking a loan under the scheme should be in favour of the female head of the family or in the joint name with the male head.
So, if the children are living with their parents in a house owned by the latter then they can still opt for the CLSS scheme if they are earning and do not own a house.
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It has also shared with the RBI a list of such banks that have not adhered to Trai’s regulatory requirements, as also relevant data on SMS traffic failures, sources added.
Separately, the Telecom Regulatory Authority of India (Trai) in a statement said that all major banks and big telemarketers sending SMS have failed to fulfil regulatory requirements despite repeated reminders.
Sources privy to the development told PTI that the telecom regulator has approached the Reserve Bank of India to get a direction issued to all banks and financial institutions to comply with stipulated rules aimed at curbing pesky calls and bulk messages. Trai has also written to the Department of Financial Services on the matter.
The regulator informed the RBI that as per the provisions of the Telecom Commercial Communications Customer Preference Regulations, 2018, the telecom operators have activated the content scrubbing from March 17, 2021. However, for the time being, even the traffic which has failed in the content scrubbing is allowed to be delivered, to avoid the inconvenience to the consumers.
Trai has further said that based on the report submitted by the telecom operators, it has been observed that certain banks have still not complied with regulatory requirements.
Noting that telcos are intimating the failure reasons to concerned ‘Principal Entities’, Trai has urged the RBI to direct such banks to fulfil the regulatory requirements immediately, failing which their communication to customers may be disrupted, sources said.
Additionally, the regulator has also reached out to state government departments, chief secretaries, and all major government entities that send out bulk messages on the bulk message issue, sources added.
Meanwhile, Trai said in a statement that it “once again requests all the Entities who are using the telecom resources to send bulk messages to the consumers, to fulfil the regulatory requirements immediately so that there would not be any disruption in the communication to the customers.”
Trai has issued the Telecom Commercial Communications Customer Preference Regulations, 2018 (TCCCPR, 2018) on July 19, 2018, to curb the menace of Unsolicited Commercial Communications (UCC), which put in place a framework for controlling UCC.
The regulations entirely came into force with effect from February 29, 2019.
According to the rules all entries that send one-time password (OTP), transactional messages, service messages or commercial messages are required to fulfil regulatory requirements for sending bulk communication.
“The regulatory provisions not only help in preventing spam but also help in preventing fraudulent messages purporting to originate from banks, financial institutions, or other trusted sources,” Trai said.
Trai said that when telecom operators started filtering out non-compliance messages from the system there was a huge drop in sms sent to people from applications.
“It was observed that some of the principal entities have not fulfilled the requirements as envisaged TCCCPR, 2018 even after two years despite being fully aware of the regulations and the consequences,” Trai said.
The regulator temporarily suspended the scrubbing of SMS for seven days on March 9 to enable principle entities to register the SMS templates to avoid inconvenience faced by the customers.
“Unfortunately, despite repeated communication, all major banks and big telemarketers sending SMS have failed to fulfill regulatory requirements. All are being notified individually also. Trai has called for further reports from telecom service providers,” Trai statement said.
Worried by the rising number of appeals before it, the National Company Law Appellate Tribunal (NCLAT) has said that there is a need to introduce a provision granting it supervisory power over the NCLTs across the country.
Due to the lack of such powers under the present laws, several people who are aggrieved by the National Company Law Tribunal (NCLT) are compelled to approach it by filing an appeal before it.
International Recreation
The appellate tribunal observation came while passing an order passed over a petition filed by the resolution professional (RP) of International Recreation and Amusement, who was aggrieved of frequent adjournments being granted by the NCLT and re-notifying the matter time and again.
According to RP, a resolution plan is pending approval before the Delhi bench of NCLT since 2019 and the matter has been adjourned as many as 18 times.
“This is not the first case of such nature,” said a two-member NCLAT bench headed by Acting Chairperson Justice B L Bhat.
The appellate tribunal further said: “There is a need to introduce a provision in the legal framework to vest power of superintendence and control qua National Company Law Tribunals in this Appellate Tribunal.
“Due to lack of supervisory jurisdiction many aggrieved persons are compelled to adopt the route of filing the appeal though there is no order on merit,” it said.
NCLAT has directed NCLT to “take a call and pass an order on merit with regard to the Resolution Plan pending consideration before it within two weeks”.
It has asked to send a copy of this order to the NCLT.
NCLT had initiated an insolvency process against International Recreation and Amusement, which had operated India’s first Amusement Park “Appu Ghar”, which was triggered on August 3, 2018.
K S Oils
Recently, the National Company Law Appellate Tribunal (NCLAT) directed to initiate the liquidation process of edible oil company K S Oils Ltd and set aside an NCLT order passed against it. Terming it “unfortunate”, the appellate tribunal observed that even after the lapse of 981 days and repeated compliance by the Resolution Professional to initiate the liquidation process, the NCLT had not considered it.
“The Appeal is allowed and the impugned order dated January 1, 2021, passed by the Adjudicating Authority (NCLT) is set aside and at the same time the order for initiation for liquidation of the Corporate Debtor Ms. K.S.Oils Ltd is also allowed. The Corporate Debtor- K S Oils shall liquidate in the manner as laid down in Chapter-III of the Code,” it said.
Earlier, on January 1, 2021, the Indore Bench of the National Company Law Tribunal (NCLT) had dismissed the application filed by the RP of the debt-ridden company to initiate liquidation against K S Oils after it could not attract a buyer within the permissible time frame.
Leading bank SBI, one of the CoC Member, on behalf of joint lenders forum who collectively holds 76.53 per cent had moved NCLAT based on which the appellate tribunal had on November 18, 2019, directed lenders to consider revised plans if any within two weeks and directed NCLT to pass appropriate order in accordance with the law.
Delays
As on September 30, 2021, out of the 1,942 ongoing insolvency resolution cases as of September 30, 2020, as many as 1,442 have been stretched beyond 270 days, while 349 such cases have been pending for periods of more than 180 days but less than 270 days.
The 221 CIRPs that saw resolutions took an average of 375 days for the conclusion, exceeding the maximum 330 days permitted. The 914 cases under liquidation took on an average 309 days for the conclusion.
The country’s biggest banks face reduced uncertainty on their profit outlook after a top court’s decision forced lenders to resume classifying and disclosing bad debt.
The Supreme Court ruled that banks won’t be able to charge borrowers for additional interest on loans incurred during a six-month repayment holiday last year. That may cost lenders an extra $1 billion, according to Anil Gupta, vice-president of financial sector ratings at ICRA Ltd, an arm of Moody’s Investors Service Ltd.
It remains unclear who ultimately will foot the bill and whether the government will step in and provide more help to banks. The total amount for the waiver of accumulated interest is estimated at $2 billion of which Prime Minister Narendra Modi’s administration has already promised to bear about $900 million for loans up to Rs 2 crore.
The top five lenders State Bank of India, HDFC Bank, Bank of Baroda, ICICI Bank, Punjab National Bank who hold about half of the $1.8 trillion financial sector’s loans will have to refund $500 million, while the rest will mainly be spread among more than 50 local banks and shadow lenders. Still, this is a small amount compared with their combined annual operating profit of more than $28 billion, according to ICRA’s Gupta.
“The hangover of all the uncertainties related to bad loan classification, loan holiday is now over, which will give investors clarity on banks’ earnings and growth,”said Siddharth Purohit, an analyst at SMC Global Securities Ltd.
The Bankex ended 1.5 per cent higher Tuesday, outperforming the broader Sensex.
Regulators had allowed a six-month relaxation on classifying bad loans that was due to expire in August before the court extended it. The Reserve Bank of India expects that roughly 13 per cent of outstanding loans at local lenders could turn sour by September, which would be the highest level since 1999.
We “need clarity on who might foot the bill,” Prakhar Sharma, an analyst for Jefferies Inc. in Mumbai, wrote in a report.
The ruling also comes about a week before companies can resume filing for bankruptcy, a process that has been frozen over the past year as part of pandemic-relief measures to prevent soured credit causing more pain for an economy already saddled with stressed assets.
The waiver on accumulated interest will not have a “material impact” on lenders’ earnings and will not overshadow the clarity from being able to clearly mark their loans as bad, SMC’s Purohit said.
Consequent to the response of the chemists/ druggists/ stockists to the advertisement issued by Reserve Bank of India in leading local newspapers on February 12, 2021 for “Empanelment of chemists/ druggists/ stockists for Supply of Drugs and Medicines to RBI Dispensaries”, a panel of five suppliers for the years 2021-2024 namely Apollo Pharmacies Limited, Fours Pharma, Ram Agencies, Vardhman Pharma Distributors Pvt Ltd and Bharath Medical and General Agencies had fulfilled the eligibility criteria and agreed to all the terms and conditions specified in Request for Empanelment document.
2. We now invite quotations from empaneled chemists/ druggists/ stockists for award of Annual Contract (AC) for supply of medicines to Bank’s Dispensaries in the Main Office and Bank’s Staff Colonies at Cunningham Road, Cunningham Crescent, Koramangala, Osborne Road, Nandini Layout and RPC Layout, Bengaluru for the year April 2021 – March 2022. The estimated expenditure for the year 2021-22 is ₹ 250 lakh. Tenderers are requested to quote the best uniform discount rate for the tentative annual purchase of medicines/ drugs/ medical items. Your offer should be made in the Price Bid format in Part II of this e-tender. An Earnest Money Deposit (EMD) of ₹5,00,000/- (Rupees five lakh only) has to be deposited on or before April 19, 2021 (10:00 hrs). The price bids of such of the empaneled chemists / druggists / stockists who have submitted EMD will only be considered for award of the Annual Contract.
3. The tendering would be done through the e-Tendering portal of MSTC Ltd. (http://mstcecommerce.com/eprochome/rbi). Empaneled chemists/druggists/stockists must register themselves with MSTC Ltd. through the above mentioned website to participate in the tendering process. The tenderers should submit their discount rate through e-tendering portal along with all supporting documents on or before 10:00 hrs on April 19, 2021. Price bids of the tenderers will be opened on April 19, 2021 at 15:00 hrs.
4. In the event of any date indicated above being declared a holiday, the next working day shall become operative for the respective purpose mentioned herein. Tender document can be downloaded from Bank’s website www.rbi.org.in and www.mstcecommerce.com. Any amendment(s) / corrigendum / clarifications with respect to this tender shall be uploaded on the website / e-portal only. The tenderer should regularly check the above website / e-portal for any amendment / corrigendum / on the above website. The Bank reserves the right to reject any or all the tenders without assigning any reason thereof.
Regional Director for Karnataka Reserve Bank of India Bengaluru
Bankers feel that they are not getting a good price under the Insolvency and Bankruptcy Code, which has seen dismal recoveries in many cases.
“IBC is not the right solution. It is a resolution tool. If there is no resolution, automatically it goes to liquidation. That is a big problem. Resolution can be made if the underlying business is robust, says Siby Antony, chairman of the ARC Association of India.
He says banks feel that they are not getting the right price in IBC.
“Alok Industries was thought to be a very good asset but went for 17%. Binani Cement, Essar Steel were robust businesses and saw interest from strategic investors. But there are hundreds of assets where there is no interest from investors. These are smaller assets,” he said. The status of IBC cases
Out of the total 3,774 cases or corporate insolvency resolution processes (CIRPs) filed since the Insolvency and Bankruptcy Code (IBC) came into existence in 2016, 1,604 cases, or 43 percent have closed, by way of resolution, liquidation or other means. The rest 57 percent are ongoing with many overshooting the 330-day maximum time limit.
Of the 1,604 closed cases, only 14 percent have found a resolution, whereas 57 percent have ended in the liquidation of the companies.
Interestingly, the 72% cases of CIRPs ending in liquidation were already defunct and under the Board for Industrial and Financial Reconstruction.
About 312 cases have been closed on appeal or review or settled, 157 have been withdrawn; 914 ordered for liquidation and 221, saw approval of resolution plans.
The recovery rate for resolved cases under IBC is 44% with Rs 1.84 lakh crore recovered so far of the Rs 4.13 lakh crore admitted claims.
In case of the 12 large defaulters identified by RBI, the creditors recovered Rs 1.36 lakh crore from eight cases that have been resolved so far, with recoveries ranging from as low as 17 percent of claims in the case of Alok Industries, to almost 100 percent for Jaypee Infratech.
N Kamakodi, MD & CEO of Citi Union Bank said he preferred the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFESI) over IBC.
“Since our focus is more on SME lending, we have control over the assets of the borrower. Hence, most of our resolution plans are through SARFAESI action more than the IBC.”
He added, “What is more important is whether the borrower has the skin in the game. When you want to sell it as a going concern and when there is a sufficient value, then IBC is preferable. But if the borrowers’ skin in the game is less, then the SARFAESI is a better option.”
The 221 CIRPs that saw resolutions took an average of 375 days for the conclusion, exceeding the maximum 330 days permitted. The 914 cases under liquidation took on an average 309 days for the conclusion.
As on September 30, 2021, out of the 1,942 ongoing insolvency resolution cases, as many as 1,442 have been stretched beyond 270 days, while 349 such cases have been pending for periods of more than 180 days but less than 270 days.
As on September 30, 2021, out of the 1,942 ongoing insolvency resolution cases, as many as 1,442 have been stretched beyond 270 days, while 349 such cases have been pending for periods of more than 180 days but less than 270 days.
Recently, the National Company Law Appellate Tribunal (NCLAT) directed to initiate the liquidation process of edible oil company K S Oils Ltd and set aside an NCLT order passed against it. Terming it “unfortunate”, the appellate tribunal observed that even after the lapse of 981 days and repeated compliance by the Resolution Professional to initiate the liquidation process, the NCLT had not considered it.
Leading bank State Bank of India, one of the Committee of Credit (CoC) Member, on behalf of joint lenders forum who collectively holds 76.53 per cent had moved NCLAT based on which the appellate tribunal had on November 18, 2019, directed lenders to consider revised plans if any within two weeks and directed NCLT to pass appropriate order in accordance with the law.
The government is planning to set up a bad bank and an asset management company (AMC). Loans greater than Rs 500 crore which have not been declared fraudulent will be transferred to the bad bank. It is likely that the assets would not be subjected to IBC in the first instance, and the AMC will first try and revive these companies or package the loans to an investor.
Bad Bank
Also, creditors of several companies had signed the Inter Creditor Agreements (ICA) and may continue negotiation under the framework roping in distressed asset investors. Also, most of the ICA cases will have loans greater than Rs 500 crore, which will be transferred to the bad bank. MSME will be outside the scope of IBC pending notification of the designated framework.
The lender said that up to 28,30,18,867 equity shares of face value of Rs 1 each at an issue price of Rs 8.48 each will be issued to the insurance companies.
South Indian Bank (SIB) said in a regulatory filing on Tuesday that an extraordinary general meeting (EGM) of the bank approved the special resolution to raise Rs 240 crore by issuing equity shares on a preferential basis from HDFC Life Insurance Company, Kotak Mahindra Life Insurance Company, SBI Life Insurance Company and ICICI Lombard General Insurance Company.
The lender said that up to 28,30,18,867 equity shares of face value of Rs 1 each at an issue price of Rs 8.48 each will be issued to the insurance companies.
Post-allotment of the securities HDFC Life, Kotak Mahindra Life and SBI Life will hold 4.23 % shares of the bank each, while ICICI Lombard General Insurance will hold 0.85 % share.
SIB had obtained approval of shareholders in the last annual general meeting for raising of funds in Indian or foreign currency by way of issuance of debt securities up to Rs 500 crore.
South Indian Bank has also obtained approval of shareholders for increasing the authorised capital of the bank to Rs 350 crore. The Thrissur-based bank had reported a net loss of `91.62 crore in the third quarter of the fiscal on account of higher credit cost.
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