May 2021 – Page 4 – IFSCCodeof.in

Group health insurance start-up Plum raises $15.6 million in Series A led by Tiger Global

May 31, 2021 root Banking & Finance

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Plum, a group health insurance start-up has raised a $15.6 million in Series A led by Tiger Global. The fundraise saw participation from earlier investors, Sequoia Capital India’s Surge, Tanglin Venture Partners, Incubate Fund and Gemba Capital.

Angel investors in this round include Kunal Shah (founder, Cred), Gaurav Munjal, Roman Saini and Hemesh Singh (founders of Unacademy), Lalit Keshre, Harsh Jain and Ishan Bansal (founders of Groww), Ramakant Sharma and Anuj Srivastava (founders of Livspace), and Douglas Feirstein (founder of Hired). Plum has raised $5million in earlier rounds last year.

The funds raised will be used to scale up engineering, business development and operations teams.

New products

The company is building newer insurance products for SMEs who have teams as small as 7 employees and cannot afford to pay annual premiums. Plum is additionally looking at building deeper API integrations with leading insurers like ICICI Lombard, Care Health, Star Health and New India Assurance.

Also read: Fintech start-up Jai Kisan raises ₹217 crore in Series A funding

“Plum aims to reach a milestone of 10 million lives insured by 2025, by changing the employee health insurance space. With Plum, we are making the process transparent, affordable and easy, using tech at scale. The adoption of health insurance by start-ups, SMEs and corporates is increasing exponentially, and is further accelerated by the ongoing Covid-19 pandemic. We are building Plum to enable a high quality healthcare experience for every single employee and their family members” said Abhishek Poddar, co-founder and CEO, Plum, in a statement.

The group health insurance market in India, which is almost 50 per cent of the total $3.5 billion health insurance market, has seen an annual growth of about 25 per cent in the last few years and is doubling every three years. Group health insurance products cover about 90 million Indians, but are expected to cover more than 500 million Indians by the end of this decade.

With over 600 organisations on-boarded, Plum claims it has been witnessing a growth rate of 110 per cent quarter-on-quarter and leads the industry with a Claims NPS of 79. Plum’s client base include SMEs, corporates and fast-growing start-ups including Groww, Unacademy, Twilio, CleverTap, UrbanLadder, smallcase and Simpl.

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Reserve Bank of India – Tenders

May 31, 2021 root Tenders

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April 14, 2015

Dear All

Welcome to the refurbished site of the Reserve Bank of India.

The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.

With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.

The site can be accessed through most browsers and devices; it also meets accessibility standards.

Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.

Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.

Thank you for your continued support.

Department of Communication

Reserve Bank of India

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Bank holidays in June 2021: Banks to remain closed for up to 9 days next month; check full list here

May 31, 2021 root Banking & Finance

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According to the Reserve Bank of India (RBI), banks in a few states will be closed for different occasions, other than weekly holidays

Bank holidays: Banks in India will remain closed for up to nine days in June, including second and fourth Saturdays, and Sundays. According to the Reserve Bank of India (RBI), banks in a few states will be closed for different occasions next month in June 2021, other than weekly holidays. Banks will not be closed for all nine days for all states as holidays vary from state to state. Only the gazetted holidays are observed by banks all over the country. The Reserve Bank of India has categorised holidays under three categories — Holiday under Negotiable Instruments Act; Holiday under Negotiable Instruments Act and Real-Time Gross Settlement Holiday; and Banks’ Closing of Accounts. The list of holidays given below has been notified by RBI.

Bank Holidays in June 2021

Festivals in June 2021

15 June 2021 – Y.M.A. Day/Raja Sankranti
25 June 2021 – Guru Hargobind Ji’s Birthday
30 June 2021 – Remna Ni

Banks across Mizoram’s Aizawl and Odisha’s Bhubaneswar will observe a holiday on June 15, on account of Y.M.A. Day and Raja Sankranti. On June 25, 2021, only banks in Jammu and Srinagar will remain shut to observe Guru Hargobind Ji’s Birthday. Similarly, on June 30 (Remna Ni) only banks in Aizawl will remain closed.

Also read: Banks move Supreme Court against RTI disclosure, seek direction to RBI

Weekend holidays in June 2021

06 June 2021 – Weekly off (Sunday)
12 June 2021 – Second Saturday
13 June 2021 – Weekly off (Sunday)
20 June 2021 – Weekly off (Sunday)
26 June 2021 – Fourth Saturday
27 June 2021 – Weekly off (Sunday)

Also read: SBI should be able to build a book of Rs 2,000 crore through expanded ECLGS: Dinesh Khara

All the private and public sector banks across the country remain shut on the second and fourth Saturdays of every month, along with a weekly holiday on Sunday. Even as banks will remain shut on the above-mentioned days, customers can avail online services. Moreover, mobile and internet banking will remain operational. Further, for the next three months (July-September quarter), banks will be closed for 24 days, other than Sundays and second and fourth Saturdays.

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Reserve Bank of India – Press Releases

May 31, 2021 root Press Releases

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(Amount in ₹ crore, Rate in Per cent)

	Volume (One Leg)	Weighted Average Rate	Range
A. Overnight Segment (I+II+III+IV)	5,705.45	3.26	1.00-3.50
I. Call Money	386.55	2.83	2.70-3.05
II. Triparty Repo	1,171.90	2.84	1.00-3.50
III. Market Repo	0.00		–
IV. Repo in Corporate Bond	4,147.00	3.42	3.40-3.45
B. Term Segment
I. Notice Money**	10,286.01	3.15	1.90-3.45
II. Term Money^@@	546.00	–	3.15-3.52
III. Triparty Repo	264,784.15	3.25	3.01-3.36
IV. Market Repo	112,429.94	3.30	0.01-3.40
V. Repo in Corporate Bond	50.00	5.35	5.35-5.35

	Auction Date	Tenor (Days)	Maturity Date	Amount	Current Rate / Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate
(i) Repo
(ii) Reverse Repo	Fri, 28/05/2021	3	Mon, 31/05/2021	295,821.00	3.35
(iii) Special Reverse Repo^~
2. Variable Rate^&
(I) Main Operation
(a) Reverse Repo
(II) Fine Tuning Operations
(a) Repo
(b) Reverse Repo	–	–	–	–	–
3. MSF	Fri, 28/05/2021	3	Mon, 31/05/2021	101.00	4.25
4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)^£
5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*				-295,720.00
II. Outstanding Operations
1. Fixed Rate
(i) Repo
(ii) Reverse Repo
(iii) Special Reverse Repo^~	Fri, 21/05/2021	14	Fri, 04/06/2021	5.00	3.75
2. Variable Rate^&
(I) Main Operation
(a) Reverse Repo	Fri, 21/05/2021	14	Fri, 04/06/2021	200,016.00	3.47
(II) Fine Tuning Operations
(a) Repo
(b) Reverse Repo
3. MSF
4. Long-Term Repo Operations^#	Mon, 17/02/2020	1095	Thu, 16/02/2023	499.00	5.15
	Mon, 02/03/2020	1094	Wed, 01/03/2023	253.00	5.15
	Mon, 09/03/2020	1093	Tue, 07/03/2023	484.00	5.15
	Wed, 18/03/2020	1094	Fri, 17/03/2023	294.00	5.15
5. Targeted Long Term Repo Operations^	Fri, 27/03/2020	1092	Fri, 24/03/2023	12,236.00	4.40
	Fri, 03/04/2020	1095	Mon, 03/04/2023	16,925.00	4.40
	Thu, 09/04/2020	1093	Fri, 07/04/2023	18,042.00	4.40
	Fri, 17/04/2020	1091	Thu, 13/04/2023	20,399.00	4.40
6. Targeted Long Term Repo Operations 2.0^	Thu, 23/04/2020	1093	Fri, 21/04/2023	7,950.00	4.40
7. On Tap Targeted Long Term Repo Operations^€	Mon, 22/03/2021	1095	Thu, 21/03/2024	5,000.00	4.00
8. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)^£	Mon, 17/05/2021	1095	Thu, 16/05/2024	400.00	4.00
D. Standing Liquidity Facility (SLF) Availed from RBI^$				1,662.00
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*				-115,877.00
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*				-411,597.00
G. Cash Reserves Position of Scheduled Commercial Banks
(i) Cash balances with RBI as on		28/05/2021		645,726.35
(ii) Average daily cash reserve requirement for the fortnight ending		04/06/2021		614,682.00
H. Government of India Surplus Cash Balance Reckoned for Auction as on^¥		28/05/2021		0.00
I. Net durable liquidity [surplus (+)/deficit (-)] as on		07/05/2021		741,854.00
^@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
^@@ Relates to uncollateralized transactions of 15 days to one year tenor.
^$ Includes refinance facilities extended by RBI.
^& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
^# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
^€ As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020 and Press Release No. 2020-2021/1057 dated February 05, 2021.
^¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
^£ As per the Press Release No. 2021-2022/181 dated May 07, 2021.
^~ As per the Press Release No. 2021-2022/177 dated May 07, 2021.
Ajit Prasad Director
Press Release: 2021-2022/288

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Sovereign Gold Bond Scheme 2021-22 Series III: Check Issue Price And Other Details

May 31, 2021 root Personal Finance

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About Sovereign Gold Bond Scheme

Sovereign gold bonds are RBI-mandated certificates issued in exchange for grams of gold, allowing individuals to invest in gold without having to worry about keeping their physical assets safe. Because gold prices are less subject to market volatility, sovereign gold bonds are a safe investment option for people. The maximum amount of gold that can be purchased through gold bonds is 4 kg per investor every fiscal year. It is possible to nominate someone. Remember to amend the nominee information throughout the investing process, or you can do it afterward. Every year, the interest rate on gold bonds is 2.50 percent. Remember, this is in addition to the gold price increase. On the nominal value, interest is paid every six months or semi-annually. Gold bonds are issued for an eight-year period, with early withdrawal permitted beginning in the fifth year. Individuals can also sell their securities on the secondary market at the gold market rate.

Sovereign Gold Bond Scheme 2021-22 – Series III Details

The most recent scheme will be available for subscription from May 31, 2021, to June 4, 2021. Based on the simple average closing price published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity on the last three working days of the week preceding the subscription period, i.e. May 26, May 27, and May 28, 2021, the nominal value of the bond is Rs 4,889/- per gram of gold.

In collaboration with the Reserve Bank of India, the Government of India has agreed to grant a discount of 50/- per gram less than the nominal value to those investors who apply online and pay for their application via the digital channel. The issue price of a Gold Bond for such investors will be Rs 4,839/- per gram of gold.

Sovereign Gold Bond Scheme Series III Scheme

Price: Rs 4,889/- per gram

Discounted Price: Rs 4,839/- per gram

Subscription Date: May 31, 2021, to June 4, 2021

Tenure: 8 Years

Redeem: After 5 Years

Should you consider investing in Sovereign Gold Bond Scheme 2021-22 – Series III?

In comparison to actual gold, gold bonds offer a more safe option and benefits to investors. Gold bonds safeguard the value of the precious metal for which they were purchased. Gold bonds can also assist you acquire a loan from a bank, another financial institution, or a non-banking financial firm (NBFC). Physical gold comes with a cost and a risk of storage. Physical gold has its own set of characteristics, such as the cost of creating jewellery and the purity of the metal. SGBs, on the other hand, does not entail any of the risks that come with owning actual gold. On the bonds, there are no heavy creating or designing expenses or TDS. Additionally, no one can steal or change ownership.

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Banks begin process of restructuring of loans up to Rs 25 crore, BFSI News, ET BFSI

May 31, 2021 root Banking & Finance

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To provide support to small businesses hit by the second coronavirus wave, banks have initiated the process of restructuring of loans up to Rs 25 crore in line with the COVID-19 relief measures announced by the Reserve Bank earlier this month. Many lending institutions have got board approval for the resolution framework and eligible borrowers are being contacted.

For example, Bank of India has sent messages to its eligible customers to submit their willingness to debt recast online.

“In these trying times, we offer you a helping hand by extending relief as per RBI Resolution Framework 2.0 dated May 5, 2021. If you are under financial stress caused by the COVID second wave, you may opt for restructuring of your account,” the message said.

Another public sector lender Punjab & Sind Bank said its debt recast plan as specified by the RBI has been approved by the board.

“We will be reaching out to our customers including through BCs…we will get a fair idea about how many customers want to avail the restructuring in the next few days or so,” Punjab & Sind Bank managing director S Krishnan said.

SBI Chairman Dinesh Kumar Khara said for the resolution framework 2.0 announced by the RBI on May 5, all public sector banks have come out with a formulated templated approach for restructuring of loans to individuals, small businesses, MSMEs up to Rs 25 crore.

“The idea behind this is that those who are involved in the implementation of the resolution framework, they should not have any hardship in terms of any implementation,” Khara added.

When asked about the size of the restructuring pool banks are expecting this time, IBA Chairman and Union Bank of India‘s Managing Director and Chief Executive Officer Rajkiran Rai G said it was too early to put a number for potential recasts, as banks are only sending messages to eligible borrowers.

“Last time also we saw that the number of customers opting for this (restructuring) was not that high. So, we need to get some feedback and it is difficult to crystallise a number at this point in time,” he said.

The SBI chairman, Khara, said during the previous restructuring scheme, SBI had about 8.5 lakh SME customers who were eligible for restructuring but only 60,000 borrowers availed it.

The resurgence of the fresh COVID-19 wave has put many MSME, individuals and small businesses under stress. Taking cognisance of the prevailing situation, the RBI announced Resolution Framework 2.0 under which individuals and small businesses having exposure up to Rs 25 crore can opt for loan restructuring if they had not availed the earlier scheme.

In the case of those who had availed the loan restructuring under the earlier scheme, the RBI permitted the banks and lending institutions to modify the plans and increase the period of the moratorium to help alleviate the potential stress.

“In respect of small businesses and MSMEs restructured earlier, lending institutions are also being permitted as a one-time measure, to review the working capital sanctioned limits, based on a reassessment of the working capital cycle, margins, etc,” RBI Governor Shaktikanta Das had said while announcing steps to deal with the impact of the second wave of the COVID-19.

This is a one-time loan restructuring scheme under which the loan would remain standard despite recast and banks would not have to make additional provision in such cases.

This is the second restructuring scheme announced by the central bank in less than one year, with the first unveiled in August last year when the first COVID-19 wave had battered the Indian economy with a contraction of 8 per cent during the financial year ended March 2021.

Borrowers who were classified as “standard” as of March 31, 2021, will be eligible to be considered under Resolution Framework 2.0.

Restructuring under the proposed framework may be invoked up to September 30, 2021, and would have to be implemented within 90 days after invocation. DP MKJ MKJ

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IBA CEO, BFSI News, ET BFSI

May 31, 2021 root Banking & Finance

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As the government enhanced the scope of the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), banks on Sunday said they have sanctioned Rs 2.54 lakh crore and have room to disburse another Rs 45,000 crore under the plan.

To support the businesses affected by the second wave of COVID-19, the Finance Ministry on Sunday enhanced the scope of ECLGS, including providing concessional loans to hospitals/nursing homes for setting up on-site oxygen generation plants.

The validity of the scheme is extended by a further three months to September 30 or till guarantees for an amount of Rs 3 lakh crore are issued, the ministry said in a statement.

“Of the total kitty (for ECLGS) available, Rs 2.54 lakh crore of loans have already been covered and there is a window available for roughly Rs 45,000 crore. Of the Rs 2.54 lakh crore, Rs 2.40 lakh crore has already been disbursed,” Indian Banks’ Association Chief Executive Officer (CEO) Sunil Mehta told reporters after the ministry’s announcement.

The ministry said, under the ECLGS 4.0, a 100 per cent guarantee cover to loans up to Rs 2 crore will be provided to hospitals, nursing homes, clinics, medical colleges for setting up on-site oxygen generation plants.

The interest rate on these loans has been capped at 7.5 per cent.

“Borrowers who are eligible for restructuring as per the RBI guidelines of May 5, 2021, and had availed loans under ECLGS 1.0 of overall tenure of four years comprising of repayment of interest only during the first 12 months with repayment of principal and interest in 36 months thereafter will now be able to avail a tenure of five years for their ECLGS loan i.e. repayment of interest only for the first 24 months with repayment of principal and interest in 36 months thereafter,” the ministry said.

Also, the new scheme has made a provision of additional ECLGS assistance of up to 10 per cent of the outstanding as of February 29, 2020, to borrowers covered under ECLGS 1.0, in tandem with restructuring as per the RBI guidelines of May 5, 2021.

The government has also removed the current ceiling of Rs 500 crore of loan outstanding for eligibility under ECLGS 3.0, subject to maximum additional ECLGS assistance to each borrower being limited to 40 per cent or Rs 200 crore, whichever is lower.

Loans to the civil aviation sector were also made eligible under ECLGS 3.0, the ministry said.

“We all are aware of the scenario which emerged post resurgence of COVID 2.0. It has actually led to a lot of disruption of economic activity.

“The most vulnerable among them, MSMEs, are in need of support, which has been extended in various forms, more so in the May 5 circular of Reserve Bank of India. Now, the government today announced the modification to the ECGL scheme,” State Bank of India Chairman Dinesh Khara said.

On ECLGS 4.0, Khara said his bank will be in a position to build a book size of about Rs 2,000 crore.

He said for the resolution framework 2.0, announced by the RBI on May 5, all public sector banks have come out with a formulated templated approach for restructuring of loans to individuals, small businesses, MSMEs up to Rs 25 crore.

“The idea behind this is that those who are involved in the implementation of the resolution framework, they should not have any hardship in terms of any implementation,” Khara added.

Khara said during the previous restructuring scheme, SBI had about 8.5 lakh SME customers who were eligible for restructuring but only 60,000 borrowers availed it.

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Multiple contempt petitions filed in SC against Shaktikanta Das, bank forum chief, others, BFSI News, ET BFSI

May 31, 2021 root Banking & Finance

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A number of petitions have been filed before the Supreme Court seeking to initiate contempt of court proceedings against Reserve Bank of India (RBI) Governor, Shaktikant Das, Chief Executive of Indian Banks Association (IBA) and others for allegedly flouting the SC’s earlier order, by turning and declaring the account of the petitioners as Non Performing Assets (NPA) in connection with the moratorium matter.

The petitioners – M/s Azeez Trading Company, Umrazz Trading Corporation, Ajay Hotel and Restaurant, Latur, Maharashtra — have filed their plea through lawyer Vishal Tiwari and Advocate On Record (AOR) Abhigya.

The respondents, Reserve Bank of India (RBI) Governor, Shaktikant Das, Chief Executive of Indian Banks Association (IBA) were duty-bound to promulgate and ensure the compliance of the order of this court throughout the country but they deliberately didn’t, the petition said.

The Supreme Court’s order, dated September 3, 2020, was operational on all lending institutions/banks throughout the country and was passed in favour of all borrowers accounts to grant relief from financial stress during the COVID-19 pandemic, Tiwari said in the petition.

The September 3 order was passed in the presence of the respondents represented by their counsel and all were very well aware of the Stay order, the petition said.

It further claimed that the contemptuous act of the respondents had not only disobeyed the court’s order but also caused severe irreparable damage and loss to the petitioners.

“The petitioners have lost their image and has been defamed as the possession notice was published in the new papers of his locality which made the dignity of the petitioner lower,” it added

The contemptuous act of all the respondents has shaken the confidence of the public and has degraded the trust of the borrowers. In this Covid-19 pandemic where all borrowers are passing through the worst scenario and financial stress, the respondents’ alleged act is very disgraceful and contemptuous. The petitioners thereby sought the issuance of notice to the alleged contemnors for willfully violating the order/directions of the Apex Court passed in a writ petition.

“Punish the contemnors for having committed contempt of this Court,” the petition said.

Further, in the petition, Tiwari said that the stay order was passed in the pandemic COVID-19 for the benefit of stressed borrowers so that they shall not suffer in present financial crisis during the pandemic.

“There is already a slump in the work of the petitioner. The stay order was operating as a lifesaving drug but the contemptuous act of the respondent has brought a major setback to the petitioner and his survival has become critical,” the petition said.

Several petitions have already been filed in the same case before the Supreme Court.

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Banks move Supreme Court against RTI disclosure, seek direction to RBI

May 30, 2021 root Personal Finance

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HDFC further said that the apex court in earlier judgments had clearly held that even if public interest is considered while determining whether certain information has to be disclosed or not, such determination has to be on case to case basis, backed with reasons in writing.

The Supreme Court will consider in July petitions filed by various banks including SBI and HDFC Bank seeking a direction to the Reserve Bank of India (RBI) to exempt information related to their customers, trade secrets, risk ratings, any unpublished price sensitive information from the Right to Information Act.

A Bench led by Justice L Nageswara Rao posted the matter for hearing in July first week.

The Supreme Court had last month revived its 2015 judgment making it necessary for RBI to disclose financial information related to private and public banks under the RTI Act. It had dismissed a joint plea by the Central government and 10 banks seeking a recall of the judgment in Jayantilal N Mistry (2015) that mandated RBI to disclose inspection reports of banks as well as details of willful defaulters on the grounds that the central bank had no fiduciary relationship with the banks.

In another attempt to wriggle out of the transparency law, the banks in their separate petition said that they being privy to sensitive information like personal details of its account holders, prospective loans and other financial transactions are required to keep such info confidential and maintain privacy as directed by the SC in the Justice KS Puttasamy vs UoI (Aadhar judgment), which recognises the fact that right to privacy is a sacrosanct facet of fundamental rights.

Public disclosure of information pertaining to commercial confidence, business strategies, internal system, risk management, gas, etc would not serve any larger public interest, but would adversely affect the competitive position of banks in a highly competitive private banking sector in our country, they told the top court.

Besides, SBI, four private banks – HDFC Bank, Axis Bank, ICICI Bank and Yes Bank – in their joint petition said that RBI in its role as banker to the government and banking regulator receives and holds a lot of sensitive information, the disclosure of which may not be in the interest of the nation or serve public interest. RBI also sometimes is privy to personal information of customers and the disclsoure of which would not only compromise the privacy of the concerned individuals but may also in some extreme cases endanger their life/security.

Terming disclosure of inspection reports as invasion of privacy of banks, their customers and employees, the petition led by HDFC Bank further told the SC that the RTI Act does not apply to private entities like them as they are not public authorities under the Act and therefore, information pertaining to such banks/FIs and their customers and employees cannot be sought/provided under the RTI Act, let alone confidential/sensitive information of such banks/FIs.

While RBI is required to follow the provisions of the RTI Act with regard to third party information and is bound to seek “submissions/representation” from the banks, the banks may require the consent of the individual account holders before any such disclosure, the petition stated, adding that access to technical, personal and highly confidential information pertaining to banks and its customers would not only unfavourably impact and undermine investors’ confidence in banks, but shall also have an impact on the economy at a macro level.

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SBI should be able to build a book of Rs 2,000 crore through expanded ECLGS: Dinesh Khara

May 30, 2021 root Banking & Finance

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IBA chairman Rajkiran Rai G said the products have been standardised with approvals from all public sector banks’ boards last week.

The largest lender State Bank of India’s (SBI) chairman Dinesh Kumar Khara on Sunday said that as per preliminary assessment, the bank should be able to build a book of Rs 2,000 crore through expanded emergency credit line guarantee scheme (ECLGS). Khara made this comment at a joint press conference of SBI and Indian Bank’s Association (IBA) to launch standardised Covid loan products by public sector banks.

Earlier in the day, Finance Ministry had enlarged the scope of the Rs 3 lakh crore ECLGS to cover loans up to Rs 2 crore for setting up on-site oxygen generation plants at healthcare facilities and brought in the ailing civil aviation sector under its ambit.

Khara said that public sector banks have come up with three sets of products to build a ‘Covid book’ under Reserve Bank of India’s (RBI) liquidity scheme and the ECLGS. The relief measures include a healthcare business loan for setting up oxygen plants, healthcare facilities and unsecured personal loans for Covid-19 treatment.

The rate of interest for business loans given for setting up oxygen plant under ECLGS will be capped at 7.5%, and the repayment can be done in five years. The banks have not specified rates for other healthcare facility loans. However, the rate of interest will stand at 8.5% at SBI, Khara said. Apart from it, borrowers can avail loans of Rs 25,000 to Rs 5 lakh for Covid-19 treatment with a tenure of five years.

IBA chairman Rajkiran Rai G said the products have been standardised with approvals from all public sector banks’ boards last week.

He also said that customers opting for restructuring will have to apply for recast on the website or manually at a bank branch. RBI on May 5 had allowed lenders to carry out a fresh round of restructuring of retail and MSME accounts. The resolution process will be invoked in 30 days and the last day for invocation is September 30, 2021. Thereafter, the resolution plan will be implemented within 90 days, or latest by December 31, 2021. The moratorium period on loans will be a maximum of two years, starting soon after invocation.

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