Reserve Bank of India – Press Releases

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The Reserve Bank of India (RBI) has imposed, by an order dated August 23, 2021, a monetary penalty of ₹27.50 lakh (Rupees Twenty Seven Lakh and Fifty Thousand only) on Dhanlaxmi Bank Ltd., Thrissur, Kerala (the bank) for contravention of sub-section (2) of section 26A of the Banking Regulation Act, 1949 (the Act) read with paragraph 3 of The Depositor Education and Awareness Fund Scheme, 2014 (the scheme) enclosed with RBI Circular on ‘The Depositor Education and Awareness Fund Scheme, 2014 – Section 26A of Banking Regulation Act, 1949- Operational Guidelines’ dated May 27, 2014. The penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Act.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial position as on March 31, 2020, and the examination of the Risk Assessment Report and Inspection Report pertaining to the same, revealed, inter-alia, contravention of above-mentioned provisions of the Act read with the scheme. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention of the provisions of the Act read with the scheme, as stated therein.

After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of contravention of aforesaid provisions of the Act read with the scheme was substantiated and warranted imposition of monetary penalty on the bank.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/731

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Reserve Bank of India – Tenders

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E-tenders were invited for Design, Supply, Installation, Testing and commissioning of UVGI System for Air Handling Units (AHUs) at Main Office Building, RBI, Hyderabad after publishing the NIT in Newspaper and on the Bank’s website. As per the schedule, pre-bid meeting was conducted on August 17, 2021.

2. Representatives of Integrated Cooltech Private Limited, Blue Star Limited, Voltas Limited, and ETA Engineering Private Limited attended the meeting. Various points and clarifications were discussed from our side and vendor’s side. Following main points were discussed:

  1. Measurement of intensity/dose shall be done by the contractor after completion of work at site.

  2. Bar Chart for completion of the work should be submitted within the contractual completion period from the tenth day of letter of intent. Such chart shall include all activities like the date of supply of material at site, item wise completion of work etc., and obtain the approval of the Bank.

  3. The tenderer need to submit the detailed design calculation preferable with simulation reports indicating the number of UV lamps, Wattage, Intensity and Dose of the system so as to meet the tender specification.

  4. UV lamps and Ballasts should be UL/CE certified and the lamp output shall not drop by more than 20% after 9000 hours of operation.

  5. Individual lamp On/Off Indicator, lamp failure, individual lamp usage meter (Hr) and main power on/off switch shall be provided in the control panel.

  6. In Section-III para 3.8.5 of the tender document, minimum 4016 µW/Cm2 may be read as minimum average 4016 µW/Cm2.

  7. In section VII para 7.5 (d), 100μW/cm2 may be read as 4016 µW/Cm2.

  8. In terms of para 3.8.1 in Section III of tender, “the air quality after the work will be checked for effectiveness of the newly installed systems.” This may be read as “Testing of Air quality is to be conducted before and after installation of UVGI, after taking swab samples from the coil surface. The testing is to be conducted by an NABL approved agencies. Test-reports are to be submitted to the Bank to showcase the effectiveness of the installation.

3. Representatives of the firms were advised to follow the important instructions provided in the tender document and adhere to the prequalification criteria and all terms and conditions mentioned therein.

4. The Prospecting bidders were informed that the working hours will be 10.00 AM to 6.00 PM on working days i.e., Monday to Friday. Decision of working on holidays will be taken as per the convenience of the Bank.

5. All the above points were noted and agreed by the firms.

6. AGM (Tech-Electrical) ended the meeting with vote of thanks.

Please note:

(i) This document (minutes of the Pre-Bid Meeting) shall form a part of the tender.

(ii) Rest of the terms and conditions and specifications of the bid document shall continue to remain the same.

(iii) The above amendments/ clarifications are issued for the information of all the intending bidders.

(iv) The submission of bid by the firm shall be construed to be in conformity to the bid document and amendments/ clarifications given above.

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Centrum Financial Services to set up SFB to take over PMC

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Centrum Financial Services Ltd (CFSL) has initiated the process of establishing a small finance bank (SFB), which will eventually take over the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank, by taking steps towards creating necessary infrastructure in this regard, according to the Reserve Bank of India (RBI).

The RBI had accorded “in-principle” approval to CFSL on June 18, 2021, to set up an SFB. This approval was in specific pursuance to CFSL’s offer in response to PMC Bank’s Expression of Interest (EoI) notification.

CFSL, which is a non-banking finance company, and Resilient Innovations Pvt Ltd (BharatPe), which is a fintech company, are equal partners in setting up the SFB.

Petition nixed

In an additional affidavit filed in the Delhi High Court in the Bejon Kumar Mishra (petitioner) versus Union of India & Others (Respondents) case, RBI said: “It is envisaged that Central government will be approached for approval and notification of a scheme of amalgamation of PMC Bank with the proposed SFB under Section 45 of the Banking Regulation Act after the proposed SFB starts functioning.” The RBI has sought the dismissal of the writ petition filed by Mishra

The central bank submitted that all efforts are underway to expedite the resolution of PMC Bank in the best possible manner and in the larger interest of all depositors of that Bank.

Also read: Depositors of PMC Bank still await clarity on withdrawals

Mumbai-based PMC Bank was placed under All Inclusive Directions with effect from close of business on September 23, 2019, on account of major financial irregularities (fraud perpetrated by a real estate group), failure of internal control and systems of the bank and wrong/ under-reporting of its exposures under various off-site surveillance reports.

The bank has been under directions for close to two years now and depositors, especially senior citizens, have been finding it difficult to make ends meet.

Deposit withdrawal has been capped at ₹1 lakh per depositor during the entire period the bank is under directions.

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Reserve Bank of India – Tenders

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E-Tender No. RBI/Nagpur/Estate/42/21-22/ET/55

Please refer to the tender notice for the captioned tender published on the Bank’s website on July 26, 2021 inviting application from eligible bidders through e-tender on MSTC Portal (https://www.mstcecommerce.com/eprochome/rbi/).

2. The last date for the tender submission has been extended till 02:00 PM of August 31, 2021 and Part I of the tender will be opened at 03:00 PM on August 31, 2021.

Corrigendum shall be treated as the part of the tender document. All other terms and conditions mentioned in the tender remain unchanged.

Regional Director
Reserve Bank of India
Nagpur

August 23, 2021

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RBI wants NAFCUB to expedite setting up of umbrella organisation to support urban co-operative banks

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The National Federation of Urban Co-operative Banks and Credit Societies Ltd (NAFCUB) should expedite the process of setting up the Umbrella Organisation (UO) so that it can provide support with regard to IT infrastructure, capital, liquidity, and training, to its member urban co-operative banks (UCBs), according to a Reserve Bank of India panel.

The small UCBs with the support of the UO can emerge the neighbourhood bank of choice, the RBI’s Expert Committee on UCBs, headed by former Deputy Governor of RBI NS Vishwanathan, said in a report.

“Therefore, the Committee suggests that the grant of new licences for setting up UCBs could be considered after the UO satisfactorily emerges as a stabilising arrangement,” it added.

The committee felt that in the long run, the UO may take up the role of a Self-Regulatory Organization (SRO) for smaller UCBs, where the UO could run an independent audit/ inspection and supervisory division that may conduct both offsite and onsite supervision.

The branding partner

The panel observed that the UO should be the branding partner for the member UCBs and both because of this and the business model itself, it has a significant systemic role.

The committee noted that membership of UO, once it becomes operational, would mitigate market and operational risks for UCBs in lower tiers to a certain extent and, therefore, the capital to risk-weighted assets ratio (CRAR) requirement can be brought down. However, a glide path should be provided to UCBs to achieve the higher CRAR.

UO membership

The report said that if a Tier-1 UCB (with less than Rs 100 crore deposits) meets the minimum net worth criteria of ₹2 crore for those having area of operation within a district/ ₹5 crore for other Tier-1 banks and is a member of UO, the minimum CRAR could be pegged at 9 per cent.

For Tier-1 UCBs, which meets minimum net worth criteria but is not a member of UO, and vice-versa, the minimum CRAR could be 11.5 per cent.

If a Tier-1 UCB does not meet the net worth criteria and is not a member of UO, the CRAR could go up to 14 per cent.

For Tier-2 UCBs (deposits between ₹100 crore and up to ₹1,000 crore), the minimum CRAR could be 15 per cent on credit risk. The minimum CRAR requirement may be reduced by one per cent point upon the bank becoming a member of the UO.

For Tier-3 UCBs (deposits between ₹1,000 crore and up to ₹0,000 crore), the minimum CRAR could be 15 per cent as applicable to small finance banks.

For Tier 4 UCBs (deposits above ₹10,000 crore), the minimum CRAR could as per Basel III prescriptions as applicable to universal banks.

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Reserve Bank of India – Press Releases

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A. Source Security 5.09% GS 2022 8.35% GS 2022 8.15% GS 2022 7.16% GS 2023 8.83%% GS 2023
B. Notified Amount (amount in ₹ cr) 2,000 2,000 2,000 2,000 2,000
Destination Security GOI FRB 2031 GOI FRB 2031 GOI FRB 2031 6.64% GS 2035 6.64% GS 2035
C. i. No. of offers received 16 9 3 1 7
ii. Total amount of Source Security offered (Face value in ₹ cr) 7,718.647 775 1,510 1,000 3,127.339
iii. No of offers accepted 1 7 2 0 1
iv. Total amount of source security accepted (Face value in ₹ cr) 2,000 315 810 NA 2,000
v. Total amount of destination security issued (Face value in ₹ cr) 2004.764 323.842 836.745 NA 2,214.481
vi. Cut-off price/yield for destination security 100.75/4.3820 100.47/4.4160 100.34/4.4319 NA 98.47/6.8112

Ajit Prasad
Director   

Press Release: 2021-2022/730

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Reserve Bank of India – Press Releases

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As announced in the Statement on Developmental and Regulatory Policies released along with the Monetary Policy Statement on February 05, 2021, Reserve Bank of India (RBI) had, on February 15, 2021, announced the constitution of an Expert Committee on Primary (Urban) Co-operative Banks under the chairmanship of Shri N. S. Vishwanathan, former Deputy Governor, Reserve Bank of India. The Expert Committee was required to examine the issues and to provide a road map for strengthening the sector, leveraging on the recent amendments to the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies).

The Committee has since submitted its report, a copy of which is being placed on the RBI website today for comments of stakeholders and members of the public. Comments on the report may be submitted by September 30, 2021 through email. RBI will examine the comments and suggestions before taking a final view on the recommendations made by the Committee.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/729

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Reserve Bank of India – Tenders

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Sr. No Queries Clarification 1 What is the carpet area that you are looking for? Please refer to the clause 12 – Minimum eligibility criteria (Sr. No. 2 Page 24). 2 Would you consider independent building or floor wise area? Please refer to the clause 12 – Minimum eligibility criteria (Sr. No. 3 Page 24) and clause 13 (A) – Scoring matrix criteria (Sr. No. 3 Page 28). 3 How much is your Budget? No specific budget. Bidder with highest score would be selected subject to the award criteria. [Refer clause 14 & 15] 4 Would you consider under construction or ready possession building? Under construction building is not acceptable. 5 If 80000 sq. ft. carpet Premises on outright is offered on 3 different floors would it be acceptable, they may not be contiguous in Bandra Kurla Complex. Please refer to the clause 12- Minimum eligibility criteria (Sr. No. 3 Page 24) and clause 13 (A) – Scoring matrix criteria (Sr. No. 3 Page 28). 6 Would you consider 80000 sq. ft. carpet offered on Leasing on one Floor in a new Building in Bandra Kurla Complex? No. RFP is for outright purchase only. 7 Whether skillet preses of 15000 sq. ft. to 20000 sq. ft. carpet area in Fort as independent building would be acceptable to you? Please refer to the clause 12- Minimum eligibility criteria (Sr. No. 2 Page 24). 8 Would Nariman Point Location be acceptable as an option? Please refer to the clause 12 (Sr. No. 1 Page 24). 9 Would Central Mumbai (Lower Parel) which has excellent railway connectivity also be a preferred option for RBI? Please refer to the clause 12 (Sr. No. 1 Page 24). 10 Would you look at a long lease like a 9 year or a 15 year lease, which can be renewed for further terms? No. RFP is for outright purchase only. 11 Would RBI also consider IT/ITeS developments at competitive terms? Please refer to the clause 12- Minimum eligibility criteria. 12 Is there any minimum and maximum floor plate size requirement? No. 13 Will you give preference to office developments where other banks are also located? Office space should meet minimum eligibility criteria specified in clause 12. 14 In Central Mumbai, will you give preference to developments which are walking distance from nodal railway station? Please refer to the clause 12- Minimum eligibility criteria and clause 13- Scoring matrix criteria. 15 If our commercial office building will qualify to participate in the bidding process? Please refer to the clause 12- Minimum eligibility criteria. 16 Any demo for submitting the bid / documents? Any contact person who can resolve the doubts? Two contact details along with mobile number already mentioned in the RBI manual but are sometimes not reachable. There is no demo. You can also contact MSTC at their helpdesk no. 022-22822789 or send e-mail at the email ids given on Page 5. 17 What is the process for submitting the EMD DD/submitting the proof of EMD NEFT? While it is mentioned in the Bid Document that manual Proof of payment to be uploaded with technical Bid documents in case of NEFT. Please refer to the clause 7-3 (Page 17). Accordingly, DD/BG are to be sent by post (or hand delivered) on the address of communication given in Schedule of events in such manner so as to reach the addressee on or before the specified time on the last date of submission of the Bid as given in the Schedule of events. Scanned copies (Proof of NEFT/DD/BG) are to be uploaded with the Technical Bid documents on the e-tendering portal. 18 As the building was built & occupied since the mid-1950s, in our understanding the Occupation Certificate was not a requirement back then, hence we do not have it. Please clarify. Other relevant documents need to be submitted to confirm authorised occupancy. [Refer Clause 12 Sr. No. 5 Page 25] 19 Since the building was built during the 1950s, the architect who was responsible for the construction / Original layout drawings are not available. Please advise. Please submit all the documents as listed in clause 8.1 (Page 18) and specify the documents not available clearly. As-built layout drawing by marking area offered may be submitted. 20 Our proposal is to transfer the land lease which is perpetual along with the building structure owned by us, the consent from the land owner while in principle has been agreed upon, the formal document may take some time. Please clarify. NOC from lessor has to be submitted. Please submit the documents as per timelines specified in the RFP. 21 The proposed building is on a free hold land but it is on a perpetual lease to us. We own the building structure. We propose to transfer the land lease along with the structure owned by us. Please advise on the documents required. Document list is given in clause 8 (Page 18). The Bank may ask for any other necessary documents that may be required. 22 Considering that the building offered is a stand-alone building, all features such as entrance lobby, staircases, lifts and sanitary shafts, lift lobbies, common toilets, watchman room, pump room, overhead tank, generator rooms, air- conditioning plant rooms, AHU etc. are all dedicated to the occupier of the building. Hence, we propose that these features should be a part of the carpet area calculations. Please advise. Please refer to Page 26. Carpet area shall be calculated as per the provisions of Maharashtra RERA Circular No. 4 of 2017 dated 14.06.2017 on ‘Calculation of Carpet Area’. 23 Is zip file the right format to submit the bid documents? No. You can upload multiple files as per format acceptable in MSTC Portal like PDF, etc. 24 In case the bidder plans to leave behind movable furniture, is there any format other than Annexure 9 in which it should be captured in the Bid Document. Please advise. Movable furniture will not be a part of Bank’s consideration. 25 Due to the ongoing Pandemic situation, we believe it may take us more time to secure all the necessary documents and processes. Would we be allotted additional time to submit supporting documents for responses to the queries listed in Annexure 4? Please submit the documents as per timelines specified in the RFP. 26 In the event we are selected, we would want to propose a tripartite agreement for the transfer of lease and the transfer of ownership of the building. In addition, the sale consideration might require to be split between the parties. What is RBI’s thought process regarding the same? Where the bidder is in possession/ownership of the property as a lessee under a subsisting lease agreement, then a tripartite agreement with the bidder (lessee) and the Lessor is acceptable. However, sale consideration will be paid to the bidder only. 27 Please clarify the payment schedule. Will there be any form of part payment made at the time of agreement execution? We would require a 30% of the sale proceed at the time of agreement execution while balance 70% can be at the time of handover of premises. Please refer to terms of payment (page 8). No change is acceptable. 28 Is there any format for the consent form in Annexure 4.2, Sr No 5? No 29 Would RBI consider BPT land lease as lately BPT has not renewed the land lease? Please refer clause 12 (Sr. No. 5 on page 25 and Sr. No .12 on page 26) 30 Would RBI consider new building with no OC? No. 31 Can we propose a property available in Kalina? Please refer to the clause 12 (Sr. No. 1 Page 24) 32 Area asked in tender for purchase of flats is in BKC or in Fort. There are commercial areas in nearby BKC area like Kalina etc. Can we bid for the same. Please refer to the clause 12 (Sr. No. 1 Page 24) 33 Only 1.5 Km distance from Fort office is permissible. Please increase the same as on the lines of BKC like 4 to 5 km. No change in RFP conditions is acceptable. 34 Nearest station is railway station. Please consider Metro Station also for the same. No change in RFP conditions is acceptable. 35 Valuation report has been expected from the bidder for financial Bid. Normally it is done by purchasing Party. Also market valuation can vary. So request you to cancel this pre requirement. No change in RFP conditions is acceptable. 36 210 days is too long time for validity. Please reduce the same as much as possible. To hold the premise for so long time without any confirmation is little difficult. At Least please give us the breakup of the time line for the process. No change in RFP conditions is acceptable as time-period of validity was considered based on internal assessment on various activities including procedural requirements. 37 We believe that the continuous floors will do for purchase. Please clarify. Please refer to the clause 12- Minimum eligibility criteria (Sr. No. 3 Page 24) and clause 13- A Scoring matrix criteria (Sr. No. 3 Page 28). 38 Structural stability report is pre-requisite for the new building. So having the recent structural stability report will not require in case of new building. Please clarify. Needs to be submitted. 39 In case the property is offered by individual client (Other than builder) than will you need the data like experience in real estate etc for builder or individual client. No, only if developer is bidding as indicated in clause 13 (B) (Sr. No. 9 Page 31) 40 Brief description of equipment has been sorted along with the premise. we presume it is optional. Like we can sell bare shell also. Please clarify the same. As per clause 12, offered premise should meet minimum eligibility criteria. 41 Can one consultant represent two landlords for two separate bids? Please refer to Page 9, only one offer is allowed to be submitted per bidder in MSTC portal.

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Reserve Bank of India – Press Releases

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The Reserve Bank of India (RBl) has imposed, by an order dated August 18, 2021, a monetary penalty of ₹20.00 lakh (Rupees Twenty Lakh only) on The N.E. & E.C. Railway Employees’ Multi-State Primary Co-operative Bank Limited, Gorakhpur, Uttar Pradesh (the bank) for contravention of section 36 (1) read with section 56 of the Banking Regulation Act, 1949 as the bank failed to adhere to specific directions issued to it by RBI under Supervisory Action Framework (SAF). This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The inspection report of the bank based on its financial position as on March 31, 2019, revealed, inter alia, non-adherence/violation of specific directions issued to the bank by RBI under Supervisory Action Framework (SAF). Based on the report, a Notice was issued to the bank advising it to show cause as to why penalty should not be imposed for violation of the said directions.

After considering the bank’s reply and oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of non-adherence/violation of RBI directions was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/728

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SBI Global Ed-Vantage loan: Check Details OF SBI Education Loan

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Planning

oi-Sneha Kulkarni

|

The State Bank of India is one of our country’s largest public money lending financial organizations. They have changed the money loan business throughout the years, assisting millions of students in realizing their ambition of studying abroad.

The State Bank of India has established an abroad loan designed specifically for scholars who aspire to study full-time at foreign colleges and universities. The SBI Global Ed-Vantage loan, according to the lender, intends to assist students who desire to attend courses overseas in order to achieve their career ambitions.

SBI Global Ed-Vantage Loan: Check Details Of SBI Education Loan

This loan is available to students in the range of Rs 7.50 lakh to Rs 1.50 crore. The loan will have an interest rate of 8.65%, with a 0.50 percent discount for female applicants.
SBI offers an education loan with a low-interest rate and a student-centric mindset when it comes to loan tenure marking.

Because of its low-interest rate, flexible repayment alternatives, moratorium period, income tax benefits, interest rate discount for female students, and other benefits, an SBI Education loan is the preferred option for most students.

SBI Global Ed-Vantage loan

The loan is available to students who plan to pursue standard graduate degrees, post-graduate degrees, diplomas, certificates, or Ph.D. programs. The United States, the United Kingdom, Australia, Canada, Europe, Japan, Singapore, Hong Kong, and New Zealand are among the countries covered by this loan.

The loan will be approved before the student receives their I-20/visa, and it will be tax-free under Section 80. (E).

After the course is completed, repayment will begin six months later. A maximum of 15 years can be used to repay the loan.

What is Covered under the loan?

Travel expenses, tuition fees, exam/library/lab fees.
Reasonable costs of books/equipment/instruments/uniform/computer fees.
Costs of additional requirements such as project work/thesis/study tours not exceeding 20% of total tuition fees.
other expenses such as caution deposit/building fund/refundable deposit supported by institution bills/receipts not exceeding 10% of total tuition fees.

Collateral or Security

A candidate may be able to furnish tangible collateral security.
Third-party collateral security (not provided by parents) can also be accepted.

Highlights of SBI Global Ed-Vantage loan

  • Higher: Loan amount upto Rs. 1.50 Crores
  • Easier: Repayment through EMI up to 15 years
  • Early Approval: loan sanction prior to i20/Visa
  • Tax Benefit: under section 80(E)
  • Minimum Loan Amount: Above Rs. 7.50 Lacs
  • Maximum Loan Amount: Rs. 1.5 Cr
  • Margin: Scholarship/assistantship to be included in margin.
  • Margin to be brought in on a year-on-year basis as and when disbursements are made on a pro-rata basis.
  • Processing Fee: Rs. 10,000/- per application.
  • Simple Interest will be charged during Course Period + Moratorium Period

Story first published: Monday, August 23, 2021, 18:01 [IST]



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