Lockdown 2.0: Coronavirus-hit units get Rs 10,000 crore from banks

Ahead of finalising the package for industries hit by Covid-19, the Union finance ministry reviewed support extended by large public sector banks (PSBs), including via the emergency credit line, to affected firms.

 State Bank of India (SBI) and Bank of Baroda (BoB) have together sanctioned close to Rs 10,000 crore as immediate credit assistance to the affected units.

PSB executives said this was a regular review with top officials of large banks, including SBI. There was also discussion on working capital re-assessment.

Banks have built internal capacities for assisting companies, including micro, small & medium enterprises (MSMEs). Feedback from interactions is expected to act as an input for policies that are in works.

However, it is not clear when the package would be finalised, officials said. A SBI executive said the bank is giving these emergency loans to those in need. It does not involve elaborate scrutiny. Only thing is that borrowers have to establish the Covid impact.

Fintech committee recommends new legal framework for consumer protection

Current Affairs
A panel on issues related to financial technology (fintech), in its report submitted to Finance Minister Nirmala Sitharaman on Monday, has recommended a new legal framework for consumer protection.
The framework encompasses fintech and digital services, a National Digital Land Records Mission, a unified database (stacks) for small industries and the agriculture sector, removing discriminatory regulatory barriers in digital payments infrastructure, and allowing non-banking financial companies (NBFCs) into agriculture credit.
The Steering Committee on fintech-related issues has also suggested cash flow-based financing for micro, small and medium enterprises (MSMEs); using drones and remote sensing to assess risk in agriculture credit and insurance; increasing the use of artificial intelligence among state-owned banks; and regulatory and legislative changes to enable fixed deposits and other financial instruments to be issued in dematerialised form and allowing their frictionless use as collateral.
Several proposals in the report are in line with the government’s intention to create and maintain central databases for different sectors. A similar proposal was put up in the recently proposed national digital health blueprint, to create a HealthStack. The panel also recommends using blockchain, which was also one of the main suggestions of a committee on digital currency. The fintech panel was announced by former finance minister Arun Jaitley in his 2018-19 Budget.
Fintech committee recommends new legal framework for consumer protection

 The panel is headed by the secretary to the Department of Economic Affairs and includes the secretary to the Ministry of Electronics and Information Technology...Read More