Win23 Pill1B Banking NPA Badloans
Win23 Pill1B Banking NPA Badloans
org/Win23
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Red highlight.= I find them less important for the 2023 prelims
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2021: NaBFID: National Bank for Financing Infrastructure and Development was setup by an
law/act of Parliament, with an initial capital of ₹20,000cr capital.
⇒ NaBFID will get funding from RBI, Govt, Financial institutions, World Bank etc. It’ll also issuing
bonds in market etc
⇒ NaBFID will give loans worth ₹5 lakh crore in 3 years. It’ll help in National Infrastructure
�Ref: HDT-Pillar#5:Infrastructure)
Pipeline (NIP) project.(�
⇒ Chairman: K.V. Kamath.
⇒ HQ: Mumbai (Presently it is working from the office of SIDBI in Mumbai)
⇒ Regulator? RBI.
⇒ 2022: RBI ordered that NaBFID will be treated as All India Financial Institution (AIFI).
⇒ Thus, NABFID is the fifth AIFI after EXIM Bank, NABARD, NHB and SIDBI.
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सरकार ने क़ानून द्वारा बु�नयादी ढांचे और �वकास के �व�पोषण के �लए रा��ीय ब�क बनाया था. और उसे �रज़वर् ब�क द्वारा अ�खल भारतीय
�व�ीय सं �ान (एआईएफआई) का दजार् िदया गया है।
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🚩🚩🚩FAQ: How NeoBanks are similar or different than “DIGITAL BANKS”? Ans. ✋Not
important. When Startup-wallas want to attract inventors, they plant a lot of paid/PR/embellished
news items & columns with fancy terms like “NEOBANK” → it doesn’t automatically become
“exam worthy current affairs”…First of all let RBI/NITI/Finance Ministry/HC-SC etc make repeated
big headlines around this, then we’ll see. Observe previous years question papers. (�नवेशकों को आक�षत
करने के �लए �ाटर्अप क�नीओ द्वारा �चकने चुपड़े श�ों वाले समाचार �ांट िकए जाते ह�. तो वो अपने आप परी�ा के �लए काम का नहीं
बन जाता. पहले बड़े सरकारी सं �ानों द्वारा कु छ बड़ी बड़ी सु�खयां बटोरने दो िफर देख�ग.े )
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- Loan write off= banker removes a loan amount from the ‘asset-side’ of the bank balance sheet, to
save corporation tax (How? = we-are-not-here-for-CA-exam).
- Loan write-off doesn’t waive bank’s right to recover that bad loan
- It is merely an accounting exercise for tax-benefits. (कराधान म� कु छ �रयायतों के �लए िहसाबी प्रिक्रया क� जाती
है। हालांिक ऐसा करने के बावजूद भी ब�कर कजर्दार से पैसा वापस तो मांग ही सकता है)
- Loan write-off⏬ reduces the NPA% of the Bank (Because amount is written-off/cancelled from
balance sheet)
2022-Dec: Govt told Parliament that Banks write off loans worth Rs 11.17 lakh crore in last six years
⇒ Insolvency and Bankruptcy Code (IBC) has greatly helped fixing the NPA problems. (शोधन अ�मता
और िदवा�लयापन सं िहता ने अनजर्क-प�रसं प��यों को ठीक करने म� काफ़� मदद क� है)
⇒ IBC has solved nearly 6000 cases since its start in 2016.
⇒ IBC has improved the 1) behaviour of debtors in repaying loans, due to fear of loosing control of
company. (HOW? Explained in video) (कज़ार् देने वाले उद्योगप�तयों क� अहंकार म� भी कमी �ई है और वतर्न म� सुधार
आया है)
⇒ 2) IBC improved Ease of Doing Business. (�ापार करने म� सुगमता)
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Sr Organization Examples
1 Giving loans online and regulated by RBI Banks, P2P lenders
2 Giving loans online but regulated by Non-RBI bodies Venture Capital Funds (VCF)
regulated by SEBI
3 Giving loans online but not regulated by anyone / Some goonda/mafia opening
unauthorized digital lenders = their App will be shut online mobile app for giving
down. Legal action will be taken. online loans.
Note: RBI keeps releasing guidelines for digital lending. But daily-commentary not important.
Sufficient to know that such guidelines mostly deal with customer protection.
⇒ A lending/Loan Service Provider (LSP) is financial technology (Fintech) company that connects
borrowers with lender (Banks & NBFCs). e.g. Lazypay, Bank Bazaar, Paisa Bazaar
⇒ LSP helps the customer get the loan digitally.
⇒ RBI has issued guidelines to regulate this ‘digital lending’ market.
Exact guidelines are not important. Sufficient to know that RBI requires
⇒ 1) exorbitant interest cannot be charged.
⇒ 2) Such organisations have to appoint grievance redressal officers & clear the complaint within
stipulated time limit.
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कु छ �व�ीय प्रौद्यो�गक� (�फन-टेक) कं प�नयां एक तरफ़ कज़र् लेने वालों को, और दू सरी तरफ़ ब�क- एनबीएफसी के साथ �ड�जटल मा�म
से जोड़ती है। इस �ड�जटल कज़र् प्रणाली पर �रज़वर् ब�क कु छ स��या कर रही है।
13.2.2 Digital lending → FIRST LOSS DEFAULT GUARANTEE (FLDG) norm by RBI
What does above chart mean? Ans. Explained in the video lecture.
13.2.3 🚫🚫🚫🚫🚫Credit Information Companies (CIC) versus Credit Rating Agencies (CRA)
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Portal Description
CIC and CRA Learned in the previous section the previous session.
Information Utility (IU). Created by Insolvency and bankruptcy board of India (IBBI) with
help of National e-governance services Ltd (NeSL)
CRILC RBI has setup “Central Repository of Information on Large Credits
(CRILC)” for Loans above Rs 5 cr.
Banks & NBFCs have to submit weekly updates in this portal.
Public Credit Registry Proposed by RBI’s Yeshwant M. Deosthalee Committee. RBI yet to
(PCR) set it up.
NFIR Proposed in the Budget 2023. <Next section>
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रा�ी� य �व�ीय सूचना र�ज��ी बनाएं गे �जसम� ���यों और कं प�नयों द्वारा �व�भ� सं �ानों से �लए गए कज� क� सं पूणर् जानकारी होगी। तािक
भ�व� म� जब वह वापस लोन के �लए अज� डाले, तो �व�ीय सं �ान आसानी से और �ादा सटीकता से उनक� अ�जयों का �नपटान कर सक�
- ऐसा बजट 2023 ने कहा
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⇒ What does above chart mean? Ans. Explained in the Lecture Video OR this Youtube
⇒ Then HC and SC mein ball-by-ball commentary is going on regarding the repayment / justice to
AT1 bond holders in Yes Bank Scam.
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Globally (वै��क �र पे पैसा भेजना हो) Within India (भारत के भीतर ही पैसा भेजना हो!)
Society for Worldwide Interbank Structured Financial Messaging System (SFMS)
financial telecommunication (SWIFT)
By a Cooperative organization in designed by Tata Consultancy Services (TCS) for
Belgium’s La Hulpe city (1973). IDRBT (=Research arm of RBI)
To serve the messaging function for to serve the messaging function in NEFT, RTGS, and
Banks, NBFCs & brokers who may / may other inter-bank, intra-bank e-transactions
not have direct bank relations / platforms within India.
settlement systems with each other due to
international borders.
😥😥 Nations banned from SWIFT: 1) Iran (Capital Tehran) 2) 2022: Russia got ban, after invading
Ukraine. This will make it difficult for the Russian banks/ NBFCs /businessmen to send and receive
money internationally (यूक्रेन-आक्रमण के �ख़लाफ़ �स को ��फ़्ट-�व�ीय सं देश प्रणाली से प्र�तबं �धत िकया गया है �जसके चलते
�सी ब�क �व�ीय सं �ान और उद्योगप�तयों को अंतररा�ी� य �र पर पैसों के लेन म� िद�त� आएं गी।)
(a) Banks Board Bureau (b) RBI (c) Ministry of Finance (d) Management of concerned bank
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2. BBB recommends for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.
Codes: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
🚩🚩🚩FAQ: is this not unethical / big-joke to subvert court order by changing name of org?
Ans. Court has not banned FSIB yet. Govt did not bother to justify loudly in news headlines.
Columnist did not bother to loudly criticise. So, I did not bother to PHD.#🕰🕰थोड़ा-पढ़ो-आगे-बढ़ो
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