Business of Banking: A bank raises money through deposits and lends it to borrowers. It makes money through the difference in the interest rates it charges from borrowers and what it pays to the depositors. This is based on the premise that not all depositors will demand their money back at the same time. Regulators … Continue reading The Idea of a Bad Bank
RBI Loan Restructuring Scheme
What is Restructuring? RBI recently announced to open a restructuring window for stressed loans. Those accounts which had been in default for not more than 30 days as on March 1, 2020, can be restructured if the borrowers are unable to service them because of their businesses being affected by the Covid-19 pandemic. RBI has … Continue reading RBI Loan Restructuring Scheme
Explained: Moratorium on Loans
What is Moratorium Moratorium here meant that the borrower can choose not to pay Interest and Principal due for the time decided. Payments are deferred.RBI has allowed Banks and NBFCs to offer Moratorium to all Term loans. Term loans here will include all kinds of retail loans such as vehicle loan, home loan,Credit card and … Continue reading Explained: Moratorium on Loans
