Reduction of Cash Usage

The Reserve Bank of India is in discussions with the central government for the reduction of cash usage. RBI is looking at various ways to incentivise cashless transactions. The government as well as the RBI are doing many things to promote cashless transactions. At present, a commission of up to 2 per cent is charged for card transactions.

RBI eases rules for sale of bad loans to ARCs

The Reserve Bank of India has decided to ease the provisioning norms relating to loses arising out of sale of bad loans to asset reconstruction companies (ARCs). The RBI has now allowed banks to spread losses on sale of bad loan to such ARCs up to March 2016. Previously it was up to March 2015.

RBI wins battle to keep debt management role

The Reserve Bank of India has won its biggest battle in its 80-year history. The Union Finance Ministry is reworking its proposal for setting up the Public Debt Management Authority. The new Authority will be having limited powers. It will take over merely the “front office” for the management of the Centre’s borrowings. The control over the “back office” will remain with the RBI.

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