Weekly Banking Awareness | October 2024 - 1st Week | Current Affairs | RBI Grade B | Bank PO Exams

Summary

This video covers a series of significant financial updates, including IDBI Bank's Sugam Scheme for settling non-performing retail loans, a ₹31,673 crore loan secured by the Mumbai Metropolitan Region Development Authority to develop key infrastructure projects, and the introduction of auto-replenishment for UPI-linked mobility cards. It also highlights ONGC’s ₹3 lakh crore financing agreement with the Rajasthan government for infrastructure, and a US-based development finance corporation’s investment of $272 million in India, targeting micro-enterprises, women-owned businesses, and green projects. These initiatives demonstrate strategic efforts in advancing infrastructure and fostering economic growth.

Takeaways

• 😀 IDBI Bank has launched the Sugam Scheme, a one-time settlement (OTS) plan to recover non-performing loans (NPA) for borrowers with outstanding principles between ₹10 lakh and ₹10 crore as of March 31, 2021.
• 😀 Borrowers under the Sugam Scheme must pay 10% of the settlement amount by December 2024, with the balance due within 90 days, by March 2025.
• 😀 Individuals with loans under corporate guarantees, vendor bill discounting, or insolvency proceedings are not eligible for the Sugam Scheme.
• 😀 Mumbai Metropolitan Region Development Authority (MMRDA) has secured a ₹31,673 crore loan from Power Finance Corporation to fund nine key infrastructure projects in the Mumbai Metropolitan region.
• 😀 One of the major infrastructure projects in Mumbai is the Tani Borali twin tunnel project, costing ₹15,000 crore.
• 😀 The RBI has introduced a rule for auto replenishment for UPI recurring payments, specifically for Fastag and National Common Mobility Cards (NCMC). This feature allows automatic top-up when balances fall below a set threshold.
• 😀 UPI autopay execution for NCMC and Fastag will no longer require a 24-hour pre-debit notification due to the new auto replenishment feature.
• 😀 R.E. Limited has signed a ₹3 lakh crore financing agreement with the government of Rajasthan to fund power and non-power infrastructure projects over the next six years (until 2030).
• 😀 The ₹3 lakh crore loan from R.E. Limited will be provided in annual installments of ₹50,000 crore until 2030.
• 😀 The U.S.-based Development Finance Corporation (DFC) plans to invest $272 million in India, focusing on microenterprises, women-owned businesses, green energy projects, and small & medium-sized enterprises.

Q & A

What is the Sugam scheme launched by IDBI Bank?

The Sugam scheme is a one-time settlement (OTS) scheme introduced by IDBI Bank to recover non-performing retail loans (NPAs). It offers borrowers with outstanding loan amounts between ₹10 lakhs and ₹10 crores, classified as NPA as of March 31, 2021, a chance to settle their debts by paying a reduced amount.

What is the eligibility criteria for the Sugam scheme?

The Sugam scheme is available for borrowers whose outstanding principal amounts fall between ₹10 lakhs and ₹10 crores and are classified as NPAs as of March 31, 2021. However, certain borrowers like those under vendor finance, corporate guarantees, or the National Company Law Tribunal (NCLT) cases are excluded.

What is the deadline for payment under the Sugam scheme?

The borrower must pay at least 10% of the settlement amount by December 2024. The remaining amount should be paid within 90 days, with the final payment to be completed by March 25, 2025.

What is the purpose of the loan secured by MMRDA from Power Finance Corporation?

The Mumbai Metropolitan Region Development Authority (MMRDA) secured a loan of ₹31,673 crores from Power Finance Corporation to accelerate the development of nine key infrastructure projects in the Mumbai Metropolitan region, including major projects like the Tani Borali twin tunnel.

How will the ₹31,673 crore loan for MMRDA be distributed?

The loan will cover 80% of the total project cost, while the remaining 20% will be funded through government grants and MMRDA resources.

What is the Tani Borali twin tunnel project?

The Tani Borali twin tunnel project is one of the major infrastructure projects in Mumbai, costing ₹15,000 crores. It is part of the nine projects funded by the loan secured by MMRDA.

What is the new UPI autopay rule introduced by the RBI?

The RBI introduced an auto-replenishment option for UPI recurring payments, particularly for National Common Mobility Cards (NCMC) and Fastag. This feature automatically tops up the balance when it falls below a set threshold, removing the need for a pre-debit notification.

How does the auto-replenishment feature work for NCMC and Fastag?

Customers can set a threshold (e.g., ₹2,000), and when the balance of their NCMC or Fastag account falls below that amount, the system will automatically replenish the balance by debiting funds from the customer's bank account.

What is the agreement between RE Limited and the Government of Rajasthan?

RE Limited, a Maharatan company, signed a ₹3 lakh crore financing agreement with the Government of Rajasthan on October 1, 2024. This funding will support infrastructure projects, with ₹50,000 crore allocated per year for up to six years, until 2030.

What projects will the ₹3 lakh crore funding for Rajasthan support?

The ₹3 lakh crore funding will support power and non-power infrastructure projects in Rajasthan, spanning a period of six years until 2030.

What are the investment plans of the US-based Development Finance Corporation in India?

The US-based Development Finance Corporation plans to invest around $272 million in India. The investments include $40 million for APAC Financial Services, $50 million for InCredit Financial Services to support women-owned businesses, $15 million for green energy projects, and $40 million for small and medium-sized enterprises (SMEs) through Ergo Capital Limited.

How will the $272 million investment in India be allocated?

The investment will be distributed as follows: $40 million for APAC Financial Services to support low-income enterprises, $50 million for InCredit Financial Services to provide loans to women entrepreneurs, $15 million for sustainable and green energy projects, and $40 million for small and medium-sized enterprises through Ergo Capital Limited.