Govt could raise deposit guarantee limit from Rs 1 lakh: Sitharaman | WeForNews | Latest News, Blogs Govt could raise deposit guarantee limit from Rs 1 lakh: Sitharaman – WeForNews | Latest News, Blogs
Connect with us

Business

Govt could raise deposit guarantee limit from Rs 1 lakh: Sitharaman

Published

on

Nirmala Sitharaman

New Delhi, Oct 14 : Finance Minister Nirmala Sitharaman on Monday said that she is closely monitoring the developments at Punjab and Maharashtra Cooperative (PMC) Bank and the government could consider raising deposit guarantee limit from existing Rs 1 lakh.

The Deposit Insurance & Credit Guarantee Corporation (DICGC) insures each depositor in a bank up to a maximum of Rs 1 lakh for both principal and interest as on the date of liquidation/cancellation of the affected bank’s licence or from the date of amalgamation/merger.

In this context post the PMC Bank scam which has left depositors worried, the minister said she had discussion with RBI Governor Shaktikanta Das that if deposit guarantee of Rs 1 lakh can be released instantaneously. But he informed that the deposit guarantee is released after the bank is closed and can not be released if the bank is a going concern, she added.

Sitharaman also said if the deposit guarantee limit from existing Rs 1 lakh is raised, it will be through Parliament.

She said that the RBI Governor has assured that customers’ interests will be protected.

The PMC Bank customers can now withdraw up to Rs 40,000 as the RBI enhanced limit late on Monday.

“The RBI Governor has assured me that he will keep the interest of customers in mind, and at the earliest try resolve and resolve it…I had discussion with RBI Governor this afternoon and I am closely monitoring it,” she said earlier while addressing media after meeting heads of public sector banks here.

The PMC Bank went bust allegedly after its exposure to near-bankrupt realty player HDIL, to which it has loaned over 70 per cent of its Rs 9,000 crore in advances. But it was not made public in the audit or was provided for or was classified as an NPA.

“Government has been on its toes in terms of bringing the assets of these promoters (indulged in fraud) of the bank… process will not suffer for want of enough assets which can eventually help paying back customers. In fact my appeal to Governor this afternoon was if there are so many assets, is there anyway RBI can expedite in terms of paying to customers who are genuinely suffering,” Sitharaman said.

Recently in wake of such crisis where common man deposits’ are concerned, it is being demanded to raise the insurance limit. “The current upper limit of Rs 1 lakh per depositor, we believe, has outlived its shelf life and there is a need to revisit it,” a State Bank of India research report, released earlier this month, said.

The report said the DICGC coverage should be revised and bifurcated into two categories – a desirable coverage of at least Rs 1 lakh for savings deposits which would cover around 90 percent of such accounts, and a desirable coverage of at least Rs 2 lakh for term deposits, which would cover around 70 percent of such accounts.

Business

WhatsApp rolls out first-ever global brand campaign in India

Published

on

By

whatsapp

New Delhi, July 4 : WhatsApp on Saturday launched its first brand campaign in India that narrates real stories about how Indians communicate daily on WhatsApp with their closest relationships.

The campaign called ”It”s Between You” gives thrust on WhatsApp”s commitment to privacy, the company said in a statement.

“With WhatsApp”s end-to-end encryption, we come closest to replicating real-life interactions and that”s when we can truly be ourselves. The conversations you have, the jokes you tell and the memories you relive belong to you and deserve to stay between you,” said Avinash Pant, Director, Marketing at Facebook India.

WhatsApp collaborated with Gauri Shinde, a celebrated Indian Bollywood director along with BBDO India to create two 60-seconds ads, each highlighting how WhatsApp”s features like texts, video calls or even a voice message, help replicate in-person conversations and bring people closer.

One ad is based on a true story about an elderly woman and her caregiver, who are now separated from each other.

“From how to bring together the cast and crew that were right for the part and happened to be living together, and directing over a WhatsApp video call, to doing all the post production work without being physically present, it”s been really rewarding,” said Shinde.

The second story is at the other end of the spectrum of emotion, which is a light and fun film about a younger sister giving joyful courage to her elder one through a WhatsApp video call, when the latter feels vulnerable and hesitant to give her a haircut at home.

“WhatsApp is designed to help friends and family communicate as well as help users connect with a business that is important to them,” said the company.

Continue Reading

Business

Govt to levy interest on late payment to MSMEs for GeM purchase

Published

on

By

Nirmala Sitharaman

New Delhi, July 3 : Government departments and agencies will have to pay interest on late payment to vendors, largely MSMEs, for products procured through the Government e-Martketplace (GeM), starting October 1.

Through an office memorandum, the Department of Expenditure of the Ministry of Finance on Friday said that if the payment is not made within 10 days of the Consignee Receipt and Acceptance Certificate (CRAC) being auto generated or issued by the buyer, the concerned department will have to pay interest at the rate of one per cent per month for the delayed payment.

However, this very interest will not go to the MSMEs concerned and instead, will deposited in an account maintained by the GeM, which will be used only for the education of buyers and sellers or public procurement with the prior approval of the Department of Expenditure, said the office memorandum.

“ln order to promote greater discipline and timeliness in payment to vendors, especially #MSMEs, the government has issued an order to levy interest on late payment to vendors on the government e-marketplace. #AatmaNirbharBharat,” said a tweet by Finance Minister Nirmala Sitharaman”s office.

The order will be effective on orders made from October 1, 2020.

Continue Reading

Business

Tomato prices skyrocket to Rs 70/kg in Delhi-NCR

He attributed the hike in the prices of all vegetables and fruits, not only tomatoes, due to the increase in diesel prices, which led to an increase in the transportation cost of vegetables.

Published

on

By

Tomato

New Delhi, July 3 : With the onset of the monsoon tomato prices soared to Rs 70 per kg in New Delhi and its surrounding areas on Friday.

Crop failure in the rainy season and the late arrival of tomatoes in the mandis (wholesale markets) have led to the price hike. However, the prices are expected to fall after the arrival of the new crop from Himachal Pradesh next week.

A month ago, the price of tomatoes in Delhi’s Azadpur mandi was between Rs 1.25 and Rs 4.75 per kg, while the wholesale price on Friday was Rs 6.44 per kg.

The model rate of tomato was Rs 3 per kg in Azadpur mandi on June 3, which has increased by 10 times to Rs 29 per kg. On July 2, the wholesale price of tomatoes rose to Rs 52 per kg in the mandi, which means there has been an increase of about 995% in the last one month. Due to the rise in wholesale prices, tomatoes were sold at Rs 80 per kg on Thursday in Delhi-NCR and Rs 50.70 per kg in Greater Noida.

Azadpur Agricultural Produce Marketing Committee (APMC) chairman Adil Ahmad Khan said prices have gone up due to late arrival of tomatoes. The quantity of tomatoes received at Azadpur mandi was 528.2 tonne on June 3 while on July 3 it was 281.6 tonne. The quantity has thus been reduced by nearly 50 per cent in a month. Only 241.9 tonne were received on July 2 due to which the wholesale price was Rs 6.52 per kg while the model rate was Rs 32 per kg, Khan added.

He attributed the hike in the prices of all vegetables and fruits, not only tomatoes, due to the increase in diesel prices, which led to an increase in the transportation cost of vegetables.

From next week, the arrival of the new crop from Himachal Pradesh will lead to a decline in the prices of tomatoes. He said at present 90 per cent of the tomatoes in Delhi arrive from Himachal Pradesh while only 10 per cent are received from Haryana and Karnataka.

The consumption of all green vegetables, tomatoes and onions has declined during the past few months because of the shutdown of hotels, restaurants, canteens and dhabas following the nationwide lockdown in the wake of the corona pandemic. This led to a marked fall in prices. The wholesale price of tomatoes had come down to less than one rupee per kg.

Continue Reading
Advertisement

Most Popular