- Armed with Sec 35AA/AB (new NPA ordinance), RBI has picked up 12 defaulters for insolvency proceedings, SBI & few others are also approaching NCLT for a few other ones. This is expected to suddenly pile up a lot of cases for NCLT to handle effectively. The number of benches, doubling of members of single member branch etc can be an impediment to faster resolution. Anyway, it will be at least 3-6 months, before any order can be expected from NCLT. Obviously, the orders can be contested at NCLAT, the appellate body. Going be past precedence, bankers will be wary of long haul as more cases are moved to courts/ NCLT.
- Finance Minister has promised to share publicly the names of largest 12 defaulters identified by RBI
- RBI places restriction on banking activities of CBI (Central Bank of India) due to worsening of NPA
- ‘Yes’ bank partners with TerraPay for faster process of international remittance. Remittance is one of the larger contributors to the payment market share
- The Union cabinet has approved introduction of a bill in parliament which when passed will pave the way for setting up of the Resolution Corporation. Resolution corporation will deal with bankruptcy cases in financial services including banks, insurance. This along with the insolvency code is expected to provide a comprehensive resolution framework. This will also repeal the earlier Deposit Insurance & Credit Guarantee Corporation Act of 1961 and its power will get transferred to the Resolution corporation
- Germany’s top central banker, Bundesbank president, has warned of dangers from digital currencies, Mr Weidmann quote “Allowing the public to hold claims on the central bank might make their liquid assets safer, because a central bank cannot become insolvent. This is an feature which will become relevant especially in times of crisis – when there will be a strong incentive for money holders to switch bank deposits into the official digital currency simply at the push of a button. But what might be a boon for savers in search of safety might be a bane for banks, as this makes a bank run potentially even easier”. Making payment system better & faster can kill the need for digital currency, is what the central banker believes.
- 3 top bankers from US, Goldman Sachs, Citi and Barclays, are the latest to fall victim to email hoax. These emails are designed to make the receiver feel it has come from a genuine senior executive but are hoax emails. While the consequence did not turned out to be that frightening but the fact that they could hoax the top honchos is a sign of coming challenges of the digital medium
- There are rumors that former Goldman Sachs President, Gary Cohn who is also currently Trump’s economic advisor is in the race to take over the position of Fed Chairman Janet Yellen once her term ends in Jan-18. Janet may as well be given 2nd term considering that Trump has been ok till now with her
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