Lockdown 2.0: Coronavirus-hit units get Rs 10,000 crore from banks

Banks have built internal capacities for assisting companies, including micro, small & medium enterprises (MSMEs).

Ahead of finalising the package for industries hit by Covid-19, the Union finance ministry reviewed support extended by large public sector banks (PSBs), including via the emergency credit line, to affected firms. State Bank of India (SBI) and Bank of Baroda (BoB) have together sanctioned close to Rs 10,000 crore as immediate credit assistance to the affected units. PSB executives said this was a regular review with top officials of large banks, including SBI. There was also discussion on working capital re-assessment.

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have built internal capacities for assisting companies, including micro, small & medium enterprises (MSMEs). Feedback from interactions is expected to act as an input for policies that are in works.However, it is not clear when the package would be finalised, officials said. A SBI executive said the bank is giving these emergency loans to those in need. It does not involve elaborate scrutiny. Only thing is that borrowers have to establish the Covid impact.

ATM transactions may get costlier as operators seek hike in inter-bank fees

The representation is being led by National Payments Corp of India after meetings were conducted separately for private and public sector lenders

 

 

economy news: In a move that might potentially add some more burden on the common man, the automated teller machine (ATM) operators, especially those of the private banks, are demanding a raise in inter-bank charges for ATM transactions, citing demonetisation, an increased cost of operating the channel, and fewer withdrawals.

The representation is being led by the National Payments Corp of India (NPCI) after meetings were conducted separately for private and public sector lenders.

The inter-bank fee is charged by one bank from another for use of its ATMs by the customers of the other. Any raise in this leads to increased cost burden for banks with smaller ATM networks. If banks pass on part of this cost to consumers, the number of free ATM transactions they are allowed to make in a month at their bank or other banks' ATMs might get reworked.

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According to a Livemint report, the demand for raising the rate is being led primarily by private sector banks. Some large public sector banks are against an increase as it would lead to higher costs for them.

A banker from one such large public sector bank was quoted as saying that their charges were already high and if they increased it further, they would be bound to lose. Once they have ascertained the costs, they would discuss it with the stakeholders and fix the rate, he added.

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