RBI superseded boards of Srei Infra Finance and Srei Equipment Finance, and their insolvency process is expected to be IBC-like, as it was in DHFL’s case.
Proposed changes divert the borrower away from informal lenders and also show the RBI’s intent of giving the NBFC-MFIs a level-playing field in the financial system.
Newspapers are filled with ads of gold jewellery auction amid indications of economic distress faced by Indian households. But resurgence in gold prices could stem the auctions.
In India, with nearly every household owning gold jewellery in some quantity, gold loans are a preferred option at a time of widespread unemployment and loss of income.
Oaktree Capital Group has offered Rs 366.5 billion, up from Rs 310 billion in its previous bid for DHFL. Piramal Enterprises and Adani Group also improved their proposals.
A stronger NBFC sector, which has been struggling since a crisis in 2018 when a large financier unexpectedly defaulted, is key to helping staunch further trouble in the economy.
Becoming banks would give NBFCs access to low-cost deposits. But even after IL&FS crisis led to rising borrowing costs, no company applied for a bank licence.
Even before pandemic struck, India was in the midst of a slowdown as a NBFC crisis hurt new loans & took a toll on consumption, which accounts for 60% of GDP.
Along with crash in value of UST and Luna coins, Indian market for crypto assets also reeling under strict control imposed by government, with the imposition of TDS on all crypto transactions.
Doval's comments came at 4th Regional Security Dialogue on Afghanistan attended by national security advisors from Tajikistan, India, Russia, Kazakhstan, Uzbekistan, Iran, Kyrgyzstan & China.
Global order is in flux, and India is being wooed by all. It opens up economic, strategic & military possibilities unimaginable till recently. It is for India to take this opportunity.