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Time of India
2 days ago
- Business
- Time of India
Fast-track migration to ISO 20022 to avoid cross-border payments rejection: IBA to banks
Synopsis The Indian Banks' Association (IBA) has urged banks to expedite the implementation of SWIFT ISO 20022 norms to avoid cross-border payment issues. IBA Chief Executive Atul Kumar Goel emphasized the importance of starting migration by August 2025. Banks risk message rejections and customer impact if they delay, as the coexistence period ends November 2025.
Time of India
08-07-2025
- Business
- Time of India
Student loans: Government orders faster approvals for education loans in 15 days; PSBs told to clear all backlogs till May
This is an AI-generated image, used for representational purposes only. The finance ministry has asked public sector banks to fast-track education loan applications, directing them to process requests within 15 days of submission. Banks have also been told to set up a centralised credit processing system with clear internal procedures to ensure timely approvals, according to people familiar with the matter. If a loan application is rejected or returned, the decision must now be approved by a higher authority and the student must be clearly informed of the reasons, the sources said, according to ET. "A series of meetings have been held with banks over the last two months to discuss delays in the processing of education loan applications," an anonymous government official said, as quoted by ET. The source further added that it would be ensured by the lenders that decisions are made within three to five working days. While most banks currently take up to a month to process education loans, the ministry wants this timeline shortened. Sanctions will continue to depend on proper documentation, the presence of a co-applicant or guarantor, and other eligibility factors. Disbursements will be made in instalments, directly to the educational institution. Banks have also been instructed to clear all pending applications up to May and submit a detailed status report. The push comes after the government received several complaints about delays. 'There were some cases where loans were sanctioned, but disbursals were on hold due to unsatisfactory documentation. Those cases have also been put on the fast track,' the official added. To streamline the process, banks have been told to stick only to documents listed under the Indian Banks' Association 's Model Education Loan Scheme. A senior bank executive said lenders are now working to align their internal systems with the Vidya Lakshmi portal to speed up operations. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
07-07-2025
- Business
- Time of India
Government tells PSBs to clear education loans within 15 days, streamline approvals
The finance ministry has directed public sector banks to process education loan applications within 15 days of submission and establish a centralised credit processing system with clear internal standard operating procedure for expeditious approvals, said people familiar with the matter. In case of rejection or return of a loan application, it must be approved by the next higher authority and clearly communicated to the student with reasons for the decision, they said. "A series of meetings have been held with banks over the last two months to discuss delays in processing of education loan applications," a government official said on condition of anonymity, adding that it has been decided that lenders will ensure decisions on loan applications are made within three to five working days. Sanction of education loans is based on proper documentation and depends on other factors including co-applicant or guarantor. The disbursement is done in stages as per demand directly to the educational institute. The average time for most banks in normal course is within a month. Live Events Banks have also been directed to clear all cases pending till May and submit a status report. The move follows several representations to the government on the issue. "There were some cases where loans were sanctioned, but disbursals were on hold due to unsatisfactory documentation. Those cases have also been put on the fast track," the official said. Banks have been told to seek only those documents that are stipulated by Indian Banks' Association Model Education Loan Scheme. A senior bank executive said that lenders had already begun aligning their loan operating system with the Vidya Laxmi portal.
Mint
30-06-2025
- Business
- Mint
Govt asks private lenders to boost participation in financial inclusion schemes
The Union finance ministry on Monday exhorted private sector banks to increase their participation in financial inclusion schemes and serve the marginalized sections of society by fulfilling their banking needs. The call came during a review meeting with senior officials of private sector banks in New Delhi. Indian Banks' Association chief executive Atul Kumar Goel and senior officers of the department of financial services also attended the meeting chaired by department secretary M. Nagaraju. The meeting reviewed the performance of private banks on various financial inclusion schemes, including Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, Pradhan Mantri Mudra Yojana, Stand Up India, PM Street Vendor's AtmaNirbhar Nidhi and PM Vishwakarma. The meeting also reviewed the progress of opening of brick and mortar branches of banks and deployment of Banking Correspondents in unbanked villages. During the course of the review, the financial services secretary stressed upon fast settlement of claims under Jansuraksha schemes, augmentation of banking infrastructure in rural areas and north-eastern region of the country. He also underlined the significant progress made in expanding social security and deepening financial inclusion in the country through various flagship schemes of the government. The finance ministry also urged banks to actively engage and extend support for three-month financial inclusion saturation campaign (1 July-30 September) across all village panchayats. The secretary also discussed in detail the progress made by private banks in deepening of financial inclusion and urged them to increase their participation in financial inclusion schemes.
India Today
16-06-2025
- Business
- India Today
Degrees on credit: Will students pay for their education in shares?
According to the recently released NEET UG 2025 results, over 12 lakh students have qualified for an MBBS seat in India, and another 11 lakh candidates have cleared the JEE Mains 2025 for engineering. There's high demand for MBAs too, with nearly seven lakh students enroling in postgraduate management courses each what's the cost of these ambitions?A private medical degree can cost up to Rs 1 croreAn engineering degree: Rs 24 lakhA management course: Rs 40 lakhadvertisementOn top of that, Indian students are expected to spend approximately $70 billion annually on overseas education by 2025, with that figure projected to rise to $125 billion by 2030, according to the Indian Student Mobility Report. India's higher education sector has also grown. The All India Survey on Higher Education (AISHE) report of 2021–22 found a jump in student enrolment from 3.42 crore in 2014–15 to 4.33 crore in 2021–22. Private universities, too, are booming. Their numbers climbed from 276 in 2015–16 to 473 in 2021–22, as per the Economic Survey report of 2023–24. But this growth comes with a caveat: cost. A three-year undergraduate degree in Political Science at Ashoka University, for instance, costs 36 lakh. Private universities are booming; their numbers climbed from 276 in 2015–16 to 473 in 2021–22. Credit: Vaani Gupta advertisementTHE LOAN TRAPGone are the days when a parent's savings alone could cover higher education costs. Today, it is found that families take out large loans, they borrow from relatives, or are compelled to sell property in the hope that a prestigious degree for their children would lead to a lucrative career option. According to RBI, the outstanding student education loan amount was pegged at Rs 1.31 lakh crore as of November 2024. A 17% increase over the previous year. The Indian Banks' Association also noted that loan disbursements grew at a 10% CAGR from 2015 to 2023, crossing 25,000 crore repayment is a concern. Education loan NPAs (non-performing assets) stood at 7.61% in FY20, indicating that many borrowers struggle to pay back what they MODELSMany countries are exploring alternative financing models, such as crowdfunded education investment, skills-based repayment plans, equity-based education financing, human Capital Contracts (HCCs), and even Income-Share Agreements (ISAs). This is where students commit a fixed percentage of their future income instead of repaying a traditional loan.'In 2019, a Forbes study revisited Milton Friedman's 1955 idea of Income-Share Agreements,' explains Dr. Girish Jain, Professor of Finance and Chairperson of Admissions at BIMTECH, Greater Noida. He points to Purdue University's 'Back a Boiler' program, which launched in 2016, where one engineering graduate chose an ISA over a conventional loan, agreeing to pay 8% of his salary for 10 years, capped at a reasonable NEP OPPORTUNITYadvertisementDr. Jain believes that for these models to work in India, financial literacy must be embedded in higher education alongside scholarships, boot-camps, and government support. The National Education Policy (NEP) 2020, which targets 50% gross enrolment in higher education by 2035, could become the framework for these financing Inc. could also play a game-changing role. Dr. Jain shares a compelling vision: 'Imagine TCS funds 1,000 tech students each year through income-linked repayment plans. Graduates pay back 5–7% of their salaries for eight years, but only if they're employed. It's not charity—it's a calculated bet on talent. CSR becomes smarter — aligning with ESG goals and workforce needs.'Even HDFC could fund management students, who repay through a portion of their bonuses. Risky? Perhaps. But revolutionary? Definitely.
