Latest news with #RaghuMohan
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Business Standard
5 days ago
- Business
- Business Standard
Nearly a decade into its existence, IBC framework needs to be reimagined
The famous "tareekh pe tareekh" dialogue from the Hindi movie Damini captures where we are now premium Raghu Mohan Abhijit Lele Listen to This Article 'A comprehensive law like the IBC is often viewed as a last resort by lenders — an avenue that needs to be explored after exhausting all alternatives. However, this view stems from the lack of a comprehensive vision for the future of a beleaguered borrower,' noted Rajeshwar Rao, deputy governor, Reserve Bank of India (RBI), at a conference on bankruptcy in Ahmedabad (May 6, 2022). His observation — five years after the Insolvency and Bankruptcy Code came into being — was a pointer to the convergence of opinion that outcomes under this architecture have not turned out the way it
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Business Standard
27-06-2025
- Business
- Business Standard
BCs seek meeting with finance ministry to break deadlock over remuneration
Industry representatives for business correspondents point out that there is pressure from banks to raise deposits, despite the fact that the BC channel has already overtaken branches in doing so The credit-deposit (CD) ratio of banks - the percentage given as loan(s) for every Rs 100 in deposits – had reached as much as 90 per cent during calendar year 2024. Raghu Mohan New Delhi Listen to This Article Business correspondents (BCs) have sought a meeting with the Ministry of Finance (MoF) to break the deadlock over the remuneration paid to them. particularly in light of pressure from banks to raise deposits. 'We are being seen as extension counters of banks. The remuneration paid to us has to be revised for the BC channel to be viable," an industry source said, on condition of anonymity because negotiations are still ongoing. The credit-deposit (CD) ratio of banks - the percentage given as loan(s) for every Rs 100 in deposits – had reached as much as 90 per cent during calendar
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Business Standard
15-06-2025
- Business
- Business Standard
Microfinance industry refashions itself amid opportunities and challenges
Central bank has taken a sympathetic view of institutions by easing some lending norms premium Raghu Mohan Listen to This Article 'The microfinance sector continues to suffer from a vicious cycle of over-indebtedness, high interest rates and harsh recovery practices,' said M Rajeshwar Rao, deputy governor at the Reserve Bank of India (RBI), last week. These are tough words from the otherwise soft-spoken Rao, the senior-most in that position at the central bank. He also pointed out the prevalence of Shylock-like tendencies: 'Lenders should look beyond the conventional 'high-yielding business' tag…and approach it with an empathic and developmental perspective, recognising the socioeconomic role that microfinance plays in empowering vulnerable communities.'
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Business Standard
16-05-2025
- Business
- Business Standard
MSMEs struggle with access to formal credit due to limited formalisation
Other factors such as information asymmetry, lack of comprehensive financial records, weak credit histories, and insufficient collateral contribute to this issue Raghu Mohan New Delhi Listen to This Article Access to timely and adequate formal credit remains a persistent challenge for micro, small, and medium enterprises (MSMEs). Factors such as information asymmetry, limited formalisation, lack of comprehensive financial records, weak credit histories, and insufficient collateral contribute to this issue. According to SIDBI's report 'Understanding the Indian MSME Sector: Progress, and Challenges', in primary interactions with MSMEs, 17 per cent of the respondents did not avail any form of credit, while 8 per cent availed it from informal sources. Given the higher level of difficulty in accessing credit for micro enterprises, 12 per cent of those surveyed borrowed from informal
