RBI eases current account rules for exposures less than Rs 5 crore

The Reserve Bank of India eased Current Account Rules for bank exposures less than five crore rupees allowing lenders to open current accounts, cash credit and overdraft facilities without any restriction. The Apex Bank asked banks to implement the changes within one month.The RBI said, in its guidelines that for borrowers, where the exposure of the banking system is less than five crore rupees, there is no restriction on the opening of current accounts or on the provision of CC/OD facility by banks, subject to obtaining an undertaking from such borrowers that they will inform the banks, as and when the credit facilities availed by them from the banking system reaches five crore rupees or more. It added that borrowers where the exposure is more than five crore rupees, will continue to maintain current accounts with any one of the banks with which they have cash credit or overdraft facility, provided that the bank has at least 10 per cent of the exposure of the banking system to that borrower. The banking regulator also permitted banks to open and maintain inter-bank accounts, all accounts with institutions like EXIM Bank, NABARD, NHB and SIDBI account attached by orders of Central or State Government and investigative agencies without any restrictions. The RBI also clarified that other lending banks will only be allowed to open collection accounts and the money deposited in those accounts will be remitted within two days of receiving the funds. The Central Bank also said that in case none of the lenders have at least 10 per cent exposure of the banking system to the borrower, the bank having the highest exposure can open current accounts.
-The Delhi High Court has cautioned the Delhi government for not preparing the statutory street vending plan. A  bench comprising Justice Vipin Sanghi and Justice Jasmeet Singh observed that enough politics and mockery has been done in the matter and questioned the formation of the Town Vending Committee for the NDMC area.The court said the administration of the city cannot be held to ransom at the hands of street vendors. The court’s observations came while hearing a plea by New Delhi Traders Association seeking to strike down the Government of National Capital Territory of Delhi Street Vendors (Protection of Livelihood and Regulation of Street Vending) Scheme, 2019. The court made clear that it is not against hawkers but they are bound to implement the law on no hawking zone.

-Punjab Petroleum Dealers Association (PPDA) has urged the State Government that not only petroleum dealers are facing financial losses, but the government is also losing revenue due to the oil-based low-grade product being sold illegally through mobile vans in the market in the name of biodiesel. The PPDA made this appeal during their Executive Meeting held in Chandigarh on Satueday. Association President Sandeep Sehgal said that due to the availability of this form of fuel at less price than diesel, most of the vehicles have shifted to this biodiesel. Oil Marketing Companies (OMCs) have also registered a massive cut in the sale of High-Speed Diesel (HPD). Sehgal said that the service of delivering fuel door-to-door had been started which has given a massive blow to their fraternity. According to OMCs, this service is valid for those heavy machines or vehicles which cannot reach the petrol pump. But, it is being seen that government and OMC orders are being flouted openly and their access is being extended to motorable, passenger and agricultural vehicles, which is directly causing loss to the petrol pump owners. The association demanded that the government should take action against the non-licensed persons or establishments, who illegally buy diesel from mobile vans. The association also expressed its concern over the higher VAT rate in Punjab as compared to Chandigarh.  Association's General Secretary Rajesh Kumar said that about 1,000 petrol pumps of Punjab adjoining Chandigarh and other states are on the verge of closure.

-Power Ministry has said that India is committed to achieve more than 40 percent cumulative electric power installed capacity from non-fossil-fuel energy resources by 2030. The Ministry said, government has identified new areas to achieve higher levels of penetration of Renewable energy by proposing certain Amendments to Energy Conservation Act, 2001. The objective of this amendment is to enhance demand for renewable energy at the end-use sectors such as Industry, buildings and transport. The Ministry has prepared amendments, after consultations with stakeholders. The proposal includes defining minimum share of renewable energy in the overall consumption by the industrial units or any establishment. There will be provision to incentivise efforts on using clean energy sources by means of carbon saving certificate.

-The government has said that two crore 50 lakh rural Self Help Groups women will be provided livelihood support in the next two years. The Rural Development Ministry said, the government has launched an initiative to enable rural Self Help Groups women to earn at least one lakh rupees per annum. The Ministry said, based on various models existing across the country, a detailed advisory has been issued to the State Governments. Under the National Rural Livelihood Mission, poor women from different cross-sections of class and caste form Self Help Groups and their federations, providing financial, economic and social development services to their members for enhancing their income and quality of life.