Foreign Contribution (Regulation) Act (FCRA)
- Proposed amendments to FCRA
- Govt: tighten monitoring of activity funded by foreign agencies
- Many voluntary organisations are delivering much-needed service and providing jobs in short supply
- Bill passed by LS – but it should be refered to parliamentary committee
- Grievous amendment: prevent a grant receiving body from making grants to another agency.
- Many big agencies have the capacity to identify good voluntary groups, grant them funds, provide them with training and knowhow, and deliver services that complement official efforts.
- All accounts are to be with just one bank – which is an unfair trade practice.
Insolvency threat & loan recovery
- 14,510 cases involving defaults of Rs 5.13 lakh crore were withdrawn by July 31
- Creditors have recovered money from debtors by just applying for insolvency proceedings
- As for defaulting promoters, the fear that their companies will change hands once the IBC is applied, has forced them to pay up.
- These gains to creditors are much higher than what they gathered from the resolution or liquidation of stressed companies where insolvency cases were fully pursued.
- Insolvency and Bankruptcy Board of India (IBBI), financial creditors – the most important group among the class of creditors – realised Rs 1,88,893 crore from resolution/liquidation of defaulting firms until June 30 this year, against their admitted claims of Rs 4,22,609 crore, marking a recovery of 44.7% since late 2016.
- Sitharaman said in FY19, the recovery under the IBC was as much as 42.5% of the admitted claims, way better than that through other tools, such as Lok Adalat (5.3%) , Debt Recovery Tribunals (3.5%) and the SARFAESI Act (14.5%).
- State Bank of India (SBI) will hive off its digital platform YONO (you only need one) into a separate entity.
- Chairman Rajnish Kumar – this will allow other banks to use it
- Using a ‘pay per use model’, the lender expects to attract small banks, regional rural banks (RRBs) and co-operative banks to the platform.
- Kumar said other banks can use YONO platform without using the brand.
- Connect with the YONO API (application programming interface) without going through the SBI’s core banking system
- SBI has started preparing a separate balance sheet for YONO which earned a net profit of Rs 200 crore in the June quarter and on which 3,85,675 transactions take place daily.
- The lender aims to increase the customer size by more than 50% to 4.2 crore by March 2021 from current user base of 2.7 crore.
- The bank has added 71 lakh new customers during the pandemic between March and August 2020.
- Total number transactions on YONO have doubled to 1.1 crore in August 2020, from 66 lakh in March 2020.