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IDBI Bank Launches OTS scheme for retail NPA borrowers to Boost Recovery
Current Context: IDBI Bank has introduced the Sugam Rinn Bhugtan Yojana (SUGAM), a one-time settlement (OTS) scheme aimed at recovering dues from retail non-performing accounts (NPAs).
Details
- This scheme targets borrowers with principal outstanding between Rs 10 lakh and Rs 10 crore.
- Eligibility: Retail borrowers whose loans turned NPAs by March 31, 2021, and remain NPAs as of August 31, 2024.
- Waivers and Concessions: The scheme offers waivers on interest and expenses, with specific terms for guaranteed emergency credit lines.
- Payment Terms: Borrowers must pay at least 10% of the settlement amount upfront by December 31, 2024. The remaining balance can be paid within 90 days without interest or by March 25, 2025, with interest.
- Exclusions: Accounts under vendor bill discounting, secured by corporate guarantees, or admitted to the National Company Law Tribunal (NCLT) are not eligible.
- This initiative aims to resolve long-pending cases and improve the bank’s recovery from NPAs.
Telangana becomes the first state to get niti aayog’s women entrepreneurship platform chapter
Current Context: Telangana became the first state to launch a chapter of NITI Aayog’s Women Entrepreneurship Platform (WEP) on October 1, 2024.
About
- Objective: The WEP Telangana chapter aims to support women entrepreneurs by providing resources, tools, and a robust network to enhance their business growth.
- Key Details:
- Digital Skilling: Training and resources to improve digital literacy and technical skills.
- Financial Services: Access to funding, including government-backed loans and grants.
- Mentorship and Networking: Connections with industry leaders, potential investors, and other entrepreneurs.
- Market Linkages: Helping women-led businesses connect with markets to increase sales and expand their reach.
- Nodal Organization: WE Hub, India’s first incubation center dedicated to women entrepreneurs, will manage and implement the platform.
- This initiative is expected to significantly enhance opportunities for women entrepreneurs in Telangana, helping them overcome challenges and scale their businesses.
New framework to curb excessive speculation in stock market has been announced by SEBI
Current Context: The Securities and Exchange Board of India (SEBI) announced a new framework to curb excessive speculation in the stock market on October 1, 2024.
Key Points
- Increased Minimum Investment: The minimum amount required to invest in index futures and options (F&O) contracts will be raised from the current range of ₹5-10 lakh to ₹15 lakh. This change aims to make these contracts less accessible to smaller investors.
- Upfront Collection of Option Premiums: Starting February 1, 2025, brokers will need to collect option premiums upfront from buyers. This measure is intended to discourage excessive intraday leverage.
- Removal of Calendar Spread Benefits: The benefit of offsetting positions across different expiries (calendar spread) will no longer be available on the expiry day for contracts expiring on that day, effective February 1, 2025.
- Intraday Monitoring of Position Limits: From April 1, 2025, stock exchanges will begin intraday monitoring of position limits for equity index derivatives to prevent positions from exceeding permissible limits.
- Reduction of Weekly Expiries: Starting November 20, 2024, the number of weekly expiries for index derivative contracts will be reduced to one per benchmark index per exchange.
- Higher Margin Requirements: An additional extreme loss margin (ELM) of 2% will be implemented for all open short options on the day of expiry to protect investors from extreme market fluctuations.
- These measures are designed to enhance market stability and protect retail investors from the risks associated with speculative trading.
This digest is not complete. Read the complete digest on the Financial Awareness Course.
