 The Government of India, Government of Himachal Pradesh (GoHP) and the World Banksigned a $40 Million Loan Agreement to help bring clean and reliable drinking water to the citizens of the Greater Shimla area, who have been facing severe water shortages and water-borne epidemics over the last few years. The Shimla Water Supply and Sewerage Service Delivery Reform Programmatic Development Policy Loan 1 is expected to improve water supply and sanitation (WSS) services in and around the iconic hill city of Shimla. The $40 Million Loan from the International Bank for Reconstruction and Development (IBRD), has a 4-year grace period and a maturity of 15.5 years. |
| Source: Press Information Bureau |
 Reserve Bank of India decided to treat deposits to over Rs.2 crore as ‘bulk’ as they doubled the limit for the same from the earlier Rs.1crore. This move will enhance the operational freedom of Banks. According to current RBI rules, last reviewed in January 2013, banks have the option of not permitting premature withdrawals of ‘large rupee term deposits’ of INR 1 crore and above. RBI also proposed banks would maintain their bulk deposits interest rate cards in the core banking system for supervisory review. National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB) has suggested this proposal. |
| Source: The Times Of India |
 RBI in the exercise of powers conferred under Section 47 A of the Banking Regulation Act, 1949 has levied a penalty of Rupees one crore on the State Bank of India (SBI) for not monitoring the end use of funds in respect of one of its borrowers. |
| Source- Moneycontrol |
 The Reserve Bank of India raised the limit of collateral-free agricultural loans to Rs. 1.6 lakh from the current Rs. 1 lakh with a view to help small and marginal farmers. The central bank also decided to set up an internal working group (IWG) to review agricultural credit and arrive at a workable policy solution. The Union Budget had also announced measures to boost the farming sector in addition to annual payment of Rs. 6,000 to small and marginal farmers. Currently, the banks are mandated to extend collateral-free agricultural loans up to Rs. 1 lakh. This limit was fixed in the year 2010. |
| Source- NDTV News |
 Indian Banking Association has issued advisory requesting banks to waive off the processing, documentation, inspection and all other service charges for Kisan Credit Cardand crop loans up to 3 lakh rupees. Agriculture Ministry in a release stated that there are over 21 crore small and marginal farmers in the country and providing them timely and affordable credit is the key to attaining inclusive growth. The Kisan Credit Card Scheme aims at providing adequate and timely credit support from the banking system to the farmers to meet the short term credit requirements for cultivation of crops, investment credit requirements for agriculture and allied activities and other needs. |
| Source: News on AIR |
 Fino Payments Bank (FPB) has announced the launch of a sweep account facility in association with Suryoday Small Finance Bank (SSFB). This partnership will help FPB address the issue of deposit limits that all the payment banks face at the moment. As per the Reserve Bank of India (RBI), payment banks can only take deposits upto Rs1 lakh per account. However the partnership would allow customers to seamlessly transfer the excess amount from their account in FPB to SSFB (partner bank) account. |
| Source- The Hindu Business Line |
 RBI has released 6th Bi-Monthly Monetary Policy Statement. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting, the Monetary Policy Committee (MPC) decided to: |
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| The MPC also decided to change the monetary policy stance from calibrated tightening to neutral. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2% while supporting growth. |
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Inflation Rates:
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 The Reserve Bank of India has slapped a Rs1-crore penalty on Syndicate Bank and Rs20 lakh on Axis Bank for violating norms. The penalty on Syndicate Bank is due to non-compliance with the directions regarding frauds and risk management systems. Axis Bank was fined for contravention of the directions on detection and impounding of counterfeit notes and installation of note sorting machines. |
| Source- The Hindu |
 The Asian Development Bank (ADB) has bought a 14% stake in micro-financier Annapurna Finance for Rs 137 crore, reinforcing the belief that India’s microfinance sector is on course to attract long-term funds from global lenders and investors. The expansion of equity will help the firm expand its loan portfolio in asset classes such as MSME and affordable housing, beyond its bread and butter microfinance. ADB has backed MFIs to help achieve its broader objective of reducing poverty in Asia and the Pacific. The investment by ADB will expand Annapurna’s net worth to Rs 580 crore. |
| Source: The Economic Times |
 Two regional rural banks (RRBs) – Pallavan Grama Bank and Pandyan Grama Bank – will be merged to form the Tamil Nadu Grama Bank as per the Finance Ministry notification. The integration will be effective from April 1. The new Tamil Nadu Grama Bank will be under the sponsorship of Indian Bank with head office in Salem. Originally the Pallavan Grama Bank was sponsored by Indian Bank and the Pandyan Grama Bank by Indian Overseas Bank. |
| Source- Business Standard |
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