Tue Jun 07 2022

🛑RBI IN NEWS MAY 2022🛑 ▪️RBI issues guidelines on compensation of Key Managerial Personnel (KMPs) & Senior Management in NBFC and modifies norms for Lending Institutions (LIs) on Short Term Crop Loan Scheme. ▪️As per the RBI’s Report on Currency and Finance (RCF) for the year 2021-22, stated that India’s feasible range for the medium-term steady state GDP (Gross Domestic Product) growth is 6.5-8.5%. ▪️Highlights of RBI’s Monetary Policy Committee Off-Cycle Meeting • The meeting saw the rise in policy repo rate under the liquidity adjustment facility (LAF) by 40 basis points to 4.40%. ▪️RBI issued a No-Objection Certificate (NoC) with conditions to the proposal for the voluntary merger of Equitas Holdings Limited (EHL) and Equitas Small Finance Bank (ESFBL), a subsidiary of Equitas Holdings Limited. ▪️RBI extended the validity of its Directions for two co-operative banks: The Laxmi Co-operative Bank Limited in Solapur, Maharashtra for three months and Sri Guru Raghavendra Sahakara Bank Niyamitha in Bengaluru, Karnataka for six months. ▪️RBI permitted commercial banks to continue providing credit facility to NBFCs (Non-Banking Financial Companies) for the purpose of on-lending to certain priority sectors.