For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

RBI modifies norms on general credit card scheme

By Religare
|

RBI modifies norms on general credit card scheme
In a bid to increase the flow of credit to individuals for entrepreneurial activity in non-farm sector, the Reserve Bank today said such credits should be extended through General Credit Cards scheme under the Financial Inclusion Plans (FIPs).
 

"Any other credit card (such as Artisan Credit Card, Laghu Udyami Card, Swarojgar Credit Card, and Weaver's Credit Card, etc) in existence and catering to the non-farm entrepreneurial credit needs of individuals should be included for reporting of credit extended through general credit cards (GCC), under the Financial Inclusion Plans (FIP). As the GCC is intended to cover all entrepreneurial credit, consumption credit extended to individuals should not be reported under GCC," RBI said in a notification to banks

Further, the RBI said that, "there will be no ceiling on the loan amount as long as the loan is for the purpose of non-farm entrepreneurial activity and is otherwise eligible for classification as priority sector."

The limits should be fixed on the basis of risk assessment on a case to case basis, it said. As the GCC is intended to cover all entrepreneurial credit, consumption credit extended to individuals should not be reported under GCC," RBI said in a notification to banks.

It clarified the issuance of GCC would not prevent banks from issuing any other credit card to their customers for their consumption needs.

Consumption credit provided by banks is to be reported separately under the head of overdraft or consumption credit in the FIP reporting format prescribed by RBI.

Dion Global Solutions Ltd.

Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more