Banks set for $7.6bn earnings windfall from bankruptcy recoveries this month. RBI to provide free round the clock NEFT payments.
The Most Wonderful Time of the Year: This month, India’s banks are set for a $7.6bn earnings windfall thanks to the progress of bankruptcy proceedings in large cases.
The lenders are expected to benefit from the recovery process from four failed companies – Essar Steel India Ltd., Prayagraj Power Generation Co., Ruchi Soya Industries Ltd. and RattanIndia Power Ltd.
Among the banks, State Bank of India, IDBI Bank, Bank of India, Canara Bank and Bank of Baroda could be the biggest beneficiaries. The Print
All Day and All Night: On Monday, NEFT payments became available round the clock, 24x7. On top of it, the Reserve Bank of India has now barred banks from charging any fee for electronic fund transfers from savings accounts.
Between 12am and 8am on Monday, NEFT settled over 1.14mn transactions, according to the Central Bank. By providing round the clock payment services, India has also joined an “elite club of countries” which includes Australia, Hong Kong, Mexico, Sweden, Turkey, the UK and South Korea, among others. BS
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