Economy News-Daily Digest: 2 Key updates
1. Passport details must for loans of Rs 50 cr and above
Passport details of borrowers taking loans of Rs 50 crore and more have been made mandatory to ensure a swift action in case of fraud and prevent fraudsters from fleeing the country. Passport details will help banks to take timely action and inform the relevant authorities to prevent fraudsters from fleeing the country.This is a preventive step to avoid flight of economic offenders and banks to collect passport details of all new borrowers of loans in excess of Rs 50 crore.
For all existing loans of over Rs 50 crore, banks have been asked to collect passport details of borrowers within 45 days.
2. The first ever multi-nation naval exercise at sea begins in Andaman
The MILES-18, first-ever multi-nation naval exercise at sea was held at the Andaman sea. The three days exercise was conducted as part of 10th edition of MILAN 2018. Milan 2018, a multi-national mega event was organised by Andaman Nicobar naval command with theme ‘Friendship Across the Seas’ to expand regional cooperation and combat unlawful activities in critical sea lanes. 11 naval ships of 8 countries and nine Indian ships are participating in the three-day exercise.
3. Insolvency and Bankruptcy Board of India signs a Memorandum of Understanding with the Reserve Bank of India
The Insolvency and Bankruptcy Board of India (IBBI) signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI).
The Insolvency and Bankruptcy Code, 2016 (Code) provides for reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders and, for this purpose, has established an institutional infrastructure comprising of Adjudicating Authorities, the IBBI, insolvency professionals, insolvency professional agencies and information utilities. The IBBI exercises regulatory oversight over the Insolvency Professionals, Insolvency Professional Agencies and Information Utilities. It writes and enforces rules for processes, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution and individual bankruptcy under the Code.
Both the RBI and the IBBI are interested in the effective implementation of the Code and its allied rules and regulations, through a quick and efficient resolution process. Therefore, they have agreed under the MoU to assist and co-operate with each other for the effective implementation of the Code, subject to limitations imposed by the applicable laws.