DBC 2406 - Securities Transaction Tax (STT)

 

The Banking Tutor 

                     Daily Banking Concept -  2406     

Securities Transaction Tax (STT)

 

Securities Transaction Tax (STT) is a direct tax levied on the purchase and sale of securities listed on recognised stock exchanges in India.

BTL 889 - Micro Credit Card (MCC) - CGTMSE Guarantee Cover

 

The Banking Tutor’s Lessons

BTL 889                                                                                15-04-2026

Micro Credit Card (MCC) - CGTMSE Guarantee Cover 

In order to promote financial inclusion and to address short-term liquidity needs of Micro Enterprises CGTMSE introduced a special provision for extending guarantee coverage without insisting on primary security to lending institutions providing Micro Credit Card (MCC) to Micro Enterprises, for financing their working capital requirements/business related expenditure.

Key Features of the Special Provision:

1. Eligible beneficiary: All Udyam registered Micro Enterprises that have short term and adhoc Working Capital finance requirements.

2. Eligible MLIs: RBl-regulated Lending Institutions/ Non-Banking Financial Companies (NBFCs) issuing Credit Cards (MECards) under Model Scheme for Credit Cards for Micro Enterprises.

3. Maximum limit of Credit Card: 5 lakh per borrower.

4. Extent of guarantee coverage: 75% of amount in default or Credit Card limit, whichever is lower, irrespective of the category of the borrower.

5. Eligibility for guarantee coverage: Such issued cards having reference number from Jan Samarth Portal (JSP) shall be eligible for guarantee coverage.

6. Primary Security: Not mandatory.

7. Annual guarantee fee rate: 0.55% on the Credit Card limit irrespective of the category of the borrower. No Risk Premium will be levied as all beneficiaries will be Micro Enterprises.

8. Lock-in period: 9 months from the guarantee start date.

9. Tenure of the Scheme: 3 years from the date of launch or till 10 lakh Credit Cards are issued, whichever is earlier.

10. Responsibility for credit appraisal, account classification, and monitoring of asset quality, including assessment of SMA status at the time of sanction, would rest with the Lending Institutions/ Credit Card Issuers including compliance with regulatory guidelines.

11. All guidelines with respect to submission of application for coverage, timelines, payment of fee process, NPA marking, guarantee invocation, claim settlement, recoveries, etc., will be as per the existing guidelines of Credit Guarantee Scheme - I of CGTMSE.

Sekhar Pariti

+91 9440641014

(Source: CGTMSE’s Circular dated 18-03-2026)

DBC 2405 - Acquisition Finance

 

The Banking Tutor 

               Daily Banking Concept -  2405     

Acquisition Finance 

Acquisition Finance shall mean a financial facility provided to an eligible borrower for the purpose of acquiring equity shares or compulsorily convertible debentures (CCDs) in a target company or its holding company, resulting in the borrower entity acquiring control over the target company. Such funding may also involve refinancing of existing debt of the target company if the refinancing is integral to the acquisition finance.

DBC 2404 - Trick Wording

 

The Banking Tutor

               Daily Banking Concept -  2404     

Trick Wording 

Deliberate use of confusing or vague language like confusing wording, double negatives, or other similar tricks, in order to misguide or misdirect a user from taking desired action or leading consumer to take a specific response or action. 

For example; Using confusing double negatives to trick users into opting for promotional emails or additional services, e.g., a checkbox that says, “Uncheck this box if you do not want to receive offers.

DBC 2403 - Bug Bounty Program

 

The Banking Tutor 

               Daily Banking Concept -  2403     

Bug Bounty Program

 

A bug bounty program is a structured, incentivized initiative where organizations invite independent security researchers (ethical hackers) to identify and responsibly disclose vulnerabilities in their systems, apps, or software in exchange for monetary rewards or recognition.

BTL 888 - Utkarsh 2029

 

The Banking Tutor’s Lessons

BTL 888                                                                                12-04-2026

Utkarsh 2029 (RBI’s Medium-term Strategy Framework for 2026-29)

The Reserve Bank of India had adopted the Medium-term Strategy Framework

(Utkarsh 2.0) covering the period 2023-2025 in December 2022 which guided the Bank’s progress towards realisation of the identified milestones. 

In continuation of the above and building upon the progress made thereunder, the Bank has now prepared its Medium-term Strategy Framework Utkarsh 2029 for the period April 2026 to March 2029. The framework encompasses six strategy pillars guided by a succinct vision statement and values. The six strategy pillars highlighting the broad strategic priorities of the Bank are:

 

• Robust Regulations

• Customer Centricity and Inclusive Finance

• Competitive Markets

• Effective Technology

• Future-ready Organisation

• Global India 

Each pillar encompasses overarching, forward-looking and medium-term deliverables. The regular functions of RBI will continue under the Annual Action Plan of the respective Departments. 

The Reserve Bank of India attaches high importance to its medium-term strategy and monitors its implementation and progress through a Sub-committee of its Central Board.

Sekhar Pariti

+91 9440641014

(Source – RBI’s Press Release dt 10^th April, 2026)

DBC 2402 - Takeout Financing

 

The Banking Tutor 

                Daily Banking Concept -  2402    

                            Takeout Financing 

Takeout financing is a long-term financing arrangement where another lender agrees to take over the loan after a specified period.