BTL 878 - CGTMSE - Modification in CGS – TPG

 

The Banking Tutor’s Lessons

BTL 878                                                                                12-03-2026

CGTMSE - Modification in CGS – TPG

As per extant guidelines of CGTMSE, "Third Party Guarantee" means any guarantee obtained by a Member Lending Institution in connection with a credit facility extended by it to a firm which is referred as Borrower except from:

(a) a Sole-Proprietor in the case of a Sole Proprietary concern;

(b) Partners in the case of a Partnership or Limited Liability Partnership (LLP) 

(c) Trustees in the case of a Trust;

(d) Karta and Coparceners in the case of a Hindu Undivided Family (HUF);

(e) Promoter Directors in the case of a Private or Public Limited Company; or

(f) the owner of the collateral security (under a hybrid or partial collateral security model. 

Now CGTMSE, vide Circular dated 10^th February 2026 advised revised definition of TPG related to CGS as under.

The personal guarantee of following shall not be treated as a Third Party  Guarantee.

(a) a sole proprietor or individual as co-borrower or co- obligant;

(b) partners of the coborrower or co- obligant partnership or LLP;

(c) trustees of the co-borrower or co- obligant trust;

(d) Karta and Coparceners of the co-borrower or co- obligant HUF or

(e) promoter directors of the co-borrower or co- obligant company

If you see the above paras, you may find only one difference. Only para f –“the owner of the collateral security in the case of a guarantee under a hybrid or partial collateral security model” is omitted in revised definition.

From the above it is understood that “Any person not related to the Business is a Third Party”.

Sekhar Pariti

+91 9440641014

DBC 2371 - Sortino Ratio

 

The Banking Tutor 

Daily Banking Concept -  2371 

Sortino Ratio 

The Sortino ratio is a variation of the Sharpe ratio. It differentiates harmful volatility from total overall volatility by using the asset's standard deviation of negative portfolio returns or downside deviation instead of the total standard deviation of portfolio returns.

The Sortino ratio takes an asset's or portfolio's return and subtracts the risk-free rate. It then divides that amount by the asset's downside deviation.

DBC 2370 - Twin Balance Sheet Problem

 

The Banking Tutor 

Daily Banking Concept -  2370 

Twin Balance Sheet Problem 

A twin balance sheet is a scenario where banks are under severe stress and the corporates are overleveraged to the extent that they cannot repay their loans.

DBC 2369 - Growth Company

 

The Banking Tutor 

Daily Banking Concept -  2369 

Growth Company 

A growth company is any company whose business generates significant positive cash flows or earnings, which increase at significantly faster rates than the overall economy.

DBC 2368 - Economic Bubbles

 

The Banking Tutor 

Daily Banking Concept -  2368 

Economic Bubbles 

An economic bubble is marked by rapid escalation in asset prices, often due to speculative behaviour, followed by a sharp contraction.

BTL 877 - UPI ATM (ICCW)

 

The Banking Tutor’s Lessons

BTL 877                                                                                09-03-2026

UPI ATM (ICCW)

A UPI ATM (also known as Interoperable Cardless Cash Withdrawal or ICCW) allows you to withdraw cash from an ATM by scanning a QR code with any UPI app, eliminating the need for a physical debit card.

Key Features & Limits

Cardless Access: You only need your smartphone with a UPI-enabled app (like Google Pay, PhonePe, or BHIM).

Withdrawal Limit: The maximum limit is ₹10,000 per transaction, which is part of your existing daily UPI limit.

Enhanced Security: Reduces risks like card skimming or cloning since no physical card is used.

Interoperability: You can withdraw cash from any participating bank's ATM regardless of where you hold an account.

How to Withdraw Cash

Select Option: On the ATM screen, select "UPI Cash Withdrawal".

Enter Amount: Type in the amount you wish to withdraw (up to ₹10,000).

Scan QR: A dynamic QR code will appear on the ATM screen. Scan it using your UPI app.

Authorize: Confirm the amount on your phone and enter your UPI PIN.

Collect Cash: Once authorized, the ATM will dispense the cash. 

Important Updates (As of March 2026)

Transaction Charges: Starting April 1, 2026, banks will count UPI-based withdrawals within your monthly free ATM transaction limit.

Fees: Exceeding the free limit (typically 3–5 transactions) will incur a fee of ₹23 plus taxes per transaction .

UPI Cash Deposit: The RBI has also introduced UPI-ICD (Interoperable Cash Deposit), allowing you to deposit cash into any bank

Sekhar Pariti

+91 9440641014

DBC 2367 - Underapplied Overhead

 

The Banking Tutor 

Daily Banking Concept -  2367 

Underapplied Overhead

 

Underapplied overhead occurs when a company's actual overhead costs exceed its budgeted amounts, creating an unfavourable variance.