Biz Updates: HDFC and Axis Bank fined 2.91 crore; Tata Motors reduced prices of e-vehicles by three lakhs

New Delhi| RBI has fined Axis Bank and HDFC Bank 2.91 crore for failing to comply. Out of this, Axis Bank has been penalized with Rs 1.91 crore and HDFC with Rs 1 crore. Both banks had not followed rules like KYC, interest rates on deposits and guarantee of agriculture-related loans, the RBI said on Tuesday.

Tata Motors has reduced the prices of electric vehicles (e-vehicles) by up to Rs 3 lakh. In this, the price of Nexon EV has decreased the most by three lakhs. Punch EV has been reduced by Rs 1.2 lakh and Tiago by Rs 40,000. This deduction is for a limited period of time. Vivek Srivats, Chief Commercial Officer, Tata Passenger Electric Mobility, said, With this cut, we are breaking the barrier of high acquisition cost for e-vehicles to benefit customers.

The government has set a target of increasing the credit guarantee given to micro and small enterprises through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme to Rs 5 lakh crore in the next two years. Additional Secretary and Development Commissioner (Micro, Small and Medium Enterprises) Rajneesh said, loan guarantee of Rs 4 lakh crore has been given through the scheme in the last two years. In 22 years, a loan guarantee of Rs 2.6 lakh crore was given under CGTMSE, Rajneesh said at a FICCI event on Tuesday. But in the last two years we have given loan guarantee of Rs 4 lakh crore. The government has bridged a huge gap in the last few years by bringing MSMEs under the ambit of the organized sector.

Due to the growth rate of loans given by banks being higher than deposits, the banking system may face cash challenges in the future. According to a joint report by industry body FICCI and the Indian Banks Association (IBA), banks will have to increase deposits to keep pace with credit growth. Besides, the cost of loan will also have to be kept low.

The report said that in the current round of survey, 67 per cent of the respondent banks have said that the share of current account and savings account (CASA) deposits in total deposits is low. According to information received from participating banks, fixed deposits have increased in the last few months due to high and attractive rates. 80 per cent of public sector banks surveyed reported declining savings and current account deposits in the first half of 2024.