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Last Updated: October 12, 2019 2 days ago

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  • State Bank of India to now charge processing fees on home loans, top-ups

    2 days ago
    State Bank of India decided to charge processing fees for home loans, top-up plans, and loans to corporates and real estate companies. The waiver will continue for proposals sourced up to October 15, 2019. The SBI recently linked lending rates to benchmark repo rates, resulting in a sharp fall in its interest income.  The bank will now charge around 0.4 per cent processing fee in the range of Rs 10,000-Rs 30,000 for individual borrowers, the daily quoted sources as saying, adding the bank would charge Rs 5,000 from builders. SBI cut its marginal cost of funds-based lending (MCLR) rate by 10 basis points (bps), effective October 10. This is the bank's sixth consecutive cut in MCLR in the current fiscal, and it comes on the heels of the 25 bps reduction in repo rate by the RBI last week. The Monetary Policy Committee slashed the short-term lending rate for the fifth time in a row, bringing it down to 5.15 per cent. The bank also reduced interest rate on retail savings accounts by 25 basis points (bps). The savings accounts with balance up to Rs 1 lakh would earn 3.25 percent interest from next month, down from 3.5 percent currently. State bank of India Chairperson: Rajnish Kumar Headquarters: Mumbai

    GeM signed MoU with UBI to avail online services

    3 days ago
    Government e-Marketplace (GeM) has signed a memorandum of understanding (MOU) with Union Bank of India (UBI) under which the bank will offer several services to it including the transfer of funds.  MoU: ♦ The MOU will facilitate a cashless, paperless and transparent payment system on the portal  ♦ It will also enable the GeM to create an efficient procurement system for government entities ♦ It will facilitate the online integration for payments and various banking services to GeM.  ♦ UBI will provide various services including transfer of funds through GeM pool accounts, advising of performance, bank guarantees and earnest money deposit to the registered users on the portal GeM: The commerce ministry launched the procurement portal GeM to increase transparency in public procurement of goods and services, which is estimated at about Rs 8 lakh crore per year.To enable the Online integration for payments and various banking services, GeM has signed MoU with 14 public sector and private banks.

    Bank of Maharashtra reduces MCLR by 0.10 percent

    3 days ago
    State-owned Bank of Maharashtra announced a cut in its marginal cost of funds based lending rates (MCLR) by 0.10% across tenors on 10 October. After the rate cut, the benchmark one-year MCLR will now be priced at 8.40% with effect from 8 October 2019. The other tenors from overnight to 6-months have been slashed by an equal measure in the range of 8.05%-8.30%. RLLR rate cut: Bank of Maharashtra has also cut down the repo linked lending rate (RLLR) by 0.25%. The rate has reduced to 8.20% from 8.45%. This reduction was made effective from 8 October. The base rate has been kept unchanged at 9.50% per annum.  The Bank stock was trading at Rs.10.41 on Bombay Stock Exchange (BSE), down 3.61% on BSE.

    RBI approved amalgamation of 13 DCBs to form Kerala Bank

    4 days ago
    The Reserve Bank of India (RBI) approved the amalgamation of all the 13 district co-operative banks (DCBs) of Kerala with Kerala State Co-operative Bank to form the Kerala Bank. The move aimed to transform the banking sector of the state. It was initiated by the Kerala State government to form a state cooperative bank. Merger of DCBs: After the merger, the Kerala Bank is expected to be the largest banking network in the state. The district cooperative banks of the 13 districts in the state had approved the government's amalgamation scheme. Before the merger, the banks should meet conditions laid by RBI. The Kerala state government has been directed to fulfill the conditions and submit a compliance report to RBI before 31 March 2020.

    SBI reduces the savings interest rate by 25 bps

    5 days ago
    The State Bank of India (SBI) has reduced cut deposit and lending rates by 25 basis points (bps) to 3.25% from 3.5% for deposits of up to Rs.1 lakh. This reduction aims to boost the adequate liquidity in the banking The reduction in deposit rates will help the bank to retain their net interest margins. RBI's repo rate cut: The move comes after the Reserve Bank of India's (RBI) announcement to cut the benchmark repo rate by 25 bps in the month of October. Banks’ retail lending and loans to MSME borrowers are now linked to the repo rate. After RBI's repo rate reduction, all these interest rates have also had to come down by 25 bps. Other reduction: ♦ The country’s largest lender also announced its decision to cut the retail term deposit rate by 10 bps and corporate bulk deposit rates by 30 bps. The new rates is to made effective from 10 October 2019. Because of this reduction, SBI’s peak retail deposit fixed rate will be 6.4% for deposits made for a period of 1 year to less than 2 years. ♦ The bank also reduced the Marginal cost of funds based lending rate (MCLR) by 10 bps. This will be effective from 10 October. The one-year MCLR will be 8.05%. Most loans are linked to the 1 year MCLR.

    SBI launches debit card EMI on POS loans for consumer durables

    October 7, 2019
    State Bank of India launched a debit card EMI facility under which consumers can opt for a monthly installment tenure of 6 to 18 months. The installments will begin a month after the transaction is complete. The customers having a clean financial and credit history are eligible for availing the loans. Consumers can buy the products at over 40,000 merchants and stores in more than 1,500 cities having point-of-sale (POS) machines totalling over 4.5 lakh. The benefits of new facility include zero documentation, no processing fee, no branch visit, instant disbursal and zero cost EMI on select brands.  SBI commitment towards customers' convenience and satisfaction, we believe the introduction of this new product is a step forward by the bank to offer delight of hassle-free purchases and paper-less loans. State Bank of India Founded: 2 June 1806 Headquarters: Mumbai

    YES Bank plans to raise $1 billion by December through rights issue

    October 7, 2019
    YES Bank is looking at raising $1-1.2 billion by December through a fully underwritten rights issue. te bank received interest from both global private equity players and Indian family offices. The potential investors may be picking up a stake in the bank ahead of the rights issue in the open market. It is learned that investor interest garnered by the bank is over $2 billion, which is nearly twice as much capital as what it plans to raise. YES Bank  CEO: Ravneet Gill Headquarters: Mumbai Founders: Rana Kapoor, Ashok Kapur

    RBI announces the NEFT fund transfer to be available round the clock

    October 5, 2019
    Reserve Bank of India (RBI) said that the online money transfer through National Electronic Funds Transfer (NEFT) will be available 24x7 from now onwards. The announcement was made by the six-member Monetary Policy Committee (MPC) of RBI.  NEFT timings: In August 2019, RBI in its August Monetary Policy Review meets had announced round-the-clock availability of NEFT payment system from December 2019.  Currently, the NEFT payment system which is operated by RBI as a retail payment system is available for customers from 8.00 am to 7.00 pm on all working days of the week. 2nd and 4th Saturdays of the month are exceptional. The recent announcement of making the availability of NEFT on a 24x7 basis is expected to revolutionize the retail payments system of the country.

    Bandhan Bank and Gruh Finance to merge on 17 October

    October 5, 2019
    Kolkata-based Bandhan Bank and Ahmedabad-based Gruh Finance announced that it will be merged on 17 October 2019. The National Company Law Tribunal (NCLT) has cleared the scheme of amalgamation for the merger. The scheme has been approved by NCLT's Kolkata and Ahmedabad benches. Reason for the merger: The merger aims to help the Bandhan Bank diversify its loan portfolio of Rs.45,400 crore. Currently, it is heavily skewed towards microloans with 85% share. Gruh Finance is the housing finance arm of HDFC Ltd. It has a loan portfolio of Rs.17,700 crore.  Bandhan Bank also believes that affordable housing will be another major growth area for the bank to go forward. Also, micro small and medium enterprises (MSMEs) will be a focus area of the bank. Acquisition: In the month of January 2019, Gruh Finance was taken over by Bandhan Bank in a share-swap deal. and in March 2019, the Bandhan Bank has received a no-objection certificate from the Reserve Bank of India (RBI) for the acquisition of Gruh Finance.

    CM Jai Ram Thakur launched Pragati Rath of HDFC bank

    October 5, 2019
    Himachal Pradesh Chief Minister Jai Ram Thakur launched the Pragati Rath of the HDFC bank. During the launching occasion, the bank provided a cheque Rs.1 crore to the Chief Minister’s Relief Fund. The bank has also announced that it is to launch the Sustainable Livelihood Initiative in the State. Pragati Rath: ♦ Pragati Rath is a month-long initiative of the HDFC bank. Under the initiative, the van would move to different parts of Himachal Pradesh to provide financial and digital literacy to the people.  ♦ It is a unique hi-tech van equipped with LED to raise awareness about the best digital practices. ♦ The bank is planning to adopt 15 villages of the State under the Holistic Rural Development Programme.

    Indian banks to offer forex prices to non-residents at all times

    October 4, 2019
    The RBI allowed domestic banks to freely offer foreign exchange prices to non-residents at all times, out of their Indian books, either by a domestic sales team or through their overseas branches. The RBI task force on offshore rupee submitted its report on July 30, recommending several important measures to incentivise non-residents to access the onshore foreign exchange market. The RBI allowed rupee derivatives (with settlement in foreign currency) to be traded in International Financial Services Centres (IFSCs). The directions for implementing the latest announcements will be issued in consultation with the central government and other regulators. The RBI has been taking steps for popularising the cross-border transactions in Indian rupee (INR), especially in respect of external commercial borrowing (ECB), trade credit and exports and imports, thereby reducing the exchange risk for persons resident in India. The RBI decided to enhance the scope of non-interest bearing special non-resident rupee (SNRR) account by permitting persons resident outside India to open such accounts to facilitate rupee denominated ECB, trade credit and trade invoicing.  The RBI plans to ease restrictions on the tenure of the SNRR account which is currently 7 years. The RBI will issue guidelines within a month. Reserve Bank of India Governor: Shaktikanta Das Founded: 1935

    HDFC initiative to impart financial literacy to people

    October 4, 2019
    The HDFC Bank that will provide financial and digital literacy to the people during a month-long initiative by moving to different parts of Himachal launched by Chief Minister Jai Ram Thakur The Chief Minister said that the Pragati Rath was a commendable endeavor of the HDFC Bank to encourage people to adopt digital banking and also impart financial literacy. The unique hi-tech van equipped with an LED to raise awareness about best digital practices. HDFC Bank provided a cheque of Rs 1 crore to the Chief Minister towards the Chief Minister’s Relief Fund on the occasion. The present state government during the last about 20 months has provided financial assistance of Rs 30 crore to the poor and needy. The Chief Minister appreciated the bank for announcing to open 10 new branches in the state which would provide better banking services in the rural areas. The private banks that the banks were more successful in urban areas. The bank announced adoption of 15 villages of the state under Holistic Rural Development Programme. The bank also announced that it would support drug de-addiction initiative in the state besides collaborating in waste management. The banks play an important role in the economy of the state and urged them to give liberal and easy loan facilities to consumers by avoiding cumbersome procedures. The bank had 67 branches and 107 ATMs in Himachal Pradesh to facilitate consumers. HDFC Bank CEO: Aditya Puri  Headquarters: Mumbai Founded: August 1994

    India and USA to launch new initiative for clean energy

    October 3, 2019
    India and America will launch a new initiative for clean energy to fuel economic growth in the strategically-important Indo-Pacific region where China has been trying to expand its sphere of influence. The US has been pushing for a broader role by India in the Indo-Pacific region in the backdrop of China's rising military maneuvering in the region. China trying to expand its military presence in the biogeographic region, comprising the Indian Ocean and the western and central Pacific Ocean, including the South China Sea. The Federal Energy Regulatory Commission (FERC) partners from US department of energy and the US agency for international development. India’s ministry of power will host, along with the ministry of new and renewable energy, the Indian Central Electricity Regulatory Commission, and the Indian Petroleum and Natural Gas Regulatory Board. Together they will strengthen India’s energy security by jointly working toward a national power system for India that is stable, reliable, and affordable.

    State Bank of India becomes first Indian bank to have office in Australias Victoria

    October 1, 2019
    The RBI named three banks SBI, ICICI Bank and HDFC Bank as DSIBs. State Bank of India opened its Melbourne office  It is the first Indian bank to have a branch in the Australian state of Victoria. The Melbourne office will assist the growing trade and investment relations between Victoria and India and is the outcome of the state’s 10-year India Strategy our shared future. India’s largest commercial bank is a testament to our thriving financial services sector and our highly skilled workforce. The two-way merchandise trade between Victoria and India and Australian $1.76 billion in 2018. The presence of leading Indian businesses, including Cipla, Cyient, HCL, Infosys, Ramco, Samvardhana Motherson Group, TCS, Tech Mahindra, Ugam Solutions, Wipro, Zoonga and Zomato. The Victoria’s financial sector employs more than 122,000 and generates around A$40 billion every year. State Bank of India  Chairperson: Rajnish Kumar Headquarters: Mumbai

    RBI appoints Jai Bhagwan Bhoria as new administrator for PMC Bank

    September 30, 2019
    Reserve Bank of India (RBI) superseded the Board of crisis-hit Punjab and Maharashtra Cooperative Bank Ltd. Mumbai  She is appointed Jai Bhagwan Bhoria as the administrator of the bank. The RBI increased the amount of withdrawal allowed to the depositors from ₹1,000 to ₹10,000. The directives of RBI shall remain in force for a period of six months. The development comes at a time when the lender's suspended MD reportedly admitted to the RBI that the bank's actual exposure to the bankrupt HDIL is over ₹6,500 crore  four times the regulatory cap or a whopping 73% of its entire assets of ₹8,880 crore. The slum redevelopment focused Housing Development and Infrastructure or HDIL is in the bankruptcy court now after being hit by a severe cash crunch following the failure of some of its key projects in the city. The removal of the now scam-hit bank's chairman Waryam Singh last year after it had found out his involvement in sanctioning loans to realty developer HDIL and related-entities without proper due diligence and much above the regulatory limits. Reserve Bank of India (RBI) Headquarters: Mumbai Founder: British Raj Governor: Shaktikanta Das

    State Bank of India becomes first Indian bank to have office in Australia's Victoria

    September 30, 2019
    State Bank of India opened its Melbourne office to become the first Indian bank to have a branch in the Australian state of Victoria. The Melbourne office will assist the growing trade and investment relations between Victoria and India and is the outcome of the state's 10-year India Strategy our shared future. This investment by India's largest commercial bank is a testament to our thriving financial services sector and our highly skilled workforce. The two-way merchandise trade between Victoria and India was to the tune of 1.76 billion Australian dollars in 2018.The presence of leading Indian businesses, including Cipla, Cyient, HCL, Infosys, Ramco, Samvardhana Motherson Group, TCS, Tech Mahindra, Ugam Solutions, Wipro, Zoonga and Zomato.Victoria's financial sector employs more than 122,000 people and generates around 40 billion Australian dollars every year. State Bank of India Chairperson: Rajnish Kumar Headquarters: Mumbai

    Nepal Central Bank releases 3 coins to mark Guru Nanak Dev's birth anniversary

    September 29, 2019
    The Central Bank of Nepal released three coins to commemorate the birth anniversary of Sikh Guru Nanak Dev. The coins with denomination of NPR (Nepali Rupees) 100, 1000 and 2500 were jointly launched by Governor of Nepal Rastra Bank (NRB) Chiranjibi Nepal and Indian Ambassador to Nepal Manjeev Singh Puri at Hotel Aloft in Kathmandu . The coins possess monetary value and its sale will start from September 30, the NRB said. "Proud to be a Sikh today. Proud to be a follower of Guru Nanak Dev.  Sikhs residing in every part of the world that too in large numbers. On the occasion, both dignitaries launched a book showcasing the Sikh heritage in Nepal. It has been published by BP Koirala India-Nepal Foundation in co-ordination with Embassy of India in Nepal. Before unveiling the book, Indian head of Mission gave a comprehensive presentation bringing out key aspects of the Sikh heritage in Nepal. The event was graced by the presence of Jathedar of Akal Takht S. Harpreet Singh, President of Shiromani Gurudwara Prabhandhak Committee-Amritsar S. Gobind Singh Longowal. A few prominent Sikh leaders from Punjab, including Charanjeet Singh Atwal, and former Deputy Speaker of Lok Sabha also participated in the event.

    Indias biggest brands HDFC Bank retains top rank for sixth time in a row

    September 28, 2019
    HDFC Bank topped the WPP-Kantar BrandZ Top 75 Most Valuable Indian Brands ranking for the sixth time in a row. BFSI brands have dominated the top 10 ranking list this year. According to the report, banking brands made up the largest share of the BrandZ Top 75 and owned 23% of the total brand value of $53.3 billion. Life Insurance Corporation of India and State Bank of India retained their positions in the ranking at No. 2 and No. 5, respectively.  Kotak Mahindra Bank and ICICI Bank and got 5, 6th positions recently. In 2018, HDFC Bank’s brand value grew by 5% and was evaluated to be around $22.7 billion. While the growth of the bank’s brand value has declined from 21% in 2018 to 5% in 2019, the report states that the bank seems to buck the global trend. Brand Z Top 100 Most Valuale The BrandZ Top 100 Most Valuable Global Brands study reported an 8% decline in value of the top 20 global banks.  B2B technology services, including brands like Tata Consultancy Services secured 3rd position and Infosys secured 11th position the second largest category, commanding a combined $27.8 billion in brand value. Asian Paints and Maruti Suzuki were the other brands on the top 10 list. Jio established its larger ambitions beyond telecom, was the fastest riser in the 2019 ranking. The brand managed to solidify its place in the top 10 list at No. 9 with a 34% increase in brand value to $5.5 billion. Jio came in at No. 10 with an estimated brand value of $4.1 billion. Telecom brand Airtel retained its rank at No. 4 with a decline in brand value of 10% from $11.5 billion to $10.3 billion. Indian unicorn brands Oyo ($2 billion), Swiggy ($1.6 billion) and Zomato ($1 billion) were newcomers to the ranking at No. 30, No. 39 and No. 61, respectively.India’s biggest brands: HDFC Bank retains top rank for sixth time in a row The BrandZ Top 75 Most Valuable Indian Brands ranking is based on market data from Bloomberg, consumer insights from around 3.7 million consumers globally, and includes opinions from around one lakh Indian consumers on 1,000 brands in 80 categories.BFSI brands have dominated the top 10 ranking list this year. According to the report, banking brands made up the largest share of the BrandZ Top 75 and owned 23% of the total brand value of $53.3 billion.Life Insurance Corporation of India and State Bank of India retained their positions in the ranking at No. 2 and No. 5, respectively. Kotak Mahindra Bank moved up a notch, from No. 7 last year to No. 6 this year, while ICICI Bank dropped one rank and was ranked No. 10 in 2019. Together, banking and insurance brands commanded 34% of the top 75 ranking. In 2018, HDFC Bank’s brand value grew by 5% and was evaluated to be around $22.7 billion. While the growth of the bank’s brand value has declined from 21% in 2018 to 5% in 2019, the report states that the bank seems to buck the global trend. The BrandZ Top 100 Most Valuable Global Brands study reported an 8% decline in value of the top 20 global banks.  B2B technology services, including brands like Tata Consultancy Services (No. 3) and Infosys (No. 11), was the second largest category, commanding a combined $27.8 billion in brand value. Asian Paints and Maruti Suzuki were the other brands on the top 10 list. Jio, which has established its larger ambitions beyond telecom, was the fastest riser in the 2019 ranking. The brand managed to solidify its place in the top 10 list at No. 9 with a 34% increase in brand value to $5.5 billion. Last year, Jio came in at No. 10 with an estimated brand value of $4.1 billion. Telecom brand Airtel retained its rank at No. 4 with a decline in brand value of 10% from $11.5 billion to $10.3 billion.

    HDFC Bank, IOC launch co-branded fuel credit card for users from non-metro cities

    September 26, 2019
    HDFC Bank in partnership with Indian Oil launched a co-branded fuel card for users from non-metro cities and towns which will be available on both RuPay and Visa platforms. The card was launched at an event here by IOCL's Executive Director (Retail Sales) Vigyan Kumar and HDFC Bank's Country Head, Payments Business and Marketing, Parag Rao. The card offers customers highest rewards and benefits on fuel consumption and will be available on both RuPay and Visa platforms. Customers earn reward points known as 'fuel points' at over 27,000 IOCL outlets. They also earn fuel points on all other spends such as groceries, bill payments, utilities and other shopping. These points can be redeemed for up to 50 litres of fuel annually. The card was also simultaneously launched across 135 Indian oil outlets in Bhopal, Lucknow, Indore, Ranchi, Kochi, Visakhapatnam, Guwahati, Nagpur, Shillong, Varanasi, Jalandhar and Panjim, among others. The Indian Oil has been a pioneer in promoting digital cashless and digital transactions with more than 98 per cent of the company's network of 27,000 plus retail outlets capable of accepting credit/debit card payments. HDFC Bank shall give a boost to digital payments and cashless transactions in the country, in line with the Digital India vision of the prime minister.  

    RBI increased withdrawal limit for PMC Bank to 10,000 rupees

    September 26, 2019
    The Reserve Bank of India (RBI) increased the withdrawal limit for Punjab and Maharashtra Co-operative Bank (PMC) depositors to Rs.10,000. Earlier, the limit was set to Rs.1,000. RBI also said that 60% of the PMC Bank depositors will now be able to withdraw the entire amount. The relaxation aimed to reduce the hardship of the depositors. RBI's restriction: RBI has barred the PMC Bank, Mumbai to carry out the majority of its routine business for 6 months. The bank was put under regulatory restriction in the interest of depositors. The restriction was required due to the failure of internal control, major financial irregularities,  and wrong reporting of exposures. The announcement from the Central Bank will not cancel the banking licence of the Bank. The restrictions will be in force for six months.

    PNB launched Preventive Vigilance portal

    September 26, 2019
    Punjab National Bank (PNB) launched a Preventive Vigilance (PV) portal on 25 September. The bank conducted a meeting at the PNB Corporate Office to promote vigilance awareness. The meeting was chaired by Central Vigilance Commissioner Sharad Kumar. Aim: The Preventive Vigilance portal aims to facilitate the bank's staff members to check procedural lapses and promote good practices.  PV Portal: ♦ The PV portal will facilitate all staff members to contribute towards arresting procedural lapses and unhealthy practices ♦ It will usher in a coherent climate conducive to banking for the modern age.  ♦ The first of its kind portal includes other activities, such as the inauguration of the e-pledge mission, social outreach through technological platforms.  ♦ The bank promoted the portal under the central theme Integrity-A way of Life.

    A Rs 1.45 trillion tax cut may undermine rate reductions in India

    September 25, 2019
    India’s $20 billion tax-cut boosts may have an unintended effect of keeping borrowing costs high. The premium of 10-year yields over the central bank’s policy rate widened to the most since April after the surprise stimulus announced Friday raised fears the government will miss its budget deficit targets. Traders say the spread offers lenders little incentive to pass on past interest rate cuts to customers. The central bank has cut rates four times this year, banks have been reluctant to fully pass on Asia’s most aggressive easing amid a surge in bad loans. The widening spread reflects worries about the government adding to its record borrowing after the major booster. Finance Minister Nirmala Sitharaman said there were no plans to revise its borrowings of Rs 7.1 trillion for now, traders remain cautious. Standard Chartered forecasting the need for as much as Rs 800 billion ($11.3 billion) of new debt. The tax cut, estimated to cost Rs 1.45 trillion in lost revenue, may push up the fiscal deficit to 3.9% of gross domestic product for the year to March, compared with a goal of 3.3%, according to a Bloomberg poll of economists. The yields on 10-year bonds surged as much as 24 basis points on Friday, the most since February 2017, and a gauge of volatility for the notes rose to an eight-month high. They fell 4 basis points on Monday to 6.75%.

    PMC Bank customers can not withdraw more than 1,000 from their accounts

    September 24, 2019
    The Reserve Bank of India restricted on the amount depositors of Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) can withdraw from their accounts with the urban co-operative bank.  ₹1,000 The total balance in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directions. The directions to PMC Bank should not be construed as cancellation of banking licence by the central bank. PMC Bank can continue to undertake banking business with restrictions till further notice/instructions from RBI. The Reserve Bank may consider modifications of these directions depending upon circumstances. The restriction will remain in force for a period of six months from the close of business of the bank on September 23. The RBI's restrictions on the urban cooperative bank, PMC Bank will also not be able to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and accept fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations, without prior approval in writing from the central bank. The RBI directive should be forwarded to each depositor and will displayed on bank's website Punjab and Maharashtra Cooperative Bank (PMC Bank) PMC Bank is a multi-state scheduled urban co-operative bank. The operation in the States of Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. It is founded in 1984, PMC Bank has now grown to a network of 137 branches in six states and ranks among the top 10 cooperative banks in the country. The bank had been put under regulatory restrictions by the RBI owing to irregularities disclosed to the apex bank.

    RBI approves the reappointment of Shyam Srinivasan as MD & CEO of Federal Bank

    September 24, 2019
    The Reserve Bank of India (RBI) approved the reappointment of Shyam Srinivasan is appointed as the Managing Director (MD) and Chief Executive Officer (CEO) of Federal Bank  It is effective from September 23, 2019 until September 22, 2020. He will serve the bank as the head for a decade - September 23, 2010-September 22, 2020 Federal Bank Headquarters: Aluva CEO: Shyam Srinivasan (23 Sep 2010–) Founder: K.P Hormis

    RBI barred PMC Bank from doing business for six months

    September 24, 2019
    The Reserve Bank of India (RBI) barred the Punjab & Maharashtra Cooperative Bank Ltd (PMC Bank), Mumbai to carry out the majority of its routine business for 6 months. RBI's direction: RBI has barred the PMC Bank from carrying out its functions including granting, renewing and loans and advances, make any investments, accept fresh deposits, transactions for a period of six months.  The RBI has also restricted the PMC Bank's depositors to withdraw more than Rs.1,000 from their savings/current/other deposit accounts.  The RBI monitors banks' health and issues such kind of directions in case of concerns over the financial health of an institution. The regulator did not mention any specific reasons for its restrictions on PMC Bank. This announcement does not cancel the banking licence of the Bank. The restrictions will be in force for six months.

    Paisalo Digital inks co-origination of loan agreement with Bank of Maharashtra

    September 24, 2019
    Paisalo Digital signed its second co-origination of loan agreement with major public sector bank in India, Bank of Maharashtra (BoM)  Aim: The joint contribution of credit flow by BoM and Paisalo Digital.  The arrangement also involve sharing of risks & gains between them. Paisalo digital signed the 1st co-origination loan agreement (designed at Rs.10,000 to 2 lakh) with State Bank of India (SBI) to pay out 200,000 loan applications in 2019 (FY-Fiscal Year 2020). About Paisano Digital: Managing Director:  Sunil Agarwal Headquarters: New Delhi.

    ICICI to open 450 branches by next financial year

    September 24, 2019
    Private sector lender ICICI Bank is planning to open 450 branches in the forthcoming financial year. Among the planned 450 branches, 320 branches have already been added. 5000 branches: After the installation of the 320 operational branches for customers, the bank has crossed the milestone of having 5,000 branches. The branch that was opened at Thane in Maharashtra is the 5000th (milestone) branch of ICICI. The Bank believes that a wide branch network continues to be important for retail banking. Having a large number of branches helps deepen the relationship with the customer by serving them with a wide range of products and offerings. ICICI Bank Limited: Founded on: 5 January 1994 Headquarters: Mumbai, India Chairman: Girish Chandra Chaturvedi MD & CEO: Sandeep Bakhshi Total assets: Rs.929,652 crore

    BOB launched Baroda Kisan for farmers

    September 23, 2019
    The state-owned Bank of Baroda has launched its Agri digital platform Baroda Kisan. The Baroda Kisan platform can be accessed on mobiles by farmers. Baroda Kisan: The web-based portal Baroda Kisan is expected to meet all the needs of farmers. It provides details including weather forecasts, crop conditions, the moisture levels of the soil, information on crop worms, market prices, special crop-related consultation The application will help farmers with inputs related to the purchase of different products such as seeds, fertilizers, pesticides, agricultural equipment on rent, consultancy services. It will also provide innovative financing options for the sale of agricultural products Loan schemes: The Bank also unveiled its centralized processing hubs at Gandhinagar and Hyderabad for agriculture proposals.  BOB has introduced two loan schemes. 1) A scheme for the construction and renovation of toilets as well as domestic drinking water facilities under Swachh Bharat Abhiyan. 2) Other loan schemes will help people with the construction of houses in rural areas. Baroda Kisan: Founded on: 20 July 1908 Founder: Sayajirao Gaekwad III Chairman: Hasmukh Adhia MD & CEO: P. S. Jayakumar BOB is owned by the Government of India. It is the second largest public sector bank (PSB) in India.

    SBI to link new floating rate home auto loans to RBI's repo rate

    September 23, 2019
    State Bank of India or SBI, the country’s largest lender decided to adopt Reserve Bank of India’s repo rate as the external benchmark for all floating rate loans for MSME, home and retail loans effective October 1, 2019. RBI earlier asked banks to link all new floating rate personal or retail loans and floating rate loans to Micro and Small Enterprises to external benchmarks from October 01, 2019. The benchmarks include RBI's repo rate, Government of India 3-Months Treasury Bill yield published by the Financial Benchmarks India Private Ltd (FBIL), Government of India 6-Months Treasury Bill yield published by the FBI or any other benchmark market interest rate published by the FBIL. The banks are free to offer such external benchmark linked loans to other types of borrowers as well. It has voluntarily extended the external benchmark based lending to Medium Enterprises to boost lending to the MSME sector as a whole. SBI Repo Rates SBI introduced repo-linked floating rate home loans from July 1, 2019. The new RBI guidelines for new floating rate home and auto loans, the banks have to reset rates at least once every three months. Banks have been given the freedom to decide the spread over the external benchmark. However, credit risk premium can change only when borrower’s credit assessment undergoes a substantial change, as agreed upon in the loan contract. Further, other components of spread including operating cost could be changed once every three years. The existing loans and credit limits linked to the MCLR/Base Rate/BPLR shall continue till repayment or renewal, as the case may be. The final rate charged to this category of borrowers, post switchover to external benchmark, shall be the same as the rate charged for a new loan of the same category, type, tenor and amount, at the time of origination of the loan. SBI  Chairperson: Rajnish Kumar Headquarters: Mumbai

    Samuel Joseph Jebaraj appointed as DMD of IDBI Bank for 3 years

    September 22, 2019
    IDBI Bank's Board of Directors approved the appointment of Samuel Joseph Jebaraj as Deputy Managing Director (DMD) for a period of 3 years with effect from September 19, 2019. The decision has been taken as per the approval received by the Reserve Bank of India (RBI). This is the first major appointment on the Bank’s Board, in which the Life Insurance Corportion of India (LIC) acquired a majority stake of 51 per cent in January 2019. The DMD position became vacant after KP Nair superannuated in May 2019. Samuel Joseph joined the Export-Import Bank of India (Exim Bank) in 1998.  He heads the Loan Administration and Human Resources Management Groups of the Bank as Chief General Manager. He headed the Corporate Banking, SME, Treasury, Accounts & Information Technology Groups at the Head Office of the Bank. He has served in the Bengaluru, Hyderabad, Milan and London Offices of Exim Bank in various capacities. The LIC invited applications from Indian nationals with an exemplary track record for one post of DMD. IDBI Bank has two DMDs on its Board. IDBI Bank Headquarters: Mumbai Founder: GOI by Act of Parliament

    Reserve of Bank of India tightens norms for banks up penalties

    September 21, 2019
    Reserve Bank of India prescribed a turnaround time (TAT) for banks to settle failed transactions for customers and also notified compensations payable for various types of customer complaints. The financial compensation should be done suo motu by the bank, without waiting for a complaint or a claim by a customer. The central bank had first announced a move to harmonise TAT this April for resolving customer complaints and compensation after observing that time taken for resolving customer complaint varies across payment systems. To have prompt and efficient customer service in all electronic payment systems it is necessary to harmonise the TAT of resolution of customer complaints and charge-backs and to have a compensation framework in place for the benefit of customers. The RBI categorised eight different avenues of transaction in which the new guidelines will be applicable, including ATMs, card transactions, immediate payment system, unified payment interface and prepaid cards. The timeline for auto-reversal has been set at between one day after the transaction to five days. The financial compensations have been set at Rs 100 per day if the reversal does not happen within a specified timeline. The move is aimed at upping customer confidence and bringing-in uniformity in processing of the failed transactions Customers who do not get the benefit of redress of the failure as defined in the TAT, can register a complaint to the banking ombudsman

    Public Sector Banks to organise loan melas in 400 districts

    September 21, 2019
    Public-sector banks (PSBs) hold public meetings with borrowers for distributing loans in 400 districts of the country to boost demand ahead of the festive season. Union Finance Minister Nirmala Sitharaman announced the banks will take help from non-banking financial companies (NBFCs). The National Democratic Alliance (NDA) government will be following the footsteps of its predecessor, the United Progressive Alliance (UPA) government introduced the concept of loan mela to boost credit by directing banks to lend to people through public meetings. The government has told PSBs not to declare stressed assets of micro, small and medium enterprises (MSMEs) non-performing assets (NPAs) till March 31 next year. This will come as a major boost to the sector with its 65 million firms employing around 120 million workers the biggest job creation after the agriculture sector. The government is also considering a special dispensation for the farm and MSME sectors. National Democratic Alliance (NDA) The announcements were made by the finance minister held a review meeting with top executives of PSB. The RBI says there is enough liquidity in the system but we keep hearing that it is not reaching the ground level. This will ensure that loans will reach people transparently. Such public meetings will take place in two phases during September 24-29 in 200 districts and October 10-15 in another 200 districts in shamiana or ceremonial tents. The banks have been told to extend all kind of loans, including those for housing and vehicles. The banks will avail of the special dispensation given by the RBI circular MSME sector Restructuring of Advances, dated January 1, 2019. MSMEs are unable to repay loans within 90 days of the due date and their accounts will not be treated as NPAs and banks will not seize their assets and take other action for loan recovery. However, according to the RBI circular, the aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrower should not exceed 25 crores as on January 1, 2019. It should continue to be a standard account as of January 1.

    SEBI sets up panel to create SSE

    September 21, 2019
    Capital market regulator Securities and Exchange Board of India (SEBI) set up a high-level panel to suggest possible structures and regulations create Social Stock Exchanges (SSE). The move comes after the budget announcement of the Finance Minister Nirmala Sitharaman in July about setting up such exchanges to take the capital markets closer to the masses and meet various social welfare objectives.  Aim: The creation of Social Stock Exchanges (SSE) aims to facilitate listing and fund-raising by social enterprises and voluntary organizations. It will also raise capital as equity, debt or as units like a mutual fund.  Roles and duties of the committee: The working group has been asked to examine and make recommendations with respect to possible structures and mechanisms within the securities market domain. This will facilitate the raising of funds by social enterprises and voluntary organizations. Committee members: SEBI plans to constitute a 15-member working group which will be headed by Ishaat Hussain, Director at SBI Foundation and former Finance Director at Tata Sons. The members of the committee include: T V Mohandas Pai, Chairman of Manipal Global Education and former director of Infosys Roopa Kudva of Omidyar Network India Amit Chandra of Bain Capital Saurabh Garg, Principal Secretary to Odisha government Shamika Ravi, Brookings India Director of Research and member of PM's Economic Advisory Council Vineet Rai of Aavishkaar Venture Girish G Sohani of BAIF Development Research Foundation Other members will include representatives from the Ministry of Corporate Affairs, Department of Economic Affairs, BSE and NSE. Also, three members of SEBI officials will also be on the panel, including one as the Convener.

    Indian Bank board gives in-principle nod to merge Allahabad Bank with itself

    September 19, 2019
    The board of Indian Bank given its in-principle approval for its amalgamation with Allahabad Bank. The Chennai-headquartered Indian Bank’s board held a meeting. The to discuss the merger, where it gave its in-principle approval to the merger, the bank informed the stock exchanges. The board approved the proposed capital infusion of up to ₹5,000 crore by the Centre through preferential allotment to the government. The Central government recently announced the merger of 10 public sector banks into four. Indian Bank will acquire Allahabad Bank (primarily present in eastern India) to form the seventh-largest public sector bank. The board after deliberations conveyed its in-principle approval for the amalgamation of Allahabad Bank with Indian Bank After the amalgamation, the combined entity will have over 6,100 branches across the country and overseas presence in three countries, it said. The business after the amalgamation will be more than Rs8 lakh crore. The Union government last month approved to merge 10 state-owned banks into four entities, to strengthen them and also to cut number of publicly hold banks into of the global-sized banks. Among the other amalgamation proposals, Punjab National Bank is to merge Oriental Bank of Commerce and United Bank of India with itself. And, Canara Bank will merge its regional peer Syndicate Bank with itself.

    RBI restricted access to credit data of consumers

    September 19, 2019
    The Reserve Bank of India (RBI) has asked the banks and non-banking finance companies (NBFCs) to restrict access to consumers' credit data on 16 September. The move aims to impact the business model of fintech companies. The Central bank has asked the banks and NBFCs to implement the measures in 15 days.  Penalty: ♦ The Credit Information Companies (Regulation) Act, 2005 (CICRA) violates sharing of information. RBI has warned that it will penalize the regulated entities in case of any breach. ♦ RBI also asked the Banks and NBFCs to provide details of every retail loan to all four credit information bureaus namely:  1.TransUnion CIBIL 2.Equifax 3.Experian  4.CRIF High Mark ♦ RBI has also sought clarity on the provisions under which the data was being shared under CICRA Reason behind the move: RBI has found that banks and NBFCs that have partnered with the fintech companies and institutional agents, give them access to the data without the consent of the consumers. These agents include analytics firms, IT companies, online marketplaces, and institutional agents. The outsourcing model was available in the past few years. RBI also figured the pattern of data sharing appeared during an annual audit of some banks.

    Airtel Payments Bank launches Bharosa savings account

    September 18, 2019
    Airtel Payments Bank launched Bharosa savings account which enables customers to withdraw cash check their balance or access a mini statement of their account at over 6,50,000 Aadhaar-enabled payment system (AePS) enabled outlets across India. These services have been designed for deepening financial inclusion in the country.  The benefits of this product will be further amplified through a structured roadway for the phased introduction of other features linked to formal banking. To begin with, it will be available at over a quarter million banking points.  The balance or access a mini statement of their account at over 6,50,000 AePS (Aadhaar-enabled payment system) enabled outlets across India. Airtel Payments Bank Bharosa savings account: Airtel Payments Bank launched Bharosa savings account which lets you open a savings account with just ₹500 minimum monthly balance. Along with convenient banking services, Bharosa savings account offers ₹5 lakh personal accident insurance on maintaining balance of ₹500. Airtel Payments Bank Bharosa Savings Account will allow you one debit transaction per month. Customers would also be eligible for cashback, if they decide to receive government subsidies in their Bharosa account or if they make cash deposits in it, the company said in a statement. Airtel Payments Bank offers digital banking services through a network of 5,00,000 neighbourhood banking points spread across India. Payments Bank According to the Reserve Bank of India guidelines for licensing of payments banks, the main objective of a payments bank is to enhance financial inclusion. This is expected to be done by providing small savings accounts.  A payments bank is not allowed to give any form of a loan or issue a credit card. Even in the case of savings accounts, a payments bank has certain restrictions. Customers can open a savings account with deposits of only up to ₹1 lakh.

    RBI Allows Payment Of All Recurring Bills Through BBPS

    September 17, 2019
    RBI expanded the scope of Bharat Bill Payment System (BBPS) to cover all repetitive bill payments. They may include school fees, insurance premiums and municipal taxes. Currently, the facility of payment of recurring bills through BBPS is available only in five segments namely direct to home (DTH), electricity, gas, telecom and water. BBPS functions under the aegis of National Payments Corporation of India (NPCI). The facility would be expanded to include other types of repetitive payments like insurance premium, mutual funds, school fees, EMIs, and municipal taxes, among others. The expansion of biller categories would increase the user base of Bharat Bill Pay along with providing an efficient, cost-effective alternative to the existing systems and enhance consumer confidence and experience. Bharat Bill Payment System (BBPS)  BBPS is an integrated bill payment system which offers interoperable bill payment service to customers online as well as through a network of agents on the ground. The system will provide multiple payment modes and instant confirmation of payment.

    Allahabad Bank board approves merger with Indian Bank

    September 17, 2019
    Allahabad Bank approved the merger proposal with Indian Bank. The main aim is to make the amalgamated entity the seventh-largest public sector lender of the country. The consolidation of 10 state-run banks into four large-scale lenders. The board of directors in a meeting held considered and accorded its in-principle approval for amalgamation of Allahabad Bank into Indian Bank. The employees and officers of Allahabad Bank staged a demonstration in front of its headquarters here to protest against the merger. The amalgamation is being opposed as Allahabad Bank has higher levels of CASA - current account and savings account more staff strength and a bigger volume of business compared to the other lenders. Allahabad Bank  Allahabad Bank is a nationalised bank.It is the oldest joint stock bank in India. Headquarters: Kolkata Founded: 24 April 1865 Indian Bank Indian Bank is an Indian state-owned financial services company established in 1907. It has 20,924 employees, 2900 branches with 2861 ATMs and 1014 cash deposit machines and is one of the top-performing public sector banks in India. Headquarters: Chennai CEO: Padmaja Chunduru

    IDBI to launch co-branded credit card with LIC

    September 14, 2019
    Life Insurance Corporation of India, IDBI Bank is planning to launch a co-branded credit card which will be marketed to customers, agents, and employees of the corporation and its subsidiaries. The co-branded credit card will be launched in association with LIC’s wholly-owned subsidiary, LIC Credit Cards Services (LIC CSL) before the festival season of Diwali gets underway, said Jorty M Chacko Executive Director, IDBI Bank. Currently, IDBI Bank offers five credit card variants. LIC CSL, which a tie-up with Axis Bank and Corporation Bank for issuance of credit cards under co-branded/white label agreements, provides credit card services to LIC employees, club member agents, and policyholders. The Chacko emphasised that IDBI Bank sees a huge potential customer base in LIC’s 29 crore policyholders, 11.80 lakh agents, and 1.12 lakh employees to cross-sell, among others, credit cards and home loans, and source deposits. As per LIC’s 2017-18 annual report, LIC CSL had a credit card subscriber base of 2,06,681 as of March-end 2018. IDBI Bank currently has a credit card subscriber base of about 35,000. LIC completed the acquisition of 51 per cent controlling stake in IDBI Bank in January 2019 for about ₹21,600 crore. The prior to the acquisition, LIC held 10.82 per cent stake in the bank. The government now holds 46.46 per cent stake in IDBI Bank, against 80.96 per cent stake held prior to the disinvestment in favour of LIC. According to IDBI Bank’s latest annual report, the majority stake acquisition by LIC has opened up several business avenues for the bank. IDBI Bank Headquarters: Mumbai Parent organization: Life Insurance Corporation

    State Bank of India revises service charges for deposits and withdrawals from October

    September 13, 2019
    State Bank of India or SBI on its website regarding revision of service charges with effect from 1st October. The bank allows free transactions to its customers at ATMs for 8-10 times in a month. The mandated number of free transactions, SBI charges a certain amount to its customers. Effective 1st October. SBI will also charge for transaction decline due to insufficient balance and cardless cash withdrawal at ATMs. The main things to know about SBI ATM withdrawal charges: Regular savings bank account holders get eight free transactions, including five transactions at SBI ATMs and three transactions at other bank ATMs. In non-metros, such account holders get 10 free transactions, including five at SBI ATMs and five at other bank ATMs.SBI charges a fee ranging from ₹5 plus GST to ₹20 plus GST for any additional transactions beyond this limit. SBI will charge ₹20 plus GST for transaction decline due insufficient balance.SBI will also charge ₹22 plus GST for cardless cash withdrawal at ATMs. SBI offers free unlimited transactions at State Bank Group (SBG )ATMs and other bank ATMs.  

    India and Asian Development Bank signs 200 million dollar loan agreement

    September 13, 2019
    India and Asian Development Bank signed 200 million dollar loan agreement. The agreement which will upgrade rural roads in 34 districts of Maharashtra to improve road safety. The project aims to improve the condition of about 2,100 km of rural roads to all-weather standards, with climate resilience and safety features. The main aim is to connect rural communities with productive agricultural areas and socio-economic centres. The road connectivity and better access to markets will help the farmers increase agricultural productivity and incomes. Asian Development Bank  Headquarters: Mandaluyong, Philippines President: Takehiko Nakao Founded: 19 December 1966 Membership: 68 countries

    State Bank of India launches OFS to sell stake in life insurance

    September 13, 2019
    State Bank of India is one of the biggest banking sector in India launched a two-day offer for sale (OFS) to sell a 4.5% stake in SBI Life Insurance Co Ltd.SBI is looking to sell up to 3.5% through the OFS with an option to sell an additional 1%.SBI Life started as a joint venture between the public sector lender and France’s BNP Paribas Cardif. The secondary share sale at ₹770 apiece, a discount of 3.6% to the stock’s closing price of ₹798.75. The Shares of SBI Life closed at ₹791.9 apiece down 0.86% on the BSE  SBI will fetch ₹3,465 crore about $487 million if it sells the entire 4.5% stake.The stake sale will help the company comply with minimum public shareholding norms (of 25%). The secondary share sale, which opened for institutional and non-retail investors subscribed 2.7 times. The Investment banks Sbicap Securities Ltd HSBC and Nomura are managing the share sale. SBI Life went public in September 2017 with an initial public offering, which saw SBI selling 8% and BNP Paribas Cardif selling a 4% stake. The total IPO size was worth ₹8,400 crore, with SBI raising around ₹5,600 crore and BNP Paribas Cardif around ₹2,800 crore.SBI sold a 3.9% stake to investors KKR and Co. LP and Temasek Holdings.This is the first time that SBI is selling its stake in the life insurer. The global private equity firm Carlyle Group acquired a 9% stake in SBI Life from BNP for around ₹4,600 crores.

    SBI cuts lending rates 10 bps

    September 10, 2019
    SBI announced its fifth-rate cut on its marginal cost of funds based lending rate by 10 basis points (bps) across all tenors. The interest rate is now 8.15%. It will be effective from 10 September 2019. The reduction in the lending rate is expected to profit all the current SBI clients who have a home, auto and other category loans of MCLR.  SBI has also reduced term deposit (TD) rates by up to 25 basis points.  Aim: The aim of the rate cut is for boosting credit requests in the festival season.  Non-banking fund organization: The Non-banking organization Bajaj Housing Finance Limited (BHFL) has decreased its home credit rates to 8.60% from 8.80% up to 30 lakh. SBI: SBI was founded in as Bank of Calcutta on 2 June 1806, as Bank of Bombay on 15 April 1840, as Bank of Madras on 1 July 1843, as Imperial Bank of India 27 January 1921, and as State Bank of India 1 July 1955. It is headquartered Mumbai, Maharashtra. The Chairman of SBI is Rajnish Kumar.  It is the largest bank in India.  Note: 1 basis point (bps) = one-hunderedth of a percentage point

    UK Sinha committee recommends Telangana startup policy for startups in other states

    September 10, 2019
    Reserve Bank of India (RBI) backed UK Sinha committee has recommended that Telangana's innovative model for start-ups should be assessed for possible replication in other states. UK Sinha, the former Chairman of SEBI, led committee submitted its report in June. The state's various incentives for startups and incubators are the reasons for its mention in the report. Telangana’s startup model: In its report, the committee noted that the Telangana’s startup model is based around five pillars namely: ♦ physical infrastructure development ♦ programme management capabilities ♦ sustainable funding models  ♦ focus on developing human capital and promoting experimentation  ♦ innovation from early education Also, the state had introduced various incentives for startups and various initiates for the startup ecosystem in the state. Some incentives include making the startup incubators’ eligible for 100% stamp duty reimbursement and registration fee paid on sale deeds on first transaction and 50% thereof on the second transaction. Apart from financial benefits, Telangana startup policy also allows startups and incubators to carry out self-certifications in prescribed formats.  UK Sinha committee: In June 2019, the Reserve Bank of India (RBI) constituted a committee under former SEBI Chairman UK Sinha to address issues regarding the sustainability of Micro, Small and Medium Enterprises (MSMEs).

    RBI to launch a mobile app to aid the visually impaired

    September 9, 2019
    Reserve Bank Of India (RBI) is to implement the idea to develop a mobile application with an aim to help the visually impaired people to identify currency notes. For this, RBI has selected Daffodil Pvt Ltd. Proposal: In June 2018, RBI declared that it would explore the feasibility to develop a suitable device or mechanism for aiding the visually impaired in the identification of Indian banknotes. In May 2019, the Central bank solicited bids from technology firms for developing the mobile application. Announced requirements: Features of the app as per RBI guidelines: ♦ The application should be able to identify the denomination of legal tender banknotes of Mahatma Gandhi Series and Mahatma Gandhi (New) series by capturing the image of the notes that are placed in front of the mobile camera or scrolled across it.  ♦ The mobile application should be searchable via voice option in all app stores.  ♦ The mobile application should be able to identify the banknote denomination in 2 seconds or less.  ♦ It shall provide multilingual support as well as audio notification. Selection: About 16 vendors showed their interest to develop the mobile application and 5 made it to the final ranking. RBI finally chose, Daffodil Pvt Ltd has been chosen to develop this mobile app within the denominations of Rs 10, 20, 50, 100, 200, 500 and 2,000 that are in circulation, besides Rs.1 notes issued by the Centre.

    RBI selects Daffodil Software Pvt Ltd for developing mobile app for visually impaired

    September 9, 2019
    The Reserve Bank of India selected a vendor to develop a mobile phone based application for them. The Bombay High Court that an internet connection would not be required for its proposed mobile application which would help visually impaired people identify currency notes. As many as 16 vendors shown interest in developing the mobile phone based application and five made to Final ranking. Daffodil Software Pvt Ltd selected to develop the application, it added. At present, banknotes in the denominations of Rs 10, 20, 50, 100, 200, 500 and 2,000 are in circulation, besides Re 1 notes issued by the Centre. The identification of banknote denomination is key to successful completion of cash-based transactions by visually impaired persons. Intaglio printing based identification marks for helping the visually challenged in identification of banknotes denomination are present in the notes of Rs 100 and above. After demonetisation of old Rs 500/1,000 notes in November 2016, new banknotes in design and sizes have been put in circulation. Reserve Bank of India has been sensitive to the challenges faced by the visually challenged in conducting their day to day business with Indian banknotes," the central bank had said while scouting for a vendor to develop the mobile application. The proposed mobile app would be able to identify the denomination of notes of Mahatma Gandhi Series and Mahatma Gandhi (New) series by capturing the image of the notes placed in front of mobile camera, the RBI said while inviting bids from tech firms to develop the app. The app will also generate audio notification intimating the currency note denomination to the user if image is captured correctly, else intimating the user to try again in case of image is not readable. There are about 80 lakh blind or visually impaired people in the country, who are likely to benefit from the initiative of the central bank. In June 2018, the central bank had stated that it would explore the feasibility of developing a suitable device or mechanism for aiding visually impaired in the identification of Indian banknotes.

    PNB puts up 11 NPA accounts for sale to recover dues of Rs 1,234 crores

    September 9, 2019
    Punjab National Bank, a government-run put up for sale nearly a dozen Non Performing Assets (NPA) to recover dues of over ₹1,234 crore. The bank invited bids from Asset Reconstruction Companies (ARCs)/ NBFCs/ banks/ financial institutions for 11 NPA accounts. The accounts having the bad loans include Visa Steel, which has irrecoverable dues of ₹441.83 crore, IndBarath Energy (Utkal) ₹414.23 crore, Aster Pvt Ltd ₹113.57 crore and Om Shiv Estates ₹100.16 crore. The government lender asked the prospective bidders to expedite the process of due diligence. The last date to submit the bids is 20 September 2019 and the auction will be open on 21 September. The PNB given in-principle approval for amalgamation of Oriental Bank of Commerce and United Bank of India with the lander. The government announced the series of mergers involving 10 state-owned banks, a move which will reduce the number of state-run banks to 12 from 27 in 2017. The Oriental Bank of Commerce and United Bank would be merged with the PNB to create India's second largest lender after State Bank of India.  

    Asian Development Bank to give $200 mn to upgrade rural roads in 34 districts of Maharashtra

    September 8, 2019
    Asian Development Bank (ADB) provides $ 200 million to upgrade rural roads to all-weather standards in 34 districts of Maharashtra. The main aim to improve road safety and better connectivity with markets. The agreement in this regard was signed between the government and the ADB. The project will improve the condition of about 2,100 kilometers of rural roads to all-weather standards, with climate resilience and safety features, connecting rural communities with productive agricultural areas and socio-economic centers. The Provision of contractual maintenance for five years following construction has also been provided under the project. The loan is a technical assistance grant of USD 1 million for institutional strengthening of the Maharashtra Rural Roads Development Association in areas such as road asset management, road safety, climate-resilient design and construction and web-based real-time project monitoring. Asian Development Bank (ADB)  President: Takehiko Nakao Founded: 19 December 1966 Membership: 68 countries  

    RBI declines Equitas request to extend listing deadline for small finance bank

    September 7, 2019
    The Reserve Bank of India (RBI) turned down a proposal by Equitas Holdings seeking an extension of the listing deadline for its subsidiary Equitas Small Finance Bank (ESFB) ordered freezing of the small finance bank's chief executive’s remuneration at the existing level. RBI communication to the small finance bank on Friday, the central bank told Equitas that its request for extension of timeline for listing of share of ESFB .ESFB was not permitted to open new branches and further restrictions may be imposed if the bank fails to make satisfactory progress towards listing of its shares. The small finance banks (SFBs) within three years of reaching net worth of ₹500 crore is mandatory as outlined in the guidelines for licensing of SFBs and as communicated to the bank at the time of granting of ‘in-principle’ approval and granting of license.The bank without an initial public offering (IPO) by giving its existing shareholders a direct 47% stake in the small finance bank. Since the announcement of this scheme, the stock has lost 8%. The Reserve Bank of India (RBI) barred Bandhan Bank from opening new branches without its approval and ordered the bank to freeze the salary of its chief executive Chandra Shekhar Ghosh over its failure to meet shareholding norms. The licence guidelines, the bank’s promoter, Bandhan Financial Holdings Ltd, had to reduce its stake from 82% to 40% within three years of commencing business. The Kolkata-based bank announced the acquisition of Gruh Finance Ltd, the affordable housing finance arm of Housing Development Finance Corp. (HDFC) to lower the promoter holding of Bandhan Financial Holdings in the bank.

    PNB approved its merger with OBC and United Bank of India

    September 6, 2019
    Punjab National Bank's (PNB) board has decided to give its in-principle approval for the merger with the Oriental Bank of Commerce and United Bank of India. The move is a part of the announcement of a major bank merger by the Finance Minister Nirmala Sitharaman. The directors of the Bank approved to commence the amalgamation process. The board also approved a capital infusion of up to Rs.18,000 crore from the government for preferential allotment of equity shares of the bank at a price determined in terms of SEBI (ICDR) Regulations. After the merger, PNB will be the country's second-largest PSB with Rs.18 lakh crore business. It will also be the second-largest branch network in India. Earlier, the government announced that the four major bank mergers. The merger of 10 public sector banks to be merged into four was announced by Finance Minister Nirmala Sitharaman. After the merger, there will now be 12 public sector banks after the latest round of consolidation of PSU banks.

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