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Last Updated: August 25, 2019 13 hours ago

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  • BookMyForex join hands with YES Bank for foreign exchange travel card

    13 hours ago
    BookMyForex partnered with YES Bank and card payment company Visa to launch a co-branded multi-currency forex travel card that will provide a smooth payments solution to Indians traveling abroad. They can load up to 10 currencies on the card. The forex travel card will be available to Customers on the BookMyForex platform for free of cost across major cities in India. The platform will offer zero margin or exact inter-bank rates 24*7 on purchases made through the forex travel card.BookMyForex will also offer modern contactless cards that allow a user to simply tap their card on a POS machine, a must-have feature in countries like UK(United Kingdom) where some merchants only allow contactless payments.Customers will be able to manage the travel cards through the mobile app by getting real-time notification alerts and view the INR (Indian rupee) equivalent of all amounts they spent. They will also get value-added services like tracking currency-wise balances, locating surcharge-free ATMs (Automated Teller Machine) nearby and reload their travel cards while traveling abroad. BookMyForex: Founded: 2011 Headquarters: Gurgaon, Haryana Founder and CEO: Sudarshan Motwani YES Bank: Formation: 2004 Headquarters: Mumbai, Maharashtra CEO & MD: Ravneet Gill

    RBI allows recurring transactions up to 2,000 on cards from Sep 1

    2 days ago
    The Reserve Bank of India allows customers to make recurring payments of less than Rs.2000 without the two-factor authentication process. The changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience decided to permit processing of e-mandate on cards for recurring transactions (merchant payments). The move has been made to make digital payments to the merchant, typically at kirana and grocery stores where ticket sizes are small, more convenient. The circular is applicable for transactions performed using all types of cards – debit, credit and Prepaid Card Reserve Bank of India Headquarters: Mumbai Founder: British Raj Founded: 1 April 1935, Kolkata Governor: Shaktikanta Das

    RBI allows recurring transactions up to 2,000 on cards from Sep 1

    2 days ago
    The Reserve Bank of India allows customers to make recurring payments of less than Rs.2000 without the two-factor authentication process  The changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience decided to permit processing of e-mandate on cards for recurring transactions (merchant payments) The move has been made to make digital payments to merchant, typically at kirana and grocery stores where ticket sizes are small, more convenient.  The circular is applicable for transactions performed using all types of cards – debit, credit and Prepaid Card Reserve Bank of India Headquarters: Mumbai Founder: British Raj Founded: 1 April 1935, Kolkata Governor: Shaktikanta Das

    RBI permits processing of e-mandate on credit and debit cards for recurring merchant payments

    2 days ago
    The Reserve Bank of India (RBI) permitted processing of e-mandate on credit and debit cards for recurring transactions (merchant payments) with a cap of ₹2,000.RBI receiving requests from industry stakeholders to allow this with an additional factor of authentication during e-mandate registration and the first transaction.The permit processing of e-mandate on cards for recurring transactions (merchant payments) with AFA during e-mandate registration, modification and revocation, The central bank done keeping in view the changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience. RBI added that no charges should be levied or recovered from the cardholder for availing the e-mandate facility on cards for recurring transactions.The direction is applicable for transactions performed using all types of cards—debit, credit and Prepaid Payment Instruments (PPIs), including wallets.The central bank brought forward by an hour when the real time gross settlement (RTGS) system will become available. The transfer of funds through the system will be available.RBI decided to allow round-the-clock fund transfers through NEFT from December. Reserve bank of India Headquarters: Mumbai Founder: British Raj Founded: 1 April 1935, Kolkata Governor: Shaktikanta Das  

    SEBI announces reward of Rs 1 crore to insider trading informants

    3 days ago
    The Securities and Exchange Board of India (SEBI) announced a new mechanism to reward informants with up to Rs 1 crore cash through a specially created hotline SEBI’s board approved a detailed set of rules for the new ‘Informant Mechanism’ under its Prohibition of Insider Trading (PIT) Regulations. The benefits available to individuals and corporates, and professionals like auditors will not be able to use this route as they are duty-bound to report any wrongdoing. SEBI SEBI regulation to trade to protect the interest of investors at large and defines ‘insider trading’ as trading of securities while in possession of unpublished price-sensitive information.SEBI to detect insider trading and initiate action at the earliest to instill confidence among investors and ensure the integrity of the market.SEBI faces several challenges in establishing links and procuring proof while probing insider trading cases, due to which investigation into such cases takes much longer time than in other cases of market manipulation. The new mechanism work The new mechanism prepared after taking into account the feedback .Under the proposed SEBI’s PIT Regulations, an informant need to submit a Voluntary Information Disclosure Form (VIDF) The source of information not be sourced from a person employed with SEBI.The informant would need to disclose his or her identity to OIL. The informant would be given a reward if SEBI is able to disgorge at least Rs 1 crore. The reward would be 10 percent of the money collected, subject to a maximum amount of Rs 1 crore.SEBI will share the main points with different regulators and enforcement agencies in the Republic of India or abroad. The entity associated with the securities markets, including listed firms and intermediaries.

    State Bank of India aims to eliminate debit cards

    August 20, 2019
    State Bank of India bank debit cards from the banking system as the bank plans to promote more digital payment solutions and eliminate the plastic cards. The debit cards by customers of SBI which services a fifth of the population. Around 90 crore debit cards in the country as against 3 crore credit cards, and pointed out to digital solutions like its own 'Yono' platform as the key for achieving a debit card-less country. Kumar said through the Yono platform, one can withdraw cash at automated teller machines or pay for purchases at a merchant establishment without having a card at all. The bank already set up 68,000 'Yono cashpoints' and is in the process of scaling it up massively to over 1 million in the next 18 months.which will make the necessity to have a card even less. The Yono platform can also give credit for buying certain merchandise, making the credit card in the pocket also as a stand-by. In the next five years, there will be a limited need to have any plastic cards in your pocket, Kumar said, pointing out that virtual coupons is the future. The QR code is also a very inexpensive way of ensuring payments. State Bank of India Headquarters: Mumbai, Maharashtra Founded: 2 June 1806  

    Income Tax Department to adopt 'taxpayer friendly' approach

    August 19, 2019
    The Income Tax (I-T) Department decided to adopt friendly approach in its dealings with the tax assessees following Finance Minister Nirmala Sitharaman's call for a mindset change among tax officials.The I-T Department to bridge the communcation gap between tax officials and the assessees and sought a change in mindset amid allegations of "tax terrorism".The issues are concerned and solve issues by treating them respectfully The I-T department is set to change its approach and adopt friendly language but not at the cost of forgoing any lapses. The department will use friendly language in its communications with taxpayers rather than intimidating, according to a source, amid allegations of intrusive, threatening and arbitrary behaviour by the department. The data mining and data analytics, the Central Board of Direct Taxes (CBDT) is now working on ways to ensure the department makes information such as large-cash deposits or high-value transactions" available to taxpayers well in time for filing of tax returns. On the lines of reminders for filing returns, messages could be sent to indicate transactions while stating that they are ignored if already responded to or accounted .The Central Board of Direct Taxes (CBDT) introduce a computer-generated Document Identification Number (DIN), which will be quoted in any notice issued by its officials.  

    Denmarks Jyske Bank unveiled worlds first negative interest rate home loan

    August 16, 2019
    Denmark’s third-largest bank Jyske Bank launched the world’s first negative interest rate mortgage. The bank handling out loans to homeowners where the charge is minus 0.5% a year. It has begun offering borrowers a 10-year deal at -0.5%. Jyske bank borrowers will make a monthly repayment, as usual, The amount still outstanding will be reduced each month by more than the borrower. Negative interest rates effectively mean that a bank pays a borrower to take money off their hands, so they pay back less than they have been loaned. Another Danish bank, Nordea will begin offering 20-year fixed-rate deals at 0% and a 30-year mortgage at 0.5%. About Jyske Bank: ♦ Founded: 1967 ♦ Headquarters: Silkeborg, Denmark ♦ CEO: Anders Dam  

    RBI to issue revised norms for housing finance companies

    August 15, 2019
    The Reserve Bank of India (RBI) housing finance companies (HFCs) treated as a category of non-banks release a revised regulatory framework for these entities. The Finance Act, 2019 amended the National Housing Bank Act, 1987, The conferring certain powers for the regulation of HFCs with the Reserve Bank of India.HFCs be treated as one of the categories of non-banking financial companies (NBFCs) for regulatory purposes. The Reserve Bank of India will carry out a review of the extant regulatory framework applicable to HFCs and come out with revised regulations in due course.HFCs will continue to comply with the directions issued by the National Housing Bank (NHB) till the RBI issues a revised framework.The NHB continue to carry out supervision of HFCs and they will continue to submit various returns to NHB. The grievance redressal mechanism with regard to HFCs will also continue to be with the NHB. The housing finance institution is desirous of making an application for registration under sub-section 2 of section 29A of the National Housing Bank Act, 1987.Finance minister Nirmala Sitharaman proposed an amendment to Section 45-IA of the RBI Act 1934 in the Finance Bill.The amended Act empowers the central bank to supersede the board of NBFCs (other than those owned by the government) and enable resolution of financially troubled NBFCs through a merger or splitting them into viable and non-viable units called bridge institutions. The central bank can now remove auditors, call for audit of any group company of an NBFC and have a say over the compensation of the senior management.

    RBI launches regulatory sandbox for Fintech companies

    August 14, 2019
    The Reserve Bank of India (RBI) issued the final framework for regulatory sandbox (RS) for the startups, banks and financial institutions. The Fintech companies can now set up their own RS for live testing of innovative products in areas like retail payments, digital KYC and wealth management.  Aim: The framework aims to enable innovations in the financial technology space. It will also foster responsible innovation in financial services, promote efficiency and bring benefit to consumers. It will encourage innovations that are intended for use in the Indian market in areas where there is absence of governing regulations. Eligibility to enter RS: Fintech companies including startups, banks, financial institutions and any other company partnering with or providing support to financial services businesses. Guidelines: As per the guidelines: Mobile technology applications, data analytics, application program interface (APIs) services, applications under block chain technologies, and artificial intelligence and machine learning applications can also be considered for testing under RS.  The sandbox entity should ensure that any existing obligations to the customers of the financial service under experimentation are fulfilled or addressed before exiting or discontinuing the RS. Regulatory Sandbox (RS): A regulatory sandbox refers to live testing of new products or services in a controlled/test regulatory environment. The regulators can permit certain regulatory relaxations for the limited purpose of the testing.

    Centre introduces scheme for NBFCs and HFCs

    August 14, 2019
    Centre has announced a partial guarantee scheme in the budget for non-banking finance companies (NBFCs) and housing finance companies (HFCs). The scheme will allow the Public Sector Banks to purchase their assets.  Aim: The scheme is aimed to provide liquidity support to the NBFCs and HFCs. The key reason for the slowdown in the economy is the stress on NBFCs and HFCs. The stress has also caused reduced credit flow to small businesses and consumers. Now, by improving the liquidity the scheme aims to avoid the distress sale of assets in a sector facing a shortage of cash due to asset- liability mismatch. For the implementation of the scheme, the government has planned a mechanism which will elicit information on a real-time basis. Guidelines of the Scheme: As per the guidelines: ♦ If any assets purchased by a bank from a stressed NBFC or HFC, the Department of Economic Affairs (DEA) will provide government guarantee of up to 10% of the fair value of assets.  ♦ The scheme will be capped at Rs.1 lakh crore and will be open for up to six months. ♦ The government will settle claims by banks within five working days. ♦ NBFCs will have to pay a fee to the government, at 0.25% per annum of the fair value of assets sold to banks.  ♦ Standard assets: They will be able to sell 20% of standard assets, worth up to Rs.5,000 crore, as on March 31. ♦ Pooled assets: The one-time guarantee on the pooled assets will be valid for 24 months from the date of purchase and can invoked in specified circumstances. ♦ The Department of Financial Services will obtain information on transactions in a prescribed format from PSBs and send a copy to the budget division of the Department of Economic Affairs.  ♦ NBFCs that registered with RBI and HFCs registered with National Housing Bank can take benefit under the scheme.

    CBDT rebuts incorrect reports about Income Tax notices to Durga Puja Committees

    August 14, 2019
    Income Tax notices being issued to Durga Puja Committees in Kolkata. Income Tax notices sent to the Durga Puja Committee Forum. The reports are factually incorrect and are strongly denied. The department getting information that several contractors who were doing work for the Puja committees were not paying due taxes.The notices under section 133(6) of the Income Tax Act, 1961 were issued in December, 2018 to about 30 committees. It was part of an exercise carried out by the TDS wing of the Department to ensure that the contractors and event managers pay their due taxes in time. The committees complied and furnished evidence of tax deducted at source as well as deposit of the same into the Government account. It is also pertinent to state that several committees requested the Department to organise educative sessions to explain the provisions of TDS to the committees. The outreach programme was organised on the 16th of July, 2019 for the Durga Puja Committees at their own request. Nearly eight (8) members of the Forum attended the outreach program voluntarily and were educated about the provisions of TDS.  It is reiterated that the aforesaid exercise is in no manner whatsoever against the Puja Committees, but has been undertaken to ensure that the contractors and event managers pay their due taxes correctly within the stipulated time. Income Tax Department Founded: 1922 Minister responsible: Nirmala Sitharaman, Finance Minister Headquarters : New Delhi

    State Bank of India and BoB to link home loan product to RBIs repo rate

    August 14, 2019
    Bank of Baroda (BoB) planned to linked its home loan product to RBI’s (Reserve Bank of India (RBI)repo rate after State Bank of India (SBI). With this, home loans at BOB will be available at repo rate linked interest rate starting at 8.35%The MCLR linked home loan product is available starting at 8.45%, which had come into effect on 7th August 2019 after the MCLR was reduced by 15 basis points(bps).This decision is following RBI reducing the key interest rate (repo) by 35 basis points to a nine-year low of 5.40%.Many other state-run banks, including Union Bank of India, Allahabad Bank, Bank of India and Syndicate Bank expressed their intention to launch loan products linked to an external benchmark. About SBI: Headquarters: Mumbai, Maharashtra Chairman: Rajnish Kumar About Bank of Baroda Headquarters: Alkapuri, Vadodara CEO: P. S. Jayakumar  

    China to soon launch its own cryptocurrency

    August 13, 2019
    People’s Bank of China (PBoC) is issuing its own cryptocurrency. The bank’s researchers have been working last year to develop systems, and the cryptocurrency is “close to being out," The event is held by China Finance 40 Forum over the weekend in Yichun, Heilongjiang. Mu repeated the PBoC’s intention that the digital currency would replace M0 or cash in circulation rather than M2, which would generate credit and impact monetary policy. The digital currency support the yuan’s circulation and internationalization.The remarks signal the PBoC is inching toward formally introducing a digital currency of its own after five years of research. Facebook Inc.’s push to create cryptocurrency Libra caused concerns among global central banks, including the PBoC digital asset must be put under central bank oversight to prevent potential foreign exchange risks and protect the authority of monetary policy. The Libra must be seen as a foreign currency and be put under China’s framework of forex management.The decentralized blockchain-based offerings, the PBoC’s currency is intended to give Beijing more control over its financial system.According to patents registered by the central bank, consumers and businesses would download a mobile wallet and swap their yuan for the digital money which they could use to make and receive payments. The PBoC could also track every time money changes hands. China President: Xi Jinping Trending Capital: Beijing Currency: Renminbi

    RBL Bank with digital healthcare platform Practo launches co-branded credit card RBL Bank Practo Plus

    August 12, 2019
    RBL Bank, one of India’s fastest-growing private sector banks and Practo, India’s leading digital healthcare platform, have partnered to launch a co-branded credit card, powered by Mastercard. This industry-first credit card is available. The people are increasingly busy to pay attention to their day-to-day health needs, this is an innovative step to encourage users to think health-first on a daily basis. The card is designed to cater to customers in both metros and non-metro cities, through Practo and RBL Bank’s extensive customer base that spans across the country. The unlimited online consultations with doctors 24*7, users are guaranteed that there is an experienced qualified doctor available to them whenever there is a need - instead of relying on self-diagnosis or advice from friends and relatives.   Benefits of RBL Bank Practo Plus credit card:  Unlimited online consultations with doctors 24*7 for 1 year One free full-body health check-up For every Rs100 spent on this card, cardholder earns 1 Practo HealthCash HealthCash can be used while availing Practo services like ordering medicine, tests, online consultations (1 Health cash = 1 Rupee)  The moment the credit card is issued, a Practo health plan account gets created on Practo app. The cardholders need to log in with their registered mobile number to access this plan under the "MyHealth Plan" section on Practo. The card also offers two complimentary domestic airport lounge access every quarter.   The retail, Inclusion & Rural Businesses to enter into a partnership with Practo and launch a card that prioritizes good health and well-being. The partnership is a perfect example of how two diverse industries can come together to offer a compelling value proposition for customers. Healthcare is a largely untapped segment and this partnership will be a great opportunity for the Bank and Practo to leverage on each other’s strength to capture the market and offer customers a one-of-a-kind health card with exciting offers. The Bank’s credit cards business has performed extremely well this year and with this partnership, we look forward to strengthening our business further by entering a new market segment RBL Bank for launching a new credit card that is focused on making healthcare more affordable for consumers. We all have regular spends on appointments, medicine, and diagnostic tests. This card gives a unique ability to consumers to use their regular spends for household expenses for subsidizing their monthly health spends on Practo platform. At Practo, it's our constant endeavor to make healthcare simpler, more accessible and affordable. This card is one step towards achieving this vision The digital healthcare market is on a tremendous uptake in India and is expected to reach $372 bn by 2022. Practo is currently the only platform in the country that lets patients manage their healthcare needs end-to-end. It provides a single platform that helps patients meet all their healthcare requirements at one go from finding the right doctor to booking an appointment, online doctor consultation, getting lab tests done and medicines delivered. The company also enables doctors to digitize their medical practice management - lowering practice management burdens and increasing efficiency - extend their reach and visibility to patients, and even establish credibility through a digital presence complete with details of practice history, qualifications and documented patient experiences.  

    State Bank of India MD Dinesh Kumar Khara got an extension by 2 years after a review of his performance

    August 10, 2019
    The Appointments Committee of the Cabinet, Government of India extended the tenure of State Bank of India(SBI) Managing Director (MD)Dinesh Kumar Khara by another 2 years with effect from August 9, 2019. He is appointed Managing Director of State Bank of India (SBI) for a period of three years on August 10, 2016. He holds a Board level position in supervising the businesses of SBI’s nonbanking subsidiaries He was engaged in diverse financial activities such as Asset Management, Life Insurance, General Insurance, Custodial Services, Primary Dealership,.etc. He joined SBI as Probationary Officer (PO) and has over 33 years of experience in all sides of Commercial banking such as Retail Credit, deposit mobilization, international banking operations, branch management. Khara worked in SBI’s Chicago office and was associated with the overseas acquisition of Indian Ocean International Bank Mauritius (now SBI Mauritius) during his stint in Overseas Expansion wing of International Banking Group. He also worked as the MD&CEO of SBI Funds Management Pvt. Limited (SBIMF). About SBI: Headquarter: Mumbai Chairman: Shri Rajnish Kumar

    Indian Bank and Aditya Birla Sun Life Insurance ink pact

    August 9, 2019
    Public sector Indian Bank inked a pact with private sector insurer Aditya Birla Sun Life to offer life insurance products to the bank's customers. The partnership would see around 2,900 branches of the bank offering a diverse range of life insurance policies to its customers. Aditya Birla Sun Life insurance would work with the city-headquartered bank for sales training, product support and ensuring smooth operational processes. The documents were exchanged between Indian Bank Managing Director and CEO, Padmaja Chunduru, Aditya Birla Sun Life Insurance Company, MD and CEO Ajay Srinivasan. Indian Bank Founded: 15 August 1907 Headquarters: Chennai, India Managing Director and CEO: Ms. Padmaja Chunduru 

    SBI Life Insurance, Indian Bank ink Bancassurance pact

    August 9, 2019
    SBI Life Insurance and Chennai-headquartered Indian Bank entered into a bancassurance pact to offer holistic financial planning solutions to the latter’s customers. The partnership will see for 2,851 branches of Indian Bank across the country for insurance solutions.SBI Life will work with Indian Bank to ensure sales training, product support and smooth operational processes in order to offer life insurance policies to its customers. Indian Bank’s customers have access to an array of life insurance products from SBI Life catering to varied life stage needs of the customer. Padmaja Chunduru, MD & CEO, Indian Bank.SBI Life Insurance said that Bancassurance as a channel has been a strong differentiator for the life insurer and it continues to explore more opportunities through partnerships with credible organisations.The bancassurance agreement was signed in the presence of Padmaja Chunduru and Sanjeev Nautiyal. It comes on the heels of a similar agreement between Aditya Birla Sun Life Insurance (ABSLI), the life insurance subsidiary of Aditya Birla Capital Ltd (ABCL), and Indian Bank.

    ADB approved USD 200 millions to improve road infrastructure in 34 districts of Maharashtra

    August 9, 2019
    Asian Development Bank (ADB) approved a loan of $200 million to upgrade rural roads to all-weather standards in 34 districts of India’s Maharashtra State to better connect rural areas with markets and services. The upgraded roads under the ADB project will boost links between local residents, productive agricultural land, and economic centers across the state.“Improving farmers’ access to markets turn help boost agricultural productivity and incomes as well as promote investment in agribusiness and agriculture value chain infrastructure. Maharashtra accounted for almost 15% of India’s gross domestic product in fiscal year (FY) 2017, the biggest share among India’s states. However, economic development is concentrated around the urban centers of Mumbai, Pune, and Thane. There are imbalances in human development across districts while income inequality is one of the highest among all states in India. About 20 million people, or 17% of the state’s population, still live below the national poverty line. Agriculture Sector Agriculture accounts for about 47% of employment, engages as much as 79% of the rural labor force, and contributes 11% to the state gross domestic product. However, this contribution is falling. Farmers face persistent crop losses due to the variable climate and limited access to processing and storage facilities, resulting in high levels of debts and even farmer suicides.Maharashtra an extensive road network, with rural roads making up two thirds of the network. Rural roads are unsealed, making them unsuitable for motorized traffic and impassable during the rainy season. Road safety been a growing concern, with the state accounting for more than 8% of all fatal road accidents in India.ADB previously supported rural road development in several South Asian countries. The project will build on their experience to upgrade 2,100 kilometers of rural roads to all-weather standards, including contractual maintenance for 5 years following construction. Road designs will incorporate climate resilient features such as improved drainage and higher surface elevations, and stronger embankments, and safety features such as signage, guard posts, and speed breakers.  The project will work with the rural infrastructure agency, the Maharashtra Rural Road Development Association (MRRDA) The main aim is to develop road safety, road asset management, contract management, and climate resilient design. The loan is a technical assistance grant of $1 million to support MRRDA to improve its management performance in these areas. The road users will be carried out in the state to build awareness of road safety, gender issues including human trafficking, and enhancing women’s road construction and maintenance skills. The total cost of the project is $296 million government will provide $96 million. It is due for completion at the end of September 2024. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. They Established in 1966, it is owned by 68 members 49 from the region.  

    SBI announced repo rate cut after RBI policy announcement

    August 8, 2019
    The State Bank of India (SBI), the country's largest lender, have cut the home loan rates after RBI's repo rate cut of 35 bps for the fourth time in a row.   SBI announced its Marginal Cost based Lending Rate (MCLR) cut by 15 basis points (bps) across all tenors. It will be effective from August 10, 2019. The move is to provide some respite to home loan borrower. After this move, the one-year MCLR is reduced to 8.25% per annum, from 8.40% annum. This is the fourth consecutive cut in MCLR in FY 2019-20 by SBI. SBI's repo rate: Repo rate-linked Home loan product: The SBI has been a repo rate-linked home loan product from 1 July 2019. The interest rate on this particular product gets revised automatically whenever there is a change in repo rate. RLLR: The effective Repo Linked Lending Rate (RLLR) for cash credit/overdraft customers has been revised to 7.65%. FD: SBI has also revised fixed deposit rates and cut the interest rates on FDs by 20 to 75 bps on August 1, 2019. Large saving account deposits:  SBI has linked interest rate on large saving account deposits, which is above ₹1 lakh, to repo rate on 1 May. After the cut, it now offers an interest rate 275 bps lower than RBI's repo rate. 

    Reserve Bank of India Expands biller categories for Bharat Bill Payment System

    August 8, 2019
    The Reserve Bank of India allows all categories of billers to accept prepaid recharges under the Bharat Bill Payment System (BBPS). The BBPS currently covers billers in five segments, DTH, electricity, gas, telecom and water bills.  The regulator is expected to issue detailed instructions in this regard by the end of September 2019. The advantages of the BBPS and harness its full potential decided to permit all categories of billers (except prepaid recharges) who provide for recurring bill payments to participate in BBPS on a voluntary basis. Apart from digitization of cash-based bill payments, it will enable standardized bill payment experience, centralized customer grievance redressal mechanism, and standardized customer convenience fee. The regulator allowed on-tap authorization of retail payment systems to companies looking to function as BBPOU, TReDS and white-label ATMs.  Reserve Bank of India Governor: Shaktikanta Das Headquarters: Mumbai, Maharashtra, India

    Mastercard launches identity check express to secure online transactions

    August 7, 2019
    Mastercard announced the launch of Identity Check Express, a next-generation, mobile-first authentication solution aims to redefine the e-commerce journey for Indian consumers. The solution will help eliminate unnecessary friction and enhance the security of online transactions. Global Mastercard Cybersecurity Summit held for the first time in India. MasterCard  Mastercard’s analysis suggests that up to 20% of mobile e-commerce transactions. The existing methods to verify an identity online can take shoppers away from a merchant’s website are time-consuming due to issues such as consumers being redirected to a browser environment for in-app payment. Mastercard Identity Check Express combines the latest technology including device intelligence and behavioral biometrics with the latest EMV 3-D Secure and FIDO authentication standards to deliver an uninterrupted mobile payment experience. Mastercard will offer a frictionless payment experience to Mastercard cardholders at leading merchants for an amount less than ₹ 2,000 on their trusted mobile devices. The transactions greater than ₹ 2,000, cardholders able to authenticate themselves with a transaction PIN. Mastercard announced an investment of $1 billion over the next five years in India, in addition to its earlier investment of $1 billion between 2014 and 2019. A significant part of this investment will help establish a full, on-soil domestic transactions processing center in and for India with the remainder being directed towards building out a Services Hub in collaboration with the global teams, focused on developing and delivering other services in cybersecurity, such as authentication, tokenization, cyber and intelligence solutions, and data analytics.

    RBI cuts 35bps repo rate in August policy

    August 7, 2019
    The Reserve Bank of India (RBI) announced a 35 basis points (bps) cut to the benchmark repo rate on 7th August. The announcement was made after the RBI Governor Shaktikanta Das-led third bi-monthly policy review by the Monetary Policy Committee (MPC) for 2019-20. This reduction is the fourth in a row since Shaktikanta Das took over as the governor in December 2018. It is the lowest since April 2010.  The interest rate cut will address the growth concerns by boosting aggregate demand and target private investment as a priority. MPC's decisions: ♦ RBI has reduced its GDP growth forecast for 2019-20 from 7% to 6.9%. ♦ The reverse repo rate under the Liquidity adjustment facility (LAF) was revised to 5.15% whereas the policy repo rate under LAF has been reduced by 35 basis points (bps) from 5.75% to 5.40%. The Marginal standing facility (MSF) rate and the Bank Rate has been revised to 5.65%.  ♦ The RBI will set a Central Payment Fraud Registry to track frauds in the payment systems. ♦ RBI plans to issue detailed guidelines on permitting banks to on-lend through NBFCs. The move aims to increase credit flow to certain priority sectors which contribute significantly to the economic growth in terms of exports and employment. ♦ NEFT system will be made available on a 24x7 basis from December 2019. Reason for India's GDP growth reduction:  The reason for India's GDP reduction is a slowdown in consumption demand, government spending and the lack of quality jobs. The International Monetary Fund (IMF) has lowered India’s GDP growth rate for FY20 to 7% from 7.3% on 23 July. It cited reasons as poor demand conditions. GDP growth in the fourth quarter of FY19 slowed down to 5.8%, whereas it was 6.6% in the third quarter, which is the slowest quarterly GDP growth rate in five years.  Also the growth in the eighth infrastructure sectors was just 0.2% in June. It constitutes of 40.27% of the index of industrial production. Policy  Rates: Policy Repo Rate: 5.40% Reverse Repo Rate: 5.15% Marginal Standing Facility Rate: 5.65% Bank Rate: 6.00% Reserve  Ratios: Cash Reserve Ratio (CRR): 4% Statutory liquidity ratio (SLR): 18.75%

    Malaysia seizes $240 million from Chinese state firm's bank account

    August 5, 2019
    Malaysia seized more than 1 billion ringgit ($243.25 million) from a bank account of state-owned China Petroleum Pipeline Engineering Ltd (CPP), The seizure comes nearly a year after Malaysia suspended two pipeline projects, valued at $2.3 billion, on which CPP was the lead contractor.The Malaysian government ordered HSBC to transfer the funds held in the Chinese firm’s account to Suria Strategic Energy Resources.CPP was perplexed by the unilateral transfer of funds out of its account without notification, the firm, a unit of state energy giant China National Petroleum CorpCPP won a contract from the government of former prime minister Najib Razak to build a petroleum pipeline stretching 600 km (373 miles) along the west coast of peninsular Malaysia and a 662-km (411-mile) gas pipeline in Sabah. The projects were suspended last July by Prime Minister Mahathir Mohamad, who unexpectedly defeated Najib in the 2018 election.

    Reserve Bank of India imposes 11 crore fine on seven PSBs for violating norms

    August 5, 2019
    The Reserve Bank of India imposed a penalty of ₹11 crores on seven public sector banks for violating norms on current account opening.The banks which includes Allahabad Bank and Bank of Maharashtra have been imposed a fine of ₹2 crore each, Bank of Baroda, Bank of India, Indian Overseas Bank and United Bank of India have been slapped with fines of ₹1.5 crore each, while Oriental Bank of Commerce has been imposed with a penalty of ₹1 crore.The penalties have been imposed in exercise of the powers imposed in the central bank under the provisions of the Banking Regulation Act, 1949.It is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.The oral submissions made in the personal hearings and examination of additional submissions. RBI imposed a fine of ₹1 crore on Corporation Bank for non-compliance of norms related to cyber security framework for banks, and frauds classification . Reserve Bank of India It is India's central banking institution controls the issuance and supply of the Indian rupee. The Monetary Policy Committee established in 2016. Headquarters: Mumbai Founder: British Raj Governor: Shaktikanta Das  

    State Bank of India and Shanghai becomes first Indian bank to link up with CNAPS

    August 5, 2019
    State Bank of India's Shanghai branch linked to China's National Advanced Payment System (CNAPS). It is the first Indian Bank to operationalize it. The CNAPS, launched in 2008 by the People's Bank of China (PBOC) provides real-time settlement services for all payments cleared in China. The CNAPS system is complemented by its international counterpart, the CIPS (China International Payments System or Cross-Border Interbank Payment System) launched in 2015  Main Aim: To boosting international use of the Chinese currency, yuan. The participants from multiple countries across the globe participated. State Bank of India SBI is the only Indian bank to have obtained the license to do business in local currency .The SBI obtained the PBOC approval in December 2016 for implementation of the CNAPS and after successful installation of various hardware and software, It eliminates the need for tie up and maintenance of accounts with multiple Banks for fund transfer.CNAPS will also be used for cross border RMB payments made through local correspondent banks. SBI opportunity to do business of Bankers acceptance drafts (BAD) started its representative office in 1997 and began its commercial operation in 2006.It is only Indian bank with license to deal in RMB, the local currency, as well as foreign currency.The total customer credit of nearly $500 million and staff strength of 40 people that includes 32 Chinese nationals, the bank has always been at the forefront of facilitating India-China trade and investments apart from serving the Indians working in China in the field of IT and others.The bank extends bank guarantee facility to Chinese corporates undertaking various construction, tech, and investment projects. The bank extending term as well as working capital credit facilities to Indian corporates and companies promoted by Indians in China to facilitate Indian investment in China. The bank has also been an active participant in local syndication arranged by major foreign as well as Chinese banks. The bank has been facilitating Indians working in China in their remittance.

    RBI allows Bank of China to offer regular banking services in India

    August 3, 2019
    The Reserve Bank of India (RBI) allowed Bank of China to offer regular banking services in the country. Commercial banks, like SBI, HDFC Bank, Punjab National Bank and ICICI Bank, are in the Second Schedule.  Banks falling under this schedule have to adhere to the norms of the RBI.The Bank of China Limited included in the Second Schedule to the Reserve Bank of India Act, 1934.The RBI told Jana Small Finance Bank Limited included in the Second Schedule.The Royal Bank of Scotland plc' changed to 'NatWest Markets Plc' in the Second Schedule.National Australia Bank' ceased to be a banking company within the meaning of the Banking Regulation Act excluded from the Second Schedule.  Bank of China It is one of the four biggest state-owned commercial banks in China. Bank of China is legally separate from its subsidiary Bank of China. Reserve Bank of India The Reserve Bank of India is India's central banking institution, which controls the issuance and supply of the Indian rupee. The Monetary Policy Committee was established in 2016 controlled monetary policy in India.  

    RBI relaxes ECB norms

    August 2, 2019
    The Reserve Bank of India (RBI) has further relaxed the norms related to external commercial borrowing (ECB). It loosened the end-use restrictions with regard to working capital, general corporate purpose and repayment of rupee loans. The move comes  after RBI received feedback from stakeholders. ♦ As per the relaxation, all the eligible borrowers are allowed to raise following ECBs from recognised lenders with a minimum average maturity period of 10 years for working capital purposes and general corporate purposes. The foreign branches and overseas subsidiaries of Indian banks are exempted. ♦ It also permits borrowing for on-lending by NBFCs for the above maturity and end-uses.  ♦ Borrowers are allowed to raise ECBs with a minimum average maturity period of 7 years for repayment of rupee loans that can be availed domestically for capital expenditure.

    Reserve Bank of India fines Rs 25 lakh fine on Mobikwik, Hip Bar for violating norms

    July 31, 2019
    The Reserve Bank of India imposed a total penalty of around Rs 25 lakh on two online payment solutions providers One Mobikwik Systems and Hip Bar.  Mobikwik Systems Private Limited slapped a fine of Rs 15 lakh while Hip Bar Pvt Ltd faced a fine of Rs 10.85 lakh. These two prepaid payment instrument (PPI) issuers levied monetary penalty for non-compliance of regulatory guidelines. MobiKwik  It is an Indian company founded in 2009 provides a mobile phone-based payment system and digital wallet.  Customers add money to an online wallet that can be used for payments.  Reserve bank of India The Reserve Bank of India is India's central banking institution which controls the issuance and supply of the Indian rupee. The Monetary Policy Committee established in 2016, it also controlled monetary policy in India. Headquarters: Mumbai Governor: Shaktikanta Das

    PNB Housing Finance raises $100 mn from World Bank's IFC

    July 30, 2019
    India is working with Japan to make key technical changes in the bullet trains that are expected to run between Mumbai and Ahmedabad from 2023 so that they can handle extreme heat and high levels of pollution, according to officials familiar with the matter. National High-Speed Rail Corporation (NHSRCL) is executing the project linking the capitals of Maharashtra and Gujarat. They believe the trains will have to be customized for Indian conditions so that they don’t break down due to heat and dust. The trains that run in Japan are built to handle the outside temperature of up to 35 degrees Celsius.  India and Maharashtra can cross even 50 degrees. These filters will be like a fine mesh as commonly used in air-conditioning units. The dust filters installed will work as a barrier and stop the dust entering inside the trains; this will be helpful in maintaining ambient air quality inside the trains. They will also safeguard the equipment from harmful dust mites and other pollutants. India’s first bullet train, known as the Shinkansen in Japan. They will mark the country’s shift to an era of high-speed trains capable of hitting speeds of up to 350km per hour. The air conditioning system in the bullet train is inside the body of the coaches, and not on the top like in the Metro system The trains will have pressurized cabins similar to aircraft. Another change that the corporation is making to the current design of the bullet train is providing extra luggage space for passengers.  Every coach overhead space for hand baggage. Narendra Modi government set an ambitious deadline of completing the project by August 15, 2022, where India marks 75 years of Independence.  Of the 508.17km corridor, 155.76km will be in Maharashtra, 348.04 km in Gujarat and 4.3km in Dadra and Nagar Haveli. Around 35 % of the land required for the project acquired so far. The foundation stone for the Mumbai-Ahmedabad bullet train project was laid by Prime Minister Modi and his Japanese counterpart Shinzo Abe in 2017.

    GST Council to decide on tax cut on electric vehicles this week

    July 28, 2019
    Finance Minister Nirmala Sitharaman chair the 36th meeting of the GST Council through videoconferencing in Delhi.  It is the first GST Council meeting after the Union Budget placed before the parliament in July 5  The GST Council is expected to announce its decision lowering tax rates for electric vehicles solar power projects and rationalisation of GST rates on lottery. GST rates - Electric vehicles: The several sops for the electric vehicle (EV) sector includes income tax exemption and reduction in custom duties for certain components The government is expected to push for a GST rate cut on EVs from 12% to 5%. The issue of GST rate cut on EVs earlier sent to a rate fitment committee to a rate fitment committee. The Modi government wants to encourage domestic manufacturing of e-vehicles.  The GST rate for petrol and diesel cars and hybrid vehicles is already at the highest bracket of 28% plus cess. GST rates on lottery: The GST Council is likely to look at the issue of taxation of lotteries.  The two rates of GST on the lottery. The 12% GST is levied on lottery run by the state government and 28%.GST is levied on lotteries authorized by the state government. Several industry bodies have demanded that the GST Council should expand GST to all other sectors.

    Asian Development Bank sanctions Rs 1,925 cr power project in Tripura

    July 25, 2019
    Asian Development Bank (ADB) sanctioned a Rs 1,925 crore project for up-gradation of power generation and distribution in Tripura, Deputy Chief Minister Jishnu Dev Varma. The amount was recently sanctioned to the Tripura State Electricity Corporation Limited (TSECL) after the state government had sought the ADB's assistance, Dev Varma who is also the power minister. The project sanctioned for upgrading capacity of 63 MW Rokhia Project to 120 MW  It is at an estimated cost of Rs 699.80 crore. The project sanctioned for upgrading capacity of 63 MW Rokhia Project to 120. They modernising Gumti Hydro Electric Project at an estimated cost of Rs 1225.88 crore. Rokhia project is located at West Tripura district  North East Council approved sanction of Rs 12.7 crore for an overhaul of the 49.15 km-long Ambassa-Gandacherra power transmission line.

    Asian Infrastructure Investment Bank withdraws funding to Amaravati project

    July 25, 2019
    Beijing-based Asian Infrastructure Investment Bank (AIIB) withdrawn funding for the Amaravati capital city project in Andhra Pradesh (AP).  The AIIB is to finance the upcoming city by providing $200 million. The World Bank to fund the Amaravati project with $300 million.  The World Bank issued the withdrawn proposed funding after the Indian government on 15 July  The multilateral agency for financing the proposed 'Amaravati Sustainable Infrastructure and Institutional Development Project'. The total cost required for the Amaravati project is $715 million. Asian Infrastructure Investment Bank (AIIB) It is a multilateral development bank  The main aim is to support the building of infrastructure in the Asia-Pacific region. The bank has 70 members as 27 prospective members from around the world.

    RBI names Kanungo to run monetary policy portfolio

    July 25, 2019
    The RBI assigned Deputy Governor BP Kanungo to run the monetary policy portfolio after the resignation of fellow Deputy Governor Viral Acharya.  Kanungo, who will retain his currency management portfolio, would become the sixth member of the Monetary Policy Committee (MPC).  Monetary Policy: Monetary policy is the process by which the monetary authority of a country.Typically RBI, the central bank or currency board, controls either the cost of very short-term borrowing or the money supply, often targeting inflation or the interest rate to ensure price stability and general trust in the currency. RBI portfolios work: All the other three deputy governors N S Vishwanathan, BP Kanungo and M K Jain  made responsible for 12 departments each.Deputy Governor Jain has been given additional charge of corporate strategy and budget, financial stability unit, and human resource management.Vishwanathan has also been entrusted with departments dealing with financial market operations, financial market regulations and international issues.The RBI, headed by Governor Shaktikanta Das, has four deputy governors. The government has not yet finalised replacement of Acharya. Acharya Viral V. Acharya is an Indian economist who was appointed as Deputy Governor of Reserve Bank of India.He was a member of the Academic Council of the National Institute of Securities Markets, Securities and Exchange Board of India since 2014.

    Income Tax Department to celebrate Aaykar Diwas 2019

    July 24, 2019
    Central Board of Direct Taxes (CBDT) will observe and celebrate the 159th Income Tax Day on 24th July, 2019.  It was on 24th July, 1860  The Income Tax introduced for the first time in India by Sir James Wilson to compensate for the losses incurred by the British regime  This incident took place during the first war of independence against British Rule.  The week preceding the AaykarDiwas 2019 marked by various activities undertaken by the regional offices of the department across the country.  Several field offices undertook a grievance redressal week to help redress pending grievances of the taxpayers.  Some field stations made free legal aid available to taxpayers in conjunction with the local Tax Bar Association.  Several field stations holding functions felicitating super senior tax payers for their contribution to nation building, while also recognizing the hard work put in by the officers and officials of the department in various designated areas of work.  The department will launch a  “Kardaata e-SahyogAbhiyaan”  The main aim is to assist and support taxpayers  and other stakeholders in enabling them to e-file their returns and discharge other tax related obligations.  Program - Features The several outreach programmes organized to promote payment of taxes as a value norm and for sensitizing potential tax payers that payment of taxes was an ethical duty of all citizens.  The visits of tax officials to educational institutions, public interaction with members of Bar and Chartered Accountant Associations and other stakeholders. Tax officers and officials participated in blood donation camps . They have conducted Swachhta drives in their offices as also public spaces and carried out plantation drives, both independently and in association with the forest department at several places, including planting of about one lakh seed pods on barren lands. Several others have adopted Lake/Village/School for cleanliness/plantation drive. While field offices organize functions at local levels to celebrate Aaykar Diwas 2019 The main function at the national level will be held at New Delhi on 24th July. The event will include release of departmental publications, e-journal, publicity kit for outreach programs among other things.

    Maharashtra tops in ATM frauds, Delhi, Tamil Nadu, Karnataka follow

    July 24, 2019
    Maharashtra state-reported around 233 cases of ATM fraud in 2018-19. Reserve Bank Of India (RBI) data revealed a data showed that Delhi grabbed the second spot with 179 cases this is followed by Tamil Nadu with 147 cases In Maharashtra, people lost Rs 4.8 crore to bank fraud in Delhi people around Rs 2.9 crore is involved in bank fraudAssam, Arunachal Pradesh and Tripura are the only three states a single incident. The money lost came down from Rs 65.3 crore in 2017-18. The commonly used trick is installing skimmer devices on ATMs and point-of-sale machines. This data is then put on blank cards and illegal transactions. Last year, customers were asked to replace their existing debit/credit cards with new ones.RBI mandated banks to replace all existing magnetic stripe-only cards with EMV chip cards. Chip-based cards use higher standards of data encryption and storage technology. Banks to implement anti-skimming solutions by March 2019 - RBI RBI insisted banks to upgrade their ATMs or else face action. Last year, they implemented a host of security measures by August and upgrade all ATMs with a supported version of the operating system in a phased manner by June 2019. Anti-skimming devices prevent the skimmer from functioning. An ATM/Debit card, Credit card and Internet banking transactions of over Rs 1 lakh. There were 1,367 frauds reported in FY 2016-17; 2,127 frauds in FY 2017-18 and 1,477 frauds in FY 2018-19.

    The World Bank to continue the support to Andhra Pradesh with over $1 Billion program

    July 23, 2019
    The World Bank dropped a loan proposal for Amaravati project continues to support Andhra Pradesh with an over one billion USD program. The program mainly covers the health, agriculture, energy and disaster management sectors.  Aim:  The main aim is to improve the living standards of citizens in tune with the Sustainable Development Goals. Features  This includes a new $328 million support to the state's health sector The World Bank's statement dropped a 300 million USD loan proposal for the Amaravati Sustainable Infrastructure and Institutional Development Project.  The Government of India (GoI) withdrew its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project.  The World Bank's Board of Executive Directors informed that the proposed project is no longer under preparation following the government's decision. The government seeks World Bank assistance for funding the flagship Navaratnalu program.

    HDFC Bank, CSC launch credit card for village entrepreneurs and small traders

    July 17, 2019
    HDFC Bank and Common Services Centres (CSCs) launched a co-branded ‘Small Business Money-Back Credit Card’  For small traders and village-level entrepreneurs (VLEs).  The credit card is designed for VLEs and VLE-sourced customers.  The users give easy access to credit for their day-to-day business expenses, according to a statement. The card launched by HDFC Bank MD Aditya Puri and CSC Chief Dinesh Kumar Tyagi.  The personalized cards were handed out to a few women entrepreneurs. CSC as access points for delivery of various services and there are 3.6 lakh such centers operating across the country.  Around ₹70,000 crore worth of business is transacted through the network of CSCs which apart from providing a platform for essential government and public utility services. It also delivers a range of social welfare schemes, financial services, education and skill development courses, health care, agriculture services and digital literacy. They entered into a pact in July 2018  The bank offers various products and services in remote locations to VLEs enrolled with CSCs. About HDFC Bank Founded    August 1994 Headquarters    Mumbai, Maharashtra, India Key people Shyamala Gopinath  Aditya Puri Managing Director

    World Bank planned to offer $250 million to Kerala

    July 16, 2019
    World Bank would offer a loan of $250 million to the Kerala Government for the Resilient Kerala project The main aim is at enhancing the state’s resilience against the impacts of natural disasters and climate change in the wake of last year’s floods. The World Bank recently signed a $250 million loan agreement to help Kerala enhance its resilience against natural disasters and climate change. About World Bank Headquarters: Washington, D.C., United States Membership: 189 countries (IBRD) Parent organization: World Bank Group Founders: John Maynard Keynes, Harry Dexter White About Kerala Governor: P. Sathasivam Chief Minister: Pinarayi Vijayan

    RBI imposed fine on SBI and Union Bank of India for violating certain regulatory guidelines

    July 16, 2019
    The Reserve Bank of India (RBI) imposed fine on State Bank of India (SBI) and Union Bank of India for violating certain regulatory guidelines.  Fine on SBI: RBI fined Rs.7 crore as SBI did not comply with the directions issued by the RBI on Income Recognition and Asset Classification (IRAC) norms, code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large Credits (CRILC), and fraud risk management and classification and reporting of frauds. The central Bank held the reference to its financial position as on March 31, 2017 which revealed that the lender had violated those norms. Fine on Union Bank of India: RBI also fined Rs.10 lakh on Union Bank for non-compliance with the directions on the cybersecurity framework in banks issued by the RBI.  The RBI accused Union Bank of India that it failed to carry out the cybersecurity framework in 2016. RBI's examination revealed reports of generation of seven fraudulent messages worth $171 million through the SWIFT system of the bank.

    SBI to waive off the charges on NEFT, RTGS and IMPS

    July 14, 2019
    State Bank of India (SBI) has waived the charges on National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) transactions through YONO, Internet, and mobile banking. This will be effective from July 1. The move comes after the Reserve Bank of India (RBI) has decided to waive off the charges with an aim to move the country towards less-cash economy. Before July 1, SBI used to charge between Rs.1 and Rs.5 for transactions through NEFT, and Rs.5 to 50 for RTGS transactions. SBI has also decided to do away with the charges on fund transfer using the Immediate Payment Service (IMPS) through mobile phones. It will be effective from August 1. The bank has  reduced NEFT and RTGS charges for customers transacting through branch network by 20% across all slabs. Aim: SBI's aim is to promote the use of YONO, internet banking and mobile banking for doing NEFT and RTGS transactions without incurring any cost. The plan is in sync with the bank's strategy and Government of India’s vision to create a digital economy. Real Time Gross Settlement System (RTGS): The RTGS system is used for large value transactions. The minimum amount that can be remitted through RTGS is Rs.2 lakh with no upper or maximum ceiling.  National Electronic Funds Transfer (NEFT): NEFT is a nation-wide payment system that facilitates one-to-one funds transfer. NEFT system is used for fund transactions of up to Rs.2 lakh. SBI: Founded on: As 2 June 1806 (Bank of Calcutta), 15 April 1840 (Bank of Bombay), 1 July 1843 (Bank of Madras), 27 January 1921 (Imperial Bank of India), 1 July 1955 (State Bank of India) Headquarters: Mumbai, Maharashtra Chairman: Rajnish Kumar Total assets: Rs.3,312,461 crore SBI is the largest commercial bank and the largest mortgage lender across the country.  SBI has 22,010 branches and 58,000 ATM/CDM across India.  

    Oriental Bank of Commerce bank cuts MCLR rate upto 10 bps

    July 11, 2019
    Oriental Bank of Commerce (OBC) has reduced the marginal cost of funds-based lending rate (MCLR) by up to 10 basis points (bps) for various tenors. It is effective from 11 July 2019. MCLR for overnight has been reduced to 8.20% from 8.30% and one-month loan tenor has been reduced by 10 bps from 8.35% to 8.25%. Similarly, MCLR has been decreased by 5 bps for: 1) three-month loan to 8.45% 2) six-month loan to 8.55% 3) one-year tenor loans to 8.65%. Previosly, the MCLR for three-month, six-month and one-year tenor loans were at 8.50% , 8.60% and 8.70%, respectively. RBI's announcement: The move comes after the announcement of RBI's Governor Shaktikanta Das who said that RBI expects faster transmission of the three successive repo rate cuts totalling 75 basis points. In June the RBI announced 25 bps repo rate cut in the Monetary Policy review. It is expected to reduce still, in the next meeting of the monetary policy committee which is scheduled for 5-9 August. Other banks reduces MCLR: The State Bank of India had lowered its MCLR by 5 basis points across all tenors on 9 July 2019. In June RBI announced rate cut in Monetary Policy review. After the announcement, Bank of Maharashtra, Corporation Bank and IDBI Bank had reduced their MCLR by 5-10 bps in the month of May 2019. MCLR: MCLR is abbreviated as Marginal Cost of funds based Lending Rate MCLR refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI. MCLR is the reference rate or an internal benchmark set by and for the bank. Oriental Bank of Commerce: Founded on: 19 February 1943 Headquarters: Gurugram, India MD & CEO: Mukesh Kumar Jain Total assets: ₹237,541.54 crore The Bank has around 2700 branches and 2621 ATMs across India.  It is one of the promising public sector banks (PSBs) in India.

    RBI formed panel to review timings of different financial markets

    July 11, 2019
    Reserve Bank of India (RBI) has formed an internal committee to review timings of different financial markets. It change the timing of the functioning of the foreign exchange market from 9 am to 9 pm. Currently, the currency market works from 9 am to 5 pm. The move is after RBI's consideration to gauge demand and potential benefits. RBI also said that if there is lack of demand from participants, the current market timings for government security markets may be retained. Objective: The move is after RBI's consideration to gauge demand and potential benefits. This extension of market timings is expected to provide various benefits like better pricing of post market hours information/data, improved onshore price discovery and a possible shift of offshore volumes to onshore. It is also understood that the extension might entail higher costs to stakeholders. RBI to rationalise Forex regulations: RBI also plans to review and rationalise foreign exchange (Forex) regulations. It aims to provide flexibility regarding products, participation and positions, both for residents and non-residents, extension of market hours would complement these policy measures. The panel suggested call money market timings could be extended till 6 pm instead of the 5 pm now, to facilitate liquidity management by banks.

    Sharjah issues its first Golden card visa to an Indian Lalu Samuel, Chairman of Kingston Holdings

    July 10, 2019
    General Directorate of Residency and Foreigners Affairs of Sharjah granted the first golden card visa to an Indian expat businessman, Lalu Samuel, Chairman and Managing Director of Kingston Holdings and Chairman of Sharjah Industry Business Group. The 10-year visa is a part of the long-term permanent residency system tailored for investors and entrepreneurs aims to attract capital, investments, and owners of leading companies, professionals, researchers and students to engage them in the renaissance and development of the UAE. The golden cardholders are entitled to have the privileges and facilities including a residency visa without a sponsor to them and their families. It also allows the visa holder to sponsor up to 3 workers and obtain a residency visa for one of his/her senior employees. About Visa Card Industry    Financial services Founded    1958 Founder    Dee Hock About UAE: ♦ Capital: Abu Dhabi ♦ Currency: United Arab Emirates Dirham ♦ Prime Minister: Mohammed bin Rashid Al Maktoum ♦ President:  Khalifa bin Zayed Al Nahyan

    RBI board finalised Utkarsh 2022 to improve regulation and supervision

    July 9, 2019
    The Reserve Bank of India (RBI) board has finalized Utkarsh 2022, a medium term strategy, to improve regulation and supervision, among other functions of the central bank.  RBI's board: The decision was made by RBI's board that met in New Delhi. It finalized the 3-year medium-term strategy document which covered inter-alia, its mission and vision statement. The board approved the RBI’s budget for the July 2019-June 2020 period. The board also discussed issues relating to currency management and payment systems. Utkarsh 2022: Why Utkarsh 2022? To accomplish the global central banks’ plan, every country is formulating a long-term plan and a medium-term plan. RBI's Utkarsh 2022 will be in line with the global central banks’ plan to strengthen the regulatory and supervisory mechanism.  New internal committee: To implement Utkarsh 2022, RBI has formed an internal committee. It is to be headed by the outgoing Deputy Governor Viral Acharya. The committee will identify issues that needed to be addressed over the next three years. Among the identified areas of issues, the committee will select and address the vital areas for the implementation in the next three years. Objective: RBI plans to play a proactive role and take preemptive action to avoid any crisis like the IL&FS debt default issue and the crisis of confidence the non-banking financial sector faced in the aftermath.

    YES Bank acquires 9.47% stake in Eveready Industries by invoking pledged shares

    July 8, 2019
    YES Bank acquired a 9.47 % stake in dry cell battery maker, Eveready Industries India by invoking shares pledged by McLeod Russel.  The acquisition comes after the Indian tea company McLeod Russel on repayment of credit facilities.  McLeod's debt is about Rs.l ,800 - 2,000 crore.  The bank acquired 68,80,149 equity shares. They have a nominal value of Rs 5 per share constitutes around 9.47% of the post-issue. Eveready and McLeod are part of the BM Khaitan Group.  Khaitan holds 42.93% in Eveready & McLeod Russel held 2.29%.  The sources indicated the lender would be paid once the deal for a stake sale in Eveready. The Promoter holding in Eveready was at 44.11 per cent. According to McLeod’s auditor, Deloitte Haskins & Sells LLP, liabilities of the company exceeded assets by Rs 1,435.66 crores . The auditor raised concerns on the company’s ability to continue as a going concern.  ICRA recently downgraded McLeod to ‘default’ or ‘D’ category from B-/A4, factoring in recent delays. Price Waterhouse & Co Chartered Accountants LLP quit as auditor in to obtain sufficient audit evidence of inter-company deposits. The development of a difference of opinion between the auditor and the company on the recoverability of inter-corporate deposits given to group companies and corporate guarantees given on behalf of group entities.  About Eveready: Headquarters: Kolkata, West Bengal  Founded: 1905 About Yes Bank:  CEO: Ravneet Gill  Headquarters: Mumbai  Founded: 2004 

    Punjab & Sind Bank sets up centralised hub 'Cen-MARG' to process retail and MSME loans

    July 7, 2019
    Punjab & Sind Bank set up a centralized hub named "Centralised MSME & Retail Group" (Cen-MARG) for processing retail and Micro, Small and Medium Enterprises (MSME) loans for better efficiency of branches in business acquisition. It is headquartered in New Delhi.  It will ensure qualitative improvement in credit appraisal, improved turnaround time, uniform documentation, and efficient monitoring.  Cen-MARG linked with pan-India branches of the bank in a phased manner.  The bank is main aim to bring about much-enhanced customer satisfaction through this initiative. The launch of Cen-MARG and retail credit will be performed at the Cen-MARG, They will help branches focus better on lead generation for retail lending and MSME and enhanced customer service. About Punjab & Sind Bank:  Headquarters: New Delhi   MD & CEO: S Harisankar  Tag line: Where service is a way of life

    Centre announces RBI as the regulator of housing finance Companies (HFCs)

    July 7, 2019
    Cantre has announced that the Reserve Bank of India will now be the regulator of housing finance Companies (HFCs). The HFC were regulated by the National Housing Bank. It aims to strengthen oversight of the shadow banks and improve their access to funding by providing guarantees for purchases of their assets.  The government has announced to provide a one-time partial credit guarantee for loan losses to state banks if the bank buy Rs.1 trillion ($14.6 billion) of high-rated pooled assets of non-banking finance companies (NBFCs). Why the Change? The move comes after the crisis emerged in 2018 when Infrastructure Leasing & Financial Services (IL&FS) defaulted on a series of debt obligations. After the crisis, the banks and mutual funds have reduced their exposure to the industry, causing shadow lenders to restrict new loans.  The RBI has proposed plans to tighten NBFCs’ liquidity coverage ratios and asset-liability management. RBI also resisted to provide a separate liquidity window for NBFCs that demands from within the industry.  RBI has also decided to take more steps to monitor NBFCs closely.

    AK Misra appointed as an additional director on the Board of Directors (BOD) of Jammu and Kashmir Bank by Reserve Bank of India

    July 5, 2019
    The Reserve Bank of India (RBI) appointed ex-executive director RBI A.K Misra as Additional Director on the Board of Directors (BOD) of the Jammu and Kashmir Bank Limited. The appointment shall be for a period of two years  The appointment will be effect from July 3, 2019 to July 2, 2021. The usual sitting fee and allowances are paid to other directors for attending the meetings of the Board and Committees. About Reserve Bank of India  Headquarters: Mumbai, Maharashtra, India Established: 1 April 1935 Governor: Shaktikanta Das

    RBI form panel to review supervisory framework for core investment companies

    July 5, 2019
    Reserve Bank of India (RBI) has set up a six-member working group to review the regulatory and supervisory framework for core investment companies (CICs). The panel will be headed by Tapan Ray, Non-Executive Chairman, CBI. The move comes as the corporate group structures becomes more complex and layered. The working group has been asked to submit its report by October 31, 2019. Lately, the corporate group structures have become more complex involving multiple layering and leveraging, which has led to greater inter-connectedness with the financial system through their access to public funds. The governance framework of CICs need to be strengthened due to elevated recent developments. Function of the panel: The current regulatory regime for CICs  will be reviewed by the panel. It will suggest changes to the current approach for their registration, including the practice of multiple CICs being allowed within a group. It will also suggest measures to strengthen corporate governance and disclosure requirements for CICs. It will assess the adequacy of supervisory returns submitted by these entities. The committee will recommend appropriate measures to enhance RBI’s off-sight surveillance and on-site supervision over CICs. Member of the commitee: Head: Tapan Ray, Non-Executive Chairman, Central Bank of India, and former Secretary, Ministry of Corporate Affairs Other members of the working group: Lily Vadera, Executive Director, RBI Amarjeet Singh, Executive Director, SEBI T Rabishankar, Chief General Manager, Financial Markets Regulation Department, RBI HK Jena, Deputy Managing Director, SBI NS Venkatesh, Chief Executive, Association of Mutual Funds in India. Note: In August 2010, RBI introduced a separate framework for the regulation of systemically important CICs after recognising the difference in the business model of a holding company compared to other non-banking financial companies (NBFCs).

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