Recent Banking Updates 2014 - Gr8AmbitionZ PDF

Recent Banking Updates
2014
for IBPS Clerks IV online exam
www.Gr8AmbitionZ.com
your A to Z competitive exam guide
RECENT BANKING UPDATES FOR IBPS CLERKS IV
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Important Note : We are assuming that you have already completed reading our Banking Awareness
Quick Reference Guide 2014 in which we have covered all the Basic and Important Banking Awareness
Topics. If you have not read it yet, then download it from the below link and read it first before reading this
file.
Click below to Download Banking Awareness Quick Reference Guide
http://www.gr8ambitionz.com/2014/10/banking-awareness-quick-reference-guide-download.html
June 2014
June 2
State bank of India, has decided that the bank will try to spend 2% of its net profit for the Corporate Social
Responsibility (CSR) activities in each financial year.
o About CSR
CSR was made 2% compulsory through Companies Act 2013.
Companies Act, 2013 is an Act which regulates incorporation of a company, responsibilities of a
company, directors, and dissolution of a company.
Private sector IndusInd Bank has launched video-branch, claiming to be a first-of-its-kind service, enabling
customers interact with the staff of the bank through video conference facility.
o The video branch service helps customers avail various services like fixed deposit booking, NEFT, transfer
service through a video chat with contact centre executive instantly.
o The new facility allows customers to interact with their branches through 'Video Branch' app from Google
Play Store and Apple App Store on their smartphones.
SBP is launching a branch that will offer some services of beauty parlor along with the safe deposit locker. This
is an exclusive account that will work as parlor cum bank.
o This is first of such kind.
The Reserve Bank of India has cancelled the certificate of registration of NBFCs for carrying on the business of
non-banking financial institution.
(a) Siber Financial Services Private Limited.
(b) Sri Vishnu Finance & Investment Private Limited.
(c) Margdarsi Investment and Leasing Company Private Limited.
o The Reserve Bank can cancel the registration certificate of a non-banking financial company under the
powers conferred under Section 45-IA (6) of the Reserve Bank of India Act, 1934.
June 3
Banks unions have asked the RBI to reduce the number of transactions made from the non home branch ATMs
from 5 to 2.
o Non home branch ATM is the ATM in which customer do not possesses an account. At present bank allows
the customer to make 5 transactions free at the non home branch ATM, if the RBI approves for the bankers
decision then it will be reduced to two.
o Further the banks have also demanded to increase the interchange fee- the fees charged by the one bank
from the other bank, in case the customer makes transactions at the non home ATMs, from Rs. 15 to Rs.
16.50 plus service tax that makes a total of Rs. 18.48.
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RBIs Second Bi-Monthly Monetary Policy Statement, 2014-15.

o RBI rule out change in lending rate (policy rate) by keep the policy repo rate under the liquidity adjustment
facility (LAF) unchanged at 8.0 per cent and the reverse repo rate under the LAF will remain unchanged at
7.0 per cent.
o
o
Current (in %) Rates of April (last time)

Reserve Rates CRR
4
No change
SLR
22.5
23
Policy Rates
Repo Rate
8
No change
Reverse Repo 7
No change
MSF
9
No change
Bank Rate
9
No change
Reduce the liquidity provided under the export credit refinance (ECR) facility from 50 percent of eligible
export credit outstanding to 32 percent with immediate effect.
Introduced a special term repo facility of 0.25 per cent of NDTL to compensate fully for the reduction in
access to liquidity under the ECR with immediate effect.
June 4
ICICI bank has launched a new mobile app for its windows phone customers.
o The mobile app iMobile is the new official app of the bank for the windows phone user.
o The app will allow them to make payments, funds transfer from one account to another, enquiry of the
balance, checking of details of your savings account, checking of credit card details and loan amount etc.
June 5
The Reserve Bank of India has invited applications for Prof. K.N. Raj Memorial National Fellowship Scheme for
the year 2014-15 from eligible scholars. Applications in soft form need to be sent to the Reserve Bank on or
before July 18, 2014.
o The theme will be identified by a Steering Committee on Economic and Policy Research (SCEPR) of the
Reserve Bank of India.
June 6
RBI changed reserve ratios (CRR & SLR) for urban co-operative banks (UCB) and scheduled primary urban cooperative banks.
Current (in %) Rates of April (last time) Change
Reserve Rates CRR 4
3
Increased by 100 base points
SLR 22.5
25
Decreased by 250 base points
o Prior, RBI changed only SLR (reducing by 50 base points) of scheduled commercial banks.
Employee provident Fund organization (EPFO) has changed interest rate of 9% from 8.75 on the PF funds.
About EPFO
o EPFO is a statutory body of the Government of India under the Ministry of Labour and Employment.
o It administers Provident Fund (PF), Pension Scheme and an Insurance Scheme.
o It is one of the largest social security organizations in the India in terms of the number of covered
beneficiaries and the volume (more than 5 crores) of financial transactions undertaken.
Headquarters: New Delhi.
Chairman: K.K. Jalan.
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June 7
ICICI bank took over the HDFC - bank with highest employer in banking. Previous year HDFC was on the top
with maximum employees. And ICICI becomes highest employer in Private sector banking.
o About HDFC
HDFC Bank is the fifth largest bank in India by assets.
It is the largest bank in India by market capitalization.
Headquarters: Mumbai.
Managing director: Aditya Puri.
o About ICICI
ICICI Bank is fourth biggest bank of India, after SBI, Punjab National Bank and Bank of Baroda.
It is the second largest bank in India by assets and by market capitalization.
MD: Chanda Kochhar.
Chairman: K.V. Kamath.
June 9
The RBI signed the Memorandum of Understanding (MoU) on Supervisory Cooperation and Exchange of
Supervisory Information with the Financial Services Commission (FSC) and the Financial Supervisory Services
(FSS), Republic of Korea (South Korea).
The RBI has now signed 20 such MoUs and one Letter for Supervisory Co-operation.
o The Reserve Bank has been signing the Memorandum of Understanding and the Letter for Supervisory Cooperation with supervisors of other countries to promote greater co-operation and share supervisory
information among the authorities.
RBI further simplifies KYC Norms for Bank Accounts.
o One Documentary Proof of Address if enough to open bank account.
o This address may be verified by the bank through positive confirmation such as acknowledgment of receipt
of (i) letter, cheque books, ATM cards; (ii) telephonic conversation; (iii) visits; etc.
o In the event of change in this address, the new address for correspondence should be intimated within two
weeks of such a change and address proof should be submitted to the branch within a period of six months.
o About KYC
The Reserve Bank of India introduced KYC guidelines for all banks in 2002.
o Purpose of KYC:
(a) Knowing costumer.
(b) Anti - Money Laundering (AML) Standards.
(c) Combating of Financing of Terrorism (CFT).
(d) Obligations under Prevention of Money Laundering Act (PMLA).
June 10
ING Vysya bank has become first to have core banking application in India to be hosted on ''NetApp''.
o ING Vysya Bank has selected NetApp's FAS storage system to deliver the necessary throughput, capacity and
connectivity across its 553 branches
o With NetApp's FAS storage series, we can leverage our core banking system (CBS) to provide innovative
products to customers while improving performance by 60% immediately.
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In order to fulfill BASEL III, RBI issued guidelines on Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring
Tools and LCR Disclosure Standards.
o The LCR would be binding on banks from January 1, 2015.
o With a view to provide a transition time for banks, the LCR requirement would be minimum 60% for the
calendar year 2015 and reach 100% by 2019.
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January 1 January 1 January 1 January 1 January 1

2015
2016
2017
2018
2019
Minimum 60%
70%
80%
90%
100%
LCR
A Quantitative Impact Study (QIS) conducted by the Reserve Bank as on December 2013 on a sample of
banks to assess their preparedness for the Basel III Liquidity ratios indicates that the average LCR for these
banks varied from 54% to 507%.
About LCR
The liquidity coverage ratio is an important part of the Basel Accords, as they define how many liquid
assets have to be held by financial institutions.
LCR Definition : This is highly liquid assets held by financial institutions in order to meet short-term
obligations. The Liquidity coverage ratio is designed to ensure that financial institutions have the
necessary assets on hand to ride out short-term liquidity disruptions.
Extra Information about BASEL Norms
Difference between requirements under BASEL - II & BASEL - III norms
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Requirements
Under Basel II Under Basel III
Minimum Ratio of Total Capital to RWAs
8%
10.50%
Minimum Ratio of Common Equity to RWAs 2%
4.50% to 7.00%
Tier I capital to RWAs
4%
6.00%
Core Tier I capital to RWAs
2%
5.00%
National Payments Corporation of India, along with some private and public-sector banks has decided to
extend the services allowed at the non- home ATMs.
o Banks are testing if this plan of offering the several services at the non home ATMs comes out to be feasible
they will ask the RBI for the approval. Banks now offer services such as paying telephone bill, electricity bill,
DTH recharge at the ATMs.
o Banks are working to make the facilities of ordering cheque depositing cash, statement requests and cardto-card transfer inter-operable.
o Some banks (like Andhra Bank, Union Bank, Yes Bank) have already started cash transfer between two
accounts of different banks via debit card.
The India Post has launched a Banking service 'GO Live' in Vijayawada in Andhra Pradesh.
o This core banking solutions (CBS) facility will enable the savings account holders to make the transactions
online easily.
Canara bank is planning to enhance nearly 600 of its branches and transform them in to five star categories on
par with the international standards.
o This project of Canara Bank unveiled as 'Project Shikhar.
o Five star Branch (or) Teynampet branch: These branches will offer the customers all the banking products
under one roof and provide greater access to a wide range of services.
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Countrys largest leading bank State bank of India is set to come up with mobile point of sales devices across
the country.
o SBI has signed a contract with POS provider Ezetap to setup mobile point of sales devices across the
country.
o Mobile POS has the power to transform the payment without much difficulty and at cheaper cost these can
be deployed all over the country.
o This SBI-Ezetap platform will assist the bank to provide many value-added services for merchants and
consumers from a single, secure point of sale device and application.
June 12
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RBI said One Document is enough to open Bank account in RRBs and State/ Central Cooperative Banks
(StCBs/ CCBs)
o Customers may submit only one documentary proof of address (either current or permanent) while opening
a bank account or while undergoing periodic updation.
o In case the address mentioned as per proof of address undergoes a change, fresh proof of address may be
submitted to the branch within a period of six months.
o Prior to this RBI one Document rule was fist kept to 2nd Scheduled Commercial Banks, now it is allowed to
RRBs, StCBs and CCBs.
RBI has allowed Australia and New Zealand Banking Group (ANZ) to open second banking branch in the
country.
o ANZ already have its one Branch in Mumbai.
o RBI has allowed foreign banks to establish Maximum upto 17-18 branches in a year. But for each branch
opening Foreign bank have to take permission from RBI.
o Standard chartered bank is having largest network among foreign banks in India.
Rules for opening of new branches/ shifting of existing branches/ Closure of Branches/ Merger of Branches
o The opening of new branches and shifting of existing branches of banks is governed by the provisions of
Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot, without the
prior approval of the RBI.
ABEP: Each bank has to give Annual Branch Expansion Plan (ABEP) to RBI to get approval RBI (to open branch).
o Opening of new Branch:
Domestic scheduled commercial banks (other than RRBs) are presently permitted to open branches
without prior approval from Reserve Bank of India. But At least 25 percent of the total number of
branches opened during a financial year must be opened in unbanked rural (Tier 5 and Tier 6) centers.
o Shifting of Branches:
Shifting within the Centre (City/Town/Village) : Domestic scheduled commercial banks (other than
RRBs) without approval can shift Branches within same city. If out of same city, permission should be
taken.
Shifting of Rural Branches : Banks have been given freedom to shift a branch to any location within the
Block of Rural Area without seeking prior approval from RBI. As such, these cases should not be
included in the ABEP for our approval. If out of same Block, permission should be taken.
o Opening of new branch (or) Shifting of existing Branch in Abroad.
For this Domestic scheduled commercial banks have to take prior approval from RBI and Apex Bank of
the foreign Country.
o Foreign Banks:
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The general permission granted to domestic scheduled commercial banks above will not be applicable
to foreign banks.
Foreign banks are required to bring an assigned capital of US$25 million upfront at the time of opening
the first branch in India.
From Second Branch onwards foreign banks will be required to submit their branch expansion plan on
an annual basis to RBI.
There will be Maximum Limit of branches that can be opened by each foreign Bank.
ATMs would not be included in the number of branches for Foreign Banks.
''Branch''
A "Branch" would include all branches, i.e., full-fledged branches, specialised branches, satellite
offices, mobile branches, Extension Counters, off-site ATMs (Automated Teller Machines),
administrative offices, controlling offices, service branches (back office or processing centres),
etc.
June 13
RBI to come out with ''Payment banks''.

o Reason for payment bank: because there is huge potential for financial inclusion with focus on remittances
by involving payment system product.
o About Payment bank
Payment bank will offer banking services like opening account, allowing payments and remittances.
However, it will not extend loans and invest the deposits in government securities.
Payment banks are recommended by the Nachiket Mor committee.
June 18
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18 PSU banks have failed in setting up the number of ATMs they have decided to set up by the end of the
2013-14.
o As per the plan a total of 34,668 onsite ATMs were to be installed by PSU banks during the last fiscal, but
the banks failed to set up these many ATMs leaving nearly 9,300 branches without the ATM machines. As
per the records the banks have failed in established 9,337 less ATMs machines.
o The Installation of the ATMs by the PSU banks is a major task of the govt. to ensure the financial inclusion.
There are roughly about 1.4 lakh ATMs of public and private sector banks in the country.
SBI announced its future plan to bring the ATMs, under a remote surveillance system by the end of this fiscal
year.
o About remote surveillance system:
In addition to the monitoring of these 24X7 running ATMs, this security system will also provide the
remote locking of counters and shutting down machines during eventualities. At present bank is having
total number of 1,831 ATMs in odhisa and is planning to add more ATMs in the state.
The seven telecom companies that have signed agreements with NPCI are Airtel, Idea, Tata Communications,
Aircel, Uninor, Videocon and Quadrant.
o National Payments Corporation of India (NPCI) has convinced these seven telecom companies to provide
access to their unstructured supplementary service data (USSD) channel to all bank accounts, Hota said.
o If above agreement came into work Mobile money services to soon come within common man's reach.
Former CMD of Allahabad Bank, Subhalakshmi Panse has joined the board of Federal Bank as an Independent
Director.
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SEBI has issued new norms for public issuance of debt securities under which such offers have to be of
minimum Rs. 100 crore, while issuers would need to make additional disclosures and attain atleast 75 per
cent subscription.
SEBI has fixed a base issue size of at least Rs. 100 crore.
NCDs norms for companies:
SEBI said entities coming out with public issue of non-convertible debentures (NCDs) would have to
provide granular disclosures in their offer document, with regards to the 'object of the issue'.
Also, an entity has to make additional disclosures in the offer document about details of money utilized
from the previous issues of the issuer as well as the group companies.
Issue of debt securities by the NBFCs and non- NBFCs
Market watchdog said that the minimum subscription for public issue of debt securities has to be 75%
of the base issue size for both non-banking finance companies (NBFCs) and non-NBFC issuers.
Further, the regulator said that amount earmarked for 'general corporate purposes' would not exceed
25% of the amount raised by the issuer in the proposed issue.
The new norms would be applicable from July 16.
June 19
The RBI has asked banks to disclose sector-wise advances in the Notes to Accounts to the financial
statements from the financial year 2014-15 onwards.
o Within the sector-wise advances, the central bank called for disclosure on priority sector (agriculture and
allied activities, advances to industries sector eligible as priority sector lending, services, and personal loans)
and non-priority sector advances (agriculture and allied activities, industry, services, and personal loans).
The central bank said banks may also make disclosures on sub sectors where the outstanding advances exceed
10 percent of the outstanding total advances to that sector.
o For instance, if a banks outstanding advances to the mining industry exceed 10 percent of the outstanding
total advances to Industry sector it should disclose details of its outstanding advances to mining separately
under the Industry sector.
June 20
RBI permitted residents and non-residents, [except Pakistanis and Bangladeshis] to carry up to Rs 25,000 in
Indian currency notes while leaving the country.
o As per Foreign Exchange Management (FEMA) Act, a resident can carry to Nepal or Bhutan, Indian currency
without any limit in denominations not exceeding Rs 100.
o Prior norms for Indians and foreigners
o Prior, maximum allowed (Indians) travelling abroad was up to Rs 10,000. And foreigners were not allowed
to carry Indian currency while leaving the country.
RBI announced new features in RTGS System, which is even faster and smother than earlier.
o The maximum time a transaction would be in normal queue is 10 minutes.
o All transaction will be made automatically changed to urgent mode.
o Settlement charges will be 10% of the balance.
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June 21
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Bank of Maharashtra (BoM) launched MahaSecure, a digital banking app.
June 23
The RBI asked all banks and financial institutions to provide information and documents to the Special
Investigation Team (SIT).
o About SIT on Black Money:
Narendra Modi government sets up SIT on black money, chaired by former Justice M.B. Shah in aim to
bring back Black money.
June 24
The RBI permitted the Non-Deposit taking NBFC (NBFCs-ND) to act as Business Correspondents (BCs) for
commercial banks.
o This was done with an aim of spread financial inclusion.
o NBFCs-ND can be engaged as BCs subject to following conditions
It should be ensured that there is no comingling of bank funds and those of the NBFC-ND appointed as
BC.
There should be a specific contractual arrangement between the bank and the NBFC-ND to ensure that
all possible conflicts of interest are adequately taken care of.
Banks should ensure that the NBFC-ND does not adopt any restrictive practice such as offering savings
or remittance functions only to its own customers and forced bundling of services offered by the NBFCND and the bank does not take place.
This permission is not applicable to NBFCs accepting public deposits or NBFCs-D.
Background
On recommendation of Nachiket Mor Committee for accelerating the flow of credit to those at
the bottom of the pyramid and enlargement of catchment area of the Business Correspondents
(BCs), including through possible inclusion of new entities as BCs.
SBI started fellowship program for rural development called SBI Youth for India fellowship.
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If facilitates secure access to Internet banking for both retail and corporate customers of the bank by
protecting Internet banking users from sophisticated online attacks.
Bhartiya Mahila Bank has signed a MOU with Gujarat Chamber of Commerce and Industry to help women of
Gujarat.
o The BMB would address financing needs in terms of technology upgradation, marketing, diversification by
utilising the services of the industry chamber.
SBI has proposed its future plan to come up with the contactless payment cards.
o Yet to be finalized product will allow the customers to use to for making the payments for the metro
travelling.
United bank of India (UBI) has launched its merchant payment services on mobile phones. Using the
immediate payment service (IMPS) provided by the National Payment Corporation of India UBI will offer this
service.
o Payment Services:
A mobile payment is a mode of payment using mobile phones. Instead of using methods like cash,
cheque, and credit card, a customer can use a mobile phone to transfer money or to pay for goods and
service
Electronic instant mobile money transfer service through mobile phones by IMPS technology.
An IMP (Immediate Payment Service) is an indigenous project of NPCI, started in 2010.
o
o
o
The program will be covering various issues for the rural development, womens empowerment, health,
education, environmental protection to rural livelihoods.
Headquarters (SBI): Mumbai.
Head : Arundhati Bhattacharya.
June 25
ICICI Bank has launched co-branded card with DMRC.

o It has function as both Credit/ debit card and smart card for Delhi Metro Rail Corporation (DMRC).
o It can be your credit/ debit card, and offers the benefit of 10 per cent discount that the DMRC smart card
offers.
o ICICI Bank, said the bank will be launching similar cards in other metro rail systems, such as those in
Mumbai, Bangalore and Hyderabad.
o Bank was first to launch such system for the Bangalore Metro.
Two banks (UBS Bank and Credit Suisse bank) have 2/3rd of all Swiss money of Indians.
o According to the latest official data disclosed by Switzerland's central banking authority SNB, Indians money
in Swiss banks rose by 43 per cent last year to 2.03 billion Swiss francs (nearly Rs. 14,000 crore).
RBI Changed period of maintenance and preservation of records under KYC norms.
o Earlier, Authorised Persons are required to maintain and preserve records mentioned therein for a period of
at least ten years.
o Authorised Persons are now required to maintain and preserve records for a period of at least five years.
Reliance Life insurance unveiled a new plan 'claim guarantee'.
o Payment of death claim in the shortest time period of 12 days.
A list of defaulters was prepared and it was decided that the defaulters wont be allowed to open current
account in any other bank, if an account was non-performing (NPA) for any bank.
o Due to the sharp rise in NPAs from past two years, the RBI and govt. of India are taking some strict
measures to control.
o Asset Classification:
Non-performing Asset (NPA):
For term loans/ Overdraft/ Cash Credit/ discounted bills: Interest/ installment of principal remain
overdue for a period of more than 90 days.
For agricultural purposes: Interest/ installment of principal remains overdue for two harvest
seasons but for a period not exceeding two half years.
Sub-standard Assets
NPA for a period less than or equal to 18 months.
Doubtful Assets
NPA for a period exceeding 18 months.
Bad Assets.
Sub-standard Assets and Doubtful Assets are together called as Bad assets.
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Canara Bank has opened a 'Canara Shikhar Branch' in Kerala.

o The branch will be offering 'May I Help You counter and CanEpxress lobbies featuring a cheque/ cash
deposit machine and passbook printing machine.
o This Branch also offers Internet banking customers can enjoy free service while paying their bill online.
UCO Bank has been awarded the Platinum SKOCH Inclusion & Deepening Award 2014 for excellence in
banking.
o UCO has adopted 18 villages across 10 States for the uplift of below-poverty-line households. It has trained
46,659 persons, of which 27,000 have become economically self-reliant with a credit linkage of Rs. 590
crore.
RBI recognized e-Aadhaar as an Officially Valid Document under PML rules.
o E-Aadhaar downloaded from UIDAI website may be followed by all payment system participants/ operators
under prevention of Money Laundering Act (PMLA), 2002.
Sahoo panel report on Depository Receipts.
o Important recommendations by panel:
It recommended creation of a Bharat Depository Receipts (BhDR) framework to help the country
emerge as a key international financial centre.
DRs should be allowed for foreign securities already accessible to Indian investors.
Indian market should allow trading of depository receipts issued or listed elsewhere.
BhDRs could be issued for both capital raising and non-capital raising purpose.
Proceeds from BhDR issues may be repatriated or used within India.
SEBI should be exclusive regulator.
A complete suite of Bharat Depository Receipts should be allowed.
o Benefits:
Indian investors will have a greater choice and ability to diversity.
Indian financial system will become more competitive.
June 27
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RBI has issued a new directive under which in case any credit card fraud occurs.
o Now in case any credit card fraud occurs, banks have to prove that the consumer has acted fraudulently.
o Earlier the responsibility of proving themselves innocent was on the customers.
o Banking Codes and Standard Board of India (BCSBI) has come up with this new directive which is in favors of
the customer rights and protection.
o The new rule also increased the cap on customers' liability for unauthorised transactions to Rs. 10,000 from
Rs. 1,000 before. All the measures like biometric authentication, sending SMS after every transaction at
ATM are to reduce the card frauds.
o The customer will also be responsible to any misuse of card until he informs the bank about incidents like
loss of card or disclosing the PIN number to someone.
o According to the new rules the customer will be protected in cases such as someone hacking into the
system.
Banks in Kerala launched debt swap scheme with the private money lenders.
o Debt swap scheme named Wrina Mukthi due to increase in suicides and related incidents by the victims of
the private money lenders.
o Loans of up to Rs. 50,000 lent to farmers and artisans
o Under the scheme an average rate of 10.25% will be there of all the banks, repayable over a period of three
to five years.
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June 28
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Central Bank of India has signed an agreement with the dairy firm Kwality Ltd. City based kwality dairy firm is
a huge dairy firm with six plants in Haryana, Uttar Pradesh and Rajasthan with processing capacity of 30 lakh
litres a day.
o The bank will be providing financial help to the dairy farmers through this agreement. The Company stated
that the bank will support milk producer farmers in purchasing the dairy animals and to expand and
establish the dairy farms.
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JULY 2014
July 1
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State Bank of India has launched six digital branches across the nation, as part of its program to offer next
generation banking solutions to the mobile and internet-savvy customer base.
o Kolkata, Bangalore, Chennai, Ahmedabad and Delhi are the first six cities to have digital branches facility
named sbiINTOUCH.
IDBI Bank introduced mobile banking service for its customers.
o This facility enables the customer to meet all banking needs such as fund transfer, bill payments, visa
money transfer, DTH/ mobile recharge and much more from any destination.
o Mobile Banking:
Mobile banking is a system that allows customers of a financial institution to conduct a number of
financial transactions through a mobile device such as a mobile phone or tablet.
Mobile banking can be performed via SMS or the mobile web or mobile apps.
IMPS (Immediate Payment Service) a technology introduced by NPCI is used to do mobile banking.
Mobile banking is first introduced in 4 banks (SBI, Bank of India, Union Bank of India and ICICI Bank) in
August 2010.
Limit: The maximum limit is Rs. 50,000 per day and Rs. 2,50,000 per month.
Anytime: IMPS is available round the clock, 24x7 including weekends and holidays.
o Other important terminologies in Mobile banking
Sender: Remitter.
Receiver: Beneficiary.
MMID: Mobile Money Identifier (7 digit number issued by the bank upon registration).
MPIN: Mobile Personal Identification Number (4 digit password).
Bank of Maharashtra was conferred ''Best Bank Public Sector'' award in BFSI Awards-2014 by World HRD
Congress in recognition of its performance in banking category, the bank said in a statement.
o The award focuses on the best practices of the BFSI Industry based on the Strategy, Security, Customer
Service and the Future Technology Challenges and Innovations.
The growth rate of eight core sectors decelerated to a four-month low of 2.3 per cent in May due to decline in
the output of crude oil, natural gas and steel production. The infrastructure industries had registered 5.9 per
cent growth in May 2013.
Non-subsidised cooking gas (LPG) was hiked by Rs. 16.50 per cylinder and that of jet fuel by over half-a-per
cent after international oil prices surged due to the ongoing Iraq crisis.
France has proposed to give India a 1 billion euro ($1.4 billion) credit line to fund sustainable infrastructure
and urban development projects, said France Foreign Minister Laurent Fabius.
o India, which has said it needs $1 trillion of investment by 2017 to upgrade its infrastructure, is keen to
attract foreign development agencies and companies to help finance new roads, railways and cities.
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International rating agency Fitch said India's economic growth will accelerate to 5.5 per cent this financial year
and 6.5 per cent in FY16.
Government of India and the World Bank signed here a Loan Agreement for World Bank assistance of US $500
million for National Highways Inter-connectivity Improvement Project (NHIIP).
o The objective of the project is to improve the National Highway network connectivity to less developed
States and enhance institutional capacity of Ministry of Road Transport and Highways to better manage the
highway network.
o The Project comprises of upgradation of about 1120 kilometer of existing single/ intermediate lane National
Highways in three low income States (Bihar, Odisha and Rajasthan) and in less developed regions of two
middle income States (Karnataka and West Bengal).
o The total project size is US$ 1146.05 million.
o Ministry of Road Transport and Highways, Government of India is the implementing agency for the Project.
July 2
The Indian Banks Association (IBA) has suggested to the RBI that customers who withdraw money from other
banks ATMs should be charged.
o RBI yet to decide on this issue of, were ATM transition at non-home bank ATM can charge as high as Rs. 20
per transaction.
o Home bank network means ATMs of the bank in which you have an account.
Home ministry asks RBI to direct banks to procure ATMs that can generate receipts in Hindi.
o ATMs installed in Hindi-speaking states could soon start churning out receipts in Hindi along with English as
the home ministry has asked the Reserve Bank of India to direct banks to procure only those ATMs that
have such a facility.
Standard Chartered bank has signed an agreement with a leading Insurance company ICICI Prudential Life
Insurance Company Ltd. The bank will be entering to in a strategic bancassurance partnership with the
company.
o Standard Chartered Bank is the largest foreign bank in India in terms of branches.
o Under the 15-year agreement, Standard Chartered Bank will distribute ICICI Prudential Lifes life insurance
products through its network of 99 branches across 42 cities in India.
o Standard Chartered Bank (Headquarters) : London, United Kingdom.
Standard Chartered Bank ended the partnership with Bajaj Allianz (a life insurance Company).
o This move of Standard Chartered bank came after it has entered to in Bancassurance partnership with the
ICICI prudential.
July 3
RBI restored the limit of Overseas Direct Investment taken under automatic route under FEMA, 2004.
o With this decision now an Indian company can undertake financial commitment or invest up to 400 percent
of the net worth in all its Joint Ventures (JVs) and/or Wholly Owned Subsidiaries (WOSs) abroad.
o However, RBI decided that any financial commitment exceeding one billion US Dollars or its equivalent in a
financial year will require prior approval of the Reserve Bank. This rule is applicable even if total
commitment undertaken by an Indian company falls within the eligible limit.
o Previous Norms:
Earlier in August 2013, RBI reduced the ODI limit to 100 percent of net worth of company from 400
percent for all Indian companies by considering the prevailed macro economic situation.
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The decision was taken in order to control the unprecedented appreciation of the dollar when the
rupee touched an all-time low of 68.80 rupees.
July 4
RBI restored the limit of Overseas Direct Investment (ODI) taken under automatic route by Indian companies.
o Indian company can undertake financial commitment or invest up to 400 percent of the net worth in all its
Joint Ventures (JVs) and/or Wholly Owned Subsidiaries (WOSs) abroad.
o Earlier in August 2013, RBI reduced the ODI limit to 100 percent of net worth of company from 400 percent
in order to control the unprecedented appreciation of the dollar when the rupee touched an all-time low of
68.80 rupees.
o About Overseas Direct Investment:
Direct investment outside India means investments, either under the Automatic Route or the Approval
Route, by way of contribution to the capital or subscription to the Memorandum of a foreign entity or
by way of purchase of existing shares of a foreign entity either by market purchase or private
placement or through stock exchange.
Under the Automatic Route, an Indian Party does not require any prior approval from the Reserve Bank
for making overseas direct investments in an abroad.
Under the Automatic Route, proposals not covered by the conditions under the automatic route
require prior approval of the RBI for which a specific application in Form ODI with the documents
prescribed therein is required to be made through the Authorized Dealer Category I banks.
July 5
Second largest bank of the country, ICICI bank conducted a Kisan Sampark Programme in 170 villages of
Punjab and Haryana.
o Objectives of the program:
It a part of its financial inclusion plan the bank organized this program.
The aim of the program was to create awareness among the farmers regarding the agri -banking tools
that will assist them.
The program was initiated to develop the savings habit among the farmers.
July 7
The central Bank of India was awarded with first prize for promoting the National Language in the bank by
Andhra Pradesh State-Level Bankers Committee.
o National Language in Banks:
According to the Official Languages Act 1963 and Official Languages Rules 1976 all the banks have to
implement the Official Language Policy (Hindi).
Dena Bank has signed an agreement with Universal Sompo General Insurance Company.
In order to keep a check on the loan misconducts and to provide the loan insurance cover to the
borrowers the bank has decided to work with the insurance company.
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Central govt. has offered an overdraft (OD) facility of Rs. 5,000 by the bank with which they open an account
those untouched by the high-street banks.
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July 9
Banks can't insist on minimum 60% marks to extend educational loans: Madras high court.
o Banks cannot fix 60% of marks in Plus Two as minimum required for extending education loan to students
joining engineering courses, the Madras high court.
o Once loan is given to student, it has to continue for whole his tenure of education course, and banks should
not consider 60% as minimum marks on yearly merit.
July 11
Kisan Vikas Patra (KVP), a small savings instrument is re-introduced to cater to the needs of the girl child. KVP
also comes under National Savings Certificate (NSC) with insurance cover.
o This scheme will assist the people in fulfilling the needs of girl child like education and marriage, aside of the
hiking of PPF investment limit to Rs. 1.5 lakh (from Rs. 1 lakh).
o KVP was discontinued in 2011, but the finance minister wants to re-introduce this popular scheme in order
to encourage people, who may have banked and unbanked savings to invest in this instrument.
o About NSC :
In 2011, as per the recommendation of the Shyamala Gopinath committee on review various
parameters of the National Small Savings Fund (NSSF), the returns of small saving schemes were
market-linked.
The rates on these instruments were benchmarked to government securities of similar maturity
periods. So the returns on PPF are now linked to government securities and the rate applicable for each
financial year is declared at the beginning of the year. For FY15, the rate continues to be 8.7%.
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But there is a gimmick for those availing of the OD: customers should be willing to take financial literacy
lessons from lenders.
o The government will set up an Rs. 1,000 crore credit guarantee fund that would be 'budget neutral' on the
exchequer and funded by NABARD.
o The OD offer is part of 'Sampoorn Viteeyea Samveshan' (SVS), which is a comprehensive scheme for
financial inclusion.
o The rate of interest of these accounts is proposed to be 3% over the bank's base rate. Of this, 1% would go
to the credit guarantee fund and 1% to BC for maintenance of the account.
o About SVS :
It is launched for ensuring every district with 1,000 - 5,000 households has access to banking services
within 5 km by March 2016; provide financial literacy; provide basic banking for all beneficiaries of
government schemes by March 2016; an overdraft of Rs. 5,000; micro insurance and pension scheme
for the unorganised sector.
Two banks from India, Axis Bank and Union Bank were among the five new entities authorized to do banking
business in the UK, as per latest statistics released by the British regulators.
o Other three banks are FCMB (UK) Ltd, UBA Capital (Europe) Ltd and Paragon Bank plc.
o Other Indian banks already present in the UK include ICICI Bank, SBI, Bank of Baroda, Canara Bank,
Syndicate Bank and Bank of India.
o
A move by certain banking channels to impose charges on savings bank account holders of banks on
transactions done through ATMs of other banks, has not received the nod of the authorities concerned.
14
Groups of ATM operators in the private sector are understood to be behind the move to levy charges on
every transaction made on ATMs belonging to other banks.
At present, five transactions performed through ATMs of other banks such as balance enquiry and changing
of secret identification number are free of charge in a calendar month. The charges levied on the
transactions from other ATMs differ with each bank, generally in the range of Rs. 10-20 for cash withdrawal
and Rs. 5-10 for balance enquiry.
July 14
Government gave USD 579 mn additional penalty on RIL.

o The government has slapped an additional penalty of USD 579 million on Reliance Industries for producing
less than targeted natural gas from its KG-D6 block.
o With this, the total penalty on RIL for missing the target in four fiscal years beginning 1st April 2010 now
stands at a cumulative USD 2.376 billion.
o About Penalty in KG-D6 blocks:
The penalty is in the form of disallowing costs incurred. The Production Sharing Contract (PSC) allows
RIL and its partners BP Plc and Niko Resources to deduct all capital and operating expenses from the
sale of gas before sharing profit with the government.
Oil Minister : Dharmendra Pradhan.
July 15
RBI has issued fresh norms for issue/transfer of shares by non-resident investors (NRI) in unlisted domestic
companies.
o This move of RBI is expected to provide more flexibility in foreign direct investment, in which the issue and
transfer of shares including compulsorily convertible preference shares and compulsorily convertible
debentures shall be worked out as per any internationally accepted pricing methodology on arms length
basis.
o RBI has added that the valuations must be certified by a chartered accountant or a merchant banker
registered with capital markets regulator Securities Exchange Board of India.
o RBI also warned against provisions guaranteeing an exit price to the investor but conceded that it is fine
with the practice of having a lock-in period.
The BMB has launched BMB rent a new product to benefit the owners of properties who have rented out
their premises.
o This loan product is basically designed for the individuals and firms who have rented out their property to
the big renowned companies and organizations.
o The minimum amount would be Rs. 20 lakh and the maximum amount is Rs. 5 core.
July 16
RBI instructed Non-banking financial companies (NBFC) not to charge pre-payment penalties on floating rate
term loans.
o Two months earlier RBI has also asked the Commercial Banks for the same, now RBI has instructed the NBFC
to follow the same.
o About floating rate term loans:
Interest rate of loan that is allowed to move up and down with the rest of the market or along with an
index.
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In 1950, after the Second World War, Canada became the first major country to adopt a floating rate.
NABARD launched a financial literacy camp to increase the literacy and awareness among the villagers.
o The chief General Manager of the bank has asked the farmers and the others to come and attend the camp
that guided them to utilize the services provided by the banks.
o On the occasion of 33rd foundation of the bank organized this camp named ''Vidya Saksharatha Abhiyan''.
o Established: 12 July 1982.
o Headquarters: Mumbai.
o Chairman: Dr. Harsh Kumar Bhanwala.
July 17
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The RBI has liberalised the remittance scheme for the resident individuals from USD 75,000 to USD 1,25,000
per financial year.
o According, now the permission has been granted to remit up to USD 1,25,000 per financial year, under the
scheme for any permitted capital or current account transaction or a combination of both.
o Further, it is clarified that the scheme can now be also extended to for acquisition of immovable property
outside India.
The RBI issued draft guidelines for licensing of payments banks and small banks.
o Both these banks will be created with a common objective of furthering financial inclusion by adding value
through adapting technological solutions to lowers costs.
o Functions of Small Banks & Payments Banks:
Small banks will provide a whole suite of basic banking products, such as, deposits and supply of credit,
but in a limited area of operation
Eligibility for small bank includes resident individuals with ten years of experience in banking and
finance, companies and societies, NBFCs, Micro Finance Institutions and Local Area Banks.
Payments banks will provide a limited range of products, such as, acceptance of demand deposits and
remittances of funds, but will have a widespread network of access points particularly to remote areas,
either through their own branch network or through Business Correspondents (BCs) or through
networks provided by others. But, cannot give loans.
Eligibility for Payments Bank includes existing non-bank Pre-paid Instrument Issuers (PPIs), NonBanking Finance Companies (NBFCs), corporate BCs, mobile telephone companies, super-market
chains, companies, real sector cooperatives, and public sector entities.
Initial Capital: The minimum paid up capital requirement of both payments banks and small banks is
kept at 100 core rupees, of which the promoters initial minimum contribution will be at least 40
ercent, to be locked in for a period of five years.
India and Brazil signs 3 agreements.
o Cooperation on climate change, biodiversity, afforestation in arid areas, water conservation and protection
of wetlands, waste management among other things.
o They agreed to establish a bilateral mechanism for consultation on bilateral consular and mobility issues
and on bilateral legal cooperation, including issues related to the movement of people between the two
countries.
o The agreement designated the National Institute for Space Research (INPE), the Brazilian executive agency
for earth observation data reception, processing, archiving, and distribution, to take responsibility and to
work together with the Indian Space Research Organisation (ISRO).
The Government of India has minted the Rs. 10 coins to commemorate the occasion of "Diamond Jubilee of
Coir Board" which the Reserve Bank of India will shortly put into circulation.
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About Coir Board:

The Coir Board is a statutory body established by the Government of India under the 'Coir Industry Act
1953 (45 of 1953)' for the promotion and development of the coir (coconut fibre) industry in India.
Headquarters: Kochi.
July 18
The RBI has relaxed norms governing import of rough, cut and polished diamonds by doubling the credit time
period to 180 days.
o Earlier, the time frame was of 90 days.
o As per new norms the Clean Credit i.e., Credit given by a foreign supplier to its Indian customer/ buyer,
without any Letter of Credit (Suppliers' Credit)/ Letter of Undertaking (Buyers' Credit)/ Fixed Deposits from
any Indian financial institution for import of rough, cut and polished diamonds, may be permitted for a
period not exceeding 180 days from the date of shipment.
o Letter of Credit:
A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for
the correct amount. In return for these documents, the beneficiary receives payment from the financial
institution that issued the letter on discount.
In the event that the buyer is unable to make payment on the purchase, the bank will be required to
cover the full or remaining amount of the purchase.
Given by: Bank.
Given to: Seller.
Here, bank needs to take confirmation from Buyer before giving credit to seller.
o Letter of Undertaking:
It is opposite of Letter of credit.
Letter of undertaking means an agreement by which a ship-owner undertakes the following:
a. To employ security on the ship;
b. To enter an appearance acknowledge ownership; and
c. To pay any final decree entered against the vessel whether it is lost or not.
The main purpose behind creating a letter of undertaking is to avoid the creditors from sezing the ship
and releasing it on bond.
Given by: Bank.
Given to: Buyer.
o Here, bank needs to take confirmation from Seller before giving credit to buyer.
July 20
Canara Bank signs Rs. 1,170 crore loan pact for Kochi Metro.
o About Kochi Metro Project:
Cost completion Phase - I of the project is Rs. 5,200 crore.
Kochi is the first Tier - II city in India to be granted a metro under the Central Government's plan to
allow cities having population more than 2 million to have a metro rail system.
There are about 8 Tier I cities, 26 Tier - II cities, 33 Tier - III cities and over 5,000 Tier - IV towns, while
there are more than 638,000 villages in the country.
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17
RBI gave last date as March 31, 2017 to meet SLR norms to Non Scheduled State Coops.
Date
SLR as percentage of NDTL
March 31, 2015 5%
March 31, 2016 10%
March 31, 2017 Entire SLR as may be prescribed by RBI on that date
o In recent monetary policy of RBI, CRR for Non-Scheduled StCBs and all CCBs from 3.00 per cent to 4.00 per
cent.
SBI started Home Loan on wheels.
o This project will be done through vans, which will have a showcase of various home loan products of SBI.
o Its first project is started at Chennai.
July 22
EPFO will now be allotted with a Universal Account Number (UAN).

o This facility of UAN will provide the facility of portability, in case the member shifts the job, he will not need
to apply for the transfer of PF account. Initially, the UAN will be provided to members currently contributing
to the EPFO by October 15. Shortly the UAN will be made more secure with the PAN/ aadhar
authentications.
o EPFO had launched the online facility for allotment of employer's code on June 30. It has been informed
that this UAN number will be portable for the throughout the entire working time of the EPFO member.
o Objective of UAN:
The UAN would be one account number which would be allotted to a subscriber for various schemes
run by the EPFO for his entire service period with different employers.
YES Bank and international money transfer company Transfast, have launched an online money transfer
service with instant deposits to NRI customer accounts with any bank in India.
o This service facilitates real-time deposit of funds to all banks currently connected to the National Payments
Corporation of Indias (NPCI) platform for inward remittances and is available 24 hours a day/7 days a
week/365 days a year, YES Bank said in a statement.
July 23
RBI relaxed the Rs. 1 lakh ceiling on loans for non-agriculture against gold jewellery.
o Borrowers can now pledge their gold and get a higher value of loans, provided that the loan-to-value (LTV)
ratio does not exceed 75% of the cost of the gold.
o Prior to this in January 2014, loans extended against pledge of gold ornaments and jewellery, for other than
agricultural purpose was not permitted.
o Now gold jewellery loans for non- agriculture is subject to the following conditions:
1. The tenor of the loans shall not exceed 12 months from the date of sanction.
2. Banks, as per their Board approved policy, may decide upon the ceiling with regard to the quantum of
loans that may be granted against the pledge of gold jewellery and ornaments for non-agricultural end
uses.
3. Interest will be charged to the account at monthly rests and may be recognised on accrual basis provided
the account is classified as standard account. This will also apply to existing loans.
4. Such loans shall be governed by extant norms pertaining to income recognition, asset classification and
provisioning which shall be applicable once the principal and interest become overdue.
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The central bank to framework to tightly regulate large financial institutions in India, whose failure can
seriously impact the functioning of the financial system.
o The Reserve Bank of India (RBI) will start announcing the names of Domestic Systemically Important Banks
(D-SIBs) by August 2015. The central bank is expected to use a multiple indicator approach to for this
classification.
o This is similar to the category of too-big-to-fail banks in other countries based on the bank's size and
systemic interconnectedness.
o The RBI said it would start disclosing the names of banks deemed as domestic systematically important
banks, adding that as per data it had compiled as of March 31, 2013, four to six domestic lenders would
qualify under the category.
o The central bank said it would create four sub-categories of D-SIB lenders, each with different requirements
for additional common equity Tier 1 capital requirements that would range from 0.20% to 0.80% of risk
weighted assets.
o The banks identified as D-SIBs would be plotted in four different buckets depending upon their systemic
importance scores in ascending order and they would be required to maintain additional capital in the
range of 1% to 2.5% of their risk weighted assets.
o Background:
The Basel Committee on Banking Supervision (BCBS) came out with a framework in November 2011 for
identifying the Global Systemically Important Banks (G-SIBs) and the magnitude of additional loss
absorbency capital requirements applicable to these G-SIBs. BCBS further required all member
countries to have a regulatory framework to deal with Domestic Systemically Important Banks (D-SIBs).
July 24
World Bank commits $15-18 bn to India in next 3 years.

o The World Bank has committed 15 to 18 billion dollars to India by 2017 to help the country return to a
higher growth path which is critical for boosting jobs and reducing poverty.
o It will step up its lending to India to 5 to 6 billion dollars annually over the next three years from the earlier
commitment of 3 to 5 billion dollars a year.
o The World Bank President Jim Yong Kim endorsed the government's commitment on reforms and said the
multilateral agency will support the development initiatives with financing as well as knowledge and
capacity building. He said, the new government would like to return to a growth rate of 9 percent.
Reserve Bank of India likely to keep benchmark rates 'steady' this fiscal: DBS.
o The Reserve Bank of India is expected to be in pause mode in its policy review meet next month, a DBS
research report.
o The report also indicated that the benchmark rates are likely to remain 'steady' for the rest of this fiscal
year.
o According to the global financial services major, the government has displayed a proactive approach in
calming unseasonal and unwarranted increase in prices of vegetables and fruits.
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The Reserve Bank of India has imposed a monetary penalty on 12 banks as under:
S. No Name of the Bank
1
Andhra Bank
2
Axis Bank
Amount of Penalty (in lakh)

10
15
19
3
Canara Bank
10
4
Corporation Bank
10
5
HDFC Bank
5
6
ICICI Bank
40
7
IDBI Bank
15
8
IndusInd Bank
10
9
Kotak Mahindra Bank
10
10
Ratnakar Bank
5
11
State Bank of Hyderabad 10
12
Yes Bank
10
o The Reserve Bank had carried out a scrutiny of the loan and current accounts of M/s. Deccan Chronicle
Holdings Ltd., in certain branches of these banks in late 2013. Based on the findings of the scrutiny, the
Reserve Bank issued show cause notices to these banks in March 2014, to which the individual banks
submitted written replies.
Monitoring of Foreign Investment in Indian Companies under PIS: The South Indian Bank Ltd. Incorporation in
Ban List.
o The Reserve Bank of India today advised that the foreign shareholding through Foreign Institutional
Investors (FIIs)/ Registered Foreign Portfolios Investors (RFPIs)/Non Resident Indians (NRIs)/ Persons of
Indian Origin (PIO)/ Foreign Direct Investment (FDI)/ American Depository Receipts (ADRs)/ Global
Depository Receipts (GDRs) in The South Indian Bank ltd has crossed the prescribed threshold limit as per
extant FDI policy.
o Hence, further purchases of equity shares of this company would not be allowed through Stock Exchanges
in India on behalf of FIIs/ RFPIs/ NRIs/ PIOs and through FDI/ ADRs/ GDRs.
July 26
182-days Treasury Bills auction: Rs. 6,000 crore under regular auction.
o The Reserve Bank of India has announced the auction of 182-days Government of India Treasury Bills for
notified amount of Rs. 6,000 crore. The auction will be conducted on July 30, 2014 using "Multiple Price
Auction" method.
o The allocation to the non-competitive bidders will be outside the notified amount at the discretion of the
Bank. The sale will be subject to the terms and conditions specified in the General Notification No. F.2 (12)W & M/97 dated March 31, 1998 issued by Government of India and as amended from time to time.
July 27
Arun Jaitley to address RBI board on August 9.

o Finance Minister Arun Jaitley will address the board of the Reserve Bank here on August 9 amid
expectations that the central bank will complement government actions by reducing rates to boost growth.
o Jaitley, who presented his maiden budget, is likely to inform the RBI board about the steps taken to contain
the fiscal deficit and may underline the need to reduce interest rates to promote growth.
Central Bank of India to sell 4 per cent stake to LIC for Rs. 581 crore.
State-run lender Central Bank of India has said it is in the process of selling 4 per cent of its stake to Life
Insurance Corporation through an institutional placement for Rs. 581 crore to meet its capital requirement of
Rs. 2,000 crore this fiscal.
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''We will need Rs. 2,000 crore for our business plans this financial year. We did go to LIC and we are getting
around Rs. 581 crore from them'', chairman and managing director Rajeev Rishi said. He however, did not
specify a timeline for the deal with LIC.
July 28
SBI, PNB, BoB & BoI preparing blueprint to identify takeover targets.
o India's banking sector may be getting ready for a wave of consolidation as the country tries to build
institutions of world-class proportions.
o Four big state-run banks State Bank of India, Punjab National Bank of Baroda and Bank of India have
already begun an exercise to identify takeover targets to gain access to franchises that would augment their
capabilities, said three top bankers familiar with the move.
Over Rs. 3,350 crore worth NPAs with Union Bank of India.
o Union Bank of India has Non - Performing Assets (NPAs) worth about Rs. 3,350 crore from 20 defaulters.
Replying to an RTI query, the bank, however, declined to share the names of the defaulters citing
"commercial confidence". List of the borrowers cannot be provided as they are of commercial confidence
and exempted from disclosure under Section 8(1) (d) of the RTI Act.
July 29
RBI cancels Certificate of Registration of M/s Insilco Merchants Private Limited.

o The Reserve Bank of India has cancelled the certificate of registration of the Insilco Merchants Private
Limited a non-banking financial company (NBFCs) under the powers conferred on it under clause (a) of
Section 45-I of the Reserve Bank of India Act, 1934.
July 30
Axis bank has initiated MyIdeaOfProgress.

o To promote its banking services and lure major number of customers the bank has come up with this online
initiative.
o Through this website the bank has asked the people and the users to share their ideas. Recently bank has
also made the leading actress of the bollywood deepika Padukone as its brand ambassador.
July 31
S.S. Mundra took over as the Deputy Governor of the Reserve Bank of India (RBI) the fallen vacant in March
after former deputy governor K.C. Chakrabarty completion of his term.
o Prior to joining the Reserve Bank, Shri Mundra was Chairman and Managing Director, Bank of Baroda, the
second largest bank in the country.
o As Deputy Governor, Shri Mundra will look after banking supervision, currency management, financial
stability, rural credit, customer service, as also, the Reserve Banks human resources and security.
o Life history & achivements of Subhash Sheoratan Mundra:
Born on July 18, 1954, Shri Mundra began his career as a Probationary Officer in Bank of Baroda in
March 1977.
During a banking career spanning 37 years, he has held several challenging positions including heading
Bank of Barodas European operations (UK) before being elevated as Executive Director of Union Bank
of India in September 2010 and further as Chairman of Bank of Baroda in January 2013.
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Shri Mundra has served on Boards of several multi-dimensional companies, such as, (CCIL), (CDSL), BOB
Asset Management Company (IIFCL), NPCI.
He has served as the Chairman of Committee on Financial Inclusion set up by the Indian Banks
Association (IBA).
He holds a Masters Degree in Commerce and CAIIB.
o About Dept. Governer of RBI
The RBI performs this function under the guidance of the Board for Financial Supervision (BFS). The
Board was constituted in November 1994 as a committee of the Central Board of Directors.
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RBI have 21-member in Central Board of Directors: the Governor, 4 Deputy Governors, 2 Finance
Ministry representatives, 10 government-nominated directors to represent important elements from
India's economy, and 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai
and New Delhi.
1
2
3
4
AUGUST 2014
August 1
Do Not give Details of Your Bank Account or Credit/Debit Cards on Email/ Phone: RBI Warns Public Again on
Phishing Mails/ Calls
o Of late, some new methods of frauds have come to the notice of the Reserve Bank of India. An e-mail is sent
in the name of a senior official of the Reserve Bank of India which gives an impression of it having been sent
from the Reserve Bank and at times even displays the official rbi.org.in extension.
o The e-mail states that the Reserve Bank has received a large sum of foreign currency from the World Bank
or a well-known international institution or a multi-national company for transfer of such funds to the bank
account of the e-mail recipient. The reason for such transfer cited in such e-mails is also quite convincing,
such as, compensation for internet and cyber-crimes and for reduction of poverty in Asian regions.
August 2
Union finance minister Arun Jaitley disclosed that non-performing assets ( NPAs), or bad loans, of public sector
banks have soared to a staggering Rs. 25,809 crore for the financial.
Financial year Gross NPA in PSB (in Rs. Crore) % wrt deposits
2013 - 14
2,45,809
4.03
2012 - 13
1,83,854
3.42
2011 12
1,97,102
2.94
The minister said that the Reserve Bank of India ( RBI) has taken a number of steps to recover the bad loans
that resulted in recovery of Rs. 33,486 crore in 2014, Rs. 19,832 crore in 2013 and Rs. 17,272 crore in 2012.
The RBI measures include creation of a Central Repository of Information on Large Credits to collect, store
and disseminate credit data to banks on credit exposures of Rs. 5 crore and above, formation of joint
lenders' forum, corrective action plan and sale of assets.
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Shri H. R. Khan
Dr. Urjit R. Patel
Shri R. Gandhi
S. S. Mundra
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RBI has issued instructions to the banks to review slippages in asset classification in the borrowal accounts
with outstanding Rs. 5 crore and above by the Board of directors of the bank and review NPA accounts
which have registered recoveries of Rs. 1 crore and above.
Cheque bouncing : SC settles law on where to file a complaint.
o The Supreme Court (SC) gave judgement that a complaint about a bounced cheque must only be filed at the
place where the bank dishonoured it, settling doubts raised by its own earlier conflicting judgments on the
jurisdiction of a magistrate.
o A three-judge bench headed by T.S. Thakur unanimously laid down that the place of dishonour is the right
place to file a complaint.
o Background
The judgment was delivered on a large number of appeals, including those moved by Videocon
Industries and Kitchen Appliances Ltd, which raised the question of jurisdiction of the magistrate who
can try cases under Section 138 of the Negotiable Instruments Act 1881.
According to this provision of NI-Act, it is an offence to issue cheques without a sufficient balance in
the account, if the payment is made to discharge a debt or liability. If the amount is not paid within two
weeks (15 days), the payee can file a criminal complaint.
o Checque Bouncing in INDIA:
What happens when usually a cheque bounces?
After the bouncing of the cheque, almost every bank in India issues a ''Cheque Return Memo'' to
the banker of the person, who received the cheque and deposited in his bank. In legal parlance,
he is called the ''payee'' of the cheque. The payee of the cheque can represent it in the bank for
payment after informing the drawer (giver) of the cheque for payment. The option is also open
to the payee to proceed legally against the drawer of the cheque.
If the cheque was given for the purpose of gifts or any other illegal purpose, then drawer of the
cheque cannot be prosecuted.
Section 138 of the Negotiable Instrument Act 1881, prescribes that the payee has to send a
notice to the drawer of the cheque within 30 days of receiving the Cheque return memo from his
bank. In his notice to the drawer, he can demand the payment to be made to him within 15 days
of date of receipt of his notice.
If the drawer does not pay within the 15 days time, then the payee can file a complaint in the
court of jurisdictional magistrate within one month of date of expiry of the 15 days time
mentioned in the notice to the drawer
o Punishment for the drawer of the Cheque
The punishment in such cases might be double of the amount stated in the cheque or a jail term up to
2 years.
o Amount of Penalty
Neither the RBI nor the Indian Banks' Association (IBA) has prescribed a maximum or minimum limit for
the penalty for cheque-bouncing and it is for individual banks to decide.
o
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Bank < Rs. 50,000 Rs. 50,000 1 L Technical reasons (signature or over-writing on the cheque)
SBI
Rs. 102
Rs. 204
Rs. 76
ICICI Rs. 350
Rs. 750
Rs. 150
The CBI arrested six persons including chairman-cum-managing director of Syndicate Bank, SK Jain for allegedly
taking bribe of Rs. 50 lakh for increasing credit limit of some companies in violation of banking rules.
23
After keeping a watch on the activities of Jain for last six months on the directive of CBI Director Ranjit
Sinha, CBI sleuths finally swooped on his relative and a Madhya Pradesh - based chartered accountant and
arrested them while allegedly receiving cash from representatives of companies which have been involved
in coal scam.
August 3
The RBI cancelled the certificate of registration of six non-banking financial company (NBFCs). With this
cancellation, these six NBFCs based in Delhi would not be able to conduct business of non-banking financial
institution.
o These six NBFCs are
1. GE Strategic Investments India (GESII)
2. Profound Exports Private Limited
3. Two Brothers Holding Limited
4. Swank Services Private Limited
5. Praxis Consulting and Information Services Private Limited
6. Credible Microfinance Ltd. (formerly known as "Credible Securities & Finance Pvt. Ltd.")
Power granted to RBI to cancel registration certificate of NBFC
o The registration certificate of a non-banking financial company can be cancelled by RBI under the powers
conferred under Section 45-IA(6) of the Reserve Bank of India Act, 1934. The business of a non-banking
financial institution is defined in clause (a) of Section 45-I of the Reserve Bank of India Act, 1934.
Under the financial inclusion plan, the govt. has decided to expand the banking facilities through mobiles and
made them accessible to all the people. It has been noticed that there are nearly 7.5 crore households who do
not posses any banking facility. Govt. is making its best efforts to make banking accessible to all, and to have
at least two account holders in every household.
o At present the inclusion plan covers up to the 58-59% i.e. area having access to banking and the remaining
area accounts for 7.5 crore household that do not have any access to the banking. In order to expand
banking and making banking accessible across all the households the govt. is planning to have a campaign
for inclusion throughout the country.
o Where ever possible the new brick and mortar branches and ATMs will be established that will provide
banking services. In a period of two considerable development is expected under this plan.
August 4
The Credit Information Bureau (India) Ltd (CIBIL) said it will come up with a risk index which will help banks
and financial institutions in the process of granting loans and advances to corporates.
o About CIBIL :
CIBIL provides credit information about individual customer and business entities that helps banks in
taking decision on sanctioning credit to any customer. It maintains account credit information of 350
million accounts of individual consumers and 19 million accounts of businesses.
CIBIL has also recently launched new product for banks called 'Alert' wherein it will send an alert to the
bank whenever there is a change in the profile of a customer.
Another product called 'Instant Acquisition of Customers' allows NBFCs to take instant decision on
giving credit to customer or not by providing instant credit information about him.
Currently top five states - Maharashtra, Andhra Pradesh, Karnataka, Uttar Pradesh and Tamil Nadu contributed to almost 50 per cent of all enquiries for credit.
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State bank of Hyderabad has recently unveiled a new campaign SBH smart salary (SSS) for its salaried
customers.
o It will provide various beneficial offers to the customers like zero balance account, multi option deposits for
automatically investing surplus funds over threshold limit of Rs. 10,000 to earn higher rate of Interest.
o In addition to this it will also offer the facility of overdraft facility up to three month net salary.
o The customers opening account during this campaign can also enjoy the facility of personal accident
insurance cover of Rs. 2 lakh of SBI General Insurance.
HDFC Bank Ltd has opened its branch in Dubai at the International Financial Centre, and will provide wealth
management services to non-resident Indians based in the UAE.
o A bank statement said after Bahrain and Hong Kong, this is HDFC Banks third branch overseas. It also
operates two more representative offices in the UAE at Dubai and Abu Dhabi which will continue to
function.
RBI gave its prediction of GDP growth in the current fiscal is expected to go up to 5.5 per cent from 4.7 per
cent in the last financial year.
o Prior as per the Finance Ministry estimates, GDP growth in the current fiscal is expected be in the range of
5.4 - 5.9 per cent.
August 5
RBIs 3rd bi-monthly policy
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Current
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Reserve Rates CRR
4
SLR
22
Policy Rates
Repo Rate
8
Reverse Repo Rate 7
MSF
9
Bank Rate
9
Rates in June
(in %)
No change
22.5
No change
No change
No change
No change
Highlights:
o SLR cut by 0.50 pc to 22 pc to unlock banking funds.
o Estimates GDP growth at 5.5 pc for current fiscal.
o Targets 8% CPI inflation by Jan 2015, 6% by Jan 2016.
o Lowers banks' SLR holdings in held-to-maturity category by 0.5 pc to 24 pc.
o Next bi-monthly policy statement on September 30.
o Section 24 of the BRA, 1949:
o Every primary (urban) cooperative bank (scheduled/ non-scheduled) and scheduled commercial bank is
required to maintain liquid assets in the form of cash, gold (or) unencumbered approved securities which
should not be less than 25 per cent of the total of its demand and time liabilities (NDTL) in accordance with
the provisions of Section 24 of the Banking Regulation Act, 1949.
o Section 42 of RBI Act, 1934:
Commercial banks, primary (urban) cooperative banks are required to maintain certain amount of cash
reserve and liquid assets. The scheduled primary (urban) cooperative banks are required to maintain
with the Reserve Bank of India an average daily balance, the amount of which should not be less than 5
per cent of their net demand and time liabilities in India in terms of Section 42 of the Reserve Bank of
India Act, 1934.
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August 6
RBI extends the Validity Period of Directions on Mirzapur Urban Co-operative Bank Ltd., Mirzapur.
o The Reserve Bank of India has notified that the validity period of directions imposed on Mirzapur Urban Cooperative Bank Ltd., Mirzapur, Uttar Pradesh as on February 11, 2014 has been extended further as per
modified directive dated July 31, 2014 for a period of one month i.e. from August 12, 2014 to September 11,
2014, subject to review. The other terms and conditions remain unchanged. A copy of the modified
directive notifying the above modification is displayed at the banks premises for information of the public.
Banks Tier - I capital need for 5 years surges to Rs. 20,000 crore: ICRA.
o With the capital requirement of Indian banks likely to go up gradually till 2018 - 19 (FY2019), Tier - I
issuances are likely to increase significantly till that year, according to an ICRA report.
o Tier - I issuances include common Equity and additional Tier - I or AT1. While the AT1 requirement for this
fiscal year 2015 would be around Rs. 20,000 crore, in subsequent years, the annual requirement could be as
high as Rs. 40,000 crore 50,000 crore.
o However, these instruments come with significant risk. The guidelines of the Reserve Bank of India (RBI) on
Basel III introduce stringent loss absorption clauses for hybrid instruments so that loss absorption kicks in
before the public injection of funds.
ICICI Bank launches travel card for students going abroad for studies.
o ICICI Bank, the countrys largest private sector bank, has announced the launch of the ICICI Bank Student
Travel Card, which enables students going abroad for higher studies to take care of their expenses.
o The card offers both students and parents a convenient, safe and hassle-free way to manage their
education-related expenses abroad. While it helps the students pay for expenses such as application fee,
university admission and other course - related fees, hostel fee and day-to-day living expenses, their
parents can reload the card from India. Also, the card allows withdrawal from ATMs across the globe in local
currency.
o The unique feature of the card is that it is bundled with membership of the International Student Identity
Card (ISIC). ISIC is the only internationally accepted proof of full-time student status and offers 40,000
benefits and discounts at 120,000 merchant outlets across 130 countries.
August 7
Third Bi-monthly Monetary Policy Statement 2014 - 15 by RBI, it has been decided to reduce the Statutory
Liquidity Ratio (SLR) of Regional Rural Banks from 22.50 per cent of the Net Demand and Time Liabilities
(NDTL) to 22.0 per cent with effect from the fortnight beginning August 9, 2014.
o RRBs are not eligible for Repo, Reverse Repo & MSF, LAF facilities.
o All Scheduled Commercial Banks (excluding Regional Rural Banks) and Primary Dealers having SGL and
Current Accounts with RBI, Mumbai will be eligible to participate in the Repo auctions.
The RBI has tightened norms for Asset Reconstruction Companies (ARC).
o Asset reconstruction companies (ARCs) will have to pay upfront 15% of the bid value of non-performing
loans, against 5% earlier.
o Also, those planning to buy bad loans will get more time (at least two weeks) to carry out due diligence
before bidding for stressed assets. So far, banks have enjoyed complete discretion in deciding the
timeframe for due diligence.
Total net profit of all public sector banks (PSBs), including SBI fell sharply by 26.8 per cent to Rs. 37,017 crore
for fiscal ended March 2014 over Rs. 50,583 crore in 2012 - 13.
o The Gross NPA of the PSBs at the March 2014 stood at Rs. 2.27 lakh crore.
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Finince Minister: Arun Jaitley.
August 8
The RBI sought comments from public on Draft Guidelines for Implementation of BBPS.
o Bharat Bill Payment System (BPPS) is an anytime anywhere bill payment system. The proposed guidelines
describe the basic requirements of operating the BBPS.
o Bharat Bill Payment System is intended for the implementation of a unified bill payment system across the
country.
o It would enable the customers to pay the bills with the help of agents and getting instant confirmation of
the payment made. School fees, municipal taxes and utility bills payments would become easier now.
o The centralised bill payments infrastructure will consist of two types of entities:
1. Bharat Bill Payment System (BPPS), which will be the standard setting body.
2. Bharat Bill Payment Operating Units (BBPOUs), which will be the authorised operational units.
o Background:
Committee under the chairmanship of Shri G. Padmanabhan, Executive Director, RBI was set up to
study the feasibility of implementation of an electronic GIRO payment system in the country. Based on
the recommendations of the Committee, a Giro Advisory Group (GAG) under the Chairmanship of
Professor Umesh Bellur, IIT Bombay, was constituted with the objective of defining a framework that
enables the creation of pan-India touch points for bill payments by customers in the country
irrespective of the geographical location of the billers.
In its report, the GAG (Umesh Bellur) has recommended a tiered structure for bill payments system in
the country, where the proposed Bharat Bill Payment System (BBPS) will be the authorised standard
setting body and the proposed Bharat Bill Payment Operating Units (BBPOUs) will be the authorised
operational units, working in adherence to the standards set by the BBPS.
o GIRO (or) General Interbank Recurring Order:
The word "giro" is borrowed from Dutch "giro" and/or German "Giro," which are both from Italian
"giro" meaning "circulation of money''.
Giro transfer, is a payment transfer from one bank account to another bank account and instigated by
the payer, not the payee.
August 9
CBI adds additional bribe of Rs. 3.5 crore to Syndicate Bank CMD K. Jain.
o Crores more, in fact, as fresh evidence unearthed by the Central Bureau of Investigation (CBI) indicates Jain
was paid Rs. 3.5 crore by Prakash Industries, one of the companies named in the First Information Report.
o According to the intercepts, the bribe of Rs. 3.5 crore was allegedly paid by Prakash Industries to obtain
further credit from Syndicate Bank despite it defaulting in the repayment of older loans.
o Sources said Prakash Industries had submitted a proposal to Syndicate Bank for sanction of external
commercial borrowings of $20 million for paying back foreign currency convertible bonds, and the bribe of
Rs. 3.5 crore was allegedly paid for this to be cleared.
o The CBI arrested Jain on charges of receiving bribes to extend credit facilities to certain companies. During
raids, the agency seized Rs. 21 lakh in cash, gold worth Rs. 1.68 crore and FDRs worth Rs. 63 lakh from Jain.
o Prior scam for K. Jain:
Which Sources said the alleged bribe of Rs. 50 lakh paid by Bhushan Steel to Jain for not declaring bad
loans of Rs. 134 crore as non-performing assets could be just one of many instalments agreed upon.
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In its FIR, the CBI has alleged that accused Ved Prakash Aggarwal, Chairman of Prakash Industries, and
company director Vipul Aggarwal, were in regular touch with Bansal regarding the clearance of their
proposals by Syndicate Bank.
The agency has alleged that several meetings took place between Bansal and Jain on this issue.
Bansal contacted Jain on July 14 and requested him to expedite the Prakash Industries proposal. The
very next day, the proposal was cleared by Jain, who conveyed the development to Bansal.
A day after the arrest of Bhushan Steel vice chairman in the cash-for-loan case at Syndicate Bank, SBI - a big
lender to the firm - said it would press for an external agency to take over the day-to-day management of the
company.
o Bhattacharya said the bank has an exposure of Rs. 6,000 crore to the steel-maker which is a standard asset
at present.
o The CBI, which arrested Jain, also arrested Bhushan Steel's vice-chairman and managing director Neeraj
Singal.
o The Bhushan Steel plant in Odisha is running well and the lenders do not want to expose their assets to any
difficulties as a result of the imbroglio.
o In the Budget, the government had sounded positive about consolidation in the banking space and Financial
Services Secretary GS Sandhu had said the process will kick-start with a merger within the SBI Group this
fiscal.
August 10
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RBI has eased norms for mortgage guarantee companies (MGC), allowing these firms to use contingency
reserves to make good the losses suffered by the mortgage guarantee holders without the apex bank's
approval.
o Now guarantees provided by MGC may be treated as contingent liabilities, for which credit conversion
factor would be 50 percent.
o The change in the guidelines has been made in the wake of representations received from the industry, and
keeping in view the long-term beneficial impact of development of the mortgage guarantee industry.
o The extant guidelines provided for a lower appropriation to contingency reserves if provision made towards
losses exceeded 35 per cent of the premium or fee earned during a financial year.
A meeting of the Sub Committee of the Financial Stability and Development Council (FSDC) was held in New
Delhi.
o Issues discussed are:
The Sub-Committee reviewed the domestic macro economy and potential risks facing the financial
system. A draft roadmap for creating standards and protocol for setting up account aggregation facility
for financial assets was deliberated in the meeting.
The Sub-Committee reviewed the major decisions made in the union budget and discussed the road for
implementing them. These included one single demat account for all financial assets; introduction of
uniform KYC norms and inter-usability of KYC records across the financial sector; strengthening and
deepening the markets for corporate bond, currency derivatives and interest rate futures; and
participation of FDIs and FIIs in commodity market.
The Sub-Committee also reviewed the functioning of the various Technical Groups which are under its
ambit.
The RBI announced transfer to the Centre its surplus profit of Rs. 52,679 crore (Rs. 526.79 billion), about 60
per cent more than the amount given last year.
Last year, the RBI had transfered its Rs. 33,010 crore (Rs. 330.10 billion) surplus profit to the Centre.
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August 11
ICICI bank is now also the leading bank in the list of share in mobile banking payments in the country. The
bank has managed to gain over Rs. 1000 crore through Mobile banking.
o Reports shown that the total value of transactions across banks in the month of June via the mobile banking
channel was Rs. 3985 crore.
August 12
State bank of India along with its associate bank is coming up with new idea to launch 4300 cash recyclers.
o This is new innovative step that will recycle the currency notes. These cash recyclers will accept and
generate notes after reprocessing them.
o These new cyclers will replace the old ATMs, the bank will set up these new cash recyclers all across the
country by the end of March next year.
o The machines are capable of tracking the counterfeit notes deposited or dispensed. The risk of carrying
daily earnings home for shopkeepers, traders, cabbies, and others will also be minimised. The recyclers will
have the capacity of dispensing and accepting 200 notes at a time. Further the machines will accept the
notes of denominations of 50s, 100s, 500s and 1,000s.
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August 14
Trade deficit rises to $12.22 bn as July

o Exports in July stood at $27.72 billion as compared to $25.83 billion in the same month last year.
o Imports increased by 4.25 per cent year-on-year to $39.95 billion in July. This is the second consecutive
growth in the inbound shipments after remaining in the negative for the past several months.
o Trade deficit of $12.22 billion is one-year high as the previous high was $12.49 billion in July 2013.
o Trade deficit during this period of financial year stood at $45.31 billion as against $59.91 billion in the same
period last year.
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The amount will provide some help to the government, which proposes to bring down the fiscal deficit to
4.1 per cent of GDP this fiscal from 4.5 per cent last year.
o The Reserve Bank follows the July-June accounting year.
PSU banks' profit falls 27% to Rs. 37,000 crore in FY14 from Rs. 50,583 crore in 2012-13.
o The Gross NPA of the PSBs at the March 2014 stood at Rs. 2.27 lakh crore.
o PSBs are banks where a majority stake of more than 50% is held by a government.
o There are a total of 27 PSBs in India.
o [19 Nationalised banks + 6 State bank group (SBI + 5 associates) + 1 IDBI bank (Other Public Sector-Indian
Bank) = 26 PSBs + 1 recent Bhartiya Mahila Bank].
IDFC appointed Ravi Shankar as the head of the proposed bank's financial inclusion and rural business
initiative.
o Shankar, who joins the company from non-bank lender Fullerton India Credit Company, will be heading the
initiative called 'Bharat Bank', a statement from IDFC said.
o He will be responsible for conceptualising and building the rural and inclusion business in the IDFC bank and
will be based at the corporate office in the country's financial capital, it said.
o
Exports
Imports
Goods
(top Software, Petrochemicals, agriculture products, Crude oil, gold and precious stones,
goods traded)
Jewellery, engineering goods, pharmaceuticals, electronics,
engineering
goods,
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August 15
Switzerland amended ''Federal Act'' on International Administrative Assistance in Tax Matters. The Act
governs the assistance to foreign nations in their pursuit of black money allegedly stashed in Swiss banks.
o Switzerland amended the key law under pressure from India and other countries.
o These amendments, which have come into force on 1 August 2014, would allow India and other countries
to make 'group requests' for information about suspected black money hoarders.
o According to one of these amendments, if the foreign authority demonstrates grounds for secrecy regarding
certain case documents, the FTA (Federal Tax Administration) may refuse to allow a person entitled to
appeal to inspect the corresponding files.
o What India Gets?
On the one hand it would allow India and other nations to have information about the hoarder of black
money. On the other hand, the roadblocks thwart Indias attempts to seek information on the so-called
HSBC list, which Switzerland alleges that Indian and other foreign authorities got hold of after a former
bank employee stole data about customers.
The Reserve Bank of India will shortly issue 1000 denomination Banknotes incorporating Rupee symbol, with
'R' inset letter, in the Mahatma Gandhi Series - 2005.
o All the Banknotes in the denomination of 1000 issued by the Bank in the past will continue to be legal
tender.
RBI decreased number of free transactions from non home ATMs allowed to 3 from 5.
o Accordingly, the number of mandated free transactions for savings bank account holders at other bank
ATMs has been reduced from five to three per month. This will apply for transactions done at ATMs located
in six metro centres, namely, Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad which are
well-served in terms of payment infrastructure.
o This reduction will, however, not apply to customers having no-frills/ small/ Basic Savings Bank Deposit
Account (BSBDA) type of accounts as well as for transactions done by savings bank account holders at ATMs
situated outside these six metro centres. Banks are also free to offer free transactions above this mandated
limit.
o Further, taking into account the scope for cross-subsidisation and with a view to ensuring more
transparency in the pricing of these transactions, banks have been advised to provide their savings bank
account holders with at least five free transactions per month at their own ATMs.
o RBI has also asked the bank to charge the customer for more than five transactions even from the home
branch ATM.
o Beyond this, banks may decide to levy transaction charges (not exceeding Rs. 20/- plus applicable taxes per
transaction) which are decided in a transparent manner.
o Network:
The number of Automated Teller Machines (ATMs), which stood at a little over 27,000 as at end-March
2007, has increased to over 1.6 lakh across the country by end-March 2014.
The Point-of-Sale (POS) infrastructure has increased from 3.2 lakh to 10.65 lakh terminals between
end-March 2007 and end-March 2014. It is, however, observed that the development of other
payment mechanisms and related infrastructure is more visible in metropolitan areas in the country.
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chemicals, plastics, coals

China
European Union
UAE
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Main partners
textiles
European Union
USA
UAE
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August 16
Central government Launched ''Pradhan Mantri Jan Dhan'' (PMJD) scheme to promote financial inclusion.
o The facility of a debit card and an insurance cover of Rs. 1 lakh.
o The Union Cabinet has already cleared the two-phase financial inclusion scheme under which bank accounts
will be opened for 15 crore poor persons with an overdraft facility of Rs. 5,000 and accident insurance of Rs.
1 lakh.
o The scheme, to be pushed by the government in a mission mode, seeks to provide two accounts to 7.5 crore
identified households by August 2018.
The Union Government decided to appoint former RBI governor Bimal Jalan as the head of the Expenditure
Management Commission.
o He would be tasked to suggest ways for managing public finances by reducing food, fertiliser and oil
subsidies to include fiscal deficit.
o About Expenditure Management Commission (EMC):
The purpose of setting up the commission is to cut-off the spending and review government
expenditure to get maximum output.
The Commission will submit its interim report before the Budget of 2015 - 16 and its final report before
the Budget of 2016 - 17.
August 17
HDFC Bank is India's most valuable brand among service sector.

o The first edition of the BrandZ Top 50 Most Valuable Indian Brands reported HDFC bank as the Indias most
valuable brand. HDFC bank has even surpassed major telecom company Airtel with a brand value of 9.4
billion dollars.
o ICICI bank and SBI are the two other banks in the top list of most valuable brands with the brand value of
8.53 billion dollars and 6.8 billion dollars respectively.
o The 50 brands belonged to 13 different categories, of which 17 are multinational corporations (MNCs), 26
are private Indian brands and seven are state-owned brands.
o The other brands in the top 10 include Airtel, State Bank of India, ICICI Bank, Bajaj Auto, Asian Paints, Hero
MotoCorp, Idea, Kotak Mahindra Bank and Reliance Communications.
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HDFC launches first of kind ''ForexPlus card''.

o In a first of its kind initiative, 'ForexPlus' card exclusive for people making the Haj and Umrah pilgrimages.
o Pilgrims can use this card to make all payments during the pilgrimage in a convenient and secure manner,
and avoid carrying Saudi Riyals in cash, which might get misplaced.
o The ForexPlus card can be used to withdraw money from ATMs as well.
o The Forex card will be immediately handed over to the customer over the counter, and will be activated
within 4 hours after submission of all the documents.
o The card comes also with a back-up card which can be activated in case of loss or damage of the primary
card.
o Through this initiative the bank is reaching out to over 1.7 lakh pilgrims across India.
Headquarters: Mumbai, India.
Key people: Aditya Puri (MD).
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August 19
The Security Council approved the addition of six individuals to the Al-Qaida Sanctions Committees list of
individuals and entities subject to the targeted financial sanctions and the arms embargo set out in paragraph
1 of Security Council resolution 2161 (2014), adopted under Chapter VII of the Charter of the United Nations.
o Unlawful Activities (Prevention) Act (UAPA, 1967):
Unlawful Activities (Prevention) Act or Sua Act is an Act to provide for the more effective prevention of
certain unlawful activities of individuals and associations and for matters connected therewith.
ICICI Bank becomes first to launches EMI on debit cards scheme.
o ICICI Bank, the countrys largest private sector bank, announced the launch of EMI (Equated Monthly
Instalments) facility on debit cards to enable its customers to convert high value transactions into easy
instalments.
To begin with, ICICI Bank has tied up with Samsung India to offer this facility across 9,000 stores in the
country.
o Who is eligible for this facility?
All customers having ICICI Bank savings account and a fixed deposit of minimum Rs. 10,000 linked to
the same account can avail of this facility.
o How different is this from EMI on credit cards?
A customer having a debit card, which comes along with a savings bank account, needs to have a fixed
deposit linked to his savings bank account to avail of this facility while credit cardholders can avail EMI
if they have eligible credit card in hand.
RBI tightens rules for lending against shares by NBFCs.
o Under the new rules, NBFCs will have to maintain a loan to value (LTV) ratio of 50 per cent all along on loans
given against shares.
o RBI says companies can accept only group - I securities as collateral for loans of value more than Rs. 5 lakh.
o NBFCs with asset size of Rs. 100 crore and above will have to report online to stock exchanges about shares
pledged with them by borrowers for availing loans.
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The IDBI Bank has donated Rs. 9 crore towards the building of 300 gender-segregated toilets in schools close
to the banks branches in rural and semi-urban areas.
o This was part of its CSR initative, lauding the national mission which was sure to go a long way to improve
health and sanitation facilities for rural India and encourage the girl childs education.
o This is Banks contribution to the ''Swachh Bharat Mission''
o Chairman: M.S. Raghavan.
RBI sets up Working Group on Taxation Practices for Financial Instruments in India.
o With a view to promoting private financial savings, the Reserve Bank of India has constituted a Working
Group to study various issues relating to taxation of financial instruments in India and suggest
rationalisation.
o Head of the committee: Smt. Balbir Kaur.
The RBI has defined and issued a list of special characters that are allowed and a list of characters that are not
allowed in RTGS (real time gross settlement) messages for bank employs for their operations.
o This is in order to have uniformity in usage of special characters by Indian banking industry for seamless
processing of RTGS messages to NG-RTGS.
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August 21
Bangladesh has decided to join the newly formed BRICS Bank, an initiative of the world's five emerging
economies - Brazil, Russia, India, China and South Africa.
o Bangladesh Finance Minister: A.M.A. Muhith.
August 22
Syndicate Bank has organized a drive to endorse and encourage zero balance accounts. The bank wanted
more people to open up such accounts.
o After six months of opening the account customers are also provided with the overdraft facility of Rs. 5,000.
In addition to this account holders are also provided with the free annual insurance cover worth of Rs. 1
lakh.
o Head: Shri M Anjaneya Prasad and Shri T.K. Srivastava.
o Headquarters: Manipal, Karnataka.
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August 23
The present government's effort to expedite major reforms and their successful implementation could push
India's gross domestic product (GDP) to over $4.5 trillion by FY20 according to a Dun & Bradstreet (D&B)
report
o According to a Dun & Bradstreet (D&B) report, India is likely to achieve an average growth rate of around
7.5 per cent during FY15-FY20.
August 24
The RBI said it would conduct more frequent term repos but retained the overall borrowing limit for lenders,
in a bid to make borrowing more flexible without injecting additional liquidity into markets.
o The RBI said it would conduct 14-day term repo auctions four times during a two-weekly reporting cycle, or
every Tuesday and Friday, from Sept 5.
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All RTGS member participants are advised to strictly follow these lists for usage of special characters while
transmitting RTGS messages.
o The Next Generation Real Time Gross Settlement (NG-RTGS) System has several advanced features, such as,
liquidity management facility, extensible markup language (XML) based messaging system conforming to
ISO 20022 and real time information and transaction monitoring and control systems.
For restructuring the Food Corporation of India (FCI), the government announced setting up a high-level
committee (HLC) to suggest ways to restructure the grain procurement agency.
o Headed by Shanta Kumar.
o The panel will suggest measures for overall improvement in management of food grains by FCI. It will study
various models of restructuring or unbundling of FCI and suggest a best suited model to improve its
operational efficiency and financial management
o It will also suggest a way for strengthening and integration of supply chain of foodgrains and also
recommend cost-effective storage models for grains.
o Minister of food, public distribution and consumer affairs: Ram Vilas Paswan.
o
August 28
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The Delhi High Court set aside a Punjab National Bank (PNB) notice, which said that Kingfisher airlines and its
guarantors, United Breweries (UBHL) and Vijay Mallya, would be deemed as wilful defaulters in the event of
no reply to the bank's notice within seven days from August 21.
o The public sector bank had issued the notice alleging the carrier has wilfully defaulted in payment of
outstanding dues of more than Rs. 770 crore. PNB submitted before the court that currently dues to be
recovered from the airlines are more than Rs. 800 crore.
August 29
Prime Minister Narendra Modi launched his government's mega scheme 'Jan Dhan Yojana', declaring that it
was aimed at eradicating financial untouchability by providing bank accounts to the poor.
o On the inaugural day, a record 1.5 crore bank accounts were opened across the country, the largest such
exercise on a single day possibly anywhere in the world.
o Unveiling the scheme within 100 days of forming the new government, Modi said it will cover 7.5 crore
people by January 26, 2015.
o Benefits in Jan Dhan Yojana
Zero-balance bank account to poor.
RuPay debit card.
Life insurance cover: Rs. 30,000.
Accidental insurance cover: Rs. 1 lakh.
Overdraft facility: Rs. 5,000.
August 30
ICICI bank has unveiled two new mobile banking apps i-loan and i-track.
o The bank has introduced i-loan and i-track two apps that will enable the customer to access and detect
the loan account details.
To access these apps customer simply needs to download the ICICI Bank iLoans application on his mobile and
activate. Through these app customers can hassle free within seconds can track their dispatches like
statements, letters and cheque books by their account number. All the loan related help will on the phone.
IDBI bank tied up with UNICEF to provide hygienic facilities in UP & Maharashtra.
o The bank has started working to provide the safe and fresh drinking water and sanitation facility to 80,000
children in 400 schools and Anganwadi centres in the states of Uttar Pradesh and Maharashtra.
o The initiative is named as ''Model WASH'' in Schools.
o As a part of the CSR responsibility the bank has taken up this initiative. The bank has invested a sum of Rs.
2.7 crore for this initiative. Through this measure, many students will get fresh water and clean sanitation
facilities. They will get access to the hygienic facilities.
o Prior to this, under CSR IDBI to construct 300 gender-segregated toilets in schools across India, primarily in
rural areas.
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SBI, JBIC of Japan signed a ''dual-currency'' loan agreement of $152 million (about Rs. 912 crore).
o The loan is co-financed with the Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU) amounting to 13.5 billion
Japanese Yen ($135 million) and $21 million approximately. The total co-financing amount came to $152
million (about Rs. 927 crore).
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This credit line will be utilised by Meja Urja Nigam Pvt Ltd (MUNPL) to finance the procurement of steam
turbine generator equipment from Japanese company Toshiba Corporation and its subsidiary in India
Toshiba JSW Turbines & Generator Ltd to construct a supercritical pressure coal-fired power plant
(660MWx2 units) in Meja, Uttar Pradesh.
o MUNPL is a joint venture, with equal investments from NTPC Ltd and UP Rajya Vidyut Utpadan Nigam Ltd.
o About BTMU:
The Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU) is the largest bank in Japan, which was established on
January 1, 2006, with the merger of the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd.
o About JBIC:
The Japan Bank for International Cooperation (JBIC), is a Japanese public financial institution and
export credit agency.
o JBIC is the international wing of the Japan Finance Corporation (JFC).
Nippon Life (of Japan) to partner with Reliance Group for a proposed Reliance Bank and launched two funds.
o These two India-focussed funds will direct investments by Japanese retail investors into Indian equity and
bond markets. This was stated by Nippon and Reliance Life in a joint statement.
A two-day international seminar on 'Blue Economy' begins in Dhaka to discuss better ways to explore the
resources of the Bay of Bengal.
o Representatives from 20 countries including Myanmar, Srilanka, Thailand, Indonesia, Australia and Japan
besides experts on marine resources are expected to participate and share experiences.
o The aim is to establish links with countries and organisations working in ocean research and resources to
ensure the protection and sustainable utilization of the resources of the Bay of Bengal.
o
September 2014
September 1
RBI issued guidelines on implementation of Basel - III Capital Regulations.

o The revised and final guidelines for raising non-equity regulatory capital instruments by banks under the
stringent Basel III framework under which lenders can issue tier 2 capital with a minimum original
maturity of 5 years as against 10 years now.
o It further, banks can issue tier 2 debt capital instruments to retail investors, subject to the board
approval.
o Banks may now additional tier 1 capital instrument with the principal loss absorption through either
conversion into common shares or write-down mechanism (temporary or permanent) which allocates
losses to the instruments.
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Comparison of Capital Requirements under Basel - II and Basel III :
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Requirements
Minimum Ratio of Total Capital to RWAs
Minimum Ratio of Common Equity to RWAs
Tier I capital to RWAs
Core Tier I capital to RWAs
Minimum Liquidity Coverage Ratio
Under Basel-II
8%
2%
4%
2%
None
Under Basel-III
10.50%
4.50% to 7.00%
6.00%
5.00%
60% by January 2015
70% by January 2016
80% by January 2017
90% by January 2018
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100% by January 2019

Timeline for full implementation of norms
31 March 2009 March 31, 2019
RBI asks banks to set timeline to loans processing.
o To expedite credit decision, the RBI asked banks to set a timeline for disposal of loan proposals but did not
ascribe a particular time frame for the same.
o The move came after RBI noticed that there have been inordinate delays by banks to convey credit
decisions, leading to delays in project implementation and also that banks must put in place the required
system within 30 days.
o But, RBI gave freedom to banks to decide each banks time by them self.
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September 2
The balance of payments recorded a surplus for a third straight quarter in April - June.
o The balance of payments registered a surplus of $11.2 billion in the first quarter up from $7.1 billion in the
last quarter of the FY14.
September 3
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RBI cancels Licence of The Merchants Co-operative Bank Ltd., Dist. Dhule, Maharashtra.
o The Reserve Bank of India has, on August 27, 2014, cancelled the licence of The Merchants Co-operative
Bank Ltd., Dist. Dhule, Maharashtra to carry on banking business under Section 22 of the Banking Regulation
Act, 1949 (As applicable to Co-operative Societies) read with Section 56 of Banking Regulation Act, 1949.
o As such, the bank is forthwith precluded from transacting the business of 'banking' as defined in Section
5(b) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) including
acceptance/repayment of deposits.
RBI curbs banking operations of Choundeshwari Sahakari Bank.
o The RBI has issued directions to The Choundeshwari Sahakari Bank Ltd of Kolhapur, Maharashtra that will
require the bank to seek prior approval for its banking business.
o RBI said In particular, depositors of the bank will be able to withdraw a sum not exceeding Rs. 1,000/(Rupees one thousand only) of the total balance held in every savings bank or current account or any other
deposit account by whatever name called, subject to the conditions stipulated in the RBI Directions.
o As per the directions a copy of which is displayed on the bank's premises for perusal by interested members
of the public, the bank, from the close of business on August 30, 2014, cannot, without prior approval in
writing from the RBI.
1. Grant or renew any loans and advances,
2. Make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits,
3. Disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or
otherwise,
4. Enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its
properties or assets except as notified in the RBI Directions dated August 28, 2014.
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September 5
Axis Bank got featured in Forbes Asia's FAB 50 list.

o Axis Bank which is India's third largest private bank has been featured in Forbes Asia's FAB 50 list of 2014.
This is the fourth time that Axis Bank has been featured and is amongst the only two banks in this renowned
list.
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The FAB 50 comprises of the best of Asia-Pacific's biggest publicly traded companies, chosen from a pool of
1,300 companies in the region that have at least USD 3 billion in market cap or annual revenue.
In January this year, Axis Bank became India's first private sector bank to open a branch in China.
September 6
SBI launched its first ''multi-currency international debit card''.

o The bank in association with the master card has launched this debit card that will allow the customers to
make the payments of various currencies through a single card.
o The deputy managing director of the bank stated that through this card the customer can make the
payments in four currencies US dollar, euro, Great Britain pound and Singapore dollar. Later on more
currencies will be added to the card. The card also offers the facility of loading currencies of choice at SBIs
branch network.
o The card will issued to customers levying Rs. 100 as the annual fee of the card.
o The maximum loaded in the card would be $200.
o This is a very beneficial card for the corporate, professional and the students travelling abroad for their
studies. Currently the customer can avail this card from 100 branches of SBI in the four major cities.
The cooperative banks will now provide CBS.
o The cooperative banks will now also provide the ''Core banking Services'' like such as any branch banking,
NEFT, RTGS etc.
o 201 state and district level Central Cooperative Banks with 6914 branches have joined this plan of NABARD.
o With the aim of making banking transactions faster and baking more efficient the NABARD has decided to
bring all the cooperative banks on the CBS platform.
o With CBS, the cooperative banks are now in a position to offer the latest banking products to their
customers.
o Through this the banks will be able deliver more efficient banking services allowing them to focus on serving
customers better this will also help the banks to save money and work in an effective manner.
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September 7
RBI has established a supervisory college for the Axis bank in Mumbai.
o In order to maintain and improve the understanding of the risk profile of the banking group the RBI has set
up this college.
o It will also look towards the enhancement of the mutual trust and co-operation among the supervisors.
o Through these supervisory colleges the RBI being the Apex bank of the country wants the Indian banks to
work in enhanced way in the foreign countries.
o These colleges are especially set up for the banks that have well established presence and working in the
abroad. The RBI has already established such banks for SBI, ICICI bank.
o It is the responsibility of RBI to monitor that exchange of supervisory information and perceptions becomes
easy. These colleges are supposed to facilitate effective supervision of internationally active banks.
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India is the third most affected country in terms of Online banking frauds.
o India ranks third after Japan and US.
o Due to the rapidly increasing use of internet banking the crimes involving online banking frauds are rising
heavily.
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September 9
The Reserve Bank of India will adopt a common recruitment system from next year to tap talent for its core
functions. The larger objective is to strengthen itself in the changing economic scenario.
o ''Starting from 2015, there shall be common recruitment for all core functions of the bank'', the RBI said in
an internal report on HR initiatives.
o At present, it recruits officers and support staff for core and non-core functions through different
examinations, such as the Grade B officers level exam. The RBI now has about 17,000 employees.
o The proposed common recruitment will not only cover traditional areas such as economics and statistics but
also include niche skills, such as risk management, financial markets trading, accounting, legal, human
resources management and counselling.
o The officers that are recruited will have a common seniority. In effect, it will be like the common cadre
under the All India Services of the Union Public Service Commission.
RBI sets 70 years as upper age limit for MD, CEO of private banks.
o Within the overall limit of 70 years, individual banks boards are free to prescribe a lower retirement age for
WTDs, including MD & CEO, as an internal policy, RBI said in a circular (which was previously 21 years).
o Background:
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According to the data of April to June 2014, it has been noticed that online malware has affected India
severely. Within a period of month India posed for cybercriminal expansion with an average of 2.5 million
malware detection.
o The fraudsters find a new ways and techniques to continue their attacks. On the other hand it is also
noticed that near about 33%of malicious apps were downloaded.
o More than 10 millions of attacks have been observed as per the record of July. The lending institutions as
well as the customers need to be strictly alert in order to protect themselves from these frauds.
SBI has rolled out two new savings product for the minors 'Pehla Kadam' and 'Pehli Udaan'.
o Pehla Kadam is a saving account that children can open jointly with their parents.
o Pehli Udaan can be singly operated by the minors up to the age of 10 years. These products will offer
several facilities to the holder.
o Both the products offer gamut of facilities including internet banking with limited transaction facilities such
as bill payment, opening of fixed deposits, recurring deposits.
o About banking services to miners above 10 years
In May 2014, RBI said the children above 10 yrs can independently open and operate the account. In
order to boost the financial inclusion RBI ordered banks to allow minors to open their account
independently.
All minors can now open a savings/fixed/recurring bank deposit account through either his/her natural
guardian or legally appointed guardian.
Before this, banks allowed minors to operate bank accounts only along with a parent or a guardian. All
children and teenagers below the age of 18 are considered minors under current rules.
RBI has also asked the bank to provide more banking facilities like ATM card, internet banking to the
minors but should not allow these accounts to be overdrawn and these accounts should always remain
in credit.
Banks may keeping in view their risk management systems, fix limits in terms of age and amount up to
which minors may be allowed to operate the deposit accounts independently.
But banks will not charge any penalty on the non operative accounts.
o
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September 10
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SBI approached RBI to roll out contactless card.

o SBI has approached the RBI with the proposal to roll out a PIN free debit card.
o The bank wanted to launch a card through which the customers can make the transactions without entering
the PIN for small transactions (less than Rs. 2000).
o Before making this plan functional the bank is testing such contactless card at the metro stations in Mumbai
and Chennai. Through this the bank wants to eliminate the need of entering the PIN for making small
transactions of up to Rs. 2,000. The Apex bank has yet to approve this proposal.
o Current norms:
o Currently to use the card for any purpose the customer is required to punch the PIN, bank wanted that for
the small transactions i.e. for the limit up to Rs. 2,000 the entering of PIN to use the card must be abolished.
RBI established a new financial literacy gallery.
o With the aim to maximize the awareness on finance and banking, the Reserve bank of India has established
a permanent gallery that will spread awareness on financial literacy in Mumbai. The gallery is open for the
common people.
o It will be informing the people regarding the fundamentals of banking like purpose of savings, tips for
secure banking, benefits of fixed deposits, recurring deposits etc. The people will be guided through the
digital display and audio visual facility.
o This an innovative measure taken by the apex bank in the favor the people that will assist to enhance the
financial literacy among the people. The RBI is also offering a three month internship for aspiring post
graduates of finance and economics with a monthly stipend of Rs. 12,500.
Treatment of No-frills accounts opened for credit of Scholarship.
o As directed by the Bombay High Court, RRBs and State/ Central Cooperative Banks are hereby advised to
ensure that accounts of all student beneficiaries under the various Central/ State Government Scholarship
Schemes are free from restrictions of 'minimum balance' and 'total credit limit'.
o Background:
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As per the Companies Act, 2013 prescribes that "no company shall appoint or continue the employment of
any person as Managing Director, Whole Time Director or Manager who is below the age of 21 years or has
attained the age of 70 years''.
IDBI Bank initiated its first e-lounge in Mumbai.
o This e-lounge will enhance the services offered to the customers. With more ease now the customers can
make the banking transactions.
o Services offered in E-lounge:
o The e-lounge will offer the facility of ATM, automated pass book printing, Transact terminal for various Card
and Net Banking holders to view balance, make a funds transfer, pay bills and recharge and much more.
o In addition to this the bank reported that the lounge will also offer the facility of LED screens allowing the
customers to get the details of the Interest rates, products rates from the screen.
Some Indias bank branches may face closure in UK.
o Recently it has been reported that various branches of Indian bank may face closure in U.K. Because of the
global crises in England the Bank of England's Prudential Regulatory Authority (PRA), responsible for
supervising individual banks, stated that they may ask some of the Indian branches to shut down.
o In order to curb with this global crisis in the economy the Indian Banks branches may face closure over
there. The Indian banks will either have to shut down their branches or they have to convert them
completely from branch status to UK subsidiary.
o
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September 11
Bajaj Finance applied for dedicated housing finance company to National-Housing-Bank.

o Bajaj Finance, the non-banking lender, a housing finance company as a wholly-owned subsidiary and will
now be applying to the sector regulator National Housing Bank (NHB) for a licence.
o The company, which is headquartered in Pune, already has a presence in the mortgage space and nearly 40
per cent of its Rs. 27,000 crore book is mortgage products, he said, adding that there were many benefits
due to which the company had decided to have a dedicated company.
o NBH is solo authority to give permission for HFC.
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Bombay High Court has brought to our notice that banks fix a limit on total credits in zero balance accounts
opened for students studying in primary, secondary/ higher secondary schools and technical institutions.
o Resultantly, in cases where scholarship amounts exceed the credit limit, banks do not allow the credit and
return the amount to the disbursement account of the Government.
o Further, in some cases banks are reported to have closed zero balance accounts unilaterally without
intimating student beneficiaries concerned. Instances of banks refusing to open zero balance account for
students have also been brought to our notice.
RBI has revised the guidelines on wilful defaulters making them tighter.
o As per the revised guidelines, the bankers can classify the guarantor group firms and management as wilful
defaulters.
o The guarantor group companies can be reckoned as wilful defaulters, in cases where guarantees furnished
by the companies within the Group on behalf of the wilfully defaulting units are not honoured when
invoked by the banks/ FIs.
o The banker will be able to proceed against the guarantor/ surety even without exhausting the remedies
against the principal debtor, when a default is made in making repayment by the principal debtor.
o Where a banker has made a claim on the guarantor on account of the default made by the principal debtor,
the liability of the guarantor is immediate. In this case said guarantor refuses to comply with the demand
made by the creditor/ banker, despite having sufficient means to make payment of the dues, such
guarantor would also be treated as a wilful defaulter.
o However, the revised guidelines applies only prospectively and not to cases where guarantees were taken
prior to this circular. Banks/ FIs may ensure that this position is made known to all prospective guarantors at
the time of accepting guarantees.
ICICI Bank launches Card-less Cash Withdrawal scheme.
o ICICI Bank launched a facility under which an account holder with it can transfer money to a mobile phone
user in the country even without the latter having an account with any bank.
o How to send?
o A customer having a savings account with the country's largest private lender can initiate a fund transfer
using online banking by giving only the mobile number and address of the beneficiary.
o How to receive funds?
o A secure six-digit code gets sent to the mobile number of the beneficiary, who can withdraw the amount
from any of the bank's ATMs, using that number.
o The money has to be withdrawn within two days of the transfer.
o The beneficiary need not have an account with any bank can also use this scheme.
o
September 12
40
SBI chief Arundhati Bhattacharya finds place in Bloomberg's '50 Most Influential' list.
o Bhattacharya, who is the only Indian woman to be present in the list, is featured in the 'bankers' category.
o The final list consists of 10 people in each of the five categories-money managers, thinkers, corporate
power brokers, bankers and policymakers.
SEBI likely to be dragged to court for alleged irregularities in Bank of Rajasthan case.
o Alleging major irregularities in the order passed by the Securities and Exchange Board of India (Sebi) in the
Bank of Rajasthan (BoR) case, some minority shareholders of the bank have decided to approach the
Bombay High Court (HC) for relief.
o Alleging that senior Sebi officials, including chairman U.K. Sinha and chief vigilance officer (CVO) R.K.
Padmanabhan, showed favour to BoR promoters, shareholders Rajesh Agarwal and Vijay Garg, backed by
some 200-odd minority shareholders.
September 13
State Bank of India, SBI, celebrated 150 years of its operations in Sri Lanka at a glittering ceremony Friday
evening. Addressing a gathering in Colombo, SBI Managing Director Krishna Kumar reaffirmed the bank's
commitment to partner in Sri Lankas efforts in developing its economy.
o Sri Lankas Central Bank Chief thanked SBI for believing in Sri Lanka and investing money and skill in
development of the country.
September 14
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HDFC bank has planned to issue the debit card PIN to the customers through SMS.
o With the aim of being eco friendly the bank wanted to save paper and instead of sending PIN of the debit
cards through post it will be send through the SMS.
o The new PIN issued over SMS is named as 'Green PIN'. The green PIN will be issued to the customer at a
time and location most convenient to them.
o About Green PIN:
Basically green PIN is a one time generated password that will be sent to the customer registered
mobile number.
TATA group is preparing to establish 15,000 new ATMs in the country in coming few years.
o 67% of the ATMs will be set up in rural areas.
o The TATA group has already established 2,000 WLAs across the 18 states in the country and has received an
overwhelming response from the customers.
o About white labelled ATMs:
White-label ATMs are similar to other ATMs in that they can be used by any domestic debit, credit or
prepaid cardholder to withdraw cash, make a balance inquiry, change the personal identification
number or ask for mini statements.
These entities have a mandate to deploy 67% of ATMs in rural locations (tier III-VI) and 33% in urban
locations (tier I and II cities).
White-label ATM operators need a sponsor bank to operate the machines. According to RBI rules,
these sponsor banks will be liable to settle transactions and maintain cash at these ATMs. Maintenance
and servicing will be the white-label ATM operators job.
Charges for customers remain the same as those levied by a card-issuing bank. So, the first five
transactions in a month are free at these ATMs too. The card issuing bank will pay the interchange fee
for the free transactions, but will charge you for anything beyond that limit.
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WLAs in country include
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BTI Payments Private Limited

Bangalore
Srei Infrastructure Finance Limited Kolkata
RiddiSiddhi Bullions Limited
Mumbai
This new three are in addition to the four entities already authorised to operate as WLAs namely
Tata Communications Payment Solutions

Mumbai
Vakrangee Ltd
Mumbai
Prizm Payment Services Pvt. Ltd
Chennai
Muthoot Finance Limited
Kochi
Important Note : In June 2012, the RBI has issued policy guidelines permitting NBFCs entities to set up
and operate WLAs. Prior to this, only banks were permitted to set up and operate ATMs in the country.
September 15
MCX-SX gets conditional one-year renewal; SEBI seeks business plan.

o MCX Stock Exchange on got a one-year conditional renewal to function as a bourse and regulator SEBI asked
it to submit a long-term sustainable business plan and take other remedial actions.
o Besides, the exchange would not be allowed to introduce any new contract till it meets minimum networth
requirement of Rs. 100 crore, for which it has been given three-months time.
o Issue regarding Licence
The current recognition of MCX-SX, which was set up by Jignesh Shah-led Financial Technologies
Group, expired on 15-7-2014, but SEBI has now decided to extend it for a period of one year,
commencing September 15 and ending on September 15, 2015.
o MCX Stock Exchange
Started by: Thomas Mathew.
Chairman: Thomas Mathew.
Started in: 2008.
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September 16
India's export growth slips to 2.35 % at 26.95 billion dollars in August.

o India's export growth slipped to 2.35 percent at 26.95 billion dollars in August, pushing up trade deficit to
10.83 billion dollars.
o Gold imports jumped to 2.03 billion dollars in August compared to 738.7 million dollars in the same month
last year.
o According to the Ministry of Commerce and Industry's data, overall imports grew 2.08 percent to 37.79
billion dollars.
September 17
Allahabad Bank was awarded the second prize in ''region 'C''' banks for the year 2012 - 13 under the Indira
Gandhi Rajbhasha Shield Scheme of Department of Official Language, Ministry of Home Affairs.
o According to a release issued by Allahabad Bank, its Chairman and Managing Director, Rakesh Sethi,
received the shield from the President, Pranab Mukherjee, at a function help in the Rashtrapati Bhavan on
September 14.
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September 18
SBH bank has introduced a new scheme for the borrowers whose accounts have become NPAs due to
payment failures.
o State bank of Hyderabad stated that borrowers who fail to repay the interest, instalment or both can now
easily make their account operative with the SBH new One time Settlement Scheme.
o The customers can avail this scheme till the month of September. To avail the scheme the borrower need to
contact the respective branch. They will also be provided with some concession under compromise
settlement.
UCO bank has entered in to partnership with bank bazaar.com.
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Allahabad Bank is celebrating the month of September as Hindi month.

Headquarters: Kolkata.
Chairman: Rakesh Sethi.
RBI asks banks to roll out POS machines for debit cards.
o Reserve Bank of India (RBI) said that the central bank is mulling linking the debit card issuances to the
number of point of sale (POS) machines it puts up at merchant establishments.
o In comments that came in the midst of a massive account opening campaign launched by banks, under the
'PM Jan Dhan Yojana', Khan said if there is not a commensurate increase in the POS terminals, the usage of
cash will grow.
RBI Dy. Governor white label POS terminals as future plans.
o Like in the case of automated teller machines (ATMs), where the RBI allowed private, non-bank players to
install the machines called as the White Label ATMs, the central bank is also mulling to allow 'white label
POS terminals.
Federal Bank announced new savings scheme for children.
o SBI, Federal bank has rolled out a new savings schemes for the children below 18 yrs.
o The bank has introduced the savings scheme for minors named 'Young Champs'. With the aim to develop
the savings habit in children banks are introducing these new schemes.
o Both Indian as well as NRI customers below the age of 18 yrs can avail this scheme. Children can open and
operate this account on their own.
o They will be provided with the facility of debit card along with the spent limit of Rs. 2,500. The net banking,
SMS alerts, fund transfers will be from parents account.
CCI rejects complaint against IRDA.
o Fair trade watchdog CCI has rejected charges that insurance regulator Irda's rules, which grant of corporate
agency license to banks to sell insurance products, are anti-competitive.
o The issue of abuse of dominance by IRDA does not arise and no case of contravention of the provisions of
the (Competition) Act is made out against IRDA and the information is ordered to be closed forthwith.
o Background:
A complaint filed with the Commission had alleged that banks in insurance retailing sector were
imposing unfair and discriminatory conditions on financed clients to purchase insurance product from
them, indulging in predatory pricing, restricting and denying market access to independent insurance
agents, among others.
As a result, the complainant had asked the fair trade watchdog to pass directions to Insurance
Regulatory and Development Authority (IRDA) to repeal the regulation.
Finally, CCI noted in the case that IRDA was discharging its regulatory and statutory mandate and did
not fall within the purview of Competition norms.
o
At the headquarters of the bank general manager of the retail banking of bank signed the agreement with
the managing director of the Bank Bazar.com. Through this tie up the bank will enhance its online selling of
its retail banking products UCO home loans and UCO car loans.
About Bank Bazaar:
Bankbazar.com is a reputed online portal with 1.7 million visitors per month. This online marketplace
can help the bank to increase its online sale. Bank expects to see its home loan and car loan portfolio to
grow by 2000 applications a month through Bank Bazaar.
September 19
The Reserve Bank of India (RBI) proposed to segregate the post of Chairman and Managing Director (CMD) of
Public Sector Undertaking (PSU) banks.
o It also proposed a separate committee for appointment of directors on the board of PSU banks.
o These proposals are a part of corporate governance reforms in PSU banks and are based on the
recommendations of various committees including the P.J. Nayak Committee recommendations.
o At present, the post of CMD in PSU banks is vested with one person only. As a result CMDs of PSU banks
enjoy absolute power and often dominate the board during their tenure.
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RBI has asked bank to launch more number of Point of sales machine at the merchant establishment.
o RBI is thinking to connect the issuance of Debit cards with the establishment of POS machines.
o RBI stated that under PMJDY, banks are creating millions of new savings account in turn millions of new
debit card will get issued, so it is necessary to create equivalent number of new POS else it might lead to the
increase in the use of cash.
o These days use of electronic cash is high on demand therefore the card acceptance infrastructure need to
be created. Some banks are putting up new POS machines. However RBI has not finalized this decision but
the bank is mulling over this thought.
o Background:
According to the reports currently we have 1.1 million POS machines operational in the country at
present, and even within those, there are some which do not accept other banks' debit cards.
With the aim to increase the POS machines it is expected that similar to the white label ATMs RBI may
come up with the concept of White label POS.
A new portal- e-integration in bancassurance launched by Canara, HSBC, oriental Bank of commerce.
o Private insurance Companies Canara, HSBC, Oriental Bank of Commerce Life Insurance propelled
CHOICeNET portal. This portal is the part of banassurance.
o CHOICeNet is an innovative portal launched to reach out the customers of the Canara Bank and OBC. This
portal will facilitate bank provide end-to-end information for their customers' life insurance policies.
o About portal:
Through this portal the bank employees will provide the information for their user life insurance
policies.
This new portal launched by the company is embedded with the partner banks' intranet. Through this
the insurance company will easily check the information of insurance policy details and will also enable
them to track the progress of applications. This initiative will increase the trust of the customers on the
bank.
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September 22
EPFOs plan to provide UAN to its customers will be launched on 16th October, 2014.
o The universal account number (UAN) will assist the subscribers to track the latest details of their accounts
along with the downloading facility and collation of pensionable service.
o About UAN:
This UAN will abolish the need for the customers to apply again in case they change their job. Their
account number will be universally acceptable and portable. The EPFO is in the process of making UAN
operational for its 4.17 crore contributing subscribers by October 15.
Along with this the govt. has decided to launch unified web portal LIN (Labour Identification Number)
for simplifying business regulations and bringing in transparency. The LIN and UAN both will be
launched on 16 the October, 2014.
V.G. Mathew is appointed as new CEO of South Indian Bank.
o The Reserve Bank of India (RBI) approved the appointment of V.G. Mathew as Managing Director (MD) and
Chief Executive Officer (CEO) of Kerala-based South Indian Bank Ltd.
o V.G. Mathew is appointed for a period of three years with effect from 1 October 2014. He will replace V.A.
Joseph who will retire on 30 September 2014 after serving the bank for 12 years.
o His appointment was made under the Section 35B of the Banking Regulation Act 1949.
o Headquarters: Thrissur City, Kerala.
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September 23
RBI releases Report of the G. Gopalakrishna Committee on ''Capacity Building in Banks and non-Banks''.
o Some important recommendations are:
Create the position of ''chief learning officer'', responsible for leadership development and
collaborative learning in commercial banks.
Conducting a common Banking Aptitude Test (BAT) at entry levels.
Banks should endeavour to expand enrolment of select internal employees as part-time faculty to
provide internal support for training initiatives.
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This portal will also help the customers, it will enable them to renew premium payment using direct debit
on Canara Bank and OBC's Core Banking System.
State Bank of Travancore launched a Demat campaign for its customers. Bank organized this exclusive drive to
help the customers for starting up the 3 in 1 online Demat account.
o With the help of the Demat facility the customers will be able to convert their physical share in the
electronic form.
o One of the official reported that the campaign was carried out yesterday at poojappura Branch of the bank
and will held today at the main branch of the bank in Thiruvananthapuram city. Customers as well the other
corporate can visit and avail this facility.
Bank of Maharashtra is celebrating its 80th Foundation Day.
o On the occasion of its foundation Day, yesterday bank has launched a customers meet. At the different
places all over the country, bank organized functions.
o Bank also donated a sum of Rs. 51,000 to Tamana a NGO that works for the mentally retarded people.
o The customers, in turn, appreciated the Bank's efforts for organizing a Customer Meet on its 80th
Foundation day. The bank assured that bank will keep on servicing its customers like this only.
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To deal with talent replacement, there should be free movement of talent within the organisation for
creation of a larger workforce of trained personnel.
Job rotation, especially in PSBs, should not be carried in a mechanical manner but through a well laid
down criterion.
All banks may adopt e-learning methods and ensure that function-specific lessons are made available
to its staff.
About chief learning officer:
Banks to focus on skill building, it recommended a 360 degree feedback mechanism, coaching and
mentoring paradigm, pre- and post-recruitment training and talent retention along with creating a
position of Chief Learning Officer in all commercial banks, responsible for leadership development and
collaborative learning across the organisation.
About Job rotations:
Job rotation in banks especially PSBs, should not be done in a mechanical manner, but through a well
laid down criteria. Transfers should focus on critical requirement like leadership across the geography
and posts that require high concentration of power. In short, need-based transfers may be undertaken.
About creation of talent:
Talent and leadership requirements need to be planned strategically over the long term, say over five
years and above.
About creating separate departments:
Bankers will need to specialise in different business functions, while maintaining basic general
competency. Corporate banking, retail banking, treasury, risk, finance, technology, and HR will
increasingly require staff with relevant aptitude. Banks need to identify five to six such tracks, within
which the staff can be groomed
Certain job families like credit, treasury and technology are typically in deficit and need to be planned
for at various levels.
ICICI launches Saving Bank account for minors.

o Private sector bank ICICI Bank launched a savings account for minors above 10 years of age.
o The account, which will be opened in the name of the minor, will offer a personalised cheque book and a
debit card with a picture of his or her choice, the bank said in a statement.
o The 'Smart Star' account, will allows minors to operate their accounts independently. This will help to
inculcate a habit of saving and responsibility of spending wisely.
o Minors will be able to undertake various banking transactions including issuing cheques, paying bills,
recharge mobile phones, open fixed deposits and recurring deposits among others.
o About banking services to miners above 10 years
In May 2014, RBI said the children above 10 yrs can independently open and operate the account. In
order to boost the financial inclusion RBI ordered banks to allow minors to open their account
independently.
All minors can now open a savings/ fixed/ recurring bank deposit account through either his/ her
natural guardian or legally appointed guardian.
Before this, banks allowed minors to operate bank accounts only along with a parent or a guardian. All
children and teenagers below the age of 18 are considered minors under current rules.
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RBI has also asked the bank to provide more banking facilities like ATM card, internet banking to the
minors but should not allow these accounts to be overdrawn and these accounts should always remain
in credit.
Banks may keeping in view their risk management systems, fix limits in terms of age and amount up to
which minors may be allowed to operate the deposit accounts independently.
But banks will not charge any penalty on the non operative accounts.
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South Canara District Central Cooperative (SCDCC) has recently launched Bank cum ATM for the people. To
make banking more comfortable for the people bank has introduced ''Bank cum ATM on Wheels'' with the
help of NABARD.
o In the office area of the Bank NABARD launched a cheque/ cash drop kiosk. Chief general manager of the
bank stated that cooperatives banks are no less than the commercial they also introduce latest technology
to keep their customers happy.
ICICI bank unveiled 4 new banking apps. Bank has introduced new mobile applications to offer basic banking
transactions to the customer over the mobile phone.
o The new apps are : ICICI Store app, Insta Banking app, Video Banking app and mPassbook app. The
customer can easily download these apps from the Google play store and use them. The app will allow the
customer to initiate a transaction before visiting a branch view their transactions over the last 30 days on
their mobile phones. The data has also displayed that by the June end ICICI bank earned Rs 1000 crore
through mobile banking.
o With the help of the apps the transactions like cash deposit, cash withdrawal, request for demand draft,
updation of personal information can be made easily. The Video banking app will enable the customer to do
video calling with customer care and m-passbook will assist the customer to view and track their latest
account, credit card transactions.
Punjab National Bank has recently signed an agreement to work with Honda Motorcycle and Scooter India
(HMSI).
o Through this partnership bank will be offering more attractive offers on Honda two wheelers purchase. Foe
the auto loan bank will be offering attractive interest rate along with the amount stands at 90 per cent of
two wheeler value with an extended repayment tenure of up to 5 years. Usually the bank offers loan up to
Rs 50,000 for the period of 3 years.
o This partnership will benefit the Honda as well to expand its retail business. The PNB and HMSI have
introduced the offer of zero processing and no documentation charges but the customers can avail this
offer til the end of the festive season.
Easy to open account under PMJDY.
o Mr. Modi stated that there is nothing to worry about if the people do not have any valid identity proof, they
can still open their savings account under this scheme.
o To open account the person will simply require two copies of signed photographs.
o This account will be declared as a small account and will be valid for the period of 1 year; with in that period
of time the person can submit the valid document and can subject to continue the account.
o These account will have certain restrictions like balance at any point of time should not exceed Rs. 50,000,
total credit in one year should not exceed Rs. 1 lakh. So far already 4.18 crore accounts have been opened
under this scheme.
o At places people are facing shortage of account opening forms due huge rush at the places. The people can
visit the nearest bank branch and can avail this form from there.
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September 27
SBI signed 500 million dollar Line of Credit with Korea Eximbank.
o Objective:
The LoC will be utilised to provide finance to SBIs clients in India and neighbouring countries that have
business relationships either by way of equity participation or regular trade with Korean companies
globally, as well as joint ventures or subsidiaries of Korean companies.
o About LOC:
A line of credit is any credit source extended to a government, business or individual by a bank or other
financial institution.
The borrower can draw down on the line of credit at any time, as long as he or she does not exceed the
maximum set in the agreement.
The advantage of a line of credit over a regular loan is that interest is not usually charged on the part of
the line of credit that is unused, and the borrower can draw on the line of credit at any time that he or
she needs to.
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ICICI bank has introduced new products for NRIs.

o The new product named NRI advantage is basically for the NRI Pro, NRI premia and NRI savings account
customers.
o This product will help the customers to avail several special offers and discounts. The Executive director of
the bank also informed that bank is having a huge network across several countries and bank is serving 1.5
million NRI customers.
o The bank has launched this new product with purpose to serve and cater the non- financial needs of the NRI
customers.
o With the help of this new product the bank will competently serve the NRI customers with better schemes
and value in the market. The customers will be provided with exclusive offers on healthcare, Gifting family
and friends, shopping and much more.
Public Sector Banks require 2637 billion US dollars to meet Basel - III norms: Moody.
o Global rating agency Moody 2014 released a report titled Indian Banks Could Need 26-37 billion US dollar in
External Capital for Basel - III Compliance.
o In the report it revealed that 11 Indian public sector banks (PSBs) need to raise 26 to 37 billion US dollar in
external capital in the financial year 2015 in order to meet the Basel - III capital adequacy norms by financial
year 2019.
Main highlights of the report:
o In rupee terms these banks will require additional 1.5 to 2.2 trillion rupees to fully comply with the Basel-III
norms.
o A significant part of the required capital, around 800 - 900 billion rupees (or 13-15 billion US dollars) could
be in the form of Additional Tier 1 (AT1) capital.
o Moody's notes that these PSBs constitute 62 percent of the net loans in the Indian banking system but
barely meet the current minimum capital requirements. As a result PSBs will find it difficult to raise capital
quickly in the current environment.
Basel - III Norms
o Basel - III raises the minimum required capital levels for both Tier 1 capital to 7.0 percent and Common
Equity Tier 1 (CET1) capital to 5.5 percent. Besides, the banks will also need to meet a Capital Conservation
Buffer in order to pay dividends. These will be pressurizing the Indian public-sector banks due to low capital
levels remain a key credit weakness.
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Depending on the agreement with the financial institution, the line of credit may be classified as a
demand loan, which means that any outstanding balance will have to be paid immediately at the
financial institution's request.
Federal Bank has decided to help Kerala Cricket Association (KCA) for the India west Indies ODI.
o The bank will be assisting KCA in sales of the ticket for this series. The customers can avail the tickets pricing
Rs. 3000, Rs 1500, Rs. 1000, Rs. 500 and Rs. 200 from the several federal Bank outlets from September 27,
2014 onwards.
o The Federal Bank Zonal Head Mr. Sunny NV and the secretary Mr. T.N. Ananthanarayanan of KCA signed the
MOU.
Vijaya bank has launched new e- products for its customers.
o Bank has introduced customer friendly products like V-gyansagar. Basically V-gyansagar is a mobile app that
will help the bank to inculcate financial literacy among the customers.
o Founded: 1931, (Attavar Balakrishna Shetty).
o Headquarters : Bangalore.
o Chairman: Shri. V. Kannan
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UCO Bank has signed a Memorandum with CCAvenue.

o Objective:
For banking payments easier through the use of plastic money as well as through online banking.
o About CCA
CCAvenue is one of the largest and reputed payment gateway providers. Through this partnership the
bank will facilitate the bank customers to shop through various sites that are in association with the
CCAvenue.
The customers will be getting the easier way to make the payments and shop online my making
payments directly through the banks Debit card.
SBI donated computers to schools in Gujarat.
o The bank distributed computer sets and peripherals to 150 needy schools in Gujarat.
o Objective:
The initiative is purposely to help the schools with infrastructure, which are in need and are not able to
acquire due to insufficient funds.
To help nearly 59,198 students with their education bank has spent an amount of Rs. 46.63 lakh.
As a part of the CSR activity bank work for the society upliftment as well.
Banks may face some legal issue on opening of minors account.
o Under the new scheme the kids are allowed to operate their savings account on their own but these
facilities and freedom to them may be against some of the laws of the country. It has been stated that one
of the major legal implications of this move (to allow minors to operate an account) is that there cannot be
enforcement against the minor under the Indian Contract Act.
o In case of the dishonour of the cheque made by the account of the minor no action can be taken since a
minor cannot enter in to a contract.
o Under the Partnership Act, a minor can be admitted as a partner.
o Indian Contract Act 1872
The Act was passed by British India and is based on the principles of English Common Law. It
determines the circumstances in which promises made by the parties to a contract shall be legally
binding on them. Each contract creates some rights and duties on the contracting parties. Hence this
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legislation, Indian Contract Act of 1872, being of skeletal nature, deals with the enforcement of these
rights and duties on the parties in India.
o The Indian Partnership Act, 1932
It is an act enacted by the Parliament of India to regulate partnership firms in India.
The act is administered through the Ministry of Corporate Affairs. The act is not applicable to Limited
Liability Partnerships, since they are governed by the Limited liability Partnership Act, 2008.
RBI to set up more financial literacy centres in the country.
o The apex bank has decided to push and focus on opening of more number of financial literacy centres. In
every district across the country there should be one financial centre. This will be the part of financial
inclusion plan.
o Financial literacy will imparted to the people through these centres. The farmers will e taught about skill
development along with the financial benefits.
o Objective:
These centres will focus highly on the need of the farmers and agriculturist. It will be ensured that all
the benefits due to them from banks and the respective governments - state and centre reach them.
This will strongly help the farmers to become aware and will help them to lead a more sustainable life.
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Alibaba gets approval to set up private bank in China.

o Alibaba is Chinas e-commerce giant and the latest company outside the financial sphere to win approval to
start a bank in China. Beijing hopes private banks will help in its drive to open up the economy to more
competition and get private capital to more parts of the economy.
o Note: Alibaba completed the biggest initial public offering ever this month by selling $25 billion of stock to
investors keen to tap into the worlds biggest pool of Internet users.
Chairman: Jack Ma.
Headquarters: Hangzhou, China.
Exim Bank's Line of Credit of USD 52 million to the Government of the Republic of Togo.
o Export-Import Bank of India (Exim Bank) has entered into an Agreement dated with the Government of the
Republic of Togo for making available to the latter, a Line of Credit (LOC) of USD 52 million (USD Fifty two
million).
o Objective:
For financing eligible goods, machinery, equipment and services including consultancy services
(including Preparation of Detailed Project Report) from India for the purpose of financing setting up of
161 kV power transmission line in Togo.
SMERA asked permission of RBI to give rating to All Deposit Taking NBFCs.
SMERA is seeking accreditation as 'approved credit rating agency' for the purpose of rating fixed
deposits of NBFCs.
o About SMERA:
SME Rating Agency of India Ltd. is a full service credit rating agency exclusively set up for micro, small
and medium enterprises (MSME) in India. It provides ratings which enable MSME units to raise bank
loans at competitive rates of interest.
However, its registration with Securities Exchange Board of India SEBI as a Credit Rating Agency and
accreditation by Reserve Bank of India RBI in September 2012 as an external credit assessment
institution (ECAI) to rate bank loan ratings under Basel II.
o SMERA is started by:
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September 30
RBIs third bi-monthly monetary policy
Current
Rates (in %)
Reserve Rates CRR
4
SLR
22
Policy Rates
Repo Rate
8
Reverse Repo Rate 7
MSF
9
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The agency was founded in 2005 by Small Industries Development Bank of India Dun & Bradstreet
Information Services India Private Limited (D&B) and several leading Govt., Public, Private and MNC
banks in the country.
Headquarters: Mumbai, Maharashtra.
Chairman: Mr. Sudeshkumar G. Gulati.
Seeking to expand Asian operations, Qatar-based Doha Bank will acquire the Indian operations of the HSBC
Bank Oman.
o The board of Doha Bank has approved the terms of amalgamation to take over and combine the banking
operations of HSBC Bank Oman SAOG, India, with Doha Bank QSC India operation as a going concern, Doha
Bank said a filing to the Qatar Stock Exchange.
o Note : Late last year Doha Bank had secured licence from the Reserve Bank of India (RBI) to commence
banking operations in India and has been permitted to open a branch in Mumbai to provide fullscale
banking services.
Corporation Bank joined Swachh Bharat Abhiyan.
o Under this bank has will be constructing 100 toilets across the various schools as the part of swachh
Vidyalaya.
o Last the bank initiated this campaign by building 5 toilets in the Udipi region (Kerala).
o The bank will further carry out this campaign across the other parts of the country. Employee in large
number participated in this campaign while cleaning the bus stand of the region and spreading the message
that the cleanliness should be maintained forever.
Banks may go on strike this October.
o United forum of Bank Union has decided to continue their protest against the salary revision in again. The
Indian banks will be conducting protest demonstration across the country on 17th October, 2014.
o The employees will wear black badges to demonstrate the protest. Further one day dharna will also be held
in between October 18 and 31.
o Reason for strike
The banks are demanding for the hike 25% in their salaries whereas IBA is offering a revision of 11%
only. Unsatisfied with this revision the banks have planned to demonstrate protest against this by one
day strike.
However, IBA agreed and has accordingly clarified that even though employees would be covered by
the medi-claim scheme, they would continue to submit their claims to the management.
Corporation Bank of Mysore to setup e-lobby in Mangalore.
o About e-lobby
The E-lobby eases the banking transactions and help the customers with various facilities of cash
deposit kiosk, cheque deposit kiosk, and self-service passbook printer.
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No Change
No Change
No change
No Change
No Change
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Bank Rate
Highlights:
o Reserve Rates (SLR, CRR) & Policy Rates (Repo, R-Repo, MSF and Bank rate) kept un-changed.
o Continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate
and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system
through auctions.
o Reduce the liquidity provided under the export credit refinance (ECR) facility from 32 per cent of eligible
export credit outstanding to 15 per cent with effect from October 10, 2014.
o Section 24 of the BRA, 1949:
Every primary (urban) cooperative bank (scheduled/non-scheduled) and scheduled commercial bank is
required to maintain liquid assets in the form of cash, gold (or) unencumbered approved securities
which should not be less than 25 per cent of the total of its demand and time liabilities (NDTL) in
accordance with the provisions of Section 24 of the Banking Regulation Act, 1949.
o Section 42 of RBI Act, 1934:
Commercial banks, primary (urban) cooperative banks are required to maintain certain amount of cash
reserve and liquid assets. The scheduled primary (urban) cooperative banks are required to maintain
with the Reserve Bank of India an average daily balance, the amount of which should not be less than 5
per cent of their net demand and time liabilities in India in terms of Section 42 of the Reserve Bank of
India Act, 1934.
The Government of India has minted the ''Rs. 5 coin of Maulana Abul kalam Azad'' on the occasion of 125th
Birth Anniversary of Maulana Abul kalam Azad.
o These coins are legal tender as provided in The Coinage Act 2011. The existing coins in this denomination
shall also continue to be legal tender.
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October 2014
October 1
The Nachiket mor committee recommended formation of small, payments banks for achieving financial
inclusion faster.
o RBI is going to issue final norms on small, payments banks by end-November.
October 2
Banks open 5.29 crore accounts under PM Jan Dhan, issued 1.78 crore RuPay cards.
o Pradhan Mantri Jan Dhan Yojana is an ambitious scheme for comprehensive financial inclusion launched
by the Prime Minister of India, Narendra Modi on 28 August 2014.
o Exceptions:
This is being done excluding the states of Haryana and Maharashtra where survey work has been
temporarily suspended in view of Assembly Elections.
o Main Features:
The main features of the PMJDY scheme include an overdraft facility worth Rs. 5,000 for Aadharlinked accounts, a RuPay Debit Card.
With in-built accident insurance cover of Rs. 1 lakh.
Besides, account holders under the scheme will get a life insurance cover of Rs 30,000. This is an
additional benefit that was announced by PM Modi during the launch of the scheme.
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October 3
Banks need USD 200 billion in next 5 years to meet Basel - III norms, says Fitch.
o Domestic banks will need US $200 billion additional capital over the next five years to meet Basel - III
norms for capital adequacy and the demand for funds as growth picks up, Fitch Ratings.
o About Capital requirements: CAR
Capital Adequacy Ratio (CAR) or Capital to Risk (Weighted) Assets Ratio (CRAR) is calculated in risky
assets of banks to ensure that it can absorb a reasonable amount of unexpected losses.
The original Basel - III rule from 2010 was supposed to require banks to hold 4.5% of common equity
and 6% of Tier I capital of "risk-weighted assets" (RWA).
Basel - III introduced "additional capital buffers", (i) a "mandatory capital conservation buffer" of
2.5% and (ii) a "discretionary counter-cyclical buffer".
o Risky assets in Indian banks
Public sector banks reported stressed assets of around 12 per cent in 2013-14, versus around 4 per
cent of private banks and 10 per cent for the banking system, according to Fitch.
Last date for implementation of the Basel - III regulations is March 2019.
October 4
Commercial bank credit growth remains sluggish at 9.7 per cent.

o Credit growth of commercial banks continued to remain weak with a growth of just 9.7 per cent at Rs.
61,46,526 crore against Rs. 56,02,021 crore last year.
o Deposits grew 13.33 per cent to Rs. 81,06,633 crore in the fortnight to September 19 as compared with Rs.
71,50,374 crore in the year-ago period.
o Demand deposit expanded 12.40 per cent to Rs. 7,36,751 crore as of September 19 from Rs. 6,55,428
crore in the same period a year ago.
o Time deposit rose 13.47 per cent to Rs. 73, 69,898 crore as against Rs. 64,94,947 crore in the same period
last year.
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October 6
Online NEFT transactions will be chargeable in PNB.

o Punjab National Bank has unveiled that bank has decided to charge its customers all online transfer of
funds, irrespective of the amount.
o The bank stated that any transaction made to other bank account through National Electronic Fund
Transfer (NEFT) will be charged.
o From the beginning of the October the bank has decided to charge the customers for NEFT transactions
made online, whereas Inward NEFT remittances will continue to remain free.
The charge list is as follows:
For the NEFT
Charges
Up to Rs. 10,000
Rs. 3
Rs. 10,001 to Rs. One Lakh Rs. 6
Greater than Rs. 1 Lakh
Rs. 17
PF subscribers can monitor PF accounts online.
o From the 16th October the EPFO subscribers will get the facility to monitor their PF funds online on the
real time basis.
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October 7
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ICICI bank has rolled out a new special account for the NRI customers.
o To make the banking facilities more convenient and hassle free the bank has introduced the new 'Easy NRI
account'.
o This new account offers various benefits to the customers. It will provide the facility of low monthly
average balance requirement of just Rs. 2,000. Further there will be no charges for the minimum balance
maintenance.
The Finance Ministry considering RBI proposal for creating additional posts of a COO and a fifth Deputy
Governor.
o The Finance Ministry is considering amendments to the RBI Act 1934 to enable the central bank appoint a
fifth Deputy Governor and a Chief Operating Officer (COO).
o Finance Ministry sources confirmed that both the sides had reached an informal agreement to appoint a
COO and create the post of a fifth Deputy Governor in the RBI, but with a condition.
o The condition for COO:
The criteria for appointment COO would be from among the two Deputy Governors from the RBIs
quota.
o The condition for fifth Deputy Governor
The key criteria for appointment of fifth Deputy Governor would be a person with at least 25 years of
experience in public administration and governance.
o Objective of COO:
The COOs appointment is part of the RBIs human resources (HR) restructuring exercise.
The proposal also talks about creation of an additional position of a COO in the rank of Deputy
Governor to head one of the five functional clusters.
o About General Board of Directors :
RBI is governed by the Central Board of directors.
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It is being informed that on 16th October Mr. Modi is launching UAN number which will make the PF
account number portable and easily accessible.
o The EPFO would provide more value added services like paperless settlement of provident fund
withdrawal claims like during retirement and fixing of pension after attaining the age of 58 years.
o To make the services more better under the UAN scheme all the members are asked to the bank account
number to be seeded with the portable PF account number which will make the make PF withdrawal and
other claims settlements less time consuming.
YES BANK launches first-of-its kind discounts/ deals offers on ATMs.
o YES BANK has launched a first of its kind offer at its ATMs, whereby discounts and deals are offered to
anyone who transacts at the Banks ATMs.
o To avail this delightful offer, one has to simply walk into any YES BANK ATM across the country, withdraw
cash or transfer funds, and choose any one of the great offers across categories such as books,
entertainment, clothing, food & beverages, gifting, kids, lifestyle and online shopping.
o This facility is available for YES BANK accountholders (cash withdrawal and funds transfer transactions)
and non-YES BANK accountholders (only cash withdrawal transactions).
o In addition to this, YES BANK has also introduced a new facility for non-YES BANK account holders to
request their account statement or request for a cheque book at a YES BANK ATM.
o This facility is currently availed to account holders of Saraswat Cooperative Bank using the NPCI Network
(National Payments Corporation of India) and will soon be offered to account holders of other banks also.
o
Number
Posts
1
4
1
10
of Post Names
The Governor (Dr. Raghuram Rajan)

Deputy Governors
Finance Ministry Representatives
Government Nominated directors to represent important elements from
Indian economy
4
Directors to represent local boards headquartered at Mumbai, Kolkata,
Chennai and New Delhi
Each of these local boards consists of 5 members who represent regional interests, and the interests
of co-operative and indigenous banks.
About Deputy Governors appointment:
In order to formalise the arrangement, the Finance Ministry is likely to move a Bill to amend the RBI
Act during the Budget session.
Traditionally, two Deputy Governors are from the ranks of the RBI (i.e, RBI quota), third is an
economist and the fourth one is from the commercial banking space.
The criteria for appointment COO would be from among the two Deputy Governors from the RBIs
quota.
At present, among the four Deputy Governors, H.R. Khan and R. Gandhi are from the ranks of the RBI,
Urjit Patel is a well-known economist, while S.S. Mundra was earlier Chairman and Managing Director
of Bank of Baroda.
October 8
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Karnataka Bank has signed MOU with TVS motors.

o Karnataka Bank has planned to work with TVS motors ltd. in order to assist the authorized dealers of TVS
motors with financial assistance. Through this tie- up the bank will extend its inventory channel finance
facility to the authorized dealers of TVS Motors Ltd.
o Headquarters: Mangalore.
SBI to launch ATM cum Pos terminals.
o State bank of India has tied up with Ezetap Mobile Solutions Pvt Ltd. In association with Ezetap the bank
has planned to roll out ATM cum POS terminals.
o Objective of ATM cum Pos terminals:
To make payments and withdraws at the retail shops easier for the customers, the bank has planned
to launch this.
o How ATM cum Pos terminals works?
Through this the customers will be able to make payments through their bank accounts like any other
debit card payment. In addition to this withdrawals can be made through this fresh and innovative
measure similar to the ATM which will also help the shopkeepers.
The maximum limit is Rs. 1000. For the time being the customers can en-cash a sum of Rs. 1000 which
is paid by the store owner from his cash holding. The money gets deducted from the consumers bank
account and gets deposited in the current account of the merchant.
o About Ezetap:
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The 20 Member Central Board of Directors Consists of :
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Ezetap is a Bangalore-based mobile payments service provider. It has also worked in association with
the well renowned companies like Flipkart, Bajaj Allianz, book my show and shoppers stop. With the
help of this people can shop more comfortably and conveniently.
October 9
ICICI Lombard has rolled out ''self service kiosk'' for the customers.
o The private insurance company has established self service kiosk in three major metropolitan cities Delhi,
Bangalore and Mumbai.
o With the help of the kiosk the customers will be easily able to print policy certificate, query regarding
update, make policy endorsement etc. In addition to this it also offer the facility to renew their existing
motor insurance and health insurance policies.
o Objective:
The kiosk will make the purchase of policy, renew or claim related transactions hassle. Within
seconds customer will get the facility to resolve their query, access their ICICI Lombard General
insurance policies.
UCO bank signed MOU with PSFC and PAIC
o UCO bank and Punjab State Farmers Commission (PSFC) with Punjab Agro Industries Corporation (PAIC)
signed a MOU.
o Objective:
To boost the National pension scheme (NPS) in villages and under privileged sections of the country.
UCO bank and PSFC decided to work together to attract more people specially farmers towards the
NPS. Through this bank will also offer a proper platform to the people for their savings by providing
the facility of savings account.
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FIR against the officials of AXIS bank for fraud of 20 crore.

o The Golf Technologies (P) Ltd has registered a case against the officials of axis bank for alleged fraud worth
nearly Rs. 20 crore.
o Reason : The Bank forged the signature of the time in the absence of the companys head.
o It has been claimed that the senior officials - Chief executive officer, chief operating officer of the banks
are responsible for the fraud. The company stated that the bank has imitated the fake signature of the
companys head to withdraw a sum of Rs 19. 89 crore from the companys current account to a different
companys account.
IDBI bank organised camp to help differently disabled people.
o As a part of its corporate social responsibility (CSR) IDBI bank organized a camp in Guwahati. The camp
was organized to help the physically challenged people. Through the camp different appliances were
distributed to the physically and mentally challenged people.
o Chairman: M.S. Raghavan.
o Founded: 1964.
o About IDBI:
IDBI Bank is on a par with nationalized banks.
It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for
the development of the fledgling Indian industry.
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In 1964, it was started as development bank, later on recommendations of RBI committee headed by
S.H. Khan it was converted into commercial Bank.
Currently, Government of India held 76.72% shares in IDBI Bank.
October 11
Punjab National Bank has decided to support the Prime Ministers Swachh Bharat Abhiyan by contributing
to cleaning fund of Ganga River.
o The Bank has plans to put his contribution in making or country clean.
o With the intent to do so the PNB bank has taken up the responsibility of two ghats in Varanasi to keep
them clean throughout the year.
o From the 2nd October, 2014 onwards the bank has taken up the drive to maintain the cleanliness at these
two ghats. Mr. jha DGM (circle head), stated that All our officers and employees participated in this
movement.
o Further the bank will also look after in repairing of its structure, paintings and others.
SBI signs MoU with NABARD for organizing a financial literacy camp in Nagaland.
o State bank of India in association with National Bank for Agriculture and Rural Development (NABARD) has
organized a financial literacy camp in Tseminyu.
o In order to aware the people regarding the banking services and their advantages the banks organize such
camps. Chunlikha is a village where the people are unaware about the banking.
o With aim to give the knowledge reading banking SBI along with NABARD organized financial literacy camp
highlighting the need of savings account, importance of fixed deposits and various other banking facilities
October 12
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All India Bank Officers' Confederation (AIBOC) has planned to go on two days strike along with the other
constituents of UBFU for the wage revision.
o From long back the banks are demanding for the revision in their wages Further the AIBOC has also
decided to stick to their working hours they will not be working on the weekends and holidays.
o In the first week of November through the two days strike they will urge their protest for the settlement
of early revision in their wages. Since IBA is not considering their demand to make any revisions in their
salaries the banks commission has planned to withdraw their cooperation and not do any extra work or
work after their office hours. The workers are quite upset with the IBAs behavior towards their genuine
demand of wage revision.
o In addition to this there will also be a massive rally at Jantar Mantar on October 13 protesting
demonstrations along with UBFU constituents.
Clarification regarding 'free transactions at non home ATM branches'.
o RBI has unveiled that the number of free transactions at non-home ATM branches will remain to be five.
o Previously it was expected that the free transactions will be reduced to three, but now RBI has cleared
that free transactions will remain five at both the metro centres and other locations.
o But for the six metropolitan cities Delhi, Mumbai, Chennai, Banglore, Kolkata and Hyderabad the number
free of cost transactions at non home branches of ATMs would be three only.
o Other than these six cities there will be facility of five free transactions. Banks are, however, free to offer
more number of free transactions a month at other bank ATMs as well as own ATMs in any geographical
location.
Federal bank joined hand with IIFL group to offer broking services.
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Federal Bank has planned to join hands and work with India Infoline, a part of IIFL Group. Through this tie
up the bank aims to offer improved broking services to the customers.
The bank has reported that, this initiative of the bank will assist the customers with the enhanced quality
broking service in India as well as abroad. The customer will be provided with IIFL broking services.
Appraising the services provided by IIFL group, President, Treasury and Head, Network II, Federal Bank
stated that IIFL is one among the best broking service provider. Through this tie up the Federal bank
customers will get the opportunity to link with IIFL group.
October 13
First-of-kind ''kayPay'' FB based money transfer system launched by Kotak Mahindra bank.
o Kotak Mahindra bank has rolled an innovative payment system for facebook users customers. To make the
payments instantly the bank has introduced Kaypay payment system. This system will allow the facebook
users to send money to each other.
o The bank reported that this system will eliminate the need to have net banking, details of the bank
account of the payee. Bank account holders can now transfer money at any point of the day or night. This
is an innovative system launched by bank to make the payment system hassle free. After the transaction
both the sender and receiver will get a notification through facebook.
o This is a free of cost system. The user simply needs to register his/her bank account which participates in
the IMPS on the Facebook or www.kaypay.com. After getting successful registration the customers can
enjoy the benefit of this secure and payment system.
o Technology used IMPS.
IOB bank to work with Naturals to assist women entrepreneurs.
o Indian overseas bank has planned to work with Naturals a hair and beauty chain. The bank is planning to
expand its services in the northern India, with the help of naturals. The bank will be providing the women
with the collateral free loan who are planning to set up Naturals salon, Spa or lounge.
o Through this tie the women entrepreneurs will be offered with collateral free loan and in addition to this
the third party guarantee would not be necessary. The bank will assist all the first time women
entrepreneurs with financial assistance to start up their Naturals salon.
o The bank has already received an overwhelming response for this in south India by help the women over
there. In south the bank has assisted in setting up 46 Naturals salon. Now with the same criterion the bank
will provide loan facility in north India to women entrepreneurs.
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IRDA set-up committee for ''corporate governance, disclosure norms''.

o Insurance Regulatory and Development Authority (IRDI) will align its corporate governance and disclosure
norms in accordance with the new Companies Act, 2013.
o For this, IRDA has set up a 12-member committee under its member R.K. Nair.
o Objective:
In order to bring harmony between the corporate governance and disclosure requirements of the
Authority and the Companies Act, 2013, the Authority has decided to constitute a working group
harmonising IRDA Corporate Governance Guidelines and Disclosures with Companies Act, 2013.
o About CSR
o In 2014, India became the world's first country to enact a mandatory minimum CSR spending law. Under
Companies Act, 2013, any company having a net worth of 500 crore or more or a turnover of 1,000 crore
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or a net profit of 5 crore must spend 2% of their net profits on CSR activities. The rules came into effect
from 1 April 2014.
Criteria (in crores)
Net profit 5
Net worth 500
Turnover 1000
October 15
First women oriented banking branch in Himachal Pradesh.

o Kangra Central co-op bank is launching its ever women oriented branch.
o For the first time a bank in Himachal Pradesh is launching a women oriented branch in the state. On the
New Year occasion 1st January 2015 the branch will become operational. The branch will be launched in
Depot Bazar locality.
o After this branch bank will further set up 5 new such branches in 5 different districts of the state. The bank
is also extending its ATM services to all the customers of the country and abroad from 16th of this month.
For this bank has already issued 3,000 ATM cards.
Union bank of India introduced bill payment service for MTNL users.
o Union bank of India has launched a new bill payment service for the MTNL subscribers. The bank has
reported that for the MTNL subscribers bank, the bank has introduced facility that will make their bill
payment system easier. The Customers will be able to pay their bill using mobile banking applications of
their respective banks.
o How it function?
Technology used IMPS.
It is First-of-kind by a bank to introduce a bill payment service through mobile banking application.
Intially this scheme is for the MTNL subscribers only, futher the bank will extend it upto the mobile
phone users as well.
The bank has assigned 9969009700 as the mobile number and 9026263 as the MMID (mobile money
identifier) for MTNL. In order to make the bill payment Customers need to type mobile number and
MMID of MTNL along with the bill amount and landline number through which payment is being
made.
SBI customers with large account balance will get unlimited free ATM transactions.
o The bank has decided to offer the free ATM transactions on the basis of account balance of the users.
o If the banks own ATM if the customers is having an account balance of more than Rs. 25000 then they will
get unlimited free transactions.
o In case customer rarely visits the bank branches the customer will get 9 free transactions per month.
o In case the balance is less than 25,000 then only 5 free transactions, above this the customer will charged
with a fee of Rs. 20 for each transaction.
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Non-Scheduled UCBs are permitted to Internet Banking (View Only) Facility for Customers.
o Non-Scheduled UCBs are permitted to provide Internet Banking (View Only) facility to their customers may
ensure.
o Online facility offered is strictly non-fund based service such as balance enquiry, balance viewing, account
statement download, request for supply of cheque-books etc. and no online fund-based transactions are
allowed.
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Contribution of Company
2% of their net profits
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October 17
RBI inks MoU with Kenya's central bank for info exchange.
o The Reserve Bank has signed a pact with Central Bank of Kenya for exchange of information and
supervisory cooperation.
o The Reserve Bank of India signed the Memorandum of Understanding (MoU) on Supervisory Cooperation
and Exchange of Supervisory Information with the Central Bank of Kenya.
o With this, RBI has signed 22 such MoUs and one Letter for Supervisory Co-operation, it added.
o The MoU was signed by RBI Governor Raghuram Rajan and Central Bank of Kenya Governor Njuguna
Ndung'u.
NABARD sets up Rs. 2,000 crore funds for mega food parks.
o The National Bank for Agriculture and Rural Development (Nabard) will commence direct lending to food
processing industries in mega food parks and designated food parks by end of October. The Bank has set
up a fund with a corpus of Rs. 2,000 crore for this purpose.
o The government announced in this year's budget setting up of a fund and gave the responsibility to
Nabard to promote food processing sector through mega food parks. Nabard has been allocated Rs 2,000
crore fund, which will be utilized to lend to state government entities and private sector.
o Objective:
Under the new Fund, Nabard would provide loans for a period of seven years at an attractive interest
rate of 7.8 per cent to 8 per cent. Nabard would provide loans for large food chains and food
processing units in a food park and also for creation of infrastructure at food parks, he said.
Chairman: Harsh Kumar Bhanwala.
o About MFPS:
Mega Food Parks Scheme (MFPS) was introduced by UPA government in 10th five year plan.
Based on extensive feedback and consultations with various stakeholders the earlier Scheme of Food
Parks under the 10th Five Year Plan has been revised and reformulated as Mega Food Parks Scheme
(MFPS) for the 11th Five Year Plan period.
Land for the project shall be purchased/ arranged by the SPV. The registered value of such land would
be taken as part of the project cost and contribution/ share of the SPV. The GOI grant shall not be
used for procurement of land and will be 50% of non-land component of the project.
First MFPS was started in Ananthapur, Andhra Pradesh.
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UCBs commencing internet banking (view only) facility should report to our Regional Office within one
month of operationalisation of the facility.
o BackGroud:
About Internet Banking in UCBs.
Complete Internet Banking is provided to only Scheduled UCBs which satisfy certain criteria.
Scheduled UCBs satisfying certain criteria such as minimum net-worth of Rs. 100 crores, CRAR of at
least 10%, net NPA less than 5% and continuous profit during the last three years, were permitted to
provide internet banking facility to their customers with prior approval of Reserve Bank of India.
Canara Bank to help Women- entrepreneurs through its facilitation centres
o The bank will be providing collateral free loans to the women wishing to stat up their business.
o The MSME facilitation centres of the bank are set up to serve the needs of the entrepreneurs basically.
o Bank is having five MSME facilitation centre located at Hyderabad, Chandigarh, Noida, Mumbai and
Coimbatore.
o
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October 18
Andhra Bank accounted account number for Hud hud cyclone relief fund.
o With the intent to help the people in flood affected area of Andhra Pradesh, the govt. of the state has
planned to collect the donation fund for the people with the help of the Andhra Bank. In association with
the Andhra Bank the donations will be collected to help the people victims of Hud hud cyclone.
o All the people can contribute for the donation, the donation will be accepted at all the branches of the
bank in the form of cash/ cheques without any charges. Further it is also reported that Remittance can
also be made through NEFT/ RTGS.
o The account is CM Relief Funds (AP Cyclone Relief) bearing the number 110310100029039 in Andhra
Banks AP Secretariat branch. Through this initiative bank wanted to support the affected people in the
state.
Corporation Bank launches e-Mandate service.
o To provide robust platform for large volume of repetitive payments, Corporation Bank has launched the
e-Mandate (digital mandate) service.
o The e-Mandate service will be beneficial to the utility companies for monthly subscriptions/ bill
payments; insurance companies for premium payment by policy holders; NBFCs and other finance
companies for instalment payments; education institutions for school fee payment; and manufacturing
companies.
o Now most of these transactions are done either through post-dated blank cheques or through Electronic
Clearing Services (ECS). Both the above payment modes involve physical handling and movement of
paper-based instruments such as cheques and mandate (in ECS).
o About ''e-Mandate'' activities
The activities under e-Mandate include collection of mandate, and scanning and uploading of
scanned image to NPCI (National Payments Corporation of India).
Federal Bank bagged excellence banking award.

o Federal Bank has won four out of five IDRBT Banking Technology Awards for 2014-15.
o For its excellent performance the bank has been awarded with four awards. The bank has been
announced as the best bank for use of Technology for Financial Inclusion, Social Media and Mobile
Banking.
o In addition to this bank has been entitled best bank for Business Intelligence Initiatives and for Best IT
Team.
o Since 2001, IDRBT recognizes the best bank for its performance in banking and use of technology and
honour them with the award. The Bank reported that it is a pride moment for the bank to won the
maximum awards for the year. The governor of the apex bank Mr. Rajan awarded the CMD of the bank
Mr. Shyam Srinivasan with the awards.
The winners for the IDRBT Banking Technology Excellence Awards 201314 are :
Award Category
Best Bank Award for Use of Technology Large Banks
for Financial Inclusion
Mid-Size Banks
For Social Media and Mobile Banking
Large Banks
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For Electronic Payment Systems
Mid-Size Banks
Large Banks
The winner
State Bank of India
Federal Bank Ltd.
ICICI Bank
Federal Bank Ltd
State Bank of India
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For Managing IT Risk
For IT for Business Innovation

For Best IT Team
October 20
SBI determined to continue retail banking in UK.

o State Bank of India is still determined to carry out the carry out the retail banking operations in UK. The
SBI has been operating in UK since past 95 years.
The bank has reported that tough the bank of England has halted on the operations of foreign-owned banks
in the country, but bank is determined to continue. The SBI is having 900 million pounds of deposits in
Britain. The bank is very well established in the country.
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October 23
Large Banks
Mid-Size Banks
Small Banks
Large Banks
Large Banks
NHB made home loan borrowing easier.

o National Housing bank has asked the Housing finance companies to provide housing loans above Rs. 20
lakh with a loan-to-value (LTV) ratio of up to 90 per cent if such loans are supported by a mortgage
guarantee.
o After this measure the housing finance companies will offer the loan at the lower rates. In result this
would increase the retail housing loan in the market.
o The borrowers will now be happier to know that in case they want to loan of Rs. 20 lakh and above, they
will be required to pay 10% of the total loan upfront and the remaining will be financed by the Housing
finance company.
New multi-currency travel card of KVB bank.
o This is a prepaid reloadable card. This card will offer the customers easier and convenient spending in their
foreign tours.
o The card will provide the facility to loading the 3 currencies such as US$, Euro and Singapore Dollar (SGD)
in one card. In addition to this the customer will also get the facility of net banking through which they can
check the balance in the card.
o This will make the payments for the customers while shopping in abroad hassle free. They can easily
withdraw cash from VISA enabled ATMs and can shop online as well. Customers can avail the card from
the selected branches of KVB bank. The card will have the validity of 5 years.
October 21
ICICI Bank
Federal Bank Ltd.
The Karur Vysya Bank
Ltd.
Bank of Baroda
Bank of Maharashtra
IndusInd Bank Ltd.
Axis Bank Ltd.
HDFC Bank Ltd.
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Mid-Size Banks
Small Banks
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For Business Intelligence Initiatives
SBI launches mPassBook facility on its already existing smart-phone application.

o The nation's largest lender State Bank of India (SBI) launched a facility called 'mPassBook', on its 'State
Bank Anywhere' mobile application, for its retail banking users.
o Launching the facility, SBI Chairman Arundhati Bhattacharya, said that 'mPassBook' is an electronic
application of a physical passbook for savings bank and current accounts.
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The facility is currently available on Android phones but would soon be available on iOS and Blackberry
phones too.
October 24
China launches AIIB to rival World Bank.

o The AIIB, launched in Beijing at a ceremony attended by Chinese finance minister Lou Jiwei and delegates
from 21 countries including India, Thailand and Malaysia, aims to give project loans to developing nations.
China is set to be its largest shareholder with a stake of up to 50%.
o Indonesia, where President Xi Jinping first spoke of the AIIB during an October visit last year, was not
present and neither were South Korea and Australia, according to a pool report.
o The AIIB is expected to begin operations in 2015 with senior Chinese banker Jin Liqun, ex-chairman of
investment bank China International Capital Corp, expected to take a leading role.
o The Asian Development Bank (ADB) chief said he doesnt welcome a China-backed rival bank that will have
a virtually identical aim.
o 21 countries signed the bill, which included: China, India, Thailand, Malaysia, Singapore, the Philippines,
Pakistan, Bangladesh, Brunei, Cambodia, Kazakhstan, Kuwait, Laos, Myanmar, Mongolia, Nepal, Oman,
Qatar, Sri Lanka, Uzbekistan, and Vietnam.
o About Asian Infrastructure Investment Bank:
Headquarters : Beijing.
Member countries : 21.
Expected to start loaning : 2015.
Capital : 100 bn USD.
Starting Capital : 50 bn USD.
October 25
UCO Bank identifies Kingfisher Airlines as wilful defaulter.

o Kolkata-based UCO Bank has identified Vijay Mallya-owned Kingfisher Airlines (KFA) as a wilful defaulter
and will be sending a notice to the defunct carrier.
o United Bank of India has already declared KFA a 'wilful defaulter' for defaulting a loan of Rs. 350 crore.
Other banks like State Bank of India and Punjab National Bank are also mulling this route.
o About willful default
Intentional failure by a party to a contract, or a court case, to do what it is supposed, or ordered, to
do.
Willful defaulter, In Banking it means a debtor who is not will to play bank loans even though he have
money.
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State Bank of Hyderabad has launched a campaign for micro and small entrepreneurs ''Subh Labh''.
o Through this campaign the entrepreneurs will get the assistance to establish new business with some
comfort.
o Through this campaign the bank wishes to offer concessions on interest rates, processing charges and
various other facilities to the entrepreneurs who all are planning to set up new business.
2nd Edition of the Efma Accenture Innovation Awards.
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October 27
Bank of India to open branch in Vietnam.

o Bank of India gets licence to set up bank in Vietnam. The licence was handed over after delegation level
talks between Prime Minister Narendra Modi and visiting Vietnam Prime Minister
o Capital: Hanoi.
o President: Trng Tan Sang.
o Prime Minister: Nguyen Tan Dung.
Ongoing selection process for public sector bank CMDs, EDs scrapped.
o Eight posts of CMDs and 14 posts of EDs would require to be filled-up 'de novo'.
o Apart from these banks, the post of CMD is vacant in Indian Overseas Bank, Syndicate Bank and United
Bank of India.
o The Government has decided that a fresh process for selection would have to be implemented for filling
up the existing vacancies.
o The Reserve Bank of India Governor or his nominee in the rank of Deputy Governor will be part of the new
selection process.
o BackGround:
The government decision comes after the CBI found irregularities in the PSU chief selection process
after Syndicate Bank CMD SK Jain's arrest in August 2014 over graft charges.
The committee consisted of Secretary Expenditure, Secretary School Education and the RBI Governor.
NABARD to fund 100 crores for inland fishing activities in Orissa.
o National bank for Agriculture and Rural Development (Nabard) has launched Rs. 100 crore area
development scheme (ADS). Covering the five districts in Odhisa the scheme is launched for assisting in
inland fishing activities.
o Objective: The scheme will also increase employment and financial literacy.
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Kotak Mahindra bank has bagged the Best New Product award for the jifi digital account and runner up in
'Most Disruptive Innovator' category.
o KMB is the first Indian BFSI company to be awarded at the prestigious Global Distribution & Marketing
Innovation Awards by Efma and Accenture, in Barcelona, Spain.
o Kotak Mahindra Bank has over 641 branches and over 1,150 ATMs spread across 363 locations in the
country. The bank offers wide range of products and offers to its customers satisfying their needs and
requirements.
o Founder: Uday Kotak.
o Chairman: Shankar Acharya.
BOM bank tied up with Ashok Leyland to finance customers.
o Bank of Maharashtra has tied up with the Hinduja Group flagship company Ashok Leyland. The bank has
planned to work with Ashok Leyland and offer better financing offers in purchasing vehicles.
o
All foreign bank accounts will be assessed by March 2015: AG.

o With the Centre submitting a list of 627 account holders in foreign banks to Supreme Court in the
blackmoney case, Attorney General Mukul Rohatgi said that the deadline for investigation under the
Income Tax Act into these accounts is 31st March 2015.
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October 29
5 major Banks signed MOU with state govt. for ''sale of sand'' in Andhra Pradesh.
o The five banks namely State bank of India, Andhra bank, State Bank of Hyderabad, syndicate bank and
Indian bank will open a separate account for sand mining.
o It has been reported that the rates of the sand will be fixed and consumer will get the amount deposited
as per the rate fixed and will get the receipt. Using the receipt and their Aadhaar card, customers can book
sand from any Mee Seva centre or IKP-SERP website, from this the consumer will get the sand from the
nearest closest to his place.
o The mining and sale of sand has been entrusted to self-help groups (SHG) as part of the campaign
''Pedarikam Pai Gelupu''.
o Through this MOU the banks will help the govt. in sales of sand. The rate of the sand is yet to be decided.
The rate will be uniform all across the state.
State Bank of Travancore has come up with a vigilance awareness week.
o Managing director of the bank Mr. Jeevandas Narayan initiated the week by flagging off a mounted which
displays a poster with a message against corruption.
o ONGC Videsh inks pact to acquire stake in two Vietnamese oil blocks.
o ONGC Videsh (OVL), the overseas arm of state-run Oil and Natural Gas Corp (ONGC), signed an agreement
to pick up to 50 per cent stake in two exploration blocks of PetroVietnam in the South China Sea.
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October 30
Canara Bank to help the farmers with warehouse receipt financing.

o In order to avail this facility to the farmers the bank has decided to work with Origo Commodities, a postharvest management services company.
o This facility will help a farmers a lot. The farmers will be provided with the financial assistance to avoid the
problem of Distress sale of their produce. Through this MOU the bank will offer the facility across 15
states of the country including Origo Commodities, a post-harvest management services company.
o This will help the farmers to enhance their standard of living and increase in the yields. Canara bank
expects to have good business of nearly Rs. 1000 crore under this warehouse receipt financing.
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He said that the court directed that the sealed envelope with the names be given to the Special
Investigation Team (SIT) and also allowed the Centre to put its "problems regarding treaties with foreign
nations" before the SIT.
o After that we shall request them to submit the report in the court by November 30.
o There are about 627-628 accounts along with a status report which we have submitted in the Supreme
Court today in a sealed cover. Last date for investigation and assessment into all these accounts is March
31, 2015.
ING Vysya Bank CEO Shailendra Bhandari resigned.
o Managing Director (MD) and Chief Executive Officer (CEO) of ING Vysya Bank Shailendra Bhandari on
resigned from his post after taking charge of the Bangalore-based private lender.
o He will continue to be in the office till 31 January 2015. However, Bhandari's term was schedule to end in
August 2015. He took charge of ING Vysya Bank in August 2009.
o The appointment of Uday Sareen as MD & CEO of ING Vysya Bank is now subjected to approval of Reserve
Bank of India.
o
October 31
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Canara Bank signed MOU with Origo Commodities.

o In order to help the farmers with warehouse receipt financing this facility to the farmers the bank has
decided to work with Origo Commodities, a post-harvest management services company.
o This facility will help a farmers a lot. The farmers will be provided with the financial assistance to avoid the
problem of Distress sale of their produce. Through this MOU the bank will offer the facility across 15
states of the country including Origo Commodities, a post-harvest management services company.
o Headquarters : Bengaluru.
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November 2014
November 1
12000 ATMs in offsite areas connected to the rural bank branches: Hughes network.
o Hughes has connected 12,000 ATMs of the offsite areas to the rural bank branches in the country. This
initiative will assist the govt. in achieving the financial inclusion plan.
o Many banks including Punjab National Bank, HDFC Bank, Oriental Bank of Commerce, Bank of Baroda, IDBI
Bank, Dena Bank, Punjab & Sind Bank will also set up new contracts with the hughes network.
o The Hughes stated that it is pride moment for the company to connect the ATMs in the offsite regions.
Hughes offers safe and secure network. There are total number of 50,000 ATMs and bank branches
connected by Hughes satellite.
o Hughes Network Systems is subsidiary of Gaithersburg, Maryland (USA).
RBI allowed Urban cooperative bank to act as PAN Service agents.
o RBI has now permitted the urban cooperative banks to act as the PAN Service agents. Earlier only well
managed were allowed to work as the PAN Service agents.
o RBI has instructed that With a view to expanding the scope of fee-based services offered by UCBs, it has
now been decided to permit all UCBs to act as PAN Service Agent (PSA) by entering into a tie-up with any
agency authorised by Income Tax Department.
o Condition : RBI has also instructed that the NPA (Non-Performing Asset) of the UCBS should not exceed
more than 3% and the gross NPAs should be less than 7%.
RBI and United Bank of India conducted financial literacy camp at Ukhrul.
o The aim of such camps is to aware the people regarding banking and its advantages. The people are being
taught about how they can open savings account and can safely save their money. Members from different
SHGs from various parts of Ukhrul took part in the camp.
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November 3
BMB bank launched new product.

o The BMB bank has also introduced BMB Dhanvarsha 555 product for the women which will offer an interest
rate of 9.70%. The bank reported that bank is trying to reach the backward and rural areas through
establishing new branches in such areas.
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November 4
UBI decides to continue with five free ATM transactions for non-home ATM transitions.
o The United Bank of India (UBI) decided to continue with five free ATM transactions per month (including
non financial ones) at other bank ATMs for all savings account holders in both metros and non-metros.
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HDFC to charge customers after 5 free transactions.

o HDFC bank has announced that bank has decided to charge its customers after five transactions from its
own ATM and after 3 in the metro cities.
o Note: HDFC is the first one to charge the customers for making transactions from its own ATM. The rule will
applicable from 1st December,2014.
About RBIs allowance to charge on ATM transitions.
o As per the new guidelines of the Reserve Bank of India (RBI), banks in six metros New Delhi, Mumbai,
Chennai, Kolkata, Hyderabad and Bangalore are free to charge other bank customers beyond 3 ATM
transactions per month. Banks have also been allowed to restrict free transactions to 5 for customers at its
own ATM network.
o Banks are free to limit the free transactions as per their convenience. Hitherto ICICI bank has allowed its
customers to enjoy unlimited free transactions from its own ATM. Usually other banks are not charging
customers for making transactions from their own banks. For salary and savings account customers the
bank has planned to charge Rs. 20 and Rs. 8.5 plus taxes per transaction for non-financial transactions, such
as balance enquiry, change of PIN, mini statement, etc.
November 5
HDFC became first listed Indian company to have 75% shareholding by FIIs.
o The mortgage financier HDFC became the first listed Indian company among the 30 SENSEX firms to have
more than 75 percent shareholding by Foreign Institutional Investors (FIIs).
o It happened after the FIIs raised their stake in the company to a record-high of nearly 78 percent during the
July-September 2014 quarter.
About FII &FDI
Foreign investment of 10 per cent or more in a listed company will now be treated as FDI.
If the stake is not raised to 10 per cent or above, then the investment can be treated as portfolio
investment. Foreign portfolio investors include foreign institutional investors (FIIs) and qualified
foreign investors (QFIs).
Note : Committee of defining FDI & FII is headed by ex- finance secretary Arvind Mayaram
RBI asks banks to alert customers before clearing suspicious (or) high value cheques
o To prevent rising cheque-related fraud cases, the Reserve Bank of India has asked banks to alert the account
holders by a phone call and contact the base branch in case of non-home cheques before clearing
suspicious or high value payments.
o The RBI also asked banks to send an SMS alert to payer or drawer when cheques are received for clearing
and examine cheques under UV lamp for clearance beyond 2 lakh rupees. The apex bank, further, said
multi-level checking should be done before clearing cheques above 5 lakh rupees.
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November 6
Govt. cancelled out its plan of UBI merger with IDBI.

o Last week govt. declared to cancel out their plan to merge United Bank of India and IDBI bank. The govt. is
now in no mood to merge this bank. Is it being informed that there is no benefit in merging the two week
banks, rather it will create more problem in the banking industry.
o To merge United Bank, the Bank Nationalization Act has to be amended, which may be difficult so the govt.
is looking for the further steps what possible can be done but the finalized decision has not been revealed
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yet. Both the banks reported loss last year but the merger would not be so easy. Till the being it is reported
that govt. gives up its plan to merge the two banks.
BTI payments pvt. Ltd has launched 500 India1 white-label ATMs (WLAs) in the country. Lately BTI has
launched its 500th ATM n Guntur district Andhra Pradesh.
o BTI is joint venture between the Banktech Group and ICICI Venture. The company has rolled out total 500
WLAs. WLAs work as the normal ATMs, helping the customers to make the banking transactions. Further
the company has planned to come up with 9000 more ATMs to be set up all across the country.
November 7
RBL bank awarded with the global Growth company.

o The bank has been recognised by the World Economic Forum as a ''Global Growth Company'' (GGC) 2014.
o The effective growth of the bank in the banking sector led the bank to be recognized as the Indian Company
with the fastest growth in the financial sector. For the prominent growth development the bank has been
awarded with the Global growth company. Its an honorable moment for the bank to achieve this award.
Axis Bank signed MOU with NH bank to enhance relationship with South Korea.
o South Korea leg of Axis bank has signed a MOU with NongHyup Bank (NH Bank). Through this MOU the bank
wants to enhance cooperation in treasury, trade and other business between India and South Korea.
o Through this the banks expects to develop better mutual understanding and flourish through business
cooperation. It has been also informed that this partnership would act as a bridge between customers of
two banks. This will assist the bank to build to trade and economic relationship with the bank.
Axis Bank Limited was formerly UTI Bank.
November 8
SBI, HDFC, Axis has announced to charge Rs. 20 after 3rd transactions.
o Finally the three leading banks of the country have decided to charge a sum of Rs. 20 after the free
transactions in Metro cities. SBI, Axis, HDFC banks have capped the free transactions to three in the six
metro cities.
o The customers in Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad would be required to pay Rs. 20
from the 4th transactions onwards. RBI has announced to cap the free transactions to three in the metro
cities but the banks were allowed to limit the free transactions accordingly.
o The three banks have decided to go with the Apex bank and implement the rule from 1st December
onwards.
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November 9
S&P downgraded credit rating of Indian Overseas Bank to speculative grade.

o S&P revised its assessment of the bank's risk position to weak from moderate. Accordingly, it lowered the
rating of IOB to BB from BB+ on weak asset quality. The rating will remain weak over the next 12 months.
o The rating continues to reflect IOB's adequate business position, moderate capital and earnings, above
average funding, and strong liquidity.
o Reason for the decision
The bank's exposure to high-risk sectors, such as iron and steel and textiles, is greater than that of
other banks.
The bank's reported non-performing loan ratio rose sharply to 7.3 per cent.
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November 10
PM launches Jeevan Pramaan a Digital Life Certificate for Pensioners.

o Prime Minister, Narendra Modi, launched "Jeevan Pramaan" - an "Aadhar-based Digital Life Certificate" for
pensioners, in a move that could eventually benefit over a crore pensioners.
o Prime Minister Narendra Modi said that after the push towards self-certification, this digital life certificate
was another enabling mechanism which would benefit the common man.
o The proposed digital certification will do away with the requirement of a pensioner having to submit a
physical Life Certificate in November each year, in order to ensure continuity of pension being credited into
his account.
o The Department of Electronics and IT has developed a software application which will enable the recording
of the pensioner's Aadhar number and biometric details from his mobile device or computer, by plugging in
a biometric reading device.
o Key details of the pensioner, including date, time, and biometric information will be uploaded to a central
database on real-time basis, ultimately enabling the Pension Disbursing Agency to access a Digital Life
Certificate.
November 11
IFC Issues First Masala Bonds in London.

o IFC, a member of the World Bank, issued a 10-year, 10 billion Indian rupee bond (equivalent to $163 million)
to increase foreign investment in India, mobilizing international capital markets to support infrastructure
development in the country.
o The Masala bonds mark the first rupee bonds listed on the London Stock Exchange.
o They are the longest-dated bonds in the offshore rupee markets, building on earlier offshore rupee
issuances by IFC at three-, five-, and seven-year maturities.
o Proceeds from the offering will support a forthcoming infrastructure bond issuance by Axis Bank.
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November 12
Kerala became first state with bank accounts for all families.
o Kerala became the first state in the country to have bank accounts for all families under Pradhan Mantri Jan
Dhan Yojna (PMJDY).
o A formal declaration to this effect was made by Kerala Finance Minister KM Mani at the State-Level
Bankers Committee (SLBC) meeting in Thiruvananthapuram on 11 November 2014.
o Under the PMJDY, Kerala has opened about 13 lakh new accounts and has mobilised 326 crore rupees
through intensive financial literacy campaigns launched under the aegis of the State Level Bankers
Committee (SLBC).
o Note: Pradhan Mantri Jan Dhan Yojna is a mega financial inclusion plan aimed at bringing poor financially
excluded people into the banking system by providing them bank accounts and debit cards.It was launched
on 15 August 2014 by Prime Minister Narendra Modi.
Banks went for strike on 12th November.
o Reason : To protest against the delay in the wage revision the banks are striking for the whole day.
o BackGround:
As per the UBFU demand they wanted 23% hike n the wages where as IBA has stated that they cannot
make it more than 11%. Since the demands of the UBFU remained unresolved they have planned not
to work for the entire day. As a result all the bank will not be working on 12th November, 2014.
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Federal Bank bagged CNBC TV18 Financial Inclusion Award.

o The bank has shown an excellent performance and contributions towards financial inclusion, in addition to
this bank has worked for the enhancement of the backward sections of the society. Bank is setting up an
example for the other banks as well.
o Recently, bank has also rolled out Aadhaar-enabled branchless banking in the 'Common Service Centres'
that will help the people to access banking more easily. Seeing all the efforts made by the bank the bank has
been awarded with this award.
ICICI Bank customer can recharge Delhi Metro cards with SMS.
o Delhi Metro commuters will now be able to recharge their smart cards by sending SMS to a designated
number, courtesy a new facility launched on Thursday.
o To avail the service, passengers should have an account with ICICI Bank with their mobile number
registered.
o The service is available at 71 Metro stations which include Janpath, Mandi House, INA, Tilak Nagar,
Karkardooma, AIIMS, Saket and Noida City Centre.
o Passengers need to send a SMS from their mobile phones to 9222208888 using the number registered with
the bank account.
RBI tightens norms for shadow banks.
o With a view to streamline the regulations for the sector, the RBI also revoked temporary suspension on
issuance of Certificate of Registration (CoR) to companies that want to conduct business of non-banking
financial institution (NBFI), which will start once again.
o Net owned funds
New: It will be mandatory for all NBFCs to attain a minimum net owned fund (NOF) of Rs. 2 crore by
the end of March 2017.
At present : The NOF requirement is at Rs. 25 lakh. In a phased manner, the NBFCs would be required
to raise it to Rs. 1 crore by March 2016 and to further double it to Rs. 2 crore by 2017.
Note : NBFCs failing to achieve the prescribed ceiling within the stipulated time period shall not be
eligible to hold the CoR (Certificate of Registration) as NBFCs.
o Obligations for NBFC-to-take deposits
For well rated NBFC: The limit for acceptance of deposits across the NBFC sector reduced the same for
rated asset finance companies from four times to 1.5 times of NOF, with immediate effect.
For un-rated NBFC: An unrated AFC or NBFC having NOF of Rs. 25 lakh, complying with all the
prudential norms and maintaining capital adequacy ratio of not less than 15 per cent, was allowed to
accept or renew public deposits not exceeding 1.5 times its NOF or up to Rs. 10 crore, whichever is
lower.
For NBFC, well rated & all norms are met: Further, AFCs which are rated and complying with all the
prudential regulations were allowed to accept deposits up to four times their NOF.
o Systemic Important NBFC
NBFCs-ND will be categorised into two broad categories NBFCs-ND (those with assets of less than Rs.
500 crore) and NBFCs-ND-SI (those with assets of Rs. 500 crore and above).
The threshold for defining systemic significance for NBFCs-Non-Deposit taking-Systemically Important
(NBFC-ND-SI) has been revised to Rs. 500 crore from Rs. 100 crore.
o CRAR
NBFCs-ND with asset size of less than Rs. 500 crore are exempted from the requirement of maintaining
CRAR and complying with Credit Concentration Norms.
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Old Norms: For deposit and non-deposit taking NBFCs, Capital to Risk (Weighted) Assets Ratio or CRAR,
which includes tier I capital of 7.5 percent, is 15 percent at present.
New Norms: All NBFCs-ND which have an asset size of Rs.500 crore and above have to raise the tier I
capital to 8.5 percent by end of March 2016 and 10 percent by 31 March 2017.
Note : However, the minimum Tier 1 capital requirement for NBFCs primarily engaged in lending
against gold jewellery remains unchanged at 12 per cent for the present.
Towards provisioning of standard assets
Old Norms: every NBFC is required to make a provision for standard assets at 0.25 percent of the
outstanding.
New Norms: RBI said that NBFCs would be required to raise it to 0.3 percent by end of March 2016;
0.35 per cent by March 2017 and to 0.4 percent by end of March 2018.
NPA identification
New norms: The asset classification norms for NBFCs-ND-SI and NBFCs-D are being brought in line with
that of banks, which are subject to '90 days' overdue norms for identification of non-performing assets
(NPAs), in a phased manner.
Old Norms: An asset is classified as an NPA by an NBFC when it has remained overdue for a period of
six months or more for loans; and overdue for 12 months or more in case of lease rental and hire
purchase installments, as compared to 90 days for banks.
November 13
Banks have opened 6.51 crore new accounts under PMJDY till now.
o Recent data have shown that banks especially rural and public sector banks have opened nearly 6.51 crore
basic savings bank deposit accounts.
o Public sector banks and regional rural banks accounted for 81 per cent and 16 per cent, respectively, of the
total accounts opened under PMJDY.
o Target of PMJDY: opening 7.5 crore bank accounts for un banked families by January 26, 2015
Yes Bank organized Saaf Suthra Bharat Campaign.
o Yes bank has recently launched 'Saaf suthra Bharat' campaign in Sri Nagar. The bank successfully launched
this campaign contributing to the Swachch bharat abhiyan.
Banking strike hampered many operations across the country.
o The strike was carried out in the some 75,000 branches of 27 state-run banks. The strike took place across
the several branches all across the country.
o On the day clearance of nearly 10 million cheques was delayed. In addition to this the total volume of the
Indian banking industry is more than 155 lakh crore ($2.5 trillion), which has been completely blocked by
the day-long strike.
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November 14
New co branded credit card rolled out by American express.

o American express has recently rolled out a new credit card in association with makemytrip.
o The new card is loaded with freebies including a Rs. 9,000 welcome voucher and also a 2.5 per cent fuel
surcharge waiver at HPCL outlets. In addition to this card will facilitate the customers to make the payments
easily with installments facility along with the attractive interest rates.
o While Makemytrip will offer a welcome bonus of Rs. 9,000, which will be in nine installments of Rs. 1,000
each per month depending on the transaction and make trip will also offer the cash back facility.
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November 17
Two new savings account for minors: Andhra bank.

o AB Little Stars for the children in the age group of 10 to 14 years, and the other one is AB Teens this scheme
is for the children of age 15 to 18 yrs.
o It has been reported that the two schemes will be promoted by 60 specially chosen brand ambassadors in
30 schools in the twin cities of Hyderabad and Secunderabad attracting more number of children towards it.
o The children will be provided with ATM cum debit card facility. In the AB little stars the parents can operate
the account while in the AB teens the teenagers will themselves handle the account.
November 18
Axis Bank hits overseas debt market with $500-mn issue.

o Axis Bank hit the overseas debt market with a benchmark issue to raise at least $500 million in a 5.5-year
money, merchant banking sources said in Mumbai.
Corporation Bank bagged two Awards.
o Corporation bank has won Indira Gandhi Official Language Awards.
o The bank has got the first prize under Town Official Language Implementation Committee (TOLIC) category
and second prize under Nationalized Banks category.
o Headquarters: Mangalore.
o Chairman: Shri Sadhu Ram Bansal.
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November 19
Axis Bank launches ''smart self-service terminal''.

o Smart-self-service terminal will enable customers to deposit as well as withdraw cash from the same
machine.
o Customers can initiate a deposit transaction through the smart self-service terminal even without using a
debit card and will receive instant credit for the deposited amount.
o There is no cap on the amount of cash deposited by the customer through these terminals, provided his/her
PAN details are available with the bank.
o Note : Axis Bank partners with Visa to launch industry first-to launch e-KYC service.
Note: first to launch an electronic Kisan Card on the RuPay platform.
Government needs to infuse nearly Rs. 2.4 lakh crore in state-run banks by March 2019: RBI.
Government needs to infuse as much as Rs. 2.4 lakh crore ($38.78 billion) into state-owned banks by endMarch 2019 to meet different kinds of capital requirements including Basel III, provisioning for asset quality,
and additional risks.
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A joining fee of Rs. 750 will be charged for the card and from the second year onwards the charge which will
go up to Rs. 1,500 per annum.
ICICI Bank raises over $95 mn via Chinese debt market.
o ICICI Bank raised 600 million yuans from the Chinese debt market (Dim Sum bonds) or a little over $95
million, at a coupon of 4 per cent, merchant banking sources said in Mumbai.
o This is the fourth time that the Mumbai-based lender has tapped the Dim sum bond market and has so far
raised 2,050 million yuans.
o The issue is part of the bank's $7.5 billion medium term note programme.
o
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November 20
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Kotak Mahindra bank to acquire ING Vysya Bank.

o Kotak Mahindra Bank informed the BSE after market hours that the board of directors of the company had
considered and granted its approval for the amalgamation of ING Vysya Bank with Kotak Mahindra Bank in
an all-share deal.
o The Board has approved the share swap ratio of 725 equity share of Rs. 5 each of Kotak Mahindra Bank for
every 1,000 equity shares of Rs. 10 each held in ING Vysya Bank.
o The merger will make Kotak Mahindra the fourth largest private lender after ICICI Bank, HDFC Bank and Axis
Bank.
o Note : The last merger to happen in the private sector banking space was in 2010 when Bank of Rajasthan
was acquired by ICICI Bank.
SBI to lend $1 billion to Adani Group to build Australian coal mine.
o The infrastructure conglomerate, whose founder, Gautam Adani, has signed a memorandum of
understanding for a loan of up to $1 billion from the SBI for the mine, rail and port project, which it aims to
build by end-2017.
o Note : Adani Mining won Australian government's approval to build a whopping $1.94 billion (Aus $2.2
billion) rail line for its Carmichael coal mine project, Queensland.
RBI allows FIIs to buy equity in Yes Bank.
o The Reserve Bank today said FIIs can buy equity shares in private lender Yes Bank as shareholding by foreign
investors has gone below the prescribed limit.
o The RBI has removed Yes Bank from its caution list of monitoring foreign investment following the dip in
shareholding by foreign investors below the prescribed limit.
Exim Bank to set up Rs. 1,500 crore fund to assist ship-building industry.
o To give a boost to ship building in the country, the Export-Import Bank of India (Exim Bank) is planning to set
up a dedicated Rs. 1,500 crore fund with Government support.
o This proposal comes in the backdrop of the slump in global demand for ships and boats in 2012 and 2013
and foreign vessels accounting for a lions share (almost 90 per cent) in overseas cargo traffic handled at
Indian ports.
o PM Jan Dhan Yojana reflects poverty as 74% accounts hold zero balance.
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Banks should start looking for ways to generate more internal capital as the leeway to get additional funds
from the government would be limited due to the ongoing fiscal consolidation process, Mundra said.
o Indian government's holding in state-run banks ranges from 56.26 per cent to 88.63 per cent, and one of
the options to generate capital is to lower stakes in banks. According to the Banking Regulation act,
government holding in state-run banks cannot fall below 51 per cent.
o FDI allowed Public Sec. Banks: 20.
o FDI allowed Private Sec. Banks: 74.
ADB approves $350 mn for upgradation of roads in MP
o Asian Development Bank (ADB) will provide $350-million loan assistance for upgradation of district roads in
Madhya Pradesh.
o The project will upgrade 1,600 km of major district roads in the State through lane widening, surface
improvements, and strengthening of culverts and bridges.
o This is to help cut travel time, improve traffic flow and road safety, and provide better access to markets
and social services for poor and remote communities.
o
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At least, 5.3 crore of the total 7.1 crore bank accounts opened under the Pradhan Mantri Jan-Dhan Yojana
(PMJDY) have 'zero balance' even as the government has deposited Rs. 5,400 crore in accounts under the
scheme.
Note: PMJDY scheme was announced Modis first Independence Day speech on 15 August 2014.
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Dear Friends, All the study materials of Gr8AmbitionZ.com are free. You need not
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Bank of Maharashtra (BoM) launched MahaSecure, a digital banking app.

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

ICICI Bank has launched co-branded card with DMRC.

Canara Bank has opened a 'Canara Shikhar Branch' in Kerala.

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

Government gave USD 579 mn additional penalty on RIL.

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

RECENT BANKING UPDATES FOR IBPS CLERKS IV

About Coir Board:

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

EPFO will now be allotted with a Universal Account Number (UAN).

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

World Bank commits $15-18 bn to India in next 3 years.

Amount of Penalty (in lakh)

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

Arun Jaitley to address RBI board on August 9.

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

RBI cancels Certificate of Registration of M/s Insilco Merchants Private Limited.

Axis bank has initiated MyIdeaOfProgress.

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

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RECENT BANKING UPDATES FOR IBPS CLERKS IV

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RECENT BANKING UPDATES FOR IBPS CLERKS IV