Escolar Documentos
Profissional Documentos
Cultura Documentos
Support@affairscloud.com
RBI revises supervisory action framework for Primary (Urban) Co-operative Banks
Inorder to better manage the stressed UCBs, Reserve Bank of India (RBI) has released its final
Supervisory Action Framework (SAF) tightening norms for Primary (Urban) Co-operative Banks
(UCBs). The revised rules include threshold limits for asset quality, profitability and Capital to Risk-
weighted Assets ratio (CRAR). All such actions are taken under section 35A of the Banking Regulation
Act, 1949 (as applicable to co-operative societies). Under the revised rules, UCBs may be placed under
the framework, if it incurs two consecutive years of losses. Read full details here: RBI revises
supervisory action framework for Primary (Urban) Co-operative Banks
India's foreign exchange reserve touches a record level of $457.46 bn: RBI
According to the “ Bulletin Weekly Statistical Supplement – Extract” released by the Reserve Bank of India
(RBI), India’s foreign exchange (Forex) reserves rose by $ 2.520 billion to a record $ 457.468 billion
during the week ended 27 December 2019. The main reason for increase in foreign exchange reserves is
the increase in foreign exchange assets, which is the main component of forex.
Foreign Currency Assets (FCA): Foreign currency assets rose to $ 424.936 billion.
Gold Reserve: Country's gold reserves also increased to $ 27.392 billion.
SDR: India’s special drawing rights (SDR) with the International Monetary Fund (IMF) declined
by $ 2 million to $ 1.441 billion.
Reserve Position in the IMF: India’s reserve position with the IMF Fund increased to $ 3.7 billion.
RBI curbs functions of Sri Guru Raghavendra Sahakara Bank; withdraw limit set to Rs.35000
Reserve Bank of India’s (RBI) Chief General Manager Yogesh Dayal has issued the directive which
curbed Sri Guru Raghavendra Sahakara Bank, a private bank in Bengaluru, Karnataka from doing
Central govt raised India Overseas Bank's authorized capital to Rs 25,000 crore
The central govt in consultation with the Reserve Bank of India (RBI)has announced an increase in the
authorized capital of Indian Overseas Bank (IOB) to Rs 25,000 crores from the previous authorized
capital of Rs. 15,000 crores, thus making an increase by Rs. 10,000 crores.
RBI permits UPI transactions for recurring payments & releases framework for imposing penalties on
payment system operators
In a view of the promotion of digital payments, RBI has permitted processing of e-mandate for recurring
payments through UPI (Unified Payments Interface) under Section 10 (2) read with Section 18 of
Payment and Settlement Systems Act, 2007 (Act 51 of 2007). It also released framework for imposing
penalties on payment system operators/banks under the Payment and Settlement Systems Act, 2007
for not complying with regulatory requirements. It ensures safety and security to various stakeholders,
including customers. The monetary penalty levied for a contravention shall not exceed Rs 5 lakh or
double the amount of contravention or default, whichever is higher,Read full details here: RBI permits
UPI transactions for recurring payments & releases framework for imposing penalties on payment
system operators
RBI formulates National Strategy for Financial Inclusion for the period 2019-2024
Reserve Bank of India (RBI) under the aegis of Financial Inclusion Advisory Committee (FIAC) has set
up a 5 year plan of formulation of National Strategy for Financial Inclusion (NSFI) for the period 2019-
2024. This has been done keeping in view the global trend of financial inclusion which acts as a key
driver of economic growth.The national strategy plan, i.e., NSFI was finalised and approved by Financial
Stability Development Council (FSDC) and the final documents were released by RBI deputy director
Mahesh Kumar Jain at the high level meeting on Financial Inclusion for the North East region at
Agartala, Tripura.Read full details here: RBI formulates National Strategy for Financial Inclusion for the
period 2019-2024
RBI tightens norms for debit, credit card issuance & usage to improve security
In view of the increasing cases of cyber fraud, India’s central bank, the Reserve Bank of India (RBI) has
framed new rules under “Enhancing Security of Card Transactions” to further protect debit, credit card
transactions. These directions are issued under Section 10(2) of the Payment and Settlement Systems
Act, 2007 (Act 51 of 2007) & will come into effect from 16 March,2020. Under this, now transactions at
ATMs (Automated Teller Machine) and PoS (Point of Sale) will be done through domestic cards. RBI
also directed banks and other card issuing companies to allow their customers to switch on and off
their debit and credit cards. Read full details here: RBI tightens norms for debit, credit card issuance &
usage to improve security
RBI hikes short-term debt investments limit for FPI to 30% from 20%
With the aim to boost foreign inflows, India’s central bank, the Reserve Bank of India (RBI) has
increased the short-term investments by foreign portfolio investors (FPIs) to 30 % from 20 % of
the total FPI investment in Central government securities including Treasury Bills(T-bills) / state
development loans. This rule also applies in corporate bonds. These directions are issued under
sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Now FPIs can
also invest up to Rs 1,50,000 crore through voluntary retention route (VRR) as against the earlier limit
of Rs 75,000 crore. Read full details here: RBI hikes short-term debt investments limit for FPI to 30%
from 20%
UCBs hit by around 972 cases of fraud worth Rs 221 crore in past 5 fiscals: RBI
According to the India’s central bank, the Reserve Bank of India (RBI), there have been about 972
cases of fraud in the urban cooperative banks (UCBs) of the country in the last 5 fiscal years (FY), in
which banks have incurred losses of 221 crores. As per RBI, banks need to register these cases of
rigging with legal investigating agencies. Banks should decide the responsibility of staff in such cases
and take strict action & punish the guilty. Read full details here: UCBs hit by around 972 cases of fraud
worth Rs 221 crore in past 5 fiscals: RBI
RBI increased Investment Limits Under Voluntary Retention Route (VRR) to Rs 1.5lakh crore
Based on the feedback received from the Voluntary Retention Route (VRR) scheme introduced by the
Reserve Bank of India(RBI) in 2009, the central bank(RBI) in consultation with the govt. made certain
amendments in the scheme to increase its operational flexibility. As per the amendments, the
investment limit under VRR has now been increased to Rs 1,50,000 crores (1.5lakh crores) from
BANKING TECHNOLOGY
APP NAME LAUNCHED BY KEY NOTES
MANI (Mobile Aided Note Identifier) Shri Shaktikanta launched a mobile app named “MANI”
Das, 25th Governor (Mobile Aided Note Identifier) that would
of Reserve Bank help visually impaired people to identify
(RBI) denomination of currency notes correctly.
Click here
myApps HDFC (Housing For the 1st time has launched ‘myApps’,
Development which is a suite of white-label apps to
Finance benefit urban local bodies, housing
Corporation) Bank, societies, local clubs and gymkhanas and
An Indian banking religious institutions. The myApps was
and financial launched at an event in Mumbai,
services company Maharashtra by Smita Bhagat, Country
Head, Government & Institutional
Business, Start-ups and E-Commerce,
HDFC Bank and Sunali Rohra, Executive
Vice President, Government and
Institutional Business, HDFC Bank.
ICICI Bank API Banking ICICI (Industrial Launched India’s largest API (application
portal’(https://developer.icicibank.com/) Credit and programming interfaces) Banking portal,
Investment which consists of 250 APIs & allows
Corporation of bank’s partner companies across the
India) bank, an globe to sign up on it, create an
Indian multinational application, select the application, test it
banking and out and get the sample code. API is a
financial services software intermediary that allows two
company applications to talk to each other. Click
here
Ask Lakshmi City Union Bank For the 1st time India, the City Union
(CUB) Limited Bank (CUB) Limited, one of the leading
Indian banks in India, has launched a
multilingual voice-enabled mobile
banking application. Now the CUB
customers can converse with the chat-bot
‘Ask Lakshmi’ of the app in Tamil,
English, Hindi / Telugu language for
their general banking queries including
transactions like Balance enquiry, mini
statement, fund transfer over voice/text
instructions. The chat-bot Lakshmi
operates on Artificial Intelligence (AI)
platform.
Export-Import Cuba $75 million Export-Import (Exim) Bank, the premier export finance
(Exim) Bank (over Rs 500 institution of India has given a $75 million (over Rs 500
crore) crore) line of credit (LoC, a soft loan/loan with low-
interest rate) to Cuba for financing 75 MW (megawatt)
Photovoltaic Solar Parks. The Agreement in this regard
between Exim Bank & Banco Exterior De Cuba, a
nominated agency of the Government of Cuba, signed on
July 16,2019 & is effective from December 12,2019.
Kfw, Germany Andhra Rs.711 crore For expanding the climate-resilient Zero-Budget Natural
Development Pradesh Farming (ZBNF) in the state for the next five years. To
bank take up the insurance scheme, Andhra Pradesh
government will spend Rs 304 crore in addition to
encourage 2.39 lakh farmers in 591 village panchayats.
The state government under takes ZBNF along with the
Rashtriya Krishi Vikas Yojana (RKVY) and Paramparagat
Krishi Vikas Yojana’s (PKVY) of the Centre government
and technical supported by Azim Premji Philanthropic
Initiatives. Click here
World Bank Govt. of $88 million For implementation of the Assam Inland Water Transport
(WB) Assam Project (AIWTP) to modernize passenger ferry sector of
Assam which runs on rivers including the Brahmaputra
river in Assam. A loan of $88 million from WB’s
World Bank Govt of $210 million For Maharashtra's Agribusiness & rural
(WB) Maharashtra transformation project. This project will help the
farmers in Maharashtra to take part in competitive
agriculture value chains, enhance agribusiness
investments thereby increasing productivity of
commodities. All 36 districts of Maharashtra will be
implemented with the project and would benefit nearly 1
million farming households. This loan is from the WB’s
International Bank for Reconstruction and Development
(IBRD) has a grace period of 6 years and a maturity
period of 13.5 years.
Bank of Baroda JM Financial Home Bank of Baroda (BoB), an Indian Multinational, public sector Bank
(BoB) Loans Limited has signed a co-lending partnership agreement with JM Financial
(JMFHL) Home Loans Limited (JMFHL), the housing finance arm of JM
Financial Group, to provide retail loans to home buyers. This tie up
will boost the credit delivery to customers & also promote home
buying field in India.
Paytm Payments CSC e-Governance CSC e-Governance services India ltd has signed a Memorandum of
Bank ltd (PPBL) services India ltd Understanding (MoU) with Paytm Payments Bank ltd (PPBL) for
selling FASTags. Through this MoU, FASTags will be sold through
the last mile network of 3.6 lakh CSCs (Common Service Centres).
This will help in enhancing govt’s vision of cashless and smooth
transit at toll plazas in the country. FASTags allows toll payments
directly from prepaid or savings account linked to it. The FASTags
work on Radio Frequency Identification (RFID) technology. Click
here
Indian bank Women Indian bank has signed a Memorandum of Understanding (MoU)
Entrepreneurs with Women Entrepreneurs Welfare Association (WEWA) of
Welfare Association Tamil Nadu(TN) to provide training and credit linkage to its
(WEWA) women entrepreneurs to establish business. The Indian bank will
provide loans to the WEWA members at discounted rates.
Training will be given to the WEWA members in the INDSETIs
(Indian Bank Self Employment Training Institutes)
IRDAI: Health insurance cover in the name 'Arogya Sanjeevani' mandatory for insurance companies
Insurance Regulatory and Development Authority of India (IRDAI) has mandated all the health and
General Insurance Companies (GICs) to offer 1st of its kind standardised health insurance products
(SHIP) namley “Arogya Sanjeevani” policy with effect from April 1, 2020.
Insurance limit: Minimum sum insured will be Rs. 1 lakh while the maximum sum insured limit
will be Rs. 5 lakhs. The health insurance plan should be offered with a policy term of one year.
Eligibility: Any person aged between 18-65 (inclusive of 18 & 65 years of age) eligible for the
Arogya Sanjeevani policy
Read full details here: IRDAI: 1st Health insurance cover in the name ‘Arogya Sanjeevani’ mandatory for
insurance companies
SEBI extends April 2022 deadline for separation of chairman & MD posts for top 500 listed entities
firms
Stock market regulator SEBI (Securities and Exchange Board of India) has extended the deadline for the
separation of the posts of Chairman and MD (Managing Director) or chief executive officer (CEO) for
500 listed companies by 2 years. Now this rule has to be followed by April 1, 2022. Its aim is to
separate the board and the management of the top companies.The rules to separate the post of
Chairman-MD are part of the recommendations of the Uday Kotak (MD of Kotak Mahindra Bank)
Committee appointed by SEBI on Corporate Governance.
Digital payments body NPCI launches blockchain-based 'Vajra platform' to make payments fast &
secure
National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments
has launched blockchain technology/ Distributed Ledger Technology (DLT) based “Vajra Platform” to
make payments fast & secure. It aims to offer automatic clearing and settlement of payments on NPCI
products such as unified payments interface (UPI) and Rupay card & will significantly reduce the need
for manual reconciliation. All the transactions undertaken by Vajra Platform using DLT follow real-time
clearing and settlement and will also help in Aadhaar authentication by the Unique Identification
Authority of India (UIDAI).Read full details here: Digital payments body NPCI launches blockchain-
based ‘Vajra platform’ to make payments fast & secure
Airtel joins hands with Bharti AXA to provide Rs 179 prepaid plan with life insurance of Rs 2 lakh
Bharti Airtel Limited (also known as Airtel), an Indian global telecommunications services company has
partnered with Bharti AXA Life Insurance Company Limited to offer Rs 2 lakh insurance cover to Airtel
users with every recharge of Rs 179 prepaid bundle. The new plan will be accessible at any Airtel retail
store or on the Airtel Thanks app. In case of insurance cover, the users taking this plan should be
between 18 and 54 years old.
NICL board approves its merger proposal with OICL & UIIC
The Board of National Insurance Company Limited (NICL) has approved its merger with Oriental
Insurance Company Ltd (OICL) and United India Insurance Company Ltd (UIIC). The merger would help
cut down costs and achieve economies of scale. In the General Budget for the financial year 2018-19, the
then Finance Minister (FM) Arun Jaitley announced the proposal for merger of the three government
general insurance companies. But the merger of these companies was not done due to poor financial
health. In December 2019, the government has infused Rs 2,500 crore in three insurers through the
supplementary demand for the first grant for 2019-20, to add Rs 2,500 crore.
Bajaj Finserv partners with Apollo Hospitals to launch health EMI cards to patients
Apollo Hospitals Group in collaboration with Bajaj Finserv has launched digitized “Health EMI Card”
which will be provided to patients and will be offered a credit limit of Rs.4 Lakhs. Nearly 600
procedures for patients will be covered. This partnership between Apollo and Bajaj Finserv has been
done to enable EMI (Equated monthly installments) financing for healthcare. The card will be accepted
in all the Apollo hospitals through India. It provides personal accident insurance cover of Rs. 1 lakh.
ICICI Lombard gets IRDAI approval to pilot 5 projects under Regulatory Sandbox
ICICI Lombard General Insurance Company Limited, one of the leading private sector general
insurance companies in India,has received Insurance Regulatory and Development Authority
(IRDAI) approval for 5 innovative applications and programs in its health and motor portfolio under
the Sandbox Project. This is the largest approval by IRDAI in terms of numbers given to a company
under the project. ICICI Lombard has got the approval for APP Monitored Diabetes Mellitus Wellness
Western Union joins hands with Airtel payments bank & Airtel Africa for money transfer service
Western Union Company has partnered with India’s largest integrated telecommunications services
company, Bharti Airtel’s 2 arms- Airtel Payments Bank & Airtel Africa Plc, to enable millions of
latter’s customers in India to receive international remittances in their bank accounts & and Mobile
Wallets across 14 countries in Africa. Airtel Payments Bank customers will be able to direct a Western
Union money transfer into their bank accounts 24/7 via their app in real-time. In collaboration with
Airtel Africa, this will enable over 15 million Airtel Money mobile wallet users to simply get any money
transfer received from across the world into their wallets.
Indian Bank launches credit products 'Corporate Loan' & 'Ind Surya Shakthi' for textile sector
Indian Bank has announced the launch of two tailor made credit products i.e., Corporate Loan and Ind
Surya Shakthi/ Indian Bank Solar which will be available across the country for the benefit of the
textile sector. The products were launched during a meeting with high officials of the textile industry
under the Indian Texpreneurs Federation (ITF), in association with the Federation of Indian Chambers
of Commerce & Industry (FICCI) in Coimbatore, Tamil Nadu.
Corporate Loan: Under it, the loans will be offered at affordable interest rates.
Surya Shakthi: It is a term loan to set up roof-top solar power plants for captive consumption
to boost the renewable energy utilisation culture in the textile sector.
Reserve Bank set to conduct Financial Literacy Week (FLW) 2020 from February 10–14
India’s central bank, the Reserve Bank of India (RBI) is going to conduct the Financial Literacy Week
(FLW) 2020 from February 10 – February 14, 2020 based on the theme “Micro, Small and Medium
Enterprises (MSMEs)”. RBI will also launch a centralized mass media campaign in February 2020 to
broadcast essential financial awareness messages to MSME entrepreneurs. RBI conducts FLW every
RBI grants 5-year CRR relief to banks for lending to auto, housing, MSMEs
In a major step to boost the credit growth, the Reserve Bank of India (RBI) has eased Cash Reserve
Ratio (CRR) requirement of commercial banks for 5- years. So now the banks would not be needed to
maintain the cash reserve ratio (CRR) for 5- years on their deposits for the amount equivalent to loans
lent to automobiles, residential housing, and micro, small and medium enterprises (MSMEs) between
31 Jan-31 July, 2020 from their net demand and time liabilities (NDTL) for maintenance of the CRR. The
banks can get first such exemption will be started on 14 February, 2020 for 6 months till July 31, 2020.
However, the net demand and time liabilities (NDTL) will be calculated as of January 31, 2020. RBI
grants 5-year CRR relief to banks for lending to auto, housing, MSMEs
RBI publishes draft framework for New Umbrella Entity (NUE) for retail payment systems
The Reserve Bank of India (RBI) published draft framework to set up new pan-India New Umbrella
Entity (NUE) for retail payment systems. It will be incorporated under the Companies Act, 2013 and
will be given authorization by Reserve Bank of India (RBI) under Section 4 of the Payment and
Settlement Systems Act, 2007 (PSS Act). At present, National Payments Corporation of India
(NPCI) is an umbrella organisation for retail payments systems. Read full details here: RBI publishes
draft framework for New Umbrella Entity (NUE) for retail payment systems
RBI board recommends aligning accounting year with fiscal year from 2020-21
The Central Board of Directors of the RBI (Reserve Bank of India) at its 582nd meeting recommended
aligning the financial year of RBI, currently July-June, with the government’s fiscal year (April-March)
from the year 2020-21. Now, the proposal is sent to the government for its approval. The meeting was
addressed by Finance Minister Nirmala Sitharaman. She was accompanied by Minister of State for
Finance Anurag Singh Thakur, Finance Secretary Rajiv Kumar and Expenditure Secretary T V
Somanathan.
RBI conducts 3- year Long Term Repo Operations (LTRO)’s for Rs.25,000 crore
Reserve Bank of India (RBI) has started the first tranche of Long Term Repo Operation (LTROs) by
conducting a three-year issue worth Rs 25,000 crore for which it received bids of more than Rs 1.944
lakh crore. The central bank has accepted bids of ₹25,035 crore. The RBI will conduct the second issue
for Rs 25,000 crore on February 24 which will have one-year tenor. LTROs aimed at providing cheaper
money to banks at the repo rate so that it can be used to boost credit growth. RBI is injecting Rs 1 lakh
crore into the banking system through auctions with long term maturity periods (compared to one day
repos) of 1 year and 3 year. Read full details here: RBI conducts 3- year Long Term Repo Operations
(LTRO)’s for Rs.25,000 crore
Kotak Mahindra Bank gets RBI’s approval for reducing the promoter’s stake to 26%
Kotak Mahindra Bank, an Indian private sector bank has received final approval from Reserve Bank of
India (RBI) to reduce the promoter’s stake to 26%. Along with this, the bank is moving towards
bringing back the case filed against RBI in the Bombay High Court (HC) for reducing the stake of
promoters. In August 2018, the bank proposed to issue preferential shares to reduce promoter’s stake
to 19.70%, which was rejected by RBI. The bank then challenged the RBI decision in the Bombay High
Court (HC).
RBI unveils 5 year National Strategy for Financial Inclusion (NSFI): 2019-2024
In order to promote financial literacy among customers and to provide access to formal financial
services in an affordable manner, the Reserve Bank of India (RBI) has released a National Strategy for
CIC increased 10.2% over the past 5 years despite growing digitization: RBI report
According to the Reserve Bank of India (RBI) study titled “Assessment of the progress of digitisation
from cash to electronic” cash payments are still the essence of transactions but digital payment are
also increasing rapidly. The parameters used for this assessment are the value of Currency in
Circulation (CIC) versus Gross Domestic Product (GDP), and the value of ATM withdrawals that take
place across the country.
The CIC across the country increased at a Compounded Annual Growth Rate (CAGR)
of 10.2% over the past 5 years, i.e., between the financial years (FY) 2014-15 and 2018-19.
The notes in circulation– NIC (CIC minus coins in circulation) increased at an average rate
of 14% between October 2014 and October 2016.
On the other hand the digital payments in the country have witnessed a CAGR of 61% and 19%
in terms of volume and value, respectively over the past 5 years.
Read full details here: CIC increased 10.2% over the past 5 years despite growing digitization:
RBI report
RBI allows Bandhan Bank to open new branches without prior approval
India’s central Bank, the Reserve Bank of India (RBI) has lifted the ban on Bandhan Bank & allowed
it to open new branches without prior permission. However, the RBI came up with some regulatory
conditions & directed the bank to order about 25 % of the total banking outlets to be opened in rural
areas where banking facilities are not available.
RBI introduced 12 indicators for calculating India’s growth by paper titled “Nowcasting Indian
GDP growth using a Dynamic Factor Model”
Reserve Bank of India (RBI) has came up with a new method of calculating India’s growth through a
Working Paper titled “Nowcasting Indian GDP growth using a Dynamic Factor Model” under the
RBI Working Paper Series, introduced in March 2011.The Paper is co-authored by Soumya Bhadury,
Saurabh Ghosh and Pankaj Kumar. The paper introduces the Dynamic Factor Model of calculating Gross
Domestic Product (GDP), using 12 indicators.
Here are the 12 indicators: Index of industrial production (IIP) –consumer goods, IIP- core
sectors, Automobile sales, Non-oil non-gold imports, Exports, Rail freight, Air cargo, Foreign
tourist inflows, Government tax receipts, Nominal Effective Exchange Rate (NEER), Sensex, and
Bank Credit.It should be noted that the above indicators are similar but not the same as the
dynamic factor models (DFMs) of Stock and Watson (1989). Read full details here: RBI
introduced 12 indicators for calculating India’s growth by paper titled “Nowcasting Indian GDP
growth using a Dynamic Factor Model”
RBI mandates banks to link all new floating rate loans to medium enterprises with external
benchmark from April 1,2020
In a bid to strengthen monetary policy transmission, India’s central bank, the Reserve Bank of India
(RBI) has ordered banks to link all their new floating rate loans to medium enterprises with
an external benchmark effective from April 1, 2020. The external benchmarks will include Reserve
BANKING TECHNOLOGY
APP NAME LAUNCHED BY KEY NOTES
Baroda Startup Banking Shri Rajiv Kumar, Finance Secretary Shri Rajiv Kumar has inaugurated
Finance Secretary the ‘Baroda Startup Banking’ service with the objective of
making Bank of Baroda (BoB) a preferred ally of startup
companies and connecting more than 2,000 startups over
the next 2- years. The initiative was launched
simultaneously in 15 cities across India. A total of 15
Baroda startup branches will be opened under this
initiative. It will provide banking products and services as
per the needs of startup companies.
Ka-ching HDFC with IndiGo HDFC (Housing Development Finance Corporation)
bank, an Indian banking and financial services company,
has entered into a partnership with IndiGo airlines to
launch its first travel credit card named ‘Ka-ching’-
powered by Mastercard. The co-branded cards are
available in 2 variants. It includes 6E Rewards and
the premium card ‘6E Rewards XL’ & annual membership
fee of ‘6E Rewards’ will be Rs 750 while that of ‘6E
Rewards XL’ will be Rs 3,000.
National Bank for Punjab State Rs 140 crore The National Bank for Agriculture and Rural
Agriculture and Agricultural Development (NABARD) has given its approval
Rural Development Development for loan worth Rs 140 crore at low interest rate
(NABARD) Bank (PSADB) to Punjab State Agricultural Development Bank
(PSADB). This has been done to strengthen as
well as provide financial support to PSADB.The
decision to provide Rs 140 crore was taken
during a meeting between Punjab Cooperation
Minister Sukhjinder Singh Randhawa-led
delegation with NABARD Chairman Harsh Kumar
Banwala in Mumbai, Maharashtra.
National Bank for Jammu and Rs 400.64 National Bank for Agriculture and Rural
Agriculture and Kashmir(J&K) crore Development (NABARD), an Apex Development
Rural Development Financial Institution in India, has granted a sum
(NABARD) of Rs 400.64 crore to the Union Territory (UT)
of Jammu and Kashmir(J&K). The amount has
been sanctioned under its ‘Rural Infrastructure
Development Fund (RIDF) – Trench XXV’for
boosting rural infrastructure during the current
financial year-FY (2019-20). Out of the total
amount, Rs. 209.87 crore will be provided for the
construction of 82 rural roads length of 291
kms & 3 bridges. Also, an amount of 47.11 crore
rupees will be provided to improve the Animal
and Sheep Husbandry sectors of the UT.
Housing Development The Micro Small and To provide smart banking solutions to Startups
Finance Corporation Medium Enterprises recognised by the Startup Odisha and will also
(HDFC) Bank (MSME) Department of extend incubation and acceleration support to all
government of Odisha Startups, banking with them.
State Bank of India Government of Gujarat In order to provide enough credit to entrepreneurs
(SBI) in the MSME (Micro, Small and Medium Enterprises)
sector, the state Government of Gujarat has signed
an MoU (memorandum of understanding)
with State Bank of India (SBI), through which the
bank will provide working capital to entrepreneurs
aims to start new MSME within 15 days of making
an application. The agreement was signed between
principal secretary M K Das and SBI Ahmedabad
circle general manager Ramesh Kumar Agarwal in
the presence of Gujarat Chief Minister (CM) Vijay
Rupani.
Govt data: BoM & SBI were only PSBs rated ‘good’ in digital transactions in Dec 2019
According to data released by Government via Ministry of Electronics and Information Technology
(MeitY), Bank of Maharashtra (BoM) and State Bank of India(SBI) were the two only Public Sector
Banks(PSBs) rated as “good” in digital transactions for December 2019. BoM and SBI obtained a score
of 77 and 68 respectively. He score for an individual bank was given by Ministry of Electronics and
Information Technology (MeitY) based on various parameters. The banks performance will also be
rated on a monthly basis. Read full details here: Govt data: BoM & SBI were only PSBs rated ‘good’ in
digital transactions in Dec 2019
Digital transactions through IMPS, UPI and BHIM at record high in January 2020
According to the latest data from NPCI (National Payments Corporation of India ) comes against the
backdrop of the decision made by government on encouraging digital payments, Unified Payments
Interface( UPI), IMPS (Immediate Payment Service) & BHIM (Bharat Interface for Money) registered a
new record in the amount of cash transaction in January 2020.
Record by IMPS: It handle much of the online payments via internet banking, round the clock
(24×7) & registered a total of 25.95 crore transaction, aggregating Rs.2.16 lakh crore in the first
month of the calendar year 2020.
Record by UPI: It replicated its volume of transactions of 1.3 billion with value of transactions to
Rs 2.16 trillion (Rs 2,16,241 crore ) in January 2020.
Record by BHIM: This app also registered all time high volume of transactions with 1.85 crore
transaction worth Rs.6611.22 crore in January 2020.
Read full details here: Digital transactions through IMPS, UPI and BHIM at record high in January 2020
PSBs recover record ₹2.03 lakh crore bad loans in last one-and-half years: FM
The public sector banks’ (PSBs) bad loans trimmed to ₹7.27 lakh crore at the end of September 2019 in
comparison to ₹8.96 lakh crore at the end of March 2018. The information was provided by Finance
Minister Nirmala Sitharaman on February 10, 2020. It is a result of measures taken by the government
to improve financial health of the banks in the country through governance, underwriting, monitoring
and recovery, and has leveraged technology in all aspects of banking, resulting in reduction in their
Non-performing asset (NPA).
SBI Card join hands with Landmark group to launch 3 new retail co-branded credit cards
SBI (State Bank of India) Cards & Payments Services Ltd (previously known as SBI Cards and
Payment Services Private Limited), a payment solutions provider in India, has entered into the
partnership with Landmark Group, one of the largest retail and hospitality organizations, to launch 3
new retail co-branded credit cards namely Lifestyle Home Centre SBI Card, Max SBI Card and Spar
SBI Card with 4 Landmark Group brands- Lifestyle, Home Centre, Max and Spar. The co-branded cards
are available in three variants. It includes, Base, SELECT and PRIME and caters to the needs of
consumers ranging from Value for Money to Premium and Super Premium.
Microsoft, SBI join hands to train differently-abled for employment in BFSI sector
Global tech giant Microsoft has collaborated with the Centre run State Bank of India (SBI) to train
differently-abled people to find jobs in the banking, financial services and insurance
(BFSI) sector. In the first year of partnership 500 differently-abled youths will be upskilled. As a part of
this partnership, SBI Foundation and Microsoft will develop an artificial intelligence powered market
so that BFSI industry can connect more easily with differently-abled people for employment
opportunities.
ADB raises $118 mn through offshore India rupee linked 10-year bonds
Asian Development Bank (ADB), a regional development bank,has secured Rs 850 crore ( about
$118 million) from a new issue of offshore Indian rupee-linked 10-year bonds, with the bonds bearing
a semi-annual coupon of 6.15% and priced to yield 6.19%. This is the 1st maturity secured in Indian
rupees since the year 2017, and gives an established yield curve that starts from 2021 through 2030
with Rs 72.4 billion ($1 billion) of outstanding bonds.
FINANCE NEWS
Reliance general insurance introduces comprehensive health insurance plan “Infinity”
Reliance General Insurance Company Limited , one of the leading insurance companies in India, has
launched a comprehensive health insurance plan called “Reliance Health Infinity”. Under the plan, the
minimum sum insured will be Rs. 3 lakh while the maximum sum insured limit will be Rs. 1 crore.
PFRDA doubles minimum net worth for pension fund managers to Rs 50 cr from Rs 25 cr
The Pension Fund Regulatory and Development Authority (PFRDA), the regulator of the National
Pension System (NPS), has doubled the minimum net worth criterion for pension fund managers to ₹50
crore from the ₹25 crore stipulated earlier. Now, pension funds are on par with mutual funds which
Union Ministry of Finance has notified ‘Printing of One Rupee Currency Notes Rules, 2020’
Union Ministry of Finance has notified ‘Printing of One Rupee Currency Notes Rules, 2020’ which will
feature bilingual signature of Shri Atanu Chakraborty, Secretary, Ministry of Finance. It shall be
rectangular 9.7 x 6.3 cms, with its paper made of 100% (cotton) rag content. The pink green colour
note will have a design of grains, which depicts the “agricultural dominance of the country”. The note
will be 110 microns thick, weighing 90 GSM (Grams per Square Meter).
Sweden’s Riksbank begun testing world’s 1st digital version of currency, e-krona
Sveriges Riksbank (or simply the Riksbank), the central bank of Sweden, had begun testing its digital
version of currency, e-krona. If this year-long pilot project successful, this would lead to the creation
of world’s 1st central bank digital currency (CBDC). The digital currency e-krona will be used to
simulate day-to-day banking functions like payments from a digital wallet such as a mobile phone
application.
IRDAI forms 9-member panel led by Srinivasan to examine the possibility of allowing life
insurers offer indemnity based health policies
After banning life insurers from selling indemnity-based health policies a few years back in July
2016, Insurance Regulatory and Development Authority of India (IRDAI), an autonomous body
tasked with regulating and promoting the insurance has formed a 9-member committee led by Mr. G.
Srinivasan, Director of National Insurance Academy (NIA) to examine the possibility of allowing them
again and extant statutory provisions that are applicable in this regard. The committee, co-chaired by
Mr MR Kumar, Chairman of LIC of India, will have to submit its recommendations within 2- months.
Bharti AXA General Insurance becomes the 1st non-life insurer in India to use Whatsapp for
deliver policy & renewal documents
Bharti AXA General Insurance becomes the 1st non-life insurer in India to use Whatsapp chatbot for
entire services such as policy documents delivery, renewal notices & claim intimation for its customers.
Capri Global Capital Ltd launched UDAAN new SME lending scheme for Women Entrepreneurs
The Non-Banking Financial Company (NBFC) Capri Global Capital Limited (CGCL) has launched an
SME(Small and medium-sized enterprises) lending product “UDAAN” for women entrepreneurs to
provide secured loans upto Rs.40 lakhs only for Business purpose with the loan repayment period of
10years to 15 years at a competitive interest rate after conducting due diligence.
RBI announced draft scheme “Yes Bank Ltd. Reconstruction Scheme, 2020” for Yes Bank’s
revival; SBI willing to invest
A day after Yes Bank Ltd. placed under moratorium which will be effective upto April 3, 2020, on March
6, 2020, Reserve Bank of India (RBI) after exercising its powers conferred under sub-section (4) of
section 45 of the Banking Regulation Act, 1949, has issued a draft scheme of reconstruction of the Yes
Bank. It should be noted that State Bank of India (SBI) wants to invest in Yes Bank and also to
participate in its reconstruction scheme. SBI can invest for up to 49% stake for nearly Rs 2,450 crore.
Read full details here: RBI announced draft scheme “Yes Bank Ltd. Reconstruction Scheme, 2020” for
Yes Bank’s revival; SBI willing to invest
RBI revises exposure limits for urban cooperative banks to single, group borrowers
The Reserve Bank of India (RBI) has revised exposure limits for urban cooperative banks (UCBs) of tier-
1 capital to a single borrower to 15% and a group of borrowers to 25%. The revised exposure limits
shall be applicable to all types of fresh exposures taken by UCBs. The RBI earlier permitted UCBs to
have exposures up to 15% and 40% of their capital funds to a single borrower and a group of
borrowers, respectively. The RBI also revised the priority sector lending (PSL) target for UCBs from
40% to 75% of the adjusted net bank credit (ANBC), or credit equivalent amount of off-balance sheet
exposure (CEOBSE). These norms will also have to be fulfilled by 31 March 2024.
RBI issued new guidelines for payment aggregators; MCR reduced for new PAs to Rs 15 crore
from Rs 100 crore
Reserve Bank of India (RBI) has issued new guidelines for the payment aggregators (PAs) to provide an
ease for payments industry players with effect from April 1, 2020. The guidelines are issued under
Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007. PA is a company
incorporated in India under the Companies Act, 1956 / 2013. RBI has reduced the minimum capital
requirements (MCR) for PAs at the time of application for the license to Rs 15 crore from Rs 100 crore.
Read Full Details Here: RBI issued new guidelines for payment aggregators; MCR reduced for new PAs
to Rs 15 crore from Rs 100 crore
RBI opens dollar-swap window along with infusion of Rs 1,00,000 crore through LTRO
Reserve Bank of India (RBI) has opened a six-month dollar sell-buy swap window and will also inject Rs
1,00,000 crore additional Long Term Repo Operations (LTROs) at the policy repo rate. These measures
taken by RBI are to boost liquidity in the foreign exchange market of India and will serve the
requirement of U.S. dollars in the market. RBI will undertake second 6-month dollar/rupee sell/buy
swap auction on 23 March 2020. Under this, RBI will provide $2 billion to the banks that need it
through a swap. Read Full Details Here: RBI opens dollar-swap window along with infusion of Rs
1,00,000 crore through LTRO
RBI extended authorisation to Vakrangee Ltd for white label ATMs till Mar 31, 2021
Reserve Bank of India (RBI) has extended the validity of Authorization to Vakrangee Limited till March
31, 2021 to set up, own and operates the White Label ATMs (WLA) Business in India. In this regard,
Renewal of Authorization has been granted to Vakrangee Limited. As per the renewal, Vakrangee Ltd
must deploy minimum 1,000 ATMs for every calendar year starting 2020 for an initial period of three
years in the ratio of 1:2:3 for Metro & Urban, Semi-Urban and Rural regions respectively. As per the
recent report on “Financial Inclusion and Rural India – Banking & ATM sector in India” by Grant
Thornton (GT), Vakrangee is the fastest-growing WLA player as well as 3rd largest ATM operator in
rural India.
RBI to infuse ₹10,000 crores via OMO to maintain liquidity in the banking system
The Reserve Bank of India (RBI) is set to infuse ₹10,000 crore liquidity in the banking system by buying
government securities through open market operations (OMO) on March 20, 2020. The securities will
be purchased through a multi-security auction using the multiple price method with tenure between
two and five years. RBI will offer to buy four set of sovereign papers maturing between February 2022
and May 2025.
RBI extends regulatory restrictions on PMC Bank for 3 more months till June 22, 2020
The RBI has extended the 6-month regulatory restrictions on Punjab and Maharashtra Cooperative
(PMC) bank which was posed on September 23, 2019 due to financial irregularities, hiding and
misreporting of loans given to HDIL (Housing Development and Infrastructure Limited). Now, the
restriction is extended for three more months i.e. from March 23, 2020 to June 22, 2020 to work out a
revival scheme. The restriction has been imposed under Section 35A of the Banking Regulation Act,
1949 on withdrawal and lending. RBI also take over the board and the management of PMC bank and
appointed an ex-RBI official JB Bhoria as the administrator at the bank.
RBI to inject Rs 30k cr into market for financial stability amid Covid-19
The Reserve Bank of India (RBI) is all set to inject liquidity of Rs 30,000 crore through open market
operations (OMOs) on March 24 and March 30, 2020 to maintain financial stability and liquidity in all
markets segments during coronavirus outbreak The RBI will purchase government securities under
OMOs in two tranches of Rs 15,000 crore each. OMO is the sale and purchase of government securities
and treasury bills by the central bank of the country.
RBI opens Rs 59000cr emergency credit line for Yes Bank; a move after 16 years
Reserve Bank of India’s (RBI) after its reconstruction plan for Yes Bank, has resumed its standard
operations. Now, to keep the liquidity of the bank for paying back to its depositors stable, it has opened
an emergency line of credit of Rs 59,000 crore. This liquidity support to Yes Bank is an additional
liquidity arsenal provided under Section 17 (4) of the RBI Act, 1934 as the bank has no solvency
problem or any other issue except liquidity. 16 years before a similar credit line was opened for Global
Trust Bank in 2004 but later the bank was merged with Oriental Bank of Commerce.
RBI advances its Rs 25000 cr repo auction to March 26, 2020; SPDs to participate in auction
Reserve Bank of India (RBI) has advanced its first of the two Rs 25,000 crore variable rate repo auctions
to March 26, 2020 from March 30. It will provide flexibility to the banking system in year-end liquidity
management. It should be noted that RBI was going to make two such auctions of Rs 25,000 crore each
on March 30 and March 31 to address the additional demand for liquidity. There is no change in the
auction scheduled for March 31, 2020. Apart from eligible participants. RBI now has also allowed
standalone primary dealers (SPDs) to participate in this auction.
RBI increased March 26, 2020 repo auction amount to Rs 50,000 cr from Rs 25,000 cr
The Reserve Bank of India (RBI) increased the March 26, 2020, variable rate term repo auction amount
to Rs 50,000 crore from Rs 25,000 crore due to the disruptive impact of Covid-19 for the financial
sector. Also, the nation has locked down for 21 days and to keep the liquidity in the market stable this
decision has been taken.
RBI announces liquidity boost of Rs 3.74 lakh crore amid coronavirus outbreak
Reserve Bank of India (RBI) declared an infusion of Rs 3.74 lakh crore into the banking system through
three measures viz. targeted long-term repo operation (TLTRO – auctions conducted for term repos
upto 3yrs amounting to 1 lakh crore), Cash Reserve Ratio (CRR – reduced from 4% to 3% 1st time after
Feb 2013, which could release liquidity of 1.37 lakh crore) and marginal standing facility (MSF - limit
under MSF increased to 3 % from 2% which can add an additional Rs 1.37 lakh core of liquidity.). RBI
has already injected liquidity of Rs 2.8 lakh crore in the financial markets through various instruments,
which equal to 1.4% of GDP.
Merger of 10 state-run banks into 4 to come into force from April 1: RBI
The amalgamation plan ( 10 PSBs to 4 PSBs) of banks is all set to come into force from April 1, 2020.
The branches of merging banks will operate as of the banks in which these have been amalgamated &
the customers of merging banks will be treated as customers of the banks in which these banks have
been merged with effect from April 1, 2020. As per the scheme, Oriental Bank of Commerce and United
Bank of India amalgamated into Punjab National Bank; Syndicate Bank into Canara Bank; Allahabad
Bank into Indian Bank; and Andhra Bank and Corporation Bank into Union Bank of India.
National Bank for Rural Banking Rs 1.46 lakh According to the National Bank for Agriculture
Agriculture and Rural System crore and Rural Development (NABARD), an Apex
Development (NABARD) Development Financial Institution in India, it
has granted Rs 1.46 lakh crore in the rural
banking system during the current fiscal-FY
(2019-20) with the aim to help them get their
IIT Mandi, EWOK Society sign tripartite deal with NABARD for setting up 3 FPOs in Himachal
The IIT (Indian Institute of Technology) Mandi (Himachal Pradesh) along with Enabling Women of
Kamand (EWOK) Society have signed a tripartite agreement with the National Bank For Agriculture
And Rural Development (NABARD) for collaboration on setting up 3 Farmer Producer Organisation
(FPOs) in Himachal Pradesh’s(HP) Mandi district in the next 3 years. NABARD has approved an amount
of Rs 35 lakhs in this regard to IIT Mandi and EWOK Society for establishing FPOs, which is a group of
farm producers, with members as shareholders in an organisation.
ICICI Prudential AMC inks pact with Saraswat co-op bank to tap rural market
ICICI Prudential AMC (Asset Management Company), one of the leading mutual fund investment
companies in India, has entered into the partnership with Saraswat Co-operative Bank,an urban co-
operative banking institution, to distribute its products with the latter’s customers base spread across
its 280 branches in 6 states. This partnership will help ICICI Prudential to increase its outreach,
especially in smaller villages and cities and also boost the bank’s over 100-year presence in the country.
Centre imposed moratorium on Yes Bank; withdrawals restricted to Rs 50,000/- till April 3,
2020; Prashant Kumar named as its administrator
In exercise of the powers conferred by sub-section (2) of section 45 of the Banking Regulation Act, 1949
(10 of 1949), the Central Government, through the Ministry of Finance has imposed moratorium on Yes
SBI cuts interest rate on SB accounts to 3%; one year MCLR reduced to 7.75%; min balance
criteria removed
State Bank of India (SBI) has reduced its interest rate on savings bank (SB) accounts to 3% along with
waiving off of average monthly balance (AMB) for all SB accounts on the basis of ‘Customers First’
approach. Also, to make home and auto loans cheaper SBI reduced its one-year marginal cost of fund-
based lending rate (MCLR) to 7.75% from 7.85%. All these changes are with effect from March 10, 2020.
iSelect+ Term Plan launched by Canara HSBC Oriental Bank of Commerce Life Insurance
Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited launched iSelect+ Term
Plan to provide shield against all uncertainties of life at an affordable premium which includes
Whole Life Cover, Return of Premium, Multiple Payout Options, Increase Coverage Option & Tax
Benefits. It also offers an option to avail return of premium benefit wherein all your premiums will be
returned once you outlive the policy tenure.
SBI Board approved Rs 7,250 cr fund infusion into Yes Bank, Stake remains under 49%
The executive committee of the central board of State Bank of India (SBI) has approved an investment
of Rs 7,250 crore in Yes Bank Ltd. as a part of RBI formulated rescue plan titled “Yes Bank Ltd.
Reconstruction Scheme, 2020” for the revival of Yes Bank. The SBI has not specified its shareholding the
bank but it will remain under 49% of the paid-up capital of the Yes Bank. The investment has been
made by purchasing 725 crore equity shares of Yes Bank at a price of Rs 10 per share. Read full details
here: SBI Board approved Rs 7,250 cr fund infusion into Yes Bank, Stake remains under 49%
DBS Bank India ties up with Bharti AXA to roll out insurance plan covering COVID-19
DBS Bank India Limited, a wholly-owned subsidiary of DBS (Development Bank of Singapore) Bank Ltd,
has entered into the partnership with Bharti AXA General Insurance Company Ltd to launch a
complimentary insurance for customers of DBS treasures. The plan covers all medical conditions
including Novel Coronavirus (Covid-19), under which a cover of Rs 5000 per day is available for a
period of 30 days if DBS customers are hospitalized for 10 days. The bank has also launched a special
program called ‘Emergency Global Medical Assist Program’ to help non-resident Indians (NRIs) to take
care of their close ones in India, which provides 24*7 medical support.
Covid-19: SBI becomes the 1st bank to launch emergency credit facility
The Indian Public Sector Bank, State Bank of India (SBI) has became the 1st bank to launch COVID 19
emergency credit line (CECL) to provide funds to businesses affected by the coronavirus. Under this
emergency credit line, loan will be given at a fixed interest rate of 7.25 % for a period of 12 months.
Maximum loan amount of up to Rs 200 crore or 10 % of the existing fund-based working capital limits
(FBWC) will be provided and such facility will be available by 30 June 2020.
Jana SFB along with NPCI launches UPI QR-based loan installment payment facility
Jana Small Finance Bank (SFB) in partnership with National Payment Corporation of India (NPCI), has
launched a UPI QR-based loan installment payment facility to its existing 40 lakh plus customers & 5
crore micro finance agencies. The UPI QR-based payment mode is available for P2P (person to person)
and P2M (person to merchant) payments.
Indian Bank launched 5 special emergency loans for COVID 19-affected customers
Indian Bank launched five special emergency loans for large corporates, medium enterprises, MSMEs,
salaried and pensioners as a support to its customers affected through economic slump and lockdown
because of the COVID-19 pandemic. The Special emergency loans are IND- COVID Emergency Credit
Line (IBCECL), IND- MSE COVID Emergency Loan (INDMSE-CEL), SHG-COVID – SAHAYA LOAN, IND-
COVID Emergency Salary Loan, IND COVID- Emergency Pension Loan.
Read More Details Here: Indian Bank launched 5 special emergency loans for COVID 19-affected
customers
PNB releases new logo ahead of merger with UBI & OBC on April 1, 2020
The Punjab National Bank (PNB) has launched a new logo before the merger of the bank with the
United Bank of India (UBI) and the Oriental Bank of Commerce (OBC) which comes into force from April
1, 2020. The new logo will have signages of all the 3 banks. With the merger, PNB will be the 2nd largest
bank in the country with a total business and size of Rs 17.94 lakh crore only behind State Bank of India
(SBI) (largest bank if India) whose total business is about 52 lakh crore rupees.
FINANCE NEWS
Paytm Insurance Broking secures brokerage licence from IRDAI
Indian digital payments platform Paytm’s subsidiary, Paytm Insurance Broking, has received
the brokerage licence from the Insurance Regulatory and Authority of India (IRDAI). Paytm will now
offer insurance in various categories namely automotive, health and life. In addition to this, Paytm
customers can also get policy management and claim settlement at select merchant points.
EPFO cuts interest rate to 8.5% for 2019-20 from 8.65%; restored pension commutation under
EPS
EPFO (Employees Provident Fund Organisation) has declined interest rate on EPF deposits for 2019-20
to seven years low by 0.15% or 15 basis points fom 8.65% to 8.5%. The decision has been taken during
the meeting of EPFO’s apex decision making body, Central Board of Trustees (CBT) chaired by Minister
of State (MoS) for Labour and Employment Santosh Kumar Gangwar in New Delhi.
EPFO also decided to restore pension commutation under the Employees’ Pension Scheme
(EPS). This move is applicable for those who opted for commutation of their pension on or
before September 25, 2008 under the erstwhile paragraph 12A of this scheme.
Read full details here: EPFO cuts interest rate to 8.5% for 2019-20 from 8.65%; restored pension
commutation under EPS
Tata AIA Life Insurance to provide football coaching to under-privileged girls under its
‘Bachhpan Ka Rakshakaran’ program
In order to create interest in education for the under-privileged girls aged 12-16 years, by using football
coaching as a medium, Tata AIA Life Insurance, a joint venture company formed by Tata Sons Ltd and
AIA Group Ltd(AIA), has launched a ‘Bachhpan Ka Rakshakaran’ program in association with Mumbai
based Non-profit ‘Oscar Foundation’. This initiative will help reduce stock of issues including school
dropouts, child labour, child marriage, drug abuse and vulnerability to minor crime.
Flipkart teamed up with Aegon life insurance to sell quick-access life insurance policies
The e-Commerce company Flipkart has partnered with Aegon Life Insurance to sell comprehensive
insurance solutions to customers seeking instant digital policies with an assured sum up to Rs 10 lakh.
The life insurance policies have diverse offerings- sums assured ranging from Rs 1 lakh to Rs 10 lakh,
premiums starting from Rs 129 for Rs 1 lakh sum insured and policies available to the existing
customers of Flipkart between the age of 18 & 65 years.
ICICI Lombard introduced ‘COVID-19 Protection cover’ for Coronavirus positive case
ICICI (Industrial Credit and Investment Corporation of India) Lombard, a private sector non-life
insurance company has introduced a 1 year long “COVID-19 Protection Cover” at a premium of Rs. 149.
Star health unveils ‘Star novel coronavirus policy’ for corona victims
Star Health and Allied Insurance Co Ltd. has launched ‘Star Novel Coronavirus Insurance Policy’ that
provides coverage for hospitalized patients who test positive for the current pandemic COVID-19. The
company has set a premium of Rs 459 plus GST for a sum insured of Rs. 21,000 and a premium of Rs
918 plus GST for a sum insured of Rs 42,000. People who aged between 18-65 yrs can avail this policy.
RBI increases WMA limit to Rs 1.2 lakh crore for the first half of FY21
The Reserve Bank of India (RBI) in consultation with the Government of India (GoI), has hiked the limit
of Ways and Means Advances (WMA) for the centre to Rs 1.2 lakh crore for the first half of the financial
year 2020-21(FY21), up from Rs 75,000 crore in the first half of FY20, and Rs 35,000 crore for the second
half of 2019-20.
Read More Details Here: RBI increases WMA limit to Rs 1.2 lakh crore for the first half of FY21
RBI has revised norms for appointment & reappointment of MD & CEO
Reserve of Bank (RBI) has revised the norms for appointment and reappointment of Managing Director
(MD) & Chief Executive Officer (CEO) of private sector & foreign banks. As per new norms, Proposal of
re-appointment should be submitted 6 months in advance instead 4 months (earlier) and the proposal
for appointment of new MD & CEO or CEO should consist of a panel of at least 2 names in the order of
preference (earlier was 3 names) & the proposal to be submitted at least 4 months before the expiry of
the term of present incumbent office.
RBI to put 200 bps penalty on banks if failed to invest TLTRO funds in 30 days
The Reserve Bank of India (RBI) has instructed banks that they need to invest the mandated 50% of the
funds raised through targeted long-term repo operations (TLTRO) route, under the first tranche
conducted on March 27, 2020, in corporate bonds or specified securities within a month or 30 working
days. If failed, the interest rate on un-deployed funds will increase to prevailing policy repo rate (4.40%
at present) plus 200 bps (basis points) additional penal interests will have to be paid for the number of
days such funds remain un-deployed.
Read More Details Here: RBI to put 200 bps penalty on banks if failed to invest TLTRO funds in 30 days
RBI to launch Sovereign Gold Bonds Scheme 2020-21 in H1 FY21 on behalf of GoI
The Central government after exercising its power conferred under clause (iii) of section 3 of Government
securities Act 2006 has launched a new series of the Sovereign Gold Bond (SGB) Scheme namely
“Sovereign Gold Bond 2020-21” which is to be issued by Reserve Bank of India (RBI) in six tranches from
April 2020 to September 2020 i.e. in first half of FY 20-21. These bonds will fetch a fixed interest rate of
2.50% per annum which will be taxable under Income Tax Act, 1961.
Read More Details Here: RBI to launch Sovereign Gold Bonds Scheme 2020-21 in H1 FY21 on behalf of
GoI
OBICUS Q4: 2019-20: 49th round of quarterly survey on manufacturing sector launched by RBI
Reserve Bank of India (RBI) has launched the 49th round of quarterly order books, inventories and
capacity utilization survey (OBICUS) of the manufacturing sector which will provide important figures
and input for monetary policy formulation. The reference period for this survey is January-March 2020
(Q4: 2019-20).
Read More Details Here: OBICUS Q4: 2019-20: 49th round of quarterly survey on manufacturing sector
launched by RBI
RBI Governor announced relief measures for liquidity in system; Reverse Repo Rate slashed to
3.75% from 4%
Reserve Bank of India (RBI) Governor Shaktikanta Das announced relief measures for small and medium-
sized financial organisations which have been struggling to operate due to Covid-19. The important
among them is reduction of fixed reverse repo rate from 4% to 3.75% with immediate effect to maintain
more liquidity in the banking system. Also, RBI to conduct a second round (TLTRO 2.0) of targeted long-
term repo operations (TLTRO) for an initial amount of Rs 50,000. A special refinance facility for an
amount of Rs 50,000 crores will be provided to NABARD, NHB and SIDBI.
Read More Details Here: RBI Governor announced relief measures for liquidity in system; Reverse Repo
Rate slashed to 3.75% from 4%
RBI’s 1st auction under TLTRO 2.0 for Rs 25,000 cr on Apr 23; final tranche of Rs 1 lakh crore
TLTRO concluded
Reserve Bank of India (RBI) Governor Shaktikanta Das has announced a Targeted Long-Term Repo
Operations 2.0 (TLTRO) window of Rs 50,000 crore during press conference (concluded 1st phase of
TLTRO of Rs. 1 lakh crore on April 17, 2020). Now as a part of it, RBI is all set to conduct the first auction
under the TLTRO 2.0 for an amount of Rs 25,000 crore on April 23, 2020. The funds availed under TLTRO
2.0 shall be deployed in investment grade bonds, commercial paper (CPs) and non-convertible
debentures (NCDs) of NBFCs.
RBI increases WMA limit for Central Government to Rs 2 lakh cr from 1.2 Lakh cr for H1 FY21
Reserve Bank of India (RBI) in consultation with Indian Government has increased the limit for Ways and
Means Advances (WMA) by 66% for Central Government to Rs 2,00,000 crore from Rs 1,20,000 crore for
the remaining part of first half of the financial year 2020-21 i.e H1 FY21 (April 2020 to September 2020)
to tackle the financial crisis arisen due to COVID-19 pandemic. Last week, RBI increased the WMA limit
of state governments by 60%.
Read More Details Here: RBI increases WMA limit for States/UTs to Rs 2 lakh cr from 1.2 Lakh cr for H1
FY21
RBI instructed its regulated entities to carry out money laundering risk assessment periodically
Reserve Bank of India (RBI) instructed its regulated entities (REs) to carry out money laundering (ML)
and terrorist financing (TF) risk assessment exercise periodically. In this regard the central bank has
added a new section in the Master Directions on KYC (know your customer), which has come into force
with immediate effect. The entities regulated by the RBI include, banks, All India Financial Institutions,
Non-Banking Financial Companies (NBFCs), and all payment system providers.
RBI cancels license of Goa’s oldest bank, Mapusa urban co-operative bank of Goa Ltd.
Reserve Bank of India (RBI) has canceled the license granted to the Mapusa Urban Co-operative Bank of
Goa Ltd., Goa to conduct banking business which includes acceptance of deposits and repayment of
deposits as defined in Section 5 (b) read with Section 56 of the Banking Regulation Act, 1949 with
immediate effect. The order came into effect from the close of business on 16 April 2020.
Read More Details Here: RBI cancels license of Goa’s oldest bank, Mapusa urban co-operative bank of Goa
Ltd.
RBI opened Rs 50,000 cr Special Liquidity Facility for MFs from Apr 27-May 11,2020
To ease the liquidity pressures on mutual funds, impacted by Covid-19 crisis, Reserve Bank of India (RBI)
has initiated a special liquidity facility of Rs 50,000 crore namely “Special Liquidity Facility-Mutual Funds
(SLF-MF)”under which RBI will conduct repo operations of 90 days tenor at the fixed repo rate. The
timeline of the scheme is from April 27, 2020 to May 11, 2020 or up to utilization of the allocated amount,
whichever is earlier. Under this facility, the RBI will provide funds to banks at lower rates.
BANKING TECHNOLOGY
APP NAME LAUNCHED BY KEY NOTES
DigiGen Jana Small Finance Jana Small Finance Bank (HQ – Bengaluru, Karnataka), a
Bank scheduled commercial bank, has launched DigiGen, a digital
banking platform which enables the customers to open
digitally a savings account & fixed deposit instantly anytime
& anywhere. It is a 3-step process to open an account, where
the customers are eligible for 4.5% interest rates on savings
Asian Development Aavas $60 million Asian Development Bank (ADB) has signed a
Bank (ADB) Financiers Ltd loan agreement worth of $60 million with
Aavas Financiers Ltd (an affordable housing
loan provider) to provide housing finance to
women in low-income communities either as
primary borrowers or co-borrowers. Earlier
the ADB announced to invest $100 million in
Indian infrastructure sector through National
Investment and Infrastructure Fund (NIIF).
World Bank India USD 1 billion The World Bank has offered USD 1 billion to
India for the proposed a 4-year COVID-19
emergency response & health systems
preparedness project which aims to develop
the preparedness of India’s health care systems
in the time of the pandemic & also to respond
and mitigate the pandemic.
World Bank (WB) Himachal US$82 million For the upgradation of major roads and
Pradesh State (Rs 585 modernization of the Public Works
Roads crore) Department (PWD) in Himachal Pradesh (HP).
Transformation
Asian Development India 1.5 Billion The Asian Development Bank (ADB –
Bank USD headquarters at Mandaluyong, Manila,
(Rs.11,400 Philippines) approved the loan of 1.5 Billion
crore) USD (Rs.11,400 crore) to India to fund the
actions to take against the novel coronavirus
pandemic to support disease containment and
prevention and social protection for the poor
and working-class population who are in
vulnerable economic condition.
Asian Development Maharashtra $346 million For to provide reliable power connection in
Bank (ADB) (around Rs rural areas of the state, where the labour force
2,616 crore) is mostly engaged in agriculture and related
activities. In addition to the above said
amount, the ADB will also provide $1 million
as technical assistance.
The Punjab National Japan International The Punjab National Bank Housing Finance
Bank Housing Finance Cooperation Agency (JICA) (PNBHF) has signed an agreement with Japan
(PNBHF) International Cooperation Agency (JICA) to raise
USD 75 million (about Rs 566 crore) [It is JICA’s 1st
funding in India in Housing Finance sector] & with
Citibank for USD 25 million (about Rs 188 crore) to
provide loans to affordable housing segment so as to
improve the lives of low-income households & to
promote sustainable economic growth in India.
Govt nominated IOB & HDFC Bank for collecting donations of PM CARES Fund
State-owned Indian Overseas Bank (IOB) and private lender Housing Development Finance Corporation
(HDFC) Bank have been nominated for the collection of donations for Prime Minister’s Citizen Assistance
and Relief in Emergency Situations Fund (PM-CARES Fund) – Earlier State Bank of India (SBI) was
Airtel Payments Bank joined hands with Bharti AXA to offer COVID-19 insurance plans
Airtel Payments Bank has partnered with Bharti AXA General Insurance to offer financial protection for
COVID-19 via two different health insurance plans. The plan named “Bharti AXA Group Health Assure
Policy” offers a lump sum benefit of Rs 25,000 and the other plan “Group Hospital Cash” will offer a daily
benefit of Rs 500 or Rs 1000 upto 10days. It should be noted that both are ‘Need-Based Insurance’ covers
with a validity of one year and there is no mention about the minimum and maximum age limit.
Bank of Baroda initiated four schemes for agri sector to tackle COVID-19 impact
The Bank of Baroda (BoB) has initiated four agro schemes for Women Self Help Groups (SHGs), Farmer
Producer Organizations (FPO/FPC) and farming community. It should be noted only the existing
borrowers of BoB whether individual or FPO or SHG are eligible for the schemes. Following are the four
schemes launched by bank: Additional Assurance to SHGs- COVID19, Baroda Emergency Credit Line for
Farmer Producer Organization (FPO/FPC), Baroda Special Scheme for existing Agriculture Investment
Credit borrowers, Baroda Special Scheme for existing BKCC borrowers impacted by COVID-19
Read More Details Here: Bank of Baroda initiated four schemes for agri sector to tackle COVID-19 impact
MaxLifeIns, YES Bank extended bancassurance tie-up for 5 years; Dedicated FY21 as “Year of
the Customer”
New Delhi based Max Life Insurance and Mumbai based YES Bank have extended their 15 years strategic
bancassurance partnership (Since Feb 2005) for five more years. In this regard, the both companies
dedicated the current financial year i.e. FY 2020-21 as the “Year of the Customer”.
Paytm Payments Bank partnered with Mastercard to issue virtual and physical debit cards
Noida based Paytm Payments Bank Ltd (PPBL) has collaborated with Mastercard to issue virtual and
physical debit cards to enable its customers to perform secure online transactions, make payment in
stores as well as withdraw cash from ATMs. PPBL will issue Mastercard virtual debit cards to its new
customers to perform secure online transactions for everyday purchases.
IOB launches Working Capital Demand Loan for agriculture sector: COVID-19
Indian Overseas Bank (IOB) headquartered at chenai, TN has launched Working Capital demand Loan for
agriculture sector (WCDL-Agri), a special credit facility for the agriculture sector & allied activities as a
relief measure to fight COVID-19 pandemic. It has also launched the “COVID 19 Line of Support Scheme”
for all MSME customers.
Transcorp becomes the 1st non-bank company to receive RBI nod to enter into co-branding
arrangements
The Leading forex and payment solutions provider Transcorp International Limited (TIL), has become
the 1st non-bank company to receive Reserve Bank of India (RBI) nod to enter into co-branding
arrangements for prepaid Instruments to be used in over 35 lakh stores and online gateways due to the
current outbreak of COVID-19 pandemic. It is the 1st non-bank player in India to issue National Common
Mobility Cards (NCMC/One Nation One Card) by National Payments Corporation of India (NPCI)
certification to be used in Transit Systems and Smart Cities.
COVID-19: Indian Overseas Bank introduces special borrowing programme for self-help groups
Indian Overseas Bank (IOB) has launched a special borrowing programme for Self Help Groups (SHGs) to
help them in difficult situations arising out of COVID-19. Under this scheme, a member of SHG will be
given a maximum loan of Rs 5,000 & the limit for the group has been fixed at Rs 1 lakh. This loan will be
sanctioned with an interest rate of 9.4 % for 1 year. The loan will have to be repaid in 30 Equated Monthly
Instalments (EMIs).
FINANCE NEWS
In a 1st, BhartPe partners with ICICI lombard to launch ‘COVID-19 protection insurance cover’ for
shopkeepers
Delhi based payment transaction business company ‘BharatPe’ has entered into partnership with general
Insurance company ‘ICICI Lombard General Insurance Company Limited’ to introduce ‘COVID-19
Protection Insurance Cover’ for shopkeepers, who are most affected financially due to Coronavirus
(COVID-19) outbreak. The premium starts from Rs 199 with a sum assured of Rs 25,000 and value-added
benefits and people aged between 18-65 can avail this insurance cover.
Centre reduced small savings schemes interest rates for Q1FY20-21; PPF interest lowered to
7.1%
The Centre government has decreased the Interest rates on small savings schemes for the first quarter
(Q1-April to June) of FY 2020-21 by exercising the powers conferred under Rule 9(1) of the Government
Saving Promotion General Rules, 2018. Important among them is Interest rate on public provident fund
(PPF) scheme has been lowered to 1% (revised to 7.1%) for Q1FY 20-21 (April-June) which is the lowest
interest rate offered since 1977 or lowest in 43 years.
Read More Details Here: Centre reduced small savingsschemes interest rates for Q1FY20-21; PPF
interest lowered to 7.1%
Corona Care: India’s first coronavirus hospitalization insurance by PhonePe for Covid-19
treatment
Digital payments company PhonePe has launched India’s first COVID-19 hospitalization insurance policy
called Corona Care in collaboration with Bajaj Allianz General Insurance for people who have been
infected and hospitalised for covid-19 treatment. The policy will provide an insurance cover of 50,000 on
a one-time payment with the premium of Rs 156 for people who are under 55 years of age.
‘Force majeure’ not applicable to COVID-19 death claims in life insurance policies
The Life Insurance Council of India has confirmed that the clause of ‘Force Majeure’ will not apply in case
of COVID-19 death claims and it is applicable for both state-run and private life insurance players. Force
Majeure states that in the event of any force majeure or disaster that affects the normal functioning of the
life insurer then it can temporarily suspend the claims by making the contract null or invalid.
Flipkart partners with ICICI lombard & Go Digit to offer two COVID-19 health insurance policies
E-Commerce company Flipkart Private Limited joined in partnership with ICICI Lombard General
Insurance Company Limited and Go Digit General Insurance & launched two health insurance policies
namely – ‘Covid-19 Protection Cover’ – Premium Rs 159 and amount of Rs 25000 & ‘Digit Illness Group
Insurance’ - upto Rs 1 Lakh with annual premium of Rs 511, that specifically cover coronavirus (COVID-
19) on its platform.
Tata AIA becomes the 1st Life Insurance company in India to announce additional benefits:
COVID-19
Tata AIA becomes the 1st Life Insurance company in India to announce additional benefits for its
policyholders & agents so as to support them during the novel coronavirus (COVID-19) pandemic. The
Additional benefits are, All policyholders will get additional benefit equal to the base sum assured or Rs
5,00,000 (no additional cost) whichever is lower, it is applicable for all valid death claims with a date of
death on or before June 30th 2020 & All ‘active’ agents with their spouse and children are entitled upto
Rs 25,000 hospitalization cover if diagnosed with COVID-19 within the period as mentioned for the
policyholders.
Bajaj Allianz General Insurance in partnership with GOQii launches ‘BAGIC GOQii Co-pay Option’
Bajaj Allianz General Insurance launched a preventive healthcare platform ‘BAGIC GOQii Co-pay Option’
in partnership with a smart health company GOQii under the regulatory sandbox approval from
Insurance Regulatory and Development Authority of India (IRDAI). The Objective of the product is to
reward the customers with a healthy lifestyle in the form of co-pay deduction in their health insurance
policy named Health Ensure policy.
NABARD disburses Rs 12,767 crore to State Co-op Banks & RRBs to extend credit to farmers
The National Bank for Agriculture and Rural Development (NABARD) disburses Rs 12,767 crore to State
Co-operative (Co-op) Banks & Regional Rural Banks (RRBs) across the country to increase their resources
for extending credit to farmers during the lockdown due to the outbreak of COVID-19 pandemic. The
loans are being offered for one year at an interest rate of 4.8 per cent.
Rs 1,500 crores sanctioned for Punjab to ensure continuous credit flow to farmers: NABARD
The Mumbai based National Bank for Agriculture and Rural Development (NABARD) has sanctioned Rs
1,500 crores for Punjab to ensure continuous credit flow to farmers, through state cooperative banks,
amidst the COVID-19 pandemic. Out of the total amount Rs 1,000 crores is sanctioned to Punjab State
Cooperative Bank and Rs 500 crores to Punjab Gramin Bank.
NABARD extends Rs 20,500 crores special liquidity facility to co-op banks & RRBs
The National Bank for Agriculture and Rural Development (NABARD) has informed that it has extended
Rs 20,500 crores special liquidity facility to co-operative banks (co-op– Rs 15,200 crores) and Regional
Rural Banks (RRB’s– Rs 5,300 crores) in various States. This amount is part of the Rs 25,000 crores of
special refinance facility provided by the RBI to NABARD for refinancing RRBs, cooperative banks and
Micro Finance Institutions (MFIs).
Kotak Mahindra becomes 1st bank in India to introduce video-KYC facility for SA customers
The Mumbai based Kotak Mahindra Bank has become the 1st bank in India to allow video Know your
customer (KYC) facility for its customers opening savings account (SA) on Kotak 811 platform.
Franklin Templeton appoints Kotak Bank as an advisor to assist in monetising assets of 6 Wind-
up Schemes
Franklin Templeton Trustee Services Pvt. Ltd. has appointed Mumbai based Kotak Mahindra Bank as an
independent advisor to work together with Franklin Templeton Asset Management (India) Pvt. Ltd (the
AMC), to assist the Trustees in monetizing portfolios of the 6 schemes that are being wound up & make
pay-outs to the affected investors.
ICICI introduced ‘ICICI Bank Golden Years FD’ a special FD with interest rate of 6.55% p.a. for
senior citizens
The Private sector ICICI bank has introduced a special fixed deposit (FD) scheme for senior citizens called
‘ICICI Bank Golden Years FD’ which offers an interest rate of 6.55% per annum (p.a) for deposits up to
Rs. 2 crores with a tenure of more than 5 years (5 years and 1 day) to 10 years. Similarly, SBI has launched
‘SBI Wecare Deposit’ scheme which offers an additional 30 bps interest to senior citizens on their term
Airtel Payments Bank joined hands with Mastercard to develop customised payment solutions
for farmers, SMEs
The Airtel Payments Bank (APBL) has joined hands with Mastercard to develop a special type of payment
solutions such as contact less payments via NFC (Near Field Communication), credit facility and other
neighbourhood banking services for Indian farmers and small and medium enterprises (SMEs).
NABARD grants Rs 1,050 crore to West Bengal during FY 21 for the benefit of farmers & poor
people
The Mumbai based National Bank for Agriculture and Rural Development (NABARD) has extended Rs.
1,050 crores special liquidity facility (SLF) to West Bengal (WB) in the current fiscal year (FY 21) for the
welfare of farmers and poor people in the state. Of the 1050 crores, Rs 300 crores disbursed for MFIs
(micro-finance institutions), Rs 700 crores sanctioned for state cooperative banks and Rs 50 crorse for
regional rural banks (RRBs).
FINANCE NEWS
Flipkart ties up with Bajaj Allianz General Insurance for digital motor insurance policy
E-commerce company Flipkart partnered with Pune based Bajaj Allianz General Insurance Company to
offer digital motor insurance policy to customers of e-commerce major. This enables consumers to
purchase the motor-insurance policy using the Flipkart mobile application.
IBM ties up with Intellect Design Arena to launch iTurmeric FinCloud platform for cloud services
of banks, financial institutions
IBM (International Business Machines) ties up with the Intellect Design Arena Limited, a full spectrum
banking and insurance products company, has launched iTurmeric FinCloud platform through IBM public
cloud targeting financial institutions which are looking to switch to the latest tools and technologies.
Maruti Suzuki ties-up with Cholamandalam Investment & Finance to launch ‘Buy Now Pay Later’
offer
Maruti Suzuki India Limited, an automobile manufacturer in India, has partnered with the
Cholamandalam Investment and Finance Company Limited (CIFCL) to launch ‘Buy Now Pay Later’
financing scheme to make the purchase of its cars even more convenient. Under the scheme, customers
have the option to avail a 60-day surcharge on their EMI. Apart from Maruti, Tata Motors and Mahindra
have also rolled out similar finance schemes this week.
Maruti Suzuki partners with ICICI Bank to provide retail financing schemes to customers
Maruti Suzuki India Limited (MSIL) announced its partnership with ICICI Bank to offer retail financing
schemes to its customers. ICICI bank offers a flexible EMI scheme allowing the customers to pay minimum
EMI initially to support them in the liquidity stress during COVID-19 situation.
Annual listing fee reduced by 25% for SMEs: BSE & NSE
The BSE (formerly known as The Bombay Stock Exchange) and NSE (National Stock Exchange)
announced that they will reduce the annual listing fee by 25% for Small and Medium Enterprises (SMEs)
companies to lower the compliance costs for companies. NSE will provide the rebate to all its existing
listed companies currently listed on its EMERGE platform. BSE will provide the rebate to its currently-
listed companies & for all the firms waiting to be listed on the exchange.
• GA Questions Asked in IBPS Clerk Mains Exam 2020 – 90% Questions Covered by AC
• GA Questions asked in SBI PO 2019 Main Exam
• GA Questions asked in SBI Clerk Main Exam 2019
• GA Questions asked in IBPS PO Main Exam 2019
• GA Questions asked in RBI Grade B Prelims Exam 2019
• GA Questions asked in IBPS RRB Clerk Mains Exam 2019
• GA Questions asked in IBPS RRB PO Mains Exam 2019
Support@affairscloud.com