Federal Bank on digitisation drive
•
At a time when the country is moving fast
towards a digital era and with the entry of new banks like both payments and
small banks the Federal Bank focusing on increasing the number of banking
transactions via the digital platform.
•
Last year, the bank recorded 72 million
transactions on alternative channels and it aims to cross 100 million with the
addition of more digital channels and payment options.
GDP growth for 2014-15 marginally revised down to 7.2%
•
Government of India has marginally revised
downward the economic growth for 2014-15 to 7.2 per cent from the earlier
estimate of 7.3 per cent after factoring in latest data on agriculture and
industrial production.
•
As per the Central Statistics Office’s (CSO)
revised estimates the real GDP at constant (2011-12) prices for the years
2014-15 and 2013-14 stands at Rs 105.52 lakh crore and Rs 98.39 lakh crore,
respectively, showing growth of 7.2 per cent during 2014-15, and 6.6 per cent
during 2013-14.
Syndicate Bank posts Rs. 119-cr loss on higher deferred tax
provision
•
Syndicate Bank reported a net loss of Rs. 119
crore for the third quarter of the current fiscal on account of higher
provisioning towards deferred tax.
•
For the same quarter last year, Syndicate Bank
had posted a net profit of Rs. 305 crore. The loss is a first for the bank in
more than a decade.
•
RBI, after reviewing the asset quality across
the banking sector, mandated banks to recognise visibly stressed assets as
non-performing assets (NPAs).
IMF implements
long due quota reforms
•
IMF
has announced implementation of its long due quota reforms which was approved
by the US Congress last year that will give more voting rights to emerging
economies like India and China in the functioning of the organisation.
•
The
reforms by IMF represent a major step towards better reflecting in the
institution’s governance structure, the increasing role of dynamic emerging
market and developing countries.
•
For
the first time four emerging market countries (Brazil, China, India, and
Russia) will be among the 10 largest members of the IMF.
•
The
reforms also increase the financial strength of the IMF, by doubling its
permanent capital resources to SDR 477 billion (about USD 659 billion).
Lakshmi Vilas
Bank rolls out mobile app, value-added services
•
Lakshmi
Vilas Bank (LVB) plans to expand its digital banking services to reach out to
young customers by launching the bank’s mobile banking app, which will enable
customers to use their smartphones for a range of transactions.
•
The
bank also launched its first cash-deposit machine in Bengaluru. It plans to
install 10 machines at various locations over the next couple of months.
E-lounges are also in the pipeline for customer convenience.
RBI to issue Rs
10 coins on B R Ambedkar’s 125th birth anniversary
•
Reserve
Bank of India will soon issue Rs 10 coins to commemorate the occasion of 125th
birth anniversary of B R Ambedkar.
•
The
obverse of the coin will bear the Lion Capitol of Ashoka Pillar in the centre
with the legend ‘Satyamev Jayate’ inscribed below, flanked on the left
periphery with the word ‘Bharat’ in Devnagri script.
Asian
Development Bank sign $80 million loan agreement with India
•
The
Asian Development Bank (ADB) and the Government of India signed $80 million
loan agreement to continue improving infrastructure in two North Eastern State
Capital cities.
•
The
loan is the third tranche of a $200 million financing facility under the North
Eastern Region Capital cities Development Investment Program and will be used
for investments in water supply, solid waste management and sanitation in
Agartala and Aizwal.
•
It
will also support urban reforms, benefiting nearly a million people in the two
cities. Previous program tranches have provided assistance to five other cities
in the Northeast. They are Shillong (Meghalaya), Aizawl (Mizoram), Kohima
(Nagaland), Gangtok (Sikkim) and Agartala (Tripura).
RBI to issue Rs
500, Rs 100 notes with more security
•
Reserve
Bank of India is going to circulate new banknotes of Rs 500 and Rs 100
denominations of the Mahatma Gandhi Series-2005 with enhanced security
features.
•
The
introduction of new bank notes is part of its endeavour to continually improve
design and security features to stop counterfeiting activities.
•
The
Reserve Bank will shortly issue Rs 500 denomination bank notes with three
additional/revised features in the Mahatma Gandhi Series-2005, with inset
letter ‘E’ in both the numbering panels, bearing the signature of Dr Raghuram,
Governor of RBI.
•
It
had earlier issued 500 denomination notes with the same inset letter with the
ascending size of numerals in the number panels but without bleed lines and
enlarged identification mark.
•
Besides,
RBI will also issue Rs 100 new bank notes with added features including
identification marks for visually impaired persons.
Deposits in Jan
Dhan accounts cross Rs 30,000 crore
•
Deposits
in accounts opened under the government’s flagship financial inclusion
programme Pradhan Mantri Jan Dhan Yojana (PMJDY) have crossed the Rs 30,000
crore mark.
•
As
per the latest data available many as 20.38 crore bank accounts were opened
under the PMJDY up to January 20. These bank accounts had deposits of Rs
30,638.29 crore.
•
The
accounts that can be opened under PMJDY are Basic Savings Bank Deposit Accounts
(BSBDA) which can be of zero balance, as per RBI guidelines.
•
The
percentage of accounts with ‘Zero Balance’ has actually shown a significant
decline. Accounts with no balance in them were as high as 76.81 per cent of the
total opened under the scheme as on September 30, 2015. They have come down to
just about 32 per cent at the end of December.
Banks to sell
gold coins minted by MMTC
•
RBI
said banks can sell India Gold Coin (IGC) minted by state-owned Metals and
Minerals Trading Corporation of India (MMTC). However, the current restriction
on selling imported gold coin by banks continues.
•
IGCs
can be sold only by designated banks like all Scheduled Commercial Banks
(excluding Regional Rural Banks),that are implementing the Gold Monetisation
Scheme (GMS), 2015.
•
The
GMS is intended to mobilise gold held by households and institutions and
facilitate its use for productive purposes, and in the long run, cut imports.
•
MMTC
has been authorised by the Central government to manufacture IGC with Ashok
Chakra and supply these coins to the domestic market.
RBI green
signals hiking service charge on deposits by non-chest branches
•
Reserve
Bank of India said currency chest holding branches can raise the service
charges to be levied on cash deposited by non-chest bank branches to Rs. 5 per
packet of 100 pieces from the existing rate of Rs. 2 per packet.
•
The
revised charges will come into effect from February 1 and are aimed at
incentivising improvement in service to non-chest branches under the linkage
scheme. The service charges were last revised in April 2007 to Rs. 2 per packet
of 100 from Rs. 2.
New customer
registry to help banks check fraud
•
Reserve
Bank of India has operationalised a Central Fraud Registry (CFR) to minimise
incidents of frauds with immediate effect.
•
The
registry will make available more information to banks at the time of starting
a banking relationship, extending credit facilities or at any time during the
operation of an account.
•
The
CFR is a centralised searchable database which can be accessed by banks. The
launch of the registry comes in the backdrop of the RBI expressing serious
concern over the rising trend in loan-related frauds.
•
RBI,
after reviewing the fraud reporting mechanism to the Regional Offices/Central
Fraud Monitoring Cell (CFMC), said frauds of Rs. 1 lakh and above but below Rs.
5 crore will be monitored by the Regional Offices of the RBI under whose
jurisdiction the Head Office or the Senior Supervisory Manager (SSM) of the
bank falls.
Government
modifies gold monetisation scheme on the directions of RBI
•
The
government has modified the Gold Monetisation Scheme (GMS) after the Reserve
Bank of India (RBI) issued a master direction on the scheme.
•
The
modification comes in wake of the suggestions received to make the scheme
easier for the customers to participate.
The changes made
in the scheme are as follows:
o
Any
Medium Term Deposit will be allowed to be withdrawn after three years and any
Long Term Deposit after five years. These will be subject to a reduction in the
interest payable.
o
Fees
to be paid to Banks for their services i.e. gold purity testing charges,
refining, storage and transportation charges etc. on Medium and Long Term Gold
Deposits. Effectively the banks would be getting a 2.5 percent commission for
the scheme which will include the charges payable to the Collection and Purity
Testing Centres/Refiners.
Housing.com gets
Rs. 100 cr more from SoftBank
•
Japan-based
investment firm SoftBank has pumped in an additional Rs. 100 crore ($15
million) in online Mumbai-based start-up Housing.com.
•
SoftBank,
the largest investor with about 30 per cent stake in the Housing.com has so far
invested about $100 million (Rs. 650 crore) in the company. With the latest
investment, the total amount of funds raised by the company is pegged at $169
million that it has got from investors, including Nexus Ventures, Falcon Edge
and Helion Ventures.
•
SoftBank
has so far invested about $2 billion in Indian online companies, which include
Ola and Snapdeal.
RBI asks banks
to stop Rs 1,000 notes without security thread
•
RBI
said it has received complaints about notes of Rs 1,000 denomination without
the security thread being in circulation and has asked banks not to issue them
in case these are found.
•
A
security thread is a security feature found in the bank notes to protect
against counterfeiting.
FreeCharge
partners MasterCard, Yes Bank to launch virtual card
•
Mobile
wallet player FreeCharge has launched its new virtual card ‘FreeCharge Go’, in
partnership with Yes Bank and powered by MasterCard.
•
This
launch enables FreeCharge’s customers to use the money in their digital wallets
on any merchant site that accepts cards.
•
Paytm,
which also launched prepaid cards in partnership with ICICI Bank Ltd is
FreeCharge’s tough competitor.
Banks, insurers
to align with global accounting rules from April 1, 2018
•
The
Centre has announced the much-awaited roadmap for implementing the Indian
Accounting Standards (Ind AS) by banks, insurers and non-banking finance
companies (NBFCs).
•
Ind
AS are a set of accounting standards developed by Indian authorities, which
converge with the International Financial Reporting Standards (IFRS).
•
According
to the roadmap, scheduled commercial banks (excluding regional rural banks) and
insurers, will be required to prepare Ind AS-based financial statements for
accounting periods beginning April 1, 2018.
SBI offers loans
for women entrepreneurs under MUDRA scheme
•
The
‘MUDRA' loan for women entrepreneurs or Boutique Finance for Women
Entrepreneurs, a special loan scheme under Prime Minister MUDRA Yojana has been
launched for catering to the financial needs of women entrepreneurs.
•
State
Bank of India has come forward to participate under the scheme and provide
loans to help women entrepreneurs in West Bengal who are engaged in various
handicraft activities.
YES Bank
formalises $500-m green bond plan
•
Private
sector lender YES Bank looks to open a branch in the UK later this year, as
part of plans to extend its international reach.
•
According
to the management the initial focus would be on institutional banking, but
longer term the bank hopes to expand UK operations into retail banking too.
•
YES
Bank formalised the MoU for the listing of the $500-million green bond on the
London Stock Exchange, announced during Prime Minister Narendra Modi’s visit to
London in November last year.
National Housing
Bank in talks with credit bureaus for sharing data on borrowers
•
NHB,
the apex institution for housing finance in the country, is in talks with the
bureaus to curb the possibility of beneficiaries availing of multiple home
loans under the government’s credit-linked subsidy scheme.
•
NHB
is already in discussion with the bureaus whereby all banks will upload another
column in the datasheet about beneficiaries who have availed themselves of a
subsidy.
•
Under
the credit-linked subsidy scheme (CLSS), subsidy is provided on home loans (of
up to Rs. 6 lakh) taken by eligible urban poor (economically weaker
sections/low-income groups) for acquisition, construction of house.
IMF retains
India’s economic growth forecast
•
The
International Monetary Fund (IMF) has kept India’s growth projection unchanged
at 7.3 per cent in the current fiscal and 7.5 per cent in the next year in its
World Economic Outlook (WEO) update.
•
The
update released expects Indian economy to be the fastest among major economies.
The IMF has pegged the current year’s growth at 7.3%, same as last year.
NBFCs’ body
calls for parity with banks on tax issues
•
The
Finance Industry Development Council (FIDC) has urged the Centre to bring NBFCs
in sync with banks on the aspect of tax matters.
•
FIDC
submitted in its recent pre-budget interaction with Finance Minister Arun
Jaitley said that the revised regulatory framework for NBFCs brings parity with
banks; there is a need to bring parity on tax matters too.
•
NBFCs
are suffering from a distinct negative bias on tax issues, in spite of
indulging in similar activities to banks, according to FIDC.
•
FIDC
has made representations around tax issues, specially pertaining to tax
deduction at source, income recognition on NPAs, and dual taxation on
lease/hire purchase.
RBI reviews
steps taken by banks to clean up books
•
Reserve
Bank of India reviewed the functioning of various mechanisms of banks, staring
at the March 2017 deadline to purge their books of bad loans.
•
The
various mechanisms includes the Joint Lenders’ Forum, Strategic Debt
Restructuring Scheme and sale of assets to asset reconstruction companies.
•
The
stressed assets (gross non-performing assets plus restructured standard
advances) situation is becoming dire for public sector banks. This comes in the
backdrop of slowing factory output and lack of investment appetite in the
private sector.
Exim Bank pact
to boost exports from Andhra Pradesh
•
Exim
Bank of India and the Government of Andhra Pradesh have entered into a
Memorandum of Understanding (MoU) for promotion of exports from the state.
•
The
MoU was signed by the Chairman and Managing Director of the bank, Yaduvendra
Mathur, and Secretary and Commissioner for Industrial Promotion, Government of
Andhra Pradesh, Shamsher Singh Rawat.
Exim Bank raises
$500 million via overseas bonds
•
The
Export-Import Bank of India has raised $500 million via bonds issued in
overseas markets.
•
The
funds mobilized through the offshore bond offering would be used to support
Indian project exports and overseas investments by way of long-term credit.
•
The
issue attracted a total order book of over $1.25 billion, achieving
oversubscription by 2.5 times of the issue size, from over 110 investors.
•
The
5.5-year $500-million Euro-dollar bond issue was priced at 165 basis points
over US Treasuries at a fixed coupon of 3.125 per cent per annum.
RBI allows banks
to offer more services via offsite ATMs
•
Reserve
Bank of India said the banks are now free to offer all their products and
services through the ATM channels provided technology permits the same.
•
However,
RBI said banks have to ensure that adequate checks are put in place to prevent
the (ATM) channel from being misused to perpetuate frauds on banks/other
genuine customers.
•
According
to RBI data, there were 1,92,166 ATMs across the country as at November-end
2015. The volume of transactions at the ATMs using debit and credit cards was
at 675.09 million and 0.49 million, respectively.
SBI launches SBI
E-Smart SME to offer loans to e-commerce sellers
•
State
Bank of India has announced launch of SBI E-Smart SME to offer easy working
capital to online e-commerce players.
•
The
bank has initially tied up with e-commerce major Snapdeal to offer instant
loans to its sellers.
Syndicate Bank
to sway customers with Yakshagana
•
Syndicate
Bank is all set to use a folk art form Yakshagana to popularise financial
inclusion and social security schemes to the masses.
•
The
bank has come out with a 10-minute Yakshagana CD in Kannada and Hindi. In
Yakshagana, a folk theatre form, artistes use songs, dance and dialogues to
perform.
•
Syndicate
Bank use this traditional art form to create awareness on programmes, such as
Pradhan Mantri Jan Dhan Yojana (PMJDY), Atal Pension Yojana, RuPay card,
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha
Bima Yojana (PMSBY).
Aadhaar not
mandatory for DBT scheme: RBI
•
RBI
in its statement said the use of Aadhaar cards and seeding of bank accounts
with those numbers are purely voluntary and not mandatory on the Direct Benefit
Transfer (DBT) Scheme.
•
Earlier,
with a view to facilitating DBT for delivery of social welfare benefits through
direct credit to bank accounts of beneficiaries, RBI had advised lenders to
open accounts in camp mode with support from local authorities.
•
On
October 15, 2015, the Supreme Court had lifted its earlier restriction and
permitted voluntary use of Aadhaar cards in welfare schemes, which included
MGNREGA, all pension schemes and the provident fund, besides ambitious flagship
programmes like ‘Pradhan Mantri Jan Dhan Yojna’.
Govt’s planned
Rs. 70,000-cr capital infusion in PSBs is only half the required amount: ICRA
•
Credit
rating agency ICRA has estimated that credit growth will decline to 8-10 per
cent if the Centre infuses only Rs. 70,000 crore in public sector banks.
•
However,
according to ICRA, the requirement is Rs. 1.3 lakh crore, close to double the
amount the Centre plans to infuse in PSBs.
•
According
to ICRA, the infusion of Rs. 1.3 lakh crore in the form of equity or additional
Tier-1 capital from the Centre during the period FY16-19 is needed to maintain
Tier-1 capital adequacy at the minimum prescribed level of 9.5 per cent, for the
government-forecasted credit growth rate of 13.5 per cent.
SBI, Exim Bank of Korea ink $500-m credit line
•
State Bank of India
(SBI) and Export-Import Bank of Korea (K-Exim) concluded a $500-million (about
Rs. 3,300 crore) line of credit.
•
The agreement was
signed by Arundhati Bhattacharya, Chairman, SBI, and Duk Hoon Lee, Chairman and
President, K-Exim.
•
With the signing of
this line of credit (LoC), the total facility from K-Exim to SBI will be $1
billion. The latest facility will have a maturity of a maximum 15 years.
India puts on hold further market access to Singapore’s DBS Bank
•
India has decided to
halt the expansion of Singapore-based DBS Bank by delaying grant of the
No-Objection Certificate (NOC) indefinitely even as it pushed for greater
access of Indian banks in that market.
•
DBS India had made
an application in April last year to the Reserve Bank of India (RBI) to become
a wholly-owned subsidiary of the parent, thereby expanding its retail
operations into Tier-2 and Tier 3 cities by opening six more branches.
•
At present, it has
branches in 12 cities: Delhi, Mumbai, Kolkata, Chennai and Bangalore, among
others.
Forex reserves enough to cover almost 10 months’ imports: RBI
•
According to the
Reserve Bank of India’s ‘Half-yearly Report on Management of Foreign Exchange
Reserves, the import cover of India’s foreign exchange reserves increased to
9.8 months as at September-end 2015 from 8.9 months in March-end 2015.
•
Under Short-term
debt:
•
The RBI report said
the ratio of short-term debt to foreign exchange reserves, which was 25 per
cent in March 2015, declined to 24.6 per cent in September.
•
The ratio of
volatile capital flows to reserves declined to 88 per cent in September from
92.3 per cent in March.
Under
Gold holdings:
o
Reserve Bank said it
held 557.75 tonnes of gold, of which 265.49 tonnes were held overseas with the
Bank of England and the Bank for International Settlements (BIS).
o
Gold as a share of
the total foreign exchange reserves in value terms (US dollar) stood at about
5.2 per cent in September 2015, against 6.4 per cent in September 2014.
Under
Rate of interest:
o
The rate of earnings
on foreign currency assets, which was 1.21 per cent during July 2013 to June
2014 (RBI financial year), increased to 1.36 per cent during July 2014 to June
2015.
Janalakshmi Financial Services gets Rs. 330 cr from UK’s CDC
Group
•
CDC Group plc, UK’s
development finance institution, has invested $50 million (about Rs. 330 crore)
as Tier-II capital in Bengaluru-based microfinance institution Janalakshmi
Financial Services.
•
Janalakshmi
Financial Services is one of the 10 entities given in-principle approval by the
Reserve Bank of India in September 2015 to start a small finance bank.
MUDRA refinancing touches Rs. 1,500 cr so far this fiscal
•
The Micro Units
Development and Refinance Agency (MUDRA), set up to provide credit to micro and
small units, has so far refinanced Rs.1,500 crore, mostly to public sector
banks and micro-finance institutions (MFIs).
•
Loans were disbursed
by banks and MFIs under the Pradhan Mantri MUDRA Yojana (PMMY).
•
In the 1,500 crore
around Rs. 800 crore has been refinanced to public sector banks. Some of the
refinanced banks include Bank of Maharashtra, Indian Overseas Bank and State
Bank of Travancore.
HDFC Standard Life floats reinsurance arm in Dubai
•
HDFC Standard Life
Insurance Company, a subsidiary of Housing Development Finance Corporation
(HDFC), has incorporated HDFC International Life and Re Company Ltd (HILRCL)
with an initial capital outlay of $12.33 million in the Dubai International
Financial Centre (DIFC).
HILRCL will operate in DIFC, and will shortly commence its
business operations, subject to completion of further regulatory formalities
for obtaining the final licence from the Dubai Financial Services Authority.
ADB to fund $840-m corridor between Vizag, Chennai
•
The Asian
Development Bank will extend a $625 million loan to the proposed $840 million
Visakhapatnam-Chennai Industrial Corridor (VCIC).
•
The building blocks
of the corridor would be node-centred development and trade and transport.
•
The industrial
corridor, meant to boost manufacturing activity and help economic growth of the
hinterland, will have four nodes: Visakhapatnam, Kakinada,
Gannavaram-Kankipadu, and Yerpedu-Srikalahasti.
SBI to set up trade receivables platform
•
State Bank of India
will partner with SIDBI and National Stock Exchange (NSE) to set up a trade
receivables platform to facilitate better credit flow to small and medium
enterprises (SMEs).
•
Once these platforms
go operational, things will become much better for small traders.
•
Setting up a trade
receivables platform could benefit several small traders and SMEs who find it
difficult to recover payments for the goods and services supplied to large
industries.
ADB loan, grant disbursals up 21% to $12.34 b in 2015
•
The Asian
Development Bank’s operations, including approvals for loans and grants,
technical assistance and co-financing, grew over 19 per cent to $27.15 billion
in 2015 as against $22.89 billion in 2014.
•
Total disbursements
of loans and grants grew 21 per cent to $12.34 billion in 2015, according to
provisional data released by ADB.
•
Further, approvals
of loans and grants (both sovereign and non-sovereign) grew 23 per cent to
$16.58 billion in 2015 while, technical assistance was $144 million and
co-financing was $10.43 billion in 2015.
NPCI, CSE eGov launched Aadhaar enabled payment system
•
India’s retail
payment platform NPCI and CSC eGov have jointly launched Aadhaar enabled
payment system that will facilitate government entitlements such as NREGA as
well as old age pension.
•
The National
Payments Corporation of India (NPCI) has collaborated with CSC e-Governance
Services India to launch Aadhaar Enabled Payment System (AePS) at locations
where CSC eGov has been acting as Business Correspondent of banks.
•
This system is based
on demographic and biometric/iris information of an individual, which
eliminates the threat of any fraud and non-genuine activity. Aadhaar will facilitate
‘anytime, anywhere, anyhow’ authentication to its beneficiary.
IFSC banking units can open foreign currency current accounts:
RBI
•
Banking units
operating in International Financial Service Centres (IFSCs) can now open
foreign currency current accounts of units operating in IFSCs and of
non-resident institutional investors to facilitate their investment
transactions.
•
Until now, the IBUs
(IFSC banking units) were not allowed to open any current or savings accounts.
All transactions through these accounts must be undertaken via bank transfers.
•
RBI also clarified
that the IBUs cannot raise liabilities from retail customers including High Net
worth Individuals (HNIs). Also, no cheque facility will be available for
holders of current accounts in the IBUs.
Banks told to frame policy for non-fund-based facility
•
The Reserve Bank of
India said banks can grant non-fund-based facilities, including Partial Credit
Enhancement (PCE), to those customers, who do not avail any fund-based facility
from any bank in India, subject to conditions.
•
According to RBI,
banks should formulate a comprehensive Board-approved loan policy for grant of
non-fund-based facility to such borrowers.
•
Banks should
undertake the same level of credit appraisal as has been laid down for fund-based
facilities. The banks should ensure that the borrower has not availed any
fund-based facility from any bank operating in India.
ICICI Bank partners with FINO PayTech for payments bank space
•
India’s largest
private sector lender ICICI Bank has partnered with FINO PayTech to foray into
the payments bank space.
•
With this
partnership, ICICI Bank joins some of the leading lenders of the country that
have partnered with payments banks. Kotak Mahindra Bank (KMB) and State Bank of
India (SBI) have picked up stake in payments banks to be floated by Bharti
Group and Reliance Industries respectively.
•
FINO Paytech along
with 10 other entities had received ‘in principle’ licence from the Reserve
Bank of India (RBI) to start a payment bank.
SBI to set up special branch for start-ups in Bengaluru
•
The country’s
largest bank will soon set up a first-of-its-kind branch to cater exclusively
to the growing banking needs of start-ups.
•
The bank has zeroed
in on Bengaluru, the so-called Silicon Valley of India, for setting up its
dedicated branch for emerging businesses.
•
The city is home to
hundreds of start-ups, including ZopNow, Urban Ladder, Furlenco, and Instakash.
It is also the headquarters of one-time start-up and now ecommerce giant
Flipkart.
Andhra Bank launched Immediate Payment Service
•
Andhra Bank launched
Immediate Payment Service (IMPS) across all its branches in association with
the National Payments Corporation of India (NPCI).
•
The service makes
payments possible within fraction of seconds with all the standards and
integrity maintained for security.
RBI imposed 1 crore rupees Penalty on State Bank of Travancore
•
•The monetary
penalty has been imposed for violation of its instructions including reporting
of data to Central Repository of Information on Large Credits (CRILC).
•
•The penalties have
been imposed in exercise of powers vested in the Reserve Bank under the
provisions of Section 47(A) (1) (c) read with Section 46(4)(i) of the Banking
Regulation Act, 1949, taking into account the violations of the instructions/directions/guidelines
issued by the Reserve Bank from time to time.
IDBI raises Rs.1,900 crore via Basel-III compliant bonds
•
•The funds would
help the bank to augment its capital adequacy ratio by about 55 basis points.
•
his is in addition
to Rs.1,000 crore raised on December 31, 2015 through the issue of similar
bonds to Employees’Provident Fund Organisation (EPFO) but with 15 years tenure
from the date of deemed allotment.
•
The second issue of
Rs.900 crore concluded on January 2, with a tenor of 10 years. According to the
bank, the central government has approved it to raise capital to the tune of
Rs.3,771 crore through qualified institutional placement (QIP) at an
appropriate time.
Jammu and Kashmir Bank's pan-India ATM footprint tops 1,000
•
The ATM network of
Jammu and Kashmir Bank has crossed the 1,000-mark.
•
It has added 676 ATM
machines to its network over the past five years.
•
Over 900 ATMs are
put up in Jammu and Kashmir alone. The ATM footprint of the bank is spread
across the state, with Jammu accounting for 327, Kashmir 568 and Ladakh 23.
•
The bank was
instrumental in setting up the first ATM in the state at the Residency Road in
1996. It has currently over 23 lakh debit card holders.
•
Chairman and CEO of
the Jammu and Kashmir Bank is Mushtaq Ahmad.
BoB debuts on social media, launches twitter handle
•
Bank of Baroda has
entered the social media space by launching its Facebook page and Twitter
handle as part of its efforts to restore its image that has been hit by the
alleged Rs 6,100-crore remittance scam.
•
An unaccounted Rs
6,172 crore was purported to have been remitted from a Delhi branch of Bank of
Baroda to Hong Kong camouflaged as payments for non-existent imports such as
cashew, pulses and rice.
•
BoB will be
available on Facebook and Twitter and
Kotak Mahindra Bank acquires 10% stake in Institutional investor
Advisory Services India
•
Kotak Mahindra Bank
bought a 10% stake in Institutional Investor Advisory Services (IiAS) for Rs 1
crore.
•
Kotak Bank bought
the stake from BSE, which had put its 30% stake in IiAS on the block more than
a year ago.
NABARD, NRSC signed MoU for monitoring Watershed Projects
•
The National Bank
for Agriculture and Rural Development (NABARD) signed an Memorandum of
Understanding (MoU) with National Remote Sensing Centre (NRSC) for web-based
monitoring of Indo-German Watershed Development projects.
•
Under the MoU, NRSC
will create a separate page for NABARD on Bhuvan web-portal. NRSC will develop
customised software tool and mobile application for real time monitoring,
online comparison and visualisation with respect to activities implemented in
the projects.
Bank of India raises Rs. 3,000 cr via Basel-III compliant bonds
•
Public sector lender
Bank of India raised Rs. 3,000 crore by issuing Basel-III compliant tier-II
bonds.
•
The coupon rate on
the bonds with a tenor of 10 years is fixed at 8.52 per cent.
•
A Fitch Ratings
report said banks in India will need about $140 billion to ensure full
compliance with the Basel-III norms by 2018-19.
•
The Basel-III
capital regulation has been implemented from April 1, 2013 in phases, to be
fully implemented by March 31, 2019.
RBI to Banks: Replace defective 1,000-rupee notes
•
Out of 300 million
defective banknotes that were printed in one of the printing presses of
government-owned Security Printing and Minting Corporation of India, about 100
million of those notes have hit the market leaving the general public in a
tizzy.
•
About 200 million
pieces were transferred to the RBI’s currency chests, some of which was then
loaded in banks’ automated teller machines.
•
There are four
printing presses which print and supply banknotes. These are at Dewas in Madhya
Pradesh, Nasik in Maharashtra, Mysore in Karnataka and Salboni in West Bengal.
PNB launches host of digital banking solutions
•
Punjab National Bank
launched host of digital banking solutions including green PIN and enhancement
of its mobile app.
•
The bank launched
mobile apps enabling the customer to locate PNB ATM with PNB ATM Assist.
•
The Android app
facilitates the customer to use GPS and reach the nearest PNB ATM, it also
assists customer to instantly lodge operational issues, reducing the resolution
time considerably.
Govt securities of less than 10-year residual maturity to be
pruned: RBI
•
Reserve Bank of
India said the share of government securities of residual maturity less than 10
years would be brought down to 55 per cent by fiscal 2020-21 from the 58.59 per
cent as at end-March 2015.
•
This is to alleviate
the redemption pressures in the less than 10-year maturity buckets and further
moderate rollover risk.
Iran’s leading banks will soon open branches in India
•
Iran’s leading banks
will open branches in India to energise commercial ties between New Delhi and
Tehran.
•
The decision was
amongst a slew of commercial measures taken by the India-Iran Joint Commission
that met for the first time.
•
After the meeting
led by External Affairs Minister Sushma Swaraj and Iranian Finance Minister Ali
Tayebnia, India decided to allow the Pasargan Bank and Parsian Bank of Iran to
set up branches in New Delhi and Mumbai.
IDFC Bank to turn Rs.350-cr Lanco Infra loans to CCDs
•
Lanco Infrastructure
Ltd approved a move to issue Compulsorily Convertible Debentures (CCDs) on
preferential basis to IDFC Bank, worth about Rs.350 crore.
•
The board of
directors of the diversified infrastructure company, decided to issue CCDs of
face value of Rs.10 each at par on preferential basis to IDFC Bank.
•
It is proposed to
issue securities worth Rs.350 crore with each CCD to be converted into equity
shares of Rs.1 each at the end of 12 months from the date of allotment of CCDs.
Villages over 5,000 residents to have bank branches by Mar 2017
•
Reserve Bank said
every village with a population over 5,000 should have a bank branch by March
2017 and asked the State Level Bankers' Committees (SLBC's) to identify such
villages without a bank branch in their state.
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