Saturday, 4 June 2016

Banking Awareness Important Points 2016 Part-1

Dear mm expert readers. Today we are publishing very important and must series study note on Banking Awareness Important Points 2016 Part-1 for your all Banking examinations. These points are very expected for every SBI PO and Clerk exam and NABARD candidates for their knowledge update. This section also prepare for your Bank Interview questions. You also download PDF version for this article.

RBI released draft guidelines for licensing of Universal Banks in Private Sector



The Reserve Bank of India (RBI) on 5 May 2016 released Draft Guidelines for on tap licensing of Universal Banks in the Private Sector. It also sought views and comments on the draft guidelines from banks, non-banking financial institutions, industrial Rbinotehouses, other institutions and the public at large latest by 30 June 2016. RBI will issue the final guidelines will after receiving feedback, comments and suggestions on draft guidelines.


Main features of the draft guidelines:

Eligible Promoters:

I. Existing non-banking financial companies (NBFCs) that are controlled by residents and have a successful track record for at least 10 years.

II. The residents, individuals or professionals who have 10 years of banking and finance experience.

III. Residents owned entities or groups in the private sector which have a successful track record for at least 10 years.

Fit and Proper criteria:  Promoter or promoting entity or promoter group should have a past record of sound financials, credentials, integrity and have a minimum 10 years of successful track record.

Corporate structure:

I. The requirement of Non-Operative Financial Holding Company (NOFHC) is not mandatory for individual promoters or standalone promoting or converting entities that do not have other group entities.

II. Individual promoters or promoting entities or converting entities that have other group entities, shall set up the bank only through an NOFHC.

III. The NOFHC shall be owned by the promoter/promoter group to the extent of not less than 51 per cent of the total paid-up equity capital of the NOFHC.

Minimum capital requirement: The initial minimum paid-up voting equity capital for a bank shall be 5 billion rupees. Thereafter, the bank shall have a minimum net worth of 5 billion rupees at all times.

Foreign shareholding in the bank:  The foreign shareholding in the bank would be as per the existing foreign direct investment (FDI) policy. The aggregate foreign investment limit is 74 per cent.

Corporate governance prudential and exposure norms:

I. The bank shall comply with the provisions of Banking Regulations Act, 1949 and the existing guidelines on prudential norms as applicable to scheduled commercial banks.

II. The bank is precluded from having any exposure to its promoters, major shareholders who have shareholding to the extent of 10 per cent or more of paid-up equity shares in the bank.

Business plan for the bank:  A realistic and viable business plan should be submitted that can propose the bank’s ability to achieve financial inclusion.

Other conditions:  The bank shall get its shares listed on the stock exchanges within six years of the commencement of business by the bank.

Backdrop:

• Reserve Bank of India issued guidelines for licensing of new banks in the private sector earlier on 22 February 2013.

• Therefore, the Reserve Bank issued in-principle approval to two applicants and they have since established the banks.

• On recommendations of the Narasimham Committee, Raghuram G. Rajan Committee and other viewpoints to have an explicit policy on banking structure in India, the RBI came out with a policy discussion paper on Banking Structure in India The Way Forward on 27 August 2013.

• The first Bi-monthly Monetary Policy Statement 2014-15 announced on 1 April 2014.

 RBI releases consultation paper on Peer to Peer lending to classify it as NBFC


The Reserve Bank of India (RBI) on 28 April 2016 released consultation paper on Peer to Peer (P2P) lending to classify it as Non-Banking Financial Company (NBFC). The suggestions or comments on the Paper may be sent to Department oPeer to Peer lending to classify it as NBFCf Non-Banking Regulation, RBI on or before 31 May 2016. The Consultation paper outlines the pros and cons of regulating the sector and proposes a suitable framework for regulating the activity. It includes minimum capital, permitted activity, governance requirements, and fair practices code for customer dealing and data security.

Peer to Peer lending: It is a form of crowd -funding which can be defined as the use of an online platform that matches lenders with borrowers in order to provide unsecured loans.

Features of Peer to Peer lending:

• The borrower can either be an individual or a business requiring a loan.

• The lender can also be a natural or a legal person.

• Fee is paid to the platform by both the lender as well as the borrower.

• There are many variants of nature and extent of services provided by P2P platforms and global regulatory practices also vary.

• P2P lending is approached differently by regulators in different jurisdictions.

• They are treated as banking by some jurisdictions and as an intermediary in some others.

• Some jurisdictions like Israel and Japan have prohibited it altogether.

Five different ways to regulate P2P lending:

P2P lending is regulated in five different ways across the globe. They are

I. Exempt market/ Unregulated through lack of definition- China, Ecuador, Egypt, South Korea, Tunisia

II. Intermediary Regulation- Australia, Argentina, Canada (Ontario), New Zealand, United Kingdom

III. Banking Regulation- France, Germany, Italy

IV. US Model- United States of America

V. Prohibited- Israel, Japan

In India, at present, there is no clear regulatory framework governing in functioning of P2P lending platforms despite having many online P2P lending platforms.

100% FDI through Automatic Route permitted in Asset Reconstruction Companies


The Department of Industrial Policy & Promotion (DIPP) under Union Ministry of Commerce & Industry permitted 100% foreign direct investment (FDI) into asset reconstruction companies (ARCs) through automatic route. In this regard the DIPP noFDI through Automatic Route permitted in Asset Reconstruction Companiestified the Press Note 4 on 6 May 2016.

Important points:

• Person resident outside India can invest in the capital of ARCs registered with Reserve bank of India, up to 100 per cent on the automatic route. Earlier, it was 49 per cent through automatic route and beyond 49 percent through government route.

• It stated that total share holding of an individual foreign institutional investor (FII)/foreign portfolio investment (FPI) shall be below 10 per cent of the total paid-up capital.

• FIIs/ FPIs may be allowed up to 100 per cent of each tranche in security receipts (SRs) issued by ARCs which are subjected to RBI guidelines.

Asset Reconstruction Companies (ARCs):

• These are the companies that are set up to reconstruct or re-package assets to make them more saleable.

• The assets include loans from banks, card companies, financial institutions etc.

• They were set up to provide a focused approach to Non-Performing Loans resolution issue by:-

A) Isolating Non Performing Loans (NPLs) from the Financial System (FS),

B) Freeing the financial system to focus on their core activities and

C) Facilitating development of market for distressed assets.

Federal Bank ties up with US based payment company for faster international remittancesfedrl bnk


Kerala based private sector lender Federal Bank has tied up with Transfast Remittance LLC for facilitating online inward remittance to India in Rupees for their NRI customers based in USA. Transfast which is an omni-channel provider of cross-border payments solutions to consumers around the world. With this tie-up, the US-based NRI customers can transfer money instantly to their NRI account in India from their US bank account even by using Debit card/ Credit card. Customers can send money to India by creating an account on https://transfast.com/send-money-to-india or by downloading Transfast App in iOS/android mobiles.



SBI launches mobile-based payment solution mVisasbi


Country's biggest lender State Bank of India announced the launch of mVisa, a mobile-based payment solution. The service will help customers make payments through their smartphones by simply scanning the unique merchant QR (Quick Response) code at merchant outlets. It is a card-less solution which facilitates payment by scanning the QR code displayed at the merchant outlet or from the merchants mobile.



ICICI Bank signs MoU with BRICS Grouping-promoted New Development BankICICI bank


Private sector lender ICICI Bank became the first financial institution in the country to tie up with the BRICS Grouping-promoted New Development Bank (NDB) for a partnership in bond issuances, co-financing, treasury management and human resources. As part of the pact, the two lenders -- NDB's first president is ICICI Bank veteran KV Kamath -- will look at each other as "preferred partners", ICICI Bank said in a statement.



Cabinet approves MoU between RBI and Central Bank of UAErbi-seal


The Union Cabinet gave its ex-post facto approval to the memorandum of understanding (MoU) between the Reserve Bank of India and the Central Bank of United Arab Emirates (UAE) on co-operation on currency swap agreement. As per the MoU signed in February, RBI and the Central Bank of UAE will consider signing a bilateral Currency Swap Agreement on mutually agreed terms and conditions after undertaking technical deliberations, subject to concurrence of respective governments.

New fraud solution launched by Experian India for banking and insuranceExperian India for banking and insurance


Global data analytics company Experian, launched its 'Hunter Fraud Score', a new scoring mechanism that measures the probability of fraud in a credit application across banking and insurance industries. The new score will help retail finance providers and insurance companies in India significantly increase their efficiency in fraud detection. Businesses will be able to identify applications that should be screened for potential fraud, and prioritize those that have a high probability of being fraudulent. This will enable them to potentially lower their fraud losses and focus on approving applications from genuine customers.



Facility to control debit card frauds introduced by SBI Quick sbi


To check debit card frauds, State Bank of India (SBI) has launched a facility under 'SBI Quick: SMS and Missed Call Banking' service whereby the customer can choose to activate or deactivate their cards using various platforms, like ATM, and Point of Sale (POS). Activation or deactivation of the debit card can be done using platforms like ATM, Point of Sale (POS), e-commerce websites, international usage and domestic usage. This can be done by just sending an SMS.



ePaisa spins its digital wallets business into a new mobile application Master-WalletsePaisa


Mobile point-of-sale solutions company ePaisa is spinning off its digital wallets business into a new mobile application, Master-Wallets, a top executive of the company said. The new app, launched a month ago, is aimed primarily at shopkeepers who only want a way of collecting payments through digital wallets.



HDFC Life joins hands with Indiabulls Housing Finance for corporate agency tie upHDFC


India's second largest private insurer by new business HDFC Standard Life Insurance has tied up with Indiabulls Housing Finance Ltd for a corporate agency agreement. As part of the tie up Indiabulls Housing Finance will distribute HDFC life retail insurance products to its customers. Corporate agents are entities that solicit insurance policies for insurers. Agents are individuals doing the same job. Last year the insurance regulator IRDA had paved the way for an open architecture allowing corporate agents such as banks and non-banking finance companies to offer insurance policies of more than one insurance company.



Ajit Deshmukh named as head of investment banking by Equirus CapitalEquirus Capital


Mid-sized investment bank Equirus Capital has named Ajit Deshmukh as the new head of its investment banking operations, a position that was formerly held by the Mumbai-headquartered merchant bank's founder Ajay Garg. Garg will drive the investment bank's operations into portfolio management services and wealth management, as well as its institutional equities arm, which has been operational for over five years.

First small finance bank starts operationsCapital_Local_Area_Bank


Punjab-headquartered Capital Local Area Bank launched the country's first small finance bank, seven months after the Reserve Bank of India gave its in-principle approval for this new type of banks. Capital Small Finance Bank Ltd commenced operations with 10 branches.

Capital Local Area is one of the 10 companies that received the in-principle license in September to set up small finance banks, which are allowed to provide basic banking services. They have 18 months to comply with the rules and start operations.



Bank Board Bureau to soon start selection of PSB MDsvinod rai


The Bank Board Bureau will soon initiate the process of selecting managing directors of public sector banks, BBB chairman Vinod Rai said.

BBB was set up earlier this year to help the government select heads of public sector banks and financial institutions, and assist banks in developing strategies and capital-raising plans. It will also constantly engage with the board of directors of all public sector banks for their growth and development.



HDFC Bank's corporate banking business to be headed by Citibank's K BalasubramanianHDFC


HDFC Bank has roped in K Balasubramanian, a senior executive at Citibank, to head its corporate banking business from next month. Balasubramanian, currently managing director for corporate banking at Citibank, joins at a time when HDFC Bank, known for its retail banking focus, makes a push to attract more companies and institutions to bank with it even as some of its key domestic rivals are plagued by bad debt.



VirtusaPolaris, WorkFusion tie-up to deliver robotic automation to banking and financial sectorsVirtusa


VirtusaPolaris, the market-facing brand of Virtusa Corporation and Polaris Consulting & Services has announced a partnership with WorkFusion, a leading smart process automation provider. This partnership will deliver new smart automation solutions for the banking and financial services (BFS) market, which is the key area where VirtusaPolaris operates.

RBS to close down India business as it shrinks global assets


Royal Bank of Scotland (RBS.L) will close its corporate banking operations in India as part of a plan to sell or sRBShut businesses in two-thirds of the countries it operates in. RBS, which was briefly the world's largest bank by assets, has spent the eight years since a 45 billion pound ($64 billion) government bailout cutting costs and reorganizing.



Bharti Airtel-Kotak Mahindra Bank JV gets payment bank license from RBI


India's largest carrier Bharti Airtel received its payment bank license that is had applied for in partnership with Kotak MaBharti Airtel’shindra Bank, a move that will help the companies take Indian government's financial inclusion plans to the next level. Airtel M Commerce Services Limited (AMSL), a subsidiary of Bharti Airtel Limited has been granted payments bank license from Reserve Bank of India on April 11, 2016.



European Investment Bank to open regional office in Delhi by year-end


The European Investment Bank or EIB that supports long term investments for development projects in India will oEIB center in Delhipen a regional office for South Asia in India by the end of the year to augment its operations in the sub-continent. Last week Werner Hoyer, the president of the European Investment Bank, announced that the world's largest multilateral public bank would strengthen engagement to support long-term investment in India. Speaking alongside Prime Minister Narendra Modi at Brussels, the bank's president confirmed EIB's commitment to supporting long-term investment crucial for environmentally sustainable social and economic development in India and announced the opening of a Regional Representation for South Asia in New Delhi by the end of the year.

Vinod Rai to hold Bank Board’s first meet on 8th April 2016


Banks Board Bureau (BBB) headed by former Comptroller & Auditor General of India (CAG) Vinod Rai will hold its firvinod raist meeting on 8th April 2016. A government official said that the issues taken up for the first meet also includes consolidation among state-run banks. All issues will be discussed and accordingly it will be decided which ones will be put on priority. Capital infusion and selection method in state run lenders will also be taken up for discussion.



Federal Bank–Phillip Capital tie-up announced at Singapore


Kerala based private sector lender Federal Bank, tied up with Phillip Capital (India), a subsidiary of the Singaporfedrl bnke headquartered Phillip Capital group, for managing the NRI Portfolio Investment Scheme (PIS). PIS is a route designated by the Reserve Bank of India for Non-Resident Indians ( NRIs) and Persons of Indian Origin (PIOs) to invest in Indian Equity Markets for purchase of shares and convertible debentures listed on registered stock exchanges in India.

Phillip Capital is an integrated financial house with a global presence that offers a full range of quality and innovative services to retail, corporate and institutional customers.



Digital wallet companies like Paytm, Mobikwik won’t be roped in for toll collection


Payment technology firms like Paytm, Mobikwik and Citrus Pay are shut out of collaboration on toll collection on hdigital walletighways by the highways authority and the company executing electronic money collection at toll plazas. The payments company, National Payments Corp of India (NPCI), would go with full-fledged commercial banks, which appear to have covered a majority of the households that own cars, and truck drivers through debit or credit cards.

Karnataka to get first loan from BRICS Bank


The fledgling New Development Bank (NDB), better known as BRICS bank, will sanction its first loan to a project in India later this month, diversifying India’s options to raise long-term capital for infrastructure development. At its scheduled board meeting BRICS bankon April 14, the Shanghai-based NDB is expected to sanction $250-300 million as loan to a government-run solar power project in Karnataka. The interest rate for the 20-year loan would be Libor (the London Interbank Offered Rate) plus a spread, comparable to rates charged by other multilateral agencies such as the World Bank. To begin with, the NDB would lend to government projects under a co-financing model. State-run Canara Bank was the co-financier to the above-mentioned solar power project in Karnataka. The solar project was one of the three projects recommended by India for NDB’s consideration. The other two include an irrigation venture in Rajasthan and a road project in Madhya Pradesh.



World’s largest oil firm Aramco looks to India for investment


Saudi’s Aramco, the world’s largest oil firm with crude reserves of about 265 billion barrels, plans to make major investment in India’s petroleum sector as it considers India the most preferred destination to invest at a time when the global economy is iAramco India for investmenn a crisis. Head of Aramco, Khalid A Al Falih called on Prime Minister Narendra Modi during which he conveyed that the state-owned company was eyeing India as the most preferred investment destination. The Saudi government plans to sell shares in Aramco and transform the oil giant into an industrial conglomerate.

Energy-powerhouse Saudi Arabia is India’s largest crude oil supplier, accounting for about one-fifth of total imports and both sides were of the view that cooperation in the sector should expand. India is specifically looking at Saudi investment in “high temperature deep sea off shore exploration” and has opened up the sector for FDI.



Government invites proposals from PSUs for allotting 16 coal mines


Taking ahead its decision to open up the coal sector for commercial mining, government will invite proposals from public sector undertakings for allotment of 16 mines for carrying out production and sale of the dry fuel.  Of the 16 blocks “earmarkIndian Coal Minesed for State Public sector Undertakings for sale of coal”, five mines are in Madhya Pradesh, three in Telangana, two blocks each in Chhattisgarh, Jharkhand and Maharashtra, and one each in Odisha and West Bengal, according to an order of Coal Ministry. For the first time in over 40 years, the government is throwing open the coal sector for commercial mining, which is being undertaken by the central PSU Coal India.

SBI launches with its 'NO Queue' mobile app


State Bank of India has launched 'NO Queue' Mobile app to save its customers time to avail banking services. The appNo queue app SBIlication is a mobile based virtual queuing application for customers to book an instant queue ticket for selected services at select branches. Based on the services selected by the customers, the list of branches with addresses providing those services within a configured radius of 15 kms will be populated in the application.


Bharat Bank associates with Chillr, to make payments easier for its users


Bharat Bank, a Mumbai based co-operative Bank, announced its tie-up with mobile payment app Chillr. Chillr iBharat banks directly linked to the customer's bank account wherein the user can transfer money to any person with an account in the same bank in India, once he/she downloads the app and registers. Chillr is presently tied up with SBI, HDFC Bank and is in the process of integrating with Federal Bank.



SBI opens first digital branch in North East


Meghalaya Chief Minister Mukul M Sangma inaugurated the first Digital Branch of State Bank of India in North sbi3_660_080415012032East at its main premises. Speaking at the inaugural function, Mukul said the new digital branch will be more efficient in banking and financial delivery mechanism. He urged banks to collaborate with the government in its  various programmes that would open up opportunities not only for the banks but also for micro and small entrepreneurs.



Lakshmi Vilas Bank and NBHC tie up for collateral management & warehousing


Lakshmi Vilas Bank has tied up with National Bulk Handling Corporation (NBHC) for collateral managementlaxmi vilas and warehousing services. The objective of these services will enable industry traders and farmers in financing their capital requirements at all stages of supply chain, ranging from pre-harvesting to the marketing and export stages.

30) Capital Area Bank becomes first bank to get small finance bank license from Reserve Bank of India  Capital_Local_Area_Bank

Jalandhar based Capital Local Area Bank (CLAB) Limited became the first financial entity in India to get Small Financial Bank Licence by the Reserve Bank of India (RBI). CLAB ltd states to be largest local bank in the country with total 44 branches in five districts of Punjab. It will begin its operations as a small finance bank from April 13, 2016 and it will focus on the northern region for first five years of operations.

Backdrop: Earlier in September 2015, RBI has given principle approval to 10 entities including CLAB ltd to set up small finance banks to provide basic banking services to small farmers and micro industries. The in-principle approval had enabled these entities comply with the guidelines on Small Finance Banks and the approval will be valid for 18 months.

About Small Finance Bank: The small finance bank will undertake basic banking activities of acceptance of deposits and lending to unserved and underserved to further financial inclusion in the country. It will provide banking facilities to the unbanked sections. It will mainly target small business units, marginal farmers and unorganized sector entities through high technology-low cost operations.



SBI granted operating licence by Myanmar SBI New Logo final


State Bank of India (SBI) has been granted preliminary approval to operate Myanmar. SBI was granted operating licence by Myanmar Government along with three other Asian banks. They are Bank for Investment and Development of Vietnam, Sun Commercial Bank of Taiwan and Shinhan Bank of South Korea. With this, total 13 foreign banks have now been given permission to operate inside the Myanmar so far in an attempt to attract overseas investment to the emergent nation.



ICICI Bank presented iWork@home for women employees 2ICICI


ICICI Bank has presented iWork@Home programme for its women employees for up to a year. It was launched by Chanda Kochhar, Managing Director and CEO of ICICI Bank on the occasion of International Women’s Day (8th March).

Important facts: iWork@Home programme is an information and communication technology (ICT) initiative that seeks to prevent women employees from dropping out of its workforce. It is based on face recognition technology that will facilitate women employee to work from home and provide access to the bank’s core banking servers under. The technology has been developed by ICICI Bank in partnership with students from the Indian Institute of Technology (IIT) Delhi.



NBFC Altico Capital appoints Naina Lal Kidwai as independent non-executive director to its boardkidwai altico


Non-banking financial company Altico Capital India has appointed former HSBC India chairperson Naina Lal Kidwai as an independent non-executive director. Altico Capital is a foreign owned and controlled NBFCs with a net worth Rs 2,000 crore and is well capitalized to capture loan growth opportunities being presented due to the capital constraints in the banking system.



DBS to buy Royal Bank of Scotland’s Indian onshore operations for Rs 1,000 croreDBS


DBS Group Holdings, Southeast Asia's largest bank, is set to acquire Royal Bank of Scotland Group's Indian onshore operations for about Rs 1,000 crore, a much-awaited deal that will see the exit of Britain's biggest government owned bank from one of the fastest-growing economies. The transaction includes three main parts of RBS' India operations — a network of 10 branches, corporate loan platform and debt capital market.

Commercial Finance Business to be transferred into Separate Firm by Reliance Capital


Reliance Capital said that it will transfer its all commercial finance division into a separate company to unfold the value through sale of stake post the transfer, Reliance Capital would apply to the RBI for registering reliance capitalitself as a Core Investment Company (CIC) and this move would also facilitated the application of banking as license and when the apex bank's policy permits. According to the scheme the commercial finance division of Reliance Capital would be merged into Reliance Gilt Securities a wholly owned subsidiary of Reliance Capital and this merged entity would be renamed Reliance Commercial Finance.



RBI asks banks to issue point of sales machines in proportion to cards


The RBI is set to issue a direction to banks for improving the acceptance infrastructure. Besides asking banks to install point of sales (POS) terminals in proportion to the number of cards they have issued, the RBI will also come out with regulations ratirbi 22onalizing the merchant discount rate -the charges imposed by card companies on retailers. The guidelines will be announced following the Cabinet decision to do away with surcharge, service charge and convenience fee on card payments by various government departments. At present, high frequency and high-volume transactions which attract surcharge and convenience fees are those conducted for oil marketing companies through petrol pumps and IRCTC, which sells online tickets on behalf of Indian Railways. While the surcharge imposed by petrol pumps and IRCTC will be withdrawn, it is not clear whether LIC and Air India, both of which impose a fee on online payments, will also drop these charges.

Kotak Mahindra Bank’s acquired 19.9% stake in Airtel M Commerce


After having gained national footprint post its acquisition of ING Vysya Bank towards the end of 2014, Kotak Mahindrakotak mahindra Bank is now set on capturing good share of the payments bank business. The bank announced completion of the acquisition of 19.9 per cent stake in Airtel M Commerce, a wholly-owned subsidiary of Bharti Airtel, for Rs 98.4 crore. Payments banks are expected to offer last-mile connectivity and the new venture with Airtel will help Kotak ride on the telecom company's vast network across India, especially in cashless transactions.



Barclays’ Krishna Hegde to head consumer investment products at Paytm Bank


Mobile payments and ecommerce platform Paytm has hired Krishna Hegde to lead consumer investment products at its barclays krishnanew payments bank division. Krishna Hegde, who was managing director for credit research at Barclays, will relocate from Singapore to Paytm's headquarters in Noida in March and report to Shinjini Kumar, the chief executive of the payments bank business. Paytm Founder Vijay Shekhar Sharma, whose company counts Chinese e-commerce giant Alibaba as an investor, is one of the 11 individuals and entities who have got the Reserve Bank of India's permission to set up payments banks, or entities that can offer remittances and deposits but not loans. Sharma's payment bank is expected to launch operations in the second half of this year.



Yes Bank wins Green Bond Award in UK


Yes Bank has received the inaugural Green Bond Pioneer Award at a ceremony. The Green Bond Pioneer Awards for 'Pyes bank logoioneers in Emerging Markets-India' were organized earlier this month by Climate Bonds Initiative (CBI), an international investor-focused not-for-profit which focuses on mobilizing the USD 100-trillion bond market for climate change solutions. Yes Bank was recognized for its pioneering efforts in the Green Bonds market; including the highly successful issuance of India's first ever Green Infrastructure Bonds.

Aditya Birla Nuvo Ltd forms joint venture with Idea Cellular for payments bank


Aditya Birla Nuvo Ltd(ABNL) announced formation of a joint venture with group firm Idea Cellular to set up a payments bank. Last year in August, RBI had given in-principle approval to the company to set up a Payments Bank under the guidelines for adiya birlalicensing of Payments Banks. The company jointly with Idea Cellular Ltd has incorporated a new subsidiary for the above mentioned purpose in the name and style of Aditya Birla Idea Payments Bank Ltd. ABNL will hold 51 per cent shares and the rest 49 per cent by Idea Cellular. Payments banks are allowed to collect deposits (initially up to Rs 1 lakh per individual), offer Internet banking, facilitate money transfers and sell insurance and mutual funds.



Axis Bank partners with Suvidhaa to offer loans to urban poor


Private sector lender Axis Bank, in partnership with domestic remittance company Suvidhaa, is planning to lend low-income group people who have no proper credit score to boast and no bank guarantees to offer. Suvidhaa has processed the transaction hisaxis banktory of its 35 million customer base who have been doing remittances through its retail touch points for years. Axis Bank has run its own algorithms on this data, tracking the person's payments record across 85 points such as bill payments, remittances, mobile recharges to approve a term loan of Rs 7500, 12,000 or 15,000 to be repaid over a cycle of 18 months.



Yes Bank partners UltraCash for sound-based payments service


 Yes Bank has partnered UltraCash Technologies to launch payments processing through sound waves. UltraCash utilizes a patent-pending technology, through which payment data is securely transferred from one device to the other using unique ultra hiyes bankgh frequency sound waves. The innovative technology ensures that UltraCash's 'Tap and Pay' works on all devices and doesn't need any special hardware to make the payment. There is no need of special near field communication (NFC) chips. UltraCash's sound wave technology enables mobile payments to be done without the need for internet connectivity using any of the options such as bank account and cards.



Yes Bank, IREDA join hands to push green power


Yes Bank signed an agreement with the Indian Renewable Energy Development Agency (IREDA) to foster renewable energy (RE) development in India. The MoU will boost green energy financing and help forge a close partnership between both instituIREDAtions to create a supporting framework for funding of renewable energy and energy-efficient projects. The pact was signed at the ongoing Make in India Week in Mumbai.

RBI agrees to B Swaminathan's appointment as Non-Executive Chairman of Karur Vysya Bank


Karur Vysya Bank said the RBI has agreed to the appointment of Independent Director B Swaminathan as thkarur vysayae Non-Executive (Part-Time) Chairman of the bank for three years. The Board of the Tamil Nadu-based bank had recommended Swaminathan in November 2015 for the post, subject to the approval of country's top bank.



Axis Bank to launch wearables for its customers in collaboration with GOQii


Axis Bank has tied up with fitness firm GOQii to work together on wearable devices for its customers. Rajiv Anand, head-retail goqiibanking, Axis Bank, said that this would be the first MasterCard certified wearable device. The device will allow consumers to make NFC payments, and will come loaded with the regular fitness related features like the coach etc that the GOQii bands come with. This would be rolled out over the next few months. The bank will be working at incentivizing its customers to adopt a healthier lifestyle.



IOB modernizes banking system with Infosys’ Finacle 10


Indian Overseas has taken a late leap towards internet-enabled banking and data analytics by implementing Infosys Finaclinfosys finaclee's latest rack of software executed by American technology company HPE. Migration of over 3,500 branches networked by legacy software to the Finacle 10 suite, the first public sector bank to get the latest digital banking package from Infosys Finacle. The new technology will help IOB with "channel strategy," the catchphrase in banking circles over the best and cost-effective way of reaching customers with services and collect data about their usage behaviour.



Federal Bank, National Australia Bank tie up for transfer of funds


Federal Bank has partnered with National Australia Bank to provide its NRI customers in Australia online inward remittafedrl bnknce facility to India at a discounted rate. To benefit from the discount, customers need to register their National Australia Bank account details with Federal Bank.



J K Garg becomes MD of Corporation Bank


J K Garg has taken over as Managing Director and CEO of Corporation Bank following the retirement of S R Bansal. Befjk-gargore this appointment, Garg was Executive Director in UCO Bank. He had started his career at Corporation Bank in 1986, and would head the bank for three years. Garg has experience in credit management, recovery, forex operations, retail banking and administration.


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