Current Affairs May 2019 - Banking & Finance
1 - Indian Overseas Bank launches ‘Bank on Wheels’ facility
Indian Overseas Bank (IOB) has announced that it has launched ‘Bank on Wheels’ facility in 14 districts in Tamil Nadu and Kerala, besides the city of Vijayawada. The mobile van facility will enable the public, especially senior citizens, conveniently get door-step banking facility available at identified locations of the lead districts.
A dedicated banking correspondent will accompany the vehicle with a micro-ATM inside the van to take care of services such as account opening, enrollment of customers in Social Security Scheme, passbook printing, and other financial inclusion activities.
2 - India’s Economy To Grow 7.5% By 2020: OECD Report
As per the Organisation for Economic Co-operation and Development's (OECD) Economic Outlook, India's economic growth will regain its strength and approach 7.5% by 2020 sustained by rural consumption and subdued inflation.
As per the report, Gross domestic product (GDP) growth in India is projected to strengthen to close to 7.25% in FY19.
3 - RBI Allows Modern Currency Chests To Hike Service Charges
The Reserve Bank of India has announced that it will allow large modern currency chests to increase the service charges on cash deposited by non-chest bank branches from the existing rate of Rs5 per packet of 100 pieces to a higher rate subject to a maximum of Rs8 per packet.
For this, only a currency chest (CC) that fulfils the minimum standards will be eligible to be classified as a large modern CC
4 - Reliance Beats Indian Oil Corporation, Becomes Biggest Indian Company
Reliance Industries has toppled state-owned Indian Oil Corporation (IOC) to become the country’s biggest company by revenue.
The Mukesh Ambani-led conglomerate, in the 2018-19 fiscal year that ended March 31, reported a turnover of Rs 6.23 lakh crore. In comparison, IOC posted a turnover of Rs 6.17 lakh crore for the fiscal.
5 - SBI Ties Up With FMCG Arm Of The Art of Living
The State Bank of India (SBI) has announced a strategic partnership with the FMCG arm of The Art of Living - Sri Sri Tattva.
Under this partnership, YONO users can avail a discount of 15% on the entire range of products offered by Sri Sri Tattva such as food, personal care, healthcare, homecare, BYOGI apparels and Shankara skincare products.
6 - BSNL Partners Google To Expand Wi-Fi Footprint In India
State-run telco BSNL has announced that it has joined hands with internet major Google to expand its WiFi footprint across the country.
Google has previously completed the rollout of RailWAccording to an Analysys Mason study, public Wi-Fi will connect 40 million new users to the internet by 2019.
7 - HDFC Capital Launches 'HeART' To Mentor Real Estate Technology Companies
HDFC Capital Advisors, a wholly-owned subsidiary of HDFC Ltd, launched a new initiative called 'HDFC Affordable Real Estate and Technology Program (HeART).
It aims to mentor, partner and invest in real estate technology companies that drive innovation and efficiencies within the affordable housing ecosystem.
8 - Debit Card Swipes On PoS Terminals Rise 27% in March 2019: RBI
According to the RBI data, in Mar 2019, the total number of financial transactions done by people using their debit cards increased by 15%.
Also, the financial transactions done by the debit cards at POS terminals increased by 27% compared to March 2018.
In actual terms, the total number of financial transactions done by people using their debit cards at ATMs stood at 891 million for the month of March, increased by 15%, against 775 million in March 2018.
9 - RBI Slaps Rs1-crore Fine On Nainital Bank
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs1 crore on Nainital Bank for its failure to fully automate the non-performing asset (NPA) identification process, despite specific directions issued in this regard.
10 - ICICI Bank Joins Hands With Travel Portal Goibibo
ICICI Bank announced the launch of a co-branded multi-currency card with online travel booking portal Goibibo.
The card also includes benefits of up to Rs20,000, including gift vouchers of Rs15,000from Goibibo.
11 - In a 1st, NABARD Announces Rs700-cr Venture Capital Fund For Agriculture, Rural Startups
The National Bank for Agriculture and Rural Development (NABARD) announced Rs 700-crore venture capital fund for equity investments in agriculture and rural-focused startups. NABARD has been contributing to other funds till now and this is the first time that the rural development bank has launched a fund of its own.
The fund has been launched by Nabventures, a subsidiary of NABARD, and has a proposed corpus of Rs 500 crore with an option to retain over-subscription of Rs 200 crore, called as the greenshoe option.
12 - RIL Acquires British Toy Retailer Hamleys
Reliance Industries Ltd. (RIL) acquired British toy retailer 'Hamleys' in an all-cash deal. RIL has acquired Hamleys in 67.96 million pounds (about Rs. 620 cr).
With this announcement, Reliance will get hold of 100% shares of Hamleys Global Holdings Limited (HGHL).
13 - India Ratings Downgrades Yes Bank With Negative Outlook
India Ratings has downgraded the YES bank’s long-term rating to ‘IND AA-’ with a negative outlook, while reaffirming short-term rating. ICRA has also downgraded the long-term ratings of the lender.
Accordingly, six instruments with a total borrowing of over Rs 33,000 crore were also downgraded.
14 - Airtel, Hughes To Combine Their India VSAT Operations
Sunil Mittal led telecom major Bharti Airtel and Hughes Communications India (HCIL)have decided to combine their VSAT (Very Small Aperture Terminal) satellite communications operations in India. The transaction is subject to approvals by relevant authorities.
HCIL is the India unit of Hughes Network Systems, LLC, the global leader in broadband satellite networks and services. VSAT refers to the provision of data services using satellites and is used extensively by banks and ATMs.
15 - RBI Enhances Housing-Loan Limits Under Priority Sector Lending For RRBs, SFBs
The Reserve Bank of India has decided to enhance the housing loan limits for Regional Rural Banks (RRBs) and Small Finance Banks (SFBs) for eligibility under priority sector lending, in a bid to give them a level playing field with other Scheduled Commercial Banks.
Henceforth, housing loans given by RRBs and SFBs to individuals up to INR 35 lakh in metropolitan centers (with population of 10 lakh and above) and INR 25 lakh in other centers.
16 - Mastercard Announces $1 Billion Investment In India
Global card payments brand Mastercard has announced its plan of investing $1 billion in India operations over the period of next 5 years. About $350 million of the total amount would be invested in setting up a local payments processing center as per the Reserve Bank of India’s mandate to store all payments data locally.
The rest of the investment will go towards existing services and expanding capacity among others. This is the first such processing center of the company outside of the US and could provide service markets such as Southeast Asia and Asia-Pacific.
17 - RBI Imposes Fines On PPIs For Violating Norms
The Reserve Bank of India has slapped a monetary penalty on five pre-paid payment instrument issuers including Vodafone m-pesa and Phonepe, for violating regulatory guidelines.
A penalty of INR 5 lakh has been imposed on Y-Cash Software Solutions. It had imposed a penalty of INR 29.67 lakh on Western Union Financial Services Inc., USA., and INR 10.12 lakh on MoneyGram Payment Systems Inc, USA, for non-compliance of regulatory guidelines.
18 - State Bank of India Links Interest Rates To RBI's Repo Rate
India's largest bank State Bank of India has moved to a new interest rate regime on large savings account deposits as well as short-term loans.
Earlier, SBI had announced that it will link its interest rate on savings account with a balance above Rs1 lakh and short-term loans like overdraft and cash credit facility to Reserve Bank of India's repo rate, effective 1 May 2019.
19 - LIC HFL launches Udyam Centre in Bengaluru
LIC Housing Finance (LIC HFL) has launched ‘Udyam’, a skilling center in Bengaluru. It was launched in association with Lok Bharti Education Society, the implementing partner.
The Centres of Excellence will provide training to marginalised youth in the BFSI, retail, and IT/ ITES sectors.
20 - Netherlands Becomes The Third Largest Foreign Direct Investor In India
The Netherlands has emerged as the third largest foreign direct investor in India during 2017-18, with investments pegged at about $2.67 billion across sectors.
The Netherlands was also the second largest destination for foreign investment by Indian companies, after Singapore, with investments worth $12.8 billion in 2017.
21 - RBI sets up committee on corporate loans
RBI has constituted a six-member committee on the Development of Secondary Market for Corporate Loans to come up with recommendations to increase the efficiencies of the debt market and aid in the resolution of stressed assets.
The committee, headed by TN Manoharan, Chairman, Canara Bank, will make recommendations on required policy/regulatory interventions for facilitating the development of the secondary market in corporate loans, including loan transaction platform for stressed assets.
22 - RBI extends timings for RTGS from 4:30 pm to 6:00 pm
RBI has extended timings for customer transactions in the Real Time Gross Settlement (RTGS) system to 6:00 pm from 4:30 pm. The new time window for RTGS will come into effect from 01st June 2019.
The customer is charged a ‘time-varying charge’ on each outward transaction in addition to the flat processing charge. The fee for transfers between 8 am to 11 am is nil, from 11 am to 1 pm is Rs 2, and from 1 pm to 6 pm is Rs 5. The fee for transfers made after the initial cut off of 6 pm will be Rs 10. The initial cut off for customer transactions will be 6 pm and the final cut off for inter-bank transactions will be 7:45 pm. The IDL reversal will take place between 7:45 pm and 8 pm.
23 - Corporation Bank launches loan scheme for MSME sector
State-owned Corporation Bank has launched ‘SMESuvidha’ scheme to provide loans to the GST-registered MSMEs at affordable interest rates. The product is designed as a part of the lender’s efforts to improve service and provide the best products to the MSME sector. This is a unique product for GST-registered Micro, Small and Medium Enterprises (MSMEs).
The bank is actively participating in the government’s flagship programmes including ‘MUDRA’ and ‘Stand-up India’ to provide the much-needed push to the MSME sector.
