Monthly Current Affairs October 2016 “BANKING & FINANCE” key points to Remember.
SBI announced the launch of a special financing scheme ‘Hope Loans’, under which customers
could avail credit facility at lower rates.
could avail credit facility at lower rates.
Black money worth Rs.65,250 crore disclosed under Income Declaration Scheme: Arun Jaitley
Kotak Mahindra Bank has acquired Karnataka-focused BSS Microfinance for Rs 139.2 crore.
RBI Governor Urjit Patel cuts interest rates, bats for growth in first monetary policy
In order to ease the inflation, the Reserve Bank of India cut policy rate (repo rate) by 25 basis points to 6.25% from 6.5%.
In order to ease the inflation, the Reserve Bank of India cut policy rate (repo rate) by 25 basis points to 6.25% from 6.5%.
The International Monetary Fund (IMF) revised projections for India’s economic growthby 0.2
percentage points to 7.6 per cent for 2016-17 and 2017-18.
percentage points to 7.6 per cent for 2016-17 and 2017-18.
SBI has announced its entry into Myanmar by opening a branch in the Yangon, former capital city of
Myanmar. The Yangon branch is the 54th foreign branch of the SBI.
Myanmar. The Yangon branch is the 54th foreign branch of the SBI.
According to the World Bank – India’s GDP Growth Would Be 7.6% This Year, 7.7% In 2017.
The Reserve Bank of India (RBI) released the Report of the Internal Working Group (IWG) on
Rationalisation of Branch Authorisation Policy. The Group is chaired by Lily Vadera, Chief General
Manager, and Department of Banking Regulation.
Rationalisation of Branch Authorisation Policy. The Group is chaired by Lily Vadera, Chief General
Manager, and Department of Banking Regulation.
Union Finance Ministry constituted a Public Debt Management Cell (PDMC). The cell was created
to streamline government borrowings and better cash management with the overall objective of
deepening bond markets.
to streamline government borrowings and better cash management with the overall objective of
deepening bond markets.
Financial services company MasterCard rolled out Selfie Pay app in Europe .This app will use facial
biometrics for payment authentication. It will supports both selfies and fingerprint
biometrics, offering users a choice of authenticating a mobile payment at the point of purchase.
biometrics for payment authentication. It will supports both selfies and fingerprint
biometrics, offering users a choice of authenticating a mobile payment at the point of purchase.
The Reserve Bank of India issued separate operating guidelines for payments banks and small
finance banks in view of their differentiated nature of business and focus on financial inclusion. As
per the guidelines, PBs could accept deposit only up to Rs.1 lakh. Small Finance Banks would have
to follow norms relating to minimum balance, inoperative accounts, nominations, and cheques/drafts.
PBs would have to maintain a minimum investment to the extent of not less than 75 per cent of
‘demand deposit balances’ as on three working days prior to that day, in Government
securities/Treasury Bills with maturity up to one year that were recognised by RBI as eligible
securities for maintenance of Statutory Liquidity Ratio (SLR).
finance banks in view of their differentiated nature of business and focus on financial inclusion. As
per the guidelines, PBs could accept deposit only up to Rs.1 lakh. Small Finance Banks would have
to follow norms relating to minimum balance, inoperative accounts, nominations, and cheques/drafts.
PBs would have to maintain a minimum investment to the extent of not less than 75 per cent of
‘demand deposit balances’ as on three working days prior to that day, in Government
securities/Treasury Bills with maturity up to one year that were recognised by RBI as eligible
securities for maintenance of Statutory Liquidity Ratio (SLR).
The International Monetary Fund (IMF) had asserted that adoption of GST (Goods and Services) tax
would boost India’s medium-term growth. India’s GDP growth is projected at 7.6 per cent in
both 2016/17 fiscal year (ending in March 2017) and 2017/18 fiscal year, up 0.1 percentage point
relative to the April 2016 World Economic Outlook, a survey conducted and published by the IMF.
would boost India’s medium-term growth. India’s GDP growth is projected at 7.6 per cent in
both 2016/17 fiscal year (ending in March 2017) and 2017/18 fiscal year, up 0.1 percentage point
relative to the April 2016 World Economic Outlook, a survey conducted and published by the IMF.
The Securities and Exchange Board of India (SEBI) has proposed a ban on unauthorised trading
tips through social media platforms like SMS, WhatsApp and Facebook
tips through social media platforms like SMS, WhatsApp and Facebook
The Government came out with another set of draft rules, including for liquidation of insolvent
corporate persons, under the Insolvency and Bankruptcy Code.
corporate persons, under the Insolvency and Bankruptcy Code.
ICICI Bank has successfully executed transactions in international trade finance and remittances
using blockchain technology in partnership with Emirates NBD.
using blockchain technology in partnership with Emirates NBD.
Bank of Maharashtra (BoM) has renewed its corporate agency tie-up with United India Insurance
Company (UIIC). Customers can buy the entire gamut of UIIC products at any of the 1,896 branches
of the bank across the country.
Company (UIIC). Customers can buy the entire gamut of UIIC products at any of the 1,896 branches
of the bank across the country.
Foreign lender Standard Chartered Bank announced a tie-up with Uber under which its credit
cardholders, across six countries, will get a cash-back of up to 25 per cent for hailing cabs from the
app.
cardholders, across six countries, will get a cash-back of up to 25 per cent for hailing cabs from the
app.
Securities and Exchange Board of India, SEBI has banned 21 entities in a case related totax
evasion and illegal gains through misuse of stock exchange mechanism. Sebi in an interim order
dated June 1 had barred Dhyana Finstock and 75 other entities, including the above 21, from the
market for using the securities system to artificially bump up volume and price of the scrip to
provide illegitimate gains to preferential allottees.
evasion and illegal gains through misuse of stock exchange mechanism. Sebi in an interim order
dated June 1 had barred Dhyana Finstock and 75 other entities, including the above 21, from the
market for using the securities system to artificially bump up volume and price of the scrip to
provide illegitimate gains to preferential allottees.
According to a data released by the RBI shows that India’ banking system reported total deposits
of Rs100 lakh crore for the first time ever in September. Demand deposits crossing R10 lakh
crore and time deposits crossing the Rs 90 lakh crore mark, the month saw the highest-ever monthly
rise of Rs 5.32 lakh crore — more than the total deposits in the banking sector 20 years back.
of Rs100 lakh crore for the first time ever in September. Demand deposits crossing R10 lakh
crore and time deposits crossing the Rs 90 lakh crore mark, the month saw the highest-ever monthly
rise of Rs 5.32 lakh crore — more than the total deposits in the banking sector 20 years back.
The US Agency for International Development (USAID) announced the launch of a new initiative —
Catalyst: Inclusive Cashless Payment Partnership. The multi-stakeholder partnership is designed to
scale up digital payments systems in India which will act as a catalyst in the increase of cashless
payments in select locations.
Catalyst: Inclusive Cashless Payment Partnership. The multi-stakeholder partnership is designed to
scale up digital payments systems in India which will act as a catalyst in the increase of cashless
payments in select locations.
RBI has launched the survey to seek quantitative information on order books, inventories and
capacity utilisation of companies in the manufacturing sector, a key input for monetary policy
formulation.
capacity utilisation of companies in the manufacturing sector, a key input for monetary policy
formulation.
Insurance Regulator IRDAI has imposed a penalty of Rs 6 lakh on Shriram Life Insurance for
“casual” approach towards certain norms, among other violations.
“casual” approach towards certain norms, among other violations.
Andhra Pradesh government signed an agreement with the Monetary Authority of Singapore (MAS)
to promote innovation in financial services in their respective markets.
to promote innovation in financial services in their respective markets.
The Union Government has signed $650 million loan agreement with the World Bank for
construction of the Eastern Dedicated Freight Corridor (EDFC)-III project. EDFC is 1,840 km
long and extends from Ludhiana in Punjab to Kolkata in West Bengal as a series of projects with
three sections.
construction of the Eastern Dedicated Freight Corridor (EDFC)-III project. EDFC is 1,840 km
long and extends from Ludhiana in Punjab to Kolkata in West Bengal as a series of projects with
three sections.
The Finance Ministry announced the sixth tranche of sovereign gold bonds. Applications for the
bonds will be accepted from October 24 to November 2 and the bonds will be issued on November
17
bonds will be accepted from October 24 to November 2 and the bonds will be issued on November
17
Mortgage lender HDFC has raised Rs.500 crore through rupee-denominated bonds from overseas
investors. With reference to the earlier letter dated October 12, 2016, informing about the opening of
the fourth issue of rupee-denominated bonds to overseas investors, aggregating an amount up to
Rs.500 crore.
investors. With reference to the earlier letter dated October 12, 2016, informing about the opening of
the fourth issue of rupee-denominated bonds to overseas investors, aggregating an amount up to
Rs.500 crore.
Banks in India will either replace or ask users to change the security codes of as many as3.2 million
debit cards because several victims have reported unauthorised usage from locations in China.
debit cards because several victims have reported unauthorised usage from locations in China.
SBI has declared Silchar as its 5th zone in North East after Guwahati, Shillong, Dibrugarh and
Jorhat, which will cater to the banking needs of the people of Mizoram, Tripura and Manipur along
with the Barak Valley.
Jorhat, which will cater to the banking needs of the people of Mizoram, Tripura and Manipur along
with the Barak Valley.
World Bank president Jim Yong Kim announced USD 2 billion loans for Bangladesh to help
Bangladesh to fight climate change. The USD 2 billion for climate change is in addition to USD 1
billion pledged by world Bank to end childhood stunted growth.
Bangladesh to fight climate change. The USD 2 billion for climate change is in addition to USD 1
billion pledged by world Bank to end childhood stunted growth.
The RBI relaxed foreign investment norms in financial services firms, start-ups and in investments
by foreign regulated capital investors.Foreign Venture Capital Investors (FVCIs) can invest in Indian
start-ups without prior permission of the RBI.
by foreign regulated capital investors.Foreign Venture Capital Investors (FVCIs) can invest in Indian
start-ups without prior permission of the RBI.
The Reserve Bank of India has allowed banks to approve extension of external commercial
borrowings on their own provided the debt is unpaid and has not defaulted before.
borrowings on their own provided the debt is unpaid and has not defaulted before.
National Bank for Agriculture and Rural Development(NABARD) has sanctioned Rs 19,702 crore
loan to National Water Development Agency (NWDA) for 50 irrigation projects. The loan is
sanctioned under Long Term Irrigation Fund (LTIF), announced by Finance Minister ArunJaitley
during the Budget 2016-17.
loan to National Water Development Agency (NWDA) for 50 irrigation projects. The loan is
sanctioned under Long Term Irrigation Fund (LTIF), announced by Finance Minister ArunJaitley
during the Budget 2016-17.
About$2.5 billion were made to the three lenders as part of the first tranche of the repayment
schedule. The $13-billion sale of Essar Oil to Russia‘s Roseneft has helped lenders, including ICICI
Bank, Axis bank and StanChart, recover a combined $2.5 billion in part payment of their exposure to
the Essar Group.
schedule. The $13-billion sale of Essar Oil to Russia‘s Roseneft has helped lenders, including ICICI
Bank, Axis bank and StanChart, recover a combined $2.5 billion in part payment of their exposure to
the Essar Group.
BSE has introduced a paperless SIP(Systematic Investment Plan) facility for mutual fund (MF)
investors. It will extremely cut the registration time and also allow subscribers to transact through
different payment modes including net banking.
investors. It will extremely cut the registration time and also allow subscribers to transact through
different payment modes including net banking.
The Department of Industrial Policy & Promotion (DIPP) notified 100 per cent foreign direct
investment in ‘other financial services’ carried out by Non-Banking Finance companies(NBFCs)
to attract foreign capital into India
investment in ‘other financial services’ carried out by Non-Banking Finance companies(NBFCs)
to attract foreign capital into India
HDFC ERGO General Insurance Company has entered into a tie-up with Maruti Insurance Broking
Pvt Ltd (MIBL) to offer motor insurance to buyers of Maruti Suzuki cars.
Pvt Ltd (MIBL) to offer motor insurance to buyers of Maruti Suzuki cars.
State-run trading firm MMTC has tied up with seven banks, including ICICI and HDFC Bank, to sell
government minted ‘Indian Gold Coin’. The coins are currently available at all MMTC outlets across
India along with select branches of seven banks –Indian Overseas Bank, Vijaya Bank, Federal Bank,
Yes Bank, Andhra Bank, ICICI Bank and HDFC Bank.
government minted ‘Indian Gold Coin’. The coins are currently available at all MMTC outlets across
India along with select branches of seven banks –Indian Overseas Bank, Vijaya Bank, Federal Bank,
Yes Bank, Andhra Bank, ICICI Bank and HDFC Bank.
YES Bank has tied up with ToneTag, a Mobile payment solutions start-up to integrate and deploy sound based contactless payments on its mobile wallet YES Pay.
The British subsidiary of ICICI Bank, ICICI Bank UK Plc. announced the launch of online money
transfer services to facilitate transaction from any bank accounts in Sweden, Norway and
Denmark to any recipient account based in India. The service called ‘Money2India Europe’ verifies
the credentials of the customers over video call from Money2India Europe website.
transfer services to facilitate transaction from any bank accounts in Sweden, Norway and
Denmark to any recipient account based in India. The service called ‘Money2India Europe’ verifies
the credentials of the customers over video call from Money2India Europe website.
The Goods and Services Network (GSTN) signed a Memorandum of Understanding (MoU)
with Director General of Foreign Trade (DGFT) for sharing of foreign exchange realisation and
Import Export code data.
with Director General of Foreign Trade (DGFT) for sharing of foreign exchange realisation and
Import Export code data.
Reserve Bank of India (RBI) issued rules permitting these to raise External Commercial
Borrowings (ECBs) per start-up was capped at $3 million per financial year to support financing for
start-ups
Borrowings (ECBs) per start-up was capped at $3 million per financial year to support financing for
start-ups
India’s forex reserves rose by USD 1 billion to USD 367.14 billion. In the reporting week, Foreign
Currency Assets (FCAs), a major component of the overall reserves, increased by USD 1.015 billion
to USD 341.923 billion.
Currency Assets (FCAs), a major component of the overall reserves, increased by USD 1.015 billion
to USD 341.923 billion.
The State Bank of India announced a cut of 0.15% in its benchmark lending rate under a new system
of calculation, signalling a further implement in borrowing costs ahead of the busy season.
of calculation, signalling a further implement in borrowing costs ahead of the busy season.