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WEEKLY GENERAL KNOWLEDGE BANKING & FINANCE CAPSULE (9 th to 15 th December 2018) Banking News RBI Slaps Rs 1 crore Fine on Indian Bank. The Reserve Bank of India has imposed a fine of Rs 1 crore on Indian Bank for violating cybersecurity norms. The contravention is with regard to RBI's directions on Frauds - Classification and Reporting by Commercial Banks. This penalty has been imposed in exercise of powers vested in RBI under the provisions of the Banking Regulation Act, 1949 taking into account the failure of the bank to adhere to the aforesaid guidelines and directions issued by RBI. Reserve Bank of India Governor Shaktikant Das Established In - 1935 $ 60 mn Loan Agreement signed between India and ADB for Assam. Asian Development Bank (ADB) and India have signed $ 31 mn Loan Agreement for Assam to continue financing riverbank protection works, renovation of flood embankments, and community-based flood risk management activities in critically flood-prone areas along the Brahmaputra River in Assam. The Tranche 2 loan is part of the $120 million multitranche financing facility (MFF) for the Assam Integrated Flood and Riverbank Erosion Risk Management Investment Program approved by the ADB Board in October 2010. The program is aimed at increasing the reliability and effectiveness of flood and riverbank erosion risk management systems in flood-prone areas in Assam, strengthening communities disaster preparedness and developing institutional capacity and knowledge base on flood forecasting and erosion prediction. $ 31 mn Loan Agreement signed between India and ADB for Tamil Nadu. Asian Development Bank (ADB) and India have signed $ 31 mn Loan Agreement for Tamil Nadu to build-up the State Tourism Industry and boost visitor arrivals in Tamil Nadu. The signatories to the tranche 4 loan for Infrastructure Development Investment Program for Tourism (IDIPT) were Mr. Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, who signed for the Government of India, and Mr. Kenichi Yokoyama, Country Director for ADB in India, who signed for ADB. This will be achieved through developing and preserving sites of natural and cultural heritage, and building connectivity, capacity, and infrastructure around State tourist sites. Asian Development Bank President Takehiko Nakao Headquarters Manila, Philippines Established In - 1966 RBI grants 40 branch licenses to Bandhan Bank. Reserve Bank of India has allowed Bandhan Bank to open 40 more branches, after it put a restriction on the bank's branch opening spree three months back. Last month RBI has come down heavily on Bandhan Bank for its failure to bring down promoters' stake to 40% as per the licensing agreement, hence barred the bank from opening branches without prior approval and froze Ghosh's remuneration at the existing level. Till date Bandhan Bank has 943 branches. SBI plans to disburse agri loans digitally. The country's largest lender SBI is planning to run pilot projects to disburse agricultural loans digitally and expects to roll out the services soon. SBI have tied-up with some players for settlement of payments. Also many states also have the land records of the farmers, which will help in providing digital loans to farmers using technology. ICICI Bank may use maadhaar for KYC. To tackle the restrictions on use of Aadhaar following the Supreme Court decision, the bank is working with industry and the National Payments Corporation of India to see whether it is possible to use maadhaar by mapping the QR code. maadhaar is an app that allows an individual to carry Aadhaar details without carrying the card. It allows sharing India s Largest Online Test Series2
of information with third-party applications with the help of QR codes, barcodes or near field communication. While digital acquisition of new customers might have been hit with the Supreme Court order, digitisation of services for 40 million existing customers is going full steam. Bandhan bank top brass exits to start microfinance firm. Bandhan Bank s retail banking head Rahul Johri and MFI lending chief Prasanta Kumar Sahu along with Sumit Sharma, former HR head of Jana Small Finance Bank have left the bank recently to set up their own microfinance venture. The trio is seeking a non-bank finance licence from the RBI for their new initiative. The entity Vector Finance will begin operations from Odisha with a proposed paid-up capital of Rs 25 crore. The company plans to begin operations shortly through business correspondent partners before it gets a formal NBFC licence from the central bank. Financial Schemes & MoUs ITP renamed as Innovators Growth Platform by SEBI. In a major push to kickstart listing of startups in India in a big way, capital markets regulator SEBI has lined up a slew of relaxations for new-age ventures. The proposed changes include renaming the Institutional Trading Platform (ITP) that the regulator had created for such listings as Innovators Growth Platform (IGP). ITP companies are allowed to migrate to the main board only after three years of listing. Also, the ITP is part of the SME platform and not the main board. Securities and Exchange Board of India Chairman Ajay Tyagi Headquarters - Mumbai As per World Bank India retained Top Position In Remittances With USD 80 billion. According to the World Bank report, India will retain its position as the world s top recipient of remittances in 2018 with its diaspora sending a whopping USD 80 billion back home. The Bank estimates that officially-recorded remittances to developing countries will increase by 10.8% to reach USD 528 billion in 2018. India is followed by China (USD 67 billion), Mexico and the Philippines (USD 34 billion each) and Egypt (USD 26 billion), according to the global lender. In 2017, remittances constituted 2.7% of India s GDP. Centre s Contribution To NPS Hiked To 14% of Basic Salary. In a bid to make retirement income scheme more attractive for central government employees, the government has agreed to chip in a higher 14% of the basic salary of an individual as its contribution to the National Pension System (NPS). Currently, the minimum employee contribution in NPS is 10% of basic pay and an equal contribution is made by the government. National Pension System (NPS) is a government-sponsored pension scheme that was launched in January 2004 for government employees. However in 2009, it was opened to all sections. The move would benefit over 36 lakh central government employees. Agriculture Ministry launches Portal ENSURE. Union Minister of Agriculture and Farmers Welfare Radha Mohan Singh launched a portal 'ENSURE'- National Livestock Mission-EDEG developed by NABARD and operated under the Department of Animal Husbandry, Dairying & Fisheries. The NABARD has developed an online portal ENSURE (ensure.nabard.org) so that the information related to beneficiary and processing of the application can be made readily available. National Livestock Mission has been conceived by government for the sustainable development of the livestock sector. NABARD Chairman Harsh Kumar Bhanwala Established On 12 July 1982 Route Mobile Collaborates With Oracle Marketing Cloud. Route Mobile Limited (Route Mobile), a cloudcommunication platform service provider and a member of Oracle Partner Network (OPN) announced the collaboration with Oracle Marketing Cloud, part of Oracle Customer Experience (CX) Cloud Suite. It empowers organizations to take a smarter approach to customer experience management and business transformation initiatives. This collaboration between Route Mobile and Oracle Marketing Cloud enables companies to leverage Route Mobile's quality connections for mobile customer engagement over SMS. Government likely to meet FY19 digital payments target. Government likely to keep its bank recapitalisation target unchanged for the current financial year as lenders under RBI's prompt corrective action (PCA) framework will not maintain capital conservation buffers. The recent softening in bond yields and consequent reversal of mark-to-market (MTM) losses on bond portfolios, coupled with significant reduction in risk weighted assets by state-run lenders. Out of the 21 state-owned banks, 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders. ICICI Bank to hire forensic auditor to probe into NPA irregularities. India s Largest Online Test Series3
ICICI Bank to appoint a forensic auditor to probe allegations of irregularities in 31 loan accounts, flagged by a whistleblower, being investigated by a white-collar crime specialist law firm. The private bank has already approached firms including BDO India, FTI India and Grant Thornton (GT) for conducting forensic investigations into the allegations The appointment of the investigator comes after pressure from SEC (US Securities and Exchange Commission) on the bank. Sebi proposes relaxed norms for startup listing. The Securities and Exchange Board of India has proposed to tweak listing norms for startups,in an attempt to make it more attractive for companies in sectors like e- commerce,data analytics and bio-technology. The regulator has renamed the Institutional Trading Platform(ITP) as 'Innovators Growth Platform'(IGP), after it failed to gain interest since its introduction in 2015. Sebi has also proposed to reduce the minimum trading lot size to Rs 2 lakh from the existing Rs 10 lakh and also proposed lock-in of six months for all categories of pre-ipo public shareholders, unlike the current rule which exempts private equity funds from lock-in. The regulator proposed that IGP would be designated as a main board platform for start-ups with an option to trade under regular category after completion of one year of listing. Appointments and Resignations RBI Governor Urjit Patel Resigns. A day before the results of polling in the five states, Reserve Bank of India governor Urjit Patel stepped down from his post. Patel, who cited personal reasons behind his decision, was in a conflict with the Union finance ministry over matters related to the monetary policy. Myntra's CEO Ananth Narayanan Resigns. Flipkart-owned Myntra's CEO Ananth Narayanan has resigned from his role with his position set to be abolished. Flipkart's Amar Nagaram has been given the responsibility to head Myntra. Key Myntra leaders such as Chief Revenue Officer Mithun Sundar and human resources head Manpreet Ratia have also resigned. Atul Sahai Appointed CMD Of New India Assurance. Atul Sahai has been appointed as the Chairman and Managing Director (CMD) of the country s largest general insurance company New India Assurance. The post had been lying vacant since July 2018 after former chairman and managing director G Srinivasan retired. The appointments committee of the cabinet announced that Sahai who is the General Manager at Oriental Insurance will be appointed for a period of five years. RBI Appoints Shaktikanta Das As New Governor. The government has appointed Shaktikanta Das as the new RBI governor, a day after Urjit Patel resigned as RBI Governor. He is the 25th Governor of the Reserve Bank of India. A former economic affairs secretary from 2015 to 2017, Das worked closely with the central bank. He is currently a member of the Finance Commission of India, and the government s representative at the Group of 20 summits. CAG Rajiv Mehrishi Appointed Vice-Chair of UN Panel of Auditors. CAG has announced that Comptroller and Auditor General Rajiv Mehrishi has become the Vice-Chair of the UN Panel of Auditors. The United Nations Panel of Auditors consists of External Auditors of the United Nations and its agencies. Currently, the panel is chaired by the Comptroller and Auditor General of the UK, Sir Amyas Morse. The panel also elected the Comptroller and Auditor General of the UK as Chair of the Panel for another term (2019). Yes Bank Names Brahm Dutt As Interim Chairman. Yes Bank Ltd has named one of its independent directors Brahm Dutt as the bank s part-time non-executive India s Largest Online Test Series4
independent chairman after former Finance Secretary Ashok Chawla resigned from the position. Brahm Dutt is a former bureaucrat and is one of the oldest members of Yes Bank s board. Yes Bank CEO Rana Kapoor India s Largest Online Test Series5