Banking Awareness February To July Set-4 2018 | Free PDF Download – IBPS/SBI PO Clerk/RBI Grade B/JAIIB/CAIIB

Table of Contents

3rd bi-monthly RBI Monetary Policy

• Decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.5 per cent
• Consequently, the reverse repo rate under the LAF stands adjusted to 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent.
• Dr. Chetan Ghate, Dr. Pami Dua, Dr. Michael Debabrata Patra, Dr. Viral V. Acharya and Dr. Urjit R. Patel voted in favour of the decision; Dr. Ravindra H. Dholakia voted against the decision.

MoU between Indian Army and HDFC Bank

03 Apr 2018 The first MoU between HDFC Bank and the Indian Army was signed in 2011 and was renewed on 13 Mar 2015.
• the Army personnel will get free personal accident death cover and free permanent disability cover of Rs 30 lakhs, free educational cover of upto Rs 1 Lakh per year for four years for education of dependent child in case of accidental death of defence personnel and 100% processing fees waived for Car Loans and Personal Loans.

MoU between Indian Army and Axis Bank

13 Apr 2018 The first MoU between Axis Bank and the Indian Army was signed in 2011 and was renewed on 24 Mar 2015. Under the current MoU, apart from other benefits, the Army personnel will get free personal accident death cover and free permanent total disability cover of Rs 30 lakh and free educational cover of up to Rs 2 Lakh for children between the age of 12 and 20 years.

MoU between Indian Army and SBI

12 July 2018 The first MoU between SBI and the Indian Army was signed in 2011 and was renewed on 23 Feb 2015 free personal accident death cover free permanent total disability cover

Payments banks

Airtel Payments Bank Ltd – 1st India Post Payments Bank Ltd – 2nd Paytm Payments Bank Ltd – 3rd Fino Payments Bank Ltd – 4th Fino – B-Pay app

Aditya Birla Idea Payments Bank – 5th

• Commenced operations as a payments bank with effect from 22 February, 2018
• The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India
• Aditya Birla Idea Payments Bank Ltd is a joint venture between
• Aditya Birla Nuvo Ltd (51 per cent stake) and
• Ideal Cellular (49 per cent stake)

Jio Payments Bank begins operations – 6th

Reliance Industries and SBI entered into a 70:30 joint venture to form the Jio Payments Bank Vivek Bhandari – Chairman of Jio Payments Bank Limited H Srikrishnan – MD/CEO Reliance Jio will integrate SBI YONO platform onto its MyJio mobile application. SBI YONO is an omni-channel platform which offers digital banking, commerce and financial services at one place.

Payments banks – 11 permitted in 2015 by RBI – in principle approval

6 opened 3 Withdrew – Sun Pharma, Cholamandalam, Tech Mahindra 2 more to open 2 more – Vodafone m-pesa , National Securities Depository Ltd

Payments banks

Restricted deposit – Currently limited to ₹1 lakh per customer These banks cannot issue loans and credit cards Both current account and savings accounts can be operated The minimum capital requirement is ₹100 crore For the first five years, the stake of the promoter should remain at least 40% Payments banks The voting rights will be regulated by the Banking Regulation Act, 1949. The voting right of any shareholder is capped at 10%, which can be raised to 26% by Reserve Bank of India. Any acquisition of more than 5% will require approval of the RBI. 25% of its branches must be in the unbanked rural area. The banks will be licensed as payments banks under Section 23 of the Banking Regulation Act, 1949

India Post Payments Bank (IPPB)

MD and CEO Suresh Sethi They will open 650 branches in India The payments bank will gradually link all 1.55 lakh post offices in the country to offer the service.

IndusInd Bank gets RBI permission to acquire IL&FS arm

IndusInd Bank has received Reserve Bank of India’s (RBI’s) approval to buy IL&FS Securities Services Ltd. (ISSL), the securities services arm of IL&FS In March 2017, IndusInd bank entered into an agreement with Infrastructure Leasing and Financial Services (IL&FS) to acquire 100 per cent stake in ISSL. IndusInd Bank: Founded in – 1994 HQ – Mumbai, Maharashtra Current CEO – Romesh Sobti

Vodafone India and Idea Merger

Leadership team 1. Aditya Birla Group’s chairman Kumar Mangalam Birla was named non-executive chairman of Vodafone Idea Ltd 2. Balesh Sharma, currently the chief operating officer of Vodafone India, was named chief executive officer. India’s largest telecom company with a market share of around 35 per cent new name ‘Vodafone Idea Limited’ Vodafone is expected to own 45.1 per cent

26 per cent by Aditya Birla Group

Idea shareholders will own 28.9 in the combined entity. The new entity will have around 430 million mobile subscribers from Day
1. In 2015, Vodafone had merged its four subsidiaries Vodafone East, Vodafone South, Vodafone Cellular and Vodafone Digilink with Vodafone Mobile Services, which is now called Vodafone India Plan to sell government’s stake in hydro-power producer NHPC Ltd. to its state-run peer NTPC Ltd., the nation’s biggest electricity generator by capacity The government’s 73.67 per cent stake in NHPC is worth about Rs 182 billion ($2.6 billion) ONGC completes Rs 36,915 crore HPCL acquisition, becomes first integrated oil major 51.11% The combined market value of ONGC and HPCL is estimated to be around Rs 3,11,925 crore, or $49 billion, comparable with Russian energy giant Rosneft’s $61 billion. HPCL – Mukesh Kumar Surana ONGC – Shashi Shankar NTPC – Gurdeep Singh

ONGC

has entered into an agreement with Punjab National Bank for unsecured short term loan agreement for Rs 10,600 crore towards foreign currency loan for a period of one year. The company has also entered into an agreement with State Bank of India, HDFC Bank, Export-Import Bank of India, ICICI Bank, Bank of India (BOI) and Axis Bank for securing loans worth Rs 7,340 crore, Rs 4,000 crore, Rs 1,600 crore, Rs 4,000 crore, Rs 4,460 crore and Rs 3,000 crore respectively,
the company said. While ONGC has secured loans for Rs 35,000 crore through banks, it is unclear how the government-owned oil and gas explorer plans to fund the rest of the acquisition amount of Rs 1,915 crore. ONGC holds 13.77 per cent stake in nation’s biggest refiner Indian Oil Corp (IOC), which is worth around Rs 26,200 crore.
It also holds 4.86 per cent stake in gas utility GAIL India Ltd, which is worth around Rs 3,847 crore. The board of Life Insurance Corporation of India approved the acquisition of up to 51 per cent stake in debt-ridden IDBI Bank. At present, the government holds 85.96 per cent equity in IDBI Bank and LIC has 10.82 per cent stake. Now, the government wants to bring its stake down to under 50 per cent. LIC has already got regulatory clearance to raise its stake. With the deal, LIC stake will increase to 51 per cent.

Hindustan Petroleum Corp. Ltd and Mangalore Refinery and Petrochemicals (MRPL)

, the two firms controlled by Oil and Natural Gas Corp will merge MRPL operates a 15 million tonne refinery while HPCL controls 27 million tonnes of capacity Capital First is being acquired by IDFC Bank for around $1.5 billion. Capital First Home Finance and Capital First Securities will also merge with the IDFC Bank V. Vaidyanathan – Capital First Executive Chairman Ms. Veena Mankar – INDEPENDENT NON-EXECUTIVE CHAIRPERSON of IDFC Dr. Rajiv Lall FOUNDER MD & CEO, IDFC IndusInd Bank is set to acquire the country’s leading micro-finance player Bharat Financial Inclusion Ltd (BFIL) IndusInd Bank – CEO Romesh Sobti Bharat Financial Inclusion Ltd (BFIL) MD/CEO – M R RAO In May, Walmart Inc based in the United States agreed to acquire a 77 percent stake in Flipkart Group, a provider of online ecommerce retail services, from Softbank Vision Fund LP, a unit of SoftBank Group Corp, and Naspers Ltd, for an estimated USD 16.0 billion The government will acquire the stake of Reserve Bank of India in housing finance regulator National Housing Bank (NHB).
RBI holds 100 per cent stake in the NHB at present. ii. The Finance Bill 2018 has amended to the National Housing Bank Act, 1987, for transfer of RBI’s stake in the NHB to the government. Tata Steel buys Bhushan Steel, to settle dues of Rs35,200 crore Bamnipal Steel, a unit of Tata Steel Ltd, completed the acquisition of 72.65% in Bhushan Steel according to the debt resolution plan Completed the resolution of the first case under the Insolvency and Bankruptcy Code (IBC), 2016. ReNew Power, bought the New Delhibased Ostro Energy for $1.5bn.

ICICI Bank 1st to get Swift’s new cross-border payment service

On April 6, 2018, global financial messaging cooperative, SWIFT (Society for World Interbank Financial Telecommunication System platform) announced that ICICI Bank has become its first Indian client to go live with an improved cross-border payments service.

ICICI Bank goes live with SWIFT’s gpi Tracker:

The improved crossborder payments service which is being referred to is the gpi (Global Payment Innovation) Tracker has been extended to cover all payment instructions sent across the SWIFT network. The Reserve Bank of India (RBI) has decided to use Gross Domestic Product (GDP) instead of Gross Value Added (GVA) to measure economic activity in India. It has been done to confirm with international practice and for ease of comparison. Worldwide, the performance of economies is measured in terms of GDP. Multilateral institutions, international analysts and investors also follow this approach. GVA gives the picture of the state of economic activity from the producers’ side or the supply side. GDP provides the picture from the consumers’ side or the demand side. SBI to invest Rs 8000 Crore in hydropower project of Nepal 900 megawatt (MW) Arun III hydropower project of Nepal The contract for constructing this project has been awarded to Sutlej Jal Vikas Nigam (SJVN) and SJVN has made an agreement with the SBI to acquire the investment as a loan. This project is targeted to be completed by September 2022.

2018 Index of Economic Freedom

India leapfrogs 13 places to 130/180 India was 143 in 2017 published by the Heritage Foundation, an American thinktank 1st – Hong Kong 2nd – Singapore

Small Industries Development Bank of India (SIDBI)

has tied up with Common Service Centre (CSC) to run micro enterprises promotion programme (MEPP) in 115 aspirational districts across India. MEPP is geared towards promoting potential rural entrepreneurs by hand-holding them and also facilitating access to finance for such enterprises from formal banking sector. The RBI has tightened norms for Liberalised Remittance Scheme (LRS) by making quoting of permanent account number (PAN) mandatory even for transactions below $25,000. Under the LRS, all resident individuals, including minors, are allowed to freely remit up to $2,50,000 per financial year for any permissible current or capital account transaction or a combination of both. LRS scheme was introduced on February 4, 2004. At that time the limit was just USD 25000. However it was revised in a phased manner in line with prevailing macro and micro economic conditions and now stands at USD 250000 per financial year. Individuals can avail foreign exchange for this purposes within the limit of USD 250000 only, from Authorised Dealers/Banks. On 13th April 2018, Punjab National Bank (PNB) – 124th foundation day The government has raised the authorised capital of NABARD (National Bank for Agriculture and Rural Development) by 6 times to Rs 300 billion, aimed to increase its lending to the rural economy, as a part of the initiative to double farmers’ income by 2022. A notification regarding this was released by the Finance Ministry on 10th April 2018. On April 17, 2018, Minister of State (Independent Charge) for Communications, Manoj Sinha launched DARPAN-PLI App, which will help in collection of premium for Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) policies at Branch Post Offices anywhere in India. DARPAN refers to DIGITAL ADVANCEMENT OF RURAL POST OFFICE FOR A NEW INDIA (DARPAN) Project

TRA Brand Trust Report 2018

SBI India’s most trusted bank, ICICI tops in private sector SBI Overall rank – 21 ICICI rank – 38 TRA Brand Trust Report 2018 SBI India’s most trusted bank, ICICI tops in private sector SBI Overall rank – 21 ICICI rank – 38 out of the 1000 most trusted brands of India that have featured in Brand Trust Report 2018, 51 brands are from the BFSI

Kamao App

If an employee, customer or non-customer give leads (prospective customer’s name, contact details, and banking requirements) they will be rewarded. About AU Small Finance Bank: Headquarters – Jaipur, Rajasthan MD & CEO – Sanjay Agarwal

Bhuj Mercantile Cooperative Bank – Banco Award for best performing cooperative bank:

Chairman – Nilaben Choksi Established – 1994 Banco Award is presented every year to the top performing cooperative banks to recognise and encourage best practices in the cooperative banking sector. Bhuj Mercantile Cooperative Bank was selected as the best performing cooperative bank from 1500 cooperative banks in India. The first meeting of the BRICS Finance Ministers and Central Bank Governors On 19th April 2018

ICICI Bank launches digital form for opening current accounts

ICICI Bank introduces ‘digital form’: Through ‘digital form’, ICICI Bank officials would be able to capture information about the customer and the business digitally and verify KYC documents in real-time, at the premise of the customer This is a first of its kind service by any bank in India YES Bank has got approval from the Reserve Bank of India to open two international representative offices – in London and Singapore Federal Bank gets RBI nod to enter Bahrain, Kuwait, Singapore
Prime Minister Narendra Modi honoured officials for making Manipur’s Karang the first cashless island of the country,
Banka district administration in Bihar – for reinventing education using technology Assam’s Dhemaji and Telangana’s Karimnagar – best implementation of ‘Deen Dayal Upadhyaya Grameen Kaushal Yojana’. I Himachal Pradesh’s Kangra and Madhya Pradesh’s Neemuch – implementation of the Pradhan Mantri Awas Yojana (Gramin) aimed at providing pucca houses with basic amenities to all homeless people. ICICI Bank has introduced ‘Social Pay’, a cross-border remittance facility that can be utilised by NRIs to send money to people in India through social media like WhatsApp and e-mail. HSBC to use robots to identify money laundering HSBC will integrate the AI system Quantexa CCEA has given its approval for the Umbrella Scheme, “Green Revolution – Krishonnati Yojana” in agriculture sector beyond 12th Five Year Plan for the period from 2017-18 to 2019-20. Umbrella scheme is made of 11 schemes
CCEA has approved the proposal for renaming and restructuring of Multi-sectoral Development Programme (MsDP) as Pradhan Mantri Jan Vikas Karyakram (PMJVK).
FDI Confidence Index 2018: India ranks 11th India has ranked 11th on the Foreign Direct Investment (FDI) Confidence Index 2018 released by global consultancy firm A T Kearney. USA – 1st

HARVARD STUDY

Top Fastest Growing Countries FOR NEXT 10 YEARS India(1st Place) Uganda(2nd Place) YES Bank is to launch a capacity building project with farmers in Haryana and Rajasthan under its ‘Livelihood and Water Security’ CSR (Corporate social responsibility) initiative. On 10th May 2018, a parliamentary panel of 30 members has been constituted by the speaker of parliament . Mr. Murali Manohar Joshi has been appointed as the chairman of this committee. This committee will focus on the black money and the unaccounted money ,performance of public sector bank, import of uranium ,preparedness of Indian armed forces, environment and mining activities
YES Bank launches Agenda 25×25 for budding women entrepreneurs in India to ensure that by 2025, at least 25% entrepreneurs in India are women
BSE becomes first Indian stock exchange to get US SEC’s DOSM recognition -designated offshore securities market (DOSM) The DOSM status eases the trades by U.S. investors in India as it allows sale of securities to U.S. investors through BSE without registration of such securities with the U.S. SEC.
According to the Customs Brokers Licensing Regulations, 2018, notified by the Central Board of Excise and Customs (CBEC), unique identity number Aadhaar and PAN is mandatory for persons seeking a customs broker licence.
SIDBI to extend direct funding facility to village level entrepreneurs in CSCs They will provide finance to a VLE who is in 25 kms distance of SIDBI Branch offices On June 1,2018, the Income Tax Department issued revised Income Tax Informants Reward Scheme 2018. Under this scheme a person upon giving specific information about tax evasion to the Investigation Directorate of the IT department can be rewarded upto Rs. 50 lakhs A reward of upto Rs. 5 crore would be given to people who would provide precise information about the black money tugged away in the foreign countries by individuals that come under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
M-app Cube Wealth launched to transfer money from bank a/cs to Mutual Funds
On June 1, 2018, launched by co-founder of Citrus Mr. Satyen Kothari Citrus was acquired by Pay – U Mobile banking rank by SBI’s Annual Report Paytm tops by Volume and Axis Bank tops by value On June 12, 2018, According to SBI’s annual report for 2017- 18, Axis bank has the highest value share of mobile banking transactions by 17.2%. i. Paytm tops the chart by volumes with 22% and by value it is 0.25%.
Mobile banking rank by SBI’s Annual Report
Paytm tops by Volume and Axis Bank tops by value On June 12, 2018, According to SBI’s annual report for 2017- 18, Axis bank has the highest value share of mobile banking transactions by 17.2%. i. Paytm tops the chart by volumes with 22% and by value it is 0.25%.