1 | Page · • Kotak Mahindra Bank (Kotak) stated that it will charge customers for UPI transactions starting 1st of May 2019. • For each Kotak Bank account, the first 30 UPI fund

MONTHLY GK Banking Capsule MAY 2019

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MONTHLY GENERAL KNOWLEDGE BANKING & FINANCE CAPSULE

(April 01 to April 30)

Banking News Cyber Defence Insurance launched by SBI General Insurance for Businesses • SBI General Insurance has launched a product - cyber

defence insurance to protect businesses from financial and reputational losses due to cyber attacks.

• In the initial phase, the focus will be on SMEs and mid-market businesses, but later the product can cater to larger business conglomerates

• It is designed to protect against major insurable cyber exposures like hacking attacks, identity theft, disclosure of sensitive information and business interruption.

SBI General Insurance.

• CEO: Pushan Mahapatra.

Authorised Capital of Allahabad Bank raised by Government to Rs 8,000 Crore. . • State-owned Allahabad Bank stated that the government

has increased its authorised capital by Rs 5,000 crore to Rs 8,000 crore.

• The central government after consultation with the Reserve Bank of India increased the authorised capital of the bank.

• The increase in authorised capital will help enable the bank to raise further fund up to a maximum ceiling of Rs 8,000 crore.

Allahabad Bank.

• CEO: S. S. Mallikarjuna Rao, Headquarters: Kolkata.

• Founded in: 24 April 1865. RBI becomes the First APAC Central Bank to begin Interest Rate Easing Cycle. • The Reserve Bank of India has become the first central

bank in the Asia-Pacific (APAC) region to begin an explicit interest rate easing cycle.

• The Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, cut rates in February and April.

• In the four months of 2019, the RBI has cut policy interest rates twice by 0.25% each to a one-year low of 6%.

• This is the first back-to-back rate cut since the MPC was formed in late 2016.

Kotak Bank launches Debit Card-Based e-mandate on NPCI’s API Platform.

• Kotak Mahindra Bank (Kotak) has launched the first debit card-based authentication solution on NPCI’s (National Payments Corporation of India) e-Mandate (electronic mandate) API (Application Program Interface) platform.

• With this, it has become the first ever Destination Bank to go live with both Net Banking and Debit Card-based e-mandate authentication.

• This allows Kotak to go live as a sponsor or acquirer bank for corporates and merchants seeking recurring payments.

Kotak Bank.

• CEO: Uday Kotak. • Headquarters: Mumbai.

IndusInd Bank Receives NCLT approval for merger with Bharat Financial Inclusion. • National Company Law Tribunal (NCLT) approved the

merger of private sector lender IndusInd Bank with Bharat Financial Inclusion (BFIL), a microfinance company

• Earlier, IndusInd Bank had received ‘No Objection’ from Reserve Bank of India, National Stock Exchange and Bombay Stock Exchange.

• Bharat Financial will become a subsidiary of the private lender.

Insuslnd Bank.

• MD and CEO: Romesh Sobti. • Headquarter: New Delhi

India’s First ‘Green Car Loan’ launched by SBI. • State Bank of India (SBI) has launched India’s first ‘Green

Car Loan’ (Electric Vehicle) to encourage customers to buy electric vehicles.


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• The new scheme ‘Green Car Loan’ will offer the loan at 20 basis points lower than the interest rate on the existing car loan schemes.

• SBI has already notified 100% migration to EVs (Electric Vehicles) by 2030 in order to decrease carbon footprints, thus being in line with the government’s pledge of ensuring 30% EVs on road by 2030.

State Bank of India.

• CEO: Rajnish Kumar. • Headquarter: Mumbai.

Canara Bank, Canara HSBC OBC Life launch ‘Webassurance’. • Canara Bank and its life insurance partner Canara HSBC

Oriental Bank of Commerce Life Insurance launched ’Webassurance’ to enable its customers to purchase life insurance in a convenient and hassle-free way.

• This Life Insurance is jointly owned by Canara Bank (51%) and Oriental Bank of Commerce (23%) and HSBC Insurance Holdings (26%), the Asian insurance arm of HSBC.

Canara Bank • MD & CEO: R A Sankara Narayanan. • Headquarter: Banglore.

BOB Becomes 3rd Largest Bank As Dena, Vijaya Merger Take Effect.

• The amalgamation of Vijaya Bank and Dena Bank into the Bank of Baroda (BoB) has come into effect and all branches of the former two will function as branches of BoB.

• Post the merger, Bank of Baroda has become the third largest bank in the country. The merged entity would also receive Rs 5,042 crore fund infusion from the government.

Bank of Baroda. • MD & CEO: P. S. Jayakumar. • Headquarters: Vadodara, Gujarat. • Founded in: 1908.

RBI Sets NBFC-MFIs' Average Base Rate at 9.21% For April-June.

• The Reserve Bank set the average base rate to be charged from borrowers by non-banking financial companies (NBFCs) and micro-finance institutions (MFIs) at 9.21% for the first quarter of the next fiscal (April-June).

• RBI, on the last working day of every quarter, comes out with the average of the base rates of the five largest commercial banks for the purpose of arriving at the interest rates to be charged by NBFC-MFIs to its borrowers in the ensuing quarter.

RBI • 25th Governor: Shaktikant Das, • Headquarters: Mumbai, Founded: 1 April 1935,

Kolkata. Kotak Mahindra Bank Becomes First Lender To Charge For UPI Use.

• Kotak Mahindra Bank (Kotak) stated that it will charge customers for UPI transactions starting 1st of May 2019.

• For each Kotak Bank account, the first 30 UPI fund transfers will be free, after which a charge will be levied on all fund transfers from the bank account.

• This will be applicable across all platforms, including Paytm, PhonePe, Google Pay or Truecaller Pay among others.

• The bank will charge Rs 2.50 per transaction for an amount value below or equal to Rs 1,000, and Rs 5 per transaction will be levied for a payment value above Rs 1,000.

ADB Cuts India's Growth Rate To 7.2%.

• The Asian Development Bank downgraded economic growth forecasts for India and Southeast Asia for 2019 as global risks from trade tensions to Brexit mount.

• According to the ADB’s latest Asian Development Outlook report, gross domestic product in India will probably increase by 7.2 % in 2019, down from a December forecast of 7.6%.

• Southeast Asia’s growth estimate was lowered by 0.2 percentage point to 4.9%.

Asian Development Bank

• Headquarters: Manila, Philippines, • President: Takehiko Nakao.

Karnataka Bank Signs Pact With Bharti AXA For Insurance Products.

• Karnataka Bank has entered into an MoU with Bharti AXA Life Insurance Company to distribute the latter’s life insurance products.

• The bank will be able to provide a wide choice of life insurance products to its customers across 836 branches, supported by the products of Bharti AXA Life Insurance Company.

• This is the third such tie-up by the bank after PNB MetLife Life Insurance Company and LIC of India.

RBI Sets Limits For Ways and Means Advances.

• The Reserve Bank of India (RBI) in consultation with the government of India has set the limits for Ways and Means


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Advances (WMA) for the first half of the financial year 2019-20 (April 2019 to September 2019) at Rs 75000 crore.

• The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilizes 75% of the WMA limit.

• WMA is the temporary loan facility provided by the RBI to the center and state governments.

RBI Tweaks LCR Norms To Boost Liquidity.

• In a bid to further improve the cash position of banks, RBI has tweaked Liquidity Coverage Ratio (LCR) norms to provide an additional 2% window to lenders.

• As per RBI Governor Shaktikanta Das, this move will harmonise the liquidity requirements of banks and release additional money for lending.

• LCR indicates the proportion of highly liquid assets held by banks to ensure their ability to meet short-term obligations.

Lakshmi Vilas Bank To Merge With Indiabulls Housing Finance.

• The board of Lakshmi Vilas Bank (LVB) approved the merger of the private sector lender with Indiabulls Housing Finance (IBH) through a share swap deal.

• The merger will also enable Tamil Nadu-based LVB to obtain a larger geographical presence.

• The merged entity will have a net worth Rs19,472 crore and a loan book Rs1,23,393 crore for the nine months of FY19.

NTPC Signs Rs 2,000 crore Term Loan Pact With Canara Bank.

• State-run power giant National Thermal Power Corporation has inked a term-loan agreement with Canara Bank to raise Rs 2,000 crore, which would be used to part finance its capital expenditure.

• The loan has a door to door tenure of 15 years and will be utilised to part finance the capital expenditure of the NTPC.

India Highest Recipient of Remittances At $79 billion in 2018.

• As per the World Bank Report, India retained its position as the world's top recipient of remittances with its diaspora sending a whopping USD 79 billion back home in 2018. India was followed by China (USD 67 billion).

• The Report was titled as 'World Bank's Migration and Development Brief'. Over the last three years, India has registered a significant flow of remittances from USD 62.7 billion in 2016 to USD 65.3 billion 2017.

RBI Issues Norms For Banks To Set Up Currency Chests.

• The Reserve Bank of India came out with guidelines for banks to set up new currency chests, which include a minimum area of 1,500 square feet for strong room.

• The new chests should have a processing a capacity of 6.6 lakh pieces of banknotes per day.

• The currency chests should have CBL of Rs 1,000 crore, subject to ground realities and reasonable restrictions, at the discretion of the Reserve Bank.

Reserve Bank Of India.

• 25th Governor: Shaktikant Das, Headquarters: Mumbai.

• Founded: 1 April 1935, Kolkata. 1st of Its Kind, SBI and PAISALO Digital Limited Signed Agreement.

• PAISALO Digital Limited signed the first co-origination loan agreement with State Bank of India, the first agreement of its kind in the country that State Bank of India has signed.

• Introducing a platform for the last mile customer, the loan ticket is designed at Rs 10,000 to 2 lakh.

• PAISALO Digital Limited is a leading systemically important non-deposit taking NBFC registered with the Reserve Bank of India, in operations since 1992.

RBL Bank Partners With CreditVidya For Improving Customer Experience.

• RBL Bank has partnered with credit profiler CreditVidya to improve the lender's customer experience.

• Through this partnership, the private sector lender will be able to gain significant insights into its customer base.

• RBL/Ratnakar Bank Limited is a scheduled commercial bank, headquartered in Mumbai.

HDFC Bank Named India's No. 1 Bank: Forbes Magazine.

• HDFC Bank has been identified as number 1 bank by customers in India, as per Forbes World's Best Bank survey.

• In the first edition of this survey, Forbes partnered with market research firm Statista to measure the best banks in 23 countries.

• HDFC Bank emerged as India’s No 1 bank. ICICI Bank was at number 2 and SBI was surprisingly ranked 11th in the list.

HDFC

• MD nd CEO : Aditya Puri. • Headquarter : Mumbai.

Banks’ Credit Growth Up 13.24% in FY 2019.


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• The financial year 2019 has ended on a relatively robust note for banks. They clocked a 13.23% year-on-year credit growth against 9.85% in FY2018.

• Deposit growth, at 9.99% year-on-year in FY 2019, was also better than the 6.15% logged in FY2018, according to the Reserve Bank of India’s scheduled banks’ statement of position in India.

IMF & World Bank Launched 'Learning Coin' For In-House Purpose.

• The International Monetary Fund (IMF) and the World Bank have together launched a private blockchain with a pseudo-token.

• The new token, called “Learning Coin” and only accessible within the IMF and World Bank, has a purpose to teach relevant individuals within the organizations about blockchain.

• Though the coin has no real value – hence the description pseudo-token – staff members who pass educational milestones will receive the tokens which can then be redeemed for certain rewards.

World Bank. President: David Malpass, Headquarters in Washington DC, USA, Established in 1944.

IMF. MD - Christine Lagarde. Headquarters in- Washington DC, USA

Fincare Small Finance Bank Awarded the Celent Model Bank 2019 Award.

• Fincare Small Finance Bank (SFB) has been awarded the prestigious Celent Model Bank 2019 Award in the category of Financial Inclusion, for 'Redesigning Lending to Reach Small Businesses'.

• The award recognizes LAP (Loans Against Property) D.Lite, a tab-based solution designed and developed in-house by Fincare SFB for origination and instant underwriting of loans against property targeted at micro and small enterprises.

Fincare Small Finance Bank.

• MD & CEO : Mr. Rajeev Yadav. • Founded in : 2017.

Bandhan Bank Gets CCI Nod For Merger With Gruh Finance.

• Bandhan Bank has received approval from the Competition Commission of India (CCI) for the proposed scheme of amalgamation of Gruh Finance with the bank

• Bandhan Bank had, in January 2019, announced the merger of Gruh Finance with it.

• The move was taken to bring down promoter holding in the bank to 61% from 82.3%.

IDBI Bank Launches 'NRI-Insta-Online' Paperless Account Facility.

• IDBI Bank has launched 'NRI-Insta-Online' account opening process for NRIs residing in the Financial Action Task Force (FATF) member countries.

• The person will not be required to furnish physical documents as well as KYC proofs for opening an account with the bank.

ADB Committed Highest-ever $3 bn In Sovereign Loans To India In 2018.

• ADB committed to provide USD 3 billion in sovereign loans to India in 2018, the highest level of assistance since sovereign operations began in the country in 1986, stated the annual report of the multilateral lending agency

• In all, the Asian Development Bank (ADB), owned by 68 member countries, committed a total of USD 3.88 billion, including sovereign loans and co-financing during the year ended December 2018.

Canara Bank Becomes The First Public Sector Bank In India to Meet RBI’s EMV Mandate.

• ACI Worldwide, a global provider of real-time electronic payment and banking solutions, announced that Canara Bank has successfully rolled out major new functionality to support EMV card acquiring across its ATM network and Aadhaar Authentication, leveraging ACI’s UP Retail Payments solution to achieve market firsts.

• The bank has tapped into the extensive functionality of ACI’s UP Retail Payments solution for EMV shift.

Exim Bank Funds Projects Worth USD 267 mn In Rwanda.

• Exim Bank has provided soft loans of USD 266.60 million to Rwanda for various projects.

• The funding, done in three separate tranches to Rwanda, is to support agricultural projects, development of special economic zones (SEZs) and for financing a road project in the African nation.

Financial Schemes & MoUs


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Reliance Retail Became Inda’s first Retail Company to Cross Rs.1 Lakh Crore Annual Revenue.

• Reliance retail has become the first Indian retail company to clock more than Rs 1 lakh crore in annual revenues.

• The retail venture of Reliance Industries reported an income of Rs 1,30,556 crore for 2018-19, 89% more than the previous year’s Rs 69,198 crore.

Bajaj Allianz Launches Total Health Secure Goal Plan.

• Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance in collaboration launched their first product 'Total Health Secure Goal'.

• The new insurance product is a combination of two existing plans - Health Guard policy by Bajaj Allianz General Insurance, and iSecure from Bajaj Allianz Life Insurance.

Deposits In Jan Dhan Accounts are set to cross Rs 1 Lakh Crore mark.

• The scheme was launched on 28th August 2014 by the Modi-government with an aim to provide universal access to banking facilities to all households.

• On 3rd April, the total balance in the Jan Dhan accounts was at Rs 97,665.66 and the total number of Jan Dhan accounts crossed 35.39 crores.

• More than 27.89 crores account holders have been issued the Rupay debit cards.

• The government increased the accident insurance cover to Rs 2 lakh from Rs 1 lakh for new accounts opened after 28th August 2018 and the overdraft limit was also doubled to Rs 10,000.

SEBI Reduces Minimum Subscription Requirement for REITs, InvITs.

• Markets regulator SEBI (Securities and Exchange Board of India) has reduced the minimum subscription requirement as well as defined trading lots for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

• SEBI has also increased the leverage limit for InvITs from 49% to 70%.

• While making an initial public offer and follow-on offer, the minimum subscription shall not be less than Rs 1 lakh for InvITs and Rs 50,000 for REITs.

• Currently, in the case of a REIT issue, the minimum subscription from any investor in an initial offer and follow-on public offer is not less than Rs 2 lakh, while the same is Rs 10 lakh in case of InvIT.

BuyUcoin Introduces First Indian Platform for Wholesale Cryptocurrency Trading.

• BuyUcoin, second oldest Cryptocurrency Exchange in India, has introduced a new and unique platform for wholesale cryptocurrency trading.

• It is also known as OTC (Over-the-counter) Desk that allows users to trade on a large scale with low price fluctuations.

RBI Sells Entire Stake In NHB, Nabard to Government for INR 1,470 crore.

• The Reserve Bank of India (RBI) has divested its entire stake held in National Housing Bank (NHB), and National Bank for Agriculture and Rural Development (Nabard) to the government, which now holds 100% in these entities.

• The transactions were completed in February (Nabard) and March (NHB). RBI had 100% shareholding in NHB, which was divested for INR 1,450 crore.

• RBI had 72.5% stake in Nabard, out of which 71.5%, worth INR1,430 crore was divested in October 2010 and the residual shareholding was divested in February 2019 for INR 20 crore.

Microsoft Becomes World’s Third Company To Be Worth $1 Trillion.

• Microsoft has reached a valuation of one trillion dollars for the first time after posting an increase in profits.

• It makes the software giant only the third publicly-traded company in history to reach the threshold after Apple and Amazon passed it in 2018.

• Microsoft’s current valuation also means that it has again taken over Apple as the world’s most valuable company.

RBI Introduces ₹ 20 Banknote In Mahatma Gandhi (New) Series.

• The Reserve Bank of India will shortly issue ₹ 20 denomination banknotes in the Mahatma Gandhi (New) Series, bearing the signature of Shri Shaktikanta Das, Governor, Reserve Bank of India.

• The new denomination has the motif of Ellora Caves on the reverse, depicting the country's cultural heritage. The base colour of the note is Greenish Yellow. The dimension of the banknote will be 63 mm x 129 mm.

HCL Completes Acquisition Of Strong-Bridge Envision.


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• IT major HCL Technologies stated that its acquisition of US-based Strong-Bridge Envision has been completed.

• HCL had recently agreed to acquire the Seattle-based company to enhance its digital transformation consulting capabilities.

• According to reports, the deal was worth 45 million dollars. Strong-Bridge Envision is now part of its global digital and analytics business called HCL Mode 2 services.

Reliance Mutual Fund Launches Voice-Based Financial Transactions

• Reliance Nippon Life Asset Management (RNAM) has joined hands with Google to enable the customers of Reliance Mutual Fund to carry out voice-based financial transactions.

• With this, RNAM becomes the first company in India, to provide a conversational interface that would help customers regarding funds transactions.

BSE, India INX Become First Indian Exchanges To Sign MoU With Moscow Exchange.

• BSE (earlier known as Bombay Stock Exchange) and India International Exchange (India INX) have signed a memorandum of understanding with Moscow Exchange (MOEX) to connect investor community and companies in both countries besides allowing a capital formation platform.

• BSE and India INX are the first Indian exchanges to enter into the MoU with Moscow exchange.

• The exchange companies have agreed to the secondment of senior personnel to enhance understanding of activities in each other’s market.

Bombay Stock Exchange.

• MD & CEO: Ashishkumar Chauhan, • MOEX CEO: Alexander Afanasiev

BIS and IIT-Delhi Inks MoU On Standardisation and Conformity Assessment.

• The Bureau of Indian Standards (BIS) has inked an MoU with the Indian Institute of Technology, Delhi (IIT-D) to collaborate in the field of standardisation and conformity assessment.

• According to the MoU, IIT Delhi will provide infrastructure support for research and development projects of relevance to standardisation and BIS will provide financial support to IIT Delhi for projects.

• BIS is the National Standard Body of India established under the BIS Act 2016.

Paytm Money Receives SEBI Approval To Start Stock Broking Services.

• The Securities and Exchange Board of India (SEBI) has given approval to Paytm Money the investment and wealth management platform of the mobile payments company to start offering broking services.

• It had applied for the licence in October 2018. • Paytm Money has also received membership of NSE and

BSE.

RBI tweaks LCR Norms To Boost Liquidity.

• In a bid to further improve the cash position of banks, RBI has tweaked Liquidity Coverage Ratio (LCR) norms to provide an additional 2% window to lenders.

• As per RBI Governor Shaktikanta Das, this move will harmonise the liquidity requirements of banks and release additional money for lending.

• LCR indicates the proportion of highly liquid assets held by banks to ensure their ability to meet short-term obligations.

https://bit.ly/2nCdiUx


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Fitch keeps India's rating unchanged at BBB.

• Rating agency Fitch retained India's sovereign rating at 'BBB-', the lowest investment grade, with a stable outlook for the 13th straight year.

• Fitch expects growth of 6.8% in current fiscal 19-20 and 7.1% in the next fiscal 20-21.

Fitch.

• Headquarters- New York

• CEO- Paul Taylor.

• Founded-1914.

CCI Approves L&T's Proposal To Acquire Up to 66.15% Stake in Mindtree.

• The Competition Commission of India (CCI) approved engineering and construction major Larsen & Toubro’s (L&T’s) proposal to acquire up to 66.15% stake in Mindtree.

• With this nod, L&T has overcome the first major regulatory hurdle in its bid for ‘hostile’ takeover of the Bengaluru-headquartered IT services firm.

Government Retains Interest Rate For General Provident Fund at 8%.

• The government has retained the interest rate for General Provident Fund (GPF), Contributory Provident Fund and other related schemes at 8 per cent for the first quarter of the current financial year.

• The interest rate on these funds was at 8% in January-March quarter of 2018-19 and government kept it unchanged for April to June for 2019-20.

• The interest rate will be applicable on provident funds of central government employees, railways and defence forces.

TCS, Google Partner To Build Industry-Specific Cloud Solutions.

• Tata Consultancy Services partnered with Google Cloud to build industry-specific cloud solutions. TCS’ solutions on Google Cloud Platform (GCP) will help enterprises build secure, cloud-native analytics platforms.

• It will enable high levels of personalization, and are cost-effective, easy to maintain, and future ready.

• CEO of Google: Sundar Pichai • CEO of Tata sons: Natarajan Chandrasekaran.

PayU Acquires Wibmo For USD 70 mn.

• PayU, Digital payments security and payment facilitator has acquired Wibmo, a US-based financial technology firm for USD 70 million (about Rs 484 crore) to assist the company scale-up its business.

• Under the agreement, PayU and Wibmo businesses will continue to run separately.

• Wibmo will continue to operate and serve all of its clients as a wholly-owned subsidiary of PayU.

IDRBT Sets Up 5G Lab For Banking, Financial Sector.

• The Institute for Development and Research in Banking Technology (IDRBT), an arm of Reserve Bank of India, has launched a 5G Use Cases Lab for banking and financial sector.

• The 5G technology, along with blockchain, will be progressively adopted by banks.

• Department Of Telecommunications had already launched test beds for 5G use in the academia in Hyderabad, Chennai and Bangalore to develop 5G for Indian use.

India Becomes Net Steel Importer In 2018-19.

• India was a net importer of steel during the 2018-19 fiscal year, the first time in three years, as the country lost market share among its traditional steel buyers and imports jumped on demand for higher-quality steel domestically.

• The country's finished steel exports fell by 34% in the fiscal year that ended in March to 6.36 million tonnes, according to preliminary government data given to Reuters on Friday. During the same period, finished steel imports rose 4.7% to 7.84 million tonnes.

CRISIL Board Gives Nod For Transfer Of Ratings Business To New Subsidiary.

• CRISIL Ltd, a diversified global analytics company, will transfer its rating business to its proposed new wholly-owned subsidiary.

• The board of CRISIL gave the nod for the transfer, which is being done to comply with SEBI norms of 2018.


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• Earlier, SEBI had modified its regulations for credit rating agencies and mandated the segregation of rating and non-ratings businesses of credit-rating agencies.

• CRISIL was formerly known as Credit Rating Information Services of India Limited.

ETMONEY Becomes India’s First Comprehensive Financial Services App To Integrate With UPI.

• ETMONEY India’s largest app for financial services has integrated with Unified Payment Interface (UPI) as a payment method.

• The reason for this is to double its monthly user base by the end of 2019

• This integration will simplify the mutual fund payment for millions of ETMONEY users.

• ETMONEY is owned by Times Internet which is a part of the Times Group.

• UPI is an instant real-time payment system developed by National Payments Corporation of India (NPCI) which facilitates inter-bank transactions.

Appointments and Resignations MD Karnam Sekar Appointed As IOB's New MD & CEO.

• Former Dena Bank MD & CEO Karnam Sekar is set to take over as the new Managing Director and CEO of Indian Overseas Bank from July 1, 2019. He will take over from R Subramaniakumar.

• Earlier Sekar was the MD & CEO of Dena Bank till September 2018.

• He was also the Deputy Managing Director and Chief Credit Officer in State Bank of India heading its highest Credit Committee.

Vijay Chandok Appointed As MD And CEO Of ICICI Securities.

• Executive Director of ICICI Bank, Vijay Chandok has been appointed as MD and CEO of ICICI Securities, a subsidiary of ICICI bank.

• He will succeed Shilpa Naval Kumar. He joined the ICICI Group in 1993.

• ICICI Bank Tagline: Hum Hain Na!

Google India Head Rajan Anandan Resigned.

• Rajan Anandan, vice president for Google India and Southeast Asia, and essentially heading Google in India, is

leaving the company after an eight-year stint. Anandan had joined Google from Microsoft India in 2010.

• Vikas Agnihotri, who is currently serving as Google's country director for sales, will take on the interim responsibility until the company finds a new managing director.

Vipin Anand Takes Over As Managing Director of LIC.

• Vipin Anand has taken charge as Managing Director of Life Insurance Corporation of India. Prior to this, he was in charge of LIC’s Western Zone, headquartered at Mumbai.

• During his service of more than 35 years with the organisation, Anand has handled several assignments in various capacities and departments across different locations in India.

• MR Kumar is the present Chairman of Life Insurance Corporation (LIC).

CS Rajan Appointed MD of IL&FS.

• CS Rajan has been appointed Managing Director while Vineet Nayyar named as Executive Vice-Chairman of Infrastructure Leasing & Financial Services (IL&FS).

• Rest of the new board comprises of Bijay Kumar as the deputy managing director and GC Chaturvedi, Nand Kishore, Malini Shankar, and N Srinivasan as non-executive directors.

David Malpass Named World Bank President.

• David Malpass has been appointed as the President of the World Bank.

• He was US President Donald Trump's nominee and won unanimous approval from the institution's executive board.

• He has replaced Former World Bank President Jim Yong Kim who left in January 2019.

• Malpass was former Bear Stearns and Co chief economist who advised Trump's 2016 election campaign.

Deutsche Bank Appoints Kaushik Shaparia As CEO For India.

• Deutsche Bank appointed Kaushik Shaparia as the chief executive officer for India to succeed Ravneet Gill.

• Gill left the bank to head private lender YES Bank. Shaparia’s appointment will be effective from May 2019.

• Shaparia served as Asia Pacific Head of Corporate Banking Coverage within Institutional and Treasury Coverage, as


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well as Global Head of Subsidiary Coverage and has a 30-year experience at the bank.

Important Banking terms.

1. Repo Rate When RBI provides a loan to the bank for short-term between 1 to 90, RBI takes some interest from the bank which is termed as Repo Rate. 2. Reverse Repo Rate When bank deposit it's excess money in RBI then RBI provides some interest to that bank. This interest is known as Reverse Repo Rate. 3. SLR –(Statutory Liquidity Ratio) Every bank has to maintain a certain % of their total deposits in the form of (Gold + Cash + bonds + Securities) with themselves at the end of every business days. Current SLR is 20.75%. 4. Retail banking Retail banking is a type of banking in which direct dealing with retail customers is done. This type of banking is also popularly known as consumer banking or personal banking. It is the visible face of banking to the general public. 5. Bitcoin Bitcoin is a virtual currency/ cryptocurrency and a payment system. It can be defined as decentralized means of tracking and assigning wealth or economy, it is a software protocol. Bitcoin uses two cryptographic keys, one public (username) and one private (password) are generated. 1Bitcoin= 108 Satoshi. 6. Call money Call/Notice money is the money borrowed on demand for a very short period. When money is lent for a day it is known as Call Money. Read: Money Market Instruments 7. Notice money When the money is borrowed or lent for more than a day up to 14 days it is called Notice Money. 8. Difference between Capital market and Money market

A capital market is an organised market which provides long-term finance for business. Whereas Money market provides short-term finance for business 9. Scheduled bank Banks which are included in the 2nd Schedule of RBI Act 1934 are known as a scheduled commercial bank. These banks should fulfil two conditions: Paid up capital and collected funds should not be less than Rs.5 Lacs. Any activity of the Bank should not adversely affect the interests of the customers. 10. Non Performing Assets NPA is an asset of a bank which is not producing any income. Bank Usually classify as nonperforming assets any commercial loans which are more than 90 days overdue and any consumer loans which are more than 180 days overdue. 11. Money Inflation Money Inflation is a State in which the Value of Money is Falling and the Prices are rising, over a period of time. 12. Negative interest rate When there is less demand for loans the banks park their excess fund with the central bank by which they get interest. Negative interest rate policy (NIRP) means that central banks will deduct money from commercial banks for depositing their money with the central bank. Commercial banks, in turn, will do the same to common people. So the end effect is that people will have to pay money to banks to hold their cash. 13. Green Banking Green banking means promoting environmentally friendly practices and reducing your carbon footprints from your banking activities. Green banking aims at improving the operations and technology along with making the clients habits environment-friendly in the banking business. It is like normal banking along with the consideration for social as well as environmental factors for protecting the environment. 14. Blockchain system These days the transactions in the banking sector are becoming a very tedious task and so as to ensure that this tedious task to be removed, our banking sector is trying to emerge towards blockchain technology.


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To simplify the transactions without the help of any third party in a secure manner is really a great challenge, but to overcome this challenge an anonymous online ledger (collection of financial accounts) which uses the data structure to simplify it is called blockchain technology. 15. Balloon mortgage A mortgage is a transfer of a right to stable property for the security purpose of a loan amount. Balloon mortgages are just for short term and it has a fixed rate mortgage. In balloon mortgage, a monthly payment is lower because of large payment at the end of a term. A balloon payment is for honest and qualified borrowers who have a good credit history. 16. Retail credit operations Retail Credit Operations means the sequential process which involves screening, evaluation of risk(s), and ensuring that the bank lends to a creditworthy client from the asset products applications sourced. 17. Skimming Skimming is a method used by fraudsters to capture customer's personal or account information of credit card. Customer's card is swiped through the skimmer and the information contained in the magnetic strip on the card is then read into and stored on the skimmer or an attached computer. Skimming is a tactic used predominantly for credit-card fraud, but it is also a tactic that is gaining in popularity among identity thieves. 18. Money laundering Money laundering is a process of conversion of illegal money from various sources to appear to have originated from legitimated (Legal) source. The major sources of illegal money are tax evasion, bribe, Smuggling etc. 19. Cheque A cheque is an unconditional order addressed to a banker, signed by the person who has deposited money with a banker, requesting him to pay on demand a certain sum of money only to the order of the certain person or to the bearer of the instrument. 20. Direct Debit Direct Debit is a financial activity in which one person withdraws funds from another person's bank account. It is a facility in which the payee withdraws the amount from the payer's account, the payer has instructed the bank to

allow the payee directly withdraw the amount from the account. 21. Cash Credit Cash Credit is a proper limit sanctioned by the bank to the borrowing manufacturing/trading unit against the value of the raw materials, semi-finished goods and finished goods including stores. 22. Bill of Exchange A bill of exchange is a non- interest bearing written order which is used primarily in foreign trade which binds one party to pay a fixed amount of money to another party at a decided future date. A bill of exchange is signed by the creditor and accepted by a debtor. 23. Cash Reserves Ratio Every bank Maintain certain % of their total deposits with RBI in the form of Cash and Net demand & Time Liabilities. Current CRR is 4%. Every Bank has to pay the amount to RBI on every 15 Days. 24. Bank Rate Bank rate is also termed as “Discount Rate” The rate through which RBI charges certain % for providing money to other banks without any security for a Long period of time for 90 Days & Current Bank Rate is 6.75%. 25. Marginal standing facility MSF is the rate through which bank can borrow funds for Short time – Overnight basis. Current MSF is 6.75%. 26. Minimum Reserve system of RBI The current system of the Indian government to issue notes is “Minimum Reserve System”. Under this policy, the minimum reserves to be maintained in the form of gold and foreign exchange should consist of rupees 200 crores. Out this reserve, the value of gold to be maintained is rupees 115 crores. This system was introduced in 1956 replacing the proportional reserve system. 27. Clean note policy of RBI Lots of people in our country have a bad habit of writing something on the currency note, folding currency note, also somebody staple it which spoils the Note and reduces notes durability.


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So to avoid such occurrences RBI introduced the Clean Note Policy in 2001 in an order to increase the life of currency notes. The main objective of this Clean Note Policy is to provide good quality currency notes and coins to the citizens of our country. 28. CAMELS rating system CAMELS is a rating system developed in the US that is used by supervisory authorities to rate banks and other financial institutions. It applies to every bank in the U.S and is also used by various financial institutions outside the U.S. Each factor is assigned a weight as follows: Capital adequacy 20 % Asset quality 20% Management 25% Earnings 15% Liquidity 10% Sensitivity 10% 29. Masala Bonds The bonds listed on the London Stock Exchange (LSE) is termed as Masala Bonds. These bonds are offered and settled in US dollar to hike Indian Rupee in International market. These bonds help to raise Indian rupees from International investors for infrastructural development in India. International Financial Corporation (IFC) converts bond from dollars into rupees and uses the rupees to finance private sector investment in India. 30. Core Banking Solutions Core Banking Solution (CBS) is the networking of branches, which enables customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he maintains his account. The customer is no more the customer of a Branch. He becomes the Bank’s Customer. 31. Unified Payment Interface This interface will integrate the entire payment systems in India. It uses a single application programme interface with a series of Application Programme interface (API’S). The mobile devices are the primary object for all the payments. 32. Micro ATMs Micro ATMs are not any special type of ATMs It is the advanced version of Point of Sale (PoS) having an additional feature of Biometric scanning.

It is also known as a mini version of ATMs. These machines are connected with the GPRS (General Packet Radio Service) mobile internet and it uses the Core Banking Solution (CBS) platform to perform the different types of services. 33. Letter of Credit The letter of credit is one of the negotiable instrument. It is given by the bank, that guarantee’s buyer’s payment to the seller shall be received on time along with the proposed amount to be paid. In this instinct, if the buyer is unable to make the agreed payment to the seller, then the bank will cover the full or remaining amount of purchase. 34. Bancassurance Bancassurance is the concept of selling insurance products of insurance companies by banks. The bank acts as an agent and promotes Banca (bancassurance) products under section 6(1)(o) of the Banking Regulation Act, 1949. It was originated in Europe in the 1980s and was successful. The bancassurance business model is a globally accepted profitable business. 35. Banking Ombudsmen Banking Ombudsman is a senior official appointed by RBI. He handles and redresses customer complaints against deficiency in certain banking services. The Banking Ombudsman Scheme was introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995. 36. The Balance of Trade The difference between the country’s exports and the value of its imports are known as the Balance of Trade. It normally incorporates trade in services unless mentioned as the balance of merchandise trade. It includes earnings (interest, dividends, etc.) on financial assets. 37. A Balance of Payments A list that states a country’s transactions with other countries for a certain time period (generally 1 year). Payments into the country (receipts) are entered as positive numbers, called credits. Payments out of the country (payments) are entered as negative numbers called debts. A single number summarises the country’s international transactions: the balance of payments surplus. Difference between Balance of Trade and Balance of Payment 38. NOSTRO Account


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A NOSTRO account is one which is maintained by an Indian Bank in the foreign countries. 39. VOSTRO Account A VOSTRO account is one which is maintained in India by a foreign bank with their corresponding bank. Must read: Types of Foreign Currency Accounts 40. LIBOR The full form of LIBOR is the London Interbank Offered Rate. It is the interest rate at which funds are borrowed by banks in marketable size, from other banks in the London interbank market. 41. MIBOR The full form of MIBOR is Mumbai Interbank Offered Rate. It is the interest rate at which funds are borrowed by banks in marketable size, from other banks in the Mumbai interbank market. 42. CASA Account CASA stands for Current Account Savings Account. The CASA ratio displays the value of deposits maintained in a bank in the form of current and savings account deposits in the total deposit. A higher CASA ratio means the better operating efficiency of the bank. 43. RAFA Account RAFA stands for Recurring Deposit Account Fixed Deposit Account. The RAFA ratio shows how much deposit a bank has in the form of Recurring and fixed deposits. 44. DEMAT account The full form of Demat Account is Dematerialized account. This is a type of bank account for citizens in India so that they can trade in stocks or debentures which are listed in the stock market. Just as a savings account contains money saved, a demat account has stocks saved. 45. Legal Tender As per provisions of coinage Act 1996, bank notes, currency notes and coins (Re. 1 and above) are legal tender for the unlimited amount. The subsidiary coins (below Re. 1) are legal tenders for the sum not exceeding Re 1. Issue of 1, 2 and 3 paisa coins discontinued wef Sep 16, 1981.

46. Currency Chest Currency chests are operated by the Reserve Bank of India (RBI) so that they can provide good quality currency notes to the public. However, RBI has appointed commercial banks to open and monitor currency chests on behalf of RBI. The money kept in currency chests in the commercial banks is considered to be kept in RBI. 47. Insolvency An organization, a family, person, or company is declared as insolvent when they are unable to pay their debts back on time. One of the most common solutions for insolvency is bankruptcy. 48. Bankruptcy Bankruptcy is a legal declaration of a person who is unable to pay off debts. In generally, Bankruptcy is of two types- Reorganization and Liquidation bankruptcy. Under the bankruptcy of reorganization, debtors should restructure their bill plans to make them more easily met. Whereas under liquidation bankruptcy, Debtors has to sell its assets to make money so that they can pay off their creditors. 49. Amortisation Amortization is a periodic payment of debt like a loan or a mortgage. Amortization is the arrangement of a lump sum cash flow into many periodic instalments over a span of time, which is also called amortization agenda. 50. Credit Crunch A credit crunch is also known as a Credit squeeze or credit crisis. A credit crunch is a condition in which there is an immediate decline in the availability of a loan or the credit. A situation in which suddenly the credit becomes difficult to get. Sometimes it can be done by reverse actions like by strict rules and regulations to avail the fund from the financial institutions like banks, NBFCs, and many other lenders.

Documents

1 | Page · • Kotak Mahindra Bank (Kotak) stated that it will charge customers for UPI transactions starting 1st of May 2019. • For each Kotak Bank account, the first 30 UPI fund