BANKING Awareness July August September 2017 part 3

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Monetary Policy Committee (MPC),

TheseventhmeetingoftheMonetaryPolicyCommittee(MPC),constitutedundersection45ZBoftheamendedReserveBankofIndiaAct,1934,washeldonOctober3and4,2017attheReserveBankofIndia,Mumbai.

Themeetingwasattendedbyallthemembers– Dr.ChetanGhate,Professor,IndianStatisticalInstitute;Dr.Pami Dua,Director,DelhiSchoolofEconomics;

Dr.Ravindra H.Dholakia,Professor,IndianInstituteofManagement,Ahmedabad;Dr.MichaelDebabrata Patra,ExecutiveDirector(theofficeroftheReserveBanknominatedbytheCentralBoardunderSection45ZB(2)(c)

oftheReserveBankofIndiaAct,1934);Dr.ViralV.Acharya,DeputyGovernorinchargeofmonetarypolicy– andwaschairedbyDr.Urjit R.Patel,

Governor

Monetary Policy Committee (MPC),

keepthepolicyreporateundertheliquidityadjustmentfacility(LAF)unchangedat6.0percent.

Consequently,thereversereporateundertheLAFremainsat5.75percent,andthemarginalstandingfacility(MSF)rateandtheBankRateat

6.25percent.ThedecisionoftheMPCisconsistentwithaneutralstanceofmonetarypolicyinconsonancewiththeobjectiveofachievingthemedium-termtargetforconsumerpriceindex(CPI)inflationof4percentwithina

bandof+/- 2percent,whilesupportinggrowth.Themainconsiderationsunderlyingthedecisionaresetoutinthestatement

below.

Monetary Policy Committee (MPC),

Inflationisexpectedtorangebetween4.2-4.6percentinthesecondhalfofthisyear

The Reserve Bank reduced the Statutory Liquidity Ratio (SLR), the portion of deposits held by banks in government securities, by 0.5 per cent to 19.5 per cent, freeing over Rs. 57,000 crore to bank funds for lending.

According to bankers, it will not create much of a difference as several banks are holding in excess of statutory requirement.

RBIsetsupSupervisoryCollegesforsixScheduledCommercialBanks whichhavesizeableinternationalpresence

StateBankofIndia,ICICIBankLtd.,BankofIndia,BankofBaroda,AxisBankLtd.andPunjabNationalBank.

Theobjectivesofthecollegesaretoenhanceinformationexchangeandcooperationamongsupervisors,toimproveunderstandingoftheriskprofileofthebankinggroup andtherebyfacilitatemoreeffective

supervisionofinternationallyactivebanks

BSEinksCooperationPactwithEgyptianExchange

BSEhasjoinedhandswithEgyptianExchange(EGX)forcooperationinexchangeofinformationacrossbusinessareas.

TheexchangeaimistocrosslistandtradesecuritiesandItwouldprovidenewinvestmentalternativestoinvestorsinbothmarkets.

TheMoUbetweenBSEandEGXrepresentsanimportantstepinintegratingboththeexchangestobuildcapitalmarketflows.

ThroughthisMoUarangeofopportunitieshasbeenexploredforthedevelopmentoftheirbusinesses,productsandmarketstoshareknowledge

andstrengtheninternationalconnectivity

PunjabNationalBanktiesupwithBajajAllianzGeneralfordistribution.

(BANCASSURANCE)

State-ownedPunjabNationalBank(PNB)andBajajAllianzGeneralInsurancehavesignedanagreementforthedistributionofinsuranceproductsthrough

thebranches.

Underthisagreement,BajajAllianzGeneralInsurancewillofferpersonallinesofinsuranceproducts suchashealth,personalaccident,home,motorandtravelalongwithcommerciallineofinsuranceproductssuchasproperty,

marineandengineeringinsurance,etctothebankscustomers.

Thebankhaswidespreadnetworkofaround7,000branches.

SIDBIstartsmerchantbankingoperationsforMSMEs

SmallIndustriesDevelopment Bank of India saidithasstartedfullfledgedmerchant banking operationstohelpmediumandsmall

enterprises(MSMEs)tapcapitalmarketsfortheirfundingrequirements.

TheinitiativewouldenhanceaccessofMSMEstocapitalmarketsincludingSMEtradingplatformandinstitutionaltradingplatform.

StandardCharteredBanklaunchesMulticurrencyForexCard

StandardChartered Bank haslauncheda'Multicurrency Forex Card'thatofferscustomerstheconvenienceofloadingupto20widelyusedcurrenciesononecard.

Thecardcomeswithanonlinereloadfacilityduringoverseastravelandisdesignedtooffertravelersasecurewaytocarrymoneywhentravellingabroad.

Someofthecurrenciesthatcanbeloadedare theUSdollar,Euro,BritishPound, Singapore dollar,Swissfranc,Thaibaht,JapaneseYenandSouthAfricanrand

StandardCharteredBankHeadquarters: London,UnitedKingdom

CEO: BillWinters

KarnatakaBanklaunches“MetLoan&LifeSuraksha”

KarnatakaBankinassociationwithitslifeinsurancepartnerM/sPNBMetLife,today,announcedthelaunchof ‘MetLoan&LifeSuraksha’(MLLS), asingle

premiumplancoveringtheloanliabilityofacustomer.

Intheyearofcelebrating15yearsofitspartnershipwithM/sPNBMetLife,Bankalsointroduced ‘KBLMLLS’ appexclusivelyfortheKBLemployees toinstantly

calculatetheinsurancecoverandpremiumbasedonloanliabilityoftheirborrowers.

Theloanproductandmobileappwasunveiledby Mr.Mahabaleshwara M.S.,ManagingDirector&CEO,KarnatakaBank

BoB signsMoUwithDGS&Dforservicestogovt's e-marketplace.

BankofBarodahasenteredintoanagreementwithDirectorateGeneralofSupplies&Disposal(DGS&D) forextendingvariousbankingservicesto

Governmente-Marketplace(GeM).

DGS&DhasbeenmandatedtosetupGeM,aninitiativeintendedtobringgreatertransparencyandefficiencyinpublicprocurements.

TherelationshipofthebankwithGeM willimmenselybenefitallstakeholdersandensureasupportsystemincludingadedicatedteamfor

seamlessfunctioningoftheportal

TheCabinethadinApril2017approvedcreationofGeM SpecialPurposeVehicle(SPV),whichwillreplaceDGS&D,nodalpurchaseorganisation ofthe

centralgovernment.

TheGeM SPVhasbeenestablishedasNationalPublicProcurementPortaltoprovideanend-to-endonlinemarketplaceforcentralandstategovernmentdepartments, theirpublicsectorundertakings,autonomousinstitutionsandlocalbodies,forprocurementofcommongoodsandservicesinatransparent

andefficientmanner.

TheDGS&DshallbewoundupandceaseitsfunctionsbyOctoberthisyear."IncaseitisnotpossibletowindupDGS&DbyOctober31,2017,the

departmentmayextendthedateofclosurewithproperjustificationlatestuptoMarch31,2018,"

SEBIinkspactwithESMAforinformationexchangeonCCPs.

MarketsregulatorSecuritiesandExchangeBoardofIndia(SEBI) hasenteredintoaMemorandumofUnderstanding(MoU)withtheEuropeanSecuritiesandand Markets

Authority(ESMA)

TheMoUwassignedforexchangeofinformationconcerningCentralCounterparties(CCPs)undertheEuropeanMarketsInfrastructureRegulation(EMIR).

What is a 'Central Counterparty Clearing House - CCP'Acentralcounterpartyclearinghouse(CCP)isanorganizationthatexistsinvarious

EuropeancountriestohelpfacilitatetradingdoneinEuropean derivatives and equities markets.These clearinghouses areoftenoperatedbythemajorbanksinthecountrytoprovideefficiencyandstabilitytothe financial

markets inwhichtheyoperate.CCPsbearmostofthe creditrisk ofbuyersand sellers whenclearingandsettlingmarkettransactions.

ICICIBankoffersuptoRs15lakhinstantpersonalloanviaATMsfor60months

Thesecustomerscangetpre-qualifiedpersonalloansupto15lakhs intheirsavingsaccountinstantly.

thefacilityoffersabouquetoffeatures- swiftapplicationinsimplesteps,multipleeligibleloanamountoptionsuptoRs.15lakhbasedonpre-checkedCIBILscoresand

instanttransferofthemoneytothecustomer’saccount.

ACreditScoreortheCIBILScore isathree-digitnumericsummaryofyourcredithistory.ThescoreisderivedusingthecredithistoryfoundintheCIR(CreditInformationReport)

ACIRisanindividual’screditpaymenthistory acrossloantypesandcreditinstitutionsoveraperiodoftime.ACIRdoesnotcontaindetailsofyoursavings,investmentsorfixed

deposits

ICRA,IIFCLlaunchratingsystemforinfraprojects.

AnewsystemforratingofinfrastructureprojectshasbeenlaunchedbyratingagencyICRAinassociationwiththeIndiaInfrastructureFinance

CompanyLtd(IIFCL).

Thenewsystemwillfocusontheoverallrecoveryofduesbytheinvestor/lenderoverthelifecycleoftheproject,besidesretainingthe

valuableaspectofprobabilityofdefaultalreadyadoptedbytheconventionalratingscale.

Rs20notesinMahatmaGandhi2005seriessoon:RBI

Thenoteswillbesimilarindesigntothosecurrentlyincirculation.

Thenewnoteswillbebearinginsetletter‘S’inthenumberpanelandsignatureofGovernorUrjit RPatel.“Boththenumberpanelswillhaveinset

letterS.

Moreover,thebanksaidthatthedesignofthesebanknotestobeissuednowissimilarinallaspectstotheRs20banknotesinthesameseriesissued

earlier.

RBIclarifiedthatallthebanknotesinthedenominationofRs20issuedbytheBankinthepastwillcontinuetobelegaltender

Accordingtothedetailedpressrelease,thedesignandsecurityfeaturesofthesebanknotestobeissuednowissimilartotheRs20banknotesinMahatmaGandhi

Series- 2005issuedearlier,exceptthefollowing:-

ObverseAscendingfontThenumeralsinboththenumberpanelswillbeinascendingsizefromlefttorightwhilethefirstthreealpha-numericcharacters(prefix)willremainconstantinsize.

IntaglioprintingThenumeral“20”,RBIseal,MahatmaGandhi’sportrait,RBIlegend,Guaranteeandpromiseclause,Governor’ssignature,Ashoka Pillaremblemwhichwerehithertoprintedinintaglio(raisedprinting)are nowbeingprintedinoffset(withoutany

raisedprinting).Further,rectangularidentificationmarkontheleftofthebanknotehasbeenremoved.

Colour

Whilethereisnochangeinthecolour atthereverse,thecolour attheobverseislighter(duetoremovalofintaglioprinting).

LatentImageTheverticalbandontherightsideoftheMahatmaGandhi’sportraithithertocontainedalatentimageshowingthedenominationalnumeral“20”.Thelatent

imagewasvisibleonlywhenthebanknotewasheldhorizontallyateyelevel.Thisfeatureisnolongerpresent.

ReverseThereisnochangeinthereverseofthebanknote.

SBIlaunchesrealtywebsite'SBI-Realty'tofacilitatehomebuyers.

India'slargestcommercialbank SBI saidithaslaunchedadedicatedportal'SBIRealty'thatwillhelphomebuyerstochooseflatsfromits3,000approvedprojectsacrossthe

country.

StateBankofIndiahastakenanothersteptowardscustomers'conveniencebylaunching'SBIRealty'– aonestopintegratedwebsitewww.sbirealty.inforhomebuyers

SBIRealtywillhelpcustomerstochoosetheirdreamhomefrom3,000SBIapprovedprojects,whicharespreadacross13statesandUnionTerritoriescovering30cities.

Atpresent,thereare9.5lakhhomeunitsavailableonthewebsite.Customerscancomparecurrentandpasttrendsofpricesforthepropertiesinvariouslocalitiesinthe

city

YESBankgets$150mn fromOPICtofundSMElending.

PrivatesectorYesBankhasreceived$150millionfundingfromtheUSgovernmentandWellsFargotoincreaselendingtosupportwomenentrepreneursandsmallandmedium-sizedenterprisesinIndia.

ThisisthethirdroundoffundingtothebankaspartofarrangementwiththeOverseasPrivateInvestmentCorporation(OPIC) --theUSgovernmentdevelopmentfinanceinstitution-- andWells

Fargo.

Undertheagreement,OPICwillprovide$75millioninfinancingandupto$75millioninsyndicatedfinancingjointlyarrangedbyWellsFargoBanktoYesBank

$50millionofthefinancingwouldbeusedtoexpandsupporttowomen-ownedbusinesses,whileanotherequalamountwillbeusedforfinancingSMEbusinessinlow-incomestates.

RanaKapoor,managingdirectorandCEO,YESBANK

SMEscontributeabout45%ofindustrialoutputandemploy42millionpeopleinthecountry.

ChhattisgarhgovttomergeDCCBs(districtcooperativecentralbanks)withstatecooperativebank.

Itaimedtoservethefarmerswithbetterandefficientbankingfacilities.

Afterthedecision,allDCCBswillbeamalgamatedintoonestatecooperativebank.Itwillenactastrongfinancialinfrastructureandemergeasaeffective

bank.

Althoughall264branchesoftheDCCBswillcontinuetofunctioninthestateassameasearlierbutfromnowonwillgiveitsservicesasascheduled

cooperativebank.Thedecisionwillbebenefitthefarmersandtheinterestrateswillcome

downbyanother1.5to2percentonloanstothem.

Thiswilldirectlyaffectthestategovernment’sinterestsubsidy,whereitwillbesavingRs40-50croreannually.

Besides,thefarmerswillbegettingmodernised bankfacilitiesatthevillagelevelalongwithATMandMicroATMservices.

TheycancarryouttransactionfromanybranchinanypartofthestateandverysoonmobilebankingandInternetbankingfacilitieswillbe

added.

TheworkingcapitalofthecooperativebankwillcrossoverRs10,000croreafterthemergerandthebankwillhaveenoughmoneyfor

disbursementofagricultureloans

YESBANKLaunches'YESGST'ProgramtoAssistMSMEs.

YESBANK,India'sfourthlargestprivatesectorbank,alongwithYESGlobalInstitutehaslaunched'YESGST'programforMSMEs(Micro,SmallandMediumEnterprises)underitsMSMECSRinitiative,'SayYEStoSustainableMSMEsin

India'.

YESBANKisorganizingmorethan3,000eventsonGSToverthenext6monthsinpartnershipwithNationalSmallIndustriesCorporation(NSIC),FederationofIndianExportOrganizations(FIEO)andFederationofAutomobileDealersAssociations

(FADA),amongothers.

ThebankwillhelpMSMEstounderstandtheimpactofthechangesintaxsystemandpreparethemtoknowthenewGSTtaxsystem

TheBankhasalsocreatedaportalhttp://www.Yesbank.In/yes-gstwhichwillbeeasy-tounderstandknowledgematerialofallGSTrelated

information.

YESBANKhassetupamissedcallno.(8080945075) forMSMEstoaddresstheirqueriesonGST

SBIwaiveschargeonIMPSfundtransferofuptoRs1,000.

Country’slargestbankSBIhaswaivedchargesforfundtransferofupto₹1,000throughitsIMPS(ImmediatePaymentService)topromotesmalltransactions.

IMPSisaninstantinterbankelectronicfundtransferservice throughmobilephonesaswellasinternetbanking.

StateBankofIndiahadbeencharging₹5alongwiththeapplicableservicetaxforIMPSfundtransferofupto₹1,000

Thechargewillgoupto₹15fortransactionsof₹1-2lakh.

GSTattherateof18percentisapplicableonallfinancialtransactions.

AxisBank,IICpacttoboosttradewithLatinAmerica.

AxisBankannouncedthatitwillhelptradersboostrelationsbetweenIndiaandLatinAmericaandtheCaribbean inacollaborationwithInter- AmericanInvestment

Corporation.

ItwillfacilitatetradewithLatinAmericaandtheCaribbeaninwhichAxisBankwillparticipateintheTradeFinanceFacilitationProgramme(TFFP)asaconfirmingbank.

AxisBanksaiditisthefirstIndianBanktobeapartofsuchafacility.

TheInter-AmericanInvestmentCorporation(IIC)willbeactingonbehalfoftheInter-AmericanDevelopmentBank(IDB)

36th FoundationDayofNABARDcelebratedonJuly112017

SelfHelpGroupBankLinkageProgramme(SHGBLP),thepioneeringinitiativeofFinancialInclusionbyNABARDcompleted25yearsduringthisyear

UnionFinanceMinister,ArunJaitleywastheChiefGuest

Andiswellpoisedtodeliverthesavingsandcreditservicesatthedoorstepofruralpoorespeciallywomenthroughtheirself-managedinstitutionscalled

SHGs

Commemoratingthisoccasion,NABARDhasdedicatedits36th FoundationDaytocelebratetheSilverJubileeofSHGBankLinkageProgramme

Sinceitspilotstagein1992,theSHGProgrammehascomealongwayincoveringmorethan10 croreruralfamilies.

Ason31st March,2017thesegroupshadsavingsofmorethanRs16,000croreinbanksanddoubleofthatamountintheirinternallending.

TheProgramhadacatalyticeffectinsourcingcollateralfreeloanstothetuneofRs61,000croretothesepoorwomenfromthemainstream

bankingsystematthenormalratesofinterest.

Withmorethan8.5croreruralwomen asthedirectparticipantsinthismassmovement,NABARDcelebratedtheSilverJubileeofSHGBLPat

Vigyan Bhavan innationalcapital.

TheSelf-HelpGroup-BankLinkageProgramme(SBLP),whichstartedasapilotprogrammein 1992 hasdevelopedwithrapid

stridesovertheyears.

SHG-BankLinkageProgrammewasstartedonthebasisofrecommendationof SKKalia Committee.

FMlaunchesanewtaxpayerservicemoduleAaykar Setu

Anewtaxpayerservicemodule ‘Aaykar Setu’,waslaunchedbytheUnionFinanceMinister,ArunJaitley.

Thise-initiativewouldhelpinreducingphysicalinterfacebetweenassessesandtaxassessingauthoritiesandtherebyminimizingthechancesofanytax

harassment.

ThenewstepisaneffortbytheIncomeTaxDepartment(ITD)to directlycommunicatewiththe taxpayers,onarangeofmultipleinformativeandusefultaxservicesaimedatprovidingtaxinformationattheirfingertips.

AtaxpayercandofollowingworksusingtheAaykar Setu mobileapp:-- BringsTRPatyourdoorstep-- Makesyourreturnspreparationeasier-- Providesyoudifferenttaxtools-- Makestaxpaymentseasierforyou.-- AllowsyoutoapplyforPAN-- AllowsyoutotrackTDS-- Comeswithagame'TaxGyaan'toteachyouabouttaxes-- Offersachatboardforallyourtax-relatedqueries

AlltaxpayerswhowishtoreceivesuchSMSalertsareadvisedtoregistertheirmobilenumbersinthe Aaykar Setumodule.

TheCentralBoardofDirectTaxes(CBDT)constantlyendeavours toprovidebettertaxpayerservicesandreducetaxpayergrievances. Newschemesande-initiativestoeducatethetaxpayersanddelivertaxpayerservicesinaneffectivemannerarekeyto

thiseffort

ThirdtrancheofSovereign gold bond

Thebondswillbesoldthroughbanks,StockHoldingCorporationofIndiaLtd(SHCIL),designatedpostoffices,andtheNationalStock

ExchangeandtheBSE.

TheSGB(sovereigngoldbond )schemewaslaunchedinNovember2015withanobjectivetoreducethedemandforphysicalgoldandshiftapartofthedomesticsavings,usedforpurchaseofgold,into

financialsavings.

TheGovernmentofIndia,inconsultationwiththeRBI(ReserveBankofIndia), decidestoissuesovereigngoldbonds

Minimuminvestmentinthebondsisonegram,withamaximumlimitofsubscriptionof4kggramsperpersonper

fiscalyear

Earlier500gramsperpersonperfiscalyearAccordingtothestatement,theinvestmentlimitperfiscal

yearhasbeenincreasedto4kgforindividuals,4kgforHinduUndividedFamily(HUF)and20kgfortrustsandsimilarentitiesnotifiedbythegovernmentfromtimetotime.

Whatistheminimumandmaximumtenure?Thetenureofthebondisforaperiodof8years.However,thereareexitoptionsfrom5thyeartobeexercisedontheinterestpayment

dates.

TheWhyshouldyougoforit?Thepriceofthebondislinkedtothegoldprice.Whengoldpricesrisethevalueofyourinvestmentgoesup.Moreover,thebond

wouldearnyouaninterest2.5percentperannumonthetopofit.ThentherearenoannualrecurringexpensescomparedwithgoldETFs. Youalsosaveonhandlingandstoragecostsofphysicalgold.

Investmentscanbeusedascollateralforgettingabankloan.

Theinvestorswillbecompensatedatafixedrateof2.50%perannumpayablesemi-annuallyonthenominalvalue.

Indiaimportsaround1,000tonnesofgoldeveryyear,resultinginlarge-scaleforeignexchangeoutflows.

Priceofbondwillbefixedinrupeesonthebasisofsimpleaverageofclosingpriceofgoldof999purity publishedbytheIndiaBullionandJewelersAssociationLtdfortheweek(MondaytoFriday)

precedingthesubscriptionperiod.

Aretheytaxable?

Unlikephysicalgold,buyinggoldthroughgoldbondschemewillsaveyoufromshelling 3% GST on gold.Also,UnionBudget2016-17allowedanycapitalgainsarisingoutof

redemptionofsovereigngoldbondstobetaxexempt.Butanycapitalgainduetoasaleinsecondarymarketbefore

maturityresultsintaxationat20%withindexation,ifsoldonorafterthreeyears,orwouldbesubjecttomarginaltaxrate

ifsoldbeforethreeyears.

NepalSBIlaunchesfirstpaperlessBankingservices.

The StateBankofIndia (SBI)haslauncheditsflagshipserviceINTOUCHinNepal

NepalRastra BankGovernorChirinjibi Nepal,SBIBanksthenchairpersonArundhatiBhattacharyaandIndianAmbassadortoNepal

Manjeev SinghPuri,jointlyinauguratedthenewserviceinNepal

ItwilloffercustomersproductslikeSavingsBank,Saral Bachat AccountandComboSavingsAccountandthebranchwillhavefacilitieslike

kiosksforaccountopening,debitcardprinting,andATM.

ItwouldbethefirstofitskinddigitalinitiativeinNepalbankingindustry alongwithINTOUCH.

UndertheDigitalVillageInitiative,theNSBLhasadoptedJaharsing Pauwavillage toprovidefinancialliteracycentres andotherbankingfacilitiestothe

2,200villagers.

Theservicestothe443householdswouldincludeaninternetbankingkiosk,freeWiFi,POSutilityatfourmerchantoutlets,cashrecyclemachines.

TheNSBLisamongthefastestgrowingcommercialbanksinNepalandenjoysaleadpositionintermsofpenetrationoftechnologyproducts.

NSBLisaJVbetweenSBIandtheEmployeesProvidentFund,Nepal,

MobiKwik,SamsungPaytoenableone-tappaymentsolutionfore-walletusers.

Aspartofthetie-up, MobiKwik walletisnowintegratedwith Samsung PayMinitoenableone-tappaymentsatmorethan1.4millionMobiKwik-

poweredmerchantsacrossthecountry.

MobiKwik's mobilewalletwillalsobeavailablesoonto Samsung Payusers.

Therehasbeenamassivegrowthinnumberoftransactionsusingdigitalplatformsinthecountry,especiallyafterthegovernment'smovetoscrap

high-denominationnotesinNovember.

Samsung Pay,themobilepaymentsserviceoftheworld'slargesthandsetmaker,waslaunchedin India inMarchthisyear.

Itallowsuserstojusttapandpayusingthedebit/creditcardsandwalletsstoredontheirmobiledevices.

Samsung hadunveileda'Mini'versionoftheplatformthatintegrates UPI andmobilewalletstoworkonmid-rangepriced

smartphones.It,however,doesnotsupporttap-and-payusingcreditanddebitcardslikethemainapp.

CEOMobikwik : BipinPreetSingh

IndiatojoinnewGlobalforeignexchangecommittee.

IndiawillsoongetaseatontheGlobalForeignExchangeCommittee(GFXC),anewly-constitutedforumofcentralbankersandexpertsworkingtowards

promotionofarobustandtransparentforex market.

ThecommitteehasbeensetupundertheguidanceoftheBankforInternationalSettlements(BIS),aninternationalfinancialorganisation

ownedby60membercentralbanks,representingcountriesfromaroundtheworld.

TheGFXCwasestablishedinLondonduringameetinginMay2017ofpublicandprivatesectorrepresentativesfromtheforeignexchangecommittees

(FXCs)of16internationalforex tradingcentres.

Thenewlyexpandedandformalised GFXC,replacesasimilarbutmoreinformalorganisation ofeightFXCsfromAustralia,Euroarea,Canada,HongKong,Japan,

Singapore,UKandUS.

Itwillnowalsoincluderepresentativesfromexisting,orsoontobeestablishedFXCsorsimilarstructuresinChina,India,Brazil,Korea,Mexico,SouthAfrica,

SwedenandSwitzerland.

TheobjectivesGFXC.

PromotecollaborationandcommunicationamongthelocalFXCsandnon-GFXCjurisdictionswithsignificantFXmarkets...

ExchangeviewsontrendsanddevelopmentsinglobalFXmarkets,includingonthestructureandfunctioningofthosemarkets,drawingoninformationgatheredatthe

variousFXCs.

Promote,maintainandupdateonaregularbasistheFXGlobalCode(theCode)andconsidergoodpracticesregardingeffective

mechanismstosupportadherence.

Itwillalsomaintainandupdate‘GlobalCodeofConduct fortheForeignExchangeMarkets’issuedbyBankforInternational

Settlements(BIS).

HQBIS- Basel, Switzerland

Generalmanager- JaimeCaruana

RBIconsideringsettingupPublicCreditRegistryinIndia

TheReserveBankofIndia(RBI)mayconsidersettingupaPublicCreditRegistry(PCR),whichwillbeanextensivedatabaseofcreditinformationforIndiathatisaccessibletoallstakeholders.

RBIDeputyGovernorViralAcharya highlightedtheneedtosetupapubliccreditregistrywhiledeliveringthethemetalkatthe11th

StatisticsDayConference.

ReserveBankcelebratedits‘11thAnnualStatisticsDayConference’onJuly04,2017ontheTheme‘NewFrontiersonStatisticalMethodsand

InformationBaseforCentralBanks’.

AccordingtotheWorldBankDoingBusinessProject,"Publiccreditregistrycoveragereportsthenumberofindividualsandfirmslistedinapubliccreditregistrywithcurrentinformationonrepaymenthistory,unpaiddebts,orcreditoutstanding.Thenumberis

expressedasapercentageoftheadultpopulation."

TheytendtobedifferentfromCreditInformationbureauwhichtendstocatertotheinformationrequirementsofcommerciallendersandisprivatelyowned.

Whileapubliccreditregistrydataaregearedtowardsusebypolicymakers,regulators,andotherofficialsandaregenerallyownedbyacentralbankofacountry.

PublicCreditRegistryismanagedbyapublicauthoritylikethecentralbankorthebankingsupervisor,andreportingofloandetailstotheregistrybylendersand/or

borrowersismandatedbylaw.

Acharya mentionedthatpubliccreditregistrywillhelpRBIineffectivelymonitoringdelinquenciesincreditmarketand

interveneatanearlyphase.

Itwillbringinefficiencyinthecreditmarketbyhelpingthelendersinappraisalsandmonitoringoftheloanportfolio.

Theregistrywillalsohelpthecauseoffinancialinclusionofthesmallbusinessesandindividualsbyallowingthemtoestablish

theirreputationviatheregistry.

Canara HSBCOrientalBankofCommerceLifeInsurancetiesupwithDhanlaxmi Bankformarketingbancassurance.

PrivatelifeinsurancecompanyCanara HSBCOrientalBankofCommerceLifeInsurance,hasenteredintoanalliancewith

Dhanlaxmi Bank.

AllthelifeinsuranceproductsofCanara HSBCOrientalBankofCommerceLifeInsurancewouldbemadeavailabletocustomersofDhanlaxmi Bankandwouldbesoldbythelicensedstaffofthebank.

AnujMathur,chiefexecutiveofficer,CanaraHSBCOrientalBankofCommerceLifeInsuranceCompanyLimited

Canara HSBCOrientalBankofCommerceLifeInsurancehasaccesstoaround115millioncustomersandapan-Indianetworkofover9500

branchesofthethreeshareholderbanks

Dhanlaxmi Bankhasanetworkof260branchesand371ATMscovering129citiesacrossIndiain15statesand1unionterritoryandacustomerbaseofover2million.Aspartoftheagreement,thebank

willbeacorporateagentfor3years

HQDhanlaxmi Bank:Thrissur,Kerala

CEODhanlaxmi Bank: G.Sreeram

RBIallowsNBFCstooffernewpensionscheme.

TheReserveBankofIndiahasallowedsystematicallyimportantnonbankingfinancecompaniestosellandmarketthenewpensionscheme

(NPS).

NBFCswithassetsizeofRs500croreandabovethathavemadeanetprofitintheprecedingfinancialyearbepermittedtosellNPStotheir

clientsafterregistrationwiththepensionregulator.

The NewPensionScheme wasinitiatedbythegovernmentin2009,givingpeoplearoutetoavailapensionaftertheyareretiredorasasenior

citizen.

Governmentemployeesalreadyenjoypension,andthisnewschemewasintroducedtoenablethepeoplefromunorganised sectorstoenjoythe

benefitsofpension.

Acontributionofacertainamountismadeeverymonthduringtheyearswhenanindividualisactivelyworking.

Thisamountisinvestedaspertheindividual’spreference.

Themoneycanthenbewithdrawnataminimumageof60years.

Thereareacoupleofoptionsforinvestmenttochoosefrombasedontheindividual’spreferenceofassetallocationandwithdrawal.

EligibilityCriteriaforNewPensionScheme

TheapplicantfortheschemeshouldbeanIndiancitizen

Theapplicantshouldbeaminimumof18yearsofage

Theapplicantshouldbeamaximumof60yearsofage

TheminimumcontributiontobepaidisRs.500

Thecontributionhastobemadeatleastonceperyear.

TheminimumannualcontributionshouldbeRs.6,000

ThemaximumcontributiontotheschemeshouldnotexceedRs.12,000perannum

AirtelPaymentBanktiesupwithHPCLforATMservices

AirtelPaymentsBank,whichhasachieved10millioncustomerbasesincelaunch,hastiedupwithHindustanPetroleum

CorporationLimited.

ForenablingallitspetrolstationsthataretypicallycashsurplustobeusedasATMpointsforcustomersofthebank

All14,000HPCLfuelstationswillactasbankingpointsforAirtelPayments

Thesecashlesspaymentscanbemadeviasmartphones(MyAirtel App)aswellasfeaturephones(USSD),thecompanysaid.

Thecustomerisnotchargedanytransactionfeeforthesedigitalpayments.

AirtelPaymentBankisa80:20jointventurebetweenBharti AirtelLtdandKotak MahindraBank.

MD&CEO– Shashi Arora

RBIconstitutesinternalgrouptoimproveMCLR

RBIannouncedinAugustthatithasconstitutedan internalstudygrouptostudythemarginalcostoffundsbasedlendingrate(MCLR) toimprovemonetarypolicy

transmission.

ThisstudygrouphasbeenformedastheexperiencewiththeMarginalCostofFundsBasedLendingRate(MCLR)systemintroducedinApril2016 forimprovingthe

monetarytransmissionhasnotbeenentirelysatisfactory,eventhoughithasbeenanadvanceoverthebaseratesystem.

However,RBIdidnotelaborateonwhatexactlyistheproblemwiththecurrentMCLRregime.

Thestudygroupwillalsoexplorelinkingthebanklendingratesdirectlytomarketdeterminedbenchmarksand willsubmititsreportbySeptember24,2017

Themarginalcostoffundsbasedlendingrate(MCLR)

Itreferstotheminimuminterestrateofabankbelowwhichitcannotlend,exceptinsomecasesallowedbytheRBI.

Itisaninternalbenchmarkorreferencerateforthebank.MCLRactuallydescribesthemethodbywhichtheminimuminterestrateforloansisdeterminedbyabank- onthebasisofmarginalcostortheadditionalorincrementalcostofarrangingonemorerupeetothe

prospectiveborrower.

TheMCLRmethodologyforfixinginterestratesforadvanceswasintroducedbytheReserveBankofIndiawitheffectfromApril1,2016.

Thisnewmethodologyreplacesthe baserate systemintroducedinJuly2010

ReasonsforintroducingMCLR

RBIdecidedtoshiftfrombaseratetoMCLRbecausetheratesbasedonmarginalcostoffundsaremoresensitivetochangesinthe policyrates.

Thisisveryessentialfortheeffectiveimplementationofmonetarypolicy.PriortoMCLRsystem,differentbankswerefollowingdifferentmethodologyforcalculationofbaserate/minimumrate–

thatiseitheronthebasisofaveragecostoffundsormarginalcostoffundsorblendedcostoffunds.Thus,MCLRaims

Toimprovethetransmissionofpolicyratesintothelendingratesofbanks.

Tobringtransparencyinthemethodologyfollowedbybanksfordetermininginterestratesonadvances.

Toensureavailabilityofbankcreditatinterestrateswhicharefairtoborrowersaswellasbanks.

Toenablebankstobecomemorecompetitiveandenhancetheirlongrunvalueandcontributiontoeconomicgrowth

SBI,SamsungcollaboratetoadvanceDigitalIndiainitiative.

The State Bank of India (SBI)and Samsung India announcedtheavailabilityof Samsung Payforhighervariantsof SBI debitcard,givingamajorboostto

government's'Digital India'initiative.

Samsung Payworkson2.5millionPointofSale(PoS)CardmachinesacrossthecountrythroughitsMagneticSecureTransmission(MST)technology.

Samsung Payiscurrentlyavailableonawiderangeof Samsung smartphones,enablingconsumerstomakeofflinepaymentswithouttheneedforaphysicalCard.

Companyintroduced Samsung PayMinitocatertotheuniquerequirementsofmid-segmentconsumers

India,ASEAN-5morefetchingtoFDIthanotheremergingmarkets

IndiaalongwithIndonesia,Malaysia,Thailand,thePhilippinesand Vietnam ismoreattractivetoFDIsascomparedtoother

emergingmarkets,saysa Nomura report.

TheJapanesefinancialservicesmajorhasdubbedIndiaandASEAN-5as"Asia'stigercubs",andsaidFDIinflowstothesenationswillincreasefromaroundUSD100billionperyearnowtoaroundUSD

240billionby2025.

FactorsthatareexpectedtoencourageFDIintoIndiaandASEAN-5include

largeandgrowingdomesticmarkets;reformsfocussed onimprovinginfrastructureandtheeaseofdoingbusiness;amoreopenandliberalFDIregime;soundeconomicmanagementandpoliticalstability;andavailability

oflow-costlabour.

Intermsofequitymarketimplications,NomurasaidinIndia,FDIisexpectedtoflowintosectorsthatneedgrowthcapital(infrastructure,banks,e-

commerceandhospitals)andthosewithstronglong-termgrowthprospects(retail,automobiles,pharmaceuticalsanddiagnostics).

SBItoraise2000croreviaBASEL-IIIbonds

India’slargestlenderStateBankofIndia(SBI)planstoraiseRs2,000crore byallottingAT1Basel-IIIcompliantbondstovarious

investors.

Additionaltier-1(AT1)securities

SBIsaidthebondswillcarryacouponrateof8.15%perannumwithacalloptionafterfiveyearsortheanniversarydate

thereafter.

FinanceMinisterArunJaitleyannouncesnewETF-Bharat-22;Sectoral capsetat20%.

Thegovernmentannouncedthelaunchofitssecondexchange-tradedfund(ETF),Bharat22,whichwillcomprise22stocksincludingthoseofcentralpublicsectorenterprises(CPSEs),publicsectorbanksanditsholdingsundertheSpecifiedUndertakingofUnitTrustofIndia(SUUTI).

FinanceministerArunJaitleysaidtheETFwillhaveadiversifiedportfolioofcompaniesfromsixsectorswitha20%caponeachsectoranda15%caponeachstock.

Exchange-tradedfunds(ETFs)areessentiallyindexfundsthatarelistedandtradedonexchangeslikestocks.

“PresentlawpermitsthegovernmenttobringdowngovernmentequityinPSBsto52%,”

Thegovernmenthasseta“stifftarget”ofRs72,500crorefordisinvestmentin2017-18

AsiaIndexlaunchesS&PBSEBharat22

AsiaIndexPvt.Ltd,anequaljointventurebetweenS&PDowJonesIndicesLLCandBSELtd,announcedthelaunchoftheS&PBSEBharat22Indexwhichisdesignedtotracktheperformanceofselectblue

chipgovernmentcompanieslistedonBSE.

TheS&PBSEBharatCPSEIndexcomprises22selectedcompaniesofwhich

16areCentralPublicSectorEnterprises(CPSE).

3arefromSpecifiedUndertakingoftheUnitTrustofIndia(SUUTI)

3arePSUBanks,andarelistedontheBSE.S&PBSEBharat22hasbeenlicensedtoICICIPrudentialAMCfordevelopmentofanexchangetraded

fund(ETF)basedontheindex.

Itcoverssixsectorsnamelyindustrials,finance,utilities,energy,FMCG,basicmaterialsandtelecom

Canara Bankhitsoverseasbondmarketwith$400-mnissue.

State-runCanara Bankisintheinternationalbondmarketwitha$400-millionissueaspartofits$2-billionmediumtermnoteprogramme.

Canara Bankisintheinternationaldebtmarketwithabenchmarkdollarbondissuethatwillhaveatenorof5years.

Thelenderislikelytoraise$400millionthroughthebondsaleissue,whichwillbedrawnthroughitsLondonbranchandwillbelistedontheSingaporeStock

Exchange.

Kotak Bank’snewforex service‘Kotak Remit’.

Kotak MahindraBankhaslaunchedKotak Remit— anAadhaar-basedintegratedoutwardforex remittancesolutionforbothcustomersandnon-customers.

The24x7forex remittanceserviceoffersacompletelypaperlessprocessthatenablesuserstoregisteronlineusingAadhaarandPANnumbers,andinitiate

remittancesinstantly.

Remittancescanbemadein15currencies.

AvailableforresidentindividualsholdingasavingsaccountwithanybankinIndia

Companiestodisclosebankdefaultswithinoneday:SEBI

Inafirst-of-its-kindmovetoincreasedebtdisclosuresbycorporateentities,themarketregulatortightenedthenormsforlistedcompaniesthatendupdefaulting

onloanrepayments.

ThemovebytheSecuritiesandExchangeBoardofIndia(Sebi)comesagainstthebackdropofRs10trillionofstressedassetspilingupinthebankingsystem.

Currently,theSebi ListingObligationsandDisclosureRequirementsRegulationsrequirespecificdisclosuresondelayordefaultinpaymentofinterestorprincipal

ondebtsecurities,includinglistednon-convertibledebentures,listednon-convertibleredeemablepreferenceshares,andforeigncurrencyconvertiblebonds.

Similardisclosuresarenotstipulatedwithrespecttoloansfrombanksandfinancialinstitutions

Sebi hasdirectedthat,starting1 October,listedcompanieswillneedtodisclose defaults on loan repayments within one working day.

Listedcompanieswouldneedtoinformexchangesincasetheyhavedefaultedinpaymentofinterest,instalment obligationsondebtsecurities,loansfrombanksandfinancialinstitutionsandexternal

commercialborrowings.

Companieswouldneedtodisclosedateofdefault,nameofthebank/financialinstitutionthatlentthemoney,defaultamountand

grossprincipalamountonwhichthedefaultoccurred.

MobiKwik partnersBajajFinanceforLargerfinancialservicepie.

MobiKwik hasenteredintoastrategicpartnershipwithBajajFinanceLtdtotransformitselfintofinancialservicesAppfromapaymentApp.

Underthisstrategicpartnership,BajajFinancehaspickedup10.83percentequitystakeinMobiKwik forabout Rs. 225croreandofferitslending(purchasefinance,creditcard,

mortgageloansandpersonalloans)andinsuranceproductstobesoldthroughMobiKwik App.

MobiKwik,whichcurrenthasuserbaseof55million,willthroughthispartnershipimmediatelygetaccesstoabout100millioncustomersofBajajFinance.

Upasana Taku,Co-Founder,MobiKwik saidFromacombinedcustomerbaseof155million itwillaimtoofferfinancialservicesto300million usersinnextcoupleofyears

Mastercard,PayPalexpandpartnershipintoAsiaPacific.

Mastercard andPayPalhaveannouncedanextensionoftheirpartnershipintoAsiaPacificformakingMasterCardaclearpaymentoptionwithinPayPal.

PayPalwilladdMastercard asapaymentmethodtotheire-walletandconsumerscanmakeittheirdefaultpaymentoption.

CardCompanywillprovidetokenizationservicesandwillenablemobilepaymentsusingPayPal’sdigitalwalletatmorethan6.5millioncontactless-enabled

merchantlocationsacrosstheglobe.

ThepartnershipwillalsoaddMasterpassasapaymentoptionformerchantsthatprocesspaymentsviaBraintree.

FinanceMinistrypaneltoresolvebankpensioner’sissues.

TheDepartmentofFinancialServices,MinistryofFinance,hassetupacommitteetoresolvethependingissuesofbankpensionersandretirees.

ThisistheoutcomeofaseriesofmeetingstheAllIndiaPensionersandRetirees’ConfederationhadwiththeUnionFinanceMinisterArunJaitley;MinisterofStateSantoshKumarGangwar;and

departmentofficials.

Demandsofthepensioners/retireesinclude:

100percentDAneutralisation forpre-2002retirees;

Improvementinfamilypension

Medicalinsuranceandamedicalbenefitscheme.

Pensionupdation.

Secondoptionstocompulsorilyretiredofficersandresignees whohaveputinapensionableservice

AIBPARC(AllIndiaBankPensioners&RetireesConfederation)isanorganisation oftheRetirees,fortheRetireesandbytheRetireesoftheBankingSector.

PresidentAIBPARC :KVAcharya

GeneralSecretary :S R SenGupta

ICICIbanklaunchesinstantcreditcardwiththelimitupto4lakhs.

Ithaslaunchedinstantcreditcardsenablingitssavingsaccountcustomerstogetacreditcardinstantly,inacompletelydigitaland

paperlessmanner

Thebankhasopenedupthisofferingtoafewlakhofpre-qualifiedcustomerswhocanapplyforthecardonlineandgeneratecard

detailsandstartshoppingonlineinstantly.

Availableround-the-clockandonalldays,thebankhasopenedupthecardwithacreditlimitofuptoRsfourlakhbasedonpre-

checkedbureauscoresItwillalsobeavailableshortlyon iMobile,theBank’smobile

bankingapplication

IDFCBankpartnerswithZETAfordigitalpaymentssolution.

PrivatesectorlenderIDFCBankhaspartneredwithdigitalpaymentscompanyZeta,tolaunch‘IDFCBankBenefits’- apaymentsolutionforcorporates thatdigitises employeespendsand

claims,makingtheprocesssimple,real-timeandpaperless.

Theend-to-enddigitalsolutioncomprisesanIDFCBankBenefitsCardandZetaappwhichintegratesthefullsuiteofallowancesandreimbursementsofferedbyanemployerintoone

preloadedcard.

EmployeescanalsoaccesstheBenefitsCardviatheZetaapponmobileorweb.Thisenablesthemtotrackspends,entitlementlimitsandsubmitclaims,digitally,whileon-the-move.

CEOANDCO-FOUNDERZETA:Bhavin Turakhia

CTOANDCO-FOUNDER:Ramki Gaddipati

PNBintroducesBiometricattendanceregister.

PunjabNationalBank(PNB)hasintroducedabiometricattendanceregisterintheplaceoftheexistingsystemofsigningattendanceintheattendanceregister.

Thenewsystemofmarkingattendancewillbeimplementedinbranches/officeswithimmediateeffect,thecircularissuedon3rd August.

Thebiometricattendancedevicewillcapturetheattendancealongwiththetimeofmarkingtheattendance.

Canara Bank launches two new digital services.

Thetwoservicesare:Bharat QR (Quick Response) isforpaymentsettlementatmerchantlocations.

Thefirstserviceisamobileapplication,whichenablesamerchanttoacceptpaymentsassettlementforsaleofgoodsorservices.

"MerchantsenrolledbyCanara bank willbeallottedaQRcodeinlinewiththeBharatQRcodestandards.Asthesolutionisinteroperable,customersofany bank canmakethepaymentusingthe

mobilebankingfacilityoftheirbank.The second product (BBPS), aninitiativeoftheReserve Bank ofIndia(RBI)andmanagedbytheNational

PaymentsCorpofIndia(NPCI),offersbillpaymentservicestothebank'snetbankingcustomerswithnetworkofagents.

”Bankenabled144billerscoveringtelephone,electricity,water,gassupply,DTH(direct-to-home)andmobilenetworksamongothers.

The bank isallowingitscustomerstopaythebillsatzerocost.

Thegovernmenthasseta25billion digital transactionstargetbytheendofthisfiscalyear(2017-18)forallthebanksacrossthecountry.

Flipkarthasbecomethethirdmostfundedprivatecompanyglobally.

Withthe$2.4billionitjustreceivedfromJapanesetechnologyandtelecomgiant SoftBank,Flipkarthasbecomethethirdmostfundedprivatecompany

globally.

Thehomegrowne-commercecompanyhastodateraisedalmost$7billionincapital,higherthanthatraisedbyglobalbehemothslikeonlinehouserentalaggregatorAirbnb ($3.3billion)andmobilephonemakerXiaomi ($1.4billion).

Thetoptwoarebothridehailingplatforms— Chinabased Didi Chuxing andUSbasedUber.

InApril,Didi Chuxingraised$5billionandincreaseditstotalfundraiseto$15billion,overtakingUber thathasraised$12.9billion.

Inthetop10,fourareride-hailingplatforms,theothertwobeingSiliconValley-basedLyft andIndia'sOla.

Flipkartistheonlye-commercecompanyinthetop10.TheFlipkartfundingreaffirmsthefaithofglobalplayerslikeSoftBank,TigerGlobal,eBay,andMicrosoftinIndian

companies.

Invaluation,Flipkartstandsattheninthpositionwithabout$15billion.Uberisthemostvaluedcompanyat$68billion,followedbyDidi Chuxingat$50billion,andXiaomiat$46

billionSoftBank:

CEOandfounder:MasayoshiSon

SBIgivesleg-uptoCSRinitiatives,adopts50villages.

Thenation'slargestlender StateBankofIndia launcheda CSR initiative, SBI GramSeva,whichwillworkintheareasofhealth,education,environmentandrural

infrastructure

The SBIFoundation willidentifyandpartnerwithNGOstocarryoutCSRinitiativesunderwhichitadoptfivevillageseachfrom10villagepanchayats with

eachvillagegettingaroundRs2.40croreoverthenextthreeyears

SBIthenChairpersonArundhatiBhattacharyahas mentionedthat10grampanchayatscomprisingof50villagesinsixstateshavealreadybeenadopted,and

thebankplanstoadopt100grampanchayatsinthenextthreeyears.

CityUnionBankoffersinstantcreditcards

Thebankintroducedtheoptionofan“instantcreditcard”forfreeforitsNetbankingcustomers.

AccordingtotheBanksourcesabout80customershadgeneratedacreditcardonDay1.

Allthatacustomerhastodoislogontohis/hernetbankingaccountandseekacreditcard.Only,thecustomermusthaveafixeddepositwiththebank

The customer will be allowed a credit limit of up to 80 per cent of the deposit or a maximum of ₹3 lakh.

OncapturingthePDFimageofthecard,thecustomercangoonlineshoppinginstantly.CUBhastied-upwithMasterCardfortheinstantcreditcard.

CityUnionBankHQ:Tamilnadu

CEO: Dr.N.Kamakodi

Aadhar mustforsubsidised farmloans:RBIReserveBankofIndia(RBI)

Inlinewiththegovernment'spolicy,theRBIsaidfarmerscanavailofshort-termcroploansofuptoRs3lakhatsubsidised interestrateof7%

thatcouldgodownto4%onpromptrepayment.

TheRBIhasalsoannouncedaninterestsubvention(subsidybygovernment)of2%forthefirstyearonloansthathavebeenrestructured

followingnaturalcalamities.

Toensurehassle-freebenefitstofarmersundertheInterestSubventionScheme,thebanksareadvisedtomake Aadhaar linkagemandatoryfor

availingofshort-termcroploansin2017-18,"theRBIsaid.

InterestSubventionScheme

TheUnionCabinetchairedbythePrimeMinisterShri NarendraModihasapprovedtheInterestSubventionScheme(ISS)forfarmersfortheyear2017-18.

ThiswillhelpfarmersgettingshorttermcroploanuptoRs.3lakhpayablewithinoneyearatonly4%perannum. TheGovernmenthasearmarkedasumofRs.20,339crore

forthispurpose.

TheinterestsubventionwillbegiventoPublicSectorBanks(PSBs),PrivateSectorBanks,CooperativeBanksandRegionalRuralBanks(RRBs)onuseofownfundsandto

NABARDforrefinancetoRRBsandCooperativeBanks.

TheInterestSubventionSchemewillcontinueforoneyearanditwillbeimplementedbyNABARDandRBI.

Thesalientfeaturesoftheschemeareasfollows:

TheCentralGovernmentwillprovideinterestsubventionof5percentperannumtoallpromptpayeefarmersforshorttermcroploanupto oneyearforloanupto Rs.3lakhs

borrowedbythemduringtheyear2017-18.

Farmerswillthushavetoeffectivelypayonly4%asinterest.Incasefarmersdonotrepaytheshorttermcroploanintimetheywouldbeeligibleforinterestsubventionof2%as

against5%availableabove.

TheCentralGovernmentwillprovideapproximatelyRs.20,339croreasinterestsubventionfor2017-18.

Inordertogiverelieftosmallandmarginalfarmerswhowouldhavetoborrowat9%forthepostharveststorageoftheirproduce,theCentralGovernmenthasapprovedaninterestsubventionof2%i.e.aneffectiveinterestrateof7%forloansupto 6months.

Karur Vysya BankinauguratesAADHAARenrolmentcentreinChennai

TheUniqueIdentificationAuthorityofIndiahadadvisedcommercialbankstoprovideAadhaarenrolmentandupdation facilityatvariousbranchesinitsJuly13notification.

Karur Vysya Bankidentifiedthebranchesandand ensuredearlyimplementationoftheservice.KVBisthefirstprivatesectorbanktoprovidethisserviceinthecountry,the

banksaidinarelease.

UniqueIdentificationAuthorityofIndia,AssistantDirectorGeneral,DMGajareinauguratedthefirstEnrolmentCentreattheNelsonManickam Roadbranchata

functionhere.

Karur Vysya Bank planned to expand the service to 75 more branches across the country.

AxisBanktowaive12EMIsonhomeloansunderShubh Aarambh scheme.

Inabidtofortifyitsfootprintintheaffordablehousingsegment,AxisBank— India’sthirdlargestprivatesectorannouncedthelaunchofanewhomeloanproduct– calledShubh

Aarambh Home.

Underthisscheme,borrowersapplyingforloansuptoRs30lakhwillbeabletoavailthe benefitof12EMIs’waiver.

Customerswithregularrepaymentwillget12EMIswaived– 4EMIseachafter4th,8thand12thyearfromthedateoffirstdisbursement.TheeffectofEMIwaiverwillbegivenin

theformofreductioninthetenureofhomeloans.

Theloanscanbeusedtopurchaseanunderconstruction/ready/resalehouse,apartfromself-constructionandplotplusconstruction.Customersalsohavetheoptiontotransfer

anyexistinghomeloanstoAxisBankwithoutanyadditionalcost.

NABARDApprovesRs1,350-crLoantoRajasthanGovernment

TheNational Bank ofAgricultureandRuralDevelopment(NABARD)hassanctionedaloanassistanceofRs1,349.55croretothe Rajasthan government forcreationofruralinfrastructureinthestateundertheRuralInfrastructureDevelopmentFund

(RIDF).

Thesanctionincludesassistanceforconstructionoftworuraldrinkingwatersupplyprojects,strengthening/rehabilitationof1,614ruralroadsandmodernisation ofthreemajorirrigation

projects.

AnamountofRs599.84crorehasbeensanctionedforrehabilitationof1,614roads,coveringall33districtsofRajasthan.

Rs469.54croreforprovidingpotablewatertopopulationof419villagesofJalore district.

Rs280.17croreforrehabilitationandmodernisation of3majorirrigationprojectslocatedinUdaipur,Banswara andDungarpur

districts.

TworegionalruralbanksrecordoverRs.150-crprofitinFY17

Ofthe56regionalruralbanks(RRBs)inthecountry,twonotchedupnetprofitofover₹150croreeachduring2016-17.Theseareamongthe49RRBsthatrecordedaprofitin2016-17.SevenRRBssufferedlossesduringtheperiod.

KarnatakaVikas Grameena BankandAndhraPragathi Grameena Bankrecordednetprofitofmorethan₹150croreduring2016-17.

AccordingtotheReserveBankofIndia’s‘ReportonTrendandProgressofBankinginIndia’,45ofthe56RRBsearnedprofitswithoutcarryingany

accumulatedlossesduring2015-16

ThethreeRRBspromotedbySyndicateBank— PrathamaBank,KarnatakaVikas Grameena Bank,andAndhraPragathiGrameena Bank— improvedtheirnetprofitover2015-16andemergedinthetopleagueofprofit-makingRRBsduring2016-

17.

TheseRRBscovered18districtsinthreeStateswithanetworkof1,563branches.

Attheend-March2017,RRBshad21,398branchesspreadacross676districtsand28States.

Dhanlaxmi Bank,DHFLPramerica tieupforbancassurance.

DHFLPramerica LifeInsuranceCompanyhassignedonKerala-basedDhanlaxmi Bankasitsbancassurancepartner,underwhichthelatterwill

distributeretailandgrouplifeinsuranceproductstoitscustomersacross260branchesinIndia.

Thebankanticipatesanannualincrementalincomeof₹20-30crorefromthisdistributionbusiness.Thisissignificantincomesincethebankhasjustcome

intoblack,postinganetprofitof₹7.99croreinthelatestquarter.

Withthistie-up,thecompanyisinastrongpositiontoconsolidateitspresenceinKerala,TamilNadu,AndhraPradeshandKarnataka.

IBPS PO / RBI Grade B/ SSC/ UPSC

Call 95-8004-8004729-10-594-76

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HDFCBanklaunchesall-in-oneDigiPoS machines

HDFCBank,thelargestmerchantpaymentacquirerwithover40percentmarketshare,launchedanall-in-oneoffering,DigiPoS Machine,thatoffersa

completesuiteofdigitalpaymentsolutions.

WithDigiPoS,amerchantcanuseasmanyas12variousdigitalpaymentoptionslike UPI,BharatQR,SMSPay,PayZapp,Tap&Pay,EMIsinadditionto

paythroughdebit/creditcardswiping.

Amerchanthastodoistoupdatehis/hermachinewithasoftwareatnocost,butaddedthatthenewsoftwarewillworkonlyonHDFCBank-issuedPoSmachines,butwillacceptanycardorappfromanybank/serviceprovider.

DigiPoS integratesallpopulardigitalpaymentmethodsinmerchantpaymentmachinesofferinggreaterconveniencetobothcustomersandmerchants.

Forexample,usingtheBharatQRorUPIoption,acustomercanscantheQRcodeandmakepaymentusingtheirsmartphones,ading similarly,SMSPayoptionontheDigiPOS canbeinitiatedbymerchantsinthehomedelivery

businesstofacilitatepaymentsthroughSMStocustomers.

Overthenextcoupleofmonths,theywillconverttheirentirenetworkofover4.5lakhPoS machinestoDigiPOS withoutanyinvestmentbythemerchants.Rao

saidthebankenjoysaround40percentmarketshareinthe1.3millionPoSmachinessegmentwith4.5lakhmachineswith3lakhmerchants.

Bankstopay3%IGSTongoldimports

Banksimportinggoldandpreciousmetalswillhavetopay3%taxundertheGSTwhichcanbeclaimedasinputtaxcredit,thegovernmenthassaid.

ClarifyingissuesonGSTongemsandjewellery throughFrequentlyAskedQuestions(FAQs),theCentralBoardofExciseandCustomssaidbanksdidnotpayanyVATon

importofpreciousmetalspreviously.

Theyonlypaidcustomsduty.However,underGST,“3%Integrated-GSTispayableonallimportsofpreciousmetalsinadditiontothebasiccustomsduty.IGSTpaidcanbe

takenasinputtaxcreditbythebanks.”

ItalsosaidbankswouldbeliabletopayIGSTonsuchimportsandnotanyoverseassupplierinwhichownershipisvestedduringmovementofgoldorsilver.

Ownershipisnotmaterialfordeterminingwhetheranimporthastakenplace.Banks,beingregisteredentities,wouldbeliabletopayIGSTonsuchimportsbutnottheoverseasentities

sincetheyarenoteffectingtheimport,”theFAQsaid.

Importofgoldattractsa10%basiccustomsduty.Ontopofthata12.5%countervailingduty(CVD)wasleviedpriortoGST.

SinceGSTsubsumedCVD,hencetheGSTrateongoldat3%hastobepaidatthetimeofimportsintheformofIGSTwitheffectfrom1July.

TheCBECalsoclarifiedonlevyofGSTwherethetotalvalueofagoldornamentisRs30,000,includingRs2,000asmakingchargesaying,“GSTispayableattherateof3%ofthetotaltransactionvalueofjewellery,whetherthemakingchargeisshownseparatelyornot”.

ChairmanCBEC:Vanaja N.Sarna

Govt.notifieschangesinBankingRegulationAct

ThegovernmenthasnotifiedtheBankingRegulation(Amendment)Actunderwhichitcanauthorise theRBItoissuedirectionstobankstoinitiateinsolvencyresolutionprocessto

recoverbadloans.

Thebankingsectorissaddledwithnon-performingassets(NPAs)ofoverRs8lakhcrore,ofwhichRs6lakhcroreiswithpublicsectorbanks(PSBs).

ThegovernmentinMayhadpromulgatedanordinanceauthorising theReserveBankofIndia(RBI)toissuedirectionstobankstoinitiateinsolvencyresolutionprocessundertheInsolvency

andBankruptcyCode,2016.

Followingtheordinance,theRBIhadidentified12accountseachhavingmorethan Rs. 5,000croreofoutstandingloansandaccountingfor25percentoftotalNPAsofbanksforimmediate

referralforresolutionunderthebankruptcylaw.

TheloandefaultersidentifiedbytheRBIinclude,Essar Steel,BhushanSteel,ABGShipyard,Electrosteel andAlok Industries.

UndertheBankingRegulation(Amendment)Act,2017,theRBIcanissuedirectionstobanksforresolutionofstressedassets.

TheRBIcanspecifyauthoritiesorcommitteestoadvisebanksonresolutionofstressedassets.ThemembersonthecommitteeswillbeappointedorapprovedbytheRBI.

ThebulkoftheNPAsareinsectorssuchaspower,steel,roadinfrastructureandtextiles

IRDAIlaunchescentraldatabaseofinsurancesalespersons.

TheInsuranace RegulatoryandDevelopmentAuthorityofIndia(IRDAI)haslaunchedaCentralDatabaseofallInsuranceSalesPersonsinthecountry.

Christined as`Envoy’,thedatabasewillesnure thatalllicensedinsurancesalespersonsworkingforinsurersandintermediariesincludingentitiessuch

asinsuranceagents,brokerqualifiedpersons,specifiedpersonsofcorporateagents,authorised verifiersofwebaggregators,pointofsales

persons(POS)etcdonotworkwithmultipleinsurersandintermediariesinthesamebusinesscategory

Atthepresentstage,EnvoycoversPOS,specifiedpersonsofcorporateagents,qualifiedpersonsofinsurancebrokersandauthorised verifiersofwebaggregators.

AccordingtoIRDAI,thenextphase,tobetakenupshortly,willcoverallremainingcategoriessuchasindividualagentsandinsurancemarketingfirms.

Thedatabasealsoprovidesasearchfacilityforinsurersandinsuranceintermediarieswherebyanapplicantinsurancesalesperson'sdetailsarequeriedforamatchinthe

database.

AppointmentofsuchapersonbytheinsurerorinsuranceintermediaryshallbetakenuponlyafterensuringthattheApplicantdoesnotalreadyfigureinthe

database.

IRDAIChairman:T.S.Vijayan

Canara HSBCOrientalLifeInsuranceCompany(CHOICE)launches‘PoS-EasyBima Plan

Canara HSBCOrientalBankofCommerceLifeInsuranceCompany(CHOICE)hascomeupwitha‘Point-of-Sale’producttargetedatthemass-marketsegment.

Theproduct— ‘PoS - EasyBima Plan’— isthefirstPoS productforthecompanyandisapureterminsuranceplanthatnotonlygiveslifecoverbutalsoreturnsallpremiumspaid

duringthepaymenttermonsurvivaltillmaturity

Wehaveworkedatmakingthebuyingprocessverysimpleasthisjustrequiresaone-stepidentificationofthecustomerandfillingupofasimpleproposalform.

Theaffordablepremiumsstartfrom₹1,000annuallyandthereisinbuiltdoublelifecoverincaseofaccidentaldeath.

WhilethisproducthasinitiallybeenlaunchedthrougharegionalruralbankofCanara Bank,itwouldbeavailableinthebankbranchesofCanara Bank

andOrientalBankofCommerce(OBC)inthenexttwomonths

Ujjivan SFBreceivesscheduledbankstatusfromRBI.

Ujjivan SmallFinanceBankLtdisawholly-ownedsubsidiaryofUjjivan FinancialServicesLtd,hasbeenincludedinthesecondscheduledtotheRBIAct1934.

"Thisgrantsthe'ScheduledBank'statustoUjjivan SmallFinanceBank'fromthedateofnotification.

WiththisUjjivan SmallFinanceBankcanissuecertificateofdeposits.

Ujjivan SFBcommenceditsoperationsasaSmallFinanceBankwitheffectfromFebruary1,2017.

MD&CEOUjjivan SFB:Samit Ghosh

Freyr EnergytiesupwithAxisBank

SolarenergyservicescompanyFreyr EnergyhastiedupwithAxisBanktooffertermloansrangingfrom₹5lakhto₹50lakhfortenuresuptofiveyears,for solarrooftopinstallationsin

Telangana andAndhraPradesh.

TheloanswillbegiventoMSMEsandself-employedindividualstoinstallFreyr rooftopsolarplantsforindustrialandcommercialpurposes.

TheFreyr SunPro appissaidtoeliminatethecomplexityinvolvedinsystemdesign,pricingandgeneration.

Overthepastthreeyears,Freyr hasinstalledover800solarsystemsacross14StatesinIndiaandGhana.

Cofounder&MD:Saurabh MardaCofounder: Radhika Choudary,

SEBIbansOrionCapital,OrionBrokingfrommarketsfor10yrs

MarketsregulatorSebitodaybarredOrionCapitalaswellasOrionBrokingandtheirpartnersfromthesecuritiesmarketsfor10years.

Itfailedtoredressseveralinvestorgrievancespertainingtonon- settlementoffundsduetotheclients.

Thenatureofinvestorcomplaintsreceivedagainstboththefirmsarepredominantlyonnon-settlementofthefundsandsecuritiesandbalancesduetotheirclients.

TheclaimamountismorethanRs6croreagainstOrionCapitalandoverRs4croreagainstOrionBroking.

Besides,thetwoentitiesclosedtheirbusinesswithoutanypriorintimationtotheiraffiliatedexchangesortotheir

clients

Byindulginginsuchactivities,thetwofirmsandtheirpartnershavefailedtoactinaccordancewiththerequirementsofthestockbrokersregulations

BankOfIndiaslashesinterest

PubliclenderBankofIndiahasreducedinterestrateonsavingsbankaccountsby50basispointsto3.5percentondepositsofuptoRs50lakh.

However,thebankwillcontinuetopay4percentinterestondepositsofaboveRs50lakh

Thisistwotiersavingbankrate.

OnJuly31,SBIslashedinterestrateonsavingsaccountdepositsby50basispointsto3.5percentonbalanceofRs1croreandbelow.

Otherlenders,includingprivateonessuchasHDFCBankandAxisbank,havefollowedsuit.

Earlierthismonth,AxisBankhadreducedinterestrateonsavingsbankaccountsby50basispointsto3.5percentfordepositsuptoRs50lakh.

AnotherPSUlender,BankofBarodahadslashedtherateto3.5percentondepositsofuptoRs50lakh.

KarnatakaBanktoohastweakedtherateonsavingsbankaccounts.

CentralBankofIndia,DenaBankcutsavingsinterestrates

InafilingtotheBSE,CentralBankofIndiasaidthatitwillnowpay3.50percentinteresttocustomershavingsavingsdepositsofuptoRs50lakh.

WhilethosehavingbalanceoverRs50lakhwillcontinuetoenjoythe4percentinterestrateontheirsavings

DenaBankinastatementsaidthatithascuttheinterestrateonsavingsaccountdepositsuptoRs25lakhby0.5percentagepointto3.50percentfromexisting

4%.

FordepositsaboveRs25lakh,theinterestratewillremainunchangedat4percentperannum

Shri.RajeevRishi,Chairman&ManagingDirectorofCentralBankofIndia.

CEODenaBank: Shri.AshwaniKumar

ICICIBankcutinterestrateonsavingsaccountby0.5%

Inanoticetothestockexchangethebanksaidithadcutthe interestrate ondepositsbelowRs.50lakhto3.5%.

TheinterestrateonsavingsbankaccountswithdepositsofRs50lakhandaboveremainsunchangedat4percent.

HDFCBankLtdalsocutinterestratesonmostofitssavingsaccountsto3.5percentfrom4percent

CustomerswithsavingsbankaccountbalanceofRs5million($77,924.10)andabovewillcontinuetoearninterestat4percentperannum.

YesBankcutssavingsaccountinterestratebyupto1%.

PrivatesectorlenderYesBankreducedtheinterestrateonsavingsbankaccountsby1percentto5percentfordepositsoflessthanRs1lakh.

However,thebankwillcontinuetopay6percentinterestondepositsofoverRs1lakhandlessthanRs1crore.

Thebankhasalsoslashedinterestrateonsavingsaccountsto6.25percentfromexisting6.5percentfordepositsoverRs1crore.

YesBankisthefifthlendertoreducesavingaccountinterestrateaftermarketleaderStateBankofIndiabeguntheprocessofreducingtheinterestrate

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