Bharatiya Mahila Bank Included in Second Schedule to RBI Act 1934 (1)

7/25/2019 Bharatiya Mahila Bank Included in Second Schedule to RBI Act 1934 (1)

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Banking Current AfairsVolume 1

1.Bharatiya Mahila Bank included in second scheduleto RBI Act 1934

Bharatiya Mahila Bank (BMB), Indias frst all-women bank, has been included in thesecond schedule to the RBI Act 1!"# $ith the inclusion in the second schedule orcommercial bank cate%ory, the bank has become eli%ible &or loans &rom RBI on bankrate and also %ets membershi' o& clearin% houses# urthermore, it assures that anyactiity o& the bank would not adersely a*ect the interests o& de'ositors#BMB has been in e+istence since oember .1! which be%an with a seed ca'ital o&Rs 1,... crore# /o &ocus on the bankin% needs o& women and 'romote economicem'owerment is one o& the main ob0ecties o& BMB#At 'resent, the loan 'ort&olio o& the BMB is about Rs .-. crore# It o*ers loan to %irlchild at a concessional rate which is 12 lower than the normal rates#

# 3er&ormance ratin%s o& Banks customer serices to bemade 'ublic &rom .14

rom .14, 'er&ormance ratin%s o& Banks on customer serices will be 'ut in 'ublicdomain by Bankin% 5odes 6tandards Board o& India (B56BI)#B56BI is ratin% banks on customer serices on 4 'arameters7

1# In&ormation dissemination# /rans'arency!# 5ustomer-centricity"# 8rieance redressal system

4# 5ustomer &eedback#B56BI rated " banks &or customer serice o& which only 4 scored hi%h ratin%s9 4were rated aboe aera%e9 1: aera%e9 and one below aera%e# /he ratin%s will bemade 'ublic in .14# ;oweer, banks are not allowed to use these ratin%s tosolicit business#5ode o& Banks 5ommitment to 5ustomers

/he 5ode o& Banks 5ommitment to 5ustomers is a 5ode o& 5ustomer Ri%hts, whichsets minimum standards o& bankin% 'ractices that member banks hae to com'lywith when they deal with indiidual customers# /he 5ode 'roides 'rotection tocustomers and e+'lains the manner in which banks are su''osed to deal withcustomers in their day-to-day o'erations#

Bankin% 5odes 6tandards Board o& India (B56BI)/he Resere Bank o& India established B56BI in ..: to ensure that the commonconsumer o& fnancial serices &rom the bankin% industry %ets what he


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6tar tradin% houses = bi% im'orters and e+'orters has been 'ermitted by the RBI toim'ort %old under its e+istin% .7. scheme# /hus &ar, the &acility was aailable toselect banks only and other bi% entities like star tradin% houses were &orbidden &romim'ortin% the yellow metal#

As 'er the e+tant rules, im'orters can buy %old, on a condition that .2 o& it is

e+'orted as fnished 'roducts# In >uly .1!, the RBI had im'osed seere restrictionson %old im'orts in order to curb sur%in% 5urrent Account ?efcit (5A?) and thedeclinin% ru'ee# /he central bank had tied im'orts with e+'orts and 'rescribed a.7. &ormula#

As 'er the .7. scheme, an im'orter has to ensure that at least .2 o& eery lot o&im'orted %old is e+clusiely made aailable &or e+'orts as fnished %ood and thebalance &or domestic use#

/he RBI has also 'ermitted banks to 'roide %old metal loans to domestic 0ewellerymanu&acturers, out o& the eli%ible domestic im'ort @uota o& .2#

4. All anks need to install !talking A"Ms# $rom %uly 1& '(14) RBI

As 'er the directions o& the Resere Bank o& India (RBI), all banks will be

re@uired to make all new A/Ms installed &rom >uly 1, .1" as talkin% A/Ms

with Braille key'ads#

As 'er RBIs %uidelines to all banks7

All new A/Ms installed &rom >uly 1, .1" should be talkin% A/Ms with

Braille key'ads# Banks should lay down a roadma' &or conertin% all e+istin% A/Ms as

talkin% A/Ms with Braille key'ads# /he same may be reiewed &rom'eriodically by the 5ustomer 6erice 5ommittee o& the Board#

Banks should 'roide ma%ni&yin% %lasses in all bank branches &or the

use o& 'ersons with low ision, wheneer they need &or 'er&ormin%

bankin% transactions with ease# A notice about the aailability o&

ma%ni&yin% %lasses and other &acilities aailable &or 'ersons with

disabilities should be dis'layed at a 'rominent 'lace#4# "he Reser*e Bank o$ India +RBI, and the ne-ly created state

"elanganaC#

hae inked a 'act accordin% to which the RBI shall carry on the %eneralbankin% business o& the 8oernment o& /elan%ana, mana%e its ru'ee 'ublic

debt and act as the sole a%ent &or inestment o& 8oernments &unds# /he

a%reement is consistent to the Andhra 3radesh Reor%anisation Act, .1"#

. RBI to launch /lastic notes in '(10


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As 'er Resere Bank o& India (RBI) 8oernor Ra%huram Ra0an, 3lastic

currency notes will be launched in .14 a&ter feld trial which is likely to be

conducted in the latter hal& o& .1"# /he 'ilot testin% would be conducted in

*e cities- 2ochi& Mysore& %aiur& Bhuanes-ar and himla# Dne billion

'lastic notes o& Rs#1. denomination will be released in the feld trial in these

cities chosen &or their %eo%ra'hical and climatic diersity# 3lastic currency

notes hae an aera%e li&e s'an o& about 4 years and are diEcult to

counter&eit# Also, these notes are cleaner than 'a'er notes#

5. Bharti Airtel raises aout 6' illion in 7ual Currency Bond sale

Indias lar%est telecom com'any Bharti Airtel raised around F billion in a

dual currency international bond sale# It is the lar%est debt issuance by a

domestic com'any till date# Bharti sold dual currency dollar and euro bonds

to raise the money which will be used &or re'ayment and refnancin% o&

e+istin% &orei%n currency debt# It is a frst dual currency issuance by anIndian issuer and also lar%est &und raisin% e+ercise at a sin%le time by an

Indian issuer#

# 8hat are 7ual Currency Bonds

?ual 5urrency Bonds 'ay interest cou'ons in one currency and 'rinci'al

redem'tion &or a f+ed sum in a second currency, o&ten the dollar#

9. /% :ayak committee

An RBI committee headed y $ormer chairman o$ A;is Bank /% :ayakhas said in its reort that the go*ernment should ring do-n its

stake in /ulic ector Banks +/Bs, to elo- 0(n e;isting ?o*ernance attern o$ /Bs)

5riticiGin% the way in which the H 36Bs are bein% currently %oerned, the

'anel blamed seeral e+ternally im'osed constraints like dual re%ulation

by the RBI and fnance ministry and e+ternal i%ilance by a%encies like the

55 and 5A8 &or the distress o& banks# /he %oernment should reduce its

stake in these banks to less than 4.2, alon% with certain other e+ecutie

measures &or the remoal o& these constraints# /he 5entre should distance


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itsel& &rom the %oernance o& banks and the Bank ationaliGation Acts o&

1:. and 1., alon% with the 6BI Act and 6BI 6ubsidiary Banks Act, be

re'ealed as it fnds the selection 'rocess &or directors is increasin%ly

com'romised#

', >n ?o*ernment@s o-ers in relation to the go*ernance o$ anks

All banks should be incor'orated under the 5om'anies Act and a Bank

Inestment 5om'any (BI5) be set u' to which the %oernment trans&ers its

holdin%s in banks# BI5 should be %ien 'ower o& %oernance o& the banks#

Jntil BI5 becomes &unctional, a Bank Boards Bureau com'risin% &ormer

senior bankers should adise all board a''ointments, includin% those o&

chairmen and e+ecutie directors#

3, >n e;isting uman Resource /olicy in Banks

5han%e in human resource 'olicy to encoura%e youn%er 'eo'le 0oinin% to'

mana%ement# 3riate sector banks should be 'roided a more leel-'layin%

feld with the 'ublic sector counter'arts#

4, >n go*ernance issues in ri*ate sector anks

Dwnershi' constraints that could misali%n the interests o& shareholders with

those o& to' mana%ement must be remoed# Allowin% lar%er block

shareholders %enerally enhances %oernance#

0, >n distressed anks

?istressed banks, 'riate e@uity &unds, includin% soerei%n wealth &unds,

should be allowed to take control o& stakes o& u' to ".2#

1(. Ru/ay& India@s indigenous card ayment net-ork

launched

6creenshotK1Ru'ay, Indias own 'ayment %ateway was launched to com'ete

with networks such as isa and Mastercard# /he indi%enous network will workon A/Ms and merchant outlets and hel' in brin%in% down cash transactions#

/he Ru3ay is a blend o& two terms = LRu'ee and L3ayment# It has been

deelo'ed by the ational 3ayments 5or'oration o& India (35I) and is bein%

used by certain banks such as I5I5I, 6tate Bank o& India, 3un0ab ational

Bank, amon% others, &or clearin% and settlement# /he Ru3ay, which works on

three channels = A/Ms, 3oint o& 6ales (3o6) and online sales, is the seenth


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such 'ayment %ateway in the world# A ariant o& the 're-'aid Ru3ay card

would be launched by IR5/5 soon, which will hel' in bookin% railway tickets#

11. RBI allo-s minors o*er 1( years to oerate ank

accounts

As 'er the %uidelines issued by the RBI, minors above 10 yearso& a%e

hae been allowed to o'en and o'erate inde'endently sain%s bank account

and use other &acilities like A/M and che@ue books# /he central bank has

taken this ste' with a iew to 'romote fnancial inclusion and brin%

uni&ormity in o'enin% o& such accounts in banks# arlier, minors were allowed

to o'en f+ed and sain%s de'osit bank account with mothers as %uardian#

As 'er the modifed %uidelines by RBI7

All minors can now o'en a sain%s


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13. Rising :/As is making ulic sector anks unt

$or ri*ate /ro*ident und deosits

6ur%in% on-3er&ormin% Assets (3As) hae rendered 'ublic sector banks

such as 6tate o& India (6BI), 3un0ab ational Bank (3B) and 5anara Bank

unft to take de'osits &rom non-%oernment 3roident unds (3)#As per

the current rules governing investments by PFs, non-government

Provident Funds (PF) are barred from being deposited in a

commercial bank in case the PAs of that bank e!ceed "# of net

advances# /he Indian Banks Association (IBA) has re@uested the Jnion

inance Ministry to rela+ the norms 'ertainin% to de'osits by non-

%oernment 'roident &unds and %ratuity &unds in scheduled commercial

banks#

Conditions anks are reuired to meet $or taking /s deosits7

5ontinuous 'roftability &or immediately 'receedin% three years

Maintain minimum ca'ital ade@uacy o& 2

;ae net 3As o& not more than 2 o& net adances

Maintain minimum net worth o& not less than Rs .. crore

14. RBI releases Reort o$ Dmesh Bellur headed

?IR> Ad*isory ?rou

/he Resere Bank o& India (RBI) released, on its website &or 'ublic comments,

the Re'ort o& the $%&' ($overnment %nternal &evenue 'rder) Advisory

$roup# $%&' Advisory $roup ($A$) as constituted by the &% in

'ctober "01*, under the chairmanship of Prof+ mesh ellur, %ndian

%nstitute of echnology, ombay to implement a national $%&'-

based %ndian ill Payment .ystem+

/he 'anel has recommended a mechanism &or centralised bills 'ayment

system in India, mainly by layin% out or%anisations7

Bharat Bill 3ayment 6erices (BB36)

Bharat Bill 3ayment D'eratin% Jnits (BB3DJs)

8hat is the Model $or an=India centraliEed ill ayment in India as

suggested y the Dmesh Bellur headed ?IR> Ad*isory ?rou


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/he 'an-India centraliGed bill 'ayments in&rastructure would hae two ty'es

o& entities7

Bharat Bill /ayment ystem +BB/,- $ill set standards and conduct o&

centralised 'ayment, clearin% and settlement 'rocess

Bharat Bill /ayment >erating Dnits +BB/>Ds,- $ill act as o'eratin%

unit(s)

/he model would thus be a -tier structure with a sin%le standard settin%

body (BB36) with 'ayment and settlement &unctionalities


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inde'endent body &or recommendin% benchmark &orei%n e+chan%e rate in

order to aoid any 'otential mani'ulation by the bankers#

/he Bhaskar 5ommittee had su%%ested Indian money and currency markets

should moe their benchmarks towards transaction-based &rom 'oll-based in

an attem't to comb out mani'ulation#

In .1!, RBI had a''ointed a committee under the chairmanshi' o& 3 i0aya

Bhaskar, +ecutie ?irector o& RBI, as it wanted to aoid issues caused by

the mani'ulation o& Hondon Interank >fered Rate +HI>B>R,and

e+chan%e rates all oer uro'e#

RBI has su%%ested IMM7A +i;ed Income Money Market and7eri*ati*es Association o$ India,and 7AI +oreign ;change

7ealers Association o$ India,to act as administrators to the Indian ru'ee,

interest rate, and &orei%n e+chan%e benchmarks, res'ectiely# In order to

de&eat any 'otential conNicts o& interest in the benchmark f+in% 'rocedure

ori%inatin% &rom the 'resent %oernance structure o& the IMM?A and ?AI

(which are industry nodal a%encies), RBI has su%%ested that an inde'endent

body, either indiidually or con0ointly, may be &ormed by the IMM?A and

?AI &or administration o& the benchmarks#

1J. Board o$ inancial uer*ision +B, clears

roosal that RBI -ill conduct an indeendent audit

o$ ig cororates declared $raudulent y anks

ollowin% a se@uence o& inesti%ations by the banks themseles in hi%h-

'rofle cases iG# ?eccan 5hronicle, Oin%fsher Airlines, etc# which yielded

ery little, the RBI has now decided to itsel& inesti%ate such hi%h-'rofle

&raud cases# /he Board o& inancial 6u'erision (B6), chaired by RBI

%oernor Ra%huram Ra0an, has cleared a 'ro'osal that RBI itsel& will now

conduct an inde'endent &orensic audit o& cor'orates who hae taken loan o&

more than Rs 1,... 5rore and are declared &raudulent by banks#


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19. 8hy RBI has taken this decision to itsel$ and

indeendently audit high role $raud cases

In 'ast &ew years, there has been a hu%e rise in the number o& cases o& bad

loans# "he ?ross :/As +:on=/er$orming Assets, K ad loans rior to

making ro*isions& $or year '(13 stood at Rs '4&3'1( Crores& u y

30< +L=o=L, Lear on Lear asis# ot only this, the number o& cases

re&erred to the 5?R (5or'orate ?ebt Restructurin%) has also %one hi%h in

near 'ast#

8hat is Board o$ inancial uer*ision +B, 8hat are the

unctions o$ Board o$ inancial uer*ision +B,

/he inancial 6u'erision &unctions are carried out by the Resere Bank o&India under the %uidance o& the Board &or inancial 6u'erision (B6)# Board

&or inancial 6u'erision (B6) is chaired by the 8oernor o& Resere Bank#

'(. RBI raises Rs '(&((( Crores in record auctionG India@s

iggest det auction e*er

RBI &ully sold the Rs .. billion (F!#!1 billion) worth o& 8oernment bonds on

/hursday A'ril 1:, .1", e+ecutin% the Indias bi%%est-eer auction#

6'eculations ran in market that Pi&e Insurance 5or'oration had bou%ht a

ma0or 'ortion o& the debt at the auction# Dn /hursday A'ril 1:, .1", the

Benchmark bond yield ended down 11 basis 'oints at #42, the bi%%est

sin%le-day &all since . >anuary, .1". "his -as India@s iggest det

auction e*er.

8hat are ?o*ernment Bonds

8oernment bonds or ?ated securities are lon% term 8oernment securities

with ori%inal maturity o& one year or more# /hese are tradable instruments

issued by the 5entral 8oernment or the 6tate 8oernments# /he 6hort term8oernment securities are called /reasury bills (maturities o& less than one

year)# In India, the 5entral 8oernment issues both, /reasury Bills and Bonds

(?ated 6ecurities) while the 6tate 8oernments issue only Bonds (?ated

6ecurities)# /he 6tate 8ot Bonds are called the 6tate ?eelo'ment Poans

(6?Ps)# 3ractically, 8oernment securities carry no risk o& de&ault and, &or

this reason, are called risk-&ree %ilt-ed%ed instruments#


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o- are the ?o*ernment ecurities issued

8oernment securities are issued ia Auctions conducted by the Resere

Bank o& India# Auctions are conducted on the electronic 'lat&orm called the

e%otiated ?ealin% 6ystem (?6) Q Auction 'lat&orm#

'1. 8orld Bank roFects 0.5< gro-th $or India in

'(14=10

/he $orld Bank has 'ro0ected an economic %rowth rate o& 4#:2 in .1"-14

&or India# $orld Bank 'ro0ected an acceleration o& %rowth (&actor costs) in

.1" to "#2, &urther increase to 4#:2 in .14

"he International Monetary und +IM, had earlier $orecast that

Indian economy -ould reco*er $rom 4.4< gro-th in '(13 to 0.4< in

'(14. IM had also uoted e;ort cometiti*eness as grounds $or

otential gro-th re*i*al.

RBI cas 8ays and Means Ad*ances limit $or the ?o*ernment at Rs

30&((( Cr. er -eek $or the rst hal$ o$ L '(10

RBI has set the u''er limit &or the $MA ($ays and Means Adances) &or the

central %oernment at Rs !4,... crore 'er week &or the frst hal& o& the .14# I& the %oernment utilises :42 o& $MA limit, RBI may &urther actiate

&resh Notation o& market loans# /he second hal& limit will be f+ed in

6e'tember .1"# I& the 'reailin% circumstances demand, there e+ists

Ne+ibility with the RBI to reise the limits at any time a&ter discussions with

%oernment#

Interest rate on 8MA o*erdra$t) '< ao*e the reo rate

Minimum balance re@uired to be maintained by the %oernment with the

Resere Bank7

Dn ridays7 ot be less than Rs 1.. crore

Dn the date o& closure o& %oernments fnancial year7 ot be less than Rs

1.. crore on


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Dn >une !. (closure o& the annual accounts o& the RBI)7 ot be less than Rs

1.. crore on

Dther ?ays7 ot less than Rs 1. crore

?uration7

or 5entral 8oernment7 1. consecutie workin% days i#e# Derdra&ts beyond

1. consecutie workin% days will not be allowed#

8hat is 8MA +8ays and Means Ad*ances, and ho- this $acility is

utiliEed

ia an a%reement under 6ection 1A o& the Resere Bank o& India Act, 1!",

the RBI acts as a banker to arious 6tate 8oernments in India# At resent

all Indian tates +e;cet %ammu N 2ashmir@ and !ikkim@, ha*e

entered into such agreements -ith the RBI in order to undertake

general anking usiness in India +including ayments& receits&

collection& remittance o$ money& management o$ ulic det and

issue o$ ne- loans,. !%ammu N 2ashmir@ and !ikkim@ ha*e entered

into agreements -ith the RBI& >:HL $or the limited urose o$

managing their ulic det#

''. RBI grants !In=/rincile@ anking licenses to I7C and

Bandhan

RBI has %ranted in-'rinci'le bankin% licences to In$rastructure

7e*eloment inance Comany +I7C,and microfnance lender

Bandhan inancial er*ices Htd# /he declaration was made by RBI a&ter

nod &rom the lection 5ommission# RBI had sou%ht a %o-ahead &rom the

lection 5ommission 'rior to declarin% the awardees, as the model code o&

conduct is in 'lace in the run u' to the elections# hese are the /rst

licences to be aarded by &% since "00*-0+

RBI constituted Bimal >alan 'anel scrutiniGed the a''lications &or new bank

licences# /he e+ercise took a lon% time (around &our years) as there was a

debate oer the issue7 whether cor'orate houses and entities with e+'osure

to real estate should be %ien licences# " applicants, including &eliance

2apital, Aditya irla uvo, 34 Finance, etc+ ere amongst the

applicants ho ere left disappointed ith the decision by &%+


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/rior to this in=rincial aro*al& India has '5 ulic sector

anks& '' ri*ate sector anks and 0 RRBs +Regional Rural

Banks,.

8hat is the !in=rincile@ aro*al y RBI

he in-principle approval by &% is valid for '35 16 months+ ?urin%

this 1 month-'eriod I?5 and Bandhan inancial 6erices Ptd will hae to

meet all RBI rules and %uidelines in order to secure a 'ermanent licence to

start bankin% actiities#

"imeline)

1"7 3riate 6ector allowed to set u' banks9 licenses issued

.."7 /wo more Bank Picenses issued (6 Bank %ot one and Ootak Mahindra

Bank was allowed to conert itsel& into a bank &rom a fnance com'any)#

.117 -.11 Bud%et mentioned the need &or more licenses in 'riate

sector

.117 (Au%ust) ?ra&t 8uidelines issued

.1!7 (ebruary) inal 8uidelines issued

.1!7 (>uly) RBI inites a''lications9 4 as'irants a''ly

.1"7 (A'ril) RBI issues in-'rinci'le licenses to a''licants (In&rastructure

?eelo'ment inance 5om'any (I?5) and microfnance lender Bandhan

inancial 6erices Ptd#)

'3. Mo) India@s e;ternal det at 64' illion in

7ecemer& '(13

As 'er the @uarterly re'ort o& Ministry o& inance (Mo), Indias e+ternal debt

was at F "H billion Q includin% the %oernments debt o& F :H#" billion in

?ecember .1!# /he total e+ternal debt o& F "H billion showed an increase

o& F 1#1 billion oer the March-end leel#


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Hong term det) 6333.3 illion sho-ed an increase o$ J.1 < o*er

March& '(13 le*el.

hort=term det) 7eclined y 4.1 < to 69'.5 illion.

?o*ernment +o*ereign, e;ternal det) 65.4 illion& +15.9 < o$

total e;ternal det,

/he share o& J6 dollar denominated debt was the hi%hest in e+ternal

debt stock and stood at H!#H2, &ollowed by debt denominated in Indian

ru'ee (1#" 2), 6?R (:#1 2), >a'anese yen (4#. 2) and uro (!#1 2)# "he det has remained -ithin manageale limits as indicated

y the e;ternal det to ?7/ ratio o$ '3.3


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'0. India@s rst all=-omen ulic sector ank.

>Fecti*e7 ocus on the bankin% needs o& the women and 'romote

economic em'owerment# It will also address the %ender related issues and

will be hel'&ul in fnancial inclusion#

eaduarter7?elhi#

CM77 Jsha Ananthasubramanian#

ote7 /he BMB has 'lanned to increase the number o& branches to 4 by the

end o& .1"#

'. !2isan Card@ launched y A;is ank to $acilitate easy

agriculture lending to $armers through A"Ms.

6creenshotK/he 'riate lender bank, A+is Bank launched an electronic Oisan5ard on the Ru3ay 'lat&orm, throu%h which a &armer can withdraw u' to Rs# 1

lakh 'er day &rom Automated /eller Machines ( A/Ms)

/urose7 /o &acilitate easy a%riculture lendin% to &armers throu%h A/Ms#

lectronic 2isan Card

$ill be o*er to a%rarian customers on their cash credit cro' loan

accounts# ;el'&ul &or them to reduce the interest burden as the interest

'ayments start a&ter withdrawal o& the money# 3roides @ueue &ree, "S: disbursement &acility &or &armers# Allows them to use their loan limit by withdrawin% cash u' to Rs 1 Pakh

'er day, in the re@uired @uantum, as and when re@uired, thereby

reducin% their interest burden and ne%atin% the risk o& carryin% hi%her

olumes o& cash#

'5. 2otak Mahindra Bank link current accounts to

"-itter

/he 'riate lender bank, Ootak Mahindra launched a new current account

'roduct that will enable the account holders to undertake 1 serices iG#


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che@ue book re@uisitionin%, checkin% last &ew transactions, etc, and usin%

their /witter accounts#

# Dni*ersal Account :umer +DA:,#= -ill e ro*ided y

/> $rom >ct '(14

/he m'loyees 3roident und Dr%aniGation (3D) will 'roide 'ermanent

account numbers to its oer fe crore subscribers &rom Dctober, .1"#

3D is a statutory body o& the 8oernment o& India under the Ministry o&

Pabour and m'loyment# It administers a com'ulsory contributory 3roident

und 6cheme, 3ension 6cheme and an Insurance 6cheme# (;ead@uarters7

ew ?elhi)#

3ermanent or Jniersal Account umber (JA)

/urose)/o 'roide %reat relie& to those workers in or%aniGed sector who&re@uently chan%e 0obs, 'articularly, in the construction sector#

'9. Bank o$ India +BoI, launched Instant Money

"rans$er +IM", scheme

/he Bank o& India (BoI) launched an Instant Money /rans&er (IM/) scheme and

became the /rst state-run lender to allo ithdraal of funds to

individuals from its A7s ithout an account in the bank+In other

words, the IM/ scheme allows customers to withdraw cash without usin%

either debt card or credit card at BoIs IM/-enabled A/Ms#

Mechanism o$ Instant Money "rans$er +IM", scheme

Initiation by 6ender &or IM/7 By 'roidin% receiers mobile number, &our

di%its sender code, the IM/ amount and authorises the transaction &rom

either banks A/M or banks internet bankin%#

/he sender 'roides receiers name, address and mobile number to

the bank either on 6M6 or Internet bankin%# /he receier receies the notifcation o& IM/ on his mobile 'hone, alon%

with a &our-di%it 6M6 3in# /he sender se'arately communicates the &our-di%it sender code to the

receier# A&ter %ettin% these two 'ieces o& in&ormation, one &rom the sender and

the other on 6M6, the receier walks into the banks nearest IM/-

enabled A/M and withdraws cash by 'unchin% in the mobile number,

sender code, and 6M6 3in#


16/24

/he receier would receies 'artial details &or cash withdrawal on hisR rates /he J6 re%ulator, ederal ?e'osit Insurance 5or'oration (?I5) fled a

law-suit on 1H worlds lar%est banks, as these %lobal fnancial

institutions are accuse o& cons'irin% to mani'ulate the PIBDR interest

rate# /he J6 re%ulator stated that the mani'ulation caused substantial

losses to ! J6 banks that were shut down due to insolency durin%

and a&ter the .. fnancial crisis#

/hese %lobal fnancial institutions broke certain swa' contracts and

se'arately 'laned to ri% the PIBDR rate to which the contracts were

si%ned#


19/24

Banks that hae been sued in settin% the daily Pibor rate7 Bank o& America,

5iti%rou' and >3Mor%an 5hase o& the Jnited 6tates, 8ermanys ?eutsche

Bank and $estPB, Britains ;6B5, Barclays and Ployds banks, >a'ans

orinchukin Bank and Bank o& /okyo=Mitsubishi, 5redit 6uisse and JB6 o&

6witGerland, Royal Bank o& 6cotland, Royal Bank o& 5anada, and Rabobank o&

the etherlands#

Aout HIB>R +Hondon Interank >fered Rate, interest rate

/he rate at which banks in Pondon lend money to each other &or the short-

term in a 'articular currency# In other words, its an interest rate at which

banks can borrow &unds, in marketable siGe, &rom other banks in the Pondon

interbank market#

$orlds most widely used benchmark &or short-term interest rates#

A new Pibor rate is calculated eery mornin% by fnancial data frm /homson

Reuters based on interest rates 'roided by members o& the British Bankers

Association#

:ote)?I5 is an inde'endent a%ency created by the J#6# 5on%ress to

maintain stability and 'ublic confdence in the nations fnancial system by

insurin% de'osits, e+aminin% and su'erisin% fnancial institutions &or sa&ety

and soundness and consumer 'rotection and mana%in% receiershi's#

(;ead@uarters7$ashin%ton, ?#5#)#

30. Cricketer hikhar 7ha-an) Canara Bank@s Brandamassador

/he 'ublic sector lender, 5anara Bank announced cricketer 6hikhar ?hawan

as its brand ambassador#

>Fecti*e)/o %ear u' &or the ne+t 'hase o& bankin% with a s'ecial &ocus on

the countrys youth#

5anara Bank is not the frst 'ublic sector lender to name a cricketer as its

brand ambassador# or e+am'le- 5ricketer &ahul 8ravid has been ank

of aroda9s brand ambassador since "00#

3. RBI e;tends date o$ e;changing re='((0 notes

to %an 1& '(10

/he Resere Bank o& India (RBI) %ranted an additional nine months &or the

'ublic to e+chan%e currency notes 'rinted be&ore ..4, includin% Rs# 4..


20/24

and Rs# 1,... denominations, and set a deadline o& >anuary 1, .14# /he

a'e+ bank stated that the 'ublic can continue to &reely use these notes &or

any transaction and 'eo'le can unhesitatin%ly receie these notes in

'ayment, as all such notes continue to remain le%al tender#

RBI has adised banks to &acilitate the e+chan%e o& these notes &or &ull alueand without causin% any inconenience to the 'ublic#

3ost-..4 notes hae added security &eatures and hel' in curbin% the

menace o& &ake currency#

At 'resent, currency notes are issued in denominations o& Rs 4, Rs 1., Rs .,

Rs 4., Rs 1.., Rs 4.. and Rs 1,...#

:ote)arlier, RBI stated that a&ter March !1, .1", it will com'letely

withdraw all bank notes &rom circulation issued 'rior to ..4 and &rom A'ril

1, .1", the 'ublic will be re@uired to a''roach banks &or e+chan%in% these

notes#

35. India@s rst ost oOce sa*ings ank A"M inaugurated in

Chennai

/he Jnion inance Minister 3# 5hidambaram inau%urated the Indias frst 'ost

oEce sain%s bank A/M at the ;ead 3ost DEce in /hya%araya a%ar,

5hennai#

Aout /ost oOce sa*ings ank A"M

/he A/M would run on a trial basis &or si+ months# Db0ectie7 /o make the de'artment technolo%y-oriented# 3art o& an In&ormation /echnolo%y (I/) moderniGation 'ro0ect o& the

?e'artment o& 3osts# Rs ",. crore had been allocated &or the I/ modernisation o&

?e'artment o& 3osts in the interim bud%et &or .1"-14#

:ote)By March !1, .1", a total o& :.. more 'ost oEces will be coeredand all H,". 'ost oEces will be &unctional under 5B6 in another two years#

3J. ICICI Bank launched !ranch on -heels@ in >disha


21/24

I5I5I Bank Ptd# launched LBranch on $heels in Ddisha as 'art their fnancial

inclusion 'lans to 'roide bankin% serices in remote illa%es in the state

which are deoid o& bankin% &acilities#

ICICI Bank is the rst ri*ate sector ank to launch Moile Branch

-ith A"M

Aout !Branch on 8heels@ K moile ranch -ith an A"M=

irst-o&-its-kind initiatie by any 'riate sector bank in India# Db0ectie7 /o 'roide basic bankin% serices to the remote unbanked

illa%es in the state#

/he branch would be o'erated on a an# It will be stationed at s'ecifctimin%s o& the day in 're-identifed, unbanked illa%es at s'ecifed

locations# $ould be e@ui''ed with a 836 trackin% system, la'to's with !8

connections, P? /, a sa&e, a 'rinter, 'ublic announcement system,

an J Pam' that detects &or%ed che@ues, a note countin%-cum-

authentication machine that identifes &ake currency notes and a

uni@ue low-wei%ht A/M# D*ers a wide ran%e o& bankin% 'roducts and serices iG# sain%s

accounts, loans, cash de'osit


22/24

/he Indian Railways 5aterin% and /ourism 5or'oration (IR5/5) launched e-

$allet 6cheme to make 'ayment 'rocess &ast and to reduce transaction

&ailures due to bank 'ayment related 'roblems# (IR5/5 is a 'ublic sector

undertakin% o& the Ministry o& Railways)# At 'resent, one has to make the

'ayment &or the &are o& the ticket, while bookin% e-ticket, throu%h 5redit

card, ?ebit card or et bankin%#

Pe=8allet chemeP

A rollin% de'osit scheme wherein the customers will hae an account

with the IR5/5 and de'osit money to be used in &uture &or bookin% e-

tickets &rom its website (www#irctc#co#in)# ames o& all 'assen%ers booked on a &ully wait-listed e-ticket are

dro''ed at the time o& 're'aration o& reseration charts and &are is

re&unded automatically# In case o& ticket cancellation, the due re&und will be credited to the e-

$allet account ne+t day# Aailable &or 3A erifed users only# /here is no di*erence between e-tickets booked throu%h e-wallet

scheme or those booked throu%h other 'ayment o'tions aailable on

the website#

41. Interim Dnion Budget '(14=10

/he Jnion inance Minister 3# 5hidambaram 'resented the Interim Bud%et

.1"-14 in the Pok 6abha with an estimated 'lan e+'enditure o& Rs# 4,44,!

crore and non-'lan e+'enditure o& Rs# 1,.:, crore# +cise duty on cars,

two-wheelers, 6Js and ca'ital %oods and consumer durables has been

slashed to boost the manu&acturin% and %rowth# /here is no chan%e in

income ta+ rates#

Imortant oints o$ the Dnion Budget '(14=10


23/24

ocus7 Dn manu&acturin% and manu&acturin% e+'orts# iscal defcit &or 1" to be contained at "#H2 o& 8?39 14 tar%et at

"#1 2 1" 5urrent Account ?efcit seen at F"4 bn# 1" T! U T" 8?3 %rowth to be at least 4#2#

A%riculture credit will cross F "4 billion a%ainst F"1 billion in .1-1!# ood %rain 'roduction estimated at H! million tons in .1!-1" 3ro'osed a enture ca'ital &und with an initial ca'ital o& Rs# .. crore

to 'romote entre'reneurshi' amon% scheduled castes and scheduled

tribes# o chan%e has been introduced under the ta+ laws but a chan%e has

been introduced &or the indirect ta+es# Bud%etary su''ort to railways increased &rom Rs H,... crore to Rs

,... crore .1"-14#

Ministry=-ise allocations $or Qagshi schemes7

Rs#, .. crore rural deelo'ment, Rs#H:, ! crore &or human

resource deelo'ment, Rs#!!, :4 crore &or health and &amily wel&are,

Rs#1, ... crore &or women and child deelo'ment, Rs#14, H. crore

drinkin% water and sanitation# ood subsidy will be Rs 1, 14,... crore &or im'lementation o& ational

ood 6ecurity Act#

Dne -rank-one-'ension scheme &or de&ense 'ersonnel &rom .14# ?e&ense allocation increased by 1.2 to Rs #" lakh crore# /o stren%then the ca'acity o& 5entral Armed 3olice orces by

moderniGation and 'roidin% state-o&-the-art e@ui'ment and

technolo%y, the %oernment has allocated Rs# 11.. crore# /o &ormulate and 'romote the scheme o& community radio station, the

%oernment sanctioned a &und o& Rs#1.. crore# or the 6ocial >ustice Ministry, Rs# H:!. crore has been sanctioned# or the 3anchayati Ra0 Ministry, Rs#:... crore has been sanctioned# or &ood, &ertiliGer and &uel subsidy, Rs# "H!: crore has been

allocated# /o stimulate %rowth, the %oernment has slashed e+cise duty to 1.2

&rom 12# orei%n e+chan%e reseres u' by F14 billion# Rs ,H.. crore &or education loan moratorium, to beneft lakh

borrowers &or loans taken be&ore March !1, ..#


24/24

A ten 'oint a%enda has been created by Mr# 5hidambaram to make

India the third lar%est economy a&ter J6 and 5hina# /wo 'ro0ects sanctioned under irbhaya und o& which the ori%inal was

o& Rs#1... crore that was non-la'sable and another Rs# 1... crore has

been %ranted# ! more industrial corridors Q 5hennai-Ban%alore, Ban%alore-Mumbai,

Amritsar-Oolkata Q under arious sta%es o& im'lementation# 8ot# committed to Aadhaar-based P38 trans&er but scheme on hold

tem'orarily#

Documents

Bharatiya Mahila Bank Included in Second Schedule to RBI Act 1934 (1)