Recent Banking Updates (Part II)

8/10/2019 Recent Banking Updates (Part II)

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RecentBanking Updates

2014forIBPS Clerks IVonline examPart II (CoversSeptember, October and November Months)

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RECENT BANKING UPDATESFOR IBPSCLERKSIV (PART II) w w w . Gr 8 A m b i ti o n Z.co m

Fo r m o re m ater ials vi si t u s at w ww .Gr8Ambition .com 1

Sept ember 2 01 4

September 1

RBI issued guidelines on implementation of Basel - III Capital Regulations.o The revised and final guidelines for raising non-equity regulatory capital instruments by banks under the

stringent Basel III framework under which lenders can issue tier 2 capital with a minimum original

maturity of 5 years as against 10 years now.

o It further, banks can issue tier 2 debt capital instruments to retail investors, subject to the board

approval.

o Banks may now additional tier 1 capital instrument with the principal loss absorption through either

conversion into common shares or write-down mechanism (temporary or permanent) which allocates

losses to the instruments.

Comparison of Capital Requirements under Basel - II and Basel III :

Requirements Under Basel-II Under Basel-III

Minimum Ratio of Total Capital to RWAs 8% 10.50%

Minimum Ratio of Common Equity to RWAs 2% 4.50% to 7.00%

Tier I capital to RWAs 4% 6.00%

Core Tier I capital to RWAs 2% 5.00%

Minimum Liquidity Coverage Ratio None 60% by January 2015

70% by January 2016

80% by January 2017

90% by January 2018

100% by January 2019Timeline for full implementation of norms 31stMarch 2009 March 31, 2019

RBI asks banks to set timeline to loans processing.

o To expedite credit decision, the RBI asked banks to set a timeline for disposal of loan proposals but did not

ascribe a particular time frame for the same.

o The move came after RBI noticed that there have been inordinate delays by banks to convey credit

decisions, leading to delays in project implementation and also that banks must put in place the required

system within 30 days.

o But, RBI gave freedom to banks to decide each banks time by them self.

September 2

The balance of payments recorded a surplus for a third straight quarter in April - June.

o The balance of payments registered a surplus of $11.2 billion in the first quarter up from $7.1 billion in the

last quarter of the FY14.

September 3

RBI cancels Licence of The Merchants Co-operative Bank Ltd., Dist. Dhule, Maharashtra.

o The Reserve Bank of India has, on August 27, 2014, cancelled the licence of The Merchants Co-operative

Bank Ltd., Dist. Dhule, Maharashtra to carry on banking business under Section 22 of the Banking Regulation

Act, 1949 (As applicable to Co-operative Societies) read with Section 56 of Banking Regulation Act, 1949.


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o As such, the bank is forthwith precluded from transacting the business of 'banking' as defined in Section

5(b) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) including

acceptance/repayment of deposits.

RBI curbs banking operations of Choundeshwari Sahakari Bank.

o The RBI has issued directions to The Choundeshwari Sahakari Bank Ltd of Kolhapur, Maharashtra that will

require the bank to seek prior approval for its banking business.

o RBI said In particular, depositors of the bank will be able to withdraw a sum not exceeding Rs. 1,000/-

(Rupees one thousand only) of the total balance held in every savings bank or current account or any other

deposit account by whatever name called, subject to the conditions stipulated in the RBI Directions.

o As per the directions a copy of which is displayed on the bank's premises for perusal by interested members

of the public, the bank, from the close of business on August 30, 2014, cannot, without prior approval in

writing from the RBI.

1. Grant or renew any loans and advances,

2. Make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits,

3.

Disburse or agree to disburse any payment whether in discharge of its liabilities and obligations orotherwise,

4. Enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its

properties or assets except as notified in the RBI Directions dated August 28, 2014.

September 5

Axis Bank got featured in Forbes Asia's FAB 50 list.

o Axis Bank which is India's third largest private bank has been featured in Forbes Asia's FAB 50 list of 2014.

This is the fourth time that Axis Bank has been featured and is amongst the only two banks in this renowned

list.o The FAB 50 comprises of the best of Asia-Pacific's biggest publicly traded companies, chosen from a pool of

1,300 companies in the region that have at least USD 3 billion in market cap or annual revenue.

o In January this year, Axis Bank became India's first private sector bank to open a branch in China.

September 6

SBI launched its first ''multi-currency international debit card''.

o The bank in association with the master card has launched this debit card that will allow the customers to

make the payments of various currencies through a single card.

o The deputy managing director of the bank stated that through this card the customer can make the

payments in four currencies US dollar, euro, Great Britain pound and Singapore dollar. Later on more

currencies will be added to the card. The card also offers the facility of loading currencies of choice at SBIs

branch network.

o The card will issued to customers levying Rs. 100 as the annual fee of the card.

o The maximum loaded in the card would be $200.

o This is a very beneficial card for the corporate, professional and the students travelling abroad for their

studies. Currently the customer can avail this card from 100 branches of SBI in the four major cities.

The cooperative banks will now provide CBS.

o The cooperative banks will now also provide the ''Core banking Services'' like such as any branch banking,

NEFT, RTGS etc.o 201 state and district level Central Cooperative Banks with 6914 branches have joined this plan of NABARD.


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o With the aim of making banking transactions faster and baking more efficient the NABARD has decided to

bring all the cooperative banks on the CBS platform.

o With CBS, the cooperative banks are now in a position to offer the latest banking products to their

customers.

o Through this the banks will be able deliver more efficient banking services allowing them to focus on serving

customers better this will also help the banks to save money and work in an effective manner.

September 7

RBI has established a supervisory college for the Axis bank in Mumbai.

o In order to maintain and improve the understanding of the risk profile of the banking group the RBI has set

up this college.

o It will also look towards the enhancement of the mutual trust and co-operation among the supervisors.

o Through these supervisory colleges the RBI being the Apex bank of the country wants the Indian banks to

work in enhanced way in the foreign countries.

o

These colleges are especially set up for the banks that have well established presence and working in the

abroad. The RBI has already established such banks for SBI, ICICI bank.

o It is the responsibility of RBI to monitor that exchange of supervisory information and perceptions becomes

easy. These colleges are supposed to facilitate effective supervision of internationally active banks.

September 8

India is the third most affected country in terms of Online banking frauds.

o India ranks third after Japan and US.

o Due to the rapidly increasing use of internet banking the crimes involving online banking frauds are rising

heavily.o According to the data of April to June 2014, it has been noticed that online malware has affected India

severely. Within a period of month India posed for cybercriminal expansion with an average of 2.5 million

malware detection.

o The fraudsters find a new ways and techniques to continue their attacks. On the other hand it is also

noticed that near about 33%of malicious apps were downloaded.

o More than 10 millions of attacks have been observed as per the record of July. The lending institutions as

well as the customers need to be strictly alert in order to protect themselves from these frauds.

SBI has rolled out two new savings product for the minors 'Pehla Kadam' and 'Pehli Udaan'.

o Pehla Kadam is a saving account that children can open jointly with their parents.

o

Pehli Udaan can be singly operated by the minors up to the age of 10 years. These products will offer

several facilities to the holder.

o Both the products offer gamut of facilities including internet banking with limited transaction facilities such

as bill payment, opening of fixed deposits, recurring deposits.

o About banking services to miners above 10 years

In May 2014, RBI said the children above 10 yrs can independently open and operate the account. In

order to boost the financial inclusion RBI ordered banks to allow minors to open their account

independently.

All minors can now open a savings/fixed/recurring bank deposit account through either his/her natural

guardian or legally appointed guardian.


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Before this, banks allowed minors to operate bank accounts only along with a parent or a guardian. All

children and teenagers below the age of 18 are considered minors under current rules.

RBI has also asked the bank to provide more banking facilities like ATM card, internet banking to the

minors but should not allow these accounts to be overdrawn and these accounts should always remain

in credit.

Banks may keeping in view their risk management systems, fix limits in terms of age and amount up to

which minors may be allowed to operate the deposit accounts independently.

But banks will not charge any penalty on the non operative accounts.

September 9

The Reserve Bank of India will adopt a common recruitment system from next year to tap talent for its core

functions. The larger objective is to strengthen itself in the changing economic scenario.

o ''Starting from 2015, there shall be common recruitment for all core functions of the bank'', the RBI said in

an internal report on HR initiatives.

o

At present, it recruits officers and support staff for core and non-core functions through different

examinations, such as the Grade B officers level exam. The RBI now has about 17,000 employees.

o The proposed common recruitment will not only cover traditional areas such as economics and statistics but

also include niche skills, such as risk management, financial markets trading, accounting, legal, human

resources management and counselling.

o The officers that are recruited will have a common seniority. In effect, it will be like the common cadre

under the All India Services of the Union Public Service Commission.

RBI sets 70 years as upper age limit for MD, CEO of private banks.

o Within the overall limit of 70 years, individual banks boards are free to prescribe a lower retirement age for

WTDs, including MD & CEO, as an internal policy, RBI said in a circular (which was previously 21 years).o Background:

o As per the Companies Act, 2013 prescribes that "no company shall appoint or continue the employment of

any person as Managing Director, Whole Time Director or Manager who is below the age of 21 years or has

attained the age of 70 years''.

IDBI Bank initiated its first e-lounge in Mumbai.

o This e-lounge will enhance the services offered to the customers. With more ease now the customers can

make the banking transactions.

o Services offered in E-lounge:

o The e-lounge will offer the facility of ATM, automated pass book printing, Transact terminal for various Card

and Net Banking holders to view balance, make a funds transfer, pay bills and recharge and much more.o In addition to this the bank reported that the lounge will also offer the facility of LED screens allowing the

customers to get the details of the Interest rates, products rates from the screen.

Some Indias bank branches may face closure in UK.

o Recently it has been reported that various branches of Indian bank may face closure in U.K. Because of the

global crises in England the Bank of England's Prudential Regulatory Authority (PRA), responsible for

supervising individual banks, stated that they may ask some of the Indian branches to shut down.

o In order to curb with this global crisis in the economy the Indian Banks branches may face closure over

there. The Indian banks will either have to shut down their branches or they have to convert them

completely from branch status to UK subsidiary.

September 10


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SBI approached RBI to roll out contactless card.

o SBI has approached the RBI with the proposal to roll out a PIN free debit card.

o The bank wanted to launch a card through which the customers can make the transactions without entering

the PIN for small transactions (less than Rs. 2000).

o Before making this plan functional the bank is testing such contactless card at the metro stations in Mumbai

and Chennai. Through this the bank wants to eliminate the need of entering the PIN for making small

transactions of up to Rs. 2,000. The Apex bank has yet to approve this proposal.

o Current norms:

o Currently to use the card for any purpose the customer is required to punch the PIN, bank wanted that for

the small transactions i.e. for the limit up to Rs. 2,000 the entering of PIN to use the card must be abolished.

RBI established a new financial literacy gallery.

o With the aim to maximize the awareness on finance and banking, the Reserve bank of India has established

a permanent gallery that will spread awareness on financial literacy in Mumbai. The gallery is open for the

common people.

o

It will be informing the people regarding the fundamentals of banking like purpose of savings, tips forsecure banking, benefits of fixed deposits, recurring deposits etc. The people will be guided through the

digital display and audio visual facility.

o This an innovative measure taken by the apex bank in the favor the people that will assist to enhance the

financial literacy among the people. The RBI is also offering a three month internship for aspiring post

graduates of finance and economics with a monthly stipend of Rs. 12,500.

Treatment of No-frills accounts opened for credit of Scholarship.

o As directed by the Bombay High Court, RRBs and State/ Central Cooperative Banks are hereby advised to

ensure that accounts of all student beneficiaries under the various Central/ State Government Scholarship

Schemes are free from restrictions of 'minimum balance' and 'total credit limit'.

o

Background:

o Bombay High Court has brought to our notice that banks fix a limit on total credits in zero balance accounts

opened for students studying in primary, secondary/ higher secondary schools and technical institutions.

o Resultantly, in cases where scholarship amounts exceed the credit limit, banks do not allow the credit and

return the amount to the disbursement account of the Government.

o Further, in some cases banks are reported to have closed zero balance accounts unilaterally without

intimating student beneficiaries concerned. Instances of banks refusing to open zero balance account for

students have also been brought to our notice.

RBI has revised the guidelines on wilful defaulters making them tighter.

o

As per the revised guidelines, the bankers can classify the guarantor group firms and management as wilfuldefaulters.

o The guarantor group companies can be reckoned as wilful defaulters, in cases where guarantees furnished

by the companies within the Group on behalf of the wilfully defaulting units are not honoured when

invoked by the banks/ FIs.

o The banker will be able to proceed against the guarantor/ surety even without exhausting the remedies

against the principal debtor, when a default is made in making repayment by the principal debtor.

o Where a banker has made a claim on the guarantor on account of the default made by the principal debtor,

the liability of the guarantor is immediate. In this case said guarantor refuses to comply with the demand

made by the creditor/ banker, despite having sufficient means to make payment of the dues, such

guarantor would also be treated as a wilful defaulter.


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o However, the revised guidelines applies only prospectively and not to cases where guarantees were taken

prior to this circular. Banks/ FIs may ensure that this position is made known to all prospective guarantors at

the time of accepting guarantees.

ICICI Bank launches Card-less Cash Withdrawal scheme.

o ICICI Bank launched a facility under which an account holder with it can transfer money to a mobile phone

user in the country even without the latter having an account with any bank.

o How to send?

o A customer having a savings account with the country's largest private lender can initiate a fund transfer

using online banking by giving only the mobile number and address of the beneficiary.

o How to receive funds?

o A secure six-digit code gets sent to the mobile number of the beneficiary, who can withdraw the amount

from any of the bank's ATMs, using that number.

o The money has to be withdrawn within two days of the transfer.

o The beneficiary need not have an account with any bank can also use this scheme.

September 11

Bajaj Finance applied for dedicated housing finance company to National-Housing-Bank.

o Bajaj Finance, the non-banking lender, a housing finance company as a wholly-owned subsidiary and will

now be applying to the sector regulator National Housing Bank (NHB) for a licence.

o The company, which is headquartered in Pune, already has a presence in the mortgage space and nearly 40

per cent of its Rs. 27,000 crore book is mortgage products, he said, adding that there were many benefits

due to which the company had decided to have a dedicated company.

o NBH is solo authority to give permission for HFC.

September 12

SBI chief Arundhati Bhattacharya finds place in Bloomberg's '50 Most Influential' list.

o Bhattacharya, who is the only Indian woman to be present in the list, is featured in the 'bankers' category.

o The final list consists of 10 people in each of the five categories-money managers, thinkers, corporate

power brokers, bankers and policymakers.

SEBI likely to be dragged to court for alleged irregularities in Bank of Rajasthan case.

o Alleging major irregularities in the order passed by the Securities and Exchange Board of India (Sebi) in the

Bank of Rajasthan (BoR) case, some minority shareholders of the bank have decided to approach the

Bombay High Court (HC) for relief.

o

Alleging that senior Sebi officials, including chairman U.K. Sinha and chief vigilance officer (CVO) R.K.

Padmanabhan, showed favour to BoR promoters, shareholders Rajesh Agarwal and Vijay Garg, backed by

some 200-odd minority shareholders.

September 13

State Bank of India, SBI, celebrated 150 years of its operations in Sri Lanka at a glittering ceremony Friday

evening. Addressing a gathering in Colombo, SBI Managing Director Krishna Kumar reaffirmed the bank's

commitment to partner in Sri Lankas efforts in developing its economy.

o Sri Lankas Central Bank Chief thanked SBI for believing in Sri Lanka and investing money and skill in

development of the country.


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September 14

HDFC bank has planned to issue the debit card PIN to the customers through SMS.

o With the aim of being eco friendly the bank wanted to save paper and instead of sending PIN of the debit

cards through post it will be send through the SMS.

o

The new PIN issued over SMS is named as 'Green PIN'. The green PIN will be issued to the customer at a

time and location most convenient to them.

o About Green PIN:

Basically green PIN is a one time generated password that will be sent to the customer registered

mobile number.

TATA group is preparing to establish 15,000 new ATMs in the country in coming few years.

o 67% of the ATMs will be set up in rural areas.

o The TATA group has already established 2,000 WLAs across the 18 states in the country and has received an

overwhelming response from the customers.

o About white labelled ATMs:

White-label ATMs are similar to other ATMs in that they can be used by any domestic debit, credit or

prepaid cardholder to withdraw cash, make a balance inquiry, change the personal identification

number or ask for mini statements.

These entities have a mandate to deploy 67% of ATMs in rural locations (tier III-VI) and 33% in urban

locations (tier I and II cities).

White-label ATM operators need a sponsor bank to operate the machines. According to RBI rules,

these sponsor banks will be liable to settle transactions and maintain cash at these ATMs. Maintenance

and servicing will be the white-label ATM operators job.

Charges for customers remain the same as those levied by a card-issuing bank. So, the first five

transactions in a month are free at these ATMs too. The card issuing bank will pay the interchange feefor the free transactions, but will charge you for anything beyond that limit.

WLAs in country include

BTI Payments Private Limited Bangalore

Srei Infrastructure Finance Limited Kolkata

RiddiSiddhi Bullions Limited Mumbai

This new three are in addition to the four entities already authorised to operate as WLAs namely

Tata Communications Payment Solutions Mumbai

Vakrangee Ltd MumbaiPrizm Payment Services Pvt. Ltd Chennai

Muthoot Finance Limited Kochi

Important Note :In June 2012, the RBI has issued policy guidelines permitting NBFCs entities to set up

and operate WLAs. Prior to this, only banks were permitted to set up and operate ATMs in the country.

September 15

MCX-SX gets conditional one-year renewal; SEBI seeks business plan.

o MCX Stock Exchange on got a one-year conditional renewal to function as a bourse and regulator SEBI asked

it to submit a long-term sustainable business plan and take other remedial actions.

o

Besides, the exchange would not be allowed to introduce any new contract till it meets minimum networth

requirement of Rs. 100 crore, for which it has been given three-months time.


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o Issue regarding Licence

The current recognition of MCX-SX, which was set up by Jignesh Shah-led Financial Technologies

Group, expired on 15-7-2014, but SEBI has now decided to extend it for a period of one year,

commencing September 15 and ending on September 15, 2015.

o MCX Stock Exchange

Startedby: Thomas Mathew.

Chairman: Thomas Mathew.

Started in: 2008.

Headquarters: Mumbai.

September 16

India's export growth slips to 2.35 % at 26.95 billion dollars in August.

o India's export growth slipped to 2.35 percent at 26.95 billion dollars in August, pushing up trade deficit to

10.83 billion dollars.

o

Gold imports jumped to 2.03 billion dollars in August compared to 738.7 million dollars in the same month

last year.

o According to the Ministry of Commerce and Industry's data, overall imports grew 2.08 percent to 37.79

billion dollars.

September 17

Allahabad Bank was awarded the second prize in ''region 'C''' banks for the year 2012 - 13 under the Indira

Gandhi Rajbhasha Shield Scheme of Department of Official Language, Ministry of Home Affairs.

o According to a release issued by Allahabad Bank, its Chairman and Managing Director, Rakesh Sethi,

received the shield from the President, Pranab Mukherjee, at a function help in the Rashtrapati Bhavan onSeptember 14.

o Allahabad Bank is celebrating the month of September as Hindi month.

Headquarters: Kolkata.

Chairman: Rakesh Sethi.

RBI asks banks to roll out POS machines for debit cards.

o Reserve Bank of India (RBI) said that the central bank is mulling linking the debit card issuances to the

number of point of sale (POS) machines it puts up at merchant establishments.

o In comments that came in the midst of a massive account opening campaign launched by banks, under the

'PM Jan Dhan Yojana', Khan said if there is not a commensurate increase in the POS terminals, the usage of

cash will grow.

RBI Dy. Governor white label POS terminals as future plans.

o Like in the case of automated teller machines (ATMs), where the RBI allowed private, non-bank players to

install the machines called as the White Label ATMs, the central bank is also mulling to allow 'white label

POS terminals.

Federal Bank announced new savings scheme for children.

o SBI, Federal bank has rolled out a new savings schemes for the children below 18 yrs.

o The bank has introduced the savings scheme for minors named 'Young Champs'. With the aim to develop

the savings habit in children banks are introducing these new schemes.

o

Both Indian as well as NRI customers below the age of 18 yrs can avail this scheme. Children can open andoperate this account on their own.


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o They will be provided with the facility of debit card along with the spent limit of Rs. 2,500. The net banking,

SMS alerts, fund transfers will be from parents account.

CCI rejects complaint against IRDA.

o Fair trade watchdog CCI has rejected charges that insurance regulator Irda's rules, which grant of corporate

agency license to banks to sell insurance products, are anti-competitive.

o The issue of abuse of dominance by IRDA does not arise and no case of contravention of the provisions of

the (Competition) Act is made out against IRDA and the information is ordered to be closed forthwith.

o Background:

A complaint filed with the Commission had alleged that banks in insurance retailing sector were

imposing unfair and discriminatory conditions on financed clients to purchase insurance product from

them, indulging in predatory pricing, restricting and denying market access to independent insurance

agents, among others.

As a result, the complainant had asked the fair trade watchdog to pass directions to Insurance

Regulatory and Development Authority (IRDA) to repeal the regulation.

Finally, CCI noted in the case that IRDA was discharging its regulatory and statutory mandate and didnot fall within the purview of Competition norms.

September 18

SBH bank has introduced a new scheme for the borrowers whose accounts have become NPAs due to

payment failures.

o State bank of Hyderabad stated that borrowers who fail to repay the interest, instalment or both can now

easily make their account operative with the SBH new One time Settlement Scheme.

o The customers can avail this scheme till the month of September. To avail the scheme the borrower need to

contact the respective branch. They will also be provided with some concession under compromisesettlement.

UCO bank has entered in to partnership with bank bazaar.com.

o At the headquarters of the bank general manager of the retail banking of bank signed the agreement with

the managing director of the Bank Bazar.com. Through this tie up the bank will enhance its online selling of

its retail banking products UCO home loans and UCO car loans.

o About Bank Bazaar:

Bankbazar.com is a reputed online portal with 1.7 million visitors per month. This online marketplace

can help the bank to increase its online sale. Bank expects to see its home loan and car loan portfolio to

grow by 2000 applications a month through Bank Bazaar.

September 19

The Reserve Bank of India (RBI) proposed to segregate the post of Chairman and Managing Director (CMD) of

Public Sector Undertaking (PSU) banks.

o It also proposed a separate committee for appointment of directors on the board of PSU banks.

o These proposals are a part of corporate governance reforms in PSU banks and are based on the

recommendations of various committees including the P.J. Nayak Committee recommendations.

o At present, the post of CMD in PSU banks is vested with one person only. As a result CMDs of PSU banks

enjoy absolute power and often dominate the board during their tenure.

September 21


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RBI has asked bank to launch more number of Point of sales machine at the merchant establishment.

o RBI is thinking to connect the issuance of Debit cards with the establishment of POS machines.

o RBI stated that under PMJDY, banks are creating millions of new savings account in turn millions of new

debit card will get issued, so it is necessary to create equivalent number of new POS else it might lead to the

increase in the use of cash.

o These days use of electronic cash is high on demand therefore the card acceptance infrastructure need to

be created. Some banks are putting up new POS machines. However RBI has not finalized this decision but

the bank is mulling over this thought.

o Background:

According to the reports currently we have 1.1 million POS machines operational in the country at

present, and even within those, there are some which do not accept other banks' debit cards.

With the aim to increase the POS machines it is expected that similar to the white label ATMs RBI may

come up with the concept of White label POS.

A new portal- e-integration in bancassurance launched by Canara, HSBC, oriental Bank of commerce.

o

Private insurance Companies Canara, HSBC, Oriental Bank of Commerce Life Insurance propelledCHOICeNET portal. This portal is the part of banassurance.

o CHOICeNet is an innovative portal launched to reach out the customers of the Canara Bank and OBC. This

portal will facilitate bank provide end-to-end information for their customers' life insurance policies.

o About portal:

Through this portal the bank employees will provide the information for their user life insurance

policies.

This new portal launched by the company is embedded with the partner banks' intranet. Through this

the insurance company will easily check the information of insurance policy details and will also enable

them to track the progress of applications. This initiative will increase the trust of the customers on the

bank.

o This portal will also help the customers, it will enable them to renew premium payment using direct debit

on Canara Bank and OBC's Core Banking System.

State Bank of Travancore launched a Demat campaign for its customers. Bank organized this exclusive drive to

help the customers for starting up the 3 in 1 online Demat account.

o With the help of the Demat facility the customers will be able to convert their physical share in the

electronic form.

o One of the official reported that the campaign was carried out yesterday at poojappura Branch of the bank

and will held today at the main branch of the bank in Thiruvananthapuram city. Customers as well the other

corporate can visit and avail this facility. Bank of Maharashtra is celebrating its 80th Foundation Day.

o On the occasion of its foundation Day, yesterday bank has launched a customers meet. At the different

places all over the country, bank organized functions.

o Bank also donated a sum of Rs. 51,000 to Tamana a NGO that works for the mentally retarded people.

o The customers, in turn, appreciated the Bank's efforts for organizing a Customer Meet on its 80th

Foundation day. The bank assured that bank will keep on servicing its customers like this only.

September 22

EPFOs plan to provide UAN to its customers will be launched on 16th October, 2014.

o The universal account number (UAN) will assist the subscribers to track the latest details of their accounts

along with the downloading facility and collation of pensionable service.


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o About UAN:

This UAN will abolish the need for the customers to apply again in case they change their job. Their

account number will be universally acceptable and portable. The EPFO is in the process of making UAN

operational for its 4.17 crore contributing subscribers by October 15.

Along with this the govt. has decided to launch unified web portal LIN (Labour Identification Number)

for simplifying business regulations and bringing in transparency. The LIN and UAN both will be

launched on 16 the October, 2014.

V.G. Mathew is appointed as new CEO of South Indian Bank.

o The Reserve Bank of India (RBI) approved the appointment of V.G. Mathew as Managing Director (MD) and

Chief Executive Officer (CEO) of Kerala-based South Indian Bank Ltd.

o V.G. Mathew is appointed for a period of three years with effect from 1 October 2014. He will replace V.A.

Joseph who will retire on 30 September 2014 after serving the bank for 12 years.

o His appointment was made under the Section 35B of the Banking Regulation Act 1949.

o Headquarters: Thrissur City, Kerala.

September 23

RBI releases Report of the G. Gopalakrishna Committee on ''Capacity Building in Banks and non-Banks''.

o Some important recommendations are:

Create the position of ''chief learning officer'', responsible for leadership development and

collaborative learning in commercial banks.

Conducting a common Banking Aptitude Test (BAT) at entry levels.

Banks should endeavour to expand enrolment of select internal employees as part-time faculty to

provide internal support for training initiatives.

To deal with talent replacement, there should be free movement of talent within the organisation forcreation of a larger workforce of trained personnel.

Job rotation, especially in PSBs, should not be carried in a mechanical manner but through a well laid

down criterion.

All banks may adopt e-learning methods and ensure that function-specific lessons are made available

to its staff.

o About chief learning officer:

Banks to focus on skill building, it recommended a 360 degree feedback mechanism, coaching and

mentoring paradigm, pre- and post-recruitment training and talent retention along with creating a

position of Chief Learning Officer in all commercial banks, responsible for leadership development and

collaborative learning across the organisation.o About Job rotations:

Job rotation in banks especially PSBs, should not be done in a mechanical manner, but through a well

laid down criteria. Transfers should focus on critical requirement like leadership across the geography

and posts that require high concentration of power. In short, need-based transfers may be undertaken.

o About creation of talent:

Talent and leadership requirements need to be planned strategically over the long term, say over five

years and above.

o About creating separate departments:

Bankers will need to specialise in different business functions, while maintaining basic general

competency. Corporate banking, retail banking, treasury, risk, finance, technology, and HR will


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increasingly require staff with relevant aptitude. Banks need to identify five to six such tracks, within

which the staff can be groomed

Certain job families like credit, treasury and technology are typically in deficit and need to be planned

for at various levels.

September 24

ICICI launches Saving Bank account for minors.

o Private sector bank ICICI Bank launched a savings account for minors above 10 years of age.

o The account, which will be opened in the name of the minor, will offer a personalised cheque book and a

debit card with a picture of his or her choice, the bank said in a statement.

o The 'Smart Star' account, will allows minors to operate their accounts independently. This will help to

inculcate a habit of saving and responsibility of spending wisely.

o Minors will be able to undertake various banking transactions including issuing cheques, paying bills,

recharge mobile phones, open fixed deposits and recurring deposits among others.

o

About banking services to miners above 10 years

In May 2014, RBI said the children above 10 yrs can independently open and operate the account. In

order to boost the financial inclusion RBI ordered banks to allow minors to open their account

independently.

All minors can now open a savings/ fixed/ recurring bank deposit account through either his/ her

natural guardian or legally appointed guardian.

Before this, banks allowed minors to operate bank accounts only along with a parent or a guardian. All

children and teenagers below the age of 18 are considered minors under current rules.

RBI has also asked the bank to provide more banking facilities like ATM card, internet banking to the

minors but should not allow these accounts to be overdrawn and these accounts should always remain

in credit.

Banks may keeping in view their risk management systems, fix limits in terms of age and amount up to

which minors may be allowed to operate the deposit accounts independently.

But banks will not charge any penalty on the non operative accounts.

September 26

South Canara District Central Cooperative (SCDCC) has recently launched Bank cum ATM for the people. To

make banking more comfortable for the people bank has introduced ''Bank cum ATM on Wheels'' with the

help of NABARD.

o

In the office area of the Bank NABARD launched a cheque/ cash drop kiosk. Chief general manager of the

bank stated that cooperatives banks are no less than the commercial they also introduce latest technology

to keep their customers happy.

ICICI bank unveiled 4 new banking apps. Bank has introduced new mobile applications to offer basic banking

transactions to the customer over the mobile phone.

o The new apps are : ICICI Store app, Insta Banking app, Video Banking app and mPassbook app. The

customer can easily download these apps from the Google play store and use them. The app will allow the

customer to initiate a transaction before visiting a branch view their transactions over the last 30 days on

their mobile phones. The data has also displayed that by the June end ICICI bank earned Rs 1000 crore

through mobile banking.


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o With the help of the apps the transactions like cash deposit, cash withdrawal, request for demand draft,

updation of personal information can be made easily. The Video banking app will enable the customer to do

video calling with customer care and m-passbook will assist the customer to view and track their latest

account, credit card transactions.

Punjab National Bank has recently signed an agreement to work with Honda Motorcycle and Scooter India

(HMSI).

o Through this partnership bank will be offering more attractive offers on Honda two wheelers purchase. Foe

the auto loan bank will be offering attractive interest rate along with the amount stands at 90 per cent of

two wheeler value with an extended repayment tenure of up to 5 years. Usually the bank offers loan up to

Rs 50,000 for the period of 3 years.

o This partnership will benefit the Honda as well to expand its retail business. The PNB and HMSI have

introduced the offer of zero processing and no documentation charges but the customers can avail this

offer til the end of the festive season.

Easy to open account under PMJDY.

o

Mr. Modi stated that there is nothing to worry about if the people do not have any valid identity proof, theycan still open their savings account under this scheme.

o To open account the person will simply require two copies of signed photographs.

o This account will be declared as a small account and will be valid for the period of 1 year; with in that period

of time the person can submit the valid document and can subject to continue the account.

o These account will have certain restrictions like balance at any point of time should not exceed Rs. 50,000,

total credit in one year should not exceed Rs. 1 lakh. So far already 4.18 crore accounts have been opened

under this scheme.

o At places people are facing shortage of account opening forms due huge rush at the places. The people can

visit the nearest bank branch and can avail this form from there.

ICICI bank has introduced new products for NRIs.

o The new product named NRI advantage is basically for the NRI Pro, NRI premia and NRI savings account

customers.

o This product will help the customers to avail several special offers and discounts. The Executive director of

the bank also informed that bank is having a huge network across several countries and bank is serving 1.5

million NRI customers.

o The bank has launched this new product with purpose to serve and cater the non- financial needs of the NRI

customers.

o With the help of this new product the bank will competently serve the NRI customers with better schemes

and value in the market. The customers will be provided with exclusive offers on healthcare, Gifting familyand friends, shopping and much more.

Public Sector Banks require 2637 billion US dollars to meet Basel - III norms: Moody.

o Global rating agency Moody 2014 released a report titled Indian Banks Could Need 26-37 billion US dollar in

External Capital for Basel - III Compliance.

o In the report it revealed that 11 Indian public sector banks (PSBs) need to raise 26 to 37 billion US dollar in

external capital in the financial year 2015 in order to meet the Basel - III capital adequacy norms by financial

year 2019.

Main highlights of the report:

o In rupee terms these banks will require additional 1.5 to 2.2 trillion rupees to fully comply with the Basel-III

norms.


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o A significant part of the required capital, around 800 - 900 billion rupees (or 13-15 billion US dollars) could

be in the form of Additional Tier 1 (AT1) capital.

o Moody's notes that these PSBs constitute 62 percent of the net loans in the Indian banking system but

barely meet the current minimum capital requirements. As a result PSBs will find it difficult to raise capital

quickly in the current environment.

Basel - III Norms

o Basel - III raises the minimum required capital levels for both Tier 1 capital to 7.0 percent and Common

Equity Tier 1 (CET1) capital to 5.5 percent. Besides, the banks will also need to meet a Capital Conservation

Buffer in order to pay dividends. These will be pressurizing the Indian public-sector banks due to low capital

levels remain a key credit weakness.

September 27

SBI signed 500 million dollar Line of Credit with Korea Eximbank.

o Objective:

The LoC will be utilised to provide finance to SBIs clients in India and neighbouring countries that have

business relationships either by way of equity participation or regular trade with Korean companies

globally, as well as joint ventures or subsidiaries of Korean companies.

o About LOC:

A line of credit is any credit source extended to a government, business or individual by a bank or other

financial institution.

The borrower can draw down on the line of credit at any time, as long as he or she does not exceed the

maximum set in the agreement.

The advantage of a line of credit over a regular loan is that interest is not usually charged on the part of

the line of credit that is unused, and the borrower can draw on the line of credit at any time that he orshe needs to.

Depending on the agreement with the financial institution, the line of credit may be classified as a

demand loan, which means that any outstanding balance will have to be paid immediately at the

financial institution's request.

Federal Bank has decided to help Kerala Cricket Association (KCA) for the India west Indies ODI.

o The bank will be assisting KCA in sales of the ticket for this series. The customers can avail the tickets pricing

Rs. 3000, Rs 1500, Rs. 1000, Rs. 500 and Rs. 200 from the several federal Bank outlets from September 27,

2014 onwards.

o The Federal Bank Zonal Head Mr. Sunny NV and the secretary Mr. T.N. Ananthanarayanan of KCA signed the

MOU. Vijaya bank has launched new e- products for its customers.

o Bank has introduced customer friendly products like V-gyansagar. Basically V-gyansagar is a mobile app that

will help the bank to inculcate financial literacy among the customers.

o Founded: 1931, (Attavar Balakrishna Shetty).

o Headquarters : Bangalore.

o Chairman: Shri. V. Kannan

September 28

UCO Bank has signed a Memorandum with CCAvenue.o Objective:


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For banking payments easier through the use of plastic money as well as through online banking.

o About CCA

CCAvenue is one of the largest and reputed payment gateway providers. Through this partnership the

bank will facilitate the bank customers to shop through various sites that are in association with the

CCAvenue.

The customers will be getting the easier way to make the payments and shop online my making

payments directly through the banks Debit card.

SBI donated computers to schools in Gujarat.

o The bank distributed computer sets and peripherals to 150 needy schools in Gujarat.

o Objective:

The initiative is purposely to help the schools with infrastructure, which are in need and are not able to

acquire due to insufficient funds.

To help nearly 59,198 students with their education bank has spent an amount of Rs. 46.63 lakh.

As a part of the CSR activity bank work for the society upliftment as well.

Banks may face some legal issue on opening of minors account.o Under the new scheme the kids are allowed to operate their savings account on their own but these

facilities and freedom to them may be against some of the laws of the country. It has been stated that one

of the major legal implications of this move (to allow minors to operate an account) is that there cannot be

enforcement against the minor under the Indian Contract Act.

o In case of the dishonour of the cheque made by the account of the minor no action can be taken since a

minor cannot enter in to a contract.

o Under the Partnership Act, a minor can be admitted as a partner.

o Indian Contract Act 1872

The Act was passed by British India and is based on the principles of English Common Law. It

determines the circumstances in which promises made by the parties to a contract shall be legally

binding on them. Each contract creates some rights and duties on the contracting parties. Hence this

legislation, Indian Contract Act of 1872, being of skeletal nature, deals with the enforcement of these

rights and duties on the parties in India.

o The Indian Partnership Act, 1932

It is an act enacted by the Parliament of India to regulate partnership firms in India.

The act is administered through the Ministry of Corporate Affairs. The act is not applicable to Limited

Liability Partnerships, since they are governed by the Limited liability Partnership Act, 2008.

RBI to set up more financial literacy centres in the country.

o

The apex bank has decided to push and focus on opening of more number of financial literacy centres. Inevery district across the country there should be one financial centre. This will be the part of financial

inclusion plan.

o Financial literacy will imparted to the people through these centres. The farmers will e taught about skill

development along with the financial benefits.

o Objective:

These centres will focus highly on the need of the farmers and agriculturist. It will be ensured that all

the benefits due to them from banks and the respective governments - state and centre reach them.

This will strongly help the farmers to become aware and will help them to lead a more sustainable life.

September 29

Alibaba gets approval to set up private bank in China.


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o Alibaba is Chinas e-commerce giant and the latest company outside the financial sphere to win approval to

start a bank in China. Beijing hopes private banks will help in its drive to open up the economy to more

competition and get private capital to more parts of the economy.

o Note: Alibaba completed the biggest initial public offering ever this month by selling $25 billion of stock to

investors keen to tap into the worlds biggest pool of Internet users.

Chairman: Jack Ma.

Headquarters: Hangzhou, China.

Exim Bank's Line of Credit of USD 52 million to the Government of the Republic of Togo.

o Export-Import Bank of India (Exim Bank) has entered into an Agreement dated with the Government of the

Republic of Togo for making available to the latter, a Line of Credit (LOC) of USD 52 million (USD Fifty two

million).

o Objective:

For financing eligible goods, machinery, equipment and services including consultancy services

(including Preparation of Detailed Project Report) from India for the purpose of financing setting up of

161 kV power transmission line in Togo. SMERA asked permission of RBI to give rating to All Deposit Taking NBFCs.

SMERA is seeking accreditation as 'approved credit rating agency' for the purpose of rating fixed

deposits of NBFCs.

o About SMERA:

SME Rating Agency of India Ltd. is a full service credit rating agency exclusively set up for micro, small

and medium enterprises (MSME) in India. It provides ratings which enable MSME units to raise bank

loans at competitive rates of interest.

However, its registration with Securities Exchange Board of India SEBI as a Credit Rating Agency and

accreditation by Reserve Bank of India RBI in September 2012 as an external credit assessment

institution (ECAI) to rate bank loan ratings under Basel II.

o SMERA is started by:

The agency was founded in 2005 by Small Industries Development Bank of India Dun & Bradstreet

Information Services India Private Limited (D&B) and several leading Govt., Public, Private and MNC

banks in the country.

Headquarters: Mumbai, Maharashtra.

Chairman: Mr. Sudeshkumar G. Gulati.

Seeking to expand Asian operations, Qatar-based Doha Bank will acquire the Indian operations of the HSBC

Bank Oman.

o

The board of Doha Bank has approved the terms of amalgamation to take over and combine the bankingoperations of HSBC Bank Oman SAOG, India, with Doha Bank QSC India operation as a going concern, Doha

Bank said a filing to the Qatar Stock Exchange.

o Note : Late last year Doha Bank had secured licence from the Reserve Bank of India (RBI) to commence

banking operations in India and has been permitted to open a branch in Mumbai to provide fullscale

banking services.

Corporation Bank joined Swachh Bharat Abhiyan.

o Under this bank has will be constructing 100 toilets across the various schools as the part of swachh

Vidyalaya.

o Last the bank initiated this campaign by building 5 toilets in the Udipi region (Kerala).


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o The bank will further carry out this campaign across the other parts of the country. Employee in large

number participated in this campaign while cleaning the bus stand of the region and spreading the message

that the cleanliness should be maintained forever.

Banks may go on strike this October.

o United forum of Bank Union has decided to continue their protest against the salary revision in again. The

Indian banks will be conducting protest demonstration across the country on 17th October, 2014.

o The employees will wear black badges to demonstrate the protest. Further one day dharna will also be held

in between October 18 and 31.

o Reason for strike

The banks are demanding for the hike 25% in their salaries whereas IBA is offering a revision of 11%

only. Unsatisfied with this revision the banks have planned to demonstrate protest against this by one

day strike.

However, IBA agreed and has accordingly clarified that even though employees would be covered by

the medi-claim scheme, they would continue to submit their claims to the management.

Corporation Bank of Mysore to setup e-lobby in Mangalore.o About e-lobby

The E-lobby eases the banking transactions and help the customers with various facilities of cash

deposit kiosk, cheque deposit kiosk, and self-service passbook printer.

September 30

RBIs third bi-monthly monetary policy

Current

Rates (in %)

Rates in June

(in %)

Reserve Rates CRR 4 No ChangeSLR 22 No Change

Policy Rates Repo Rate 8 No change

Reverse Repo Rate 7 No Change

MSF 9 No Change

Bank Rate 9 No Change

Highlights:

o Reserve Rates (SLR, CRR) & Policy Rates (Repo, R-Repo, MSF and Bank rate) kept un-changed.

o Continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate

and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system

through auctions.o Reduce the liquidity provided under the export credit refinance (ECR) facility from 32 per cent of eligible

export credit outstanding to 15 per cent with effect from October 10, 2014.

o Section 24 of the BRA, 1949:

Every primary (urban) cooperative bank (scheduled/non-scheduled) and scheduled commercial bank is

required to maintain liquid assets in the form of cash, gold (or) unencumbered approved securities

which should not be less than 25 per cent of the total of its demand and time liabilities (NDTL) in

accordance with the provisions of Section 24 of the Banking Regulation Act, 1949.

o Section 42 of RBI Act, 1934:

Commercial banks, primary (urban) cooperative banks are required to maintain certain amount of cash

reserve and liquid assets. The scheduled primary (urban) cooperative banks are required to maintain

with the Reserve Bank of India an average daily balance, the amount of which should not be less than 5


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per cent of their net demand and time liabilities in India in terms of Section 42 of the Reserve Bank of

India Act, 1934.

The Government of India has minted the ''Rs. 5 coin of Maulana Abul kalam Azad'' on the occasion of 125th

Birth Anniversary of Maulana Abul kalam Azad.

o These coins are legal tender as provided in The Coinage Act 2011. The existing coins in this denomination

shall also continue to be legal tender.

Oc t ober 2 0 1 4

October 1

The Nachiket mor committee recommended formation of small, payments banks for achieving financial

inclusion faster.

o RBI is going to issue final norms on small, payments banks by end-November.

October 2

Banks open 5.29 crore accounts under PM Jan Dhan, issued 1.78 crore RuPay cards.

o Pradhan Mantri Jan Dhan Yojana is an ambitious scheme for comprehensive financial inclusion launched

by the Prime Minister of India, Narendra Modi on 28 August 2014.

o Exceptions:

This is being done excluding the states of Haryana and Maharashtra where survey work has been

temporarily suspended in view of Assembly Elections.

o Main Features:

The main features of the PMJDY scheme include an overdraft facility worth Rs. 5,000 for Aadhar-

linked accounts, a RuPay Debit Card.

With in-built accident insurance cover of Rs. 1 lakh.

Besides, account holders under the scheme will get a life insurance cover of Rs 30,000. This is an

additional benefit that was announced by PM Modi during the launch of the scheme.

October 3

Banks need USD 200 billion in next 5 years to meet Basel - III norms, says Fitch.

o Domestic banks will need US $200 billion additional capital over the next five years to meet Basel - III

norms for capital adequacy and the demand for funds as growth picks up, Fitch Ratings.

o

About Capital requirements: CAR

Capital Adequacy Ratio (CAR) or Capital to Risk (Weighted) Assets Ratio (CRAR) is calculated in risky

assets of banks to ensure that it can absorb a reasonable amount of unexpected losses.

The original Basel - III rule from 2010 was supposed to require banks to hold 4.5% of common equity

and 6% of Tier I capital of "risk-weighted assets" (RWA).

Basel - III introduced "additional capital buffers", (i) a "mandatory capital conservation buffer" of

2.5% and (ii) a "discretionary counter-cyclical buffer".

o Risky assets in Indian banks

Public sector banks reported stressed assets of around 12 per cent in 2013-14, versus around 4 per

cent of private banks and 10 per cent for the banking system, according to Fitch.

Last date for implementation of the Basel - III regulations is March 2019.


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October 4

Commercial bank credit growth remains sluggish at 9.7 per cent.

o Credit growth of commercial banks continued to remain weak with a growth of just 9.7 per cent at Rs.

61,46,526 crore against Rs. 56,02,021 crore last year.

o

Deposits grew 13.33 per cent to Rs. 81,06,633 crore in the fortnight to September 19 as compared with Rs.

71,50,374 crore in the year-ago period.

o Demand deposit expanded 12.40 per cent to Rs. 7,36,751 crore as of September 19 from Rs. 6,55,428

crore in the same period a year ago.

o Time deposit rose 13.47 per cent to Rs. 73, 69,898 crore as against Rs. 64,94,947 crore in the same period

last year.

October 6

Online NEFT transactions will be chargeable in PNB.

o

Punjab National Bank has unveiled that bank has decided to charge its customers all online transfer offunds, irrespective of the amount.

o The bank stated that any transaction made to other bank account through National Electronic Fund

Transfer (NEFT) will be charged.

o From the beginning of the October the bank has decided to charge the customers for NEFT transactions

made online, whereas Inward NEFT remittances will continue to remain free.

The charge list is as follows:

For the NEFT Charges

Up to Rs. 10,000 Rs. 3

Rs. 10,001 to Rs. One Lakh Rs. 6Greater than Rs. 1 Lakh Rs. 17

PF subscribers can monitor PF accounts online.

o From the 16th October the EPFO subscribers will get the facility to monitor their PF funds online on the

real time basis.

o It is being informed that on 16th October Mr. Modi is launching UAN number which will make the PF

account number portable and easily accessible.

o The EPFO would provide more value added services like paperless settlement of provident fund

withdrawal claims like during retirement and fixing of pension after attaining the age of 58 years.

o To make the services more better under the UAN scheme all the members are asked to the bank account

number to be seeded with the portable PF account number which will make the make PF withdrawal andother claims settlements less time consuming.

YES BANK launches first-of-its kind discounts/ deals offers on ATMs.

o YES BANK has launched a first of its kind offer at its ATMs, whereby discounts and deals are offered to

anyone who transacts at the Banks ATMs.

o To avail this delightful offer, one has to simply walk into any YES BANK ATM across the country, withdraw

cash or transfer funds, and choose any one of the great offers across categories such as books,

entertainment, clothing, food & beverages, gifting, kids, lifestyle and online shopping.

o This facility is available for YES BANK accountholders (cash withdrawal and funds transfer transactions)

and non-YES BANK accountholders (only cash withdrawal transactions).

o

In addition to this, YES BANK has also introduced a new facility for non-YES BANK account holders to

request their account statement or request for a cheque book at a YES BANK ATM.


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o This facility is currently availed to account holders of Saraswat Cooperative Bank using the NPCI Network

(National Payments Corporation of India) and will soon be offered to account holders of other banks also.

October 7

ICICI bank has rolled out a new special account for the NRI customers.o To make the banking facilities more convenient and hassle free the bank has introduced the new 'Easy NRI

account'.

o This new account offers various benefits to the customers. It will provide the facility of low monthly

average balance requirement of just Rs. 2,000. Further there will be no charges for the minimum balance

maintenance.

The Finance Ministry considering RBI proposal for creating additional posts of a COO and a fifth Deputy

Governor.

o The Finance Ministry is considering amendments to the RBI Act 1934 to enable the central bank appoint a

fifth Deputy Governor and a Chief Operating Officer (COO).

o

Finance Ministry sources confirmed that both the sides had reached an informal agreement to appoint a

COO and create the post of a fifth Deputy Governor in the RBI, but with a condition.

o The condition for COO:

The criteria for appointment COO would be from among the two Deputy Governors from the RBIs

quota.

o The condition for fifth Deputy Governor

The key criteria for appointment of fifth Deputy Governor would be a person with at least 25 years of

experience in public administration and governance.

o Objective of COO:

The COOs appointment is part of the RBIs human resources (HR) restructuring exercise.

The proposal also talks about creation of an additional position of a COO in the rank of Deputy

Governor to head one of the five functional clusters.

o About General Board of Directors :

RBI is governed by the Central Board of directors.

o The 20 Member Central Board of Directors Consists of :

Number of

Posts

Post Names

1 The Governor (Dr. Raghuram Rajan)

4 Deputy Governors

1 Finance Ministry Representatives

10 Government Nominated directors to represent important elements from

Indian economy

4 Directors to represent local boards headquartered at Mumbai, Kolkata,

Chennai and New Delhi

Each of these local boards consists of 5 members who represent regional interests, and the interests

of co-operative and indigenous banks.

o About Deputy Governors appointment:

In order to formalise the arrangement, the Finance Ministry is likely to move a Bill to amend the RBI

Act during the Budget session.

Traditionally, two Deputy Governors are from the ranks of the RBI (i.e, RBI quota), third is aneconomist and the fourth one is from the commercial banking space.


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The criteria for appointment COO would be from among the two Deputy Governors from the RBIs

quota.

At present, among the four Deputy Governors, H.R. Khan and R. Gandhi are from the ranks of the RBI,

Urjit Patel is a well-known economist, while S.S. Mundra was earlier Chairman and Managing Director

of Bank of Baroda.

October 8

Karnataka Bank has signed MOU with TVS motors.

o Karnataka Bank has planned to work with TVS motors ltd. in order to assist the authorized dealers of TVS

motors with financial assistance. Through this tie- up the bank will extend its inventory channel finance

facility to the authorized dealers of TVS Motors Ltd.

o Headquarters: Mangalore.

SBI to launch ATM cum Pos terminals.

o State bank of India has tied up with Ezetap Mobile Solutions Pvt Ltd. In association with Ezetap the bank

has planned to roll out ATM cum POS terminals.

o Objective of ATM cum Pos terminals:

To make payments and withdraws at the retail shops easier for the customers, the bank has planned

to launch this.

o How ATM cum Pos terminals works?

Through this the customers will be able to make payments through their bank accounts like any other

debit card payment. In addition to this withdrawals can be made through this fresh and innovative

measure similar to the ATM which will also help the shopkeepers.

The maximum limit is Rs. 1000. For the time being the customers can en-cash a sum of Rs. 1000 which

is paid by the store owner from his cash holding. The money gets deducted from the consumers bankaccount and gets deposited in the current account of the merchant.

o About Ezetap:

Ezetap is a Bangalore-based mobile payments service provider. It has also worked in association with

the well renowned companies like Flipkart, Bajaj Allianz, book my show and shoppers stop. With the

help of this people can shop more comfortably and conveniently.

October 9

ICICI Lombard has rolled out ''self service kiosk'' for the customers.

o The private insurance company has established self service kiosk in three major metropolitan cities Delhi,

Bangalore and Mumbai.

o With the help of the kiosk the customers will be easily able to print policy certificate, query regarding

update, make policy endorsement etc. In addition to this it also offer the facility to renew their existing

motor insurance and health insurance policies.

o Objective:

The kiosk will make the purchase of policy, renew or claim related transactions hassle. Within

seconds customer will get the facility to resolve their query, access their ICICI Lombard General

insurance policies.

UCO bank signed MOU with PSFC and PAIC

o

UCO bank and Punjab State Farmers Commission (PSFC) with Punjab Agro Industries Corporation (PAIC)signed a MOU.


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o Objective:

To boost the National pension scheme (NPS) in villages and under privileged sections of the country.

UCO bank and PSFC decided to work together to attract more people specially farmers towards the

NPS. Through this bank will also offer a proper platform to the people for their savings by providing

the facility of savings account.

October 10

FIR against the officials of AXIS bank for fraud of 20 crore.

o The Golf Technologies (P) Ltd has registered a case against the officials of axis bank for alleged fraud worth

nearly Rs. 20 crore.

o Reason: The Bank forged the signature of the time in the absence of the companys head.

o It has been claimed that the senior officials - Chief executive officer, chief operating officer of the banks

are responsible for the fraud. The company stated that the bank has imitated the fake signature of the

companys head to withdraw a sum of Rs 19. 89 crore from the companys current account to a different

companys account.

IDBI bank organised camp to help differently disabled people.

o As a part of its corporate social responsibility (CSR) IDBI bank organized a camp in Guwahati. The camp

was organized to help the physically challenged people. Through the camp different appliances were

distributed to the physically and mentally challenged people.

o Headquarters: Mumbai.

o Chairman: M.S. Raghavan.

o Founded: 1964.

o About IDBI:

IDBI Bank is on a par with nationalized banks.

It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for

the development of the fledgling Indian industry.

In 1964, it was started as development bank, later on recommendations of RBI committee headed by

S.H. Khan it was converted into commercial Bank.

Currently, Government of India held 76.72% shares in IDBI Bank.

October 11

Punjab National Bank has decided to support the Prime Ministers Swachh Bharat Abhiyan by contributing

to cleaning fund of Ganga River.

o

The Bank has plans to put his contribution in making or country clean.

o With the intent to do so the PNB bank has taken up the responsibility of two ghats in Varanasi to keep

them clean throughout the year.

o From the 2nd October, 2014 onwards the bank has taken up the drive to maintain the cleanliness at these

two ghats. Mr. jha DGM (circle head), stated that All our officers and employees participated in this

movement.

o Further the bank will also look after in repairing of its structure, paintings and others.

SBI signs MoU with NABARD for organizing a financial literacy camp in Nagaland.

o State bank of India in association with National Bank for Agriculture and Rural Development (NABARD) has

organized a financial literacy camp in Tseminyu.


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o In order to aware the people regarding the banking services and their advantages the banks organize such

camps. Chunlikha is a village where the people are unaware about the banking.

o With aim to give the knowledge reading banking SBI along with NABARD organized financial literacy camp

highlighting the need of savings account, importance of fixed deposits and various other banking facilities

October 12

All India Bank Officers' Confederation (AIBOC) has planned to go on two days strike along with the other

constituents of UBFU for the wage revision.

o From long back the banks are demanding for the revision in their wages Further the AIBOC has also

decided to stick to their working hours they will not be working on the weekends and holidays.

o In the first week of November through the two days strike they will urge their protest for the settlement

of early revision in their wages. Since IBA is not considering their demand to make any revisions in their

salaries the banks commission has planned to withdraw their cooperation and not do any extra work or

work after their office hours. The workers are quite upset with the IBAs behavior towards their genuine

demand of wage revision.

o In addition to this there will also be a massive rally at Jantar Mantar on October 13 protesting

demonstrations along with UBFU constituents.

Clarification regarding 'free transactions at non home ATM branches'.

o RBI has unveiled that the number of free transactions at non-home ATM branches will remain to be five.

o Previously it was expected that the free transactions will be reduced to three, but now RBI has cleared

that free transactions will remain five at both the metro centres and other locations.

o But for the six metropolitan cities Delhi, Mumbai, Chennai, Banglore, Kolkata and Hyderabad the number

free of cost transactions at non home branches of ATMs would be three only.

o

Other than these six cities there will be facility of five free transactions. Banks are, however, free to offermore number of free transactions a month at other bank ATMs as well as own ATMs in any geographical

location.

Federal bank joined hand with IIFL group to offer broking services.

o Federal Bank has planned to join hands and work with India Infoline, a part of IIFL Group. Through this tie

up the bank aims to offer improved broking services to the customers.

o The bank has reported that, this initiative of the bank will assist the customers with the enhanced quality

broking service in India as well as abroad. The customer will be provided with IIFL broking services.

Appraising the services provided by IIFL group, President, Treasury and Head, Network II, Federal Bank

stated that IIFL is one among the best broking service provider. Through this tie up the Federal bank

customers will get the opportunity to link with IIFL group.

October 13

First-of-kind ''kayPay'' FB based money transfer system launched by Kotak Mahindra bank.

o Kotak Mahindra bank has rolled an innovative payment system for facebook users customers. To make the

payments instantly the bank has introduced Kaypay payment system. This system will allow the facebook

users to send money to each other.

o The bank reported that this system will eliminate the need to have net banking, details of the bank

account of the payee. Bank account holders can now transfer money at any point of the day or night. This

is an innovative system launched by bank to make the payment system hassle free. After the transactionboth the sender and receiver will get a notification through facebook.


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o This is a free of cost system. The user simply needs to register his/her bank account which participates in

the IMPS on the Facebook or www.kaypay.com.After getting successful registration the customers can

enjoy the benefit of this secure and payment system.

o Technology used IMPS.

IOB bank to work with Naturals to assist women entrepreneurs.

o Indian overseas bank has planned to work with Naturals a hair and beauty chain. The bank is planning to

expand its services in the northern India, with the help of naturals. The bank will be providing the women

with the collateral free loan who are planning to set up Naturals salon, Spa or lounge.

o Through this tie the women entrepreneurs will be offered with collateral free loan and in addition to this

the third party guarantee would not be necessary. The bank will assist all the first time women

entrepreneurs with financial assistance to start up their Naturals salon.

o The bank has already received an overwhelming response for this in south India by help the women over

there. In south the bank has assisted in setting up 46 Naturals salon. Now with the same criterion the bank

will provide loan facility in north India to women entrepreneurs.

October 14

IRDA set-up committee for ''corporate governance, disclosure norms''.

o Insurance Regulatory and Development Authority (IRDI) will align its corporate governance and disclosure

norms in accordance with the new Companies Act, 2013.

o For this, IRDA has set up a 12-member committee under its member R.K. Nair.

o Objective:

In order to bring harmony between the corporate governance and disclosure requirements of the

Authority and the Companies Act, 2013, the Authority has decided to constitute a working group

harmonising IRDA Corporate Governance Guidelines and Disclosures with Companies Act, 2013.o About CSR

o In 2014, India became the world's first country to enact a mandatory minimum CSR spending law. Under

Companies Act, 2013, any company having a net worth of 500 crore or more or a turnover of 1,000 crore

or a net profit of 5 crore must spend 2% of their net profits on CSR activities. The rules came into effect

from 1 April 2014.

Criteria (in crores) Contribution of Company

Net profit 5 2% of their net profits

Net worth 500 2% of their net profits

Turnover 1000 2% of their net profits

October 15

First women oriented banking branch in Himachal Pradesh.

o Kangra Central co-op bank is launching its ever women oriented branch.

o For the first time a bank in Himachal Pradesh is launching a women oriented branch in the state. On the

New Year occasion 1st January 2015 the branch will become operational. The branch will be launched in

Depot Bazar locality.

o After this branch bank will further set up 5 new such branches in 5 different districts of the state. The bank

is also extending its ATM services to all the customers of the country and abroad from 16th of this month.

For this bank has already issued 3,000 ATM cards.

Union bank of India introduced bill payment service for MTNL users.
http://www.gr8ambitionz.com/http://www.gr8ambitionz.com/http://www.gr8ambitionz.com/http://www.gr8ambitionz.com/http://www.kaypay.com./htt

Documents

Recent Banking Updates (Part II)