Exercise Quiz & Test – 23
1. ____ to sell private banking business in India to Sanctum Wealth
d. World Bank
* the Royal Bank of Scotland (RBS) has decided to sell its private banking business in India to Sanctum Wealth Management, in line of its prior decision to exit the Indian market. Britain’s largest public bank Royal Bank of Scotland (RBS) has signed a non-binding framework agreement with Sanctum Wealth Management, which is a start up firm set by Shiv Gupta. He is also the present managing director of RBS’ private banking operations in India. RBS has four private banking offices in India located in New Delhi, Mumbai, Bengaluru and Chennai. The reason behind this decision is to formulate RBS into a stronger, more sustainable and simpler business for its aim to consolidate its business in the UK and Western Europe.
2. ______ acquires RBS’ bullion financing business for Rs 4,100 crore
a. Indusland Bank
b. Syndicate Bank
* IndusInd Bank has acquired the diamond and jewellery (bullion) financing business and related deposit portfolio of Royal Bank of Scotland (RBS) for 4,100 crore rupees on 28 July 2015. Britain’s largest public bank Royal Bank of Scotland (RBS) was in talks with IndusInd Bank to sell off its bullion financing business and had signed a non-binding agreement in April 2015. According to the agreement RBS’s employees within the diamond and jewellery clients in India would be transferred to IndusInd Bank. RBS in 2008, had acquired ABN AMRO Bank the oldest banks in diamond and jewellery financing and started dealing in bullion financing in India through RBS Mumbai branch. The reason behind this sell-off comes on the back of RBS’s decision in 2013 to exit its banking operations from India and to consolidate its business in UK and Western Europe. However, it has decided to retain its back-office operations in India and has moved over 60 back-offices roles from the UK to India that has workforce of 12,000 people. Prior to RBS’s decision it had shut down its 23 out of 31 branches in India and had also sold off its credit card business, commercial banking portfolios and mortgage business to Ratnakar Bank Ltd (RBL) Bank in 2013.
3. ___ formed Financial Inclusion Fund with Rs. 2000 crore corpus
* Reserve Bank of India (RBI) has established Financial Inclusion Fund (FIF) with Rs. 2000 crore corpus expanding reach of banking services. This fund will support the developmental and promotional activities covered under the financial inclusion initiatives.
4.CSC and ___ forms joint venture to provide technology services, solutions to banks
* Computer Science Corporation (CSC) and Hindustan Computer Limited (HCL) to big IT companies have signed an agreement to form a new company to provide technology services and solutions to the banking industry. In the joint statement the partners said that their main focus will be on platform modernisation, product functionality enhancement and to capitalise their capabilities in addressing global core banking software market. According to the agreement CSC that serves in 15 countries with 100 premier banking and financial services clients, will provide its core banking expertise for software and product development. Whereas, HCL will provide funds, it’s banking sales and client engagement expertise and also its experience in product engineering and application implementation services in order to modernise the banking industries. The two entities have agreed to work in accordance to meet the increasing demands for data analytics services, regulatory compliance and multi-channel deployments from the banking industries.
5. ____ gets banking licence from RBI
* Infrastructure Development Financing Company (IDFC). Ltd became second lender to enter the banking sector since 2004, as the Reserve Bank of India granted Banking licence on 24 July 2015. It was Yes Bank that got banking licence in 2004. However, IDFC and Microfinance Company Bandhan Financial Services Pvt Ltd were granted preliminary bank permits by RBI in April 2014 and Bandhan got Banking licence from RBI in June 2015 and plans to start its operations from August 2015, whereas IDFC plans to start operations from 1 October 2015. IDFC will start its operations with 20 branches and with initial loan book of 55,000 crore rupees.
6. Anand Krishnamurthy appointed CEO and MD of ____ bank
* Anand Krishnamurthy is now the new MD and CEO of Catholic Syrian Bank (CSB) replacing Rakesh Bhatia who had quit due to personal reason. This appointment was done by the board of directors of CSB among the three named sent to RBI.
About The Catholic Syrian Bank (CSB):
The Catholic Syrian Bank is 94 year old private sector bank founded on 26th November 1920. It has its strong base in Kerala along with significant presence in Karnataka, Tamil Nadu and Maharashtra. Recently it has filed for an IPO for 400 crore rupees.
7. ____ bank starts its operations from Shanghai, China
b. World Bank
* The New Development Bank (NDB) created by Brazil, Russia, India, China and South Africa (BRICS) nations formally started its operations from its headquarters in Shanghai, China. Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang Xiong and the bank’s first President K V Kamath from India attended the opening ceremony.
Purpose: To fund infrastructure projects in the emerging economies. It is seen as an alternative institute to west dominated World Bank and the International Monetary Fund (IMF).
Capital: It will have initial capital of US 50 billion dollars and will be raised to US 100 billion dollars within the next couple of years.
Each members role: They will have an equal say in the bank’s management, regardless of GDP size and contribute an equal share in establishing a startup capital.
President: Eminent banker Kundapur Vaman Kamath from India is President of Bank for the first five years i.e. till 2020.
8. ____ , Central Bank of Sri Lanka ink currency swap agreement
c. World Bank
* Reserve Bank of India has signed a special currency swap agreement with the Central Bank of Sri Lanka (CBS). Under this agreement, Sri Lankan bank can draw up to 1.1 billion dollars for a maximum period of 6 months. It was signed with an intention to mitigate the possible currency volatility in the spirit of strengthening bilateral relations and economic ties of India with Sri Lanka. It should be noted that, this special arrangement was signed in addition to the existing Framework on Currency Swap Arrangement for the SAARC member countries.
SAARC Currency Swap Framework :
This Currency Swap Framework is signed between SAARC member countries. It seeks to provide a backstop line of funding to member countries in order to meet any balance of payments and liquidity crises. During the crisis, this fund will be provided till longer term arrangements are made or till the need for short-term liquidity due to stressed market conditions.
9. _______ to provide Rs 30,000 crore credit to farmers for irrigation
* State-run National Bank for Agriculture and Rural Development (NABARD) has set a target of providing 30,000 crore rupees as credit to farmers for irrigational purpose. It was announced by Bank’s Chairman and Managing Director Dr. Harsh Kumar Bhanwala in Mumbai on the occasion of 34th Foundation Day of NABARD. This credit will be provided over the next three years i.e. till 2018 and for this NABARD already has sanctioned 1,000 crore rupees. This funding will be in addition to the government’s 50,000 crore rupees of loans to farmers over the next five years (till 2020) under the Pradhan Mantri Krishi Sinchai Yojana (PMKSY). Besides, it was also announced that NABARD has been accredited as the national implementation agency for climate change at the rural level by the Green Climate Fund (GCF). It should be noted that, NABARD is only the banking entity from South Asia to be shortlisted for the purpose by GEF. The World Bank and Asian Development Bank among others are the 20 such entities which have already been shortlisted.
10. _____ launches eSign Services
* eMudhra Limited, a leading certifying firm in the country for digital signatures launched first of its kind eSign services in the country as part of the Digital India Vision. eSign is an online electronic signature service legally valid and secure under the Information Technology Act, 2000. It will facilitate an Aadhaar holder to digitally sign a document within seconds. It seeks to pave the way for a digital transformation into a paperless environment by revolutionising the way of business and governance conducted in the country. eMudhra Limited also launched eMlocker which facilitates a person to store important documents such as Aadhaar cards, PAN cards, electricity bills or any other documents electronically.
eMudhra Limited is a statutory licensed Certifying Authority of India to issue digital signature certificates. Established: in 2008 under the Information Technology (IT) Act, 2000. eMudhra offers variety of other services including Tax filing Services, Digital Signing Solutions, PAN Card Online applications. Digital Certificate Authentication System and Trusted Time Stamping etc. Its clients are corporates, Banks, government organizations, individuals and several small and medium businesses.
It is an electronic signature used to authenticate the identity of the sender and signer of a message or document. It ensures that original content of the message or document remains unchanged or tapered after it is send.