BANKING & FINANCE


Monthly Current Affairs September 2016 “BANKING & FINANCE” key points to Remember.
Eventhough the Finance Ministry is still optimistic of close to 8 per cent growth this fiscal, the Central Statistics Office on Wednesday said the country’s GDP grew at 7.1 percent in the first quarter.
The Canadian Province of British Columbia becomes the first foreign governmententity to issue
a Masala bond, choosing London, the global home for Masala bonds, for its listing.Initial price
guidance for the benchmark-sized offering with a tenor of three years and four months is 6.68-6.73
percent.
Govt Notifies Constitution Of Monetary Policy Committee Under RBI Act
The appointments committee of the cabinet approved the names of Chetan Ghate, a professor at Indian
Statistical Institute, Pami Dua, director at Delhi School of Economics (DSE); and Ravindra Dholakia,
professor at the Indian Institute of Management, Ahmedabad,
The Government has decided to raise the Employees Provident Fund ( EPF) investment in Exchange
Traded Funds from present 5 per cent to 10 per cent.
Interest rates on small savings schemes have been reduced marginally by 0.1 percent for the OctoberDecember
quarter of 2016-17, leading to lower returns on Public Provident Fund, Kisan Vikas Patra,
Sukanya Samriddhi Account, among others.
Karnataka Bank has inked a memorandum of understanding(MoU) with Birla Sun Life Asset
Management Company for distribution of mutual fund products.
Maharashtra based DCB Bank launched its Unified Payment Interface (UPI) application. The UPI
interface was billed as a revolutionary of sorts in digital banking by the NCPI.
ICICI Prudential Mutual Fund was appointed by the government to manage the second CPSE
exchange traded fund (ETF) comprising stocks of PSUs in the current fiscal with an estimated corpus
of Rs.6,000 crore. The appointment criteria and evaluation process comprises both technical and
financial parameters. The competitors were Reliance, HDFC SBI, UTI, Kotak and Birla Sunlife.
The RBI has given approval toRs 26,000-crore cash credit limit (CCL) for purchasing paddy in pollbound
Punjab. The state government will seek approval of the Centre by sending the RBI’s approval
letter for the release of funds for the purchase of paddy
The first meeting of the GST Council, the tax department today came out with three draft rules and
their formats relating to registration, invoice and payments which would be finalised by week-end.
The World Trade Organization lowered its global trade forecast, warning that antiglobalisation
rhetoric and Brexit were pushing trade growth to its slowest pace since the financial
crisis. The WTO announced that global trade was now estimated to expand by just 1.7 percent this
year, compared to its April projection of 2.8 percent.
According to New World Wealth, India’s financial capital Mumbai, home to 45,000 millionaires and
28 billionaires, is the wealthiest city in the country with total wealth of $820 billion.
DCB Bank, an emerging new-generation private sector bank, announced the launch of mVisa, a
mobile based payment solution that will make payments at retail outlets much easier.Now Customers
can pay now through their smartphones by scanning the unique Quick Response (QR) code at the
retail outlet.
MobiKwik, fin-tech player has launched one-step offline payments with ‘Bubble Pin’.The pin is a
combination of numbers and alphabets. Bubble pin also makes the transaction more secure as no
phone number is required to be shared.
ICICI Bank has announced the deployment of Software Robotics for business processes across various
functions of the bank. The bank said that the software robots have reduced the response time to
customers by up to 60% and have increased accuracy to 100%.
Reserve Bank has allowed foreign investors to buy up to 100 per cent in Crompton Greaves Consumer
Electricals Ltd. Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs)
can now invest up to 100 per cent of the paid up capital of Crompton Greaves Consumer Electricals
Limited under the Portfolio Investment Scheme (PIS).
HDFC ERGO, a leading Private sector non-life insurer has implemented Weather Based Crop
Insurance Scheme (WBCIS) in Assam, Uttarakhand and Madhya Pradesh.
World Bank Group President Jim Yong Kimand New Development Bank President K.V.
Kamath signed a Memorandum of Understanding(MoU) to strengthen their cooperation in addressing
global infrastructure needs in Washington D.C on Sept. 9, 2016.
Electricity generator Tata Power and ICICI Venture grouped together to take over stressed power
assets in India. Tata Power holds a 26 per cent stake and ICICI Ventures holds 74 per cent stake in
Resurgent Power Ventures.
BSE Ltd, India’s second-biggest stock exchange filed for an initial public offering (IPO) in order to
list its shares on larger rival National Stock Exchange (NSE). Earlier BSE filed draft papers with
markets regulator Sebi to raise an estimated Rs 1,200 crore to Rs 1,300 crore through initial public
offering (IPO).
FreeCharge partnership with Axis Bank and launched Unified Payments Interface (UPI) that allows
instant transactions from a smartphone using a virtual payment address (VPA)
e-nivaran(electronic resolution) for online redressal of taxpayers’ grievances launched
by CBDT(Central Board of Direct Taxes). Taxpayers can register complaints related todelay in
refunds, filing of e-returns, Tax Deducted at Source (TDS), PAN issues, and those pertaining to their
Assessing Officer (AO).
India is among the 10 richest countries in the world with total individual wealth of USD 5,600
billion India is among the top prospective markets for luxury brands worldwide according to the study
by New World Wealth, India, along with Sri Lanka, Vietnam, mauritius and China, offered strong
opportunity for growth in luxury and wealth management space.
Private sector Bank, Axis has tied up with Banaras Hindu University (BHU) to offer specialised
banking courses.The partnership will offer courses like Masters in Commerce (MCom), Master of
Financial Management (MFM), Master of Financial Management (Risk & Insurance) MFM – RI,
Master of Foreign Trade (MFT).
The National Highways Authority (NHAI) reported that the State Bank of India,Punjab National
Bank, IDFC Bank and the digital wallet PayTM would also start issuing the tags, which were required
for electronic toll collection.
The Reserve Bank of India (RBI) announced India’s foreign exchange reserves went up to$371.27
billion as on September 9. According to data released by the RBI, the reserves stood at $371.27 billion
as on September 9, as against $367.76 billion as on Sep 2.
Tata AIG General Insurance Company Limited had joined hands with mobile payments’
company Paytm to provide health insurance to cab and auto drivers.
Federal Bank, Kochi-based Private Sector Bank has launched its second Federal Skill Academy at
Coimbatore, as part of its Corporate Social Responsibility(CSR) initiatives. The first one being
inaugurated last year at Ernakulam.
Infrastructure Development Finance Company(IDFC) Limited has issued commercial Papers of
Rs.700 crore. The company issued Commercial Papers for an aggregate amount of Rs 700 crore on
September 12, 2016 having maturity date ofSeptember 29, 2016.
BSE Sensex collaborate with Twitter to provide live updates of S&P to its investors.. It is the first
collaboration in Asia between a stock exchange and a social networking site.
Moody’s reported that the reform process was slow and gradual with muted private investment and
NPAs posing a challenge and announced that it could upgrade India’s rating in 1-2 years if it was
convinced that reforms were tangible.Moody’s, which has a ‘Baa3’ rating with a positive outlook,
reported evidence of policymakers working towards a faster fiscal consolidation, reducing the debtGDP
ratio and addressing infrastructure and monsoon volatility challenges would determine an
upgrade.
ICICI Prudential Life Insurance IPO opens. ICICI Bank owns 68 percent of the company and decided
to sell 12.65% stake though this IPO.At the upper end of the price band, IPO would raise over Rs 6000 Cr. Britain’s Prudential PLC, which owns nearly 26% of the company, was not selling any of its stake
in the IPO.
Multilateral funding agency Asian Development Bank (ADB) approved a loan of $631
million or Rs.4228.9 crore (at Tuesday’s exchange rate) for building India’s first coastal industrial
corridor between Visakhapatnam and Chennai.
World Bank will invest nearly 1,000 crore rupees in Assam for the betterment of the inland
waterways. The amount will be utilised to develop inland waterways including ghats.
Public sector lender Vijaya Bank had launched e-deposit facility to facilitate term deposits by
customers in its bid to ramp up deposit base of the bank. E-deposit would facilitate the existing Vijaya
Bank customers to open term deposit accounts through e-banking facility. The three innovative
information technology products had launched VPAYQWIK, Vijaya *99# and V-eConnect+.
Kotak Mahindra Bank (KMB) has launched an application, “Kotak Now” that would allow new
customers to open an account. It is an end-to-end application wherein a customer will be able to open
a bank account within 10 minutes.
Public sector lender Andhra Bank announced that it had entered into agreements with private
insurers Cigna TTK and Reliance General Insurance to provide health and general insurance services
to its customers.
HDFC, Airtel and State Bank of India named in the Top 50 valued brands by the The third annual
BrandZ Top 50 Most Valuable Indian Brands report released by WPP and Kantar Millward Brown.
The list is topped by Moratge lender HDFC.
Mobile payments and loans start-up ftcash in association with ICICI Bank is the first fintech startup
to launch Unified Payment Interface (UPI) to provide flexibility to our 5,000-plus merchants to
accept electronic payments at a lower cost and better convenience.
Insurance Regulatory and Development Authority(IRDAI) has imposed a penalty of Rs 10 lakh and
another penalty of Rs 5 lakh has been imposed on SBI Life Insurance. For violations of various norms,
including guidelines on accepting business from a corporate agent after the expiry of licence. It had
done 621 policies after expiry of licence
Maharashtra Finance Minister Sudhir Mungantiwar and Chairperson of Samruddhi Cooperative
Bank Kanchan Gadkari launched the Bank’s first-ever RuPay Card in central India.