BANKING Awareness November 2017

Copyright@Study-IQeducation

IBPS PO / RBI Grade B/ SSC/ UPSC

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

Copyright@Study-IQeducation,Allrightsreserved

RBLBankOpensAllWomenBranchinChennai

PrivatesectorRBLBank hassetupanallwomenbranchinChennai,TamilNadu.Thebranchwouldbemanagedbyeightwomenandofferallproductsand

servicesacrossliabilityandassets.

RBLBankcurrentlyserves3.54millioncustomers.Ithas246branchesand389ATMservicesacrossthecountry.

RBLrecentlyannouncedthatithasacquiredanadditionalstakeinSwadhaarFinServe Pvt Ltd.

AsperthefilingmadetotheBombayStockExchange(BSE),thecompanyhasanadditionalholdon2.08percentstakeinSwadhaar,therebyincreasingthebrand’sshareholdingin

Swadhaar to60.48percent.

HQRBL:Mumbai

CEO&MD: Vishwavir Ahuja

RBIRejectsHDFCBank'sRequesttoDeclassifyHDFCasFII

TheReserveBankofIndiahasreportedlyrejectedHDFCBank'spleatodeclassifyitsparent HousingDevelopmentFinanceCorporationLimited (HDFC)asaforeigninstitutionalinvestor(FII).

India’slargestlenderbymarketcapitalisation, HDFCBank hadrequestedthegovernmenttodeclassifyHDFC,andthegovernment,inturn,wrotetoRBIseekingitsopiniononthematter.

TheRBI,however,hasrejectedtherequestciting currentruleswhichrequireHDFCtobe classifiedasFII.

INFEBRUARY2017TheforeignshareholdingbyADR/GDR/FIIs/FPIs/FDI/NRIs/PIOsinHDFCBankLtdcrossedtheoverall

limitof74percentofitspaid-upcapital

Banking: Private SectorBanking: Public Sector

74% (FDI + FII) by FIPB if beyond 49%20% (FDI + FII) FIPB

AmericanDepositoryReceipts,GlobalDepositoryReceipts

ADRandGDRarecommonlyusedbytheIndiancompaniestoraisefundsfromtheforeigncapitalmarket.TheprincipaldifferencebetweenADRandGDRisinthemarket;theyare

issuedandintheexchange,theyarelisted.While ADR istradedonUSstockexchanges, GDR istradedonEuropeanstockexchanges.

Banking: Private SectorBanking: Public Sector

74% (FDI + FII) by FIPB if beyond 49%20% (FDI + FII) FIPB

ThemovewillhaveanimpactonHDFCBank'sfundraisingprogrammefromqualifiedinstitutionalplacement(QIP).

FIIsbeingbarredfrominvestinginthebankwilllimitthefundraisingoptionsasitcanonlyberaisedfromdomesticinvestors

HDFCBankCEO- AdityaPuriHeadquarters- Mumbai.

ForeignInstitutionalInvestor(FII)meansaninstitutionestablishedorincorporatedoutsideIndiawhichproposestomakeinvestmentinsecuritiesinIndia.TheyareregisteredasFIIsinaccordancewith Section2(f)oftheSEBI(FII)Regulations1995.FIIsareallowedtosubscribetonewsecuritiesortrade

inalreadyissuedsecurities

Followingforeignentities/fundsareeligibletogetregisteredasFII:

PensionFundsMutualFunds

InvestmentTrustsBanks

InsuranceCompanies/ReinsuranceCompanyForeignCentralBanks

ForeignGovernmentalAgenciesSovereignWealthFunds

International/Multilateralorganization/agencyUniversityFunds(Servingpublicinterests)Endowments(Servingpublicinterests)Foundations(Servingpublicinterests)

CharitableTrusts/CharitableSocieties(Servingpublicinterests)

AirIndiaGetsRs1,500-crLoanfromBankofIndia

Debt-laden AirIndia hasreceivedaloanworthofRs1,500crorefrom BankofIndia tomeeturgentworkingcapitalneedslessthanamonthafterfloatinga

tenderinthisregard.

Forthesecondtimeinrecentmonths,theflagshipcarrierhasreceivedloansfromapublicsectorlender.

AtenderwasissuedbythecarrieronOctober18inwhichithadsoughtgovernmentguarantee-backedshort-termloanstotalling uptoRs1,500croreto

meet"itsurgentworkingcapitalrequirements

Priortothat,theairlinehadborrowedaroundRs3,250croreasshorttenureloansfromtwolenders— IndusIndBank and PunjabNationalBank

AirIndiaissurvivingontaxpayers'moneyunderthebailoutpackageextendedbythepreviousUPAgovernmentin2012.

Aspartoftheturnaroundplan,thenationalcarrieristoreceiveuptoRs30,231crore fromthegovernmentoveraten-yearperiodsubjectto

meetingcertainperformancethresholds.

Aspartofeffortstorevivetheailingcarrier,whichhasadebtburdenofmorethanRs50,000crore,thegovernmentisintheprocessoffinalising

thecontoursofitsstrategicdisinvestment

PNBMetLifeinDistributionPactwithBankofBahrainandKuwait

LifeinsurerPNBMetLifehassignedacorporateagencyagreementwithBankofBahrainandKuwaitB.S.C(BBK).

Thistie-upwillhelpPNBMetLifedistributeitsretailandgroupproductstoBBK’scustomersinIndia.

Withthispartnership,BBKcustomersinIndiawillgetaccesstoPNBMetLife’sentireportfolioofproductsrangingfromhealth,savings,andwealthtoruralplans.

Asondate,BBK,whichisoneofthelargestcommercialbanksinBahrain,hasbranchesatMumbai,Hyderabad,Aluva andNewDelhi.

PNBMetLifeIndiaInsuranceMDandCEO- Ashish Srivastava,

RBIReleaseNewOutsourcingNormsforNBFCs

Non-bankingfinancialcompanies(NBFCs)cannotoutsourcecoremanagementfunctionslikeinternalaudit,strategicandcompliancefunctionsforknowyour

customer(KYC)norms,sanctionofloansandmanagementofinvestmentportfolio.

RBIissuedfreshdirectionsonmanagingrisksandcodeofconductinoutsourcingoffinancialservicesbyNBFCs.

Accesstocustomerinformationbystaffoftheserviceprovidershallbeon'needtoknow'basisi.e.,limitedtothoseareaswheretheinformationis

requiredinordertoperformtheoutsourcedfunction.

NBFCshavetoensurethatserviceprovidersareabletoisolateandclearlyidentifytheNBFC'scustomerinformation,documents,recordsandassetsto

protecttheconfidentialityoftheinformation.

Anyleakageofconfidential customerrelatedinformationshouldbereportedtothecentralbankimmediately.

Aboardapprovedcodeofconductfordirectsalesandrecoveryagentsshouldalsobeputinplace.

TheNBFCandtheiragentsshallnotresorttointimidationorharassmentofanykind.

NBFCsalsohavebeenaskedtoconstituteagrievanceredressalmachinery withthenameandcontactdetailsoftheredressalofficerdisplayedprominentlyat

theirbranches.

WHATARENBFCs?

Non-bankfinancialcompanies(NBFCs) arefinancialinstitutions thatprovide banking serviceswithoutmeetingthelegaldefinition ofabank, i.e.one

thatdoesnotholda bankinglicense.

NBFCsincludealoancompany,aninvestmentcompany,assetfinancecompany(i.e.acompanyconductingthebusinessofequipmentleasingorhirepurchasefinance)andResiduaryNon-BankingCompanies.NBFCsareincorporatedunder

theCompaniesAct,1956.

NBFCscanbeclassifiedintotwobroadcategories, viz.,

(i)NBFCsacceptingpublicdeposit(NBFCs-D)and

(ii)NBFCsnotaccepting/holdingpublicdeposit(NBFCs-ND).

ThereareafewdifferencesbetweenabankandNCFC,asgivenbelow:

NBFCcannotacceptdemanddeposits;

NBFCsdonotformpartofthepaymentandsettlementsystemandcannotissuechequesdrawnonitself

NBFCcannotissueDemandDraftslikebanks.

DepositinsurancefacilityofDepositInsuranceandCreditGuaranteeCorporationisnotavailabletodepositorsofNBFCs,unlikeincaseof

banks.

FederalBankgetsRBInodtoopenofficesinKuwait,Singapore

FederalBankhasobtainedRBIapprovaltoopenrepresentativeofficesatKuwaitandSingapore.

ThebankhasbeenthepreferredbankerforNRIsandtheNRIfriendlymeasureshaveresultedinincreasinginflowofforeignremittances.

ThebankalreadyhasitsrepresentativeofficesinAbuDhabiandDubaiandithastiedupwith110+overseasbanks/remittancepartners.

IthasalreadyreceivedapprovalfromRBIforopeningabranchinDIFC,Dubai andarepresentativeofficeinBahrain,thesettingupofwhichisunderprocess.

HeadquartersFederalBank: Aluva,kochi

FederalBank MD&CEO- Shyam Srinivasan.

DeputyGovernorofRBI: BPKanungo,SS Mundra,NSVishwanathanand ViralAcharya.

IDFCBankPartnerswithMobiKwik

IDFCBankhasenteredintoa“strategicalliance”withmobilewalletmajorMobiKwiktolaunchaco-brandedvirtualVisaprepaidcardforcustomersof

MobiKwik.

OneneednotbeacustomerofIDFCBanktousetheco-brandedpre-paidcard.

TheVisavirtualpre-paidcardfacilityisalreadyliveby“invitation”andisexpectedtoopentoallMobiKwikusers(bothAndroidandiOS).

Thispre-paidcardwillnowallowMobiKwikuserstoshopfromAmazonorFlipkart wherecurrentlyMobiKwikwalletuseisnotallowed.

ThisVisapre-paidcardisreplicaofthewalletandcanbeusedanywhere

WithintheMobiKwikApp,auserwillbeabletogenerateaVisapre-paidcard.

RecentTiesupofMobiKwik:

IRCTCRailconnectappunderwhichuserscannowpaythrough MobiKwik'sPaymentGateway,whilebookingtheirticketsonIRCTC.

WithInduSind Bankforaco-brandedwallet‘IndusIndMobiKwik’ thatallowsitscustomerstopayattheMobiKwikmerchantnetworkusingtheiraccounts,with

a’DirectDebitFeature’

HeadquartersIDFC: Mumbai

CEOIDFCBank: RajivLall

MobiKwikHQ:Gurugram

CEO: BipinPreetSingh

HDFCBankLaunchedSmartUpZoneinKochi

HDFCBankhasannouncedthelaunchofitsSmartUpZoneinKochi,anexclusiveareainsidethebranchdedicatedforstart-ups.

Inthefirstphase, SmartUpZones willbesetupattwobranchesinthecityatInfoparkandKakkanad.

Nationally,thereareover47,000start-upsdoingbusinessinIndia.SmartUpZoneswillbelaunchedinover65branchesin30citiesacrossIndia,includingtier2and3citiesthat

areemergingasstart-uphubs.

Throughthesezones,speciallytrainedbankstaffwilloffertailor-madebankingandadvisorysolutionstoentrepreneurs

BankofChinaBeginsOperationsinPakistan

BankofChina hasformallylaunchedits operationsinPakistan,withits firstbranchinauguratedinKarachi.

Bankwouldstrengthenthe"brotherlyrelations"betweenthetwocountriesinthefinancialsector.

PresidentandChairman,BankofChina:ChenSiqing

ICICIBankTeamswithAppletoLaunchVoice-BasedInternationalRemittanceService

ICICIBank,India’slargestprivatesectorbankbyconsolidatedassets,announcedthelaunchofIndia’sfirstvoice-basedinternationalremittanceservicetoenablenon-

residentIndians(NRIs) tosendmoneytoanybankinIndia.

WiththisnewfeatureintheICICIBank’sMoney2Indiaapp,anNRIcustomercaninstantlyinitiatearemittancetohis/herexistingpayeesinIndiawithjustasimplevoicecommandtoApple’svirtualvoiceassistant,Siri,onhis/herAppleiPhone /

iPad.

Afirst-of-itskindcrossborderremittanceservicebyabankinthecountry,itimprovescustomer’sconveniencesignificantlyasitreplacesafive-stepprocess,

whichwasrequiredtoinitiatearemittancetoIndiaearlier.

Togetthebenefitofthisuniqueoffering,thecustomerneedstosimplyspeakoutthe ‘nickname’ oftheregisteredpayeeintheMoney2India(M2I)appto

whomhe/shewantstosendthemoneytoandtheamounttobesent.

Forexample,thecustomercaninitiatetheprocessbysimplysaying“Send$100toMomwithMoney2India”.

Basedonthisvoiceinstruction,Siri convertsthevoicecommandtotextusingNaturalLanguageProcessing(NLP)andpopulatesaninterfaceforconfirmation

withthedetails.

Thecustomerisnolongerrequiredtoenterthepayeenameoramounttobetransferred,sincehe/shewouldbeusingavoicecommandtoprovide

instructionstoSiri.

Hereishowitworks:

ActivateSiri > Simplyspeaktoit- “Send<Currency><amount>to<Recipientnickname>”(Say‘SendUSD100toMotheronMoney2Indiaapp’)

ConfirmthedetailspromptedbySiri > thisopensthehomepageofM2Iapp.SimplylogintotheappusingTouchid/mPin /userid&password

Validatedetails> Confirmthetransactiondetail,selectpurposeoftransferandclicksubmittotransferthemoney

Theentireprocessissecuredbythetwofactorauthenticationparameterofdeviceauthenticationandsecureloginbythecustomer.

AlltransactionstakeplaceonthesecureserversofICICIBankwithintheM2Iappitselfandnoconfidentialorfinancialinformationis

shared.

Available24x7andon-all-days,thisservicecanbeusedbytheusersof‘Money2India’mobileappusingAppleiPhone oriPad withiOS

version10andabove

AUSmallFinanceGetsScheduledCommercialBankStatus

AUSmallFinanceBank hasreceivedReservedBankofIndia(RBI) approvaltooperateasScheduledCommercialBank.

Thisbank'snamehasnowbeenincluded intheSecondScheduleofReserveBankofIndiaAct,1934.

NowAUSmallFinanceBankwillbeabletodoborrowingandlendingwithRBIunderLiquidityAdjustmentFacility(LAF)andMarginalStandingFacility(MSF).

ItwillalsoenableAUSmallFinanceBanktoissueCertificateofDeposits(CDs)oncompetitiveinterestratesinthemarkettogetliquidity.

AUSmallFinanceBankstarteditsbankingoperationfromApril19 2017.

Priortobecomingabank,asAuFinanciers(India)Ltd(anAssetFinanceNBFC),thecompanyhadgainedover20yearsofexperienceinfinancingtheunbanked

andunderbanked segmentinruralandsemiurbanareas.

MD&CEO,AUSmallFinanceBank:SanjayAgarwal

YesBankUnveilsBhim YesPay

YESBANK,India’sfifthlargestprivatesectorBankunveiledasuperiorpaymentwalletservice, BHIMYESPAY byfullyintegratingtheapplicationwithallthe

IndiaStack APIsandNPCIProducts.

YESBANKhasover 5.5lakhregisteredusers onBHIMYESPAYandmorethan 2lakhusers havealreadyavailedeitherUPIorVirtualCardServicestocarryoutP2P

paymentsandonlineshopping.

Thefreshlyupdatedapplication,BHIMYESPAY,whichisavailableforAndroidUsersandwillsoonbemadeavailableforiOSusers,integratesthreeotherproductsofNational

PaymentCorporationofIndia(NPCI)– RuPay VirtualCard,BharatQR andBBPSinadditiontootherpaymentinfrastructurelikeUPIandIMPS.

WiththeRuPay virtualcardintegratedintheirBHIMYESPAYwallet,userscanalsoutilizetheirwalletbalancetomakepaymentsacrosswebsitesandapplicationsonline,

similartohowtheycurrentlyusetheirdebitcardsbutwithoutthehassleofcarryingonealong.

BharatQR aimstoeliminatetheneedforpoint-of-saleterminalsbyallowinguserstopayusingtheircardssimplybyscanningaQRcodeatanyretailoutlet.Theadvantageistwo-fold- customersneednotcarrytheircardsanymoreandshopkeepersneednotinvestin

point-of-salemachinestoreadcardsattheirend.

Also,withthethirdservice,theBharatBillPaymentService(BBPS),acentralizedonepointbillpaymentservice,BHIMYESPAYuserscandirectlypay

alltheirbillsinstantlyatonce,fromtheirmobileapp.

HQ :Mumbai

CEO:Rana Kapoor

SBICutsBenchmarkLendingRateby0.05%AcrossMaturities

Thecountry'slargestlender StateBankofIndia (SBI)slashedbenchmarklendingrateby0.05percentacrossmaturities.

Thereductioninmarginalcostoffundsbasedlendingrate(MCLR)cameafteragapofalmost10months.ThebankhadlastcuttherateonJanuary1.

Withthereduction,theMCLRforoneyearhascomedownto7.95percentfrom8percent

TheMCLRonovernightborrowings hasbeenreducedto7.70percentfrom7.75percent,whilethelendingrateforthree-yeartenurehasbeencutfrom

8.15percentto8.10percent.

Similarly,thebankreducedthelendingratebysimilarpercentagepointfortenuresincludingonemonth,threemonths,sixmonthsandtwoyears.

Meanwhileanotherpublicsectorlender AllahabadBank alsoreducedtheMCLRrateby0.15percentacrossalltenor.

Withthereduction,oneyearMCLRhascomedownto8.30percentasagainst8.45percenteffectivefromNov1.

Rajnish KumaristhePresentChairmanofMumbai-headquarteredSBI

AllahabadbankHQ:Kolkata

MD&CEO:Usha Ananthasubramanian

SBISanctionsRs2,317croreforFinancingSolarPowerProjects

StateBankofIndia(SBI)hassanctionedloansworthoverRs2,300croretosevencompaniesforinstallationsofsolarrooftopswithaggregatecapacityof575megawatt.

ThefinancingforgridconnectedrooftopsolarprojectsisthroughajointprogrammeofSBIandWorldBank. ThelenderhasavaileddollarfinancingfromWorldBanktofurther

on-lendforsuchprojects.

SBIsaidithasavailedlineofcreditfacilitiesworth$625millionfromWorldBank.TheagreementwassignedinSeptember2016underwhichSBIwastousethelineofcredit

infiveyears.

Includingthesesevencompanies—JSWEnergy,TataRenewableEnergyandAdani Groupamongothers—SBIhasfinanced43such

projectswithtotalcapacityof695MW.

Thefundingwasinlinewithgovernment’saimofachievingatargetof40GWofsolarrooftopinstallationsby2022.

World Bank

InternationalBankforReconstructionandDevelopment(IBRD)

InternationalDevelopmentAssociation(IDA)

WorldBank Group

InternationalBankforReconstructionandDevelopment(IBRD)

InternationalDevelopmentAssociation(IDA)

InternationalFinanceCorporation(IFC)

MultilateralInvestmentGuaranteeAgency(MIGA)

InternationalCentreforSettlementofInvestmentDisputes(ICSID)

GovernmentlaunchesBHARAT-22ExchangeTradedFund.

TheUnionGovernmentlaunchedBHARAT-22ExchangeTradedFund(ETF)managedbyICICIPrudentialMutualFundtargetinganinitialamountofabout

Rs.8,000Crore.

Bharat22Indexcomprise22stocksincludingthoseofcentralpublicsectorenterprises(CPSEs),publicsectorbanks(PSBs)anditsholdingsunderthe

SpecifiedUndertakingofUnitTrustofIndia(SUUTI).

ThestrengthofthisETFliesinthespeciallycreatedIndexS&PBSEBHARAT-22INDEX.ThisIndexisauniqueblendofsharesofkeyCPSEs,Public SectorBanks(PSBs)andalsotheGovernmentownedsharesinbluechipprivatecompanies

likeLarsen&Tubro (L&T),AxisBankandITC.

ThesharesoftheGovernmentcompaniesrepresent6coresectorsoftheeconomy- Finance,Industry,Energy,Utilities,FastMovingConsumerGoods(FMCG)andBasicMaterialswitha20%caponeachsectoranda15%capon

eachstock.

ThesectorwiseweightageintheBharat22Indexisbasicmaterials(4.4%),energy(17.5%),finance(20.3%),FMCG(15.2%),industrials(22.6%),andutilities

(20%). ThiscombinationmakestheIndexbroad-basedanddiversified.

ThiscombinationmakestheIndexbroad-basedanddiversified.IthasretirementfundasseparatecategoryofInvestors.

ThebankingsegmentincludesstocksfromStateBankofIndia(SBI),AxisBank,BankofBaroda(BoB),IndianBank,RuralElectrificationCorporationandPowerFinance

Corporation.

TheenergysegmentincludesOilandNaturalGasCorporation(ONGC),IndianOilCorporation(IOC),BharatPetroleum(BP),andCoalIndia.

TheBHARAT-22ETFisexpectedtobenefitlongtermandretailinvestorsbyprovidinganopportunityofparticipationinequitystocksofGovernmentcompanies

andearnstablereturns.

ItwillhelptospeedupGovernment’sdisinvestmentprogrammebudgetedtoraisearecordRs72,500croreintheFY2018.

NottopursueIslamicbankinginIndia,saysRBI

TheReserveBankofIndia(RBI)hasdecidednottopursueaproposaltointroduceIslamicbankinginIndia.

Decisioninthisregardwastakenafterconsideringwiderandequalopportunitiesavailabletoallcitizenstoaccessbankingandfinancialservices.

Islamicbanking

Islamicbankingisbankingorbankingactivitythatisconsistentwiththeprinciplesofsharia anditspracticalapplicationthroughthedevelopmentof

Islamiceconomics.

Sharia prohibitsthefixedorfloatingpaymentoracceptanceofspecificinterestoffeeforloanofmoney.

Itisdifferentfromregularbankinginthatitprohibitsearningofinterest(orriba)throughthebusinessoflending.

Background

TheproposaltointroduceIslamicbankingwasfirstmadein2008byacommitteeonfinancialsectorreformschairedbyformerRBIGovernorRaghuram Rajan.

Thecommitteehadrecommendedthatinterest-freebankingtechniquesshouldbeoperatedonlargerscaletogiveaccesstothosewhoareunabletoaccessbankingservices,includingthosebelongtoeconomicallydisadvantagedsectionofsociety.

IPPBBanktobecomeoperationalin650districtsbyApril2018.

ByApril2018,theIndiaPostPaymentsBankwillbemadeoperationalin650districtsofthecountry.

Thesepaymentbankswillbeconnectedtothe1.55lakhruralpostofficesandcarryoutbankingservicesandwillalsofacilitatefinancialinclusion.

IncorporatedasaPublicLimitedCompanybytheDepartmentofPosts,GovernmentofIndia,on17thAugust2016,IndiaPostPaymentsBankstarteditsoperationson30thJanuary2017byopeningtwopilotbranches,oneatRaipurandtheotherat

Ranchi.

Alongwithdigitallyenabledpaymentsandremittanceservicesofallkindsbetweenindividuals,IPPBisofferingSavingsaccountuptoabalanceof

Rs.1Lakh.

MDandCEO:SureshSethi

Tagline:Aapka bankaapke dwar

LegalEntityIdentifiermandatoryforalllargecorporateborrowers:RBI

TheReserveBankofIndia(RBI)hasmade20-digitLegalEntityIdentifier(LEI) compulsoryforcompanieshavingaggregatefund-

basedandnon-fundbasedexposureoverRs5crore.

Themoveisaimedatimprovingriskmanagementinwakeofhugestressedassetsinbankingsystem.

Beforethis,RBIhadmadeLEImandatoryfortransactionsininterestrate,forex andcreditderivativemarket.

Importance:

LEImechanismwillhelpbankstoeffectivelymonitordebtexposureofcorporateborrowers.

Itwillalsoenablebanksinpreventingmultipleloanstocompaniesagainstthesamecollateral.

LEIisa20-characteruniqueidentitycode assignedtoentitieswhoarepartiestoafinancialtransaction.AllcurrentandfutureparticipantswouldberequiredtoobtaintheuniqueLEIcodeaspertimelinesindicatedbythe

centralbank

ListingtimelineforimplementingLEI

Borrowerswithfundandnon-fundexposureofRs1,000croreandabovewillhavetogetLEIbyMarch2018.

ThosehavingexposurebetweenRs500croreandRs1,000crorehavetoobtainLEIcodebyJune2018.

ThosehavingbetweenRs100croreandRs500crorebyMarch2019.

SeparateroadmapforborrowershavingexposurebetweenRs.5croreanduptoRs.50crorewillbeissuedinduecourse.

CryptocurrenciesnowcomeunderSEBIlens

TherisingpopularityofcryptocurrenciesandtheincreasingnumberofentitieslookingatraisingfundsthroughInitialCoinOfferings(ICO)has

caughttheattentionofthecapitalmarketregulator.

TheSecuritiesandExchangeBoardofIndia(SEBI)ismullingwhetheranICOcanberegulatedundertheexistinglegalframeworkorcertainamendments

wouldberequired.

Cryptocurrencieslike bitcoin,ethereum andsuchofferingshavebeenundergovernmentradarforlonganddiscussionshavebeenheldbetweenvariousbodies,includingSEBIandtheReserveBankofIndia(RBI),onthepossible

waysinwhichthissegmentcanberegulated.

The centralbankisoftheviewthattheseinstrumentsaresecuritiesandsoSEBIshouldbetheregulatingbody.

Bitcoins areneither‘commoditiesderivatives’nor‘securities’underSecuritiesContracts(Regulation)Act,1956.

InitialCoinOfferings(ICO)

AnICO,likeanequityinitialpublicoffer(IPO),isan issuanceofdigitaltokensthatcanbeconvertedintocryptocurrencies andaremostlyusedtoraisefundsbystart-upfirmsdealinginblockchaintechnologyandvirtualcurrencieslikebitcoins and

ethereum.

UnlikeanIPO,whichisgovernedbySEBIregulations,thereisnoregulatorybodyforICOsinIndia.

ConcernsrelatedtoICOs

China recentlybannedsuchofferingsafteritscentralbanksaidthatICOsare“illegalpublicfinance”mechanismusedforissueofsecuritiesandmoneylaundering.

PlayersinBitcoin

Start-upslikeZebpay,Unocoin,Coinsecure,Searchtrade,Belfrics andBitxoxo aresomeofthewell-knownplayersinthebitcoinandblockchain segmentinIndia.

Bitcoin

Bitcoin isaworldwide cryptocurrencyanddigital paymentsystemcalledthefirstdecentralized digitalcurrency,asthesystemworkswithoutacentralrepositoryorsingleadministrator.

Thesystemis peer-to-peer,andtransactionstakeplacebetweenusersdirectly,withoutanintermediary.

Thesetransactionsareverifiedbynetwork nodesandrecordedinapublic distributedledgercalleda blockchain.

Bitcoin

Bitcoin isaworldwide cryptocurrencyanddigital paymentsystemcalledthefirstdecentralized digitalcurrency,asthesystemworkswithoutacentral

repositoryorsingleadministrator.

Thesystemis peer-to-peer,andtransactionstakeplacebetweenusersdirectly,withoutanintermediary.

Thesetransactionsareverifiedbynetwork nodesandrecordedinapublic distributedledgercalleda blockchain.

SBItouseblockchain forsmartcontractsandKYC

India'slargestlenderStateBankofIndiawillrolloutbetalaunchesofblockchain-enabledsmartcontractsbynextmonth,i.e.December

Blockchain-enabledKnowYourCustomer(KYC)willsoonfollowsuit.

TheseapplicationsarepartofBankChain,acommunityof27banks,whichhavejoinedhandstoexploreandbuildblockchain solutionsforbanking

BankChain wasformedinFebruarywithStateBankofIndiabeingthefirstmember.

Itnowhas22Indianbanks, andfiveMiddleEast-basedbanks.

BankChain hastiedupwithPune-basedstartupPrimechain Technologiestocreatethesesolutions.

ESAFSmallBanktobeginMumbaioperations

ESAFSmallFinanceBankisopeningits60thbranchatAndheri (East)inMumbaitomorrow.

Theerstwhilemicro-financelender,whichconverteditselfintoasmallfinancebankaftergettingRBIlicence,beganoperationsinMarchthisyear.

Thebankcurrentlyhas56branchesinKeralaandthreeinTamilNadu,willexpandtoabout145branchesbytheendofthefiscal.

KPaulThomas,MDandCEO

BajajAllianz’s‘Pro-fit’platform

BajajAllianzGeneralInsurancehaslaunched‘Pro-fit’,aplatformthatwillactasaone-stopsolutiontoallthehealth-recordtrackingneedsof

customers.

Pro-Fitisavailableonthecompany’sself-serviceapp‘InsuranceWallet’andcanalsobeaccessedonthecompanywebsite.Customerscanstoretheirhealthrecords,tracktheirfitnesslevels,andgetremindersfor

vaccinationsormedications.

AndhraBanklaunchesschemetopushentrepreneurship

AndhraBanklaunchedanewschemeforself-helpgroups(SHGs)toencourageentrepreneurship.

Thescheme,Pattabhi Sitaramayya — SelfBusinessGroup(PS-SBG),hasbeenintroducedtocommemoratethe138thbirthanniversaryofits

founderBhogaraju Pattabhi Sitaramayya, andtheSilverJubileeoftheSHG-Banklinkageprogrammeinthecountry.

Underthescheme,SHGshavingfiveyearsofassociationwithAndhraBankandhavingsuccessfullycompletedthreecreditrotationswithgoodrepaymentrecordandanaptitudeforentrepreneurship,willbe

eligibleforaloan.

Financeintheformofworkingcapitalandtermloancanbeextendedtothegrouporinindividualcapacitywithinthegrouptotheextentof

₹25lakhwithoutanycollateralsecurityoneasiertermsandconditions

CEO: Shri SureshNPatel

YESBankraises$400millionloansfromTaiwan,Japan

YESBankhasraised$400millioninsyndicatedloansfromlendersinTaiwanandJapanforon-lendingtoclients.

Themid-sizeprivatesectorlenderhasexercisedagreenshoe optiontoraise$250millioninafive-yearcommercialloanfrom17Taiwanesebanks.

InJapan,itraisedhasJPY16.5billionor$150millionfromeightlendersinaone-yearloaninamaidentransaction.

Thisborrowingwillbeusedforon-lendingthroughitsinternationalbranchatGIFTCity,Ahmedabad.

ThisthesecondtimethebankhasraisedmoneyfromTaiwan,aftera$130-millionloanfrom10bankslastyear,thisyearithadcommitmentsof$355million.

RelianceCapitalarm,YESBankinbancassurancepact

RelianceGeneralInsurance,asubsidiaryofRelianceCapital,hassignedacomprehensivebancassurance-corporateagencyagreementwithYESBank.

YESBankwithitsnetworkof1,040branchesacrossall29StatesandsevenUnionTerritorieswillenableRelianceGeneralInsurancetoreachalargebaseof

retailandMSMEclients.

ThisisthefirstpartnershipsignedbyYESBanksincetheopen-architecturenormsunderthecorporateagencyregulationswereintroducedbytheIRDAIin

April2016.

ICICIBank,Paytmteamuptooffersmalldigitalloans

India’slargestprivatebankICICIBankhasenteredtheinstantmicro-creditsegment.

ICICIBankhasenteredintoapartnershipwithe-commerceandmobilewalletcompanyPaytmtooffersmallinterest-freeloansupto₹20,000tocustomerswhoarecommonto

bothPaytmandthebank.

Theproduct,‘Paytm-ICICIBankPostpaid’,afirstofitskindinthecountry,willenablecustomerstogetaccesstoinstantcreditforcommonpurchasessuchasmovieandflight

tickets,andtomakebillpayments.

Paytm-ICICIBankPostpaidisadigitalcreditaccountthatcanbeopenedinstantlyonPaytm’s websitewithoutanyneedofsubmittingphysicaldocuments.Theloancanbe

appliedonPaytm’s websiteonits“paylater”feature.

Therearenotransaction,joiningorhiddenadministrationfees.However,severaldatapoints,includingthepurchasehistoryandfinancialanddigitalfootprintofthecustomer,

arelookedatbeforeofferingtheloan.

Fornow,theloansarebeingofferedtoonlyICICIBankaccount-holdersbutsoonitwouldbeextendedtocustomersofotherbanks.

AvailableonalldaysatanytimewithaquickcheckoutwithanPaytmPasscode,thecreditwillremaininterest-freefor45days,afterwhichthebankwillcharge3percent

interestpermonth.

CustomerscanusetheirPaytmwallet,debitcardorinternetbankingofanybankforeasyrepaymentoftheirdues.

Canyouanswer?

WhichBankhasgotRBInodtoopenofficesinKuwait,Singapore?

ForwhichtypeofcompanieshasRBIissuednewcodeofconduct?

FullformofQIP?

WhichSFBhasgotscheduledbankstatusfromRBI?

WhichcountryhasbannedraisingofmoneybystartupusingICOs?

IBPS PO / RBI Grade B/ SSC/ UPSC

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

Copyright@Study-IQeducation,Allrightsreserved