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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.
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