Blogs

Risk-based deposit insurance is need of the hour Bank deposits are among the safest asset classes in the world allowing banks the leeway to raise a sizeable share of their resources at one of the most competitive rates. Given the share of savings mobilised by them, they are also subjected to increased regulatory oversight. Worldwide, […]

The Financial Action Task Force (FATF), the global watchdog against money laundering and terrorist financing, is considering new disclosure norms for cross-border online transactions, including credit cards, government officials told Business Today TV. The proposed changes could also involve real-time tracking of the transactions. This shift may affect both international and domestic transactions, a source […]

ATM withdrawal limit: Automated Teller Machines (ATMs) enable you to access funds from your savings and current accounts conveniently and easily. It lets you withdraw money anytime and anywhere. However, there are limits on the number of transactions you can make in a time frame and the maximum amount you can withdraw at one time […]

Extortion e-mails are a type of scam, where cybercriminals send threatening messages to individuals or organisations demanding payment in exchange for not releasing sensitive or embarrassing information. These e-mails typically claim that the sender has compromising information, such as private photos or personal data and threaten to share it with the recipient’s friends, family or the public […]

The Reserve Bank of India (RBI) has tightened the framework for domestic money transfers in order to keep track of both cash pay-in and pay-out services. Let us go through the details as under: In a circular issued recently, the RBI stated that in the case of cash pay-out service, the remitting bank shall obtain […]

A rise in lending to the retail sector could render the banking system vulnerable, after it has just overcome its NPA problem. A renewed focus on retail lending, or the provision of personal loans, by India’s banking system (and the non-bank financial companies they support), is giving the otherwise confident Reserve Bank of India some […]

RBI Governor Shaktikanta Das held a meeting with the MD and CEOs of public sector banks and select private sector banks today, in Mumbai. Reserve Bank of India’s (RBI) Governor Shaktikanta Das on July 3 held meetings with the MDs and CEOs of public sector banks and select private sector banks in Mumbai and urged […]

Reserve Bank of India (RBI) Governor Shaktikanta Das emphasised on the need to eliminate biases in algorithms as the use of artificial intelligence (AI) and machine learning (ML) is on the rise. The Governor was delivering the inaugural address at the 18th Statistics Day Conference organized by the RBI, when he said the use of […]

RISK FACTOR. SEBI mandated asset management firms to stress-test open-ended debt schemes every month Scheduled commercial banks (SCBs) are well capitalised and capable of absorbing macro-economic shocks even in the absence of any further capital infusion, per the results of macro stress tests for credit risk conducted by the Reserve Bank of India. Further, SCBs’ […]

Fixed deposits (FD) with banks are the most common investment. But how well protected are FDs? It turns out that only 44 per cent of bank deposits were covered by insurance as of September 2023. And this proportion has been on a decline since 2021, per RBI data. In September 2022, 49 per cent of […]

The Reserve Bank of India (RBI) on 7 June 2024 released the much-awaited circular liberalising the rules governing investments in overseas funds.  What does it say?   The circular permits Indian Limited Partners (LPs) to invest in overseas funds regulated via their regulated investment manager thereby doing away with the erstwhile prerequisite that the investment […]

The Reserve Bank of India on 7th June 2024 announced the introduction of the UPI LITE e-mandate to create a more seamless payment ecosystem. UPI Lite was introduced in September 2022 to enable small value payments quickly and seamlessly through an on-device wallet.Currently, the UPI Lite has a daily limit of Rs 2,000, while the […]

Now, the new threshold for ‘bulk deposit’ is Rs 3 crore, meaning deposits below this amount will not be considered bulk deposits; banks often offer higher interest rates on bulk deposits compared to regular deposits. The Reserve Bank of India (RBI) on June 7 revised the definition of a bank ‘bulk deposit’ to Rs 3 […]

I work in the IT industry and have plans to retire in the next 10 years. I have already planned for my daughter’s education and kept ₹50 lakh aside for this. I have also invested in two properties that are valued at ₹1.2 crore today, and on which I will be paying EMIS (equated monthly […]

Reserve Bank of India (RBI) Governor Shaktikanta Das on Tuesday unveiled three major initiatives of the Reserve Bank, namely the Pravaah portal, the Retail Direct Mobile App and a FinTech Repository. These initiatives were earlier announced as part of RBI’s bi-monthly Statement on Development and Regulatory Policies in April 2023, April 2024 and December 2023 […]

The Union Finance Ministry (FinMin) has instructed public-sector banks (PSBs) to review their information technology (IT) systems, especially the disaster recovery channels, a senior government official said, requesting anonymity. It is believed that the regulator (Reserve Bank of India) conducts its own audits regularly. We have also requested major PSBs to evaluate their disaster recovery […]

The Reserve Bank of India (RBI) has responded to tight liquidity conditions in the banking system by announcing a significant reduction in the government’s treasury bill sales and introducing a new selection of bonds for the Centre’s buyback operations. This move aims to alleviate cash constraints for banks, which have been impaired by muted government […]

In the wake of the ongoing audit at IIFL Finance’s gold loan business, the Reserve Bank of India is said to be reviewing regulations on gold loans. Certain norms pertaining to loan-to-value, cash disbursement limit, assaying of the underlying gold, and auctioning of the precious metal are under review. A detailed circular, or an operative […]

Public Financial Management (PFM) is essential for governments to handle money properly. It’s like a guide that helps governments use public money wisely, transparently, and effectively. In this blog, we’ll explore why PFM is important, how it has evolved, and its impact on various government activities.   WHAT IS PFM AND WHY WAS IT INTRODUCED? […]

The Supreme Court ruling comes amidst a series of appeals filed by various bank staff unions and officers’ associations challenging the taxation rules.   Stunned by a recent ruling by the Supreme Court, the All India Bank Officers’ Confederation (AIBOC) will convene a meeting of its senior officials on Sunday to decide the future course […]

SYSTEMIC CONCERN. Players told to target 15-20% growth Vs current 30% plus run rate. After asking banks and non-banking finance companies to take a calibrated approach to growth, the Reserve Bank of India has signalled fintechs to tamp down. In a meeting recently held with fintech heads, the regulator is said to have told many […]

FORGERY. Embezzlement reported at NBFC’s North-East branch; RBI seen placing curbs. KEY CONTRIBUTOR. The eastern region accounts for 11% of the lender’s total advances, or ₹10,273 crore of total loans, per M&M Finance’s December quarter investor presentation The RBI is looking into a ₹150-crore KYC lapse disclosed by Mahindra and Mahindra Financial Services on Tuesday. […]

PIQUE INTEREST. Banks are lending more than ever, including unsecured credit, even as the RBI moves to curb overreach Bank loan offers are flooding customers via SMS, WhatsApp message, email, calls, and advertisements, promising to meet every kind of need — from home and vehicle purchase to education and wedding expenses. And they are finding […]

HDFC Bank managing director Sashidhar Jagdishan said the lender “will not be chasing growth for the sake of growth” and “will be delighted even if the margins remain at the current levels”. Addressing analysts on Saturday, soon after the bank declared its fourth quarter results, he declined to give any guidance but said the bank […]

The Reserve Bank of India (RBI) on Tuesday issued a significant directive, stating that from August 1, 2025, no entity involved in card transactions, except for the card issuer and card networks, will be permitted to store data. This directive aims to enhance the security and privacy of cardholders’ information during transactions. This regulation will […]

Paytm authorized to migrate users to Axis Bank, HDFC Bank, SBI, YES Bank for UPI payments, ensuring seamless transition with new UPI IDs for uninterrupted transactions. Paytm’s parent company, One 97 Communications (OCL), has been authorized by the National Payments Corporation of India (NPCI) to migrate users to new banks for UPI payments. This follows NPCI’s […]

The Reserve Bank of India (RBI) on April 12 said it has rejected two small finance banks licences filed by Dvara Kshetriya Gramin Financial Services Pvt Ltd and Tally Solutions Pvt Ltd as they were found to be not suitable. Dvara KGFS (Kshetriya Gramin Financial Services), backed by impact investor Leapfrog and Stakeboard Capital, is […]

A latest report from ICRA, the rating Agency, after two years of decline, gross fresh non-performing asset (NPA) generation is set to rise for both private and public sector banks (PSBs) in FY25. Further, the rating agency also revised downwards its outlook for the Indian banking sector to “stable” from “positive” for FY25. This is […]

The finance ministry is considering amending the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, which governs public-sector banks (PSBs), to make suitable provisions for allowing PSBs to transfer shares to the Investor Education and Protection Fund (IEPF) when dividends of such shares remain unclaimed by the investors for seven consecutive years. The Section […]

Expect smaller loan approvals in policy’s early years, which may necessitate selling of investments instead New regulations on the surrender value of insurance policies have come into force from April 1. Surrender value is the amount paid by an insurance company when a customer ends a policy before maturity. Under the new guidelines released by […]

The Reserve Bank of India (RBI) has proposed to permit the linking of prepaid payment instruments (PPIs) with third-party unified payments interface (UPI) applications to make the digital wallet market interoperable. The move, outlined in the RBI’s statement on developmental and regulatory policies, means wallet holders will no longer have to depend on PPI wallet […]

The Reserve Bank of India (RBI) has kicked off liquidity management operations in the new financial year by con- ducting four variable rate re- verse repo (VRRR) auctions — two each on April 2 and April 3 — to suck out surplus liquidity from the banking system and reinforce its “withdrawal of accommodation” monetary policy […]

There are two guidelines that are going to impact insurance policyholders, starting from April 1, 2024. One is mandatory e-Insurance policies for new policyholders and the other is regarding the surrender charges of the life insurance plans such as endowment policies. Here’s what policyholders need to know: e-Insurance mandatory It is mandatory to hold insurance […]

The Monetary Policy Committee meeting of RBI is scheduled to be held on 5th April 2024 when there is speculation about change in the REPO Rate. Here are the excerpts from the opinions from different sections of people. Foreign brokerages and banks expect the Monetary Policy Committee (MPC) to keep the repo rate unchanged at […]

Travel-based co-branded credit cards are seeing strong growth led by steady demand as more and more users utilise these cards for reward miles and discounts for their domestic and overseas travel. Travel credit cards were the fastest growing category in 2023, with demand rising 27 per cent on year, especially in Tier-2 and Tier-3 towns […]

AU Small Finance Bank merger with Fincare SFB to be effective from April 1, 2024. Here is a question – whether Should you buy, sell or hold the stock? AU Small Finance Bank’s merger with Fincare Small Finance Bank is expected to help AU Bank achieve sustainable growth, boost profitability and support stronger return ratios, […]

The country’s Apex Bank, Reserve Bank of India (RBI) might take a fresh look at its long-standing caps for foreign ownership of government debt as lumpy inflows expected over the next couple of years due to global bond index inclusion alter a critical landscape for the Centre’s debt manager.  Here are the details: In March […]

·       The National Payments Corporation of India (NPCI) has granted approval to One97 Communications Limited (OCL) to engage as a Third-Party Application Provider (TPAP) under the multi-bank model for Unified Payments Interface (UPI). ·       Under this arrangement, four banks—Axis Bank, HDFC Bank, State Bank of India, and YES Bank—will serve as Payment System Provider (PSP) […]

Nearly two years after introducing a revised regulatory framework for non-banking finance companies, the Reserve Bank of India is set to review the categorisation of NBFCs in 2024. According to sources aware of the matter, the review has become necessary given the NBFCs growth, their business models and the significant change in their operations from […]

To avoid falling into debt with a credit card, you can Give yourself a 72-hour rule on big purchases and impulse buys. Pay off charges right away. Don’t save your credit card info on shopping sites. Find an alternative when you feel like shopping. Don’t finance expenses with your credit card.   Let us go […]

January 31st, 2024 – a news was out that shook the Fintech companies, merchant users and of course the retail users, who are none else than we, the general audience.   Prelude to the Latest News The Governing Body of banking and finance, RBI, had issued a ban on Paytm Payments Bank (PPBL) for non-compliance […]

Personal loans are a way to use tomorrow’s income today, and the process involved is simple. But you must note that the interest rates are much higher than, say, for a car loan. This is because personal loans are unsecured loans. This means that the loan is not backed by any asset. The loan amount […]

HDFC Bank has set the ball rolling for the much-anticipated initial public offering of its subsidiary HDB Financial Services. The country’s largest lender by market capitalisation intends to schedule the launch of the share sale in its financial services arm in the last quarter of calendar 2024 or the first quarter of 2025, said sources […]

The Regualtor, Reserve Bank of India has approved the merger of Fincare Small Finance Bank with AU Small Finance Bank which shall be effective w.e.f 1st April 2024. Bank Merger Update Once again there is going to be a merger of banks in the country. Reserve Bank of India has said that from April 1, […]

The Reserve Bank of India, has advised banks and non-banks to permit their customers to decide on the credit card network.  This means, credit card issuers, especially those with a large customer base, will have to enter into tie-ups with multiple card networks.  Current Scenario Presently the choice of network for a card issued to […]

A New Regulation is in place for Non-Banking Entities In view of making a substantial expansion in payment landscape through various payments system like Unified Payments Interface (UPI), Internet Banking, Pre-paid Payment Instruments (PPIs), RBI felt the need to review and update their regulations. The new regulations allow a number of non-banking payment providers to […]

New KYC updation process soon? Banks are working on strengthening their KYC (Know Your Customer) standards by adding extra verification layers to identify accounts and account holders. This initiative is being discussed with the Reserve Bank of India (RBI) and the government. The plan includes updating all existing accounts, especially those with a single phone […]

RBI’s new regulatory guidelines on various FINTECH processes In the aftermath of impeding ban on Paytm, there were rumours that other UPI payments system may also go through similar scrutiny. It appeared as if RBI was standing against Fintech companies and its success. Even the RBI Governor had to speak up on the issue and […]

General Guidelines: Individuals depositing Rs 10 lakh or more in a savings account during a financial year will have the transaction reported to the income tax authorities by the bank. TDS will be levied on cash withdrawals exceeding certain limits. Failure to establish the source of income for cash deposits may result in taxation at […]

Introduction 1. Payment Banks, as per RBI guidelines, are a new category of banks conceptualised to provide efficient banking services to small businesses and low-income households. 2. These banks focus on facilitating financial transactions, including receiving deposits and making payments, but do not undertake lending activities like traditional banks. Maximum Balance: Payment banks are initially […]

Finance Minister Nirmala Sitharaman on Wednesday asked financial sector regulators, including the Reserve Bank of India (RBI), to take further measures to check spread of unauthorised lending through online apps.Addressing the 28th meeting of the Financial Stability and Development Council (FSDC) here, Sitharaman also asked regulators to maintain constant vigil and be proactive towards detecting […]

What is this Financial Facility Known as Seed Funding and Can You Have Your Own Start-Up with its Help? Let’s Find Out. In a bizarre news by itself, a start-up named PocketATM is making rounds in the news for raising 3.3 crore pre-seed funding. Why is this start-up able to make such big news? What’s […]

Unified Payments Interface, commonly known as UPI, has been a game changer for digital payments in India. From getting groceries to buying your favorite gadget, one can quickly make a UPI payment with no additional charges. UPI is no longer limited to India and the number of countries accepting it keeps growing. What is UPI […]

Addressing concerns around the curbs imposed on Paytm Payments Bank, the Reserve Bank of India issued an FAQ (Frequently Asked Questions) detailing what will be the future of the bank, how can customers and merchants utilise or withdraw their funds, and what will be allowed post March 15. Businessline breaks it down: What happens to […]

India and UAE signed the DTAA (Double Taxation Avoidance Agreement) in 1992 in order to avoid double taxation of residents of both countries on the same income.  Accordingly, we find that NRIs in UAE enjoy tax benefits on investments in Mutual Funds.  Here is an article, which debates as to whether this is profitable to […]

Bank fixed deposits (FDs) continue to be popular investment products not just among senior citizens, who are looking for guaranteed income, but also among investors who can’t stomach risk. But overexposure to FDs is not good, and you need to assess your asset allocation and goals to decide how much money you should park in […]

On 31st January, 2024, the governing body of banking industry, the Reserve Bank of India (RBI) issued a ban on Paytm Payments Bank Ltd. (PPBL). The ban is applicable on all kinds of Paytm transactions such as wallets, FASTags, top-ups, prepaid instruments deposits in customer accounts, National Common Mobility Cards (NCMC) and any operations included […]

Why has the apex banking regulator penalised Paytm Payments Bank Ltd? How is it going to affect the services of the fintech company? What are the concerns regarding money laundering? The story so far: In a major blow to fintech services provider Paytm, the Reserve Bank of India (RBI) barred its payments bank subsidiary, Paytm […]

If bank customers request deletion of loan data from the database of a credit information company (CIC), exercising a right under the Digital Personal DataProtection (DPDP) Act, they may no longer be able to continue with the banking system in the future, according to an IT Ministry official. The DPDP Act, 2023, was notified in August last year but […]

·       The six member Monetary Policy Committee (MPC) of the Reserve Bank of India might maintain the status quo for the sixth consecutive policy review, as per the respondents in a Business Standard poll. ·       It is expected that RBI would announce its decision after a review of its policy on February 8th 2024. ·       […]

Spend only as much as you can afford to repay, do not exhaust the entire credit limit and establish a strong repayment history. It is also important to regularly monitor the usage on your secured credit cards as well as your monthly credit score to see the impact. _________________________________ Radhika Binani A good credit score […]

The Chairman of State Bank of India (SBI) has said that the bank is reaching out to merchants to support payment systems in the light of regulatory action on PayTM Payments Bank. The nation’s largest lender will be happy to welcome merchants and is also open to a one-time migration of accounts from the besieged […]

France has allowed the Unified Payments Interface (UPI) to work in the country. NPCI International Payments Limited (NIPL) and Lyra, a French leader in securing e-commerce and proximity payments, have announced the acceptance of the UPI payment mechanism in France. From now on, Indian tourists can book their visit to the Eiffel Tower by purchasing […]

The interim Budget 2024 unveiled on Thursday has set the stage for Reserve Bank of India to go in for 50 basis points cut in repo rates this year, say foreign banks and brokerage houses. “With government gross borrowing programme likely to decline by 8.5 per cent YOY into the next year, G­Sec Yields (10 […]

In Press Release dated March 11, 2022, the Reserve Bank of India, in exercise of its powers under section 35A of the Banking Regulation Act, 1949, had directed Paytm Payments Bank Ltd (PPBL or the bank) to stop onboarding of new customers with immediate effect. 2. The Comprehensive System Audit report and subsequent compliance validation […]

SBI Mutual Fund has launched the SBI NIFTY50 Equal Weight Index Fund, which offers investors an opportunity for balanced diversification as compared to NIFTY 50 index funds. Minimum investment is Rs 5,000. New fund offer closes on January 29, 2024. _______________ SBI Mutual Fund has launched the SBI NIFTY50 Equal Weight Index Fund. It allocates […]

The rupee remained stable over the dollar in the past week. It closed at 83.11 on Tuesday compared to 83.16 last week. The Indian currency remained flat despite challenges like foreign outflows and rising crude oil prices. According to NSDL (National Securities Depository Limited), the net FPI (Foreign Portfolio Investors) outflow over the past week […]

Bank fixed deposits (FDs) continue to be popular investment products not just among senior citizens, who are looking for guaranteed income, but also among investors who can’t stomach risk. But overexposure to FDs is not good, and you need to assess your asset allocation and goals to decide how much money you should park in […]

These funds are backing litigation against broken environmental pledges, corporate misdeeds. A successful case can leave a litigation funder with returns well in excess of 25% In a corner of finance that rarely generates headlines, investors are busy mapping out paths to huge returns as they contemplate the fallout of new laws in Europe. The […]

It has come to the fore, that borrowings by NBFCs from commercial banks is on an increase and Reserve Bank of India, the apex Regulator has noted the same with concern. RBI has hence advised the NBFCs to diversify their funding sources in the coming year ie. 2024, due to the rising competition in the […]

BACK TO BASICS. With the last date for making nominations to MF investments fast approaching, here’s why it is important. While making new investments, investors are often in a hurry to complete the procedure and, thereby, overlook important as pects such as nomination. Little do they know that this lapse can force their family to […]

What is Securitization? Securitization is the process of taking an illiquid (a stock or bond or other assets which cannot be sold easily) asset or group of assets and, through financial re-engineering (a process of overhauling) and transforming it (or them) into an investable security. For example, a group of home loans or Vehicle Loans are […]

In today’s age, it is quite easy to construct a house or buy a flat by taking a home loan. Be it a bank or a non-financial bank, one has to submit papers of the property as collateral in lieu of loan. Many times, people mortgage movable or immovable property. It has also been observed […]

The Reserve Bank of India (RBI) on December 11 cautioned public not to fall prey to misleading advertisements related to loan waiver offers in print media as well as on social media platforms. In a statement, the RBI said it has noticed certain misleading advertisements enticing borrowers by offering loan waivers. These entities, it said, […]

Vivek Joshi, Secretary, Department of Financial Services | Photo Credit: KAMAL NARANG DFS Secretary Vivek Joshi leads crucial meeting, advocates coordinated action among policy makers, regulators, and banking leaders The country’s top policy makers, bureaucrats, bankers and regulators overseeing financial and telecom sector on Tuesday brainstormed the strategy and measures that would be taken in […]

We are aware that Fintech is a catch-all term referring to software, mobile applications, and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike.  The usage goes with how people require their business to be transacted and these account from digital money to double-entry book-keeping.  All financial institutions […]

Reserve Bank of India Governor, has identified three challenges facing the global economy which are: Slow moderation in inflation, Slowing growth with obstacles, and Risks of financial stability. The Governor expressed concerns about the impacts of shocks like rising crude oil prices and bond yields, which he referred would hamper the responses of central banks.  […]

There are several tools available with RBI to boost the liquidity in the banking system.  Few of them are adjustment through Repo Rate and Reverse Repo Rate, Increasing and decreasing CRR and SLR and so on.  Another important tool available with RBI is Forex Swap which boosts the liquidity in the system amid tax outflows […]

Equity funds that invest a larger percentage of their total assets in organizations with a high market capitalization are called Large Cap mutual funds.  These companies enjoy a great reputation in the market and have a proven track record of providing wealth to investors over an extended period of time.  Hence Large Cap funds are […]

Expands scope of regulated entities, broadens definition, refines identification process The Reserve Bank of India has issued a draft paper proposing revisions in the guidelines for handling wilful defaulters, wherein it has expanded the scope for regulated entities that can classify borrowers as wilful defaulters, broadened the definition of wilful default, and refined the identification […]

AIFIs will be required to maintain a minimum total capital of 9 per cent by April 2024 The RBI has introduced norms on the Basel III capital framework, fund raising, exposure guidelines, and norms on classification and valuation of investment portfolios for All India Financial Institutions (AIFIs), which will come into effect from April 2024. […]

An RBI circular that requires lenders to take a quick call on classifying wilful defaulters will also allow borrowers to shake off the tag by entering into a compromise settlement with banks. In June 2023, the central bank, in its circular on compromise settlements, had allowed one-time settlement of wilful defaults only if a higher […]

The merger of Housing Development Finance Corp (HDFC) with HDFC Bank has opened up space for other mortgage lenders to raise funds from the debt market at a cheaper rate as more money is now available for other companies, market participants said. The biggest beneficiary of HDFC’s exit, which used to corner more than half […]

In its last bi-monthly monetary policy review, the RBI asked Banks to maintain an I-CRR of 10 per cent The Reserve Bank of India (RBI) has decided to discontinue the Incremental Cash Reserve Ratio (I-CRR), which it prescribed as a temporary measure last month to impound Banks’ surplus liquidity, in three stages, beginning September 9, […]

BankEdge, a leading name in the Banking and Finance education sector, celebrated its 9th Anniversary on September 9th. This significant milestone marks nine years of excellence in providing top-notch training and career opportunities to aspiring banking professionals. Since its establishment in 2014, BankEdge has been dedicated to shaping the future of banking by nurturing talent, […]

The Reserve Bank of India urged the directors of Urban Co-operative banks to further strengthen governance practices emphasizing the importance of a professional Board of Management as the quality of governance was the most important aspect in ensuring stability of individual banks. The Reserve Bank stressed the need to strengthen the three pillars supporting pillars […]

Uday Kotak’s decision to step down as managing director and chief executive officer of Kotak Mahindra Bank marks the end of an era that saw a clutch of lenders blooming into large financial conglomerates. Kotak along with Deepak Parekh, Aditya Puri, and KV Kamath played a pivotal role in development of these financial giants including […]

BANKEDGE Academy, a leading name in banking and finance education, is thrilled to announce its strategic collaboration with EDUEDGE PRO Private Limited to introduce an innovative Post Graduate Program in Investment Banking and Global Markets. This partnership aims to provide aspiring finance professionals with comprehensive and industry-relevant training to excel in the dynamic world of […]

New UPI features developed by National Payments Corporation of India (NPCI) was launched by the RBI Governor. The product offerings include Credit Line on UPI; UPI Lite X; Tap & Pay; Hello! UPI; and BillPay Connect. The central bank informs that credit lines on UPI to increase access to credit, and promote financial inclusion and innovation through pre-sanctioned […]

Bankedge Academy, Kanpur, celebrated its 9th anniversary by felicitating students who excelled in their performance and secured placements with prominent private sector banks. The event witnessed the presence of esteemed Chief Guests, MLA Shri Anil Singh and MLA Shri Surendra Maithani from the Bharatiya Janata Party (BJP). Bankedge Academy, Kanpur, a leading educational institution, marked its anniversary by recognizing the exceptional achievements of its […]

India and New Zealand are discussing introducing Unified Payments Interface (UPI) in the island nation, which would promote ease of doing business, trade and tourism between both countries, the commerce ministry said in a statement on Tuesday. “Ministers (Indian and New Zealand trade ministers) welcomed early discussions between National Payments Corporation of India (NPCI) and […]

Courtesy: Updesh Times

  Courtesy: Suryoday Bhaskar

    Courtesy: IB NEWS – Dainik Indian Block

Appoints BCG to guide on revamp In what could be one of the largest branch rationalisation exercises by any regional rural bank (RRB), Baroda UP Bank — sponsored by Bank of Baroda (BoB) — has decided to merge and close down 268 branches in semiurban and rural areas of Uttar Pradesh as part of a […]

One of the key factors contributing to the decline in the value of the rupee against the US dollar is the tightening yield spread between the 10-year India government bond and the US government bond. The yield on a 10 year Indian Government bonds is now only 295 basis points higher than that of US […]

Card payments in India are likely to hit the ₹ 27.9 trillion mark in 2023, up 28.6 per cent yearonyear ( YoY), according to a report by GlobalData, a Londonbased leading data and analytics company. Card payments´ value in India, GlobalData said, grew 26.2 per cent in 2022, driven by economic growth, consumers´ increasing preference […]

Lenders’ expectations based on resilient demand and elections in key states. Lenders in India, comprising banks and nonbanking financial companies, anticipate robust growth in retail credit during the upcoming festival season, stretching from September to December 2023. This expectation is based on resilient demand, government initiatives, and elections in key states. Nonetheless, the possibility for […]

Barring a few, most banks have shown a drop in low-cost CASA. Ditto for their net interest margin. The credit quality is holding up, but some banks have reported fresh slippages. The combined net profits of 32 listed private and public sector banks (PSBs) were up 40.56 per cent in FY23 to close to about […]

The Reserve Bank of India (RBI) has decided to bring out rules that could potentially restrict card issuers from engaging in exclusive agreements with card networks like Mastercard, Visa or RuPay. The central bank also proposed that rules would be applicable to both banks and non-banking financial companies that issue credit cards, debit cards, or […]

The Reserve Bank of India on Thursday launched a centralised Web portal, UDGAM (Unclaimed Deposits Gateway to Access Information), for members of the public to make it easier to search their unclaimed deposits across multiple banks at one place. UDGAM, which was launched by RBI Governor Shaktikanta Das, will aid users in identifying their unclaimed deposits and accounts and […]

The Reserve Bank has opted for the services of global consulting companies McKinsey and Company India LLP, along with Accenture Solutions Pvt Ltd. India, to create systems that utilize artificial intelligence and machine learning for its supervisory operations. The RBI is looking to extensively use advanced analytics, artificial intelligence and machine learning to analyse its […]

Personal loans are a way to use tomorrow’s income today, and the process involved is simple. But you must note that the interest rates are much higher than, say, for a car loan. This is because personal loans are unsecured loans. This means that the loan is not backed by any asset. The loan amount […]

HDFC Bank chief Sashidhar Jagdishan on Friday flagged funding as a risk for the lender after the successful USD 40 billion amalgamation with its parent. “As you know, the risks of the merger is the funding part of it,” Jagdishan told shareholders of the largest private sector lender at its maiden annual general meeting after […]

Cash Reserve Ratio or CRR as it is termed, is a monetary policy tool used by the Central Bank to regulate money supply and control inflation. It is the percentage of Bank’s net Demand and Time Liabilities (NDTL) required tobe maintained as Cash Reserve with RBI. It includes deposits and certain other liabilities of commercial […]

Credit card default rose to ₹4,072 crore, or 1.94%, at the end of March 2023, Parliament was informed on Tuesday. “As per the inputs received from the Reserve Bank of India, in respect of defaults in credit cards, the gross non-performing assets (GNPAs) in credit cards was ₹3,122 crore in March-2022 and ₹4,072 crore in […]

Moody’s cut the credit ratings of a host of small and mid-sized U.S. banks late Monday and placed several big Wall Street names on negative review. The firm lowered the ratings of 10 banks by one rung, while major lenders Bank of New York Mellon, U.S. Bancorp, State Street, Truist Financial, Cullen/Frost Bankers and Northern Trust are now under review for a potential […]

Hefty charges. Over ₹8,000 cr levied for additional ATM transactions; ₹6,000 cr for SMS: FinMin Public sector banks and five major private sector banks together collected charges amounting to over ₹35,000 crore since 2018, on account of non-maintenance of minimum balance, additional ATM transactions and SMS service charges, Finance Ministry informed the Rajya Sabha. Data […]

Mumbai: Fino Payments Bank Ltd. on Friday said that its board has approved a proposal to transition into a small finance bank. With this, Fino has become the first such entity to move towards becoming a small finance bank (SFB) since the Reserve Bank of India in 2019 allowed payments banks to apply for conversion […]

The AU Savings Account offers a competitive interest rate up to 7% on the savings balance, providing a reliable and rewarding option for customers Mumbai – A Savings Account is a type of deposit account offered by banks and financial institutions, enabling customers to deposit and withdraw funds conveniently and at their will akin to the […]

ARC executives find written-off assets particularly appealing as the number of sizeable bad loans awaiting recovery have dipped, thanks in part to banks’ persistent corrective measures, including selective targeting of corporate borrowers. Asset reconstruction companies (ARCs) are capitalizing on the opportunity to acquire written-off loans, given the substantial pool of such assets available with lenders, and […]

Treasury bills, also called as T-bills, are short-term financial instrumentsissued by the Government of India aimed to lower market risks. These are now available in three tenors viz 91 days, 182 days, and 364 days. Also, Treasury bills are zero coupon interest-free securities, which are sold at a discount and then redeemed at face value on maturity. […]

Personal loans are a way to use tomorrow’s income today, and the process involved is simple. But you must note that the interest rates are much higher than, say, for a car loan. This is because personal loans are unsecured loans. This means that the loan is not backed by any asset. The loan amount […]

BANKEDGE, a leading provider of skill development programs for the banking and financial services industry, is pleased to announce its latest initiative to empower students seeking careers in branch banking. In an effort to enhance their job readiness and equip them with essential industry knowledge, BANKEDGE will now offer NISM Certification Training free of cost […]

Deposit Insurance and Credit Guarantee Corporation (DICGC) has asked all banks to prominently display its logo and QR code on their websites and internet banking portals by August 31 with a view to create awareness about the deposit insurance scheme. Deposits up to Rs 5 lakh in banks are insured by the DICGC. The scheme […]

Banking interviews can be touch, we give you some food for thought through this blog series. The titled question is probably the most common and the trickiest questions asked in a bank recruitment interview. The answer may vary from candidate to candidate as different people have different reasons to join the bank. But have you ever considered what […]

They say, money makes money. Yes, money is powerful and if you make good pact with money, your money can grow. It will take some smart work to grow your money, invest in assets, save and invests, plan and budget your spending. Handling money is truly an art which you need to master. Many of […]

They stripped or ran down assets to a degree where the liquidation value was a fraction of the claims of banks By CP ChandrasekharJayati Ghosh Around a month ago, the Reserve Bank of India, in a controversial circular, reversed its long-standing policy of not allowing banks to arrive at compromise settlements with wilful defaulters or […]

Banks small or big, offers variety of services to its customers. Bank locker is one of the traditional service offering by the bank. Many a times, customers prefer to keep important documents, jewellery and other valuable portable assets safely in banks. Banks allocate the locker facility to customers who have a strong financial backing and […]

Bank locker rules: बैंक लॉकर के नए नियमों को लेकर इस समय काफी चर्चा हो रही है. कई ग्राहक तो ऐसे हैं जिन्हें इन नए नियमों के बारे में कोई जानकारी ही नहीं है. बता दें कि नए नियम ग्राहक के फायदे के ही हैं इसलिए बिना देर किए बैंक जाएं. What is new bank […]

Shoulder Surfing: Shoulder surfing is a social engineering technique through which personal or private information is obtained through direct observation. It is conducted by observing what someone is doing by looking over their shoulders. There are two types of shoulder surfing. The first type of attack is where direct observation is used to obtain access to […]

Provisional figures for the first quarter of FY24, released by banks and NBFCs, show that growth of both credit and deposit was robust in Q1, led by sustained demand for retail credit and a pick up in corporate loans. Of the numbers declared so far, most lenders posted a rise in advances or AUMs (assets […]

The Bank currently serves more than 3 crore customers through a strong network of over 6,000 banking outlets spread across 34 states and union territories in India. FPJ Web Desk Updated: Wednesday, June 28, 2023, 01:04 PM IST Bandhan Bank, one of the fastest-growing banks in the country, today has achieved a milestone of tripling […]

With effect from 1st July 2023 both HDFC Bank Ltd. and Housing Development Finance Corporation are merging, that creates a lender that ranks fourth in equity market capitalization, leaving behind only JPMorgan Chase & Co., Industrial and Commercial Bank of China Ltd. and Bank of America Corp., according to data compiled by Bloomberg and is […]

As a share of overall bank credit, card balances stand at 1. 4%. Among personal loans, they are the thirdlargest segment after housing (14. 1%) and auto loans (3. 7%). The share of credit card dues had hit a high of 1. 2%, just before the global financial crisis of 2008. After defaults in small-ticket […]

Reserve Bank of India: The licenses of many co-operative banks have been canceled by the Reserve Bank of India in the financial year that ended on March 31. If you also have an account in these banks, then you should be updated about this news. These banks have faced strict action from the Reserve Bank […]

RBI Governor Das says ‘job is only half done with the fight against inflation not yet over’; Deputy Governor Patra stresses policy needs to remain in ‘brace’ mode to ensure shocks from supply demand mismatches leave no scars on the economy. The Hindu Bureau MUMBAI The Monetary Policy Committee’s job was only half done in […]

What to do Before Interviews? Before you go for an interview you need to prepare yourself well. This is because in the process of an interview every aspect of yours will be analysed very critically. Whatever you have to say about yourself will be probed. Your answers will make room for many other questions. So […]

Home » Special Feature » From Front desk to Manager, Salaries Have Gone Up in BFSI Sector: Santosh Joshi, BankEdge Special Feature June 21, 2023 | 1:39 pm From Front desk to Manager, Salaries Have Gone Up in BFSI Sector: Santosh Joshi, BankEdge All Things Talent Team Santosh Joshi, CEO, BankEdge   Emerging technologies, a […]

Preparing for banking interviews is always a tough task. Fret not, Bankedge PickUp cell is here for your quick help. Yes, Bank interviews are difficult but with the right preparations and guidance, you can clear the interview with ease. In this special blog, we give you some readymade answers to some difficult questions asked by […]

A report of India Ratings and Research (Ind-Ra) reveals, that Private sector banks have seen slippages and loan write-offs at 44 per cent, as against 23 per cent in case of public sector banks. In the past ten years period, Banks are seeing the best-ever asset quality according to this report. It adds to say […]

Chief Justice S.V. Gangapurwala and Justice P.D. Audikesavalu record the submission of Reserve Bank of India that it had already issued elaborate guidelines to all banks with respect to the issue of engaging recovery agents June 16, 2023 11:34 pm | Updated 11:34 pm IST – CHENNAI Mohamed Imranullah S. _____________________________ If banks have to […]

Disinflation is a process of slowdown in the rate of increase of the general price level of goods and services in a nation’s gross domestic product over time.  In other words, it is the opposite of reflation which refers to a process of economic recovery with a combination of both Fiscal and Monetary policies.  A […]

BankEdge Academy provides skill-based job ready training programs in Banking and Finance Editorial Staff How do you equip students with the necessary skills and knowledge to thrive in the dynamic world of Banking and Finance? Upon completing their graduation, students often face the pressure to secure employment and start earning, particularly in the middle-class and […]

The Public Sector Bank, Bank of Baroda has announced launch of Interoperable Cardless Cash Withdrawal (ICCW) facility wherein a customer can withdraw cash using UPI from the bank’s ATMs. Bank of Baroda is the first public sector bank to launch this service. Bank of Baroda customers as well as customers of other participating issuer banks […]

**Courtesy: Economic Times dt 9th June 2023

The Reserve Bank of India kept the interest rates unchanged for the second straight monetary review meeting amid abating price pressures and showed a favourable picture on medium term economic growth that is likely to be the best among the world economies. The RBI Governor showed a clearer path to the future, though the political […]

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Axis Rupay Credit Card on UPI Axis Bankis the sixth bank to launch Rupay credit cards on UPI after Punjab National Bank, Union Bank of India, Indian Bank, HDFC Bank, and Canara Bank. This means, you can now link Axis Bank RuPay Credit Cardwith the UPI application by entering the credit card's last six numbers and expiry date. Customers can currently [...]

Paytm Payment Bank offers new UPI features

Best Home Loan Rates

Private Banks Bet on Non-Govt Capex, NBFC Growth

Stagger your entry into Medium and Long Term Debt funds

How do i manage my credit debt?

Frauds Detection

EMIs for UPI payments from ICICI Bank

Responsiveness of Prices to interest rates **Courtesy: Business Lines dt 12.4.23

Acceptance of Green Deposits A green deposit is a fixed-term deposit for investors who are looking to invest their surplus cash reserves in environmentally beneficial projects and initiatives. The Reserve Bank of India (RBI) has released a set of guidelines for banks and other financial institutions to accept green deposits. According to the central bank, funds earned [...]

Lessons for India from US Bank Debacle. **Courtesy: Business Lines dt 11th April 2023

Digital Lending Digital Lending involves lending through web platforms or mobile apps, utilizing technology for authentication and credit evaluation. History reveals that lending has been a transaction in which the lender gives money to the borrower in exchange for a return (interest) on the money. There are a variety of complex lending and financing instruments [...]

RBI has proposal to permit UPI transactions via pre-sanctined credit lines.  This means, UPI will nothing but your Credit Card in future.  A limit is set under your UPI and you can use UPI instead of a Credit Card in future….Wah BUY NOW AND PAY LATER is now possible through UPI.   Here is an [...]

The Apex court has brought out its version of Frauds duoe to the changes in the Indian Accounting Standards.  The court feels that Banks growth is vital for ensuring high growth. The country cannot afford another mega ­scam that exposed the gaping holes in  the financial system.  It suggests size based dispensation, in case of small businesses who should not be made to suffer due to losses. Here [...]

The Central Bank Digital Currency or CBDC as is referred to was launched by Reserve Bank of India, on 1st December 2022 a month after the trail for wholesale or interbank transactions. But still this has not been popular among public who prefer Googlepay, MPay and other Digital Payment methods.  Also, majority of the people [...]

RBI to hike REPO Rate

Diminishing Clout of PSU Banks

IBA, Banks Plan to Increase Startup Funding

It is the order of the day to talk about e-commerce, or electronic commerce, which is a term used often in sales discussions. Product sellers and service providers are able to increase sales through online commerce and boost revenue with ease. Selling online is a popular sales method, worldwide. A report adds to say that [...]

Has UPI shadowed usage of Debit Cards?

Gross and Net Non Performing Assets Gross non-performing assets (GNPAs) and net non-performing assets (NNPAs) are important metrics used in the analysis of a bank's financial health. Non-performing assets (NPAs) are loans or advances that have stopped generating income for the bank because the borrower has failed to repay them on time. Gross NPA is [...]

The SVB Bank’s fall and its impact on Indian Banks Silicon Valley Bank Collapse Startup-focused lender SVB Financial Group on March 10 became the largest bank to fail since the 2008 financial crisis, in a collapse that roiled global markets.   U.S. authorities launched emergency measures on Sunday to shore up confidence in the banking [...]

Bad Loans Down but Wilful Defaulters Shoot up

Balance in a Home Loan can be transferred from one bank to another which is well known to all of us.  Let us understand some pros and cons of shifting your home loan to a bank that is offering a lower interest rate. Should you go for a Home Loan balance transfer?

POS Terminals and the Future of Digital Payments

Article written on TechPlus Education Technology. Wealthy Indians Rush to invest in Liberalised Remittance Schemes

Indian Banks Unprepared for ESG Norms in Lending

Importers Banking on RBI Support Indian importers are taking less insurance against Foreign Exchange fluctuations. The data indicates, on expectations that the central bank will continue to intervene to keep the rupee above the key psychological level of ₹83 per $. Dollar purchases by importers for delivery beyond the spot date dropped in February according to Reuters’ calculations based on data by the Clearing Corporation of India. Importers bought about $1.24 billion daily, on average, in the forward markets this month, down from $1.50billion in January and from$1.54 billion in the October/ December quarter. It is believed that large importers are looking at the USD/INR call spread o;ption structures. Call spreads protect importers up to a certain price, but cost less than an outright call [...]

Online Payment System between India and Singapore The launch of online payment system UPI-PayNow, a linkage between Singapore and India, was launched by RBI Governor Shaktikanta Das and Monetary Authority of Singapore MD Ravi Menon.   The linkage of the payment systems would enable residents of both countries in faster and cost-efficient transfer of cross-border [...]

How NPCI Made UPI so Simple

A negative interest rate means the Central Bank charges negative interest on deposits made by commercial banks with the Central Bank where instead of receiving money on deposits, commercial banks must pay interest to the Central Bank.  Bank will transfer this negative interest rate to their loan and deposit activities. Not necessarily banks would be [...]

Data Protection and Privacy When you think about it, the most valuable thing on your computer or network is the data you create.  Operating systems and applications can always be reinstalled, but user-created data is unique and if lost, may be irreplaceable. Some data is confidential and exposure of your social security number, credit card, [...]

Micro Finace should be incentivised

Savings to last a life time

New Provisioning Regime A discussion paper of the Reserve Bank of India revealed that the bank is moving closer towards ring fencing the banking system from credit losses. It proposes to move to provisioning on the principles of 'expected losses' from 'incurred losses.' The move would be over a period of five years. The Central [...]

Savings to last a life time

Privatization and Debts on Banks' Radars Banks were challenged in 2022 by the sluggish growth in deposits, which have not kept pace with credit. One reason is that deposits, unlike debt mutual funds, do not offer any tax breaks.  Here is an excerpt of the article on this subject.    Public sector banks (PSBs) are [...]

HDFC's twin merger

NBFCs and Economic Activity

RBI puts on hold NUE licensing What Is NUE License? NUE means New umbrella entities. This license allows the creation of a digital payment network. For now, NPCI handles all types of digital payments in India. In other words, NPCI handles all retail payments in India. Through this license, RBI now wants to introduce a new [...]

RBI to raise Rs. 16,000 Crores via Sovereign Green bonds

NBFCs and Economic Activity

Banks advised to orient to Green Finance MNRE or Ministry of New and Renewable Energy is a ministry of the Government of India, which is engaged in research and development, intellectual property protection, and international cooperation, promotion, and coordination in renewable energy sources such as wind power, small hydro, biogas, and solar power. The broad aim of the ministry is to develop and deploy new and [...]

Small Finance Banks Deposit rates

Accelerating Growth of Private Sector Banks It is a great news from RBI that Private sector banks (PvBs) continued to overtake public sector banks in overall acceleration in credit growth, which is clear from their increased share in total credit which stands at 38.4 per cent in September 2022 from 37.5 a year ago and [...]

Power of Commas and Colons in RBI terms

“Buy now pay later” is the dictum for the Credit Card users.  There was a huge fall in Credit Card spends during Cororna period, which however could pick up after the Corona Wave.  However, for the first time, there is a fall in Credit Card spends in the past six months, which is explained herein. [...]

Reserve Bank of India, the Regulator has now felt that it is time to differentiate between core and non-core functions of PSU Banks.  Accordingly it is likely that RBI may release more stringent framework amending the Banking Regulations Act and ensure to segregate the two businesses and thus prevent any conflict of interest between the [...]

Decision on Privatisation of PSBs after consultation

Reserve Bank of India, the Regulator has now felt that it is time to differentiate between core and non-core functions of PSU Banks.  Accordingly it is likely that RBI may release more stringent framework amending the Banking Regulations Act and ensure to segregate the two businesses and thus prevent any conflict of interest between the [...]

SLICE receives PPI licence from RBI

Fintech initiatives have brought many changes in the Digital Industry.  Here is an article about Card Fintech Company SLICE has received a prepaid Payment Instrument (PPI) licence from Reserve Bank of India.  This initiative came after RBI barred prepaid cards from being loaded with credit lines. SLICE receives PPI licence from RBI **Courtesy: Economic Times [...]

Rupee in the recent days has fallen terribly in the international market.  RBI is faced with problems like low economic growth, high inflation and a continuous weakening of Rupee against Dollar in the recent days.  Here is an article analyzing as to whether in the present context the cost of rupee depreciation is beneficial or [...]

Urban cooperative banks are localised financial service providers who operate in our country for more than a century. They cater to the lower middle class and people with limited resources, as well as self-employed and micro-enterprises.  Here is a latest guideline issued by RBI governing the Urban Cooperative Banks.

NPCI has proposal to cap the total volume of UPI-based transactions processed by all third party app providers (TPAP) to 30% of the total volume of transactions processed by UPI in the preceding three months, on a rolling basis. For example, if the average number of UPI transactions for January, February and March is 300, [...]

Asset Reconstruction Company (ARC) is a specialized financial institution that buys the Non-Performing Assets (NPAs) from banks and financial institutions. It helps banks in cleaning up their balance sheets by buying their bad loans Bad loan = NPA (Non-Performing Asset). ARCs clean up the balance sheets of banks when the latter sells these assets to [...]

The BSR-1 return relates to bank credit. Each branch/office of a bank is required to submit this return to the Reserve bank of India as on 31st March every year. In case the 31st March is a holiday, the figures should relate to the immediate preceding working day. 2. The bank credit required to be [...]

SEBI has come out with norms on insider trading targeting mainly the mutual funds portfolios, Fund Managers and Executives in possession of price sensitive details.

The challenges that has arisen globally has compelled RBI to hike Repo rate by 50 BPS which is raised from 5.40 percent to 5.90 percent.  Global factors quoted are – Covid 19 and Ukraine issues and domestic factors are – Inflation and price stability leading to overall growth.  Here is an article on the increase.

It is well known that RBI's repo rate hike has paved way to make home loans more expensive.  However, realty experts feel that the demand for homes county-wide will not witness massive impact. While home loan rates are likely to settle at around 8 per cent, the existing demand in the market is expected to [...]

The Reserve Bank of India-led Monetary Policy Committee increased the repo rate by 50 basis points to 5.4% to take it to the pre-pandemic levels, as the monetary authority seeks to bring down inflation to its comfort band and in line with policy tightening by key central bank. Standing Deposit Facility (SDF) rate was adjusted [...]

Europe’s unexpected move to raise the cost of funds for the first time in a decade underscores the stickiness of a global price spiral that prompted the second outsized increase in the US benchmark rates in as many months. All the takers viz bankers, traders, analysts and fund managers also expect RBI to change its [...]

Account aggregator is adata empowerment platform, which is expected to revolutionise credit, insurance and investment by making it a lot more effective and efficient reducing information asymmetry.   What are the key notes of an AA platform? AA , otherwise termed as financial data aggregation, lists all or most of the account holder's financial information in [...]

The new policy of settlement of overseas trade in the local currency, has been welcomed by serveral sections of Trade community in the country.  The plan now makes Importers buy goods from abroad and make payment in Indian Rupee, which inturn would be credited to the special account of the correspondent bank of the partner [...]

Privatization of PSU banks is on the cards.  Whether it is correct to permit major business houses to bid for Public Sector Banks?  Here is an article which details on this.

The threshold of 10% shareholding cap for individuals in Public Sector Banks (PSBs) is being removed which means that Private Equity (PE) firms will now be able to pick up stakes in PSBs on the block for privatization.  The Government proposes to make these changes through Banks Laws (Amendment) bill that seeks to bring changes [...]

Reserve Bank of India has eased norms for NRI deposits and investments by FPIs in the backdrop of global uncertainties and the continuing weakness of the rupee against the US dollar.  Accordingly RBI has brought in various measures inorder to boost the inflows.  The foreign portfolio investors investments has been relaxed, the limits for external [...]

Gold Loan focused non-banking financial company (NBFC) Muthoot Finance said it has received an approval from Reserve Bank of India (RBI) to open additional 150 branches across the country. The new branches will be opened across southern and northers parts of the country the statement released revealed.

Since the processing of transaction using the tokens is yet to gain traction, Reserve Bank of India, has now extended the deadline for card tokenisation by another three months. Earlier the deadline was June 30,   and the central bank has now extended the deadline to September 30, 2022.  This is because the number of transactions [...]

Forward market plays an important role in deciding the Forex Reserves.  RBI has now decided to take advance delviery of outstanding long forward dollar positions points to its desire in order to protect the fast depleting Forex Reserves.  Here is an article which explains in detail about the RBI move and its repurcussions. PS: The [...]

Political nexus is quoted to be the reason in allowing Coo-opertive banks to lend Housing Loans and for Developer Loans.  Further, the delinquency rates is expected to go high through such exposures.  Here is an article which suggests that Small Finance Banks, in partnership with Urban Co-operative Banks if permitted to extend Housing Loans would [...]

Mr. R Subramania Kumar has been appointed as the new MD and CEO of RBL Bank which is troubled waters.  The new MD and CEO adds that the bank has no proposal to make any corrections to the balance sheet and that the commanding areas of the bank would continue as it is.  He adds [...]

MUMBAI – The Reserve Bank of India plans to float a discussion paper on introduction of expected credit loss framework for banks, said Deputy Governor M. Rajeshwar Rao at an event organised by IMC Chamber of Commerce and Industry. The excerpts from his speech are: Banks in India follow the incurred loss approach for loan loss provisions, [...]

Reserve Bank of India has recently hiked its REPO Rates. The MPC unanimously voted to increase the policy repo rate by 50 basis points to 4.90%.  After enjoying decadal low interest rates, borrowers will now have to brace for continuous interest rate hikes on their loans. This is because the Reserve Bank of India (RBI) [...]

Small Finance Banks have been granted with a differentiated banking licence, which is related proportionately to their growth in their capital base.  The policy clearly states that the Priority Sector Lending (PSL) of SFBs in total lending is continuously declining for the fourth consecutive year during FY 2021 and the Non priority sector lending accounts [...]

In its recent Monetary Policy Committee meeting, Reserve Bank of India hiked its REPO Rates. The MPC unanimously voted to increase the policy repo rate by 50 basis points to 4.90% and keep policy stance ‘withdrawal of accommodation’. Real GDP forecast for FY23 has been retained at 7.2%. After May’s surprise 40 basis-point off-cycle hike, [...]

The Reserve Bank of India (RBI) has proposed to allow the linking of credit cards to the UPI platform, Governor Das said while announcing the rate hike. To begin with, the Rupay credit cards will be linked to the UPI platform, which will provide additional convenience to the users and enhance the scope of digital [...]

Reserve Bank of India has eased norms for non-bank entities to set up Bharat Bill Payment operating units. RBI has reduced the net-worth reqirement to Rs 25 crore, which is set to encourage more players in the segment. At present, a net worth of Rs 100 crore is required to obtain authorisation for a non-bank [...]

Recently, several fraud cases have come to light where fraudulent loan accounts have been created through identity theft. Many individuals have raised concerns over new loan accounts reflecting in their credit report, which they never applied for or took. According to media reports, PAN details of individuals have been used by fraudsters to take personal loans. [...]

The author of this article feels that investors should constantly track their invested stocks and sectors to have an edge over the market. AXIS MUTUAL FUND has terminated the services of Viresh Joshi who was with the AMC for over a decade and served as a Chief Dealer and a Fund Manager. Axis AMC initiated [...]

Rights of a Nominee Vs. Legal Heirs 1 Rights Of Nominee v/s Rights Of Legal Heirs – Property In A Housing Society 24 January 2020 by (Nohid Nooreyezdan , Alpesh Parekh and Sharul Jain: AZB & Partners) =================================================================== The rights and position of a nominee has been of significant interest and debate for sometime now. [...]

The Reserve Bank of India (RBI) has highlighted concerns over cryptocurrencies from time to time. It has however not issued any instruction going against the Supreme Court’s order. The CEO and cofounder of COINBASE Brian Armstrong had recently said informal pressure from the RBI led the global crypto exchange to disable UPI deposits a few days after its launch in India. However, a person in the know pointed out that the RBI has only publicly highlighted its concerns on cryptocurrencies. Considering its prime responsibility of maintaining financialstability and the risks in cryptocurrency transactions like their possible use for illicit activities, price volatility, lack of customer protection, RBI has publicly highlighted its concerns, the source said. The RBI in its May 31, 2021, circular had stated that in view of the Supreme Court order, its circular dt April 6, 2018, which imposed restrictions on regulated entities in dealing with virtual currencies, is no longer valid from the date of the judgment. ‘Unique market’ Armstrong, in the company’s earnings call, had noted that India is a unique market in the sense that the Supreme Court has ruled they can’t ban crypto. “But there are elements in the [...]

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. In a mid-cycle move the Monetary Policy Committee (MPC) unanimously voted to raise the policy Repo rate by 40 basis points from 4 per cent to [...]

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. If you thought that your nominee will get all your assets and money easily and legally after you have left this world, then think again. Synopsis [...]

I am text block. Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. If you thought that your nominee will get all your assets and money easily and legally after you have left this world, then think again. Synopsis [...]

TransUnion CIBIL study reveals that over 16 crore Indians are considered to be credit underserved by the end of 2021 and half of the adult population was unserved. Of the 81.4 crore credit eligible population in the country, 40.8 crore or nearly 50 per cent was credit unserved while 16.4 crore or 20 per cent was credit underserved, according to the report. “Empowering Credit Inclusion: A Deeper Perspective on Credit Underserved and Unserved Consumers. According to the TransUnion CIBIL study, there has been a significant increase in credit served consumers, from 9.1 crore in 2017 to 17.9 crore in 2021. This [...]

Reliance Asset Reconstruction company has started acquiring distressed loans from banks even as its parent company Reliance Capital is undergoing an insolvency proceeding as per information available. Reliance ARC acquired stressed loan portfolios from Jana Small Finance Bank and Indian Overseas Bank in the last week of March this year. Both these deals are said [...]

State Bank of India, and someother large banks have started incresing their benchmark lending rate which is otherwise termed as MCLR (Marginal cost of diunds based lending rate) which would result in customers paying more interest on their housing, auto and other retail loans. To quote: SBI increased its MCLR by 10 basis points wef [...]

Through recapitalization (recap) bonds, Public sector banks (PSBs) had received capital which might take a hit of around Rs 13,000 crore since the Reserve Bank of India's (RBI's) has advised to recognise these bonds at market value, as per ICRA report. Despite the discounting of bonds by 44-45 per cent, the PSBs will continue to [...]

HDFC Bank on Monday said its board has approved the amalgamation of HDFC Investments and HDFC Holdings with HDFC and that of HDFC into HDFC Bank. Here are the salient features of the scheme. As part of the merger between HDFC and HDFC Bank, 42 shares of HDFC Bank would be given for every 25 [...]

Regulators are those who are vested with the authority of regulating as well developing the financial sector in the country.  Their main function is to regulate the financial system in the country.   Also, these institutions are looked upon when it comes to safeguarding the best interest of the depositors/savers of money.   Here are some of [...]

Bankers have decided to refer Future Retail Ltd (FRL) to the National Company Law Tribunal (NCLT) for insolvency proceedings over recovery of dues which could further stall the sale of retail assets to a unit of Reliance Industries Ltd (RIL). Further the lenders have invited financial and technical bids from insolvency professionals (IPs) by March [...]

The Finance Ministry on Tuesday confirmed in the Rajya Sabha that banks got over two third of amounts defrauded by Vijay Mallya, Nirav Modi and Mehul Choksi. In a written reply, Minister of State for Finance Pankaj Chaudhary said the three had defrauded public sector banks by siphoning off funds through their companies which resulted in a total loss of ₹ 22,585.83 crore to the lenders. Further Details are as under: As on March 15, assets worth ₹19,111.20 crore have been attached under the provisions of PMLA (Prevention of Money Laundering Act). Out of this, assets worth ₹15,113.91 crore have been restituted to Public sector banks. In addition, assets worth ₹06crore have been confiscated to Government of India. As on 15th March 2022, 84.61 per cent of the total defrauded funds [...]

An ETF, or exchange-traded fund, is an investment security that conglomerates some of the attributes of stocks as well as Mutual Funds. Similar to that of stocks, ETFs trade intra-day on an exchange.  Also like with mutual funds, many ETFs seek to track the performance of a benchmark index, such as the S&P 500. These days [...]

Banks use Certificate of Deposits to raise bulk funds from high net worth and institutional investors, which in other terms shows that there is rising demand for bank funds, due to an upward trend in economy’s growth.  Here is an article which details the outstanding of CDs at Rs. 1 lac crore.Banks use Certificate of [...]

The Kremlin is scrambling to stave off a run on Russian banks after Western nations announced a barrage of punishing sanctions. Russia's central bank was also reportedly bringing in new measures to prevent a sell-off of Russian securities. According to Reuters, central bank documents showed that it had ordered market players to reject foreign clients' [...]

India not only has the highest number of commercial bank branches in the world, the number of bank branches in rural and urban areas is almost equal After the demonetisation of Rs 500 and Rs 1000 notes, the country's banking system is going through the ultimate stress test. With long queues and bankers working overtime, [...]

What is ABG Shipyard fraud? ABG Shipyard, now credited with India's biggest bank fraud, created a web of transactions to cheat a consortium of 28 banks of Rs 22,842 crores between 2012 and 2017, in a case which has come to light only now. The banks include State Bank of India (SBI), IDBI and ICICI.   The [...]

The Reserve Bank of India (RBI) has cancelled the certificate of registration issued to  PC Financial Services Pvt Ltd, according to an official statement. "In exercise of the powers conferred under Section 45-IA (6) (iv) of the Reserve Bank of India Act, 1934, the Reserve Bank has cancelled the Certificate of Registration (CoR) issued to [...]

If someone had earlier said that one can get education in the comfort of their homes, irrespective of the geographical distance between the teacher and students, she would have either been mocked at for wishful thinking or be cursed for using ‘comfort’ and ‘education’ in the same sentence. Yet the present stands before us, telling [...]

The corona related restrictions had an adverse impact on economic growth, resulting in the RBI Monetary Policy going on a reviving growth. Repo rate remained unchanged in the RBI Policy on Feb 10, 2022.  However, there are many indicators which hint that inflation may show a different picture which may cause a concern. While borrowers [...]

The term negative interest rate means INTEREST PAID TO BORROWERS RATHAN TO THE LENDERS.  For example, RBI charges commercial banks  on their reserves in terms of non-traditional expansionary monetary policy, instead of crediting them.  This is an unusual scenario which normally occurs during deep economic crisis like recession when all efforts through monetary policies of [...]

·         Former RBI Governor Urjit Patel has been appointed as a Vice President of the Beijing-based multilateral funding institution AIIB, according to sources in the bank on Sunday. India is a founding member of the Asian Infrastructure Investment Bank (AIIB) with the second-highest voting share after China. It is headed by the former Chinese vice-minister for finance [...]

RBI proposes new norms for classification of banks' investment portfolio The Reserve Bank of India (RBI) on Friday proposed new norms for the classification and valuation of the investment portfolio of banks, with a view to align them with the global prudential framework and accounting standards. ADVERTISING According to the proposed norms, the investment portfolio [...]

“Doorstep banking – Free 1 transaction per quarter* till 31stMar’22! Why visit the branch, when the branch is ready to come to you! is an SMS that HDFC Bank has been sending its senior citizen customers. You can now request for cash pickup , Cash drop (Min &max. amount being 5K-25K or cheque pick up [...]

Reserve Bank of India (RBI) has cancelled the authorisation certificates of Muthoot Vehicle and Asset Finance Ltd and Eko India Financial Services Private Ltd for non-compliance with regulatory requirements. Both the Payment System Operators (PSOs) had authorisation for issuance and operation of prepaid payment instruments.  RBI adds that following the cancellation of the Certificate of [...]

Bankers may hesitate in selling bad loans to asset reconstruction companies (ARCs) as the Income-Tax Department’s recent search action on four ARCs revealed that they had adopted various unfair and fraudulent trade practices in acquiring these loans. This development could be a body blow to ARCs as banks may avoid this channel of recovery, preferring [...]

Mutual fund participants swear by balanced advantage funds or dynamic asset allocation funds. They believe these schemes are ideal for new investors and conservative investors to get into the market without worrying too much about the market levels and valuations. Read on if you want to find out more about these schemes. Balanced advantage funds [...]

The country’s largest public sector bank, State Bank of India (SBI), today announced that it has hiked the base rate by 10 basis points (bps). This signals the start to the end of regime of low interest rates. Besides being a reference rate for borrowers, the base rate also works as an indicator of the [...]

In terms of the scheme of amalgamation of PMC Bank with Unity Small Finance Bank (Unity SFB), the Depositors of the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank with deposits over ₹5 lakh will get their money back in a piecemeal manner over an extended 10-year period. Further, no further interest will be payable on [...]

It is well known that portfolio allocation to multiple asset classes like equity, debt, gold and others cannot be over-emphasised and there is wide fluctuation in returns, every year, in the various asset categories like domestic equity, international equity, gold, and to a lesser extent in debt. In certain years, equity gives phenomenal returns and, [...]

The Union Government has announced that Joint bank account is not mandatory for spouse pension, which is made to ease out the hurdles for all sections of society including retirees and pensioners. The new clarification adds that in case the head of office is satisfied that it is not possible for the retiring government servant [...]

Monday the Reserve Bank of India has placed in public domain a draft scheme of amalgamation of The Punjab and Maharashtra Cooperative (PMC) Bank with Unity Small Finance Bank Ltd. (USFB), a banking company incorporated in India under Companies Act, 2013, and having its Registered Office in New Delhi. USFB has commenced operations with effect [...]

The Reserve Bank of India (RBI), in an advisory to the members of the public, said co-operative societies have neither been issued any license under Banking Regulation (BR) Act, 1949 nor are they authorized for doing banking business. Further, insurance cover from the Deposit Insurance and Credit Guarantee Corporation (DICGC) is also not available for [...]

Inflows in the mutual fund industry through systematic investment plans or SIPs reached close to Rs 67,000 crore in the first seven months of the ongoing fiscal, suggesting the growing popularity of the route for investment among retail investors. This comes following an inflow of Rs 96,080 crore through the route in 2020-21, data with [...]

With high expectations on the economic growth, banks and non-banking finance companies (NBFCs) have stormed up on their hiring plans with an increase of as high as 30-35% in recruitments from a year earlier, especially of those on the technology side of the business. Private lender HDFC Bank, which aims to reach 200,000 villages in [...]

State Bank clerical selection Link

PSU banks want RBI to regulate India Debt Resolution Company Ltd (IDRCL), and feel that transparency of process and incentives would do a better job.  Here is an article which explains this.

The finance ministry on Wednesday appointed veteran banker K.V. Kamath as the chairman of the newly constituted development finance institution National Bank for Financing Infrastructure and Development (NaBFID).  The Department of Financial Services in the Finance Ministry in a tweet said: “New approach to building #AatmaNirbharBharat! Central government has appointed Shri K.V. Kamath to the post [...]

Courtesy: Financial Express dt 25th Oct 2021

There is huge demand for Credit Cards and the market is going high in the recent days. Meanwhile, many banks which include HDFC Bank and Kotak Mahindra Bank are keen in acquiring Citi’s credit card division in India. It is learnt that around 5­6 banks are in the fray to bid for Citi’s Card business in India which include HDFC Bank, ICICI Bank, Kotak Mahindra Banl and DBS India. Many Indian lenders are looking to scale up their credit card business and Citi high quality customer portfolio will be a useful addition. Opportunities Brokerage firmJefferies had [...]

Courtesy: Economic Times dt 25th Oct 2021

Certain actions of the Regulator though not unintentional end up with a different result.  Here is an article which narrates it more. Many well-intentioned steps taken by regulators in the past are creating headaches on multiple fronts due to the unintended consequences of specific measures. Although welcome, the new Regulations Review Authority 2.0 (RRA) set [...]

Equitas Small Finance Bank (SFB) is going to raise around Rs 1,000 crore in the equity capital through issue of shares to institutional investors which inturn will meet their minimum public shareholding (MPS) norms. This amount which is being raised includes a premium on shares. The bank’s board has cleared this and this will satisfy the [...]

Limited liability partnerships (LLPs) allow for a partnership structure where each partner's liabilities are limited to the amount they put into the business. ... Limited liability means that if the partnership fails, then creditors cannot go after a partner's personal assets or income.   Government has plans to make LLP ownership transparent this month.  Here is an [...]

Governor’s statement on RBI monetary policy Click Here - RBI monetary policy dt 8th Oct 21

Two factor authentication required for Credit card during online transactions effective 1 October 2021 is introduced by RBI

Click Here - BANKING AND SSC OCT 2021

Courtesy : Business Line dt 25 Sept 21

Courtesy: Business Lines dt 25 Sept 21

Frauds are on the increase these days and it is necessary that we should try to protect ourselves from possible financial frauds.  Here is an article which explains about the steps and the basics to be followed.

The Regulator RBI has now come forward to announce that loan exposures classified as fraud can be transferred to Asset Reconstruction Companies (ARCs). This comes in the wake of banks reporting frauds aggregating Rs. 3.95 lac crore between the Financial Year 2019 and 2021. Stressed Assets which are in default for more than 60 days [...]

It is interesting to note that banks have started partnering with others for issue of Credit Cards.  If a bank has a co-branded credit card, it leads to substantial growth in customer loyalty.  The probability of our existing customers turning to our competitors is avoided, since they are aware that they can get better benefits [...]

Card Tokenisation is now ready and banks inform that it will not impact customers.  While lenders expect it be a smooth transition, thee is expected to be some initial friction since consumers and merchants shift to the new system.   This move by Reserve Bank of India us expected to enhance card security framework for digital [...]

An asset reconstruction company is a special type of financial institution that buys the debtors of the bank at a mutually agreed value. It attempts to recover the debts or associated securities by itself. The required funds to purchase such debts can be raised from Qualified Buyers.   Obviously this helps banks to concentrate in normal banking activities. Instead [...]

Banks are not vigorously pushing the Retail Credit. The total borrowings by individuals have overtaken the loans to businesses for the first time as banks aggressively push retail credit to make up for the lacklustre demand from companies. Outstanding retail loans stood at ₹28.58 trillion as of 30 July, while loans to industries stood at [...]

The Depositor Education and Awareness Fund Scheme (DEAF Scheme) was established by the Reserve Bank of India (RBI) in 2014 for the promotion of depositors’ interest and for any other related purposes deemed necessary by the RBI.  Accordingly, an amendment was made to Banking Regulation Act, 1949, and Section 26 A was inserted into the Act, authorising RBI [...]

Pradhan Mantri Jan Dhan Yojana is a financial inclusion program of the Government of India open to Indian citizens, that aims to expand affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions. All Indian nationals are eligible to apply for the Jan Dhan Yojana scheme. Any form of identity proof that [...]

COURTESY : ECONOMIC TIMES dt 1 Sept 2021

The Finance Minister Nirmala Sitharaman today launched the EASE 4.0 - Enhanced Access and Service Excellence - a common reforms agenda for Public Sector Banks (PSBs) for the financial year 2021-22 which is  aimed at institutionalising clean and smart banking. Co-lending with nonbanking finance companies (NBFCs), digital, agriculture financing, and technological resilience for 24x7 banking [...]

The Finance Minister Nirmala Sitharaman today launched the EASE 4.0 - Enhanced Access and Service Excellence - a common reforms agenda for Public Sector Banks (PSBs) for the financial year 2021-22. The reforms agenda is aimed at institutionalising clean and smart banking. The first edition of EASE 1.0 was launched in January 2018, while EASE [...]

RBI had banned HDFC Bank from issuing fresh Credit cards on December 3rd last year and introducing new digital products after several people reported technical glitches in the past two years. However, the ban was lifted on 17th August 2021 which has boosted the bank’s confidence. The bank has now readies to issue fresh credit [...]

RBI has come out with new rules on usage of Cards. Under the new guidelines, several card holders both debit and credit making payments online in 2022 may have to enter their 16-digit card numbers every time while making a payment online as opposed to just authenticating these transactions through the CVV (Card Verification Value) [...]

Mr. Sameer Shetty, President and Head (Digital Business and Transformation) in an interview reveals as to how they are planning to make their front end desk personnel more efficient.   Various changes including Customer app being personalized and refreshed to give a different look are on their cards. They have moved to the digital arena with [...]

Bharat Billpay an initiative of National Payments Corporation of India gets a new CEO.  Ms. Noopur Chaturvedit is the new CEO of BBP. Here is an article on this. **Courtesy: Mint dt 13th Aug 2021

Here are few tips, which provide few tips as to how to gain higher return with lower exit loads in Mutual Funds. What is suggested is that you go for no-load funds wherein a sales force or a distributor is not used. It was an overall opinion that load funds would cease to exist since [...]

Projecting a rise in the retail inflation, and in order to increase the liquidity RBI has decided to keep the REPO rate unchanged which remains at 4% and the inflation is projected tobe 5.7% (from the previous figure of 5.1%) Here is an article from Business Lines which provides an overview of the RBI’s policy [...]

The Regulator RBI, has decided to amend guidelines related to export credit in foreign currency and restructuring of derivative contracts to ensure smooth transition away from the London Interbank Offered Rate (Libor). Noting that the move away from Libor is a significant event that poses certain challenges for banks and the financial system, RBI Governor revealed that the central bank has been engaging with banks and market bodies to proactively take steps. Further it is said that the Regulator also has issued advisories to ensure a smooth transition for regulated entities and financial markets. Export credit: Under the amended guidelines, banks will be permitted to extend export credit in foreign currency using any other widely accepted Alternative Reference Rate in the currency concerned. At present authorized dealers are [...]

Equitas Holdings, the promoter of Equitas Small Finance Bank (SFB) has been permitted to apply for amalgamation of the promoter into itself. The licensing guidelines of RBI states that a promoter of SFB can exit or cease to be a promoter after the mandatory initial lock-in period of five years (initial promoter lock-in) which again depends [...]

The Reserve Bank of India (RBI) has cancelled the license of Madgaum Urban Co-operative Bank Limited, Margao, Goa. The license was cancelled because the bank’s financial position was not able to pay its present depositors. The Madgaum Urban Co-operative Bank Limited does not have adequate capital and earning prospects. The bank was not in compliance [...]

cKYC What is cKYC? cKYC stands for Central KYC which is a centralised repository which allows storage of personal information of the customer centrally. Earlier, when a customer went to a financial institution for buying any product, KYC (Know Your Customer) was needed to be done each time for each product and with each institution [...]

We might recall that Reserve bank of India had issued instructions that entities holding a Cash Credit or Overdraft accounts should not simultaneously be permitted to have a Current Account also which paves way for diversion of funds.  The deadline for compliance was till July 2021 for due compliance and this compelled the banks to [...]

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Here is a good news for non-bank entities from RBI.  In order to bring the non-bank entities into the payment system fold, RBI have now come out with an approval to permit Payment system providers also viz., Pre-paid card issuers, card networks and white label ATM operators get access o its Centralized Payment Systems (CPS), [...]