Banking and Financial Awareness – 118

Site Administrator

Editorial Team

02 Nov, 2016

1469 Times Read.

Banking Awareness,


RSS Feeds RSS Feed for this Article



Read this in Hindi

1) Which bank on 8 September 2016 became the first bank in India to deploy ‘software robots’ that emulate human action, in its over 200 business processes? – ICICI Bank

Explanation: On 8 September 2016 the country’s largest private lender ICICI Bank became the first bank in India to deploy ‘software robots, that emulate human action, in its over 200 business processes, thereby reducing the response time to customers by up to 60%.

The bank claimed that it has re-engineered over 200 business processes which are powered by software robots across various functions of the bank.

This initiative marks a milestone in the banking innovation in the Indian banking industry as it joins a select group of overseas organisations which have deployed this unique state-of-the-art robotic technology in such a large way.

Software robots have reduced the response time to customers by up to 60% and increased accuracy to 100% thereby improving the bank’s productivity and efficiency.

………………………………………………………..

2) Urjit Patel took over as the new Governor of the Reserve Bank of India (RBI) on 4 September 2016 as Raghuram Rajan’s term as head of India’s central bank ended a day earlier on 3 September 2016. What is Patel’s chronical order as RBI’s Governor? – 24th

Explanation: Urjit Patel became the 24th Governor of the RBI on 4 September 2016 as he replaced Raghuram Rajan.

Patel is someone who is well versed with the changing dynamics of Indian economy since early 1990s. Even during the current tenure under Raghuram Rajan, he is best-known for preparing a report that helped India shift to an inflation targeting regime for setting interest rates.

He is an economist from Yale University, has worked at the International Monetary Fund (IMF) from 1990 to 1995 and been a non-resident Senior Fellow at the Brookings Institution since 2009.

It is worth mentioning that Osborne Smith, a professional banker, was the first Governor of the RBI and held this prestigious post from 1 April 1935 to 30 June 1937.

………………………………………………………..

3) The Reserve Bank of India (RBI) during September 2016 came out with which proposal with regard to Islamic banking? – It changed it outlook towards Islamic banking and potentially proposed opening Islamic finance in the country

Explanation: The RBI has proposed working with the government to introduce interest-free banking to tackle financial exclusion for religious reasons, potentially opening Islamic finance to the largest Muslim minority population in the world.

This proposal was made in RBI’s annual report that was released on 3 September 2016.

The proposal marks a shift in stance by the RBI, which had previously said Islamic finance could be offered through non-bank channels such as investment funds or cooperatives.

………………………………………………………..

4) Outgoing RBI Governor Raghuram Rajan during September 2016 came out with what warning for the financial world that was given wide coverage in the media all over the world? – He warned against low interest rates worldwide

Explanation: In an interview to the New York Times published on 4 September 2016, Raghuram Rajan cautioned that low interest rates globally could distort markets and will be difficult to abandon.

He said such measures by central banks cannot substitute other policy instruments and broader reforms and expressed hope that his successor will finish the process of cleaning bank balance sheets.

It is worth mentioning that Rajan had predicted the 2008 global financial crisis almost 3 years ago. He had said that excessive risk threatened the entire global financial system.

………………………………………………………..

5) The Reserve Bank of India (RBI) on 30 August 2016 issued which important guideline to banks pertaining to registration of customers’ mobile number? – It made it mandatory for banks to allow customers to register their mobile numbers through any ATM

Explanation: In an important the RBI has made it mandatory for banks to allow customers to register their mobile numbers through any ATM. Banks have also been told not to insist that customers visit only their home branch to get their mobile numbers registered and to have this facility for customers across branches.

It is worth mentioning that registering mobile numbers (linking numbers to bank accounts) is important because it facilitates SMS alerts for every transaction and helps curb fraud. Mobile numbers are also used to send one-time passwords (OTPs) in transactions where the credit card is not present.

A registered mobile number is also a prerequisite for using a mobile banking application.

………………………………………………………..

6) The Reserve Bank of India (RBI) on 1 September 2016 came out with which new measure for banks’ stressed assets? – It expanded the market for banks’ stressed assets by permitting them to be sold to other lenders

Explanation: The RBI expanded the market for banks’ stressed assets by permitting them to be sold to other lenders, including non-banking financial companies (NBFCs) and financial institutions. It also issued guidelines specifying that all assets classified as doubtful should be reviewed by the board of banks or a committee of board members.

Till now the banks were permitted to sell stressed assets to securitisation companies and reconstruction companies.

Besides, RBI also mooted an e-auction mechanism for NPAs to attract a wide variety of buyers.

………………………………………………………..

7) Indian insurance regulator IRDAI during September 2016 extended the revival option for unit-linked insurance plans (ULIPs) to two years which means lapsed ULIPs could be revived even two years after the policy has lapsed. What was the maximum revival period for ULIPs till now? – 90 days

Explanation: The earlier regulation insisted on payment within 90-days for ULIPs, following which the ULIP would lapse. Lapsed policies are a huge cost and concern for both insurers and policyholders.

Taking this into account, the Insurance Regulatory and Development Authority of India (IRDAI) during September 2016 announced that policyholders will be able to revive ULIPs even two years after the policy has lapsed.

The new regulation makes ULIPs on par with traditional plans, which have always enjoyed a two-year grace period for payment.

The average tenure of most ULIP plans is 10-20 years. IRDAI has mandated that ULIPs should run a minimum tenure of 10 years.

………………………………………………………..

8) Life Insurance Corporation (LIC) completed how many years of its incorporation on 1 September 2016? – 60 years

Explanation: Life Insurance Corporation (LIC) came into existence on 1 September 1956 and it started its operations from this date. It was incorporated by consolidating the business of over 250 private life insurance companies that were providing their services at that time.

Earlier the Parliament of India had passed the Life Insurance of India Act on 19 June 1956 creating the Life Insurance Corporation of India.

Thus LIC completed 60 years of its incorporation on 1 September 2016. It commemorated its 60 years by organizing Diamond Jubilee celebrations. LIC is the largest insurance company in India with an estimated asset value of Rs. 1,560,482 crore (US$230 billion).

………………………………………………………..

9) As part of its Diamond Jubilee celebrations, the Life Insurance Corporation (LIC) of India announced what benefit for its policyholders on 1 September 2016? – A one-time bonus ranging from Rs 5 to Rs 60 per thousand rupees of sum assured

Explanation: Life Insurance Corporation (LIC) on 1 September 2016 announced a special one-time bonus ranging from Rs 5 to Rs 60 per thousand rupees of sum assured to policyholders as part of its Diamond Jubilee celebrations.

This converts into Rs 500 for a policyholder with an assured sum of Rs 1,00,000, or Rs 6,000, depending on the duration of the policy, meaning older the policy or closer to the maturity date, maximum the bonus.

The bonus will be eligible for policies in force as of 31 March 2016, and existing on or after 1 September 2016. Even policies which have lapsed as of 31 March 2016 will be eligible provided they are subsequently revived.

The move will benefit over 29 crore individual policyholders of LIC as well as over 12 lakh group policyholders.

………………………………………………………..

10) In Britain’s biggest damages claim, a lawsuit worth $19 billion against which financial entity was filed in the country on 8 September 2016? – MasterCard

Explanation: The case brought by Walter Merricks, a former chief financial services ombudsman alleges that the global card payments company MasterCard set unlawfully high fees charged to stores when shoppers swipe their debit or credit cards that were passed on to consumers in higher prices.

Mastercard was accused of doing this for 16 years between 1992 and 2008, according to the documents filed at the Competition Appeal Tribunal on 8 September 2016.

Merricks was head of Britain’s financial services ombudsmen for ten years until 2009, helping to settle disputes between consumers and financial services companies.

………………………………………………………..

| Current Affairs | Banking Awareness | SBI | RRB | SBI | IBPS | Banking | GK | Banking| Banking Updates | 2017 Banking | Banking Awareness 2017 |

The Swedish newspaper was recently asked it to delete the reference made by President Pranab Mukherjee to the Bofors scam in an interview to it, as a claim protested by the Indian Government on 27 May 2015. India has expressed disappointment over the disrespect shown to the President, the newspaper has defended its right to publish what was said during the interview.

Know, who is Vijay Kelkar and what is PPP !

Vijay Kelkar is a renowned economist and a former Finance Secretary. He was appointed head of newly constituted committee to give recommendations to recast the model of Public-Private-Partnership (PPP) model in India. India is one of the largest PPP market with over 900 projects. The Kelkar committee will review the PPP policy, suggest a better risk-sharing mechanism between private developers and the government after analysing such projects.

Know, who is Yaduveer Krishnadatta Chamaraja Wadiyar !

Yaduveer Krishnadatta Chamaraja Wadiyar was crowned as the new Maharaja of of Mysuru (Mysore) royal family. He is the 23-year old grandson of Princess Gayathri Devi, who was the eldest daughter of the last Maharaja of Mysore, Sri Jayachamarajendra Wadiyar. The coronation was held at Mysuru’s famous Amba Vilas Palace, which was decked up for the occasion.

Know about Sepp Blatter!

Swpp Blatter, was re-elected as FIFA president for a fifth term at the 65th Annual Congress of FIFA held at Zurich for four year term.

Prince Ali bin al-Hussein of Jordan stood against Blatter in this election. It is worth mentioning that FIFA is going through a major controversy regarding corruption in the organisation with two FIFA vice presidents and a recently elected FIFA executive committee member still in custody.

 


Responses on This Article

© NIRDESHAK. ALL RIGHTS RESERVED.