Banking and Financial Awareness – 124

Site Administrator

Editorial Team

20 Jan, 2017

1644 Times Read.

Banking Awareness,


RSS Feeds RSS Feed for this Article



Read this in Hindi

1) What is the name of India’s first international exchange that was inaugurated by Prime Minister Narendra Modi on 10 January 2017 at Gandhinagar? – India INX

Explanation: India INX is the name of India’s first international exchange. It has been established at the International Financial Service Centre (IFSC) in GIFT City, Gandhinagar (Gujarat). It is a wholly owned subsidiary of BSE and is expected to compete with similar bourses in Singapore and Hong Kong.

Formal trading operations at India INX will start from 16 January 2017. It will trade in a vast range of products such as equity derivatives, currency and commodities, barring agricultural futures. Initially, the exchange will be open for 22 hours a day, which may be extended to 23 hours later. In the first year, the exchange plans to focus on equity derivatives and currency.

This exchange targeting foreign investors is India’s attempt to take on the $48 billion worth of offshore trade and business activities from Singapore, Dubai and Hong Kong, which already have such exchanges in place.

……………………………………………………………………………..

2) Who was appointed the first head of India INX, country’s first international exchange? – V. Balasubramanian

Explanation: V. Balasubramanian was on 9 January 2017 deputed by BSE Ltd., Asia’s oldest stock exchange, to head India INX as its first Managing Director (MD) and Chief Operations Officer (COO). He was till now the Chief Business Officer (CBO) in the BSE.

BSE chief executive officer Ashish Chauhan is the chairman of the INX board, which also includes former Reserve Bank of India deputy governor Anand Sinha, and economist Ajit Ranade.

It is worth mentioning that India INX is a wholly owned subsidiary of BSE.

……………………………………………………………………………..

3) Which entity became India’s first payment bank after the services of this entity were formally launched across all 29 states on 12 January 2017? – Airtel Payments Bank

Explanation: The services of Airtel Payments Bank, a subsidiary of the country’s leading mobile phone operator Bharti Airtel, were formally launched across all 29 states on 12 January 2017. The nationwide launch of Airtel Payments Bank was done at the hands of the Union Finance Minister Arun Jaitley in Delhi. It thus became India’s first payments bank to launch its pan-India operations.

With this national rollout, Airtel Payments Bank has a network of 2,50,000 banking points, (Airtel retail stores) across 29 States from day one. This is more than the total number of ATMs in the country. While Bharti Airtel has 80% stake in the entity, Kotak Mahindra Bank has 20% stake in it.

On 11 April 2016, Airtel Payments Bank had become the first entity in India to receive a payments bank licence from the RBI. In November 2016, Airtel had rolled out its banking services in Rajasthan and was the first bank to start payment bank services in the country. In December 2016, Airtel extended its footprint to south India by rolling out pilot services in Andhra Pradesh and Telangana.

In 2015, a total of 11 companies had received an in-principle approval from the RBI to offer payments bank services out of which three have surrendered their licenses i.e. Chalomandalam Distribution Services, Sun Pharmaceuticals and Tech Mahindra.

A payment bank is fully digital and paperless banking and customers can access services over their mobile phones, including all feature/basic mobile phones. It offers all basic banking facilities like account-opening services and cash deposit & withdrawal facilities. Savings accounts are opened using Aadhaar based e-KYC. This requires no documents at all, only the customer’s Aadhaar number is needed. Although deposits up to Rs.1 lakh can only be made.

……………………………………………………………………………..

4) Which entity during January 2017 received RBI’s in-principle approval to pick up a 51% stake in Catholic Syrian Bank and thus is poised to become the first-ever non-banking financial entity to takeover an Indian bank? – Fairfax Financial Holdings

Explanation: The Reserve Bank of India (RBI) has given an in-principle approval to Canadian billionaire Prem Watsa’s Fairfax Financial Holdings picking up a 51% stake in Kerala-based Catholic Syrian Bank (CSB).

This will be the first takeover of an Indian bank by a non-banking financial entity, after the central bank tweaked ownership norms in May 2016. The last takeover of a private sector lender by a foreign bank happened when ING picked up majority stake in Vysya Bank in 2002-03.

RBI’s approval requires Fairfax Financial Holdings to bring down its stake in CSB to 15% over a period of 12 years. It also mandates that the foreign investor cannot sell its shares in the first five years.

……………………………………………………………………………..

5) Who was appointed as the Deputy Governor of the Reserve Bank of India (RBI) on 28 December 2016 to take the vacant post created due to Urjit Patel’s elevation to Governor’s post? – Viral V. Acharya

Explanation: Viral V. Acharya was appointed as one of the four deputy governors of Reserve Bank of India (RBI) on 28 December 2016. The RBI had a vacancy for Deputy Governor after Urjit Patel was promoted to Governor during September 2016.

RBI currently has three other deputy governors – SS Mundra, NS Vishwanathan and R Gandhi.

42-year old Acharya is a 1995 graduate from the Indian Institute of Technology (IIT) in Mumbai and then went on to earn a PhD in finance from NYU-Stern in 2001. He presently teaches Economics at the Stern School of Business in New York University.

……………………………………………………………………………..

6) In an important step to keep a check on tax dodgers, the Union Government on 8 January 2017 directed banks to obtain the permanent account number (PAN) from all bank account holders by which date? – 28 February 2017

Explanation: According to a notification issued by the Central Board of Direct Taxes (CBDT) on 8 January 2017 all banks shall obtain and link PAN or Form No. 60 (where PAN is not available) for all existing bank accounts by 28 February 2017. For this the pertaining IT rules have been amended.

However, this rule will not apply to Basic Savings Bank Deposit Accounts (BSBDA), which include zero balance savings accounts such as Jan Dhan. The BSBDA were introduced to take care of simple banking needs of people and come with free ATM card, monthly statement and a cheque book.

The crackdown has come amid fears that most of the most of the banned 500 and 1000 rupee notes have made their way to bank accounts several of which are ‘benami’ created merely to launder cash.

……………………………………………………………………………..

7) Which private sector bank during the second week of January 2017 blocked transactions on digital payments app PhonePe, accusing it of breaking the UPI guidelines of interoperability? – ICICI Bank

Explanation: India’s largest private sector bank ICICI Bank, from 13 January 2017 blocked transactions on Flipkart-owned Unified Payment Interface (UPI)-based digital payments app PhonePe, accusing it of indulging in restrictive practices and breaking the guidelines of interoperability. PhonePe CEO Sameer Nigam confirmed that ICICI Bank has blocked all their customers from using PhonePe, and even blocked any other bank’s customers from sending money to ICICI Bank’s customers using the app.

On the other hand ICICI Bank claimed that PhonePe was following restrictive practices allowing users to make payments with only its UPI handle, which is in contravention to the UPI guidelines of interoperability and choice that empowers a customer to choose any app to make payments through UPI.

This was the second instance of mainstream banks blocking services to new-age digital payments companies. Previously, SBI had stopped allowing users from topping up their Paytm wallets using the internet banking feature. The bank claimed it did so because of security concerns.

……………………………………………………………………………..

8) Securities market regulator SEBI on 14 January 2017 announced how much reduction in the turnover fees levied on stock brokers? – 25%

Explanation: Securities and Exchange Board of India (SEBI) reduced the turnover fees levied on the stock brokers by 25% to Rs. 15 per crore of turnover from the current Rs. 20 per crore of turnover. This was announced in its board meeting at Jaipur held on 14 January 2017.

On the other hand the fee to be charged for open offer/takeover has been increased from Rs. 3 lakh to Rs 5. lakh. SEBI also decided to align the fees payable for buy back of securities with the fees payable for an open offer.

The reduction in turnover fees is expected to result in reduction of overall cost of transactions and will benefit the investors and promote the development of securities market.

……………………………………………………………………………..

9) The Consumer Affairs Department of the Union Government on 2 January 2017 came out with which statement pertaining to payment of service charges in the hotels/restaurants? – Consumers have the discretion to not pay service charges added the bill by any hotel/restaurant

Explanation: In a statement issued on 2 January 2017, the Consumer Affairs Department asked the state governments to advise the hotels/restaurants to prominently display that “the service charges are discretionary / voluntary and a consumer dissatisfied with the services can have it waived off.”

This statement was issued following several complaints from consumers that hotels and restaurants are seeking ‘service charge’ in the range of 5-20%, in lieu of tips, which a consumer is forced to pay irrespective of the kind of service provided to him/her.

……………………………………………………………………………..

10) The SEBI on 4 January 2017 relaxed its rules for investment by angel funds with the view of giving a fillip to start-up funding in India. Under the new rules what is the upper limit for number of angel investors in a scheme? – 200

Explanation: To give a fillip to start-up funding, the Securities and Exchange Board of India (SEBI) relaxed its rules for investment by angel funds. According to the notification issued by the SEBI on 4 January 2017, the upper limit for number of angel investors in a scheme will be increased from 49 to 200. The SEBI has also allowed the angel investors to invest in up to five-year old entities, which was earlier three years.

To diversify risks, SEBI also allowed angel funds to make overseas investments, up to 25% of their investible corpus, in line with other Alternative Investment Funds (AIFs).

……………………………………………………………………………..

| 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.