Monthly Banking Awareness PDF Issue #16– March 2019
Only Banking! Monthly Banking Awareness PDF Issue #16– March 2019
Features: Detailed Banking News Expected Banking Questions RBI Policy Rates Important Bank Mergers from 2017-2019
If you have any suggestion or query, feel free to mail us at [email protected]
Download Our Android App From Playstore Join us at Facebook About Reserve Bank of India
Headquarter at Mumbai. The Governor of RBI is Shashikanta Das. The slogan is “India’s Central Bank”. RBI Follows July to June Financial Cycle.
RBI Rates as of 1 April, 2019
Name of Rate Rate in Percentage Policy Repo Rate 6.00% Reverse Repo Rate 5.75% Marginal Standing Facility Rate 6.25% Bank Rate 6.25% CRR 4% SLR 19.25% Base Rate 8.95% - 9.40% MCLR (Overnight) 8.05% - 8.55% Savings Deposit Rate 3.50% - 4.00% Term Deposit Rate > 1 Year 6.25% - 7.00%
Banking News of March 2019
RBI, Bank of Japan sign Bilateral Swap Arrangement for India to access 75 billion in US dollars
The Reserve Bank of India and Bank of Japan have completed signing of the Agreement for Bilateral Swap Arrangement (BSA) between India and Japan. The BSA was negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo in October 2018. This BSA provides for India to access USD 75 billion and was approved by the Union Cabinet in January 2019. India can access the agreed amount of USD 75 billion for its domestic currency for the purpose of maintaining an appropriate level of balance of payments or short-term liquidity.
www.exampundit.in Cabinet approves payment of Rs 1450 crore of National Housing Bank to RBI
The Cabinet approved the payment of the face value of the subscribed share capital of Rs.1450 crore in National Housing Bank (NHB) to Reserve Bank of India (RBl) consequent to amendments made to the NHB Act, 1987 in 2018. The expenditure of Rs.1450 crore will be met out of Gross Budgetary Support 2018-19. The beneficiaries are the Reserve Bank of India and the Housing Sector.
1 | P a g e
Hasmukh Adhia Appointed Non-Executive Chairman Of Bank Of Baroda
Former Finance Secretary Hasmukh Adhia was appointed as non-executive chairman of Bank of Baroda on Friday, according to a Personnel Ministry order. The Appointments Committee of the Cabinet has approved his appointment as part-time non-official director as well as non-executive chairman on the board of Bank of Baroda for a period of three years, it said. Mr Adhia, a 1981-batch IAS officer of Gujarat cadre, superannuated on November 30 last year. He last served as the Finance Secretary.
RBI slaps Rs 7 crore monetary penalty on four PSU banks for non-strengthening of 'SWIFT' related controls
The Reserve Bank has imposed a monetary penalty of Rs 3 crore on Union Bank, Rs 2 crore on Dena Bank, and Rs 1 crore each on IDBI and the SBI for non-compliance with various directions, regulatory filings. Union Bank said that the apex bank has imposed a penalty of Rs 30 million (Rs 3 crore) on it for delay in adherence to its directives on 'time-bound implementation and strengthening of SWIFT-related controls' contained in the RBI circular of February 20, 2018. In a filing to the BSE, Dena Bank said the Reserve Bank has imposed a penalty of Rs 20 million on it for non- compliance with the directions issued on February 20, 2018.
PSBloansin59minutes .com becomes largest fintech lending platform: Report
Web portal PSBloansin59minutes .com launched by Prime Minister Narendra Modi three months ago has emerged as the largest online lending platform, according to a report by global financial firm Credit Suisse. The portal was launched in November to provide credit of up to Rs 1 crore to micro, small and medium enterprises (MSMEs) in just 59 minutes.
Ravneet Gill takes charge as Yes Bank MD, CEO
Yes Bank Friday said Ravneet Gill has taken charge as its MD and CEO with immediate effect for a tenure of three years. The appointment of Gill, will be subject to approval of shareholders' at the ensuing annual general meeting of the Bank to be held in June, 2019.
IDBI Bank gets govt nod to handle import, export transactions with Iran www.exampundit.in
The IDBI Bank has received government nod to handle import and export transactions with Iran, a move which would help in promoting two-way trade amid US sanctions on the Persian Gulf nation, industry sources said. US President Donald Trump had in May last year withdrawn from the 2015 nuclear accord with Iran, re- imposing economic sanctions against the Persian Gulf nation. Some sanctions took effect from August 6, 2018 while those affecting the oil and banking sectors started from November 4, 2018. According to sources, IDBI Bank has been identified to route the payments. UCO Bank had in the previous round of sanctions handled rupee payments.
2 | P a g e
RBI slaps Rs 1 cr fine on Yes Bank for non-compliance in Swift operations
Private sector lender Yes Bank Tuesday said the Reserve Bank of India has slapped a fine of Rs 1 crore on the bank for non-compliance of directions on Swift messaging software. Swift is the global messaging software used for transactions by the financial entities. Notably, the massive Rs 14,000 crore fraud at the Punjab National Bank (PNB) was a case of misuse of this messaging software. Post the PNB fraud, which came to light in February 2018, the RBI has been tough on banks to tighten all kinds of transactions.
RBI slaps Rs 4 crore fine on Karnataka Bank
Private sector Karnataka Bank Monday said the RBI has slapped a fine of Rs 4 crore on the bank for violating regulatory norms. The Reserve Bank of India has levied an aggregate penalty of Rs 40 million on the bank for delayed implementation of four of the Swift related operational controls. Swift is the global messaging software used for transactions by the financial entities. Notably, the massive Rs 14,000 crore fraud at the PNB was a case of misuse of this messsaging software.
State Bank of India to join SWIFT's global payment interface
State Bank of India will soon sign up with the Society for Worldwide Interbank Financial Transactions’ (SWIFT) Global Payment Interface (gpi), adding to the list of Indian banks that have subscribed to the interbank communication channel’s new payment interface which is set to make cross-border transactions much more secure and transparent, a top official said. These banks are ICICI Bank, Axis Bank, Punjab National Bank, Yes Bank, City Union Bank, HDFC Bank, Bank of India, Federal Bank Limited, Union Bank of India, Indian Bank and IndusInd Bank. SWIFT said that they want to make gpi a universal payments interface by partnering with all major global banks by 2020.
IBBI signs pact with International Finance Corporation to train professionals
The Insolvency and Bankruptcy Board of India (IBBI) has signed a cooperation agreement with the International Finance Corporation (IFC) to train professionals, the government said on Thursday.
The pact calls for organising workshops and training for insolvency professionals and IBBI officers, training the www.exampundit.in trainers, development of a national insolvency programme besides insolvency and valuation examinations. The agreement runs through till June 30, 2021.
Former RBI governor Raghuram Rajan to get Yashwantrao Chavan national award
Former Reserve Bank of India (RBI) Governor Raghuram Rajan has been chosen for the 'Yashwantrao Chavan National Award 2018' for his contribution towards economic development. Rajan will be presented the award at a function here on March 12 on the occasion of 106th birth anniversary of late Yashwantrao Chavan, who was the first chief minister of Maharashtra, a release issued here said. NCP chief Sharad Pawar, who is president of the Yashwantrao Chavan Prathisthan, will preside over the function, it said.
3 | P a g e
InstantPay launches neo-banking services for SMEs
InstantPay reiterated its focus on the SME industry with its launch of the first-of-its-kind Neo-banking services. This new age branchless banking solution will allow SMEs the advantage of managing all their payments, collections and reconciliation on a single and seamless interface. With its 100% digital and mobile platform InstantPay is trying to reinvent the practices of a traditional bank, while at the same time ensuring that they are more cost-effective, automated and convenient, in line with the requirements of today's SMEs.
RBI board warned of short-term negative impact of demonetisation on GDP
The Board of Reserve Bank of India, which included the present Governor Shaktikanta Das as the Director, had warned of short-term negative impact of demonetisation on the country’s economic growth. The board observed that the move will not have any material impact on tackling the black money menace. The board met just two-and-a-half hours before Prime Minister Narendra Modi announced the demonetisation decision on November 8, 2016, banning the currency notes of Rs 500 and Rs 1000. One of the prime objectives of demonetisation was to curb black money.
SBI links savings account, short-term loan interest rates to RBI repo rate
State Bank of India (SBI) on Friday linked its interest rate on savings account with balance above ₹1 lakh and short-term loans to Reserve Bank of India's (RBI) repo rate, effective 1 May 2019. This means that savings account interest rates and interest rate on a few loans will change as and when the regulator changes its repo rate. The RBI repo rate currently stands at 6.25%. According to an SBI statement, the bank will link savings accounts with deposits over ₹1 lakh to repo rate at current effective rate of 3.5% (2.75 percentage points lower than the current repo rate of 6.25%).
Axis Bank appoints Rakesh Makhija as non-executive chairman for 3 years
Private sector lender Axis Bank Tuesday has appointed Rakesh Makhija as its non-executive chairman for a term of 3 years, with effect from July 18. www.exampundit.in He will replace Sanjiv Misra, whose term as the bank's non-executive (part-time) chairman expires on July 17, the bank said in a regulatory filing.
RBI Categorises IDBI Bank as Private Sector Lender
IDBI Bank has been categorised as a private sector lender following acquisition of majority stake by Life Insurance Corporation, RBI said. In January, LIC completed the process of picking up a controlling 51 per cent stake in the nearly crippled IDBI Bank. IDBI Bank has been under the prompt corrective action framework of RBI that bans it from corporate lending and branch expansions, salary hikes and other regular activities.
4 | P a g e
Paytm Payments Bank launches mobile banking app
Paytm Payments Bank Limited (PPB) has today announced the launch of its mobile banking app that offers users quick, effortless & secured access to their bank account on the go. The new app is presently available for download on Google Play store and shall shortly be available on the Apple app store as well. With a simple, & intuitive navigation, the mobile app will enable customers to check their balances, raise a request for physical debits cards, access digital debit cards, etc. Customers will also be able to receive 24x7 help and support through this mobile banking app.
S S Mundra appointed as chairman of Acuite Ratings
Acuité Ratings and Research Thursday said that former deputy RBI governor S S Mundra has been appointed as non-executive chairman to its board with immediate effect. In high four-decade long banking career, Mundra has served as Deputy Governor of Reserve Bank of India and as Chairman and Managing Director of Bank of Baroda.
RBI names SBI, ICICI and HDFC as systemically important banks
The Reserve Bank of India (RBI) on Thursday named State Bank of India (SBI), ICICI Bank and HDFC Bank as Domestic Systemically Important Banks (D-SIBs), which in other words mean banks that are too big to fail. As per the norms, these banks will have to set aside more capital for their continued operation. RBI comes with the list every year since 2015. Inclusion in D-SIB indicates that failure of any of these banks would have a cascading effect on Indian financial system. Inclusion in the list gives additional comfort to investors that these banks won’t be allowed to fail and therefore, borrowing costs of these banks from the markets are cheaper than their peers. SBI, being in the third bucket, was setting aside 0.45 per cent of its assets till 2018-19 as a surcharge. From next year, applicable from April 1, the bank will have to set aside 0.60 per cent of its risk-weighted assets. The increase in capital is in a phased manner, with the ultimate aim of providing one full percentage point extra as capital buffer for D-SIBs.
RBI issues guidelines to prevent market abuse
The Reserve Bank of India has come out with guidelines to prevent misuse of price-sensitive information by participants in markets for financial instruments. www.exampundit.in The RBI said market participants, either acting independently or in collusion, shall not undertake any action with the intention to manipulate the calculation of a benchmark rate or a reference rate. The guidelines have become effective from yesterday.
Bandhan Bank gets RBI nod for acquiring Gruh Finance
Bandhan Bank on Friday said it has received no objection from the Reserve Bank of India (RBI) for the proposed acquisition of Gruh Finance. Gruh Finance, the affordable housing finance arm of HDFC Ltd, was taken over in January by Kolkata-based Bandhan Bank in a share-swap deal. As part of the deal, Bandhan Bank has to transfer 14.9 per cent stake to HDFC for merging Gruh with itself.
5 | P a g e
HDFC Bank becomes 3rd company to cross Rs 6 lakh crore m-cap
India’s most valued lender HDFC Bank on Wednesday crossed the Rs 6 lakh crore-market capitalisation mark, becoming the third company to do so after Reliance Industries and Tata Consultancy Services. Pre-election rally in the market continued to lift Indian stocks for the third straight day, also helping HDFC Bank end up 2.6 per cent at Rs 2,226.10 after hitting an all-time high of Rs 2,233 during the day. HDFC, which is the promoter of HDFC Bank, is majority foreign owned and hence is classified as a foreign institution. So effectively, 26 per cent of the 74 per cent FPI shareholding is held by HDFC and 48 per cent is owned by other foreign entities.
Kotak Mahindra Bank elevates KVS Manian, Gaurang Shah as board directors
Kotak Mahindra Bank has appointed KVS Manian and Gaurang Shah as whole-time directors for a three- year term effective from the date of approval from the Reserve Bank of India. The appointment of Manian and Shah is also subject to shareholders’ approval, the bank informed the BSE.
RBI panel on MSME sector seeks public views on various aspects
An RBI-appointed panel on Monday sought suggestions from the public on long-term solutions for economic and financial sustainability of MSME sector, including ways to improve credit rating mechanism to help them raise funds at competitive rates. The panel is undertaking a comprehensive review of the sector to identify causes and propose long-term solutions for its development, the central bank said in a statement. The committee was set up in January under former SEBI chairman UK Sinha.
London court issues arrest warrant against Nirav Modi
London court has issued an arrest warrant against fugitive jeweller designer Nirav Modi. He is the main accused in the PNB scam case. The warrant is in response to an ED request for his extradition in a money laundering case.
SBI inks MoU with Bank of China to boost business opportunities www.exampundit.in
The country's largest public sector lender State Bank of India (SBI) has signed a pact with the Bank of China to boost business opportunities. SBI has signed a memorandum of understanding (MoU) with Bank of China (BoC), third-largest bank in the world by capital size and one of the major players in the Chinese banking sector, to enhance business synergies between both the banks, State Bank of India (SBI) said in a release.
Delhi School of Economics wins ‘SBI Numero YONO’ contest
The team of Delhi School of Economics emerged victorious at the grand finale of inter-college quiz contest - ‘Numero YONO’ held here recently.
6 | P a g e
Gokul S, Abdul Vahid P.A and Akash Verma represented Delhi School of Economics among the nearly 3000 teams in the regional rounds to bag the Numero YONO title along with annual scholarship of Rs. 5.76 lakh.
IBBI, SEBI sign MoU for better implementation of Insolvency and Bankruptcy Code
The Insolvency and Bankruptcy Board of India (IBBI) on March 19, 2019 signed a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) for better implementation of Insolvency and Bankruptcy Code, 2016. The IBBI and the SEBI together seek effective implementation of the Insolvency and Bankruptcy Code and its rules and regulations which aim to promote entrepreneurship and debt market. The MoU was signed by Anand Baiwar, Executive Director of the SEBI and Ritesh Kavdia, Executive Director of IBBI.
RBI’s Expert Committee on MSME undertakes comprehensive review of sector
The U.K. Sinha led Expert Committee on Micro, Small & Medium Enterprises (MSME) of the Reserve Bank of India (RBI) undertook a comprehensive review of the MSME sector to identify causes and to propose long term solutions for its development.
In this regard, the Committee on March 18, 2019 invited suggestions from the public on the following aspects by March 28, 2019:
To suggest definition of MSME for classification and identification of MSME on the basis of investment and turnover based criteria Suggestions for improving the role of District Industrial Centres (DICs) and whether the DICs have met the intended objective? Infrastructural gaps and problems affecting the development of the MSME clusters Suggestions for addressing the structural gaps in capacity building of entrepreneurs
Canara Bank launches issue of Foreign Currency Bonds under MTN programme
Canara Bank launched a issuance of 5 year Senior Unsecured Bonds (Medium Term Notes) to the extent of USD 400 million under Medium Term Note (MTN) Programme, through its London branch on 21 March 2019 value date 28 March 2019 maturing on 28 March 2024. It is priced at 5 year US Treasury plus 170 bps carrying a coupon of 3.875% fixed payable half yearly. www.exampundit.in
Aamir Khan appointed as Brand Ambassador of PhonePe
PhonePe, India’s fastest growing payments platform today announced appointed of Bollywood superstar Aamir Khan as its brand Ambassador. PhonePe is also an official co-presenting sponsor for the television broadcast of VIVO IPL 2019, and will be launching a series of new TV ads featuring Aamir Khan during this season. Aamir’s presence in the
NITI Aayog's FinTech Conclave to be held in New Delhi today
NITI Aayog is organising a day-long FinTech Conclave at Dr. Ambedkar International Center, New Delhi today. 7 | P a g e
An official said, the objective of the conference is to shape India’s continued ascendancy in FinTech, build the narrative for future strategy and policy efforts, and to deliberate steps for comprehensive financial inclusion. The Conclave will be featuring representatives from across the financial space - central ministries, regulators, bankers, startups, service providers and entrepreneurs. The Conclave will be inaugurated by RBI Governor Shaktikanta Das. It will host more than 300 representatives from the leading financial institutions.
RBI To Set Up Regulatory Sandbox For Fintech Startups To Boost Innovation
The Reserve Bank of India (RBI) is looking to issue guidelines for setting up a regulatory sandbox or innovation hub for the fintech startups in May. This hub will help the companies build innovative products at a lower cost. RBI governor Shaktikanta Das, said that there is a need for a definite regulatory and supervisory framework for the fintech startups. The framework is really important at this point to protect the customers and safeguard interests of all stakeholders. While addressing the Fintech Conclave 2019, Das explained that the framework should address all the gaps and associated risks while considering the growth requirements of this sector.
SC warns RBI of contempt for non-disclosure of bank inspection reports
The Supreme Court of India on March 26, 2019 took a strong note of non-disclosure of the annual inspection report of banks by the Reserve Bank of India under the Right to Information Act. The apex court threatened to slap punitive order against RBI for not adhering to its earlier order on making its bank inspection report public. The SC bench comprising justices L N Rao and M R Shah stated that it may initiate contempt proceedings against the bank for not disclosing the annual inspection report of various banks under the transparency law. The bench gave the bank a week’s time to comply. The SC bench was hearing three petitions filed by parties, including RTI activist Subhash Chandra Agrawal, alleging non-compliance of the law by RBI. The apex court and the Central Information Commission had earlier held that the RBI cannot refuse to put the inspection reports in the public domain under the transparency law.
RBI imposes Rs 2 crore penalty on PNB
The Reserve Bank of India has imposed a penalty worth Rs 2 crore on Punjab National Bank for non-
compliance of regulatory directions with regard to SWIFT operations. The announcement was made by RBI www.exampundit.in on March 26, 2019. SWIFT is a global messaging software, which is used for sharing information on inter-bank transactions by financial entities. In a regulatory filing, PNB stated that the Reserve Bank in a letter dated March 25 has informed the bank about the penalty.
Bank branches dealing with government business to remain open this Sunday: RBI
The Reserve Bank of India (RBI) has directed banks to keep open their branches dealing with government business on the last day of the financial year, March 31, 2019, a Sunday. The Union Government has advised that all pay and account offices will remain open on March 31, 2019 (Sunday) to facilitate government receipt and payment transactions.
8 | P a g e
Accordingly, all agency banks have been advised to keep all their branches dealing with government business open on the day.
Karur Vysya Bank appoints NS Srinath as non-executive chairman
Karur Vysya Bank Tuesday said it has appointed NS Srinath as non-executive chairman for a period of three years. Srinath, 66, was the non-executive independent director on the board of the private sector lender.
RBI eases office opening process for foreign entities
The Reserve Bank of India (RBI) has relaxed the opening process of branch or liaison offices for the foreign entities running their business in defence or telecom sector in India, provided they have already received clearance from the concerned ministry. The initiative will ensure smother office opening process under FEMA Act as the India is progressing ahead towards the vision of promoting the ease of doing business mantra in the country. RBI notified that the foreign entities require no prior clearance for opening of a branch office / liaison office / project office (PO) or any other place of business in India, if the principal business of the applicant falls in the defence, telecom, private security and information and broadcasting sector.
ICICI Bank launches two instantaneous home loan facilities
Private sector lender ICICI Bank on Thursday announced the launch of two instantaneous home loan facilities, one of which would enable instant and paperless home loan approval of up to ₹1 crore. The ‘Instant Home Loan’ service enables pre-approved salaried customers of the bank to avail final sanction letter digitally and instantly for loans up to ₹1 crore for a tenure of up to 30 years (based on the age of the customer) using internet banking facility.
Govt decides to infuse Rs 5042 Cr into Bank Of Baroda
The government has decided to infuse around five thousand crore rupees into state-owned Bank of Baroda ahead of merger of two other public sector lenders Dena Bank and Vijaya Bank with Bank of Baroda. The merger of Dena Bank and Vijaya Bank with Bank of Baroda would be effective from 1st April.
The Bank of Baroda, in a regulatory filing, said that the finance ministry through its notification conveyed its www.exampundit.in decision to infuse capital of 5,042 crore rupees in the bank.
RBI Allows Non-Residents To Participate In Rupee Interest Rate Derivatives Market
The Reserve Bank of India (RBI) allowed non-residents to participate in the rupee interest rate derivatives market on March 27, 2019. This decision was taken with a view to deepening the rupee interest rate swap (IRS) market. With this decision, non-residents of India can undertake rupee interest rate derivative transactions on recognised stock exchanges, electronic trading platforms and over the counter markets (OTCs). Foreign portfolio investors, collectively, can transact in interest rate futures up to a limit of net long position of Rs 5,000 crore.
9 | P a g e
Expected Banking Questions from March 2019 Current Affairs
1. Reserve Bank of India and Bank of Japan have completed signing of Bilateral Swap Arrangement for India to access _____. – US$75 billion 2. With whom did RBI recently signed a Bilateral Swap Arrangement for India to access US$75 billion? – Bank of Japan 3. Union Cabinet recently approved how much amount of payment of National Housing Bank to RBI? – ₹1450 crore 4. Who has been appointed as the Non-Executive Chairman of Bank Of Baroda? – Hasmukh Adhia 5. RBI in March, 2019 imposed Rs 7 crore monetary penalty on four PSU banks for which purpose? – non- strengthening of 'SWIFT' related controls 6. Who has emerged as the largest online lending platform, according to a report by global financial firm Credit Suisse? – PSBloansin59minutes .com 7. Who was recently appointed as the MD & CEO of YES Bank? – Ravneet Gill 8. Which bank recently received government nod to handle import and export transactions with Iran? – IDBI Bank 9. IDBI Bank has received government nod to handle import and export transactions with which country? – Iran 10. On which private sector bank did RBI impose a fine of Rs 1 crore on the bank for non-compliance of directions on Swift messaging software? – YES Bank 11. Which Bank was recently fined by RBI of 4 crore rupees for delayed implementation of four of the Swift related operational controls? – Karnataka Bank 12. Which of the following bank announced to tie up with the Society for Worldwide Interbank Financial Transactions’ (SWIFT) Global Payment Interface (gpi)? – State Bank of India 13. Which organisation has signed a cooperation agreement with the International Finance Corporation (IFC) to train professionals? – Insolvency and Bankruptcy Board of India (IBBI) 14. Who has been chosen for the 'Yashwantrao Chavan National Award 2018? – Former Reserve Bank of India (RBI) Governor Raghuram Rajan 15. Which of the following launched the first-of-its-kind Neo-banking services for SME Industry? – InstantPay 16. Which bank linked its interest rate on savings account with balance above ₹1 lakh and short-term loans to Reserve Bank of India's (RBI) repo rate? – State Bank of India 17. SBI has linked its interest rate on savings account with balance above what amount and short-term loans to Reserve Bank of India's (RBI) repo rate? – ₹1 lakh www.exampundit.in 18. Who was appointed as the non-executive chairman of Axis Bank? – Rakesh Makhija 19. Which bank was recently categorised as Private Sector Bank by RBI? – IDBI Bank 20. Who has been appointed as non-executive chairman of Acuite Ratings? – SS Mundra 21. Which of the following bank was named as Domestic Systemically Important Banks (D-SIBs)? – SBI, HDFC, ICICI 22. Which bank announced the acquisition of Gruh Finance? – Bandhan Bank 23. Name the 3rd company to cross Rs 6 lakh crore market capitalisation mark in India? – HDFC Bank 24. Which RBI Panel recently sought suggestions from the public on long-term solutions for economic and financial sustainability of MSME sector? – UK Sinha Panel 25. Which bank has signed a pact with the Bank of China to boost business opportunities? – State Bank of India
10 | P a g e
26. With which bank did SBI sign a pact to boost business opportunities? – Bank of China 27. Who won the ‘SBI Numero YONO’ contest 2019? – Delhi School of Economics 28. With whom did Insolvency and Bankruptcy Board of India (IBBI) sign a MoU for better implementation of Insolvency and Bankruptcy Code, 2016? – Securities and Exchange Board of India (SEBI) 29. Who is the chairperson of the Expert Committee on Micro, Small & Medium Enterprises (MSME) of the Reserve Bank of India (RBI)? – UK Sinha 30. NITI Aayog's FinTech Conclave was held in ______. – New Delhi 31. Who has been appointed as non-executive chairman of Karur Vysya Bank? – NS Srinath 32. Reserve Bank of India (RBI) has relaxed the opening process of branch or liaison offices for the foreign entities running their business in ______. – defence or telecom sector in India 33. How much amount did government announce to infuse into Bank Of Baroda? – Rs 5042 Cr 34. Reserve Bank of India (RBI) recently allowed non-residents to participate in which market? – Rupee Interest Rate Derivatives Market
Important Bank Mergers from 2017 to 2019
Merger of Bank of Baroda, Vijaya Bank, Dena Bank:
The merger of Bank of Baroda, Vijaya Bank, and Dena Bank became effective on April 1, 2019, marking the first-ever three-way merger in India's banking sector. With this, Dena Bank and Vijaya Bank became a part of the Bank of Baroda, leading to the creation of the India's second largest Public Sector Bank after the SBI and India’s third largest lender overall after the SBI and ICICI Banks with a total business of more than Rs 14.82 lakh crore. The amalgamation of Vijaya Bank and Dena Bank into Bank of Baroda was first announced in September 2018.
Lakshmi Vilas Bank announces merger with Indiabulls Housing Finance
The Board of private sector lender, Lakshmi Vilas Bank Ltd (LVB) on April 5, 2019 approved its merger with the mortgage financier, Indiabulls Housing Finance Ltd in an all stock deal. As per the ‘Scheme of Amalgamation’ approved by the LVB board, for every 100 shares of Laxmi Vilas Bank held, shareholders will receive 14 shares of Indiabulls Housing Finance.
The merger now awaits the approval of the Reserve Bank of India. www.exampundit.in
Bandhan Bank’s acquisition of Gruh Finance
Bandhan Bank on March 14, 2019 received no objection from the Reserve Bank of India (RBI) for the proposed acquisition of Gruh Finance, the affordable housing finance arm of HDFC Ltd.
Merger of Capital First with IDFC Bank
IDFC Bank and non-banking financial company (NBFC), Capital First in December 2018 announced completion of their merger. The merged entity was named as 'IDFC First Bank Ltd'. 11 | P a g e
Merger of Bharat Financial Inclusion with IndusInd Bank
IndusInd Bank Ltd in October 2017 signed a deal to merge with Bharat Financial Inclusion Ltd through a composite scheme of arrangement. IndusInd Bank received a ‘No Objection’ from the Reserve Bank of India for the merger on March 13, 2018.
Five associate banks, Bharatiya Mahila Bank merged with SBI
Five associate banks of SBI and the Bharatiya Mahila Bank (BMB) were on 1 April 2017 merged with the State Bank of India (SBI).
These five associate banks that were merged with the SBI are -
State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore
The merger of these five associate banks with SBI was approved by the Union Government in February 2017. Later in March 2017, the Union Cabinet approved merger of BMB as well.
SBI first merged State Bank of Saurashtra with itself in 2008. Later in 2010, State Bank of Indore was merged with it. www.exampundit.in
12 | P a g e