Banking Current Affairs - 21-Aug-20 TABLE of CONTENTS A

BrainBuzz Academy Banking Current Affairs - 21-Aug-20 TABLE OF CONTENTS A.. Economy 1.. Fiino Payments Bank unveiills diigiitall saviings account Economy Fino Payments Bank unveils digital savings account

Context: Fino Payments Bank has announced the introduction of Jan BachatKhata(JBK), an Aadhaar Authentication-based digital savings account for its customers. Priimary Segment: The primary segment would be low income household families and beneficiaries of government’s direct benefit transfer (DBT). Objjectiive: “AePS as a safe and convenient platform is perfectly in sync with our objective of making banking simple and hassle-free. For the millions of people who are not comfortable using debit card and PIN, Jan BachatKhatawith Aadhaar authentication provides new age digital banking experience. With AePS transactions gaining ground, Fino Payments Bank expect increased acceptance and aim to open around a million Jan BachatKhata accounts in FY21.” Under the JBK, customers can transact at a Fino branch or merchant point with fingerprint and OTP combination, while at non-Fino points they need Aadhaar authentication. Earlier, Fino Payments Bank had introduced Shubh and Bhavishya, subscription-based savings accounts targeted at specific customer segments. Usefull iinformatiion for allll competiitiive exams: About Fiino Payments Bank: Establliished: 13 July 2006. Headquarters: Mumbai, Maharashtra. Chaiirman: Prof Mahendra Kumar Chouhan. MD & CEO: Rishi Gupta. How Payments Banks and the Commerciiall Banks are diifferent from each others: 1. It is believed that the banking system in India was started in 1786 after the establishment of the Bank of Calcutta whereas the payments bank started its operation in November 2017. 2. The Commercial Banks can accept any amount as deposit per customer but the payments bank will be restricted to holding a maximum balance of Rs. 1,00,000 per individual customer. 3. Payments banks are allowed to issue ATMs or debit cards to their account holders but they can’t be restricted to holding a maximum balance of Rs. 1,00,000 per individual customer. 3. Payments banks are allowed to issue ATMs or debit cards to their account holders but they can’t issue a credit card while there is no such rule for commercial banks. 4. The initial minimum paid-up voting equity capital for a commercial bank shall be 500 crore rupees while the minimum paid-up equity capital for payments banks shall be Rs. 100 crore. 5. Payment banks can’t give loan services to the people, while the main earning of the commercial banks comes from the loan services only. 6. Payments banks can’t accept deposits from the NRI persons. It means, the Non Resident Indians (NRIs) who have settled abroad can’t deposit their money in the payments banks while commercial banks can accept deposits from NRIs. 7. Payment banks must use the word "Payments Bank" in their name to look different from other banks but commercial banks need not to do so. 8. Payment banks should invest at least 75% of their total demand deposits in government securities (called Statutory Liquidity Ratio) with a maturity period of at least one year, while commercial banks have to invest maximum 22% of demand deposits in such securities. The follllowiing iis the lliist of actiive payments banks: ●Airtel Payments Bank. ●India Post Payments Bank. ●Fino Payments Bank. ●Jio Payments Bank. ●Paytm Payments Bank. ●NSDL Payments Bank. Piin Poiints: What? Fino Payments Bank unveils digital savings account called Jan BachatKhata(JBK) When? August 18, 2020 Why? Making banking simple and hassle-free.