Weekly BeeBooster 9th Jan to 15th Jan 2020 Finance and Banking RBI amends KYC norms, allows banks to use V-CIP The RBI has amended the KYC norms allowing banks and other lending institutions regulated by it to use Video based Customer Identification Process (V-CIP), a move which will help them onboard customers remotely. • The Reserve Bank has decided to permit video based Customer Identification Process (V- CIP) as a consent based alternate method of establishing the customer's identity, for customer onboarding with a view to leveraging the digital channels for Customer Identification Process (CIP) by regulated entities (REs). • Live location of the customer (Geotagging) shall also be captured to ensure that customer is physically present in India. In a first, HDFC Bank launches myApps to boost digital payments HDFC Bank launched myApps application to boost digital payments in India. myApps is a unique customised suite of banking products to benefit urban local bodies, housing societies, local clubs and gymkhanas and religious institutions. • In a first, HDFC bank is helping organisations to entirely digitise their ecosystem through myApps. At present HDFC Bank is offering four types of applications — mySociety, myClub, myPrayer and myCity. • myApps will enable the organisation to get easy access to reports on payments, facilities booked by members, requests and complaints registered by users. • This initiative is a part of the HDFC Bank’s strategy to take digitisation to the next level by focusing on providing value beyond basic banking services RBI chalks out financial inclusion strategy for 2024 The Reserve Bank of India (RBI) has chalked out an ambitious strategy for financial inclusion for 2019-2024, in which it aims to strengthen the ecosystem for various modes of digital financial services in all Tier-II to Tier-VI centers to create the necessary infrastructure to move towards a less-cash society by March 2022. • One of the objectives of the strategy includes increasing outreach of banking outlets of to provide banking access to every village within a 5km radius or a hamlet of 500 households in hilly areas by March 2020. • With the aim of providing basic of financial services, a target has been set that every willing and eligible adult, who has been enrolled under the Prime Minister Jan Dhan Yojana, be enrolled under an insurance scheme and a pension scheme by March 2020. 1 | P a g e All ixamBee Mock Tests are FREE Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected] Weekly BeeBooster 9th Jan to 15th Jan 2020 • The plan is also to make the Public Credit Registry (PCR) fully operational by March 2022 so that authorized financial entities could leverage the same for assessing credit proposals from all citizens. • The report stated the following 6 pillars as part of strategic objectives to achieve the aim of financial inclusion: o Universal Access to Financial Services o Providing basic bouquet of financial services o Access to livelihood and Skill Development o Financial Literacy and Education o Customer Protection and Grievance Redressal o Effective Co-ordination Uttam prakash agarwal resigned as independent director of Yes Bank Uttam Prakash Agarwal,an independent director and chairman of YES Bank’s Audit Committee, has resigned citing corporate governance failure. • On November 14, 2018, Agarwal was appointed to the post, and his tenure set to end in November 2023. RBI Imposes Rs 35,000 Withdrawal Limit For Sri Guru Raghavendra Sahakara Bank Account Holders The Reserve Bank of India (RBI) has imposed a withdrawal limit of Rs 35,000 on those holding accounts in Bengaluru-based Sri Guru Raghavendra Sahakara Bank, which is applicable to savings, current or any other deposit account, according to the RBI. • The imposition of restrictions on Sri Guru Raghavendra Sahakara Bank comes at a time when the country's banks are already saddled with nearly $150 billion in bad loans, struggling to grow their lending activity as a slowdown in domestic consumption weighs on demand for credit. • Sri Gururaghavendra Sahakara Bank has also been restricted from disbursing any loans, making any investment or incurring any liability including borrowing of funds and acceptance of fresh deposits. • The restrictions came into force from the close of business hours on January 10. The cooperative bank will have to take approval of the RBI for performing any such tasks. • However, the RBI has made it clear that the directions issued by it should not be seen as cancellation of the banking license of Sri Gururaghavendra Sahakara Bank, which will continue to undertake banking business with restrictions till its financial position improves. Capital of Indian Overseas Bank raised to Rs 25,000 cr Indian Overseas Bank said the government has increased its authorised capital by Rs 10,000 crore to Rs 25,000 crore. 2 | P a g e All ixamBee Mock Tests are FREE Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected] Weekly BeeBooster 9th Jan to 15th Jan 2020 • The Centre after consultation with the Reserve Bank of India has increased the authorised capital of the bank from Rs 15,000 crores to Rs 25,000 crore Michael Debabrata Patra appointed as RBI Deputy Governor Michael Debabrata Patra has been appointed as Deputy Governor of the Reserve Bank of India (RBI). • The post was lying vacant after Viral V Acharya resigned from the post in June last year. He will be the fourth Deputy Governor of the RBI and has been appointed to the post for a period of three years. • The RBI, headed by Governor Shaktikanta Das, can have a maximum of four Deputy Governors. N S Vishwanathan, B P Kanungo and M K Jain are the other Deputy Governors working at the central bank. SEBI Extends Deadline By Two Years To Split Chairman And Managing Director Posts The Securities and Exchange Board of India has deferred by two years to April 2022 its directive for listed companies to split the roles of chairman and managing director. The decision was taken in view of demand from corporates and to keep compliance burden low in the wake of the current economic scenario. • The date of implementation of the regulatory provision has been deferred to April 1, 2022. • Data from stock exchanges reveal that at present, only 50 percent of the top 500 listed companies are in compliance with the regulatory provision. • Currently, many companies have merged the two posts as chairman and managing director, leading to some overlapping of the board and management. • A large number of big companies—including Reliance Industries Ltd., Bharat Petroleum Corp. Ltd., Oil and Natural Gas Corp. Ltd., Coal India Ltd., Wipro Ltd. and Hero MotoCorp Ltd.—have a single person holding the twin post of chairman and managing director. RBI tweaks norms for imposing penalties on payment system operators The Reserve Bank of India (RBI) tweaked the norms for imposing penalties on payment system operators for not complying with regulatory requirements, with a view to ensure safety and security to various stakeholders, including customers. • The payment system landscape has witnessed rapid developments since then with increased adoption of technology, availability of payment products, entry of more nonbank players, dis- intermediation, and significant surge in turnover, among others. • In view of the promotion of digital payments, India’s central bank, the Reserve Bank of India (RBI) has permitted processing of e-mandate for recurring payments through UPI (Unified Payments Interface). 3 | P a g e All ixamBee Mock Tests are FREE Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected] Weekly BeeBooster 9th Jan to 15th Jan 2020 • E-mandate is called the consent to the process of payment by means of message or e-mail, etc., without the presence of consumers before the merchant while making payment. • This functionality will allow UPI users to bypass additional factor authentication (AFA), a security measure put in place for card payments that requires OTP – one-time password verification) during registration and 1st transaction. • Under this facility, an agreement is formed between the consumer and the merchant bodies and the payment of the outstanding dues is done automatically on the fixed date of the month. However, the maximum permissible limit under this payment system shall be Rs 2,000 per transaction. • Till now this facility was available for payment through debit card, credit card, prepaid payment instrument (PPI) and wallet and is generally used to pay other utility bills including mobile, internet, or making lump sum payments on monthly basis in shops. • In a bid to ensure safety and security to various stakeholders, including customers, RBI has released the revised framework for imposing monetary penalty on authorised payment system operators / banks under the Payment and Settlement Systems Act, 2007 for not complying with regulatory requirements. • Under the revised framework, RBI has provision to levy monetary penalty levied for a contravention shall not exceed Rs 5 lakh or double the amount of contravention or default, whichever is higher, where such amount is quantifiable. For non-quantifiable contravention, the maximum penalty imposed by RBI shall be Rs 5 lakh per contravention. In addition, RBI will impose further penalty up to ₹ 25,000/- for every day, if such contravention / default is a continuously performed. • The penalty should be paid within a period of 30 days from the date of the order issued by RBI. • In case of failure in payment, RBI will take further action against the contravener as per Section 8 or Section 30 (3) or Section 33 of PSS Act. Industrial production grows 1.8% in Nov, turns positive after 3 months Having contracted for three months in a row, the Index of Industrial Production (IIP) recorded a growth of 1.8 per cent in November mainly on account of improvement in the manufacturing sector, said government data.