Banking Awareness

BANKING AND OTHER NEWS- January

SEBI reconstituted Market Data Advisory Committee Chaired by S Sahoo

Securities and Exchange Board of India (SEBI) reconstituted 20 members Market Data Advisory Committee (MDAC) to recommend policy measures in areas like securities market data access and privacy.The MDAC will be chaired by S.Sahoo.

  • S Sahoo is a Professor at National Law University, Delhi & former chairperson, Insolvency and Bankruptcy Board of India (IBBI).
  • The previous committee was headed by Madhabi Puri Buch, ex-whole-time member of SEBI.

SEBI Amended Settlement Proceedings; cuts Timeline for Filing Settlement Applications to 60 Days

Securities and Exchange Board of India (SEBI) amended the SEBI (Settlement Proceedings) Regulations, 2018, called the SEBI (Settlement Proceedings) (Amendment) Regulations, 2022 and has reduced the timeline for filing settlement applications to just 60 days from the current 180 days to make the system more efficient.

  • All payments under the settlement regulations will be accepted only through a dedicated payment gateway. To give this effect, the SEBI has amended Settlement Proceedings norms.
  • SEBI has amended SEBI (Foreign Portfolio Investors (FPI)) Regulations, 2019 called SEBI (FPI) (Amendment) Regulations, 2022 and stated that it could provide an exemption from strict enforcement of the regulations in other cases.

NSE Received SEBI’s nod to Launch Derivatives on Nifty Midcap Select Index

National Stock Exchange (NSE) has received approval from Securities and Exchange Board of India (SEBI) to launch derivatives on Nifty Midcap Select Index. The index will be available for trading from 24 January, 2022.Nifty Midcap Select Index intends to track the performance of a focused portfolio of 25 stocks within the Nifty Midcap 150 index.

CDSL Venture Ltd Receives SEBI Approval to Set up Accreditation Agency

Central Depository Services Limited (CDSL) Ventures Limited, a wholly owned subsidiary of CDSL has received approval from Securities and Exchange Board of India’s (SEBI) for setting up Accreditation Agency for a period of 3 years with effect from 1st February 2022 for accreditation of eligible Investors.‘Accredited Investors’ (AIs) may avail flexibility in minimum investment amount (lower ticket

size) or concessions from specific regulatory requirements applicable to investment products with certain conditions for specific products or services.

SIDBI sanctions financial assistance of ₹650 crore to AUSFB and JSFB

Small Industries Development Bank of India (SIDBI) sanctioned financial assistance of around ₹650 crore to AU Small Finance Bank (AUSFB) and Jana Small Finance Bank (JSFB). The Small Finance Banks will use this assistance to support small-sized non-banking financial companies (NBFCs) and micro finance institutions (MFIs) and micro entrepreneurs.

The headquarters of Small Industries Development Bank of India (SIDBI) is Lucknow, Uttar Pradesh.

Pencilton Launches India’s 1st Debit Card with NCMC for Teens: PencilCard

Pencilton, a teen-focused fintech company in partnership with Transcorp has launched PencilCard, India’s 1st debit card with National Common Mobility Card (NCMC) for teens. PencilCard is an NCMC – compliant RuPay debit card specially designed for the teenager which will serve as an all-in-one card (debit card, metrocard & bus card) for multiple needs for both online & offline payments.

SBI lists $300 million via Taiwan’s Formosa Bonds on India INX

State Bank of India (SBI) listed its 1st USD 300 million Formosa bonds on India International Exchange IFSC (India INX). SBI became the first Indian entity to raise money through Formosa Bond.Through the issuance, India INX became the first Exchange in IFSC (International Financial Services Centre) to list Formosa Bonds issued by SBI.

  • The headquarters of State Bank of India (SBI) is Mumbai, Maharashtra.

SBICPSL, Paytm join hands for Card Tokenization to Protect Cardholders’ Data

SBI (State Bank of India) Cards and Payment Services Limited (SBICPSL) has collaborated with Paytm to enable their cardholders to tokenize their cards on devices and make payments through Paytm.

Currently, only cards issued in the Indian Territory are enabled on Paytm network but this partnership enables SBI Cardholders to transact through Paytm network in international locations.The card tokenization facility is available only on Android NFC (near field communication) devices.

Paisabazaar.com and Axis Bank Launches Pre-Qualified Program for Personal Loans

On 30th December 2021 Paisabazaar.com, the digital marketplace for consumer credit partnered with Axis Bank to launch a pre-qualified program for unsecured loans on its platform.The pre-qualified program involves deep technology and analytics collaboration with banks and non-bank financiers, enabling customers to view customized and pre-qualified lending offers.

SBI, ICICI and HDFC Bank continue to be Domestic Systemically Important Banks

Reserve Bank of India (RBI) announced that SBI (State Bank of India), ICICI (Industrial Credit and Investment Corporation of India) and HDFC (Housing Development Finance Corporation Limited) banks will continue to be identified as Domestic Systemically Important Banks (D-SIBs).

Therefore, they will have to maintain additional Common Equity Tier 1 (CET1) capital ratios in the same manner prescribed in 2020.

SBI General Insurance launches ‘#BahaneChhodoTaxBachao’ Campaign on Tax Saving

SBI (State Bank of India) General Insurance Company Ltd launched a campaign titled ‘#BahaneChhodoTaxBachao’ to increase awareness around the need to buy health insurance to save tax.It will also highlight the other benefits of opting for health insurance.The campaign is in a quirky Vox Pop format featuring anchor Rudraksh Singh aka Rudy.

AIIB Invests USD 150 million in Development of Data Centres Serving Asia

Asian Infrastructure Investment Bank (AIIB), a multilateral development bank has committed USD 150 million to invest in the development of data centres that mostly serve emerging Asia through the Keppel Data Centre Fund II (KDCF II), a closed-end private equity vehicle managed by Alpha Investment Partners Limited (Alpha).

  • This project is being AIIB’s 1st data centre project. India is a key founding member of AIIB. The headquarters of Asian Infrastructure Investment Bank (AIIB) is Beijing, China.

Airtel Payments Bank & Park+ partner on FASTag-based Parking Solutions

Airtel Payments Bank and Park+ have collaborated to offer FASTag-based smart parking solutions to marquee commercial and residential properties across India.This partnership will utilize the reach of Airtel Payments Bank to digitise the parking ecosystem using FASTag associated with the vehicle.

Park+ is backed by Sequoia Capital and Matrix Partners, and is engaged in automating parking spaces through FASTag.

RBL Bank Collaborates with Google for Improving Customer Experience

RBL Bank and Google announced a strategic collaboration to improve the bank’s customer experience strategy through the digital platform, Abacus 2.0. This collaboration will enable better customer data management and analytics.

  • Aim – To provide a one-stop solution to its existing and new customers, to effortlessly deliver different product offerings.
  • The headquarters of RBL Bank is Mumbai, Maharashtra.

Axis Bank Collaborates with MinkasuPay for Biometric-Based Banking Payments

Axis Bank has partnered with MinkasuPay to offer a biometric authentication solution for net banking payments in merchant apps using Fingerprint or Face ID, without the need for usernames, passwords, and One-Time Passwords (OTPs).This Solution will reduce the time of payment from 50-60 seconds to just 2-3 seconds and also increase the transaction success rate.

LazyPay Partners with SBM Bank India to Launch LazyCard for Easy Credit

On 11th January 2022 LazyPay, a Buy Now Pay Later (BNPL) solution by PayU Finance, announced its partnership with SBM Bank India to launch LazyCard, a prepaid payment instrument backed by a credit line that works on the Visa payment network.

  • Objective – To empower financially underserved Indians with easy access to credit as their card has limited credit options.
  • The headquarters of SBM Bank is Mumbai, Maharashtra.

Axis Bank Issues 1st LC on Govt-backed Platform SLDE

Axis Bank issued industry’s 1st letter of credit (LC) on the Secured Logistics Document Exchange (SLDE), a government-backed blockchain-enabled platform (launched in July 2021). The deal, which was executed digitally on the SLDE platform, involved ArcelorMittal Nippon and Lalit Pipes & Pipes Limited (LPPL) (Axis bank’s client). The bank released an LC on behalf of LPPL.

UCO Bank Launched RuPay Select Contactless Debit Card in partnership with NPCI

UCO Bank (formerly United Commercial Bank Ltd) in partnership with the National Payments Corporation of India (NPCI) launched the ‘UCO Bank RuPay Select Contactless Debit Card’ with a host of benefits for its premium/HNI (High Networth Individuals) customers.This launch was made on the occasion of the 79th Inauguration Day of the bank i.e. January 6, 2022.

  • The card offers an ATM (Automated Teller Machine) withdrawal limit of Rs 50000 along with a purchase of up to Rs 2 lakh at POS (Point of Sale) or E-Commerce.

Canara Bank Partners with Lendingkart to Offer Loans Online for MSMEs

Fintech company Lendingkart announced a co-lending partnership with Canara Bank to provide low- cost business loans of up to Rs. 10 lakh to micro, small and medium enterprises (MSMEs).The aim of the partnership is to broaden the support provided to the MSME borrowers for enhancing financial inclusion under the Reserve Bank India’s (RBIs) Priority Sector initiative.

  • The loans will be originated and sanctioned through the digital platform ‘Lendingkart 2gthr’

using ‘zero touch’ technology.

Federal Bank, Equirus Wealth Jointly Launches USD Offshore Fund

Federal Bank and Equirus Wealth in collaboration with SCUBE Capital, a global fund management company based out of Singapore, have launched a ‘US dollar offshore fund’ for their customers. Only the customers of Federal Bank (both NRI (Non-Resident Indian) and Resident) could invest in the fund. It offers a portfolio return (internal rate of return (IRR)) guidance of ~ USD 6.50 percent per annum with a fund tenor of 3 years from the date of fund closure with an option to extend by one year.

  • The Headquarters of Federal Bank is Aluva,Kerala.

Ujjivan SFB launches Platina Fixed Deposit scheme

Ujjivan Small Finance Bank (SFB) launched ‘Platina Fixed Deposit’ (FD), offering interest of 15 basis points (bps) higher than the regular term deposit rates provided by Ujjivan SFB.The Platina FD is a non- callable deposit, where partial & premature withdrawal is not applicable.While the interest amount can be received on monthly, quarterly or at the end of the maturity period.

The Headquarters of Ujjivan Small Finance Bank (USFB) is Bangalore, Karnataka.

CUB & GOQii Launches CUB Easy Pay Fitness Watch Debit Card

City Union Bank (CUB), the oldest Private Sector Bank in India, in association with smart-tech-enabled preventive healthcare platform GOQii has launched CUB Easy Pay Debit Card in a Fitness Watch, a wearable & contactless RuPay On-The-Go payment solution, powered by National Payments Corporation of India (NPCI).On 24th January 2022, V.R.Venkatachalam, chancellor of Sri Ramachandra Institute of Higher Education and Research received the 1st watch in Chennai.

The headquarters of City Union Bank (CUB) Kumbakonam, Tamil Nadu.

Government Approves PMC Bank Amalgamation Plan with USFBL

Reserve Bank of India (RBI) announced the Government of India’s approval for the amalgamation of the Punjab and Maharashtra Co-operative Bank (PMC Bank) with Unity Small Finance Bank limited (USFBL), the 12th SFB of India.

The amalgamation came into force from 25th January 2022 and on the same day all the branches of the PMC Bank were allowed to function as the branches of USFBL.

  • RBI has also notified a Scheme for the amalgamation, which envisages takeover of the assets and liabilities of PMC Bank, including deposits, by the USFBL.

SPMCIL sets up New Bank Note Printing Lines at CNP, Nashik & BNP, Dewas

The Security Printing and Minting Corporation of India Limited (SPMCIL) has set up new Bank Note Printing Lines at Currency Note Press (CNP), Nashik in Maharashtra; and Bank Note Press (BNP), Dewas in Madhya Pradesh as a part of its modernization initiatives. The bank note printing line at CNP Nashik was virtually inaugurated by Meera Swarup, Special Secretary & Financial Adviser, Ministry of Finance.