Banking & Economy Awareness 2017 (Jan To Sep) by AffairsCloud

Banking & Financial
Awareness 2017
Dear AC Aspirants,
General Awareness section is very important in banking, insurance

and related exams. One can increase his/her chances of clearing the
written exam with good marks if he/she scores good marks in GA
section.
In 2017, we have observed that the exams are asking current

banking and Financial questions more in GA section. So with this
observance and to help you in the upcoming exams of the year, we
have gathered all the banking and finan current NEWS of this year
from January to September 2017.
The future belongs to those who believe in the beauty of

their dreams. Always insist on yourself never imitate.
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Banking & Financial Awareness
Contents
Banking & Finance Awareness January 2017 ................................................................................................... 2

Banking & Finance Awareness February 2017 ............................................................................................... 24
Banking & Finance Awareness March 2017 ................................................................................................... 43
Banking & Finance Awareness April 2017 ..................................................................................................... 60
Banking & Finance Awareness May 2017 ...................................................................................................... 78
Banking & Finance Awareness June 2017 ...................................................................................................... 91
Banking & Finance Awareness July 2017 ..................................................................................................... 108
Banking & Finance Awareness August 2017 ................................................................................................ 129
Banking & Finance Awareness September 2017........................................................................................... 145
Banking & Finance Awareness January 2017

RBI Extends the Demonetized Currency Exchange Date for NRIs to June 30
i. The Reserve Bank of India (RBI) has taken a relief providing decision for the Non-Resident
Indian and Indian Citizens who were staying abroad since November 9 to December 31post
demonetization decision.
ii. As per the decision, the Indian Citizens can exchange their demonetized notes up to March
31, 2017 while the Non Resident Indian (NRIs) citizens can avail this facility up to June 30,
2017.
iii. The bank informed that there would not be any limit for Indian residents while for
the NRIs the maximum limit would be Rs 25,000 as per the FEMA regulations 2015.
iv. They can avail this facility only once during the period on submission of valid ID documents
and evidence proof of being abroad. The decision also states that third party tender will not be
accepted.
Govt permits 12 PSU banks to raise Rs 3,000 cr from market

i. The Central government had infused a sum of Rs 25,000 crore in 19 PSBs during FY 2015-
16.In this Rs. 22,915 crore was allocated to 13 PSBs on July 19, 2016.
ii. The remaining amount Rs 2,914.038 crore will be released on assessment of performance of
12 PSBs, the Department of Finance in its year-end review for 2016
iii. The Finance Minister ArunJaitleyhas granted its approval to 12 proposals of PSBs to raise a
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sum of Rs 2,914.038 crore through preferential allotment and permission given to raise Rs 200
crore by United Bank of India through QIP mode.
26 crore accounts open under Jan Dhan Yojana across country

i. According to latest data released by Finance Minister ArunJaitley, 26 crore three lakh
accounts have been opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) across the
country till date.
ii. 15.86 crore accounts are opened in rural area and 10.17 crore accounts opened in urban area.
iii. Over 71 thousand 500 crore rupees have been deposited in these accounts and zero balance
accounts has come down to 23.86 per cent.
Bank of Baroda ties up with CNX Corporation

i. Public sector lender Bank of Baroda has announced a partnership with CNX Corporation (CNX)
to provide collateral management services towards the loans against warehouse
receiptsanctioned to the farmers through the network of the banks branches across the country.
ii. This will benefit the farmers from distress sale of their commodities
Banks cuts lending rates, home, corporate loans to be cheaper

A day after Prime Minister Narendra Modi announced an interest subvention for home loans of up
to Rs. 12 lakh and asked banks to keep the poor and middle class at the focus of their activities
many PSUs and private banks reduced their benchmark lending rate by up to 1.48 percent on
January 3, 2017.
The reduction in lending rates may lead to an increase in credit taking frequency which
has moderated substantially putting burden on balance sheet of banks. Housing, auto
and corporate loans are all set to become cheaper.
The three state-owned banks, State Bank of India (SBI) and Punjab National
Bank (PNB) and Union Bank of India on January 1, 2017, reduced the lending rate by a
good 0.9 per cent.
While SBI reduced its marginal cost of funds based lending rate (MCLR) by 90 basis
points for all maturities, Union Bank of India reduced its MCLR by 65-90 basis points for
loans of various tenures while PNB cut its MCLRs by 70 basis points for 1, 2 and 3 year
tenures.
Following the reduction, lending rate of SBI for a one-year loan, has come down to 8%
from 8.90%.
Following State Bank of India, other lenders including largest private sector lender ICICI
Bank and state-owned Oriental Bank of Commerce and Andhra Bank too announced cut
in marginal cost of funds based lending rate (MCLR).
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Home loan rates for ICICI Bank will come down between 0.45% and 0.6%, depending
on quantum and category.
Oriental Bank of Commerce has reduced the one-year MCLR rate by 0.8% to 8.60%,
while Andhra Bank has brought it down by a similar percentage point to 8.65%,
effective January 3, 2017
Kotak Mahindra Bank, too reduced the MCLR rate by up to 0.45%. The bank has
reduced MCLR by 0.20% to 9% from 9.20% for one-year tenor. However, the MCLR for
the three-month period has been reduced by 0.45 percentage points to 8.40%, while
the lending rate for two and three years, has been brought down to 9% from 9.25%.
Bandhan Bank has cut its MCLR by 1.48%, to 10.52%, effective from January 3, 2017.
With this, the bank has cut its loan rate for small borrowers by almost 4 percentage
points, since it started operations in August 2015.
Dena bank has reduced the MCLR by 0.75%, to 8.55%, for 1 year tenor.
RBI Directs Banks to Supply 40 Percent Notes in Rural Areas
The Reserve Bank of India on January 3, 2017, directed all the banks to supply atleast 40
percent of the notes to the rural branches since currency notes in rural areas was not
adequate to meet the requirements of the population.
HDFC Ties with Niki.ai to Launch OnChat to make Payments via Facebooks Messenger
i. HDFC has tied-up with artificial intelligence firm Niki.ai to launch a chatbot
called OnChat on Facebooks Messenger platform, that will allow users to recharge phones,
pay utility bills, book cabs from Ola or Uber etc., through a chat.
ii. The chatbot is available for non-HDFC bank users as well. The chat opens a payment
gateway through which transactions can be made using any bank account.
Coca-Cola India partners the State Bank of India to enable digital transactions
i. Coca-Cola India and its largest bottling partner Hindustan Coca-Cola beverages have
partnered the SBI to enable over 2.6 million retailers and 5000 distributors in conducting
business transactions digitally.
ii. SBI will educate retailers on digital transactions and will be developed a customized payment
solution for retailers and distributors.
Munich Re to open reinsurance branch office in Mumbai

Germany based Munich Reinsurance Company is planned to open its branch office
in Mumbai to provide the property-casualty, life, health reinsurance markets across India.
Munich Re is one of the first foreign reinsurers to receive approval for a dedicated branch in
India following the 2015 amendment of the Insurance Bill.
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Yes Bank ties-up with Bajaj Electricals for vendor financing using block chain
i. Yes Bank has entered into a tie-up with Bajaj Electricals for vendor financing using
blockchain solution.
ii. There is an over 70 per cent cost reduction because of blockchain and the payback for our
investments is 6-8 months.
Rs 5 discount on online payment of LPG cylinder

i. Cooking gas customers can now avail an upfront discount of Rs 5 on every refill booked and
paid for online.
ii. Indian Oil, Bharat Petroleum and Hindustan Petroleum have begun offering the price
discount to cooking gas customers.
Paytm Gets final approval from RBI to Start Operating as Payment Bank
i. Mobile commerce and payments company, Paytm received the final approval from the Reserve
Bank of India on January 3, 2017 to launch Paytm Payment Bank.
ii. Paytm Payments Bank Ltd is expected to start its operation in next 30-60days with its first
branch in Noida, Uttar Pradesh.
iii. Paytm Payments Bank is held 51% by Sharma and 49% by One97 Communications Pvt. Ltd. It
has already received investments of Rs 220 crore from One97 Communication and its Vijay
Shekhar Sharma.
Karnataka Bank launches group Personal Accident Insurance Scheme named KBL
Suraksha
i. Karnataka Bank has launched has launched a group Personal Accident Insurance
Scheme for all its Saving Bank(SB) Account holders. The insurance scheme is named KBL
Suraksha and provides insurance cover for accidental death.
ii. All the SB Account holders within the age group of 18-70 years can register themselves for
the insurance scheme. The KBL Suraskha Scheme comes in two variants.
iii. Plan A provides an accidental insurance of Rs 5 lakh on payment of Annual premium of Rs
50(plus service charge). Plan B provides an accidental insurance of Rs 10 lakh on payment of
Annual premium of Rs 100(plus service charge). The maximum renewal age for the policy will
be 75 years.
iv. Karnataka Bank has launched the insurance scheme in association with Universal Sompo
General Insurance. The bank has launched a month-long campaign to promote its KBL
Suraksha scheme.
SIDBI ties up with LIC for capital support to enterprises

i. Small Industries Development Bank of India (SIDBI) has tied up with Life Insurance
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Corporation of India (LIC) to give a boost to the venture capital ecosystem for MSMEs.
ii. LIC and SIDBI signed Contribution Agreements with 7 Venture Capital Funds (VCFs) with an
aggregate commitment of Rs 99.50 crore from LIC on January 03 in New Delhi. This is over and
above commitment of Rs 162.75 crore already given to these funds by SIDBI.
16th Financial Stability and Development Council Meeting Held in New Delhi
The 16th edition of the Financial Stability and Development Council (FSDC) meeting was
held on January 5, 2017 in New Delhi under the Chairmanship of
the Union Finance Minister ArunJaitley.
Aim: The FSDC meeting was held to discuss about the obstacles faced by the economy and to
bring out the solution to tackle them. Besides, it also aimed at bringing new suggestions and
outcomes in order to benefit the upcoming Budget 2017-18.
Key Discussions Held During the Meeting
i.While chairing the meeting, the Union Finance Minister, ArunJaitley emphasized the significance
of demonetization decision saying that the governments measures to eliminate the shadow
economy and tax evasion are expected to have a positive impact both on GDP and on fiscal
consolidation in the long run.
ii.The Council, which has heads of all financial sector regulators as its members, reviewed the
major issues and challenges facing the economy and noted that India appears to be much better,
placed today on the back of improvement in its macroeconomic fundamentals.
iii.Financial regulators gave suggestions to promote financial stability and also discussed the
measures and initiatives to establish and promote the financial stability. Also, the regulators
offered their suggestions for the upcoming Budget for 2017-18, which were discussed by the
Council.
iv.In the meeting, Chief Economic Advisor Arvind Subramanian made a presentation on the state
of the economy.
v.FSDC discussed about the various initiatives taken by the government and regulators for
promoting financial inclusion/ financial literacy efforts and discussed further measures for
promoting the same.
Droom Partners with Axis Bank for quick sanction of loans

i. Online automobile marketplace Droom has tied up with Axis Bank to provide quick sanction of
loans on both new as well as used cars.
ii. Loans will be provided for up to 85% of the value of the car with a tenure of 1-5 years.
iii. Furthermore, loans on Used Cars can be availed on vehicles upto the age of 10 years.
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Indias GDP growth estimated at 7.1% this year & Per capita net national income rises
by over 10%
i. According to the Central Statistical Office data Indias Gross Domestic Product (GDP) growth
is estimated at 7.1 per cent in 2016-17 as compared to 7.6 per cent in 2015-16.
ii. The CSOs projection on the per capita net national income during 2016-17 is projected to be 1
lakh three thousand seven rupees displaying an increase of 10.4 per cent as compared to 93
thousand two hundred ninety three during 2015-16 with the growth rate of 7.4 percent.
iii. The agriculture, forestry and fishing sector and manufacturing sector are likely to show a
growth of 4.1 per cent and 7.4 percent respectively during 2016-17, as against the previous
years growth rate of 1.2 per cent and 9.3 percent in 2015-16.
iv. The wholesale price index (WPI), of food articles has risen by 6.9 per cent,and the consumer
price index has shown a rise of 5.0 per cent during April-November, 2016-17.
SEBI eases rules for foreign fund managers & Sebi relaxes rules for angel funds to boost
start-up funding
i.The Market Watchdog SEBI has released rules allowing foreign fund managers to act
as Portfolio Managers under a relaxed regulatory regime.
ii.This new rule will make it easier for foreign fund managers to enter India also provides
significance of taxation incentives for the offshore fund managers willing to relocate to India.
iii. In another development the market regulator also relaxed its rules for investment by angel
funds, including permitting them to invest in up to five-year old entities which will boost startup
funding.
iv.Consequently the lock-in condition has been cut down from 3 years to 1 year for angel funds
and their minimum investment threshold has been slashed from Rs. 50 lakh to Rs. 25 lakh.
v. Angel funds are permitted to invest in overseas venture capital undertakings up to 25 per
cent of their investible corpus in agreement with other Alternative Investment Funds.
RBI to provide rupees 1 billion in Rs 100 notes to Nepal Rashtra Bank

i. Indias central Bank RBI has decided to provide Rs 1 billion in Rs 100 denomination
notes to Nepal Rastra Bank (NRB) to ease the acute shortage of Rs 100 notes faced by the
landlocked nation.
ii. In the wake of demonetization RBI has asked the NRB to wait till the situation normalizes. RBI
provides Rs 6 billion exchange facility to Nepal every year.
iii. After the Indian governments move to demonetize Rs 500 and Rs 1,000 notes the NRB had
also lowered exchange limit of Indian banknotes in Nepal.
iv. The NRB provides exchange facility up to Rs. 2000 and Rs. 10, 000 to those who submit a
copy of air or train ticket to travel to India. This limits is likely to extend till the time the RBI is
able to provide regular exchange facility.
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Forex reserves up by $625.5 mn to $360.296 bn : RBI

i. The Reserve Bank in its press release stated that foreign exchange reserves rose by $625.5
million to $360.296 billion in the week to December 30, 2016.
ii. The Central Bank also said that Foreign Currency Assets which us major component in the
Forex Reserves surged by 612.4 million USD to 336.582 billion USD. However the Forex reserves
had touched all-time high of USD 371.99 billion in September 30 last year.
UCO Bank launches Suvidha prepaid card

i. Kolkata based UCO Bank has launched its prepaid card UCO Suvidha by R.K. Takkar, MD
&CEO, UCO Bank, and Executive Directors, Charan Singh and G. Subramania Iyer.
ii. The prepaid card can be used for cash withdrawals, purchase at Points of Sale (POS) or over
the Internet.
iii. The prepaid card offers the flexibility to load/ reload amount as and when required and is
targeted at corporates, government departments, institutions and other organisations.
HDFC Bank Launches Humanoid Robot IRA

i. Indias second largest private sector lender HDFC Bank has launched a human shaped robot
named IRA at its Mumbai branch to help the assist the customers in banking activities.
ii. Initially the role of the robot will be limited to that of receptionist that will greet the customers
entering the bank and display the services and banking facilities like withdrawal, deposit, forex,
fixed deposits and demat. The robot would also be installed with the map of the bank branch with
a button Take me there to help the customers in easy service.
iii. IRA which stands for Intelligent Robotic Assistant aims to provide smoother customer
service, marketing, employee assistance and automate the banking process. Depending on
customer reaction the Bank would install more such robots across its branches in the country.
SBI waives MDR charges for small merchants for one year
i. SBI has waived Merchant Discount Rate (MDR) on debit card transactions for all small
merchants with annual turnover of up to Rs 20 lakh for one year.
ii. The bank has decided to waive completely, the MDR charges on debit card transactions for all
small merchants for a period of one year upto December 31, 2017.
Axis Bank Becomes Third Lender to Use Block Chain Solution

i. Following ICICI and Yes bank, the private sector lender Axis Bank has also joined the group as
the third bank to use block chain solutions in its operations.
ii. Third largest Private sector bank led by Shikha Sharma has tied up with fintech firm Ripple to
offer the solution.
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Indias GDP Growth Decelerates to 7 percent for fiscal 2016-17: World Bank
i. The World Bank on January 11, 2017 cut the Indias GDP growth for 2016-17 fiscal ending on
March 31, 2017 to 7 percent from its previous estimate of 7.6 percent due to demonetization.
ii. The bank cited the immediate withdrawal of a large volume of currency in circulation and
subsequent replacement with new notes as the main reason behind the deceleration of the GDP
growth rate.
iii. However, the bank also asserted that India is expected to regain its momentum with GDP
growth at 7.6 percent in Fiscal Year (FY) 2018-19 and strengthening to 7.8 per cent in FY
2019-20.
Indian Standards on Gold Hallmark Revised by Bureau of Indian Standards

i. Indian Standard on gold hallmarking has been revised by the Bureau of Indian Standards
(BIS) on January 9, 2017 and has been made effective for implementation with effect from
January 1, 2017.
ii. From now the hallmarked gold jewellery will be available in three grades: 14 carat, 18 carat
and 22 carat. These caratage would also be mentioned on the jewellery besides the fineness for
the convience of the customers.
HDFC ERGO Launches Credit Insurance Policy to Safeguard Business

i. HDFC ERGO General Insurance Company launched a new policy, Trade Credit Insurance
Policy, on January 9, 2017 to which safeguards businesses against the risks of non-payment for
the goods or services delivered to the buyers.
ii. Indias third largest private sector non-life insurance provider informed that the policy would
offer cover against payment defaults and insolvency, apart from providing political risk cover to
exporters.
iii. Under the new policy, the insurer covers a portfolio of buyers and pays an agreed percentage
of the invoice or receivables that remain unpaid as a result of insolvency, bankruptcy or
protracted default.
Citibank Launches Voice Biometrics Authentication for Phone Banking

i. Citibank India has launched a Voice Biometrics Authentication for its phone banking
customers on January 10, 2017 that would allow clients to use their voiceprints for authentication
rather than remember multiple PINs or respond to questions through current practice of
interactive voice response (IVR) used for verifying their identities.
ii. The voice biometrics authentication uses unique voiceprint which is similar to fingerprint for
each person.
NITI Aayog Estimates the GDP Growth of 8 Percent for 2016-17

i. NITI Aayog has projected the GDP growth rate of 8 Percent for 2016-17 based on the
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appraisal document for the Twelfth Five-Year Plan.

ii. The estimate does not take into account the impact of demonetization.
iii. The policy think tank laid that overcoming the lack of reforms in land acquisition, labour, skill
development and simplification of regulatory cum administrative procedures can lead to growth
prospect of above 8 percent.
Airtels Payments Bank Starts Operation with Initial Investment of Rs. 3000
i. Airtel Payments Bank started its nationwide operations on January 12, 2017 with an initial
investment of Rs 3,000 crore and offering an interest rate of 7.25 per cent for savings
accounts. The bank was launched by Finance Minister Arun Jaitley.
ii. This is the first payments bank which will be opened across 29 states in India to provide
financial services to the millions who are outside the banking system.
SBI Signs $ 50 mn Pact with Omans SGRF

i. State Bank of India has signed a pact with the State General Reserve Fund
of Oman (SGRF), a Sovereign Wealth Fund to infuse $50 million in private
equity fund Oman India Joint Investment Fund (OIJIF) while the SGRF would infuse $150
million.
ii. The SBI aims at backing the private equity fund for its second offering (Fund II).
Tax department, Japanese company sign advance pricing pact

The tax department signed a Bilateral Advance Pricing Agreement (BAPA) with Indian subsidiary
of a Japanese trading company to include rollback provisions to reduce litigations by providing
certainty in transfer pricing on January 13, 2017
Now the total number of BAPAs entered into by the CBDT is increased to 8.
Highlights :
i. BAPA is an important step towards ascertaining transfer pricing matters of multinational
company cases and dispute resolution.
ii. Under BAPA, certainty in tax treatment is provided for the next five years while rollback
provides dispute redressal for a maximum of four past years preceding APA years.
SEBI Lowers Broker Fees by 25 Percent to Rs 15 Per Transaction

i. The SEBI Board on January 14, 2017 announced its decision to reduce the fees payable by
broker by 25 percent as a part of calibration of various other fees collected by the regulator from
different market intermediaries.
ii. It has decided to lower the fees from Rs 20 per crore of turnover to Rs 15 per crore of
turnover to reduce the overall cost of transaction.
iii. The SEBI Board has also decided to give an option to all market intermediaries and companies
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to make their regulatory payments in digital mode to help in speedy and easy transactions and
reduce failures due to payment gateway issues.
NPCI declares Rs 54.90 crore prize money for NITI Aayogs lucky draw schemes
i. National Payments Corporation of India (NPCI) has declared Rs 54.90 crore prize money to
over 3.42 lakh winners for NITI Aayogs lucky draw schemes Lucky Grahak Yojna (LGY) and
Digi-Dhan Vyapar Yojna (DVY).
ii. There are 15,000 daily winners qualifying for total prize money of Rs. 1.5 crore and
over 14,000 weekly winners qualifying for total prize money of over Rs. 8.3 crore every week.
It will run till April 14, 2017
iii. Maharashtra, Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Karnataka emerged as the top
five states with maximum number of winners under the age group of 21 to 30 years.
BSNL Launches Aadhar Based e-KYC Project

i .BSNL has launched its Customer Acquisition and Customer Communication Management
(CACMS) project that aims to digitalize business process to ensure faster service, accurate
customer responses and customer satisfaction.
ii. The project provides an Aadhar based e-KYC (Know Your Customer) service for
immediate activation of new mobile connections across the country.
iii. The state-run telecom has selected Intense Technologies to deliver the CACMS project on a
Pan India basis for all lines of business of BSNL as per the terms and conditions of the tender.
Market Regulator SEBI Tightens Mergers & Acquisitions Norms Among Unlisted Firms
The Capital market regulator of India, Securities and Exchange Board of India (SEBI) on
January 14 tightened the norms associated to Mergers and Acquisitions (M&A) of Indian
companies.
Aim: The main objective behind the move is to prevent large number of unlisted
company to get listed by merging with a very small company for personal motive and
protect the interest of the Public shareholders in the listed companies and give them a
greater say in the merger with unlisted subsidiaries.
Directives Rolled Out by SEBI
SEBI directed after the unlisted company merge with listed company and gets automatically
listed, the effective total public shareholding of the listed entity plus the qualified
institutional buyers (QIBs) of the newly listed company has to be at least 25%.
The public shareholding of the resultant entity created by the merger of an unlisted and
a listed company has to be more than 25 per cent.
The unlisted entity can only merge with those companies that are listed on exchanges such
as the National Stock Exchange (NSE) and BSE.
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The market regulator also directed companies to follow the pricing formula specified under
the Issue of Capital and Disclosure Requirements (ICDR) regulations. This aims to
prevent companies to issue shares to select group of shareholders instead of all shareholders
during mergers and amalgamations between listed and unlisted entities.
Mysuru Printing Press Breaks Record by Printing Highest No. of Currency Notes in a
Month
i. As per the data released by the President of Note Mudran Limited Employees Union, A Ramdass,
the RBI Note Mudran printing press in Mysuru printing highest number of currency
notes in December breaking all its past record.
ii .It printed 10.9 million currency note in a day that even broke the world record made an
American currency printing press of printing 8.7 million notes in a day.
India Signs Financing Agreement with World Bank for US$ 48 Million for Nagaland
Health Project
The Joint Secretary of Department of Economic Affairs, Mr. Raj Kumar and Acting Country Director
of the World Bank Mrs. Genevieve Connors are signed s financing agreement for IDA credit of US$
48 million for the Nagaland Health Project on January 16, 2017.
Central & SBI Card launch premium co-branded card

i. Future Groups fashion and lifestyle departmental store Central joined with SBI
Card launched a second co-branded credit card to offer benefits to consumers in the premium
lifestyle and fashion space on January 16, 2017
ii. The Central SBI SELECT and SELECT+ Cards will offer an accelerated reward points structure
1.20 reward points for every Rs 100 spent in Central stores.
2.10 reward points per Rs 100 spent spent in dining and entertainment
3.2 reward points per Rs 100 in other categories
IRDAI forms panel to review life insurance product norms

i. The Insurance Regulatory and Development Authority of India (IRDAI) has formed a 8 member
committee headed by Amitabh Chaudhry, CEO of HDFC Standard Life Insurance Company to
review life insurance product regulations on January 16, 2017
ii. The committee will analysis the existing framework of IRDA-linked and non-linked
insurance product regulations
iii. IRDAI instructed to the committee to submit its report before March 15, 2017.
Committee Members :
Head : Amitabh Chaudhry, CEO of HDFC Standard Life Insurance Company
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K S Gopalakrishnan, CEO, Aegon Religare Life Insurance, Sai Srinivas, Appointed Actuary, Bajaj
Allianz Life Insurance and Sandeep Bakshi, CEO, ICICI Prudential Life
Study by Oxfam Shows Richest 1% in India Holds 58% of Total Wealth
i. As per a report titled An economy for the 99 per cent released by rights group Oxfam on
January 16, 2017, the richest 1 percent of the population in India holds 58 percent of the
countrys total wealth which is higher than the global figure of 50 percent.
ii. The report found that since 2015, the richest 1 percent population in India has continued
to own more wealth than the rest of the countries.
iii. Besides, it also discovered that 57 billionaires in India having collective wealth of USD 216
billion was equal to the wealth that lowest 70 percent population held. However, when taken
globally only 8 billionaires have the same amount of wealth as the poorest 50 percent of the world
population.
iv. The study stated that India has 84 billionaires with a collective wealth of USD 248
billion. The total Indian wealth in the country was calculated at USD 3.1 trillion. Top 3 billionaires
comprised of Mukesh Ambani (USD 19.3 billion), Dilip Shanghvi (USD 16.7 billion) and Azim
Premji (USD 15 billion).
iv. In contrast, the total global wealth in 2016 was USD 255.7 trillion. Of this, the top three global
billionaires held about USD 6.5 trillion which comprised of Bill Gates (USD 75 billion), Amancio
Ortega (USD 67 billion) and Warren Buffett (USD 60.8 billion).
IMF Lowers Indias GDP Growth Rate to 6.6% from 7.6% for FY17
i. According to the World Economic Outlook report, the International Monetary Fund
(IMF) on January 16, 2017 has lowered the Indias GDP growth rate for the current fiscal year
by one point to 6.6 percent from its previous estimate of 7.6 percent due to the effect of
demonetization on consumption and expenditure.
ii. IMF also cut Indias GDP forecast for 2017-18 by 0.4 points to 7.2 percent as against previous
forecast of 7.6 percent. For the year 2018-19, the projected growth rate remained unchanged
at 7.7 percent.
iii. Besides, IMF estimated the growth rate of China at 6.7 percent for 2016-17, 6.5 percent for
2017-18 and 6 percent for 2018-19.
iv. The global growth for 2016 was estimated at 3.1 percent that remained unchanged from
previous forecast while for 2017 the global forecast is estimated at 3.4 percent for advanced and
3.6 percent for developing economies.
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Yes Bank Launches Business Accelerator Program Yes Fintech
i. Private sector lender YES BANK in collaboration with T-Hub, Anthill and Lets Talk
Payments launched a unique business accelerator program YES FINTECH to provide start-ups
a platform for creating sustainable and market ready products as well as provide innovative
banking solutions to the customers.
ii. YES FINTECH has invited start-ups applications from across the global community, till February
3, 2017 on its website www.yesfintech.com. It would select top 12 start-ups for 15 week dual
destination program to be held in Mumbai and Hyderabad.
Yes Bank Launches Indias First Customisable Savings Account
i. YES Bank has launched a first of its kind unique Customizable Savings Account to enable the
customers to design an account as per their convenience.
ii. Mumbai based bank has become the first bank in India to launch such type of account that
enables the customer to choose various features of a savings accounts that suits ones own
lifestyle.
RBI Hikes Cash Withdrawal Limit from ATMs to Rs. 10,000 per Day
The Reserve Bank of India (RBI) from January 16, 2017 has increased the limit of cash
withdrawal from ATMs to Rs 10,000 per day from the current Rs 4,500 with immediate effect
Karang Island in Manipur Becomes Indias First Cashless Island

i. Contributing to the Governments Digital India Campaign, a small lake island Karang in
Manipur has been declared as the countrys first cashless island by the Union Ministry of
Electronics and Information Technology on January 13, 2017.
ii. The island fulfilled the Centres necessary criteria to be named as the cashless island. A
campaign was organized from January 9 to 12 by the Karang Island Boat Association and
Panthoibi Khoyol Standard Association in the island to promote cashless transactions.
30 More Countries to Join Asia Infrastructure Investment Bank

The Foreign Ministry spokesperson of China, Hua Chunying on January 17, 2017 informed
that thirty more countries have applied for joining the Asia Infrastructure Investment
Bank (AIIB) besides 57 founding members.
UN Report Estimates Indias GDP to grow by 7.7% in 2017

i. Based on the United Nations report on World Economic Situation and Prospects (WESP)
2017 released on January 17, 2017, Indias economy is projected to grow by 7.7 percent in
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the fiscal 2017 because of being the fastest growing large developing economy.
ii. Besides, the growth estimate for 2018 has been projected at 7.6 percent. However, it also
stated that low capacity utilization and stressed balance sheets of banks and businesses will have
negative effect on strong investment revival in the short term.
iii. The report estimated the growth prospect of China to remain stable at 6.5 percent for fiscal
years 2017 and 2018 due to favourable domestic demand and accommodative fiscal measures.
iv. Earlier the International Monetary Fund cut Indias growth rate for the current fiscal year
to 6.6 percent from its previous estimate of 7.6 percent while the World Bank too lowered
Indias GDP growth for 2016-17 fiscal to 7 percent from its previous estimate of 7.6 percent.
CBDT Clarifies No TDS or Advance Tax Credit for Income under PMGKY
i. The Central Board of Direct Taxes (CBDT) on January 18, 2017 cleared that income
declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY) would not be entitled to get any
credit by way of advance tax paid or the tax deducted at source (TDS) or tax collected at
source (TCS)
ii. This is in contrast to the earlier Income Declaration Scheme (IDS) under which these credits
were allowed.
Lloyds Gets Final Approval from IRDAI to Open First Branch in India
i. Londons insurance giant Lloyd has received the final approval from the Insurance
Regulatory and Development Authority (IRDA) on January 19, 2017 to set up its first branch
in India.
ii. The specialist insurance and reinsurance company would open its first branch office in India
before April 2017 and will be located at Mumbai.
PNB and IPPB team up for technology support

New Delhi based Punjab National Bank signed a memorandum of understanding(MoU)
with India Post Payments Bank(IPPB) to provide technology platform for pilot launch of IPPB
on receipt of regulatory nod from the Reserve Bank of India.
World Bank Sanctions Rs 1,376 Cr For Tripura Power Upgradation

i. Washington based World Bank has sanctioned Rs 1,376
crore for upgradations and improvement of the Tripura power system network on January
19, 2017. This was announced by Tripuras power minister Manik Dey.
ii. The Power Upgradation project is divided into 5 phases. SPML Infra Ltd has got the contract of
the first phase with the budget of Rs 461 crore .
iii. A large number of 132 KV and 33 KV substations will be constructed and upgraded under the
project across Tripura.
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IT Department Expands Deposits & Transactions List under Scrutiny

i. The Income Tax Department released its detailed guidelines on January 17, 2017 expanding
the list of high end deposits and transactions made during the demonetization period to be
reported by the banks, companies, post offices and businesses for scrutiny.
ii. As per the guidelines, banks need to report deposits made by individuals upto Rs. 2.5 lakh or
more in savings account during the demonetisation period. Besides, for current account
holders, this limit is Rs 12.5 lakh.
RBI imposes Rs 75 lakh penalty on Bombay Mercantile Co-operative Bank

Indias central banking institution, Reserve Bank of India(RBI) has imposed a penalty of Rs
75lakhs on Bombay Mercantile Co-operative Bank for violations of norms related to KYC and
anti-money laundering.
RBI had issued a notice regarding this to the bank and the bank has submitted its written reply.
Union Cabinet approves Excluding States /Union Terrotries from Investments of

National Small Savings Fund
i. The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its
approval on January 18, 2017 to exclude States/Union-Territories (with
Legislature) except Arunachal Pradesh, Delhi, Kerala and Madhya Pradesh from National
Small Savings Fund (NSSF) investments effective from April 1, 2016.
ii. Besides, it also approved to provide a one-time loan of Rs. 45,000 crore to Food
Corporation of India (FCI) from NSSF to meet its food subsidy requirements.
Kerala Gramin Bank to propagate financial literacy among school children

i. Kerala Gramin Bank has launched a novel programme called FI@School at Assisi
Vidyanikethan Public School, Kakkanad to propagate financial literacy among school children on
January 20, 2017
ii. Every branch of the bank has to tie up with nearest school to organise various programmes to
literate school students
iii. The bank has appointed magician Gopinath Muthukad as the brand ambassador
for FI@School.
GST Decides Tax Evasion Upto rs. 2 Cr Bailable Offence

i. The Centre and State Government has in a meeting decided to reduce some of the penal
provisions of the GST regime in order to make it less burdensome.
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ii. The GST Council has decided that tax evasion of upto than Rs. 2 crore would be bailable
offense to ensure that the trader gets immediate bail while the non-bailable offenses would be
limited to forgery and non- deposit of collected taxes with the exchequer within the
stipulated time frame.
Cooperative Banks Barred From Accepting Deposits under PMGKDS

i. The Cooperative banks have been barred by the Government on January 20, 2017 from
accepting deposits under the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS) to
stop any misuse of the deposited amount.
ii. The decision comes after the income tax department revealed that a large number of
cooperative banks were manipulating and laundering undisclosed money after the
government scrapped the old Rs 500 and Rs 1,000 banknotes on November 8, 2016.
Kwality Ltd Signs MoU with Bank of Baroda for Rs 4000 Cr Loan to Farmers
i. Mumbai based dairy firm Kwality Ltd has signed an MoU with Bank of Baroda on January
20, 2017 to provide Rs. 4000 crore loans to one lakh farmers out of the established networks
from whom the company procures milk.
ii. The MoU aims to provide financial assistance to improve socio-economic lives of farmers
and encourage them towards digitisation.
Punjab National Bank Launches Contactless Credit Card

i. Punjab National Bank (PNB) has launched a Contactless Credit Card named PNB Wave N
Pay on January 21, 2017 in New Delhi to further enhance its digitalization initiative.
ii. The new card was launched by the Managing Director & Chief Executive Officer of PNB,
Usha Ananthasubramanian and is developed on Visa Platinum platform.
Utkarsh Micro Finance Launches its Small Finance Bank

i. Varanasi-based Utkarsh Micro Finance started operating its banking business as Utkarsh
Small Finance Bank on January 23, 2017 to cater to the needs of the poor mainly in the
northern belt. UKs Commonwealth Development Corporation (CDC) has infused Rs. 150
crore in the tier II capital in the company.
ii. Utkarsh Small Finance Bank has started its operation with five full-fledged branches. It has
removed the 1 percent processing fees for new borrowers and looks forward to reducing the
lending rates to capture the market. At present, it lends at 15-25 percent annually.
iii. The bank will offer 6% interest on savings bank accounts while deposit rates for one
year would be 8.25-8.50% which is about 150 basis points higher than State Bank of India.
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Rescheduled Education Loan will not be Considered for Computing NPAs:RBI

i. In a bid to encourage banks to provide loans for education, the Reserve Bank of Indiahas
declared that rescheduling the period of payment of education loans due to the inability of the
borrower because of unemployment will not be treated as restructured accounts for
computing NPAs.
ii. Banks can allow three rounds of extension periods, each not more than 6 months, during
the entire lifecycle of the education loan, to be applicable only on
unemployment/underemployment borrowers.
IRDAI okays Swiss Re move to open Mumbai branch

i. Wholesale reinsurance provider Swiss Re has received approval from the Insurance
Regulatory and Development Authority of India (IRDAI) to open a branch in the city.
ii. With the composite branch license, Swiss Re will be able to operate in India and it can offer
both non-life and life and health reinsurance solutions directly to clients and brokers in the
country.
iii. Swiss Reinsurance Company, India Branch, will begin its operation from February 1.
BCSBI Launches Know Your Rights Programme

i. The Banking Codes and Standards Board of India (BCSBI) has announced an initiative as
per which it would organise Know Your Rights programme in select urban and rural areas of
the country to enhance awareness on Banking Codes at the grassroot level among the people.
ii. The move aims to create awareness among the people about the commitment of the banks
towards their customers.
iii. The programme would be conducted at three levels including Tier II cities, metros and
other backward areas.
iv. The CEO of BCSBI, Anand Aras informed that the first such programme was organized by
BCSBI in Kochi on January 23, 2017 in association with Kudumbashree for less privileged women
in Kerala.
v. The programme, interalia involved skit and a puppet show to describe the banking codes to
over 100 participating women in simple language. It also addressed about 300 educated section
of the society to increase their awareness about banks commitment towards them.
Cabinet Permits NABARD to Raise Rs. 20,000 crore for on-lending to Co-Op Banks
i. The Union Cabinet chaired by the Prime Minister Shri Narendra Modi gave its post-facto
approval on January 24, 2017 allowing National Bank for Agriculture & Rural Development
(NABARD) to raise approx. Rs. 20,000 crore from the market for on-lending to Cooperative
Banks.
ii. It permitted the bank to make the short term borrowing at the prevailing market rate and lend
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to Co-op Banks at 4.5 Percent rate of interest. The move will support the famers by providing
them loans to boost agricultural production.
France Issues First Green Bonds With Record Sale of 7 Billion Euro
i. France on January 24, 2017 issued its first Green Bonds with a record sale of worth seven
billion euro (USD 7.5 billion) thus leading a significant way towards establishment of a genuine
market in renewable energy bonds.
ii. The proceeds from the bonds will be used by France to finance projects to address climate
change.
iii. The 22-year bonds coupon has been set at 1.75 percent which is same as the interest rate
on conventional borrowing for the same time frame. This will enable France to finance expenditure
on green projects at the same price as traditional borrowing.
RBI Prohibits FDI in Non-Cooperative Countries

i. The Reserve Bank of India has prohibited the Indian entities on January 25, 2017 from
making direct overseas investments in any entity that is located in 'non co-operative countries
and territories', as identified by the inter-governmental body Financial Action Task Force
(FATF).
ii. The move aims to bring down the global terror financing and thus prevent, detect and prohibit
money laundering
SBI Launches Wealth Management Product SBI Exclusif in Kochi

i. The State Bank of India has launched a new wealth management product named SBI
Exclusif in Kochi, Kerala. Later it will be rolled out in other cities of the state during the course
of the year.
ii. The product was launched by Chief General Manager, SBI, Kerala Circle, S Venkataraman on
January 24, 2017.
iii. SBI Exclusif is targeted at fast growing affluent and high net worth customer segments of the
bank.
Karnataka Bank Signs MoU with Tirth Agro Technology

Mangaluru based private sector bank Karnataka Bank Ltd signed a Memorandum of
Understanding with the leading agricultural equipment/implements manufacturer Tirth Agro
Technology Pvt Ltd, Rajkot, on January 25, 2017 in to finance farmers for agri mechanisation.
Aim of the MoU
i. To establish a platform for co-operation between the two in identifying farmers in need of
buying agricultural implements/equipment and financing them by the bank on its terms.
ii. To promote agriculture mechanization in India by utilizing banks experience in agricultural
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finance through its branches across India.
Government to Launch Aadhar Pay for Cashless Transactions through Biometrics

i. The Government on January 27, 2017 informed about its plan to launch the biometric
based Aadhaar Pay payment platform in few weeks for BHIM App.
ii. Aadhaar Pay service will enable people to make and receive payments using their Aadhaar
number and biometrics.
iii. The government enabled the Bharat Interface for Mobile (BHIM) app with
Aadhaar number on January 26, 2017.
CASHe integrates Paytm Wallet for direct cash transfers

i. Indias fastest loan giving app for young salaried professionals, CASHe has partnered with
Paytm on January 27, 2017 to allow its users to deposit cash transfers from CASHe to
their Paytm wallets.
ii. With this integration, users of CASHe will have an option to transfer their loan amounts into
their Paytm Wallets in part or in full and credit the rest of the amount into their bank accounts.
This is an industry-first innovation from CASHe.
iii. CASHe offers multiple loan options ranging from Rs. 5,000 to Rs. 1,00,000 payable over 15,
30 and 90 days.
Indias Foreign Exchange Reserves Rises by $ 932.4 million to $ 360.775 billion

i. The Reserve Bank of India on January 29, 2017 informed that the Foreign Exchange
Reserves of India rose by 932.4 million dollars to 360.775 billion dollars for the second
consecutive week ended January 20.
ii. In the previous week, Indias forex reserve increased by 687.9 million dollars to 359.843 billion
dollars.
FGII Enters Into Bancassurance Tie-Up With Bank Of Maharashtra

i. Future Generali India Insurance Company (FGII) announced an agency tie-up with Pune
based Bank of Maharashtra on January 30, 2017.
ii. Aim: To immensely benefit our customers by providing them an ease of access while choosing
from a diverse range of non-life insurance products, all under one roof
iii. It has tie-up with over 100 banks in India for bancassurance.Now it accounts for 5 per
cent of Future Generalis total busines.
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Union Finance Minister Arun Jaitley Presented Economic Survey 2016-17 in the
Parliament
The Union Finance Minister Shri Arun Jaitley presented the Economic Survey 2016-17 in the
Parliament on January 31, 2017 that provides a base for the government to prepare the annual
Budget.
The survey has been authored by Chief Economic Adviser Arvind Subramanian.The
Economic Survey depicts the state of the economy and is generally presented in
Parliament a day before the presentation of the annual Budget.
Important Highlights of the Economic Survey 2016-17
GDP Growth
The Economic Survey has estimated that the GDP growth rate for FY18 will be in the range
of 6.75 percent to 7.5 percent.
Demonetization and rising oil prices have been identified as the major risk to the growth
rate. However, remonetization and sufficient circulation of currency notes may return the
growth rate to normal position.
The growth rate for the current fiscal has been estimated at 7.1 percent from the previous
7.6 percent by the Central Statistics Office. This estimate does not take into account the
effect of demonetization.
Fixed investment (gross fixed capital formation) to GDP ratio (at current prices) is estimated
to be 26.6 per cent in 2016-17 as compared to previous 29.3 percent.
Government Revenues
The survey stated that the indirect taxes grew by 26.9 percent during April-November 2016.
Besides, the revenue expenditure experienced a boost in the same period due to
increase in the salaries of government employees by 23.2 percent with the Seventh Pay
Commission and 39.5 percent increase in the grants for creation of capital assets.
Inflation
As per the Consumer Price Index (CPI), inflation remained under control for the third successive
financial year. The average CPI inflation was 5.9 percent in 2014-15, 4.9 percent in 2015-16
and 4.8 percent during April-December 2016.
Based on Wholesale Price Index (WPI), inflation was 2.0 per cent in 2014-15 and lowered to
(-)2.5 percent in 2015-16. During April-December 2016 it averaged to 2.9 percent. As per
the report pulses contributed major risk to food inflation.
Trade Growth
The survey stated that the growth in export was increased by 0.7 percent during April-December
of 2016-17 amounting to USD 198.8 billion.
Similarly, during April-December of 2016-17, imports declined by 7.4 per cent
to USD 275.4 billion.
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Besides, trade deficit declined to USD 76.5 billion in 2016-17 (April-December)

compared to USD 100.1 billion in the previous year.
The current account deficit (CAD) too lowered in the first half (H1) of 2016-17 to 0.3
percent of GDP from 1.5 percent in H1 of 2015-16 and 1.1 percent in 2015-16 full year.
In the first half of 2016-17, Indias Foreign Exchange Reserves increased by USD 15.5
billion.
External Debt
Indias external debt declined from March 2016 by USD 0.8 billion to USD 484.3 billion in
September 2016.
The short-term debt that contributed major share in total external debt declined to 16.8
percent at end-September 2016 and foreign exchange reserves provided a cover of 76.8
percent to the total external debt stock.
Agriculture Sector Growth
As per the survey, the agriculture sector is estimated to grow at 4.1 percent in the current fiscal
as compared to 1.2 percent in 2015-16 due to better monsoon.
The total area coverage under Rabi crops was recorded to be 616.2 lakh hectare on
January 13, 2017 which is 5.9 percent higher than previous year.
Similarly the area coverage under wheat as on January 13, 2017 is 7.1 percent higher
while the area coverage under gram is 10.6 percent higher than that in the
corresponding week of last year.
Industrial Growth
The survey estimates a growth rate of the industrial sector to be moderate at 5.2 percent in
2016-17 from 7.4 percent in 2015-16.
Services Sector
The Service sector has been estimated to grow at 8.9 percent in 2016-17 which is almost similar
to that in 2015-16.
Social Infrastructure, Employment and Human Development
The survey highlighted that the Parliament has passed the Rights of Persons with Disabilities Act,
2016 to enhance the rights and entitlements of Persons with Disabilities. It envisages increasing
the reservation in vacancies in government establishments from 3 percent to 4 percent for those
persons with disability.
The Survey says Apparel and Leather industry have immense opportunity for job creation for
the weaker sections, especially for women and can lead to social transformation in the
country.
It points out that the capacity of the State to provide essential services such as health and
education to weaker section of the society is weak due to low capacity, with high levels of
corruption, clientelism, rules and red tapism.
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Lakshmi Vilas Bank Partners with Fisdom for Mission FINFIT

i. The private sector lender Lakshmi Vilas Bank in partnership with Bangalore based fin-tech
startup firm Fisdom, has launched a mobile application Mission FINFIT to offer the customers
of the bank financial planning and personal wealth management services based on Robo
advisory.
ii. The mobile app would enable the customer of the bank to plan their finances in an effective
manner using the online platform for wealth management thus encouraging them to invest
smarter.
Reserve Bank Lifts ATM Withdrawal Limits Effective From February 1

i. As per the announcement by Reserve Bank of India on January 30, 2017, the daily
withdrawal limit from ATM will be removed with effect from February 1, 2017. However the
weekly limit to withdraw Rs. 24000 from savings account will still continue.
ii. Earlier, the RBI had hiked the daily withdrawal limit from savings account on January 16, 2017
to Rs. 10000.
iii. Besides, the Central bank has also removed the cash withdrawal limit from current
accounts/ cash credit accounts/ overdraft accounts with immediate effect.
India Post Payment Bank Begins Pilot Service in Ranchi & Raipur
i. India Post Payments Bank (IPPB) started its operations on January 30, 2017 with the pilot
services launched in Raipur and Ranchi.
ii .The total paid up capital of the bank is Rs. 800 crore and the government has already
infused Rs. 275 crore.
iii. IPPB will offer an interest rate of 4.5 percent on deposits up to Rs.25,000; 5 percent
on deposits of Rs.25,000-50,000 and 5.5 percent on Rs.50,000-1 lakh.
iv. The main of IPPB is to encourage financial inclusion rather than promoting commercial
interests. It would work jointly with the Department of Post to offer the benefits of the
government schemes and financial services which is not easily available to rural people and
marginal population of urban area.
v. IPPB would enable 3 lakh postmen to aid in bank functions. Besides, 1000 ATMs of India Post
will be transferred to IPPB. The bank has made plans to launch 650 branches across the country
by September 2017.
FICCIs Economic Outlook Survey Projects GDP to grow 6.8 Percent in FY 17

i. Based on the latest Economic Outlook Survey report released by FICCI on January 30, 2017,
the Indias GDP is projected to grow 6.8 percent this fiscal which is 0.5 percent points less than
FICCIs previous estimate of 7.3 percent.
ii. FICCI conducted the last round of survey between December 2016 and January 2017 and
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collected responses from leading economists representing industry, banking and financial services
sectors.
iii. A slowdown in the estimate is due to the decrease in services and infrastructure sectors
post demonetization.
ICRA Estimates Banks Credit Growth to Remain Subdued at 5-6 percent in FY17
As per the report of the rating agency, ICRA, the bank credit growth rate is likely to float
between 5-6 percent in the current fiscal year.The reason cited includes weak loan demand as
the rate of return offered by debt market is better in comparison to banks.
Besides, the deposit rate was also projected to drop to 12 percent from the current 14.7
percent this fiscal ending March 2017 due to better cash flow in the system and cut in the deposit
rate by the banks.
Banking & Finance Awareness February 2017
Indias fiscal deficit reaches 94% of the budget estimate in December

i. Fiscal deficit in the first nine months of 2016-17 touched 93.9 per cent of the Budget target
against 87.9 per cent for the same period a year ago.
ii.In value terms, the April-December fiscal deficit stood at Rs 5.01 lakh crore, or 93.9 per cent, of
2016-17 Budget estimates (BE).
iii. The fiscal deficit stood at 87.9 per cent in the corresponding nine months a year ago, as per
2015-16 Budget estimates.
HSBC Estimates Indias GDP Growth at 7.1% in 2017-18

i. HSBC has estimated the GDP growth rate of India at 7.1 percent for the year 2017-
18 which is up from the 6.3 percent in the year 2016-17.
ii. The main reason for this increase is cited to sufficient remonetization by April end, thus
boosting the consumption level in the country to normal. Besides, the schemes announced in
Budget 2017-18 are also seen to play major role in the growth rate.
iii. Besides, the investment is projected to remain weak within a range of 7.5-8 percent.
NABARD Sanctions Rs 157 crore Loan to Haryana for Drinking Water Project
i. National Bank for Agriculture and Rural Development (NABARD) on February 2, 2017
sanctioned a loan amount of Rs. 157 crore to the Government of Haryana to undertake drinking
water project.
ii. Under the project, the government would undertake drinking water supply scheme in 84
villages of districts Palwal and Faridabad.
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iii. As per the project, portable drinking water would be supplied in selected villages in blocks
Prithla, Palwal and Ballabhgarh from Yamuna flood plain by constructing ranney wells and deep
tubewells.
iv .The project is likely to benefit 3,06,814 persons. The loan amount has been sanctioned from
the Rural Infrastructure Development Fund (RIDF).
v. Till date NABARD has provided Rs 5,794 crore assistance to Harayana government under
RIDF since its inception in 1995-96.
India and World Bank signs Financing Agreement Worth US$ 201.50 Million for TEQIP
III
i. The Government of India has signed a USD 201.50 million credit agreement with
the World Bank on February 1, 2017 to improve the quality and equity of engineering education
across several states in India.
ii. The agreement was signed by Raj Kumar, Joint Secretary, Department of Economic Affairs,
Ministry of Finance, on behalf of the Government of India and Junaid Ahmad, Country
Director, World Bank India, on behalf of the World Bank.
iii. The agreement signed was for the third phase of the Technical Education Quality
Improvement Project (TEQIP III).
iv. The project aims to strengthen engineering education in low-income group, hill states and
states of the North East. TEQIP III will support nearly 200 engineering education institutes across
India to produce higher quality engineers.
Gross NPA of PSBs Strikes 9.83% in FY16 and 11.82% by September 2016
i. As per the data released by the Minister of State for Finance Santosh Gangwar in the Lok
Sabha on February 3, 2017, Public Sector Banks (PSBs) witnessed a bad loan at 9.83percent of
the gross advances in the financial year (FY) 2015-16, while the bad loans for Private sector
banks were capped at 2.70 percent of the advances.
ii. For the FY16, PSBs had gross advances of Rs. 51,04,915 crore. Out of this Rs 5,02,068 crore
was categorized as gross non-performing assets (GNPA) which accounts for 9.83 percent
iii. In case of the Private sector bank of the total Rs 17,91,681 crore gross advances made in
FY16, only Rs 48,380 crore were gross NPA means only 2.70 percent.
iv. Further, till September 2016, PSBs gross NPA hiked to Rs 5,89,502 crore which is 11.82
percent of the total advances made till date. Besides, when the gross NPAs were combined with
the restructured advances, they rose to 15.88 percent as on September 30, 2016.
Reserve Bank of India Allows NRIs access to ETCD market

i. The Reserve Bank of India (RBI) on February 2, 2017 permitted the NRIs to have access to
the exchange traded currency derivatives (ETCD) market. This will enable the NRIs to hedge
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the currency risk due to making investment in India.

ii. Till date NRIs were allowed to hedge their currency risk through Over-The-Counter (OTC)
transaction with the Authorized Dealer (AD) banks.
iii. Access to ETCD market will provide them an additional hedging option though subjected to
certain conditions.
iv .Firstly NRIs would have to nominate a bank that will monitor and report the position of the
NRI concerned in the OTC and ETCD segments.
RBI Directs Banks to Waive off Transactions Charges and Decrease Interest Rate for
Credit Cards
i. The Reserve Bank of India has directed banks on February 3, 2017 to waive off transaction
charges and lower interest rates on credit cards as a move to encourage digital transaction.
ii. RBI has decided that customers would not be levied any charges by banks and prepaid
payment instrument issuers for transactions up to Rs. 1,000 settled on Immediate Payment
Service (IMPS), Unstructured Supplementary Service Data (USSD) and Unified Payments Interface
(UPI) till March 3, 2017.
iii. It has also directed banks to lower the interest on credit card dues. Interest rates are
determined by banks with the approval of their respective Board of Directors subject to regulatory
guidelines on the interest rate on advances issued by RBI from time to time.
iv. Transaction settled on IMPS and UPI above Rs. 1000 would not be levied any fee charge
however the service tax will be charged at actual. For USSD transactions above Rs. 1,000 a
further 50 paise discount is provided.
HDFC Bank Hikes Cash Transaction Fees on Savings Accounts

i. Indias second largest private sector bank, HDFC, has planned to increase the fee for savings
account holders doing cash transaction in order to encourage digital mode of payment.
ii. The bank on has reduced the third party transaction limit to Rs. 25000 a day. Earlier this limit
was Rs. 50000. Besides, it has also reduced the number of free transactions at branches from 5
to 4.
iii. The fee for non free transaction has been increased to Rs. 150. For the free transaction, the
bank has limited the cash transaction to Rs. 2 lakh, above which customers will have to pay a
minimum of Rs. 150 or Rs. 5 per thousand.iv. The free transaction for non-home branches is
only Rs. 25,000 after which fees set in at the same level would be levied.The applicable
restrictions would come into effect from March 1, 2017.
Bank of Maharashtra ties up with Cigna TTK

i. Public sector lender Bank of Maharashtra has partnered with insurance company Cigna TTK
Health to market the insurers products in the banks branches across the entire country
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ii. Under the agreement, the bank will offer the all of Cigna TTKs superior health insurance
products to its 2 crore customers through its network of over 1,896 branches, its 14,000 bank
employees across the country as well as through its digital platforms.
Axis Bank ties up with Earthport

i. Indias third largest private bank, Axis Bank has tied up with Earthport Plc, a cross-border
payment network, to enable faster outbound cross-border payments for its customers through
Earthports state-of-the-art global payments network.
ii. Axis Bank has become the first bank in India to connect with Earthports global payments
network, which spans over 60 countries.
Ujjivan Small Finance Bank Starts Pilot Operation in Bengaluru

i. The Ujjivan Small Finance Bank officially started its operation on February 6, 2017 with 5
pilot branches in Bengaluru. Samit Ghosh is the MD and CEO of the Ujjivan Small Finance Bank.
ii. The five pilot branches of the Ujjivan SFB would offer full services to its customers. The Small
Finance Bank will test its technology, channels, people and processes for a period of one month as
a part of its pilot launch.
iii. The Bank aims to launch about 14 branches by March 2017 and extend services across 457
branches in 24 states in a planned and phased manner over the next few months.
PNB Housing Finance limited & CREDAI-West Bengal Signs MoU to train construction
workers in West Bengal
i. The PNB Housing Finance Limited (PNBHFL) and CREDAI West Bengal, has signed an MoU
on February 6, 2017, wherein CREDAI-Bengal would train 1000 construction workers in
Kolkata and nearby villages.
ii. The MoU aims to address the need to speed up the construction pace for quicker delivery
and hand-overs.
iii. For providing the training CREDAI-Bengal would set up permanent skill development centres in
Medinipur and Murshidabad. These places have huge concentration of construction workers.
iv. Half of the training cost would be borne by the West Bengal State Government and PNBHFL
while remaining half would be borne by the developer of the construction site from where workers
would be trained.
v. CREDAI would provide training that would include both Classroom and On the job
training. It will provide training in collaboration with National Skill Development council Bengal.
IDFC Bank, IndiaLends tie-up for loan services to 1st timers

i. Private sector lender IDFC Bank has collaborated with fintech startup IndiaLends to enable
first time borrowers who do not have a credit history to take loans.
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ii. Loan requests by salaried applicants without credit history will now be processed on a real time
basis. The unique solution is being offered through a tie-up with IndiaLends, a financial technology
startup.
Sixth Bi-monthly Monetary Policy Review of RBI for 2016-17

The Reserve Bank of India announced its sixth bimonthly monetary policy review for
2016-17, on February 8, 2017 and has maintained its status quo with key policy rate unchanged.
On the basis of an assessment of the current and evolving macroeconomic situation in
the country, the Monetary Policy Committee (MPC) decided to keep the key rates
unchanged.
The RBI Monetary Policy Committee (MPC) voted 6-0 in favor of the key rates, which is
the third unanimous decision in a row since it was first set up in September 2016.
The next meeting of the MPC under the chairmanship of RBI governor Urjit Patel is
scheduled on April 5 and 6, 2017.
Key Policy Rates
1. Repo Rate under the liquidity adjustment facility (LAF):6.25 percent (Unchanged)
2. Reverse Repo Rate under the LAF: 5.75 percent (Unchanged)
3. Marginal Standing Facility (MSF): 6.75 percent (Unchanged)
4. Bank Rate: 6.75 percent (Unchanged)
5. Cash Reserve Ratio (CRR): 4 percent (Unchanged)
6. Statutory Liquidity Ratio (SLR): 20.50 percent (Unchanged)
RBI Key Projection
Inflation
RBI had projected the headline inflation at 5 percent in Q4 of 2016-17 in December.
In sixth bimonthly monetary policy review, RBI has projected the inflation to be in the range
of 4% to 4.5% in the first half of 2017-18 and in the range of 4% to 4.5% in the second half
of 2017-18.
The MPC aims to achieve consumer price index (CPI) inflation at 5 percent by Q4 of 2016-17.
GDP Growth
The RBI has projected GDP growth in the current fiscal at 6.9 percent. It expects the growth to
recover sharply in 2017-18 and reach 7.4 percent.
GVA Growth
RBI has projected the GVA growth for 2016-17 at 6.9 percent from the existing 7.1
percent.
Growth is expected to recover sharply in 2017-18 and accordingly, GVA growth for
2017-18 is projected at 7.4 percent.
Current Account Deficit
RBI has proposed the current account deficit (CAD) to remain below 1 percent of GDP in 2016-17.
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Cash withdrawal Limit

RBI has announced that from March 13, 2017, there would be no limit on cash withdrawal.
Besides, with effect from February 20, the withdrawal limit from savaing accounts will
increase from Rs 24,000 a week to Rs 50,000 a week.
RBI to Set up Enforcement Department to Monitor Bank
The Reserve Bank of India on February 8, 2017 informed about its decision to set up a
separate Enforcement Department to effectively monitor bank in case they violate regulations.
The Enforcement Department will start operations from April 1, 2017.
Presently, each department of RBI takes action against banks for violations of rules.
With Enforcement Department, a centralized department would be set up to deal with
the issue.
Besides, RBI has also proposed to set up a separate committee on cyber security.
The committee has been set up based on the recommendations of the expert panel on
information technology examination and cyber security headed by Meena Hemachandra
Federal Bank Inks Pact with Commodity Online for Loans Against Warehouse Receipts
i. Private sector lender Federal Bank Limited has partnered with Commodity Online, a leading
online data and information portal for the distribution of loans against warehouse
receipts and collateral management services across the country.
ii. Commodity Online will launch an agri-commodity financing platform through its
portal www.commodityonline.com.
iii. The partnership will enable Federal Bank to digitally provide financing for agri-commodities
with collateral management across India.
iv .The farmers and traders with the help of the portal can track commodity markets and
warehouses online as per their convenience and eventually get financing for their commodities
quickly.
HDFC & Kotak Mahindra Bank Goes Live on Bharat Bill Payment System
i. The Private sector lenders HDFC Bank started operating its Bharat Bill Payment System
(BBPS) on February 7, 2017 to ease the bill payment service for the customers.
ii .Along with HDFC, Kotak Mahindra Bank also went live with the BBPS service.
iii. BBPS was introduced by National Payments Corporation of India (NPCI). It is a
centralized payment platform that offers speed and convenience to pay all types of bills.
iv .A customer can pay multiple bills from a single platform without the need of visiting multiple
websites or issuing individual cheques, or also registering billers with her bank for standard
instructions for debit.
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v. The BBPS offers integrated and interoperable bill payment service with security, certainty and
reliability of transactions.
vi. The service is available in multiple payment modes, online and through a network of agents.
An instant confirmation is generated for the bill payments. The BBPS will transform the society
from cash to electronic payment system, making it less dependent on cash.
Bank of Baroda & IFFCO Signs Pact to Launch Co-Branded Debit Card
i. Fertiliser major IFFCO and Bank of Baroda have signed an MoU on February 7, 2017 to
launch co-branded debit cards for farmers in a bid to promote cashless transactions in the rural
area.
ii. The MoU was signed by Yogendra Kumar, General Manager (Marketing), IFFCO and GB Panda,
General Manager (government relationships), Bank of Baroda.
iii .Under the MoU, Bank of Baroda will open Aadhaar-enabled accounts of farmers and issue
co-branded debits card to the specified farmers with overdraft facility of Rs 2,500 per card.
iv. Besides, IFFCO would take the guarantee of the total outstanding amount of any of the
farmers default due to various reasons.
v. The MoU aims to issue 2 lakh co-branded debit cards to selected farmers on the basis of the
recommendation of its authorised representative. Initially, the co-branded cards will be given to
the farmers in Uttar Pradesh, Bihar, Rajasthan and Madhya Pradesh after which rest of the states
would be covered.
Bank of America opens Automated Branches in Select Markets

i. Bank of America Corp has opened three completely automated branches over the past
month with no working employee wherein customers can use ATMs and have video conferences
with employees at other branches.
ii. Many US banks are making efforts to reduce its overall branches number to cut costs even as it
opens new branches in select markets.
Government Sells 2% stake in ITC to Raise Rs. 6,690 Crore

i. As a part of its disinvestment plan for 2016-17, the central government sold 2 percent of its
stake in ITC to Life Insurance Corporation of India (LIC) on February 7, 2017 and earned Rs
6,690 crore.
ii. Held under the Specified Undertaking of the Unit Trust of India (SUUTI), the stake was
sold at Rs 275.85 per share through block deals.
Cabinet approves Acquisition of Subsidiary Banks by State Bank of India

The Union Cabinet approved the merger of the State Bank of India with its 5 subsidiary
banks namely State Bank of Bikaner and Jaipur; State Bank of Hyderabad; State Bank of Mysore;
State Bank of Patiala and State Bank of Travancore.
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Besides, the Cabinet has also approved the introduction of a Bill in Parliament
to abolish the State Bank of India (Subsidiary Banks) Act, 1959 and the State Bank
of Hyderabad Act, 1956.
BoB to Finance MSME in Diamond Sector at Concessional Rates

i. Bank of Baroda is planning to launch a supply chain financing product for the Micro, Small
and Medium Enterprises (MSME) in the diamond industry to boost their existence in the
sector.
ii .The bank will begin the supply chain financing on pilot basis in Surat. Cutting and polishing
units, which procure roughs from large companies and supply finished products back, will be
provided finance at a competitive rate of interest.
iii. This move is expected to give a boost to MSMEs as well as the corporate segment within the
diamond industry.
Government to launch Indradhanush 2.0 for Recapitalization of PSBs

i. Union Government has decided to launch Indradhanush 2.0 for recapitalisation of public
sector lenders so that the banks remain solvent and fully comply with the global capital
adequacy norms namely Basel-III.
ii. The Indradhanush 2.0 programme will be finalised by Reserve Bank of India (RBI) after
completion of Asset Quality Review (AQR) being undertaken and is likely to be completed by
Centre Allocates Rs. 500 crore to India Post Payments Bank for FY18
i. Government has allocated an amount of Rs 500 crore to India Post Payments Bank for the
financial year 2017-18 to help it in setting up 650 branches across country by September 2017.
ii. As per Output-Outcome Framework for Schemes 2017-18 for the Department of Posts
released on February 13, 2017, out of the allocated amount, Rs. 125 crore has been allocated as
capital infusion into corporate entity for India Post Payments Bank and Rs 375 crore as grant in
aid to India Post Payments Bank (IPPB).
Nomura Projects Indias GDP at 5.7 % in January-March quarter

i. According to the global financial services major Nomura, the GDP growth of India is estimated
to remain low at 5.7 percent in the January-March quarter due to the effect
of demonetization of high value currency.
ii. Nomura expects the economic growth to slow from 7.3 per cent GDP growth in the July-
September 2016 to 6 percent in the October-December 2016 quarter and further to 5.7 per cent
in the first quarter of 2017 ending March 2017.
World Bank Group, IFC to Conduct Training Programmes for NBFCs

i. The International Finance Corporation (IFC), a part of the World Bank Group has
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partnered with Finance Industry Development Council (FIDC) to conduct training

programmes for Non Banking Finance Companies (NBFCs).
ii. For this two engagement letters have been signed between IFC and FIDC on February 13,
2017 in New Delhi between Jun Zhang, IFC India Country Head and Raman Aggarwal,
Chairman of FIDC, a representative body for NBFCs, especially those engaged in asset financing.
iii. The training programmes will focus on movable asset financing and commercial credit
reporting. It would be held at various centres across the country under the guidance of leading
consultants from the World Bank Group.
IDFC Asset Management Company launches Open-Ended Fixed Income Fund

i. IDFC Asset Management Company launched an open-ended fixed income fund
named Credit Opportunities Fund on February 13 in Mumbai which is expected to raise the
revenue of the company in the range of Rs 300 crore-500 crore within the NFO period itself.
ii. A new fund offer (NFO) is the first time subscription offer for a new scheme launched by the
asset management companies (AMCs). A new fund offer is launched in the market to raise capital
from the public in order to buy securities like shares, govt. bonds etc. from the market.
iii. The Credit Opportunities Fund will open for subscription on February 14 and close on February
27. It will reopen for continuous sale and repurchase from March 6, 2017.
HDFC Life Launches Pragati Plan For Low Income Group

i. Life insurance firm, HDFC life launched a traditional life insurance plan, Pragati, on February
15, 2017 for low income group people.
ii. The plan has been designed especially to empower low income families by making the plan
available at affordable rate to every person who has the desire to secure his family.
iii. Pragati will offer dual benefit. Firstly a systematic savings with guaranteed premium returns
and secondly a wholesome life protection making it an ideal financial product for every Indian
household.
RBI will Reimburse Banks MDR Charges Effective January 1, 2017

i. The Reserve Bank of India has decided to reimburse banks Merchant Discount Rate
(MDR) charges on debit cards used by citizens for payment with effect from January 1, 2017.
ii .In December 2016, the government had decided to absorb the merchant discount rate (MDR)
charges in respect of debit card transactions for making payments to it to encourage people to
use digital payments post demonetisation.
iii. RBI has directed the banks to forward their claim for reimbursement of MDR along with
statutory auditors certificate to RBIs Nagpur office on a quarterly basis.
iv .For the quarter ending March 2017, the banks have been asked to file claim by April 30.
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Citi Bank launches instant chat service for customers

i. Mumbai based Citi Bank has launched instant chat services for customers named Citibank
Online (CBOL) on February 16, 2017. With this India become the first country in Asia Pacific
within the Citi network to have this kind of service.
ii. CBOL will focuses on resolving queries instantly regarding cards,loans, domestic and non-
resident accounts, and online transactions.
RBI Doubles Gold Loan Limit for Regional Rural Banks to Rs. 2 lakhs
i. The Reserve Bank of India increased the gold loan limit for RRBs (Regional Rural
Banks) to Rs 2 lakh from the current Rs 1 lakh on February 16, 2017 to help the farmers and
artisans have access to credit who are willing to pledge gold as collateral.
ii. The limit has been doubled for the loans not exceeding 12 months from the date of sanction.
Name and Shame Campaign of Catholic Syrian Bank Starts Paying Dividends
i. The Name and Shame Campaign initiated by Catholic Syrian Bank Employees and Retirees
against willful Defaulters in Kerala have started paying dividends.
ii. As per the bank, of the 30 defaulters identified with dues of more than Rs. 50 lakh each,
about 10 borrowers have approached the bank with settlement proposals and the bank has also
received firm assurance for payments worth Rs. 25 crore from defaulters.
Government Increases the Cash Credit Limit For MSMEs To 30 %

i. The Union government has increased the Cash Credit (CC) limit for Micro, Small and
Medium Enterprises (MSMEs) to 30 percent of turnover from the existing 20 percent to
encourage them to conduct businesses digitally.
ii. Through digital means of conducting the business, the balance sheet of companies would be
clean and this would help MSMEs to get loans from banks and promote Ease of Doing Business.
iii.Presently the taxes for MSMes are calculated at 8 percent for revenue of up to Rs 2 crore. With
digital transaction, tax liability will be reduced from 8 percent to 6 percent.
Canara Bank Inks MoU with HRD Ministry to Start Higher Education Financing Agency
i. Bangalore based Public sector Canara Bank has signed a Memorandum of Understanding
(MoU) with the Human Resource Development (HRD) Ministry on February 17, 2017 to
operationalize the Higher Education Financing Agency (HEFA).
ii. The establishment of the Higher Education Financing Agency (HEFA) was approved by the
Union Cabinet in September 2016.
iii. Through this MoU, HRD Ministry and Canara Bank will jointly promote the HEFA with an
authorised capital of Rs. 2,000 crore.
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Mastercard to Provide Payments Processing Solution for Airtel Payment Bank

i. Leading global payments and technology firm, Mastercard is set to provide payments
processing solution to Airtel Payments Bank.
ii. The payment processing platform will enable the Airtel Payment Bank in providing various
payment services like switching, card management along with support for reconciliation and
dispute management processes.
iii. As per the announcement by Mastercard on February 17, 2017, Mastercard and Airtel
Payments bank have also launched Indias first online debit card along with a prepaid card,
both of which is accessible through the Myairtel App.
Karnataka Bank Launches National Pension System in Mangaluru

i. Mangaluru based private sector lender Karnataka Bank Ltd launched National Pension
System (NPS) at its corporate office in Mangaluru on February 16, 2017.
ii. Aim: To provide financial security at old age by giving regular income in the form of pension.
iii. Under the scheme, one can contribute to NPS while earning and eventually start receiving
pension on his/her attaining the age of 60 years to meet their financial needs.
iv .To avail the benefit, any individual between the ages 18-60 years can register their name
with the bank branch to contribute and to get pension benefit.
SBI ties up with Greenply to offer financial services to its dealers

i. Mumbai based State Bank of India(SBI) has signed Memorandum of Understanding(MoU)
with Indias largest interior infrastructure company Greenply Industries to grow its channel
financing business of Greenply Industries on electronic platformon February 18, 2017.
ii. SBI will extend financial services to Greenply dealers to grow further on a very competitive
pricing.
iii. It has also taken initiative to stop use of paper from its branches for end-to-end digitisation.
RBI Permits Multilateral Financial Institutions to Invest in Masala Bonds

i. The Reserve Bank of India (RBI) has permitted Multilateral Financial Institutions (FIs) to
invest in rupee denominated bonds commonly known as Masala Bonds issued by Indian
entities.
ii. As per the notification by RBI on February 16, 2017, the move will enable the Indian entities
issuing rupee denominated bonds abroad to have wider choice of investors.
OMA Emirates Enters Indian Market, Acquires MobiSwipe

i. In an effort to extend the services to neighboring countries and enhance market share,
leading United Arab Emirates (UAE) payments solutions provider OMA Emirates has entered
the Indian Market, beginning with the acquisition of mobile point of sale (mPOS) firm MobiSwipe.
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ii. MobiSwipe allows merchants to accept payments via Credit and Debit card by using the mobile
application. The acquisition will help MobiSwipe to be offered in countries outside India also.
iii. As per the announcement made by OMA Emirates on February 17, 2017, the company will
begins the Indian operations from Mumbai and eventually plans to open offices in other parts of
the country beginning with Metros and Tier 1 cities.
iv. Presently, OMA Emirates have presence in Middle East, Europe and select parts of Asia. In
India, the firm will begin with providing services like business development, sales and marketing.
v. The aim of OMA Emirates is to increase its sales and market share in by extending its
operations to neighboring countries. It will also help to increase the product line of the firm by
way of partnerships, alliances and investments.
Oriental Bank of Commerce Launches Mobile Wallet Batuaa

i. The Oriental Bank of Commerce (OBC) launched a series of digital offerings for its customers
on February 19, 2017 which also marks the 75th Foundation Day of the bank.
ii. The OBC bank introduced a new version of mobile banking in the form of mobile app under the
name Oriental Batuaa to provide banking services through app.
iii. Besides, OBC also launched two new RuPay cards, Oriental Premium card and Oriental
Prepaid Card.
iv. Oriental Premium card is a RuPay based Platinum international debit card with airport lounge
access. Oriental Prepaid Card is a RuPay card for individuals and corporates.
v. The bank also launched two MSME schemes Oriental Sanjeevani and Oriental Budget
Hotels and Restaurants.
vi. Oriental Sanjeevani is a specialised scheme for doctors for setting up new hospitals and clinics.
The Oriental Budget Hotels and Restaurants scheme is for individuals, proprietors, companies etc
for setting up new hotels, restaurants, lodges, motels etc.
GST Council Approves Law to Compensate States for Revenue Loss

i .The GST Council approved a law to compensate states for any loss of revenue from the
implementation of the Goods and Service Tax (GST) in the first five years, on February 18,
2017 at the 10th GST Council Meet at Udaipur.
ii. The compensation bill will be taken to Parliament in 2nd half of Budget Session to be held
from March 9, 2017.
iii. The next meeting of the council will be held on March 4-5, 2017 at New Delhi and will aim
to approve the draft laws on Central GST, Inter State GST as well as State GST.
SBI Rebrands Corporate Website as bank.sbi

i. The countrys largest lender State Bank of India (SBI) rebranded its
corporate website as bank.sbi from the earlier sbi.co.in on February 19, 2017.
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ii. Now bank.sbi is the highest domain protocol commonly known as generic top level
domain (gTLD).
iii. With this, SBI has become the first banking organization in India to adopt gTLD for its internet
presence.
iv .The adoption of gTLD will enable SBI to use its corporate name .sbi as their websites top-level
identifier instead of using .com or .co.in as domains.
SEBI Approves IRB InvIT Fund to Raise Fund Through IPO

i. Market regulator Securities and Exchange Board of India (SEBI) has given its approval
to IRB InvIT Fund, to raise Rs 4,300 crore through an initial public offering (IPO).
ii. IRB InvIT Fund is an investment trust sponsored by IRB Infrastructure Developers Limited,
an Indian highway construction company headquartered in Mumbai.
iii .Infrastructure Investment Trusts (InvITs) are like mutual fund schemes which pool in money
from individual investors for investing in infrastructure initiatives.
Karnataka Bank Signs MoU with Daimler India

i. Magaluru based Karnataka Bank Ltd has signed a Memorandum of Understanding
(MoU) with Daimler India Commercial Vehicles Pvt Ltd (DICV) on February 20, 2017 to
extend finance to customers for the purchase of commercial vehicles manufactured by the
company.
ii .The deal will benefit the customers belonging to sectors such as MSME (Micro, Small and
Medium Enterprises) to purchase commercial vehicles.
EPFO introduces Single Page Composite Claim Form

i. Employees Provident Fund Organization (EPFO), the retirement body of India introduced single
page composite claim form that enable its subscribers to withdraw money from their PF account at
an ease.
ii. The form does not require employers attestation, but the facility can be availed only for
those subscribers whose Aadhaar number and bank account details are seeded with their
Universal Account Number (UAN).
iii. The new single-page form can be submitted with the attestation of employers. In this new
form, no revenue stamp of Re 1 is required in both the cases whether you are filling Aadhaar-
based composite form or the non-Aadhaar based composite form.
Bharat Financial Launches Instant Microloan Facility

i. Hyderabad based non-banking finance company Microfinance institution Bharat Financial
Inclusion Ltd launched an instant loan approval at a village near Bassi in Jaipur district,
Rajasthan
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ii. The objective of this initiative to help rural areas embrace cashless transactions. The loan
amount will be deposited directly to the loanees bank account.
iii. The loan facility based on a three-step verification process of Aadhar-based eKYC, credit
bureau authentication and eSign and non collateral loans up to Rs 60,000 for one year to rural
women.
iv. It will be rolled out by June 2017 in all microfinance companys nationwide network with
several being in Rajasthan, Bihar and Delhi.
SIDBI, Vijaya Bank combine to provide concessional loans to micro, small units
i. Lucknow based Small Industries Development Bank of India (SIDBI) has signed a
Memorandum of Understanding (MoU) with Bengaluru based Vijaya Bank for providing
concessional finance to micro and small enterprises (MSEs).
ii. Aim: To promote and strengthen the units in the MSE segment
iii. The MoU also expect joint financing/co-financing of MSMEs for meeting capital expenditure
under the SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises
scheme at concessional rate of 9.60 per cent, along with working capital from Vijaya Bank.
ICRA says GVA growth to decline by 70 bps to 6.2% in Q3

i. Guragon based Domestic rating agency ICRA reported that the gross value added (GVA) is
set to slip to 6.2 per cent in the third quarter from 6.9 per cent and GDP growth will decline
to 6.5 per cent from 7.2 per cent.
ii. Services sector is expected to ease to 8 per cent from 9.1 per cent in line with moderation in
fuel demand following the note ban.iii. Industrial growth is set to more than halve to 4 per
cent from 8.6 per cent, led by manufacturing, construction and mining and quarrying.
iv. The annual growth of systemic deposits improved to 15.2 per cent as of December 23, 2016
from 10.2 per cent.
Oriental Bank Ties Up With Chola MS To Sell Insurance Products

i. Haryana based Oriental Bank of Commerce has signed a corporate agency agreement with
Chennai based general insurance provider Cholamandalam General Insurance Company for
distribution of insurance products on February 22, 2017
ii.The partnership will benefit our customers and through this ties up
iii. The insurance products includes motor, health, home and travel
Indias GDP projected to slow to 6.6% post-demonetisation, says IMF

i .International Monetary Fund come up with Indias growth projection which predicted slow 6.6
per cent in 2016-17 fiscal due to temporary disruptions caused by demonetisation.
ii. The IMF has noted that demonetisation would have only short term impact on the economy and
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it would bounce back to its expected growth of more than 8% in the next few years.
iii. The IMF said in its annual country report on India mentioned that growth is projected to slow
to 6.6 per cent in FY2016/17, then rebound to 7.2 per cent in FY2017/18, due to temporary
disruptions, primarily to private consumption as a result of cash shortage
India Signs $375 Mn Loan Pact with ADB for Industrial Corridor
i. The Government of India and the Asian Development Bank (ADB) signed a 375-million-
dollar loans and grants on February 23, 2017 in New Delhi to develop 800-km
Visakhapatnam-Chennai Industrial Corridor.
ii. The project is the first phase of a planned 2,500kilometer long East Coast Economic
Corridor (ECEC) having total cost of 846 million dollars.
iii. The MoU was signed between LB Sondjaja, Deputy Country Director of ADBs India Resident
Mission on behalf of ADB and Raj Kumar, Joint Secretary (Multilateral Institutions), in the Ministry
of Finance, on behalf of Government of India.
Government to Provide Rs. 3000 crore Bailout Package to IDBI Bank

i. The government has announced to bailout IDBI Bank with Rs. 3,000-crore capital infusion to
enable the bank to have better capital-adequacy ratio and further enhance credit growth.
ii. The financial assistance will help the bank to maintain stability.
iii. IDBI Banks lending portfolio is mostly in corporate segment and that is one of the major
reasons for increase in its bad loans.
Dena Bank Unveils RFID-Enabled Cards For Better Customer Service

i. Dena Bank has unveiled a Radio Frequency Identification (RFID) enabled
banking card on February 23, 2017 at its Mumbai branch.
ii. The RFID card will help the branch manager to identify a valued customer entering the bank
having RFID card by displaying the complete information about that customer on the managers
desktop.
iii .The facility will help the bank branch to take better care of the clients requirement and offer
the services promptly.
iv. The RFID card is being introduced in select branches of Dena bank with the first branch with
RFID enabled technology has been launched at the Dena Bank JVPD branch, Mumbai.
UBI ties up with IRCTC to launch railway booking facility

i. Public sector banks United Bank of India (UBI) has signed agreement with Indian Railway
Catering and Tourism Corporation(IRCTC) for railway ticket booking facility.
ii. This new facility was available from February 21 2017
iii. Now UBI customers can now book railway tickets seamlessly through IRCTC website using
the banks debit card.
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NCAER Lowers Indias GDP Growth Forecast to 6.9 per cent for FY17
i. An economic think-tank, National Council of Applied Economic Research (NCAER) has
lowered Indias GDP growth to 6.9 percent for the fiscal 2016-17 compared to previous
estimation of 7.6 percent.
ii. The decline in the growth forecast is based on the demonetization effect.
iii. According to NCAER, the growth rate would rebound to 7.3 percent for 2017-18.
iv .Besides, it also predicted the Gross Value Added (GVA) at basic price would grow at 6.3
percent in 2016-17 and 7 percent in 2017-18.
v .Real Agriculture GVA is estimated to grow at 3.7 percent, Real Industry GVA at 5.5 percent and
Real Services GVA at 7.3 percent in 2016-17.
vi. Wholesale Price Index (WPI) inflation is projected at 3.6 percent for 2016-17. However, the
inflation is projected to accelerate in 2017-18 due to rising crude oil inflation.
India To Remain Fastest Growing Economy Among G-20 Nations Despite

Demonetization: Moodys
i. Moodys Investors Service report released on February 23, 2017 states that despite the
currency demonetisation drive by Government of India, the country will continue to be
the fastest growing economy among G-20 countries in 2017.
ii. As per the report titled Modest Acceleration in the Global Economy, but Shifting US
Policies Inject Uncertainty, India is expected to have the fastest-growing economy among all
G-20 countries with growth rate at 7.1% for 2017, though lower as compared to previous
expectation of 7.5%.
iii. With respect to the global growth, G-20 countries is expected to have a growth rate of 3
percent in 2017 and 2018 from 2.6 percent in 2016.
DIPP Reports FDI Inflow Grows by 18% to USD 46 billion in 2016

i. According to the data by the Department of Industrial Policy and Promotion (DIPP),
the Foreign Direct Investment (FDI) in India grew 18 percent during 2016 to attract $46
billion as compared to $39.32 billion in 2015.
ii. The main sectors which attracted the maximum foreign inflows include services, telecom,
trading, computer hardware and software and automobile.
iii. Besides, the major FDI contributing countries were Singapore, Mauritius, the Netherlands
and Japan.
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Foxconn and SoftBank Forms $1.2B Joint Venture

i. Japans SoftBank Group Corp (SBG) on February 24, 2017 entered into a definitive agreement
with Foxconn Technology Group (Foxconn) of Taiwan to establish a joint venture through
Softbank Group Capital Apac Pte Ltd at an estimated cost of $1.2 billion.
ii. Softbank Group Capital Apac Pte Ltd is a wholly owned subsidiary of SBG. The deal is expected
to take effect on March 1.
iii. Under the agreement, Foxconn would buy 54.5% stake in SoftBank Group Capital Apac Pte
Ltd for $600 million while the remaining would be controlled by SBG.
iv. Under the partnership, investments would be made in initiatives that will integrate SoftBanks
expertise in investments and the Foxconns manufacturing and technology services to maximize
the profitability of the venture. Foxconn will also be responsible for management of the operation
as a whole
Government Issues Sovereign Gold Bonds 2016-17-Series IV

The Government of India launched the 7th tranche of the Sovereign Gold Bonds on February 27,
2017 and it will be the last offering for 2016-17.The Sovereign Gold Bonds 2016-17Series
IV will be issued by the Reserve Bank of India (RBI) on behalf of Government of India.
Applications for the bond will be accepted from February 27, 2017 to March 03, 2017 and the
Bonds will be issued on March 17, 2017.
Features of the Bond
i. The bonds will be issued in denominations of one gram of gold and multiples thereof and be
available in both demat and paper form.
ii .Minimum investment in the bonds shall be 1 gram per person while maximum limit of 500
grams per person per fiscal year.
iii. Price of the bonds shall be fixed in Indian rupees on the basis of simple average of closing
price of gold of 999 purity as published by the India Bullion and Jewellers Association Limited
(IBJA) for the week preceding the subscription period. The issue price shall be Rs 50 per gram
less than the nominal value.
iv. The bonds shall bear a fixed interest rate of 2.50 percent per annum on the amount of
initial investment.
v. Payment shall be accepted in Indian rupees through cash up to a maximum of Rs 20,000 or
demand drafts or cheque or electronic banking.
vi .The holding period of the bond has been fixed for a period of 8 years. Pre-mature
redemption of the bond is also permitted from 5th year of the date of issue on the interest
payment dates.
SIDBI sanctions Rs.1,112 crore this Fiscal to Startups

i. An expert committee set up by SIDBI, Venture Capital Investment Committee (VCIC) has
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sanctioned Rs 300 crore to fund managers who would invest in startups, thus taking the total
sanctions in 2016-17 to over Rs 1,100 crore.
ii. In its 7th meeting on the February 11, VCIC examined requests from 11 fund managers and
cleared sanction requests from 9 Funds aggregating Rs 300 crores.
iii .SIDBIs VCIC comprises of former Infosys CFO Mohandas Pai, former Nasscom chief Kiran
Karnik, Indian Angel Network Founder Saurabh Srivastava, Founder ofInfo EdgeSanjeev
Bikhchandani, among others..
iv. During fiscal year 2014-15 sanctions were made to 11 funds (Rs 314 crores) while in 2015-16
sanctions were made to 16 funds (Rs 607 crores).
v. During the current financial year, till date Rs 1,112 crores has already been sanctioned to 30
funds
Apollo Munich and Dena Bank Enters Into Bancassurance Tie-Up

i. In order to expand its business across the country, Apollo Munich Health Insurance
Company has tied up with Mumbai-based Dena Bank on February 27, 2017 to provide its
insurance product to the large customer base of the bank.
ii .Under the tie-up the bank will distribute customised Apollo Munich Health insurance and
personal accident policies to the banks 20 million customers across India.
iii. Apollo Munich Health has also developed specialised health insurance solutions with distinctive
benefits exclusively for Dena Bank customers.
iv .The health insurance policies will be available in the form of individual, as well as family floater
plans beginning with Rs. 2 lakh up to a limit of Rs. 10 lakhs.
RBI Establishes Committee To Review Cyber Threats

i. The Reserve Bank of India (RBI) has set up an 11 member Inter-disciplinary Standing
Committee on Cyber Security on February 28, 2017.
ii. The committee will be chaired by RBI Executive Director Meena Hemchandra.
iii .The panel has the freedom to co-opt more experts in future and also operate through a
framework of sub-committees to examine specific issues.
iv. The committee will be responsible to review the threats emerging from the use of technology,
study adoption of new technology standards and suggest appropriate policy interventions to
strengthen cyber security and resilience.
SIDBI, CSFB pact to help MSMEs avail loans at cheaper rate

i. Lucknow based Small Industries Development Bank of India (SIDBI) and Indias first small
finance bank Capital Small Finance Bank (CSFB) signed Memorandum of Understandingto enable
it to provide loans at a concessional rate to MSMEs.
ii. Aim: To promote and strengthen the micro, small and medium enterprises (MSMEs)
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iii. Th MoU will envisages joint financing/co-financing of MSMEs for capital expenditure under
SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises, popularly known
as SMILE at a concessional rate of 9.60 per cent by SIDBI
Lakshmi Vilas Bank Signs MoU with Centrum for its HNI Clients
i. Chennai-based private sector lender Lakshmi Vilas Bank (LVB) has tied up with Centrum
Group on February 27, 2017 in which the bank will refer its High Net Worth Individuals
(HNI) to Centrum for wealth management and family office services.
ii. Centrum will conduct the business through its wealth management arm, Centrum Wealth
Management and will offer its existing portfolio of wealth management services to the banks HNI
clients.
iii. The agreement was signed between Parthasarathi Mukherjee, managing director & CEO, LVB
and Jaspal Bindra, executive chairman, Centrum Group.
American Express Launches Buyer Initiated Payments to Avoid Cheque, Draft

Payments
i. American Express, a global leader in payment solutions has launched an electronic payment
platform linked to corporate card, Buyer Initiated Payments (BIP) on February 27, 2017 to
eliminate payment through cheques or drafts.
ii. The BIP card will help organizations and their vendors by reducing the processing cost and offer
extended payment terms compared to traditional invoice payments.
iii. BIP enables companies to increase the Days Payable Outstanding (DPO) while still paying
vendors on time.
OECD Predicts Indias GDP Growth at 7% for 2016-17

i. The Economic Survey Report by Organization for Economic Co-operation and
Development (OECD) has estimated the Indias GDP growth at 7 percent for 2016-17 on
February 28, 2017.
ii. Besides, the global think tank has also estimated the growth rate of 7.3 percent for the 2017-
18 and 7.7 percent for 2018-19.
iii. As per the report, though demonetisation may have impacted short term growth in 2016-17,
but the long term effects would see gains going upward.
Canara, HSBC and OBC Banks launched iSelect Term Plan

i. Canara, HSBC and Oriental Bank of Commerce Life Insurance launched iSelect term plan to
expand its online product suit
ii. iSelect term plan provides enhanced protection cover for the family at an affordable
premium.
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iii. It will cover insured persons spouse as well as familys future income with an option to
automatically increase insurance coverage as per changing life stage needed
Banking & Finance Awareness March 2017
India & World Bank Signs USD 63 Million Financing Agreement for Tejaswini: Socio-
Economic Empowerment of Adolescent Girls and Young Women Project
i. India has signed a financing agreement of USD 63 million(equivalent) with World Bank on
23rd February, 2017 in Jharkhand for its Socio-Economic Empowerment of Adolescent Girls
and Young Women Project named Tejaswini.
ii. The World Bank will finance the project through its arm International Development
Association (IDA).
iii. The Financing Agreement was signed between Mr. Raj Kumar, Joint Secretary, Department of
Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr. Junaid Kamal
Ahmad, Country Director, World Bank (India) on behalf of the World Bank.
Government Notifies Law to Make Possession of Demonetized Note as Punishable

Offence
i. The Government of India has officially notified the law that makes holding of more than
10 scrapped notes punishable with a minimum fine of Rs 10,000. The law was signed by
President Pranab Mukherjee on February 27, 2017.
ii .It also provides for a minimum fine Rs 50,000 for false declaration by persons who were
abroad during the demonetisation period (November 9-December 30, 2016). Besides, a further
time limit has been given to deposit such scrapped notes with RBI till March 31.
Reliance General Insurance, Catholic Syrian Bank announced tie up

i. Reliance General Insurance is one of the leading private general insurance companies of India
has announced a bancassurance tie-up with Catholic Syrian Bank on March 1, 2017
ii. Now RGI will offer its insurance products to Catholic Syrian Banks customers across its
branches in Kerala, Tamil Nadu and Maharashtra
HDFC, ICICI, Axis to charge Rs 150 after 4 free transactions

i. Indias leading private banks including HDFC Bank, ICICI, and Axis they will charge a minimum
of Rs 150 per transaction for cash deposits and withdrawals at bank branches beyond four free
transactions in a month.
ii. The new charges aimed at reducing cash transactions at banks at the rate of Rs 5 for every
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Rs 1,000 transacted or Rs 150, whichever is higher.
HDFC Life Partners with ET Money to Launch Data-Led Policy

i. Long-term life insurance provider HDFC Life has launched of an exclusive Data-Led Group
Term Insurance Plan in partnership with personal finance appET Money of Times Internet on
February 27, 2017.
ii .The plan offered as ET Money benefit is first such term insurance plan which is based on the
spend pattern of the users and can be exclusively availed by 1 million users of the ET MONEY app.
iii. The group term life insurance coverage ranges from Rs 25-50 lakh and users can also save
upto 30% of the premium paid as a tax benefit under section 80C of the Income Tax Act.
SIT Unearths Rs. 70,000 crore Black Money

i. The Vice-Chairman of the Special Investigating Team (SIT) on black money,
Justice Arijit Pasayat on March 2, 2017 announced that an amount of Rs. 70,000 crore of black
money has been so far detected through different schemes of the government.
ii .Out of the unearthed amount, over Rs 16,000 crore was detected after an investigation was
made regarding the transfer of fund abroad by Indians.
Govt Directs All Banks to Provide M-Banking Facility to all Customers by March 31
i. The Government of India has directed all the banks to provide mobile banking facility to all
customers by March 31, 2017.
ii. The decision is an effort of the government to boost the digital payment system.
SBI slaps charges on cash deposits, breaching balances

i. Indias largest lender has State bank of India has revised service charges various
transactions, as well as cash deposits and for failing to maintain monthly average balance in
their savings accounts.
ii. This move follows the leading private sectors banks announced similar charges in this week.
The charges will be applicable from April 1, 2017.
Population Minimum Penalty
Center Balance
Metropolitan Rs 5,000 MAB Rs 50 charge for 50 per cent shortfall, Rs 75 for shortfall
between 50-75 per cent and Rs 100 for 75 per cent or more
Urban Rs 3,000 MAB Rs 40 service charge, Rs 60 for 50-75 per cent shortfall and Rs
80 for 75 per cent or more.
Semi-Urban Rs 2,000 MAB Penalty for non-maintenance of minimum balance ranges from
Rural Rs 1,000 MAB Rs 20-50 plus service tax
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Rs 10000 penalty for bank branches refusing to exchange soiled notes

The Reserve Bank of India has clarified that currency notes which have messages scribbled on it
are legal tender bank branches that refuse to exchange soiled notes from people will have to pay
a penalty of Rs 10,000.
IRDAI Proposes 50% Hike In Motor Insurance Premium From April 1

i. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed to
increase the insurance premium to 50 percent for cars, motor cycles as well as commercial
vehicles from April 1.
ii. The proposed hike would be applicable for mid-segment cars (1,000 1,500 cc) as well as
bigger cars and SUVs. The insurance premium would be raise to Rs 3,355 for cars up to 1,000 cc
and Rs 9,246 for bigger ones.
iii. However, the third party motor insurance premium for small cars (up to 1,000 cc)
would remain same at Rs 2,055.
iv. The regulator has also not proposed any increase for two-wheelers having engines up to 75 cc.
However, the insurance premium for sports bikes and super bikes (more than 350 cc) has been
increased to Rs 1,194 from the present Rs 796.
v. The proposal has been made to increase the premium for tractors up to 6 HP from Rs 510 to Rs
765.
SBI to Impose Penalty on Non-Maintenance of Monthly Average Balance in Accounts

from April 1
The countrys largest lender State Bank of India (SBI) has decided to reintroduce penalty on
non-maintenance of minimum balance in accounts to be effective from April 1, 2017.
In case of failing to maintain Monthly Average Balance (MAB) in saving accounts,

penalty of up to Rs. 100 plus service tax would be levied.
Monthly Average Balance in Different Areas
Area Monthly Average Balance Penalty
Metropolitan Area Rs. 5000 Rs. 50+service tax= Shortfall <=50% of MAB.
Rs. 75+service tax= Shortfall >50-75 %.
Rs. 100+service tax= Shortfall > 75%
Urban Area Rs. 3000 Rs. 40+service tax= Shortfall <=50% of MAB.
Semi-Urban Area Rs. 2000 Rs. 25+service tax= Shortfall <=50% of MAB.
Rural Area Rs. 1000 Rs. 20+service tax= Shortfall <=50% of MAB.
Other Transaction Charges
Cash Deposit- Savings Banks Account holders can deposit cash 3 times a month free of charge.
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Beyond that, Rs. 50+ST would be levied on every transaction beyond that.
In case of current account, the levy could go as high as Rs. 20,000.
Cash Withdrawal
If the number of cash withdrawal from other banks ATMs in a month is more than three
times then a charge of Rs. 20 would be levied per transaction.
If the withdrawal is more than 5 times from SBI ATMs in a month then Rs. 10 would be
levied per transaction.
SBI will not levy any charge on withdrawals from its own ATMs if the balance
exceeds Rs.25,000.
In case of other banks ATM, no charge would be levied by SBI if the balance
exceeds Rs. 1 lakh.
Rs. 15 would be charged for SMS alerts per quarter from debit card holders who
maintain an average quarterly balance of up to Rs. 25,000 during the three-month
period.
Term Deposit
Among other things, SBI has reduced the interest rates on term deposits maturing between
180 days and 1year and between 456 days and 3 years with effect from March 1.
SBI will now pay an interest of 6.5% on deposits with maturities between 180 days and
less than one year and 6.75% on maturities between 456 days and less than three
years.
Finance Ministry Gives in-principle Approval to ESOPs by PSU banks

i. The Union Finance Ministry has given its in-principle nod to allow Public Sector Banks
(PSUs) to offer stock options to their employees from 2017-18.
ii .However, the Employee Stock Option Plans (ESOPs) can only be given by those banks
which have earned substantial profit as well as made remarkable improvement in managing NPAs.
iii .The proposal of ESOP by the Banks Board Bureau (BBB) will help to motivate employees to
work towards strengthening the financial status of their banks and hence increase its share value.
Vijaya Bank opens its 2,000th branch in Tirupati

i. Bengaluru based Vijaya Bank has recently opened its 2000th Branch in Tirupati by Sri
Chadalawada Krishna Murthy, Chairman, Tirumala Tirupati Devasthanams.
ii. This branch is the regions 65th branch and the second in Tirupati city.
HDFC Bank launches chatbot Eva for customer services

i. Mumbai headquartered HDFC Bank has launched Indias first AI(artificial intelligence) based
banking chatbot Electronic Virtual Assistant (EVA) for customer services .
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ii. It can assimilate knowledge from thousands of sources and provide answers in simple language
in less than 0.4 seconds
HDFC Life brings countrys first life insurance Chatbot with Haptik
Mumbai based HDFC Life has launched Indias first life insurance chatbot to help users choose
the most suitable life insurance plans and solutions on March 7, 2017
The chatbot was launched in collaboration with Indias largest chatbot platform Haptik, Indias
largest chatbot platform.
Chatbot features :
i. This chatbot will assist the customers with insurance advice ranging from Health to Tax
Planning & Retirement, based on a simple 60-second quiz which enables it to compute their
Insurance Quotient.
ii. The chatbot not only works as a personal financial advisor but also brings to the forefront the
universal need for life insurance
Fitch Estimates Indian Economy to Grow 7.1% in 2016-17

i. The US based global rating agency Fitch on March 7, 2017 estimated Indias GDP to grow
by 7.1 percent in the fiscal 2016-17.ii. However, the rating agency also projected the growth to
see upward trend at 7.7 percent in both 2017-18 and 2018-19.
ESAF Microfinance Issues Commercial Paper Worth Rs 330 crore

i. ESAF Microfinance Company has issued Commercial Papers (CP) worth Rs.330
crore. Private Sector Banks and NBFCs can subscribe for the CP.
ii. The papers are rated A1 by CARE ratings. The proceeds from CP will be used for short term
funding needs of the organization.
IDFC Launches Biometric Based Payment System Aadhaar Pay

i. IDFC Bank has launched Indias first biometric-based payment system Aadhaar Pay on
March 7, 2017 in New Delhi.
ii. The Aadhaar Pay app has been developed by IDFC Bank under the guidance of the Ministry of
IT, NITI Aayog, Unique Identification Authority of India (UIDAI), and National Payments
Corporation of India (NPCI).
iii. Initially, the biometric reader is available for Rs 2,000.
Karur Vysya Bank launches 3 technology services

Karur based Karur Vysya Bank s Chief Executive K. Venkataraman has rolled-out of three
technology services FASTag, UPI and BBPS on March 8, 2017.
i. FASTag :The FASTag service has been launched in association with the Indian Highways
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Management Company, a subsidiary of National Highways Authority of India.

The preloaded tags affixed on vehicles are valid at all toll plazas throughout the country.
ii. UPI app :
United Payments Interface (UPI) is a mobile app that enables inter-bank transfer of funds. The
transfer is effected through the IMPS (Immediate Payment Service) platform of NPCI (National
Payments Corporation of India).
iii. BBPS :
BBPS (Bharat Bill Payment System) will make utility bill payments such as electricity bills,
water charges and gas cylinders, among others, at a single site instead of accessing multiple
sites.
SBI launches Work from Home facility for employees

i. Mumbai based State Bank of India has launched a new facility Work from Home to enable
its employees to work from home on March 7, 2017
ii. Aim: To enable its employees to work while at home using mobile devices to address any
urgent requirement they may have, that prevents their travelling to work.
iii. This facility was launched after Work from Home policy was recently approved by
the Board of the bank.
EPFO extends Digital Life Certificate submission through Jeevan Pramaan Patra by
March 31
The the Employees Provident Fund Organisation (EPFO) has extended the last date of
submission of Digital Life Certificate through Jeevan Pramaan Patra up to 31st March
2017 from 28th February 2017.
SBI says minimum balance penalty needed to offset Jan Dhan account costs
i. SBI recently announced that penalty for non-maintenance of Minimum Average
Balance (MAB) from April 1, 2017. Government asked SBI to reconsider charges.
ii. Arundhati Bhattacharya, SBI chief clarify that the condition of maintaining minimum balance
will not be applicable to the Jan Dhan accounts
RBI Will Soon Introduce New Rs 10 Notes with More Security Features
The Reserve Bank of India on March 9, 2017 notified that it is soon going to issue Rs. 10
denomination notes with enhanced security features for circulation.
Salient Feature of the Note
i. The note will be in the Mahatma Gandhi series-2005 and carry inset letter L on both
number panels.
ii. It will have the signature of Governor Urjit Patel.
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iii. The year of printing, 2017, will be on the reverse of the note.
Government Issues Draft Rules For Digital Wallet Companies

The Ministry of Electronics and Information Technology has issued a draft rule
titled Information Technology (Security of Prepaid Payment Instruments) Rules 2017 on
March 8, 2017 for digital wallet firms like Paytm, FreeCharge and Mobikwik.
The MeitY has formulated the draft rules for security of Prepaid Payment
Instruments (PPIs) under provisions of IT Act 2000.
Aim: To ensure adequate integrity, security and confidentiality of electronic payments
made via digital wallet and strengthen the grievance redressal mechanism for
consumers
Salient Features of the IT (Security of Prepaid Payment Instruments) Rules 2017
The Rules mandate that each Prepaid Payment Instruments (PPI) company or wallet firm will have
in place and publish on its website and mobile applications the privacy policy and the terms and
conditions for use of the payment systems operated by it in simple language, capable of being
understood by a reasonable person.
Companies will also have to appoint a chief grievance officer whose contact details
will have to be displayed on the website.
Companies should also have enough technological safeguards to avoid any hacking
attacks of their platform and in case of any such event, it is to be swiftly reported to
the government agencies like CERT-In.
The draft rule also specifies that the e-PPI issuers should also follow adequate due
diligence procedures and identification of users prior to on boarding them on their
respective platforms.
The companies will also have to establish a mechanism for monitoring, handling and
follow-up of cyber incidents and breaches.
The security policies should also be reviewed once a year by the firms and in case of any
breach, the company will have to revamp its policies.
The companies will also have to adopt a two-factor authentication process for
transactions. The government may by notification exempt digital wallets from requiring
two-factor authentication in specific use cases.
Paytm Withdraws Levying 2% fee on Recharging Wallet via Credit Card

Indian payment and commerce company Paytm has withdrawn the 2 percent fee on adding
money to mobile wallets using credit cards on March 10, 2017, just two days after imposing the
fees.
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Ujjivan Small Finance Bank opens 6 new branches in Bengaluru

i. Ujjivan Small Finance Bank (Ujjivan SFB) has opened its six new branches at the Silicon
Valley of India, Bengaluru on March 9, 2017 said by Samit Ghosh, MD & CEO, Ujjivan Small
Finance Bank
ii. Six new branches are located at Magadi Road, Chandra Layout, Chamarajpet, Uttarahalli,
Devaiah Park and Nelamangala.
RBI Restricts Cash Loan Against Gold by NBFC to Rs 20,000

The Reserve Bank of India has amended the provision for disbursement of
loan by NBFC against the gold on March 9, 2017 in line with the provisions of the Income Tax
Act.
As per the new provision, the Non-banking Financial Company (NBFC) cannot lend more
than Rs 20,000 in cash against gold as against the earlier Rs 1 lakh.
The earlier provision for NBFC was that high value loans against gold of Rs 1 lakh and above
must only be disbursed by cheque.
Germanys KfW signed loan agreement with EESL and SBI

i. The German Development Bank (KfW) and Uttar Pradesh based Energy Efficiency Services
Limited (EESL) has signed a loan agreement for 200 million with a four year moratorium and a
12-year repayment period.ii. Mumbai based State Bank of India(SBI) also signed an agreement
with German KfW Development Bank for USD 274 million loan facility a maturity of 15 years to
finance affordable housing segment in India.
Karnataka Bank, BAGICL sign MoU on general insurance business

i. Mangalore based Karnataka Bank has signed a Memorandum of Understanding (MoU) with
Pune based Bajaj Allianz General Insurance Company for General Insurance business on
March 10, 2017
ii. With this, Karnataka bank would be able to provide vast choice of non-life insurance products
to its customers.
SBI incorporates wholly owned subsidiary for premises and estate matters of SBI
i. The State Bank of India on March 11, 2017 has legally incorporated SBI Infra Management
Solutions Pvt. Ltd. (SBIIMS Pvt. Ltd.) as a wholly owned subsidiary of SBI. SBIIMS Pvt. Ltd. will
now manage the premises and estate related matters of SBI.
ii. The new subsidiary will save the time of bank employees who earlier performed these non-core
functions. Now these employees can handle the core functions of the bank and increase the
efficiency.
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YES Bank signs 3 projects of smart city for payments-related solutions

i. Private sector lender Yes Bank has signed three projects to provide payments-related
solutions to smart cities. The bank finds it as a good business opportunity.
ii. Yes Bank has currently ties up with Udaipur, Nashik and Puducherry for the introduction of
digital payment systems under the smart city initiative.
RBI Removes Limit on Cash Withdrawal from Savings Banks Accounts

i. In order to comply with the pace of remonetization, the Reserve Bank of India (RBI) has
decided to remove the restrictions on cash withdrawals from Saving Bank accounts (including
accounts opened under PMJDY) in a two step process.
ii. Besides, effective from March 13, 2017, there will be no limits on cash withdrawals from
Savings Bank accounts.
Madhya Pradesh Rewa solar plant to receive loan from World Bank
i. An international financial institution, World Bank has agreed to provide loan to develop internal
transmission arrangements of the upcoming Rewa Ultra Mega Solar (RUMS) project in Madhya
Pradesh.
ii. RUMS become Indias first solar power project of the country to receive a loan under CTF
iii. It will provide 75% of the loan amount with an interest rate of only 0.25% and remaining 25
% of the loan amount under its Clean Technology Fund (CTF), money will be provided at an
interest rate of only 0.25 per cent, a state Public Relations Department official said
SBI Announces One Time Settlement Scheme Worth Rs 6,000 cr for Tractor Loan
i. The countrys largest lender, State Bank of India announced a One-Time Settlement
(OTS) scheme worth Rs 6,000 crore on March 14, 2017 for tractor and farm mechanization
loans to improve the loan recovery.
ii. Under the scheme, the loans disbursed before 2011 and falling in the doubtful or loss assets
category as of September 30, 2016 would be considered.
iii. Proposals submitted till March 31, 2017 will be considered under the scheme.
Indias contribution to UN increases to Rs 244 crore

i. Indias contribution to the United Nations has increased to Rs 244 crore from Rs
157 crore during the fiscal year 2016-16 said by Union External Affairs Minister Sushma Swaraj
ii. Indian government had also made voluntary contributions to the tune of Rs 22 crore to
international organisations, including UN agencies.
iii. For the period 2016-18, Indias Scale of Assessment for the UNs Regular and Peacekeeping
budgets has been fixed at 0.737 per cent and 0.1474 per cent, respectively.
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HDFC Bank Launches Indias First Digital Loans Against Securities

HDFC Bank in collaboration with National Securities Depository Limited (NSDL) has launched
an instant Digital Loan against Securities (LAS) product on March 15, 2017.
LAS will reduced the time to disburse the overdraft facility in just 3 minutes rather than several
days previously. This is a first-of-its-kind initiative in India and probably the first in the world as
well.
UCO Bank, Future Generali tie up

i. Private insurer Future Generali India Insurance Company (FGII) has announced tie-up with
Kolkata based UCO Bank for its products on March 15, 2017
ii. Target : To achieve a growth of 80 per cent by FY18..
SEBI Issues Guidelines for Celebrities to Endorse Mutual Fund Products At Industry
Level
i. The market regulator Securities and Exchange Board of India (SEBI) reviewed
advertisement guidelines for mutual funds on March 15, 2017, with regard to disclosing
performance-related information about such products.
ii. SEBI also issued new advertising code that will require fund houses to communicate simply
and effectively with the public.
iii. As per the new guidelines, SEBI has permitted celebrities to endorse mutual fund products at
the industry level for the purpose of increasing awareness of mutual funds as a financial product
category.
State Bank of India and CREDAI sign MoU related to real estate sector
i. Indias public sector banking and financial services company State Bank of India(SBI) and
real estate developers body CREDAI have signed a memorandum of understanding (MoU) which
is valid for a period of 3 years.
ii. Aim of MoU :
1.To jointly conduct various initiatives towards development of the realty sector.
2.To promote housing for all
World Bank Approves $175 million loan for Indias National Hydrology Project
i. The World Bank has approved a $175 million loan on March 15, 2017 to India for
the National Hydrology Project to improve Indias ability to forecast floods and reduce the
recurring chances of floods and droughts.
ii. The loan would be disbursed by the International Bank for Reconstruction and
Development (IBRD). The loan has a six-year grace period in which no interest payments will
be due and will mature in 23 years.
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ESAF Small Finance Bank launched in Thrissur

Keralas first private sector bank ESAF Small Finance Bank was launched by Kerala Chief
Minister Pinarayi Vijayan in Thrissur, Kerala on March 17, 2017
This bank is promoted by ESAF Microfinance and Investments (P) Ltd and it is targeted to open
85 branches in unbanked rural centres in first year.
Target of the bank: Rs 20,000 crore by 2020.
Interest Rates :
i. For term deposits of varying maturities 5.75 per cent to 9 per cent
ii. For savings deposits 6 per cent to 7 per cent
iii. Senior citizens term deposits .05 per cent
Bandhan Bank ties up with Avenues India

i. Kolkata based Bandhan Bank has signed an agreement with a payment solution
provider Avenues India Pvt Ltd on March 16, 2017
ii. Aim: To provide merchants with seamless access to point-of-sales (POS) and payment gateway
products.
29 Lakh Debit Cards Subjected To Malware Attack Through ATM

i. As per a data presented by Minister of State for Finance Santosh Kumar Gangwar in the
Parliament on March 17, 2017, in 2016 a total of 29 lakh debit cards were subjected to malware
attack through ATMs that were connected with the switch of Hitachi.
ii. A report by Commercial bank stated that 2.9 million cards that were used at ATMs connected to
switch of Hitachi were subjected to malware attack in 2016 but the data of only 3,291
cards faced unauthorized use.
RBI Gets Centres Nod to Print Rs 10 Plastic Notes

i. The Reserve Bank of India has got the approval from the Central Government to conduct the
field trial of plastic banknotes of Rs. 10 denomination prior to introducing it as legal tender.
ii. RBI got the approval to go ahead with the procurement of the requisite plastic substrate
material for printing of Rs. 10 denomination notes. Substrate refers to the underlying substance
or layer on which currency is printed.
UBI gets Rs. 418-cr capital infusion From Centre

State run United Bank of India on March 16, 2017 received a capital infusion of Rs 418 crore from
the Centre as a part of its turnaround-linked capital infusion plan.
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Aeries Financial Tech Announces Strategic Tie-up with Rubique

i. CASHe, a fin-tech product promoted by Aeries Financial Technologies has entered into a
strategic partnership with Rubique, an online marketplace for financial products on March 16,
2017.
ii. Under the partnership, Rubique will enlist CASHe on its online platform for borrowers to avail
viable short-term loan products from CASHe.
FinMin Approves Capital Infusion Plan for 10 PSU Banks

i. The Union Ministry of Finance has given the green signal to the turnaround-linked Rs.8,586-
crore capital infusion plan to support 10 weak and non-performing public sector banks
(PSBs).
ii .The 10 Banks Include: Allahabad Bank (Rs.418 crore); Andhra Bank (Rs.1,100 crore); Bank of
India (Rs.1,500 crore); Bank of Maharashtra (Rs.300 crore); Central Bank of India (Rs.100 crore);
Dena Bank (Rs.600 crore); IDBI Bank (Rs.1,900 crore); Indian Overseas Bank (Rs.1,100 crore);
UCO Bank (Rs.1,150 crore) and United Bank of India (Rs.418 crore).
Hazira's first private sector township to go cashless

i. Essar Steel's Nand Niketan township at Hazira, Gujarat has become the first private township
to go cashless with the help of Mumbai-based financial technology company, The Mobile
Wallet (TMW).
ii. TMW will provide smartphone based application for mastercard-enabled mobile wallets
and the wallet is powered by RBL Bank Ltd.
ICICI Bank launches new app Mera iMobile,for rural customers

i. Mumbai based ICICI Bank launched first banking mobile application Mera iMobile to provide
agricultural information in 11 Indian languages for rural people without internet connection.
ii. Purpose: To access banking services and get information on agricultural services
iii. Mera iMobile app provide services include Kisan Credit Card, Gold Loan, Farm Equipment Loan
and loans to Self-Help Groups (SHGs).
RBI Proposes To Fix Upper Limit in PPIs At Rs 1 Lakh

The Reserve Bank of India (RBI) has proposed to cap the upper limit for Pre-paid Payment
Instruments at Rs 1 lakh on March 20, 2017 due to the growing usage of PPIs for purchase of
goods and services as well as funds transfer.
The decision was taken by RBI after receiving requests from stakeholders and other entities for
relaxations in certain areas while strengthening the norms for safety and security, risk mitigation
and customer protection aspects related to usage of PPIs.
The RBI sought comment of stakeholders on draft circular on Master Directions on Issuance and
Operation of Pre-paid Payment Instruments (PPIs) in India till March 31.
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Centre Approves Merging Bharatiya Mahila Bank With SBI

The Government of India has decided to merge Bharatiya Mahila Bank (BMB) with Indias
largest lender, the State Bank of India (SBI) to ensure greater banking services outreach to
larger number of women at a faster pace.
All the 103 branches of BMB and business of approximately Rs. 2,000 crore would be merged
with SBI.
Mobile Payment Service Samsung Pay Officially Launched In India

i. Samsung Electronics officially launched the mobile payment service, Samsung Pay in India
on March 22, 2017.
ii. With this, Samsung becomes the first company to launch a mobile payment service in
India, ahead of Apple Pay or Android Pay.
iii. The first commercial transaction of the new payments service in India was carried out in the
presence of NITI Aayog CEO Amitabh Kant and Samsung Southwest Asia President and
CEO HC Hong.
Government Lowers Cash Transaction Limit to Rs 2 lakh

i .The Government of India has proposed to lower the limit of cash transaction from Rs. 3 lakh
to Rs. 2 lakh per month to further tighten and discourage payments by cash as well as curb
black money.
ii .The Union Finance Minister Arun Jaitley proposed 40 amendments to the Finance Bill 2017
which was cleared by the Lok Sabha on March 21, 2017.
iii. The new limit will be effective from April 1, 2017. Any violations to the norms would be
subjected to a fine equivalent to the amount of transaction. For example, if a cash transaction of
Rs 4 lakh is uncovered, the penalty will be Rs 4 lakh.
Russian VTB Bank to Shut Its Only Office Branch in India

i. The Russian VTB Bank has announced its intention to close its only office in India as part of its
ongoing cost optimisation strategy.
ii .However, the bank will continue operations in the country and further develop their partner and
client network in the country.
India and ADB Sign $350 Million Loan for Upgrading 1,500 kms of District Roads in
State of Madhya Pradesh
i. Philippines headquartered Asian Development Bank (ADB)'s Deputy Country Director L. B.
Sondjaja and Joint Secretary (Multilateral Institutions), Department of Economic Affairs in the
Ministry of Finance, Raj Kumar have signed a $350 million loan agreement in New Delhi on
March 22, 2017.
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ii. This loan amount will be used to improve 1,500 kilometers of major district roads in India's
second-largest State Madhya Pradesh.
iii. The state government of Madhya pradesh also will allocate $150 million for this project
Assam govt, SBI sign MoU over housing, educational loan at subsidized interest rates
The state government of Assam has signed two MoUs with Mumbai based State Bank of
India(SBI) to provide housing loan and education loan for its employees on March 23, 2017
Devajyoti Hazarika, state additional secretary of finance and Om Prakash Mishra General
Manager of SBI of NE Circle have signed MoU for loan facility at subsidized interest rates.
Highlights :
i. Housing loan at the interest rates of 5% for women employees
ii. Housing loan at the interest rates of 5.5 % for men and
iii. Education loan for higher education for their children at 4% interest rate
iv. The maximum limit of the housing loan is Rs 15 lakh and Education loan is Rs.10 lakh
South Indian Bank introduces Aadhar-based payment app

Kerala based South Indian Bank has introduced Aadhar-based UPI mobile application SIB M-Pay
on March 23, 2017.
Aim: To promote cashless digital transactions
Features :
SIB M-Pay will enables all bank account holders to send and receive money from their
Smartphone without bank account information.It required only Aadhar number of the beneficiary
IOB to get Rs.1,100-crore capital infusion

Chennai-based Indian Overseas Bank (IOB) will get Rs 1,100 crore capital infusion from the
Government . This was confirmed by Finance Ministry on March 22, 2017.
World Bank Signs USD 100 million Credit Agreement with Centre & Uttarakhand
i .The World Bank signed US dollar 100 million credit agreement with the Centre and the
state government of Uttarakhand on March 23, 2017 in New Delhi to improve quality of health
care services in all 13 districts of the state.
ii .The aim of the agreement is to make available affordable, quality health care to all citizens
and also reduce the financial risk for its citizens.
iii. The agreement was signed between Joint Secretary in Ministry of Finance Raj Kumar on behalf
of the Centre, Additional Secretary Health and Project Director for the Uttarakhand Health
Systems Development Project Neeraj Kharwal on behalf of Uttarakhand and World Bank India
Operations Manager and Acting Country Director Hisham Abdo Kahin on behalf of the World Bank.
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Tata Capital Launches Mobile App To Offer Personal Loans

i. The Financial services company Tata Capital has launched a mobile application myLoan to
offer personal loans to young and mobile savvy audience.
ii. The maximum limit of the loan is Rs.13 lakh.
iii. The app is a social profile like Facebook and Linkedin based personal loan mobile application.
Office of the Insurance Ombudsman, Delhi Receives ISO 9001:2015 (QMS) Certification
The Office of the Insurance Ombudsman, Delhi was awarded ISO 9001:2015
certification by Standardisation, Testing and Quality Certification (STOC), under Ministry
of Electronics and Information Technology, for Quality Management Standard (QMS) on March
24, 2017 in New Delhi.
Karnataka Bank Launches Rupay International Platinum Debit Card

Mangaluru based Karnataka Bank has launched a new card option for its premium and HNI (high
net worth individual) customers in line with the bank's digital banking initiative.The novel card
named MoneyPlantTM RuPay International Platinum Debit Card can be used for domestic
and international cash withdrawals and purchases.
Features of MoneyPlant TM RuPay Card
i. Withdrawal limit of Rs. 75,000 and purchase limit of Rs 2 lakh a day at point-of-sales
terminals and e-commerce sites.
ii .Two free accesses to airport lounges per quarter across above 30 airports in India and 300
plus airports worldwide.
iii. Personal accident insurance coverage of Rs 2 lakh.
iv .Fuel surcharge waiver besides other merchant offers.
IREDA to sanction Rs 13K crore loans for renewables in FY18

i. Indian Renewable Energy Development Agency (IREDA) will sanction a loan worth 13K
Crore Rupees for clean energy projects in FY18, which plays the major role in reducing the
pollution in India.
ii. The government of India is aiming at adding around 15 to 16 GW of clean energy projects,
including solar and wind.
Repco Inks Pact with NHB for Credit Linked Subsidy Scheme for Middle Income Groups
i. On December 31, 2016, Prime Minister Narendra Modi announced an interest subsidy scheme
named as Credit Linked Subsidy Scheme for Middle Income Groups, CLSS-(MIG) for the
tax-paying middle class population, aspiring to have their own pucca house.
ii. The scheme has been made operational from January 1, 2017 for which the effective
guidelines were released by Minister of Housing and Urban Poverty Alleviation Shri M.Venkaiah
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Naidu on March 22, 2017.

iii .Besides, for the implementation of the scheme, Repco Home Finance Ltd (RHFL) signed an
agreement with National Housing Bank.
Vijaya Bank Signs MoU with Piaggio Vehicles

Bengaluru based Vijaya Bank has inked an Mou with Italian vehicles manufacturer Piaggio
Vehicles, on March 27, 2017 for providing financial support for the purchase of vehicles
under Small Road Transport Operators (SRTO) scheme in Bengaluru.
Karnataka Bank Installs Landmark 10,000 PoS Terminals

i. Mangaluru based private sector lender, Karnataka Bank achieved a landmark installation
of 10,000 Point of Sales (PoS) terminals on March 27, 2017.
ii. The 10,000th POS terminal was handed over by the Banks Managing Director and CEO, P
Jayarama Bhat to Dr. Ravichandar, Chairman and Managing Director of Nandana Group of
Hotels, Bengaluru, one of its valued customers at the function held at Banks Bengaluru
Regional Office.
Odisha becomes first state to bring banking to remote rural areas through SHG
In what can be considered as a path breaking development on financial inclusion
front, Odisha became the first Indian state to extend banking facilities to masses in unbanked
areas through Self- Help Groups (SHGs).
To implement this initiative, Odisha State Government has signed an agreement

with State Bank of India (SBI) the largest public sector bank of India. Odisha
Govt.s Odisha Livelihoods Mission (OLM) is the main party (corporate agent) in this
agreement with SBI. Around three lakh SHGs, currently operating under OLM will take
up the role of Banking Correspondents (BCs).
Jyoti Nath, Director of OLM Pranab and Srikant Hota signed the agreement, Assistant
General Manager, SBI have signed the agreement on March 27, 2017
Phase Wise Implementation Plan:
1. First Phase: SHGs in the role of Banking Correspondents will reach out to 1000 Gram
Panchayats in Odisha which do not have any banking facilities as of now.
2. Second Phase: Another 4000 Non-Banked gram Panchayats will be covered.
3. Final Phase: Full state will be covered, and this system will function as a supplementary
banking service.
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40 Ananya branches opened by Syndicate Bank

Manipal headquartered Syndicate bank opens 40 Ananya transformed branches, digitally on
March 27, 2017. The branches were inaugurated in the presence of Arun Shrivastava, its
Managing Director and CEO.
In addition to that, bank also launched its first micro, small and medium enterprise (MSME) hub
in Bangalore.
ICICI Bank & Truecaller Partners to Launch UPI-based Truecaller Pay

Mumbai based private sector lender, ICICI Bank partnered with Truecaller app on March 28,
2017 to launch a (Unified Payments Interface) UPI-based mobile payment service called
Truecaller Pay.
True Pay aims to provide quick and easy payment methods to mobile phone users in India.
Key Features of Truecaller Pay
i. Truecaller Pay will allow users of the Truecaller app to instantly create a UPI id, send money to
any UPI id or a mobile number registered with the BHIM app.
ii. It will also allow users to recharge their mobile number using the app.
Use of Bitcoin, other virtual currencies not authorised by RBI, says Govt.
i. In backdrop of demontisation, a question was raised in Rajya Sabha asking the Govt. to clear its
stand on status of virtual currencies including Bitcoin in India. Written reply to this question was
provided by Arjun Ram Meghwal - Minister of State for Finance.
ii. As on 30th March 2017, approximate value of 1 Bitcoin = INR 67300/-
Tata AIA Launches m-Insurance Jointly with Tata Telecom

i. Tata AIA Life Insurance have partnered with Tata Teleservices Limited (TTSL) to
launch m-Insurance for the prepaid customers of the Telecom Company.
ii. Beginning with, the pilot launch has been made in Andhra Pradesh and Telengana and
eventually would cover other states.
iii .The m-Insurance is a term life plan with two options for the sum assured- Rs. 50,000 and Rs.
1 Lakh.
'Unnati' credit card launched by SBI

Indias largest Public Sector Lender State Bank of India has launched a unique credit card SBI
Card Unnati on March 28, 2017. This new brand credit card targets at all SBI customers,
including Jan Dhan account-holders across the country.
Criteria and Regulations
i. SBI Card Unnati will be issued to the customers with a minimum balance of 25000.
ii. There is no need for any past history in credit card withdrawal or underwriting.
iii. This card is provided on issue of valid KYC (Know Your Customer) documents and the
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application form.
iv. The annual fee of Rs.499 is waived off for the first 4 years.(i.e., no charges are to be paid)
Axis Bank Partners with Wells Fargo for Inward Remittances

i. Mumbai based Axis Bank has signed an agreement with Wells Fargo, Americas third largest
bank by asset, to offer real time remittances by Indian Diaspora in US back to their relatives in
India.
ii. Under the agreement, any Indian Diaspora customer of Wells Fargo can transfer money to their
relatives in India without any transaction cost.
Kotak Mahindra Bank Launches 8-11 App to Double Customer Base

i. Private sector lender, Kotak Mahindra bank has launched an innovative account opening
system on March 29, 2017 under the name 8-11 which can be used from anywhere and anytime.
ii. The aim of launching the 8-11 app is to increase the customer base of the bank within 18
months from existing 8 million.
Features of 8-11 App
The users can open the account within five minutes using the Kotak Mahindra's mobile banking
system.
It will allow users to open a zero-balance, zero-charge account even at midnight to offer free
digital services.
Only Aadhaar card and PAN card is needed for opening the account.
8-11 will offer customers up to 6 percent interest on their savings account balances.
KMB is the first lender in the country to use the Aadhar-based OTP for the account opening.
India Inks $350 mn loan agreement with NDB for Roads Projects in MP
The Government of India has signed USD 350 million loan agreement with the New
Development Bank (NDB) on March 30, 2017.
Aim: Development and up gradation of road project in Madhya Pradesh to improve transport
connectivity in the interior regions of the state and boost economic activity.
The loan agreement was signed between Raj Kumar, Joint Secretary, Department of Economic
Affairs on behalf of GOI and Xian Zhu, Vice President and Chief Operating Officer of NDB.
Key Features of the Agreement
i. The MP road development project is the first NDB assisted project in India.
ii.The project is to be implemented over a period of 5 years.
Banking & Finance Awareness April 2017
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Govt lowers interest rates on small saving schemes like PPF, KVP and Sukanya
Samriddhi Yojana by 0.1 per cent for April-June quarter
Finance Ministry has notified the reduction in interest rates on Small Saving Schemes for April-
June 2017 quarter by 10 basis points (0.1%) as compared to Jan-Mar 2017 quarter. This move
is in line with the Govt.s practice of recalibrating the rates on quarterly basis, which is being
followed since April 2016.
Post this decision, the applicable interest rate on investment in various Small Savings
Schemes is as under:
Small Saving Scheme Interest Rate
Public Provident Fund (PPF) 7.9%
5-year National Savings Certificate (NSC) 7.9%
Kisan Vikas Patra (KVP) 7.6% - Maturity period will be 113 months as
against 112 months previously
Sukanya Samriddhi Account 8.4%
5-year Senior Citizens Savings Scheme 8.4% (Unchanged)
Savings Deposit 4.0% (Unchanged)
Term Deposits (1-5 year maturity) 6.9% to 7.7%
5-year Recurring Deposit 7.2%
82nd Establishment Day of RBI, 1st April 2017

i. Having commenced operations from 1st April 1935, Indias central bank, Reserve Bank of
India (RBI) celebrated 82nd Establishment Day on 1st April 2017.
ii. Establishment of RBI was recommended by Hilton Young Commission to the then British
Government.RBI functions in accordance with provisions laid out in Reserve Bank of India Act,
1934.
Infrastructure projects in India Japan commits 371 billion Yen assistance

On March 31, 2017, Japan made a commitment with India for providing Official Development
Assistance (ODA) for Infrastructure projects in India. Japan is providing India with 371.345
billion yen (about Rs 21,590 crore) under the financial year 2016-17.
The information was given by S Selvakumar, Joint Secretary, Department of Economic Affairs
and Kenji Hamamatsu, Ambassador of Japan to India.
Co-branded Credit Card launched by Karnataka Bank and SBI Card

Private sector Karnataka Bank in collaboration with SBI Card launched co-branded credit cards
for Karnataka Bank customers on March 31, 2017. Two types of credit cards are launched
namely
SBI card are Savings Bank account holders with monthly average balance of Rs 1 lakh and
above for last three months.
Fixed Deposit account holders with minimum deposit amount of Rs 180000 and housing loan
account holder with loan amountof Rs 20 lakh and above.
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Eligibilities for Karnataka Bank Simply SAVE Credit Card are

Savings Bank account holders with monthly average balance of Rs 20000 and above for last
three months
Fixed Deposit account holders with minimum deposit amount of Rs 50000 and housing loan
account holders with loan amount of Rs 8 lakh and above.
SBI merged with all its subsidiaries and entered in the league of top 50 Global Banks
On April 1, 2017, State Bank of India (SBI) successfully merged with its five associate banks
and Bharatiya Mahila Bank. By this merger, SBI entered the league of Top 50 Global
Banks which ranks 44th and a balance sheet size of Rs 41 lakh crore along with the new logo.
The associate banks of SBI are
1.State Bank of Bikaner and Jaipur,
2.State Bank of Hyderabad,
3.State Bank of Mysore,
4.State Bank of Patiala and
5.State Bank of Travancore.
NDB invests USD 1.5 billion in 7 projects in past 2 years of operation: Kamath
The New Development Bank (NDB) backed by BRICS has invested a total of USD 1.5 billion
through 7 projects in the year 2015 and 2016. The information was shared by NDB president K V
Kamath during the second annual meeting of the bank on April 1, 2017.
Out of the seven projects, six of the projects were from renewable sectors and one
in transport financing sector. The first ever project signed by NDB is with China in December,
2016. The second loan was signed with projects in India.
Plans by New Development Bank (NDB)
i. The NDB is planning to raise up-to $500 million through masala bonds and increase its
exposure to infrastructure projects in India.
ii. The NDB has begun its work for opening a regional centre in Africa which is to be completed by
May, 2017.
iii .Bank has an approval to raise 10 billion renminbi from China, out of which it has raised 3
billion renminbi.
Reserve Bank of India (RBI) set up separate Enforcement Department

i. Minister of State in the Ministry of Finance, Mr. Santosh Kumar Gangwar informed Lok Sabha
that Reserve Bank of India (RBI) is planning to set up a separate in-house Enforcement
Department which will be operational from 3rd April 2017.
ii. This Department will be responsible for framing broad policy related to enforcement and take
action against registered entities that violate it. It will function as centralised department to deal
with banks exclusively for enforcement action such as issuing warning or imposing penalty.
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Tax Evasion over Rs 5 crore is a non-bailable offence under GST Regime.

i. The Central government has decided to make tax evasion of over Rs 5 crore under the
proposed Goods and Services Tax (GST) regime as a non-bailable offence.
ii. Earlier, the tax evasion of over Rs 2.5 crore was proposed by the Goods and Services Tax
(GST) regime.
ICICI Bank and Axis Bank sold Rs 1800 crore of loans of Ballarpur to Edelweiss Asset
Re-Company
i. Market leaders ICICI Bank and Axis Bank sold Rs 1800 crore worth loans of paper
maker Ballarpur Industries to Edelweiss Asset Reconstruction Company.
ii. This is the first time, a potential bad loan being sold off to an Asset Reconstruction Company
at book value.
iii. Axis Bank sold loans of Rs.1200 crore and ICICI Bank sold loans of Rs.600 crore.
iv. The loan sold is under 15:85 structure where 15 per cent is paid in cash and the balance 85%
is paid in securities receipts.
New Rs 200 denominated notes proposal cleared by RBI

i. Indias central bank, the Reserve Bank of India (RBI) has cleared a proposal to introduce new
currency notes of Rs 200 on April 3, 2017.
ii. The proposal was cleared during the RBI board meeting held in March, 2017. The information
was passed by officials from RBI.
iii. The process of producing the Rs 200 notes will begin after June, if the central government
officially approves the new denomination.
Aditya Birla Group gets RBI licence to start payments bank

i. Aditya Birla Idea Payments Bank Ltd. has become the seventh entity to receive a final
licence from Reserve Bank of India (RBI) for carrying out the business of payments bank in India.
ii. Aditya Birla Idea Payments Bank Ltd. will be launched in the first half of year 2017.Its
headquarters is in Mumbai
Japan officially recognises Bitcoin as currency from April 2017

i. The currency of the Internet, Biticoin and other digital currencies have recognised as
a payment method by Japan with effect from its new fiscal year
ii. It was recognised under new banking law of Japan but it is not a legally-recognized currency.
iii. Bitcoin exchanges will come under additional regulatory scrutiny. They will be required to
comply with strict anti-money laundering (AML) and Know Your Customer (KYC) requirements,
along with annual audits.
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RBI Monetary Policy Review: RBI keeps repo rate unchanged at 6.25%, raises reverse
repo rate to 6%
On 6th April 2017, Reserve Bank of India (RBI) announced First Bi-Monthly Monetary Policy
Statement for financial year 2017-18. This is the third straight meeting wherein the Policy Repo
Rate has been kept unchanged.
Post the First Bi-Monthly Monetary Policy Statement announcement, the policy rates
and reserve ratios are as follows:
Policy Repo Rate 6.25% Unchanged - since 4th October 2016
Reverse Repo Rate 6.00% Hiked by 25 basis points. Earlier it was 5.75%
Marginal Standing Facility Rate 6.50% Reduced by 25 basis points. Earlier it was 6.75%
Bank Rate 6.50% Reduced by 25 basis points. Earlier it was 6.75%
Cash Reserve Ratio (CRR) 4.00% Unchanged - since 9th February 2013
Statutory Liquidity Ratio (SLR) 20.50% Effective from 1st January 2017
India and ADB Sign $175 Million Loan Agreement to help improve Solar Transmission
System
The Government of India and the Asian Development Bank (ADB) has signed a $175 million loan
agreement to support construction of high voltage transmission systems.
i. The project will improve the capacity and efficiency of interstate transmission networks,
particularly in transmitting the electricity generated from the new solar parks to the national grid.
ii. The loan will be given to the Power Grid Corporation of India Limited (POWERGRID).
iii. Apart from the mass departure of 2,500 megawatts(MW) of power from solar parks in Bhadla,
Rajasthan, and 700 MW from Banaskantha, Gujarat, POWERGRID is also including two additional
subprojects that will increase solar power generation by 4.2 gigawatt and lessen carbon emissions
by over 7 million tons every year.
Indias growth accelerate to 7.4% in 2017-2018

India recorded a growth rate of 7.4% in this fiscal year and it expects to be 7.6% in the next
financial year.
i. Despite the effect demonization Indias growth grew from 1% to 7.4%. India is the fastest
growing economy ahead of China mentioned by the ASIAN DEVELOPMENT BANK (ADB).
ii. With the ban of 500 and 1000 currencies it was supposed that Indias growth rate would reduce
at a high margin but all speculations went wrong and our economy recorded the fastest
growing economy.
RBI allow banks to invest in REITs And InvITs and enables faster money transfer by
finetuning NEFT Network
i. Banks will be allowed to invest in Real estate investment trusts (REITs)and Infrastructure
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investment trusts (InvITs) by RBI. These trusts are a structured business model for
entrepreneurs and corporates to convert their capital locked in assets through issue of units to
investors.
ii. Banks which are currently allowed to invest 20% of their Net-owned funds in equity,
mutual funds, venture capital funds, and stocks may invest in these trusts within this limit.
iii. RBI enables faster money transfer by finetuning NEFT (National electronic Funds
Transfer)network by increasing the number of cycle to 23 from current 12 to allow faster
settlement of funds and more funds to settle in a day.
Ban on cash transactions of over Rs 2 lakh not applicable for withdrawals

The Income Tax Department clarified that the Rs 2 lakh cash transaction limit will not be
applicable on withdrawals from bank, cooperative bank or a post office savings account.
i. Section 269ST in the I-T Act, the Central Board of Direct Taxes (CBDT) said the restriction
shall not apply to withdrawal from banks and post offices.
ii. To control black money all over India , the government has fixed the top limit of Rs 2 lakh on
cash transactions, which is lower than the Rs 3 lakh proposed in Budget 2017-18. The penalty for
violating this is a fine equivalent to the amount of transaction.
HDFC Bank launches its UPI on Indias first multi bank payment app, Chillr
Private Sector Lender. HDFC Bank Ltd., announced the launch of its Unified Payments Interface
(UPI) on Chillr. Henceforth the HDFC Bank UPI will be available on Chillr, in addition to the banks
Mobile Banking app.
i. Nitin Chugh, Country Head- Digital Banking, HDFC Bank launched its UPI on Chillr
with Mr. Sony Joy, Co-Founder and CEO, Chillr, in the presence of senior officials of HDFC
Bank in Mumbai.
ii. Functionalities of the UPI like linking a mobile number on contacts list to a bank account,
sending money out, collect requests etc.
iii. Chillr will be allowed to link bank accounts from 44 banks which are on the payments platform
due to this deal.
RBL bank opens IFSC banking unit in GIFT city

RBI has allowed PUBLIC and PRIVATEsector banks to open an IFSC banking units at GIFT
city to undertake foreign exchange transactions with residents and non-residents Institutions.
i. RBL bank announced the opening of its IFSC banking unit at Gujarat International History of
RBL Bank Finance Tec-city called Gift city.
ii. Under this system IFSC banking units (IBU) will give RBL bank access to international financial
market and bank will offer a range of products and services to their clients.
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iii. Through this system RBL will raise foreign currency funds to meet its requirements in IBU and
fund offshore subsidiaries of Indian companies.
South Indian Bank & Flyworld Money in pact for transfer of funds
South Indian Bank made an agreement with Flyworld Money Exchange to facilitate
remittances by Indian migrants in Australia.
i. NRIs in Australia could enjoy quick and cost-effective remittances to India using the SIB
Express facility. Using this facility, NRIs can now remit funds with ease to any commercial bank
in India.
ii. SIB marks the first remittance arrangement with an exchange house in Australia by this
agreement. SIB also has a correspondent banking arrangement with National Australia Bank for
remittances to India.
iii. Customers as well as non-customers can use this facility through the Flyworld Money
Exchange across Australia or use the online platform provided by the exchange house to make
remittances to India.
FINO Paytech inks deal with ICICI group companies to distribute insurance products
FINO Paytecha primarily a business correspondent received a license to launch a Payments Bank
by RBI. It inked a deal with ICICI group companies to distribute Insurance products and also tied
up with Exide Life Insurance to sell products through distribution channel.
i. FINO Payments Bank will sell Life and General insurance products of ICICI Prudential and ICICI
Lombard.
ii. The Payments Bank will launch its operations with 3-4 products which include current and
saving account, Business correspondent lending, remittances and insurance.
ESAF Small Finance Bank launches social deposit scheme Hrudaya deposit
ESAF Small Finance Bank has launched a social deposit scheme called Hrudaya Deposit.
i. The deposit scheme is related with social cause through which ESAF bank provides the
customers an opportunity to be a part in social welfare projects.
ii. In this scheme whosoever customer deposit in it will become a part in national building.
iii. Their deposits are used for the welfare and infrastructure developments of the underdeveloped
sections of the society.
iv. An individual or a legal entity can join the Hrudaya deposit scheme with a minimum deposit
amount of Rs 15 lakh and for a minimum period of 2 years.
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Align Bank Pay to that CPSESs : Bank Board Bureau

The Bank Board Bureau has recommended that government bring reforms in the compensation
process in Public Sector Banks similar to Central Public Sector Enterprises (CPSEs).
Major Highlights:
i. BBB set up in Aril 2016 to select board members including MD & CEO in PSBs put out the list
that was submitted to the government on its website.
ii. To attract high quality talent for non-executive directors and chairman, BBB suggested a
platform with the private sector in relation to role, responsibility and remenuration.
Manappuram Finance launched co-branded prepaid cards with Yes bank

To promote financial transactions the Kerala based NBFC Manappuram Finance with launch its
own prepaid cards. It tied-up with Yes bank.
Major Facts:
i. In Manappuram YES bank prepaid money cards having the maximum amount is Rs
50000 and it can also be used for online transcations with Pos terminals.
ii. The company will issue the prepaid cards for 20 lakh customers.It also links their existing gold
loan accounts to the card.
Postal Dept, SBI join hands to promote cashless transactions

The Department of Posts has joined hands with the State Bank of India to promote cashless
transactions like 'SBI buddy e-wallet' and POS machines.
i. Swain said the installation of SBI Buddy e-wallet and POS Machines will make the
transactions easy through digital payments and cashless transactions in post offices.
ii. PK Swain, Chief Postmaster General, Punjab Circle and Anil Kishora, Chief General Manager,
SBI, Chandigarh dedicated SBI buddy e-wallet and SBI POS machines at Chandigarh General Post
Office for the general public.
Amazon gets RBI nod for e-wallet in India

RBI has given an approval to Amazon India to launch its own digital wallet or pre-paid
payment instrument (PPI) in India. This move by the RBI is believed an Amazon to enter Indias
fast-growing digital payments business.
i. Amazon had launched its Pay Balance service in order to boost cashless transactions.
ii. Amazon mentioned that their focus is providing customers a convenient and trusted cashless
payments experience.
World Bank approves $375-mn loan for Indias first waterway project
World Bank has approved a $375 million loan to India for developing its first waterway project
- The National Waterway 1. Under this project, a navigable stretch of 1360 km will be
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developed on River Ganga from Varanasi (in Uttar Pradesh) to Haldia (in West Bengal). The loan
has maturity of 17 years and grace period of 7 years.
Pradhan Mantri Mudra Yojana tops target for 2016-17 loans cross target of Rs 1.8 lakh
Crore
Pradhan Mantri Mudra Yojana (PMMY) was announced by Finance Minister Arun Jaitley in the
Union Budget for financial year 2016.
Loans extended under the PMMY during 2016-17 have crossed the target of Rs 1.8 lakh
crore.
It is an institution that would support the small entrepreneurs of India in the biggest
possible way to help the Indian economy grow and prosper
Estimated numbers of borrowers were more than 4 crore.
Income Tax department launches 'Operation Clean Money-II to probe 60,000 people
On April 14, 2017, the Income Tax department launched second phase of Operation Clean
Money under which it will probe over 60000 individuals including 1300 high risk individuals.The
Income Tax Department had carried out first phase of Operation Clean Money from January 31,
2017 to February 15, 2017, under which it conducted e-verification of large cash deposits made
during the demonetisation window from November 9, 2016 to December 30, 2016.
The threshold for e-verification was cash transactions of Rs. 5 lakh and above. As a
result, nearly 18 lakh individuals were identified who undertook cash transactions which
were not in line with their Income Tax Returns.
Such individuals were asked to provide justification for their transactions through an
online portal enabled by Income Tax Department (ITD) within 10 days.
Target Group for Operation Clean Money II:

Businesses such as petrol pumps, hospitals and other essential services which have deposited
much higher amount of cash during note ban period as compared to the previous period.
Central and State Govt. employees including PSU employees who made large cash
deposits.
High Value Purchasers.
RBI tightens screws on banks to ease bad debt

To ease bad debt in the system, Reserve Bank of India (RBI) had promised to come up with
stringent measures while releasing the first bi-monthly monetary policy statement for 2017-18
last week.
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On April 14, 2017, the RBI has come out with a revised Prompt Corrective Action (PCA)
framework for banks which will be effective from April 1, 2017. This framework is based on
certain risk thresholds, the breach of which could result into serious consequences such as
merger with another bank or even closure of the bank.
Financial reports of banks as on March 31, 2017 will be considered as reference to
evaluate banks condition vis-a-vis the thresholds. This new framework will be reviewed after
three years.
Triggers for breach of Risk Threshold 1:
Capital Adequacy Ratio (CAR) falls below 10.25% or common equity tier I (CET1)
capital ratio falls below 6.75%
Net Non-Performing Assets (NPA) rises above 6%
Leverage Ratio falls below 4%
Two consecutive years of negative Return on Assets (RoA)
Capital Adequacy Ratio (CAR) falls below 7.75% or common equity tier I (CET1)
capital ratio falls below 5.125%
Net Non-Performing Assets (NPA) rises above 12%
Leverage Ratio falls below 3.5%
Three consecutive years of negative Return on Assets (RoA)
Common Equity Tier I (CET1) capital ratio falls below 3.625% in combination with
NPA above 12%
Four consecutive years of negative Return on Assets (RoA)
IRDAI unveils portal for insurers to sell policies online

All the Insurance companies, Brokers and Corporate agents now can sell insurance policies
through online platform.
i. IRDAI has now launched an online portal for insurance companies and allow them to register
and sell policies through online mode.
ii. The portal name is isnp.irda.gov.in
iii. Now, Insurers and intermediaries can create a login credentials for registration and
submit Insurance Self Networking Platform (ISNP) application online or on the portal.
Bank Boards Bureau evolves GRAF for PSBs

The Bank Board Bureau (BBB) has developed a Governance Reward and Accountability
(GRAF)framework for the public sector banks.
i. GRAF is framed so that PSBs can compete efficiently with Private sector banks, small finance
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banks and foreign banks and NBFC.

ii. It is based on the advanced global benchmark on governance practices.
Indias Economy will grow by 7.2% in 2017-2018 predicts World Bank

World Bank predicts Indias gross domestic product (GDP) to 7.2% in the 2017-2018 from
6.8% in this fiscal year.Title of the World Bank report is Globalization Backlash.
i. According to Globalization Backlash Indias economic growth will rise to 7.7% in 2019-2020.
ii. Exports to grow by 6% in the coming year.
iii. Inflation to grow by 5.2% in 2017-2018 and 5.4% in 2018-2019
Finance Ministry approves 8.65% interest rate on EPF

EPFO( Employess Provident fund Organisation) has decided to reduce the interest rate on
Provident Fund Deposits to 65% from 8.8%.
i. It has been done because RBI has cut their lending rates and banks have reduced their deposit
rates.
ii. Loyalty cum benefit would be provided to all subscribers who have contributed to the scheme
for 20 years or more on retirement.
iii. Around 17 crore subscribers accounts will be updated with this interest rate.
Current account deficit to widen to 1.6% from 0.5% of GDP : Nomura

Indias Current Account Deficit is expected to grow by 1.6% from 0.5% in this fiscal year.
i. Overall the stonger global demand and higher export prices are key factor of the exports
recovery.
ii. FDI inflows around 2% of GDP..
iii. The major reason of strengthening Indian economy is the appreciation of the Indian rupee.
iv. The difference between the value of Imports of Goods, services and investment incomes with
that of exports increased to $7.9 billion or 1.4% of GDP.
SBI surpasses ONGC to become most valued PSU stock

State Bank of India (SBI) surpassed ONGC to become the most valued public sector
undertaking (PSU) state-owned firm in terms of market valuation.
i. The shares of SBI rose by 2.33 per cent to Rs 296.40 and ONGC lost 1.36 per cent to Rs
180.60.
ii. SBI surged almost 16 per cent while that of ONGC fell by over 4 per cent.
iii. SBI m-cap stood of Rs 239,808 crore and ONGC having m-cap of Rs 236,003 crore.
PNB launches new products for customers on its foundation day

Punjab National Bank (PNB) has launched three new products for its customers on the occasion
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of 123rd foundation Day.

i. PNB MD and CEO UshaAnanthasubramanian launched the three products.
ii. The three new products which are launched by PNB are automated electronic toll collection
to facilitate hassle-free toll payment collection, a Credit card Mobile App and a scheme
for financing a grid connected Roof Solar Power Project.
iii. To assist PNB employees to do their HR-related operations through their mobile phones.
RBI, Royal Monetary Authority of Bhutan ink MoU to share information

A new Memorandum of Understanding has signed between The Reserve Bank of India (RBI) and
the Royal Monetary Authority of Bhutan.
i. It was signed by RBI Deputy Governor S SMundra and Royal Monetary Authority of Bhutan
Deputy Governor PhajoDorjee.
ii. RBI has signed 39 such MoUs One Letter for Supervisory Co-operation and One Statement of
Co- operation.
RBI opens new Ombudsman office for Chhattisgarh and Jammu

The Reserve Bank has started a new office at Raipur for Chattisgrah and for
Jammmu.Focus is to look into the grievances of residents and entities.
IMF trims India's growth forecast to 7.2 per cent for 2017
In the latest World Economic Outlook (WEO), International Monetary Fund (IMF) has cut
down Indias growth forecast for year 2017 by 0.4 percentage points to 7.2 %.
i. For Fiscal Year 2016-17, it has pegged Indias growth at 6.8%. The report states that
demonetisation drive by the Govt., affected the cash flow in the system and disrupted the
consumption pattern in India.
ii. However, as per the report, Indias growth prospects in medium term are favourable. If
reforms are carried out as per the plans and supply-side concerns are addressed, Indias growth
rate is expected to be 8% in the medium term.
ICICI Bank data centre becomes countrys first CII-IGBC platinum rated project
ICICI Bank Data Centre has become countrys first Platinum rated project under IGBC Green Data
Centre Rating System.
i. Main objective of becoming partner with IGBC is to bring the Green Building movement in
the country.
ii. IGBC Green Data Centre Rating System would provide tangible and intangible benefits.
iii. Tangible benefits include 20 to 25 per cent reduction in Power Usage Effectiveness and 25 to
30 per cent reduction in water consumption.
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RBI caps banks exposure to REITs, InvITs at 10%

The RBI has allowed banks to invest up to 10 per cent of the unit capital of a Real Estate
Investment Trust (REITs) or Infrastructure Investment Trusts (InvITs).
Key Points:
i. In its first bimonthly monetary policy of 2017-18, the RBI had permitted banks to invest in
REITs and InvITs.
ii. It main objective is to help strenghten the cash-starved infrastructure sector.
iii. Introduction to REITs/InvITs will be within the overall ceiling of 20 per cent of the net
worth.
iv. Banks are permitted for direct investments in shares, convertible bonds/ debentures, units of
equity-oriented mutual funds and Venture Capital Funds (VCFs).
v. SEBI has kept regulations for REITs and InvITs and allow banks to invest in these schemes.
India contributes USD 250000 to election assistance division of UN

India contributes USD 250000 to the United Nations programme for helping countries to hold
elections and develop their electoral systems.
i. India has done a second contribution of USD 250000 to the programmes for electoral assistance
and capacity building.
ii. The first contribution has been done in the year 2012.
iii. EenamGambhir, the first Secretary in India's Mission to the Unite Nations presented
the cheque to Kyoko Shiotani Chief of the Office of the Under-Secretary-General at the UN
Department of Political Affairs.
RBI, Bank of Guyana sign MoU for supervisory exchange of information

The Reserve Bank of India (RBI) has signed an MoU with the Bank of Guyana on "Supervisory
Cooperation and Exchange of Supervisory Information".
i. It was signed by Dr Gobind N. Ganga, Governor on behalf of Bank of Guyana and Dr Urjit R.
Patel, Governor on behalf of Reserve Bank of India.
ii. RBI had signed 40 such MoUs, one Letter for Supervisory Co-operation and one Statement of
Co-operation.
AU Financiers converts to small finance bank from a NBFC

Au Financiers India is a non-banking finance company that has converted into a small
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finance bank and called AU Small Finance.

i. AU obtained a fresh certificate of incorporation from the Corporate Affairs Ministry on April 13.
ii. It also got license from RBI on April 19 for the commencement of operations of this
small finance bank.
Fino Paytech to help NABRAD digitise rural banks across 5 states

Payment Technology company will going to launch Payments bank FinoPaytech.It helps to
facilitate NABARD to help the rural bank digitization drive in the states of Haryana, MP, Bihar,
Gujarat and Maharashtra.
i. Fino will provide over 5000 Aadhaar enabled micro ATMs.
ii. Its main motive is to help rural masses with Aadhaar enabled micro ATMs as they facilitate
eKYC, paperless and instant banking.
iii. It also provides financial inclusion gateway services to district central cooperative (DCC) banks
and Primary Agricultural Credit Societies (PACS) across these states.
India tops global remittances at $62.7 billion in 2016 - World Bank

As per Migration and Development Brief released by World Bank, India is worlds largest
remittance recipient for the year 2016. Remittance inflows to India amounted to $62.7 billion in
2016. However, there has been a drop of 8.9% as compared to $68.9 billion received in 2015.
Remittance Scenario in India - 2016:
Gulf countries like Kuwait and Saudi Arabia have huge clusters of migrant Indian
population who regularly remit money to India. Decline in remittances to India can be
attributed to drop in oil prices and fiscal tightening in Gulf countries.
In 2016, remittances accounted for 9% of Indias Gross Domestic Product (GDP).
State wise, remittances to Kerala accounted for 36.3% of the net state domestic
product.
Top 5 Largest Remittance Recipients in 2016:
Country Remittance Amount in 2016
India $62.7 billion
China $61 billion
Philippines $29.9 billion
Mexico $28.5 billion
Pakistan $19.8 billion
Govt extends date for filing tax declarations under PMGKY till May 10
Filing of declarations about tax payment and deposits under Pradhan Mantri Garib Kalyan
Yojna (PMGKY ) has been extended up to May 10 for black money holders.
i. The Central Board of Direct Taxes (CBDT) has extended to May 10,2017 about filing of
declaration where tax, surcharge and penalty under PMGKY has been paid on or before the 31st
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March and deposit under the Deposit Scheme has been made on or before April 30.
ii. The deposits can be made in the form of cash or in an account with bank or post office or
specified entity, with a tax, surcharge and penalty totaling up to 49.90 per cent.
First digital village inaugurated in Arunachal Pradesh

Nirjuli village-1 in Papum Pare district was declared as the first digital village of Arunachal
Pradesh.
i. It aims to improve connectivity to speed up socio-economic development of the masses.
ii. To benefit the masses and reduce their dependence on banks.
iii. It aims to give financial support to the villagers to improve their income level.
Sovereign gold bonds priced at Rs 2,901 per gm, issue opens on April 24, 2017
First tranche of Sovereign Gold Bonds Scheme for the year 2017-18 has opened for
subscription from April 24, 2017.
Details about Sovereign Gold Bonds Scheme 2017-18--Series I:
1. Subscription Date: 24 -28 April, 2017
2. Bonds Issue Date: May 12, 2017
3. Issue Price: Rs. 2901 per gram of gold - includes a discount of Rs. 50/gram on nominal
value.
4. Tenure: 8 years
5. Interest Rate: 2.75% per annum, payable every 6 months on initial investment.
6. Exit Option: From 5th year onwards, to be exercised on interest payment dates
7. Denomination and Limits: Minimum Unit of 1 gm and maximum of 500 gm per person
per fiscal
8. Sold By: Banks, Post Offices, Stock Holding Corporation of India (SHCIL), National Stock
Exchange (NSE) and Bombay Stock Exchange (BSE)
SBI, CREDAI ink MoU for concessional loan for housing projects
SBI and CREDAI have signed an agreement to provide loans at a concessional rate to builders
as well as customers for affordable housing projects.
i. SBI and CREDAI have signed a memorandum of understanding (MoU) to collaborate and work
towards the development of the real estate sector.
ii. The duration of the agreement is for a period of three years.
iii. SBI is a major player in home loans segment with 25 per cent market share.
iv. Memorandum of understanding has signed for the affordable housing and green housing
projects.
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v. SBI will provide 10 basis points concession to home buyers and 10-35 basis points to
CREDAIs developer members.
GIC Re becomes first re-insurer to set up base in GIFT City

GIC Re has become the first re-insurer company to open an office at Indias first International
Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City).
i. GIC Re is a wholly-owned by the government and its main focus on the growth of general
insurance business in the country.
ii. GIC Re becomes the first insurance company to sets up base in GIFT City, Gujarat.
iii. Chairman-cum-Managing Director of GIC Re is Mrs. Alice G Vaidyan.
Yes bank ties up with Palsabazzar.com

Yes Bank, a Private sector lender has announced a tie up with Paisabazaar.com. Under which
the bank will offer conditionally approved loans to the existing customers.
i. It aims is to make the process of availing a loan easy and act as a one stop financial solution
provider for all retail lending needs of the customer.
ii. The bank will help through its advanced analytics and data mining capabilities.
iii. It offers customers financial marketplace with customized and conditionally approved offers
across retail lending products.
RBI to issue new Rs 5 and Rs 10 coins

The central bank of India the Reserve Bank is set to issue new Rs 10 and Rs 5 coins.
Rs 10 Coin has been minted to celebrate 125th year of National Archives of India.
Rs 5 coins to celebrate 150th anniversary of Allahabad High Court.
These coins are legal tender as provided in The Coinage Act 2011.
On the reverse of the Rs 10 coin there will be an image of National Archives Building in
the centre with inscription 125 YEARS below the image.
The year 1891 and 2016 in English shall be written on the upper and lower periphery
of the coin respectively.
The year 1916 and 2016 in international numerals shall be written respectively on
left and right top of the image.
The Rs 5 coin face will bear an image depicting centre facade of Allahabad High Court
Building emerging from the book.
The face of the Rs 5 and Rs 10 coins shall bear the Lion Capitol of Ashoka Pillar
in the centre with the legend "" inscribed below.
On the left margin with the word "" in Devanagari script and on the right
margin with the word "INDIA" in English.
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RBI issues new draft rules for M&As

In accordance with the rules notified by Union Ministry of Corporate Affairs through Companies
(Compromises, Arrangements and Amalgamation) Amendment Rules, 2017 the Reserve Bank of
India (RBI) on 26 April 2017 issued draft guidelines on cross border Merger and Acquisitions
transactions.
i. The draft regulations will be known as 'Foreign Exchange Management (Cross Border
Merger) Regulations'.
ii. RBI proposed these Regulations under the Foreign Exchange Management Act, 1999 (FEMA).
iii. The regulation makes reporting of any cross-border activity mandatory within 180 days from
the date of sanction.
MFIN launches financial literacy app for microfinance clients

Microfinance Institutions Network (MFIN), a self-regulatory organization and industry
association of the microfinance industry in India launched the financial literacy mobile app for
microfinance clients on April 25, 2017.
About MFINs Financial Literacy Mobile App:
i. The financial literacy app has been released on Android platform and will be available in Hindi,
Marathi, Telugu, Tamil and English.
ii. It will help microfinance clients in understanding dynamics involved in microfinance including
credit history, interest rates, repayment cycles and their rights as a borrower
SEBI makes P-Note norms stricter to curb black money in markets

Securities and Exchange Board of India (SEBI) has barred resident as well as non-resident
Indians (NRIs) from making investments through participatory notes (P-Notes).
i. This restriction has been imposed through a new provision in the Foreign Portfolio
Investment (FPI) regulations.
ii. The objective behind this decision is to prevent the misuse of P-Notes for routing domestic
black money. Under current regulation, this restriction was in the form of FAQ. On insistence of
Finance Ministry, SEBI inserted this new provision to clearly reflect the norm.
Paytm Launches Digital Gold, Makes Gold Investment Digital

Paytm launched Digital Gold on its platform to allow customers to buy and sell gold
through electronic platform.
i. It is the first wealth management product that was launched in partnership with gold
refinerMMTC-PAMP.
ii. It offers a real-time international pricing mechanism for the customers.
iii. To avail the benefit of the gold scheme Consumers need to provide KYC details who are
transacting over Rs 20000 through Paytm.
iv. Customers can buy and sell gold either by money (starting Re 1) or by weight (starting 0.1
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gram).
v. Using Paytm mobile wallets, consumers can purchase 24K 999.9 purity gold online.
GST to push Indian growth to over 8%: IMF

International Monetary Fund has mentioned the Goods and Services Tax(GST) to be
implemented from July 1, 2017
i. GST would help raise Indias medium-term growth to above 8%.
ii. Indian Government has made significant progress on economic reforms.It will support strong
and sustainable growth.
iii. Indias is the fastest growing emerging market economy and IMFs believes that India is going
to continue to grow at fast pace with a projected 6.8% rate for 2016-2017, 7.2% 2017-2018.
Panchayat Ward in Kottayam becomes Indias first digitalised ward

This small Panchayat ward in Kerala has become the first one to go digital in the country.
i. It fulfills Prime Minister Narendra Modi's dream of transforming India into a digitally empowered
society.
ii. The website also contains information about blood donors' forum and telephone directory of the
people of the ward.
Need to file your FATCA compliance to banks by April 30 to avoid an account freeze
As per a new financial norm, all bank accounts opened between July 1, 2014 and August 31,
2015, as well as investments made during this period in mutual funds and Insurance schemes will
freeze if FATCA compliance has been not filed by April 30, 2017.
i. FATCA compliance is basically a self-declaration to provide details about account holders tax
residency to the financial entity.
ii. It is mandatory for individual as well as non-individual account holders and investors.
RBI says ARCs must have minimum NOF of Rs100 crore by 2019
On April 28, 2017, Reserve Bank of India (RBI) said that all the existing asset
reconstruction companies (ARCs) must have a minimum Net Owned Fund (NOF) of Rs100
crore by March 2019.
i. As per amended SARFAESI Act, 2016, no ARC can commence or carry on the business of
securitisation or asset reconstruction without having Net Owned Fund of not less than Rs 2
crore or such other higher amount as the Reserve Bank may, by notification, specify.
ii. Asset Reconstruction Companies (ARCs) buy out non-performing assets (NPAs) and manages it
to make it profitable. In the current scenario, Central Govt. and RBI are envisaging an important
role for ARCs in dealing with stressed assets in the system.
iii. Minimum NOF of Rs 100 crore for ARCs was proposed by RBI in the first bi-monthly monetary
policy review for FY 2017-18.
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Banking & Finance Awareness May 2017

RBI announces rate of interest on Floating Rate Bonds, 2024
On May 5, 2017, Reserve Bank of India announced that rate of interest on the Floating Rate
Bonds, 2024 (FRB 2024) for the half year May 7, 2017 to November 6, 2017 has been fixed
at 6.30% per annum.
This rate is the average rate of the implicit yields (computed by considering 365 days in a
year) at the cut-off prices of the last three auctions of Government of India 182 day
Treasury Bills held up to May 7, 2017.
RBI makes substantial changes in norms for dealing with stressed loans
The Reserve Bank of India has released a notification through which it has introduced substantial
changes in norms for dealing with stressed loans.
This move comes on the back of Governments ordinance to amend the Banking Regulation
Act which has authorised RBI to issue directions to any banking company or banking
companies to initiate insolvency resolution process in respect of a default under the
provisions of the Insolvency and Bankruptcy Code (IBC), 2016.
Major Changes introduced by RBI for dealing with stressed loans:
To enable timely decision making, RBI has been decided that, now onwards the
decisions agreed upon by a minimum of 60% of creditors by value and 50% of
creditors by number in the Joint Lenders Forum (JLF) would be considered as the
basis for deciding the Corrective Action Plan (CAP) under the 'Framework for
Revitalising Distressed Assets in the Economy. Earlier the decision for CAP
depended upon agreement by a minimum of 75% of creditors by value and 60% by
number.
The banks have been directed to provide appropriate mandates to their representative
on JLF for implementing the decisions. In addition to this, the board of the bank should
also empower their executives to implement the decision without any approval.
Banks should implement the decision of JLP within the stipulated time of 90 days.
Failing to do so will attract monetary penalty.
President promulgates ordinance on empowering RBI on bad loans resolution

To initiate insolvency proceedings for the recovery of bad loans the government gave wide-
ranging legislative powers to the Reserve Bank of India (RBI) to issue directions to lenders.
Key Points:
i. Non-performing assets (NPAs) or bad loans of public sector banks (PSBs) have reached at a
very high level over Rs 6 lakh crore in sectors such as power, steel, road infrastructure and
textiles.
ii. The much-awaited ordinance to amend the Banking Regulation Act was announced by
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President Pranab Mukherjee.

iii. Under this Reserve Bank to issue directions to any banking companies to initiate insolvency
resolution process in respect of a default under the provisions of the Insolvency and
Bankruptcy Code (IBC), 2016.
FinMomenta launches peer-to-peeronline lending platform Tachyloans

Singapore based Fintech startup FinMomenta has announced the launch of Tachyloans. It is a
first digital lending platform in India for individuals as well as businesses.
Key Points:
i. Tachyloans is a credit scoring model which is used to assess the creditworthiness of applicants.
ii. It provides the fastest digital lending platform in India.
iii. Borrowers can avail loan at lower interest rates starting from 11.5 percent per annum.
iv. It verifies by using the KYC (Know Your Customer) documentation provided, and qualifies
them through their credit decision model.
v. It provides products like education loans, medical loans and wedding loans besides personal
loans.
AIIB grants $160 million for Andhra Pradesh power project

Asian Infrastructure Investment Bank has approved $ 160 million loan for a power project
in Andhra Pradesh.
Key Points:
i. India is the second largest shareholder of Asian Infrastructure Investment Bank (AIIB) after
China.
ii. Its aim is to strengthen the power transmission and distribution system in Andhra Pradesh.
iii. DJ Pandian is the Vice President and Chief Investment Officer of the AIIB.
iv. Andhra Pradesh is one of the first states to be selected for this programme.
v. It helps in improving system reliability and also helps in improving the commercial performance
of the states distribution companies.
$770 billion Worth of Black Money entered into India during 2005-2014: GFI
As per a latest report titled Illicit Financial Flows to and from Developing Countries: 2005-
2014 compiled by US-based think tank Global Financial Integrity (GFI), an estimated $770
billion in black money entered India while $165 billion exited the country during 2005-2014.
i. The report stated that during 2014 alone, the inflow of black money was about $101 billion
while the outflow was $ 23 billion.
ii. The inflow of $ 770 billion was 14% and outflow of $165 billion was 3% of Indias
total trade of $ 5,500 billion during the 10-year period.
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Ujjivan Small Finance Bank commences operations in Pune

Ujjivan Small Finance Bank has started its operations in Pune. Its total branches now come to
30 across the country.
Key Notes:
i. It has started its operations from 4 locations. The four locations are Swargate, Pimpri, Akurdi
and Hadapsar.
ii. It provide services like doorstep banking, mobile, internet and phone banking, access
to biometric ATMs and Aadhar enabled debit cards.
iii. It offers savings bank account with no charges for minimum balance.
ADB Predicts 7.4 percent growth for Indian Economy this Fiscal
Asian Development Bank predicts 7.4% in the current fiscal year 2017-18 and 7.1% in the
fiscal year.
Key Points:
i. It is projected by ADB that India market is more deregulated and have open the paths to
welcoming to FDIs.
ii. One of the reasons of Asian economies growth is that they have enjoyed from open free trade
system.
iii. The overall export performance of India is also become positive day by day.
iv. ADB forecast 7.6% growth for next year.
SEBI finalises norms for listing of Green bonds

Securities and Exchange Board of India has finalised norms for issuance and listing of green
bonds.
Key Facts:
i. It will help in raising funds from capital markets for investment in the renewable energy.The
rules have been finalised by the SEBI.
ii. After taking into account inputs from the Finance and Environment ministries from the Ministry
of New and Renewable Energy.
iii. A green bond is like debt instrument issued by an entity for raising funds from investors.
iv. Green bonds help to meet an ambitious target India has of building 175 gigawatt of
renewable energy capacity by 2022.
ICICI to make 600 villages digitally-enabled in 2017

On May 2, 2017, ICICI Bank said it has made 100 villages digitally-enabled in 2017 and
plans to transform 500 more by the year-end.
i. The 100 villages which have been transformed into 'ICICI Digital Villages' are located across
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17 states in India.
ii. These include 16 in Gujarat, 14 each in Maharashtra and Madhya Pradesh, 12 each
in Tamil Nadu and Karnataka and 11 in Rajasthan among others.
iii. Finance Minister Arun Jaitley inaugurated the 100 ICICI digital villages and said
"The ICICI initiative should be followed by other banks in rural areas."
Edelweiss Tokio launches India's first insurance that can be bought at PoS
Edelweiss Tokio Life Insurance has launched Indias first insurance product that can be bought
at a point of sale (PoS). The product has been named PoS Saral Nivesh. It is the first product
to be approved by the Insurance Regulatory and Development Authority of
India's guidelines on point of sale-life insurance products.
i. In November 2016, Insurance Regulatory and Development Authority of India had
issued Guidelines on Point of Sales Life Insurance Products in order to facilitate access
to insurance products for general public and increase the overall penetration of insurance.
ii. In the guidelines, it has been directed that for all PoS products, the benefits have to be
predefined and disclosed upfront at the time of sale itself. Moreover it should be very simple to
understand.
RBI extends BBPS deadline by seven months

On May 9, 2017, Reserve Bank of India (RBI) extended the deadline for companies
undertaking billing business under the Bharat Bill Payment System (BBPS) by seven months
to December 31, 2017.
i. The extension has been granted on account of difficulties expressed by various entities in
meeting the deadline.
ii. The extension is for those companies intending to become an agent of an authorised Bharat
Bill Payment Operating Unit (BBPOU) or wants to exit the business of bill payments
iii. As per the guidelines issued on November 28, 2014, for implementation of BBPS, banks and
non-bank entities, currently engaged in the bill payment activities covered under ambit of BBPS
can participate either as Bharat Bill Payment Operating Units (BBPOUs) or as an agent of an
authorised BBPOU.
SEBI allows subscription to MF schemes through e-wallets

Securities markets regulator Sebi has permitted subscription to mutual fund (MF) schemes
through e-wallets.
i. According to Sebi's guidelines, investors can invest up to Rs 50,000 per MF per financial year
through e-wallets.
ii. MFs/AMCs shall ensure that only amounts loaded into e-wallet through cash or debit card or
net banking, can be used for subscription to MF schemes.
iii. MFs/AMCs shall ensure that e-wallet issuers shall not offer any incentives such as cashback,
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voucher.
iv. MFs/ AMCs can offer IAF only in liquid schemes of the MF.
v. The monetary limit under IAF shall be Rs 50,000 or 90 per cent of latest value of investment
in the scheme, whichever is lower.
Union Road Transport Minister Nitin Gadkari launches NHAI's first masala bond in UK
The National Highways Authority of India (NHAI) has raised Rs. 3000 crore through
Masala Bonds at London Stock Exchange. Funds raised through these Masala Bonds will be
used for constructing roads and transport infrastructure in India.
i. The NHAI Masala Bonds issue was launched by Union Road Transport Minister Nitin
Gadkari on May 11, 2017, in London.
ii. Initially, issue size of NHAI Masala Bonds was Rs. 1500 crore. Owing to positive response from
investors, the issue size was raised to Rs. 3000 crore.These bonds will give 3% annual
returns to investors.
iii. It is the largest ever 5-year issuance and also the largest inaugural transaction so far in the
masala bond market.
Government asks NGOs to open bank accounts in core banking format

In a bid to keep a check on "errant" NGOs, especially those receiving foreign funding, Union Home
Ministry has asked as many as 5,845 organisations to open their accounts in banks having
core banking facilities. This will enable security agencies to have real-time access to all
relevant details.
This decision was taken as it was detected that most of the NGOs have accounts in cooperative
banks or State Govt. banks, which do not have core banking facility.
DIPAM launches online investor facilitation platform

The Finance Ministry has set up an "Investor Facilitation Platform". It will provide
information about stocks of public sector units.
Key Notes:
i. The platform that launched by the DIPAM is developed and maintained by PRIME Database.
ii. PRIME Database is India's first database that works for the primary capital market covering
fund raising by the Indian corporate sector and the Government through equity, debt or
securitization, in India or abroad.
LIC Housing Finance Launches New Home Loan Product Griha Siddhi'
LIC Housing Finance launches new home loan product Griha Siddhi
Key Notes:
i. Griha Siddhi will offer loans for construction, purchase of house or flat and repairs or renovation
to the existing properties.
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ii. It will offer interest rate

of 40 per cent up to Rs
25 lakh and for loans up
to Rs 1 crore the interest rate will be 8.50 per cent per annum for the borrowers.
iii. For women borrowers a special interest rate of 35 per cent for loans up to Rs 25 lakh.
RBI restricts loss making IDBI Bank from hiring, opening branches
The Reserve Bank of India (RBI) has initiated an action on IDBI Bank that will restrict bank
from hiring, opening branches and giving big ticket loans.
Key Notes:
i. The directions from the RBI is aimed at ensuring that the bank takes measures to cut down its
losses by reducing expenses and recovering problem loans from hiring, opening branches.
ii. IDBI Bank is the first bank against which the revised PCA has been implored..
IFSC at GIFT inks pact with GNLU to start course on IFSC regulations
India's first International Financial Services Centre (IFSC) and International Finance-Tec
City (GIFT) signed an agreement with Gujarat National Law University (GNLU).
i. It aims to collaborate on efforts for Skill Development in the field of International Financial
Services & Regulations.
ii. Under this new pact the GNLU will introduce a new course on International Financial Services
Centre.It will start from June 2017.
Disha Microfin gets final nod from RBI for Small Finance Bank
Disha Microfin has received the final license from Reserve Bank on 12th of May to operate
as a small finance bank.
i. The Bank will start operations from July this year. The bank will be called Fincare Small Finance
Bank.
ii. Its main focus will be on the priority sector and retail segments, and will additionally
offer products such as gold loans and affordable housing loans.
SBI revises service charges; to charge ATM withdrawals at Rs 25

State Bank of India the country's largest public sector lender has announced that it will
start levying charges of Rs 25 for every withdrawal done at its automated teller machine or
ATM kiosks.
i. The bank has also mentioned that it will also charge the amount for exchange of "sullied" notes
worth and above Rs 5,000.
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ii. All categories require Rs 5,000, Rs 3,000, Rs 2,000 and Rs 1,000 minimum balance to be
maintained to avoid suspension of the accounts.
India to grow at 7.7 per cent in 2018-19 - IMF

The International Monetary Fund has predicted India to grow at 7.7% in 2018-2019.
Indias growth is expected to 7.2 per cent in the 2017-18 fiscal year.
i. The main challenge before the Indian economy will be to improve agricultural productivity.
ii. According to the report, Asia will see a rise in growth from 5.3% in 2016 to 5.5% in 2017.
India is one of the countries that have excellently performing reforms.
Cashkaro.com ties up with YES Bank to launch card-linked offers

Private sector bank Yes Bank announced its tie-up with Cashkaro to launch Indias first Card
Linked Offers (CLO) cash-back proposition.
i. The new launch is an innovative customer loyalty platform that provides online and offline
shoppers on which shoppers can avail cash-back offers with personalized merchant deals.
ii. It is a fully automated program removing the need for additional coupon codes and merchant
integrations.
iii. Yes Bank along with CashKaro will launch the Card Linked Offers pan India.
UCO Bank faces business restrictions from RBI

Reserve Bank of India (RBI) has initiated "prompt corrective action" (PCA) on Kolkata-
based public sector lender UCO Bank on account of high bad loans and negative return on
assets.
i. After the recent revision of the "prompt corrective action" framework, UCO bank is the second
Bank after IDBI Bank against which PCA has been invoked by RBI.
ii. Exact details about PCA have not been revealed by UCO Bank, but it may include business
restrictions such as restrictions on big-ticket lending and branch expansion.
Indias GDP Growth Forecast for 2017 Revised Downward by UN

As per United Nations World Economic Situation and Prospects as of mid- 2017 report,
Indias Gross Domestic Product (GDP) growth forecast for FY 2017 has been revised
downwards to 7.3% as compared to 7.7% projection made in January 2017.
i. However, GDP growth forecast for FY 2018 has been revised upwards to 7.9% as compared
to 7.6% projection made in January 2017.

ii. The report mentioned that stressed balance sheets in Indian banking sector, will restrict the
restoration of investment cycle in the country.
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Kotak Mahindra Bank enables blockchain based trade financing operation

In a first of its kind transaction in India, Kotak Mahindra Bank enabled end to end trade
financing for one of its clients by applying the blockchain technology.
i. By utilising the blockchain technology, time for processing the letter of credit (LC) reduced
from 20-30 days to few hours. For this transaction Kotak Mahindra Bank had partnered
with Deloitte. JP Morgan Singapore was the partner bank.
ii. LC is a written commitment to pay by buyers/importers bank to sellers/exporters bank.The
LC guarantees payment when prescribed list of documents are provided by the seller/exporter
within the stipulated timeframe.
Economy to grow at 7.4% in FY18, says FICCI survey

As per latest Economic Outlook Survey by Federation of Indian Chambers of Commerce
and Industry (FICCI), Indian Economy is expected to grow at 7.4% for the fiscal year 2017-
18. The survey has also mentioned minimum level of 7.0% and maximum level of 7.6%.
This survey was conducted during March and April 2017.
Highlights of FICCIs Economic Outlook Survey:
Services sector is expected to grow by 4% in 2017-18.
Industry is expected to grow by 9% in 2017-18.
Agriculture sector is estimated to clock 5% growth.
For FY 2017-18, average growth in IIP has been forecasted at 0%. However, extreme
range has been mentioned as 1.5% minimum and 6.8% maximum.
Wholesale Price Inflation (WPI) has been projected at 5% with a minimum and
maximum range of 3.6% and 5.9% respectively.
Consumer Price Inflation (CPI) has been projected at 8% with a minimum and
maximum level of 4% and 5.3% respectively.
HDFC Life inks distribution tie-up with Catholic Syrian Bank

HDFC Life has tied up with Catholic Syrian Bank. It includes selling of life assurance and other
insurance products and services by banking institutions.
i. It aims to distribute its individual life insurance products to the private lenders
customers.
ii. HDFC Life will offer its leading range of individual life insurance, health and pension products to
the Catholic Syrian Banks 1.5 million customer base across all its branches over a period of time.
RBI issues new branch expansion norms

To promote financial inclusion, the Reserve Bank of India (RBI) has allowed the opening of
mini branches or banking outlets across the country without taking permission from the
regulator.
i. It is applicable to all domestic scheduled commercial banks except Regional Rural
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Banks.
ii. According to RBI norms banks need to open atleast 25 per cent of their banking outlets in
a year in unbanked rural centres.
iii. The RBI also clarified that ATM kiosks, cash depositing counters and mobile branches will not
be treated as banking outlets.
iv. RBI also mentioned that the first branch opened in a tier five or tier six city will be counted as
a banking outlet.
Karnataka Bank and LIC ink pact

Karnataka Bank Ltd has signed a Memorandum of Understanding (MoU) with Life Insurance
Corporation (LIC) of India for selling life insurance products of LIC.
i. With this MoU the bank will provide the abundance choices of life insurance products to its
customers across all its 769 branches.
ii. The bank signed the corporate agency agreement with LIC in Mangaluru, Karnataka.
HDFC Life launches AI-based insurance email bot 'SPOK'

HDFC Life has announced the launch of an artificial intelligence-based application named
SPOK.
i. It can automatically read, understand, categorise, prioritise and respond to customer emails
sent to the private insurer.
ii. SPOK is an insurance email bot that can read customer queries within milliseconds and
respond to them.
iii. The email Bot is built on cutting-edge Artificial Intelligence and Natural Language Processing
technologies
iv. HDFC Life has collaborated with Senseforth. It is a startup that offers a wide range of
enterprise bots built on its artificial intelligence (AI) platform
Paytm launches Payments Bank

Paytm launched its Payments Bank on May 23, 2017, and thereby became third entity (after
Airtel Payments Bank and India Post Payments Bank) to commence operation as Payments Bank.
However, services of Paytm Payments Bank are currently available only via invitation.
More Details about Paytm Payments Bank:
The first physical branch of Paytm Payments Bank is in Noida.
Over the next two years, Rs. 400 crore will be invested to build the banking network. One97
Communications (Paytm Payments Banks parent company) has already invested Rs. 220 crore.
*Renu Satti as the CEO of Paytm Payments Bank.
Federal Bank launches new trading platform 'Selfie'

Federal Bank has launched a new trading platform called Selfie for customers.
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i. Federal bank has launched in association with Geojit.

ii. The Selfie Trading Platform has a uniform feature across multiple platforms and devices and an
advanced charting platform.
iii. It enables users to trade directly from charts, among others.
iv. It will give its users absolute control over their investments with timely research inputs to
make sound investment decisions.
Karnataka Bank pact with HDFC Asset Mgmt

Karnataka Bank Ltd has signed an agreement HDFC Capital Asset Management
Ltd (HDFCAML).
i. The main aim of signing the agreement is to sell the mutual fund products of HDFCAML.
ii. Managing Director and Chief Executive Officer of Karnataka Bank is Mahabaleswara MS.
Entertainment, Cable, DTH to attract lower taxes under GST.

Government has announced that 'entertainment tax' levied by states has been subsumed in the
GST and thus, taxation on cable and DTH services shall come down post the roll-out of GST
from July 1, 2017.
Taxation on Entertainment, Cable and DTH under GST regime:
i. Finance Ministry has stated that services by way of admission to entertainment events or
cinematography films in cinema theatres will attract 28% GST.
ii. Currently, states impose entertainment tax of up to 100 per cent in respect of exhibition of
cinematography films in theatres/cinema halls.
iii. Under GST, the entertainment tax has been subsumed, and hence only the taxes levied by a
panchayat or municipality on entertainments and amusements will continue.
iv. In addition to the benefit of lower headline rates of GST, the entertainment service providers
shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services.
v. GST Council has finalised 18% tax rate on cable TV and Direct-To- Home (DTH) services.
CBDT signs 2 more unilateral pacts with taxpayers

i. The Central Board of Direct Taxes (CBDT) has signed two unilateral advance pricing
agreements (APAs) with Indian taxpayers in a bid to reduce litigation by providing certainty in
transfer pricing.
ii. The two APAs signed pertain to sectors like chip design or development of embedded software
and information technology (software development).
iii. Including these, total four APAs have been signed during this fiscal so far.
RBI to revamp oversight panel to tackle bad loans

The Reserve Bank of India on 22nd may 2017 had declared that it will reconstitute and expand
the oversight committee to deal with rising bad loans.
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i. The RBI will now reconstitute the Oversight Committee (OC) under its aegis and the two current
members will continue in the revamped panel.
ii. The RBI is now developing a framework for an objective and consistent decision-making
process.
iii. It is framing the process for resolution under the Insolvency and Bankruptcy Code, 2016
(IBC).
iv. The central bank will expand the panel to include more members.
v. The existing OC, which has two members, was constituted by the Indian Banks Association.
vi. The RBI will also expand the scope of cases to be referred to the OC beyond those under S4A
(Scheme for Sustainable Structuring of Stressed Assets) as required currently.
IFFCO launches debit card for farmers in collaboration with Bank of Baroda
Bank of Baroda (BoB) has signed a Memorandum of Understanding (MoU) with IFFCO.
Key Highlights:
i. The MOU has signed to launch theirfirst set of co-branded debit cards for the farmers.
ii. This step has been taken to promote more digitalization and cashless economy.
iii. The debit cards has a facility of overdraft of Rs 2,500 in special savings bank account.
iv. It is used for purchase of various agri-products at IFFCO sale counters.
SBI launches national hackathon

State Bank of India (SBI) has launched a National Hackathon for developers, start-ups and
students.
i. The main aim to launch National hackathaon is to come up with innovative ideas
and solutions for the banking sector.
ii. Hackathon which will start from June 6, 2017 and ends on June 20, 2017.
iii. The hackathon has named 'Code For Bank'.
RBI allows co-operative banks to issue mobile wallets

On May 25, 2017, Reserve Bank of India announced that it has decided to permit all licensed co-
operative banks having their own ATM network to issue semi-closed prepaid payment
instruments PPIs like mobile wallets.

A notification has been issued by RBI which enlists strict norms and conditions to be followed by
co-operative banks before permitting them to issue wallets for utility bill payments and other
activities up to a limit of Rs 10,000.
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Besides, RBI has also laid down following criteria:

i. Banks should be core banking or CBS compliant
ii. The net non-performing assets should be less than 3%
iii. The bank should be profitable in the previous financial year.
iv. There should be no monetary penalty being imposed on the entity during the last two financial
years
v. A comprehensive customer grievance redressal mechanism should be set up.
vi. The bank should have internal and audit inspection processes both for its branches as well as
the head office.
India retains world's highest FDI recipient crown: Report

As per fDi Report 2017, compiled by fDi intelligence, a division of the Financial
Times, India has retained its position as worlds top greenfield Foreign Direct Investment
(FDI) destination for the second consecutive year. Attracting $62.3 billion FDI inflows in
2016, India remained much ahead of China and the US.
Highlights of fDi Report 2017:
FDI inflows in India during 2016 increased by 2% to USD 62.3 billion, deployed
across 809 projects.
In 2016, global FDI flows gravitated to destinations experiencing the strongest economic
growth, whereas destinations going through recession/ slow down saw major decline in
FDI inflows.
Global FDI flows in 2016 stood at USD 776.2 billion marking 6% growth. It is
the highest level since 2011.
Employment generation on account of FDI increased by 5% to 02 million.
Despite the growth in value, the number of FDI projects across the world
declined by 3 % 12,644.
Attracting $59 billion FDI inflows, China surpassed US and became the second
biggest country for FDI by capital investment. US attracted $48 billion FDI inflows.
Globally, real estate emerged as the best sector attracting $157.5 billion FDI in
2016, marking an increase of 58%.
India's retirement savings gap to rise to $85 trn in 2050: WEF

According to World Economic Forum study the size of retirement savings gap in India is
expected to touch $85 trillion by 2050.
Meaning of Saving Gap:
i. The savings gap is the amount of money required in each country.
ii. It includes contributions from governments, individuals and employers.
iii. It provides each person with a retirement income equal to 70 per cent of their pre-retirement
income.
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iv. World Economic Forum has also predict the world's six largest pension saving systems the US,
UK, Japan, Netherlands, Canada and Australia are expected to reach a $224 trillion gap
by 2050.
v. The savings gap will grow fastest in China and India at growth rates of 7 per cent and
10 per cent respectively.
RBI to observe financial literacy week from June 5-9

RBI has decided to observe the week June 5-9, 2017 as Financial Literacy Week across the
country.
i. The literacy week will focus on four broad themes that is KYC, Exercising Credit
Discipline, Grievance Redressal and Going Digital (UPI and *99#).
ii. Banks are advised to conduct special camps on each of the five days in unbanked areas.
Goldman, Citigroup among 5 bankers selected for IOC stake sale

Goldman Sachs and Citigroup are among the 5 merchant bankers selected by Department of
Investment and Public Asset Management (DIPAM) to manage Governments 3% stake
sale in Indian Oil Corporation (IOC).
i. 3% stake sale in Indian Oil Corporation (IOC) at current market price will fetch about Rs. 6000..
ii. Deutsche Equities, SBI Capital Markets and ICICI Securities are other three entities
which have been selected to manage this stake sale. As many as 10 merchant bankers including
Axis Capital, Kotak Investment, Nomura Financial, Edelweiss Financial and IDFC Bank were vying
for this job.
India to grow at 7.2% in 2017-18 - World Bank

As per India Development Report by World Bank, Indian economy is expected to grow
at 7.2% in FY 2017-18 as compared to 6.8% in 2016-17.
i. The report has outlined that demonetisation in November 2016 caused a slight disruption to
Indias growth recovery.
ii. It is to be noted that in the latest World Economic Outlook (WEO), International Monetary Fund
(IMF) has cut down Indias growth forecast for year 2017 by 0.4 percentage points to 7.2 %.
EPFO gives nod to hike in stock investment to 15 per cent

The Employees Provident Fund Organisation has announced a hike in investment limit
in Exchange Traded Funds (ETFs) from 10% to 15 per cent.
i. The decision was taken during the meeting of the Central Board of Trustees (CBT) on 29th of
May.
ii. Union Labour Minister is Bandaru Dattatreya.
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Asian Development Bank (ADB) & Punjab National Bank (PNB) sign $100 million loan to
finance Solar Rooftop projects
On May 30, 2017, Asian Development Bank (ADB) and the Punjab National Bank
(PNB) signed a $100 million loan agreement to finance large solar rooftop systems on
industrial and commercial buildings throughout India.
Details about ADBs Solar Rooftop Investment Program (SRIP):
i. This is the first tranche loan of the $500 million multi tranche finance facility Solar Rooftop
Investment Program (SRIP) approved by ADB in 2016.
ii. This agreement has been guaranteed by the Government of India
iii. PNB will use the ADB funds to make further loans to various developers and end users to
install rooftop solar systems.
RBI to soon circulate new pink-green Re 1 notes

The Reserve Bank of India will soon circulate one rupee notes while the existing notes and coins
will also continue.
i. The new notes will be in Pink-Green colour with the representation of the one rupee coin on
the reverse of the note.
ii. According to RBI these currency notes are legal tender as provided in The Coinage Act 2011.
iii. The new notes will bear the bilingual signature of economic affairs secretary
Shaktikanta Das.
India's growth to accelerate to 7.5% this fiscal: Moody's

According to the Moody Indias economic growth will accelerate to 7.5 per cent in current fiscal
and will help in achieving the 8 per cent of GDP growth rate in about four years.
i. According to Moodys the economy will grow 7.5 per cent in fiscal year 2017 (2017-
18) and 7.7 per cent in fiscal year 2018 (2018-19).
ii. Indian economy grew 7.1 per cent in 2016-17 fiscal.
iii. The inflation rate will rise to around 5 per cent by the end of this year.
iv. GDP will grow at 6.6 per cent in 2017 and falling to 6.3 per cent in 2018
Banking & Finance Awareness June 2017
India's GDP in Q4 grows 6.1%, loses fastest growing economy tag

As per Government data released on May 31, 2017, India's Gross Domestic Product (GDP)
grew at 6.1% year-on-year in fourth quarter of financial year 2016-17 i.e. during January 2017
to March 2017.
i. Owing to this lower number; India lost the fastest growing economy tag to Chinese economy,
which grew at 6.9% during January 2017 to March 2017.
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ii. The Q4 GDP growth was lower than the general expectation. Analysts believe that
demonetisation drive of Government, weighed down on the Q4 GDP numbers, as it was the first
full quarter post demonetisation.
India signs Loan Agreement with the World Bank for USD 36 Million for Himachal
Pradesh Public Financial Management Capacity Building Program
On June 1, 2017, Indian Government signed USD 36 million loan agreement with World
Bank for Himachal Pradesh Public Financial Management Capacity Building
Program in New Delhi.
i. The objective of the project is to improve the efficiency of Public Expenditure Management and
Tax Administration in Himachal Pradesh.
ii. The programme has been planned for 5 years duration with a total outlay of $45 million.
USD 36 million will be procured through this agreement, whereas remaining amount will be drawn
from state budget.
SEBI bars Cypress Money from acting as Investment Advisor

Markets regulator SEBI has barred Cypress Money from acting as Investment Advisor. SEBI
found guilty of providing unauthorized trading tips to investors.
i. SEBI found that the entities were acting as investment advisors and research analyst without
securing registration from the regulator.
ii. Accordingly, these entities have been ordered "to cease and desist" from acting as
investment advisor or research analyst as well as undertaking such activities in the securities
market, directly or indirectly.
Economy expected to grow by 7.5 per cent in current fiscal: NITI Aayog
Arvind Panagariya, an economic adviser has said India's economic growth is expected to
grow by 7.5 percent in this fiscal year.
i.Asia's third-largest economy grew by 7.1 percent year-on-year in 2016-17, slower than 8
percent growth a year ago.
ii.Panagariya,a vice-chairman of the government's main economic advisory body said on a
conference that economic growth would accelerate further to above 8 percent by 2019.
SBI funds 100 MW Rooftop solar projects under WB programme

State Bank of India (SBI) has announced financing of 100 MW rooftop solar projects for
private developers under a World Bank programme.
i.The total cost is worth Rs 400 crore.
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ii.SBI has availed loan of USD 625 million from the World Bank for on-lending to viable
Grid-Connected Rooftop Solar PV (GRPV) projects.
SEBI constitutes committee on Corporate Governance headed by Uday Kotak

Under the chairmanship of Uday Kotak, Market Regulator SEBI has formed a Committee on
Corporate Governance.
i.Uday Kotak is an executive vice chairman and managing director of Kotak Mahindra Bank.
ii.This move is aimed at improving the standards of corporate governance of
listed companies.
iii.The panel has been mandated to submit the report within a period of four months.
India GDP Growth To Remain Flat At 7.1 Pc In 2017-18: HSBC

According to HSBC report Indias economic growth is expected to remain flat at 7.1 per
cent in current fiscal.
i. According to official data, Indias growth rate slipped to 6.1 per cent in the January-March
quarter and 7.1 per cent during 2016-17.
ii. According to HSBC Chief India Economist Pranjul Bhandari the growth will remain flat at 7.1
per cent in 2017-18.
World Bank keeps 2017 global growth forecast at 2.7%

As per World Bank's Global Economic Prospects (GEP) report released on June 4, 2017,
the global economy is expected to grow at 2.7% in 2017 and 2.9% in 2018. World Bank has
thus maintained its January 2017 forecast.
Highlights of World Bank's Global Economic Prospects (GEP) report:
Advanced economies are expected to grow at 1.9% in 2017, accelerating from the
1.7% growth in 2016. However growth of advanced economies will slow down to 1.8%
in 2018 and 1.7% in 2019.
In 2017, emerging markets and developing economies are expected to grow
at 1%, as compared to 3.5% in 2016. These economies will soon catch momentum and
are expected to register growth rate of 4.5% in 2018 and 4.7% in 2019.
It is to be noted that, as per recently released India Development Report by World
Bank, Indian economy is expected to grow at 7.2% in FY 2017-18 as compared to 6.8% in
2016-17.
ICICI Bank commissions 200 solar-powered ATMs

On the occasion of the World Environment Day, ICICI Bank has mentioned that it
has commissioned over 200 solar powered ATM sites in the last one year as part of its
efforts to reduce carbon footprint and use more clean energy.
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i. Besides
commissioning solar
powered ATMs, ICICI Bank has reduced its overall energy consumption in large offices and
branches from 198 million units in 2013-14 to 164 million units in 2016-17, saving 34 million
units in last three years.
ii. On account of these initiatives, there has been reduction in the banks overall carbon emission
by nearly 40,000 tonnes.
India Signs Loan Agreement with the World Bank for USD 39.2 Million for the project
Assam Citizen Centric Service Delivery
An agreement for IBRD Credit of USD 39.2 Million from World Bank for the project Assam
Citizen Centric Service Delivery has been signed on 6th of June.
i. The programme cost is 49-million dollar out of which 39.2-million dollar will be financed by
the Bank, and the remaining amount will be funded-out of State Budget.
ii. The programme duration is five years.
iii. The main objective of the project is to improve access in the delivery of selected public
services in Assam.
Vijaya Bank set to develop 100 digital villages

Vijaya Bank is set up to develop 100 digital villages in various States of the country.Its aim is
to promote digital banking among the rural population.
i. Vijaya Bank has inaugurated its 2031st ATM at Pandit Nehru Bus Station in the city
of Vijayawada on 6th of June, 2017
ii. Director of Vijaya bank B.S.Rama Rao has said that Vijaya Bank is the only public sector
financial institution to develop digital villages with focus on rural areas.
RBI announces second Bi-monthly Monetary Policy

On 7th June, 2017, Reserve Bank of India (RBI) announced Second Bi-Monthly Monetary
Policy Statement for financial year 2017-18. This is the fourth straight meeting wherein the
Policy Repo Rate has been kept unchanged.
Post the Second Bi-Monthly Monetary Policy Statement announcement, the policy rates
Policy Repo Rate 6.25% Unchanged since 4th October 2016
Reverse Repo Rate 6.00% Unchanged since 6th April 217
Marginal Standing Facility 6.50% Unchanged since 6th April 217
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Rate
Bank Rate 6.50% Unchanged since 6th April 217
Cash Reserve Ratio (CRR) 4.00% Unchanged since 9th February 2013
Statutory Liquidity Ratio (SLR) 20.00% Cut by 0.50%. Earlier it was 20.50%
RBI lowers growth forecast to 7.3% for FY18
The RBI has lowered the economic growth projection to 7.3% for the current financial
year from 7.4% earlier.
It is to be noted that as per Government data released on May 31, 2017, India's Gross
Domestic Product (GDP) grew at 6.1% year-on-year in fourth quarter of financial
year 2016-17 i.e. during January 2017 to March 2017. Owing to this lower number; India
lost the fastest growing economy tag to Chinese economy, which grew at 6.9% during
January 2017 to March 2017.
SBI organized farmers' meet on June 8 to understand their credit need

Indias one of the most lender State BIank of India took a step to meet nearly 10,000 farmers to
understand their credit needs and also to provide finance help.
i. The meeting organized at the bank's 15,500 rural and semi-urban branches across the country
on June 8, 2017
ii. During the meeting, branches will make some arrangements to get applications for fresh loans
and also renewal or enhancement of existing loan.
HDFC Bank to charge for UPI transactions from 10 July

HDFC Bank on Monday informed to all of its customers that it will impose the new transaction
charges on all outward UPI transactions as well as the benefits of using UPI for transferring
funds from July 10.
i. Transactions from Rs 1 to Rs 25,000 will be charged Rs 3 plus taxes while
transactions above Rs 25,000 to Rs 1 lakh will be charged Rs 5, as against this the NEFT
charges are Rs 2.5 for transactions up to Rs 10,000 and Rs 5 for transactions above Rs
10,000.
ii. Dilip Asbe, chief operating officer, NPCI denoted that according to National Payments
Corporation of India (NPCI), banks may impose charges on UPI transactions but only those
pertaining to P2P (person-to-person) transfers.
iii. Person to Merchant (P2M) transactions in UPI will remain free to customers as per NPCI
guidelines.
Canara Bank and New India announces tie up

Canara Bank and the New India Assurance Company have entered into a corporate agency
arrangement for distribution of insurance products.
More Details about Canara Bank, New India tie up:
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i. The pact allows Canara Bank to offer non-life insurance products to its customers across
metros and tier II and III cities through the banks extensive network of over 6,000 branches.
ii. New India Assurance will offer a bouquet of products such as motor, home, health,travel,
fire, marine, and engineering insurance policies through branches of Canara Bank.
TCS launches BaNCS app development kit to help banks

Global software major Tata Consultancy Services (TCS) has launched "BaNCS App
Development Kit" (ADK) on 8th of June 2017.
i. It will enable banks to fast design and build their own apps and install it across devices and
desktops.
ii. "BaNCS ADK" will help banks to design and deploy enterprise and consumer apps.
iii. The vision for 'BaNCS ADK' is to transfer flexibility and increase speed of development to the
Bank.
Axis Bank to issue biodegradable prepaid gift cards

Axis Bank has become the first bank to introduce biodegradable gift cards in the country.
i. The card has the look and feel of regular plastic cards and can be used in PoS terminals and
ATMs.
ii.Biodegradable cards can also be recycled.
iii. These cards have a greater positive impact on the environment because of their ability to
break down, safely and relatively quickly into the raw materials of nature and disappear into the
environment.
iv. The card is made up of Polyethylene Terephthalate Glycol (PETG).
Yes Bank partners with TerraPay for faster international remittance

Private sector lender Yes Bank has partnered with mobile payments switch TerraPay.
i.Its main aim is to enable real time money transfer to bank accounts in India.
ii.Terra Pay has partnered with Yes Bank in a Rupee Drawing Arrangement.
iii.It enables TerraPays network partners to make instant cross-border money transfer to
bank accounts in India.
RBI places restrictions on banking activities of Central Bank of India

The Reserve Bank of India (RBI) has placed Central Bank of India under prompt corrective
action. It puts restricts on banking activities such as from lending, hiring and expanding
branches.
i. RBI has triggered PCAs for four banks IDBI Bank, UCO Bank, Dena Bank and Indian Overseas
Bank.
ii. The RBI has mentioned that the PCA has been triggered in view of negative return on
assets and high ratio of bad loans.
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iii. The PCA is triggered so that it allows the regulator to engage closely with the bank's
management in order to improve their financial health.
iv. The PCA was initiated on the Central Bank of India has reported losses for two consecutive
years.
AIIB grants USD 150 Mn loan for India Infrastructure Fund

The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) has approved USD
150 million equity investment to the India Infrastructure Fund.
i. The meeting was held in Jeju in South Korea.
ii. The Infrastructure Fund aims to invest in mid-cap infrastructure companies in India.
iii. This initiative will benefit local infrastructure development by enhancing private capital inflows
from global long-term investors, such as public pension funds, endowments and insurance
companies
iv. AIIB also approved loans to support transport and power projects in Georgia and
Tajikistan.
IOB launches retail mart in Thiruvananthapuram

Indian Overseas Bank (IOB), the Lead Bank for Thiruvananthapuram district, has launched
the Retail Mart, a retail lending concept, in Kerala's capital city.
i. The exclusive facility that handles retail products has started functioning at the main branch.
ii. The Retail Mart has been designed with an aim to complete all the pre-release formalities at the
customers doorstep.
RBI to introduce new series of its Rs 500 note

The Reserve Bank of India (RBI) has announced on 13th of June that it has issued Rs 500
denomination notes with inset letter A.
i. The old notes, which were introduced after Prime Narendra Modis demonetisation drive in
November 2016, will continue to remain the legal tender.
ii. A new batch of banknotes will include the inset letter "A" in both the number panels and
will bear the signature of Urjit R Patel the Governor of Reserve Bank of India; with the
year of printing '2017' on the reverse, are being issued.
iii. The central bank said that the notes will bear Swachh Bharat logo on the backside of
the banknote.
RBI selects 12 accounts, accounting for 25% NPAs, for Insolvency and Bankruptcy code
On June 13, 2017, Reserve Bank of India identified 12 non-performing accounts
representing 25% of gross NPAs in Indian banking system, which will be immediately
taken up under the Insolvency and Bankruptcy Code (IBC).
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Background Information:
The Indian banking sector has accumulated gross non-performing assets (NPAs) worth over
Rs 8 lakh crore, of which Rs. 6 lakh crore is with public sector banks.
On June 12, 2017, an Internal Advisory Committee (IAC) of RBI comprising majorly
of central bank's independent board members held its first meeting to consider cases
under the new IBC.
The IAC followed an objective and non-discretionary criterion that all accounts with
total outstanding loans greater than Rs 5,000 crore, with at least three-fifths
(60%) classified as non-performing by banks as on March 31, 2016, should be
referred under IBC.
SEBI permits options trading in commodity futures

Securities and Exchange Board of India (SEBI) has permitted commodity exchanges to
launch options trading in commodity futures. Introduction of options trading is expected to
enhance the depth of the commodity markets for hedgers and traders.
More Details about options trading in commodity futures:
Options contract of only those commodities that are among the top five in terms of total
trading turnover value of previous 12 months will be permitted.
The underlying for the options contract will be the futures contract of the
commodity rather than the spot price.
Moreover, the average daily turnover of underlying futures contracts of such a
commodity in past one year should be at least Rs 200 crore for agricultural and
agri-processed commodities, and Rs 1000 crore for other commodities.
SEBI has also stipulated necessary guidelines with regard to the product design and risk
management framework to be adopted for trading in options oncommodity futures.
SEBI Guidelines for Investor Protection Fund (IPF):
Investor Protection Fund (IPF) of an exchange should have a maximum of five trustees.
All the penalties levied and collected by the exchange, except for the settlement related
penalties, shall be credited to the IPF.
The bourses can fix suitable compensation limits against investor claims in consultation
with theIPF However, the amount of compensation available against a single claim of an
investor arising out of defaulter by a member broker should be at least Rs 1 lakh.
IDBI Bank only PSB to get high rating for code compliance
According to the Code Compliance Rating of banks done by the Banking Codes and Standards
Board of India (BCSBI) 2017, out of 26 public sector banks and 8 out of 17 private sector banks
got high rating for their adherence to code compliance.
i. IDBI Bank was the only public sector bank that got high (H)(85 and above score out of
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100) rating in two successive surveys.

ii. The eight private sector banks that got high rating are Axis Bank, DCB Bank, HDFC Bank,
ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, RBL Bank and YES Bank.
iii. The three foreign banks Citibank, HSBC and Standard Chartered Bank that were
surveyed got high ranking.
iv. The survey is based on a sample size of 2.5 per cent of the branch network of 51 major banks.
v.12 banks got high rating in the survey, 29 got above average (AA) rating (70 to less than
85 score) and 10 got average (A) rating (60 to less than 70 score).
vi.The public sector banks, the ratings of which improved in the latest round, are: Central Bank of
India, Corporation Bank, UCO Bank and Union Bank of India, with their rating going up to AA from
A.
vii. The public sector banks, the ratings of which came down a notch, are: Andhra Bank and
Bank of Maharashtra (to A from AA).
Emkay and DBS Ink Pact For Equity Research Distribution

Emkay Global Financial Services has entered into an exclusive pact with DBS Bank arm DBS
Vickers Securities (Singapore) on 13th of June.
i. The pact has signed for co-branding and distribution of equity research to the latter's global
clients.
ii. The agreement involvessharing of knowledge, co-branding of research and its
distribution to the global clients of DBS Vickers
GST Bill: ClearTax launches free GST billbook software

ClearTax, Indias largest income tax returns e-filing and enterprise compliance service provider
has launched billbook software.
i. It is used to assist small and medium businesses (SMEs) in the country get GST-ready.
ii. The GST Billbook is a free of cost software platform.
v. It will be available on the companys Web site, mobile site and a soon to be launched app.
vi. The GST billbook supports key features needed for SMEs such as, creating a sales invoice,
recording of discount, freight, insurance and package handling charges.

vii. It will support other documents mandated by GST such as delivery challan, e-way bill,
advance payment receipts etc.
xi. Founder and CEO of ClearTax.com is Archit Gupta.
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China, ADB launch green financing platform to fight pollution

China and the Asia Development Bank (ADB) have launched a green financing platform to
cut pollution in the smog-hit Beijing-Tianjin-Hebei region on 16th of June 2017.
i. The financing platform was launched by the ADB and the China National Investment and
Guaranty Corporation (I&G), the State Development and Investment Corporation (SDIC), as well
as China's finance ministry and National Development and Reform Commission.
ii. China selected five regions this week to take part in pilot government green financing
schemes.
DCB bank launches Aadhaar based iris eye scan customer verification service
DCB Bank, a private sector bank has launched new services - Indias first Aadhaar based iris
eye scan customer verification and fingerprint operated ATM in Telangana on 16th of
June.
i. These services will include a customers Aadhaar number, eye scan and fingerprint
impression.
ii. It has been inaugurated in 3 new branches in Mancherial, Mothe and Narsapur in the state.
World Bank approves $500 million grant package for Afghanistan projects
On June 13, 2017, World Bank approved financing worth more than $500
million for Afghanistan to support a various projects to boost the economy, help improve
service delivery in five cities and support Afghan refugees sent back from Pakistan.
Switzerland ratifies Automatic Exchange of Information with India

On June 16, 2017, Switzerland ratified an automatic exchange of financial account
information with India in order to facilitate immediate sharing of details about suspected black
money.
Details of Automatic Exchange of Information (AEOI) agreement with Switzerland:
Swiss Federal Council said that the implementation of the information exchange is
planned for 2018 and that the first set of data exchange would happen in 2019.
The council has mentioned that it will prepare a situation report before the first
exchange of data takes place somewhere around autumn 2019 and will notify the Indian
government regarding the exact date from which the automatic exchange would begin
The exchange of information will reportedly be carried out in accordance with
the Multilateral Competent Authority Agreement (MCAA) on the Automatic
Exchange of Financial Account Information.
This year, Switzerland has introduced the AEOI with 38 states and territories, including all EU
member states and data will start to be exchanged with them in 2018.
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India's current account deficit narrowed in fiscal year 2016-2017, says RBI
On June 15, 2017, Reserve Bank of India said India's current account deficit (CAD) narrowed
during the last fiscal due to a contraction in the country's trade deficit.
i. CAD for fiscal year 2016-17 narrowed to 0.7% of the Gross Domestic Product
(GDP) from 1.1 per cent in 2015-16 on the back of the contraction in trade deficit.
ii. India's trade deficit for the same period narrowed to $112.4 billion in 2016-17 from
$130.1 billion in 2015-16.
IBBI notifies fast track Insolvency Resolution Process for Corporate Persons
Regulations
The Insolvency and Bankruptcy Board of India (IBBI) has notified the Fast Track Insolvency
Resolution Process for Corporate Persons Regulations on 16th of June 2017.
i. These regulations will provide the process from initiation of insolvency resolution of eligible
corporate debtors.
ii. The process in these cases shall be completed within a period of 90 days, as against 180
days in other cases.
iii. The Adjudicating Authority if satisfied, extend the period of 90 days by a further
period up to 45 days for completion of the process.
iv. A creditor or a corporate debtor may file an application, along with the proof of existence of
default, to the Adjudicating Authority for initiating fast track resolution process.
v. After the application is admitted and the interim resolution professional (IRP) is appointed.
SBI, Tirumala Milk Products tie up for providing loans to dairy farmers
State Bank of India has entered into a tie-up with Tirumala Milk Products on 17th of June
2017.
i. It is a South- based company which was acquired by GroupeLactalis in 2014.
ii. Its main aim is to provide loans to dairy farmers who supply milk to the latter.
RBI initiates Prompt Corrective Action against Bank of Maharashtra as NPA mounts
The Reserve Bank has initiated Prompt Corrective Action (PCA) against Bank of
Maharashtra (BoM) in view of high level of bad loans and negative return on assets
i. BoM has become the sixth bank to be put under the PCA.
ii. For the year ended March 2017, the net non-performing assets (NPAs) of the bank rose to
11.76% while return on assets declined to (-) 1.09%.
iii. Bank has reported a loss of Rs 455.4 crore for the fourth quarter, while for entire fiscal 2016-
17 booked loss of Rs 1,372 crore.
iv. It is to be noted that IDBI Bank, Indian Overseas Bank, UCO Bank, Dena Bank and
Central Bank of India have already come under the PCA initiated by the RBI.
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RBI announces names of members of Overseeing Committee

On June 22, 2017, Reserve Bank of India announced names of the members of Overseeing
Committee which was given an expanded mandate after the promulgation of the new NPA
ordinance.
Composition of Overseeing Committee (OC):
i. OC earlier was a two-member committee consisting of former Chief Vigilance Commissioner
Pradeep Kumar and former State Bank of India chairman Janki Ballabh.
ii. Another three members have been added - former L&T Finance Holdings Chairman YM
Deosthalee, former Canara Bank chairman MBN Rao and SEBI whole time member S
Raman whose appointment will be effective from 7th September, 2017.
iii. Pradeep Kumar has been named as the chairman of this 5-member committee.
World Bank sanctions 44 million dollars for ASPIRe

World Banks Board of Executive Directors has sanctioned a loan assistance of 44 million
dollars for the Assam State Public Finance Institutional Reforms (ASPIRe) Project.
i. ASPIRe project is based on three important components:
1.Strengthening public finance institutional capacity
2.Strengthening expenditure and revenue information systems
3.On project management, monitoring and evaluation, and coordination.
ii. The project aims at improving predictability and transparency in budget execution and
efficiency in tax administration in Assam.
State's fiscal deficit soars to Rs 4.93 trillion in FY16

According to the second edition of Reserve Bank of Indias (RBI's) statistical publication
titled 'Handbook of Statistics on States 2016-17, total gross fiscal deficits of Indian
states shot up to Rs 4,93,360 crore in fiscal 2016 from Rs 18,790 crore in FY1991.
Highlights of 'Handbook of Statistics on States 2016-17:

Rajasthan with Rs 67,350 crore deficit in FY16 and Uttar Pradesh with Rs 64,320 crore
deficit in FY16 accounted for the largest chunks in the total gross fiscal deficits of Indian States.
Maharashtra, one of the most urbanised and industrialised states had a deficit of Rs
1,020 crore in FY91 but the same jumped to Rs 37,950 crore in FY16 which is projected
to improve to Rs 35,030 crore in FY17.
As per the data, total gross fiscal deficits of Indian states is projected to improve
to Rs 4,49,520 crore as per the budget estimates of the states for fiscal 2017.
Gujarat, Andhra Pradesh, Tamil Nadu, Karnataka and Kerala are the states
which will account for higher deficit in FY17 as compared to FY16.
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Conversely for Bihar (on account of rising investments following better law and order
situation) and West Bengal (despite having high debt levels), the deficit for FY17 is
projected to improve as compared to FY16.
World Bank, AIIB to granted $380 loan to Andhra Pradesh power project
The World Bank and Asian Infrastructure Investment Bank (AIIB) have granted loan
to Andhra Pradesh for Power Project.
i. It aims towards helping the southern state and will build a reliable, quality and affordable power
supply to citizens.
ii. Total Cost of the project is USD 570 million, out of which USD 240 million is from World Bank
(IBRD) and USD 160 million from AIIB. The rest will be counterpart funding from GoAP.
iii. The World Bank and AIIB will provide loans in a 60:40 ratio for all the components of
the project.
IDBI initiated insolvency proceeding against Lanco, first among 12 accounts identified
by RBI
Lanco Infratech said the Reserve Bank of India (RBI) has directed its lead lender IDBI Bank
to initiate insolvency proceedings for the company under the Insolvency and
Bankruptcy Code (IBC).
i. The company is among 12 firms identified by the central bank with a combined debt of over Rs
1,50,000 crore, a quarter of the total NPAs, for proceedings under the newly enacted Insolvency
and Bankruptcy Code, 2016.
IDBI Federal Life partners with SunTec for GST roll out
IDBI Federal Life Insurance has announced that it has partnered with SunTec.
i. It will help facilitate in computing and invoicing of debit tax and credit tax that will be GST
compliant.
ii. Under the agreement, for the debit tax mandate SunTec will help in analysing data from
various sources for computation and invoicing purposes.
India and ADB Sign $275 Million Loan for Upgrading Urban Services in 64 Small Towns
in Madhya Pradesh
The GOI and Asian Development Bank has signed USD 275 million loan for a piped water
supply project for rapidly urbanising small towns. It will cover 3 lakh households in 64 small
towns in Madhya Pradesh.
i. The state government will provide a USD 124 million counterpart support for the project.
ii. As per ADB it will be completed by June 2022.
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iii. It will develop sustainable, inclusive and climate resilient water supply in 64 small
and mid-sized towns.
Hike Messenger partners with YES Bank to launch in-app Wallet

Messaging app Hike has added payments feature that will allow its over 100 million users to
transfer money, recharge and pay mobile bills through the messaging platform. It has been
launched on 20th June 2017.
i. The Hike wallet is powered by Yes Bank.
ii. Hike is the first in India to launch payments facility on a messaging platform.
iii. It will allow free and instant bank-to-bank transfer via unified payments interface (UPI), free
and instant money transfer via wallet and recharge right from the app.
iv. Hike has improved the user interface as well as added new features to the camera on the app.
v. Hike Messenger founder and CEO is Kavin Bharti Mittal.
RBI amends Banking Ombudsman Scheme

RBI amends banking ombudsman scheme under which banks could be penalised for mis-
selling third-party products like insurance and mutual funds via mobile or electronic
banking.
i. Under the amended scheme, a customer would also be able to lodge a complaint against the
bank for its non-adherence to RBI instructions with regard to mobile banking and
electronic banking services in India.
ii. As per the amendment, the pecuniary jurisdiction of the Banking Ombudsman to pass an award
has been doubled to 20 lakh rupees.
Bank credit grows at 6.02%, deposits at 11.19%

According to data released by Reserve Bank of India, Banks' credit growth grew at 6.02% to
Rs 76,58,212 crore in the fortnight ended June 9. 2017 from Rs 72,22,939 crore in the same
period of fiscal 2016, whereas bank deposits grew at 11.19% to Rs 105,77,947 crore from Rs
95,13,148 crore in the fortnight ended June 10, 2016.
i. Credit growth was slightly higher than the previous fortnight ended on May 26, 2017.
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ii. In the fortnight ended May 26, 2017, credit growth grew by 5.08% with an outstanding
loans at Rs 75,93,546 crore.
Axis Bank, Kochi Metro launches India's first single-wallet contactless, Open Loop Metro
Card
Axis Bank in association with Kochi Metro Rail Corporation (KMRL) has
launched KMRL Axis Bank 'Kochi1' Card, India's first open loop EMV contactless metro
card that would make travel a convenient and hassle free experience for commuters in Kochi.
Salient Features of KMRL Axis Bank 'Kochi1' Card:
i. Axis Bank has partnered with National Payments Corporation of India (NPCI) in developing
this transit EMV contactless specification on interoperable open standards.
ii. The prepaid card has integrated benefits and offers a plethora of services to commuters such
as shopping at merchant outlets.
iii. The commuter will receive a completely personalized (with name) KMRL Axis Bank 'Kochi1'
Card across the counter in a matter of minutes.
NCAER pegs FY'18 GDP growth at 7.6% on normal monsoon

NCAER has revised up the country's economic growth to 7.6 % for the current fiscal as
compared with 7.3% on forecast of normal monsoon.
i. In its quarterly review of the economy, NCAER prospects for the agricultural sector in 2017-18
remain optimistic on forecast of good rains.
ii. The World Bank has forecast growth to be 7.2 per cent during 2017-18.
iii. The Wholesale Price Index (WPI) inflation is projected at 6.7 % for 2017-18.
iv.Recentdata shows that foodgrain production in 2016- 17 has set a new record of 273.4 million
tonnes or 8.7% higher as compared to last year.
v. The forecast for growth of Gross Domestic Product (GDP) at market prices in 2017-18 is
7.6% at constant (2011 -12) prices.
vi. The forecast of GVA (Gross Value Added at Basic Prices) growth at 7.3%for 2017-
18compare with February month estimated of 7%.
vii. The economy grew 7.1% in 2016-17, lower than 7.6 % against 8% a year ago.
GDP growth to rise To 7.5% In FY19 - Fitch

According to Fitch Ratings Indias GDP growth will steadily rise from 7.4% to 7.5% in 2018-
19 and to 7.6% in 2019-20.
i. Fitch has also reported that growth would be boosted by the goods and services tax, increased
public spending on infrastructure, and a supportive monetary policy over the last two years.
ii. GDP growth expected to pick up to 3.1% in 2018 from 2.5% in 2016.
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World Bank Clears $250-Million Loan to Train India's Job Seekers

The World Bank has cleared a USD 250-million loan, referred to as Skill India Mission
Operation (SIMO) for making Indian youth more employable through reskilling.
i. World Bank's SIMO is a six- year programme in support of the Indian government's National
Policy for Skill Development and Entrepreneurship (2017-23).
ii. SIMO will be implemented through the National Skill Development Mission and will
specifically target labour market entrants.
v. It will also include the 1.2 crore youngsters in the age group of 15-29 years who are entering
the labour market every year.
vi. As per the Bank's estimate, skill development capacity of the system would increase by the
end of the programme so that at least 8.8 million youth with relevant training have an
improved employment opportunity to raise their earnings.
vii. The programme will benefit approximately 15,000 trainers and 3,000 assessors.
Group insurance cover for Amarnath pilgrims raised to Rs 3 lakh

The Shri Amarnathji Shrine Board (SASB) has announced to enhance the group insurance
cover for the pilgrims and service providers from existing Rs 1 lakh to Rs 3 lakh.
i. SASB manages the annual yatra to the 3,880-metre high holy cave shrine of Amarnath in south
Kashmir, Himalayas.
ii. Yatra has been scheduled to begin from 29th of June.
India Signs Loan Agreement with the World Bank for USD 35 Million for Assam State
Public Financial Institutional Reforms Project
India has signed aLoan Agreement with the World Bank for USD 35 Million for Assam State
Public Financial Institutional Reforms Project.
i. An agreement for IBRD Credit of USD 35 Million from World Bank for Assam State Public
Financial Institutional Reforms Project was signed on 28th of June at New Delhi.
ii. The programme size is USD 44 million, of which USD 35 million will be financed by the
Bank, and the remaining amount will be funded out of State Budget.
iii. The programme duration is 5 years.
World's first ATM machine turns to gold on 50th birthday

The first ATM was presented by Barclays at their Enfield branch in north London on Jun
27, 1967.The first ATM machine turns to gold on 50th birthday on 28th of June.
i. The first person to use the inaugural ATM was actor Reg Varney, the star of a popular
British TV comedy called "On The Buses", brought in to show how easy it was to use.
ii. The original cash machine was the brainchild of John Shepherd-Barron, who was commissioned
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by the bank to create six cash dispensers. They were based on vending machines.
iii. There now are an estimated 3 million plus cash machines in the world.
Government issues notification, countdown begins for GST Rollout

Union Government has notified roll out of Goods and Services Tax (GST) from July 1, 2017.
GST will replace 16 current levies (7 central taxes and 9 state taxes), consequentially creating
India as one market with one tax rate.
Special Programme for Launch of GST:
i. A special programme will be held in Central Hall of Parliament tomorrow midnight for the launch
of GST.
ii. President Pranab Mukherjee, Prime Minister Narendra Modi, Finance Minister Arun
Jaitley and a host of Senior Ministers and bureaucrats will attend the programme.
iii. Finance ministry has set up a war room where government officials can find solutions to
urgent queries related to problems on GST.
iv. The GST feedback and war room is equipped with multiple phone lines and computer systems.
It will be operative from 8 am to 10 pm.
India becomes 1st country to give to UN Tax Fund with $100000 contribution
India has contributed $100,000 to UN Trust Fund for International Cooperation in Tax
Matters (UN Tax Fund) and has thereby become the first country to make the contribution.
i. The UN Tax Trust Fund aims to support the work of the Committee of Experts on International
Cooperation in Tax Matters (the UN Tax Committee).
ii. Voluntary contributions for the fund have been called for by theUN and the committee since its
establishment in 2006.
iii. The call for contributions was also emphasised in the Addis Ababa Action Agenda adopted
at the third International Conference on Financing for Development in 2015.
Indian funds in Swiss banks hit record low of 676 mn francs

As per latest data published by Swiss National Bank (SNB), money parked by Indians in
Switzerlands banks nearly halved to 676 Million Swiss francs (CHF) in 2016. As per current
exchange rate, the approximate amount stands at Rs. 4500 crore.
i. Indian funds in Swiss Banks dropped by nearly 45% in 2016 as compared to 2015,
marking the biggest ever yearly decline in such funds.
ii. This is the lowest amount of funds held by Indians in the Swiss banks ever since the
Switzerland began making the data public in 1987.
ADB pledges USD 10 bn for development projects in India

On June 29, 2017, Asian Development Bank (ADB) committed USD 10 billion support
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for infrastructure building and immediate development needs of less-developed states

in India.
i. Takehiko Nakao, the President of ADB, was on a 3-day visit to India during which he met
Finance Minister Arun Jaitley and Commerce and Industry Minister Nirmala Sitharaman.
ii. Takehiko Nakaosaid the ADB stands ready to meet immediate development needs of up to USD
5 billion over the five-year period for less developed states, including Uttar Pradesh,
Bihar, Jharkhand, Odisha and Chhattisgarh, addressing critical infrastructure and capacity
deficits.
Banking & Finance Awareness July 2017

GST comes into force after 17 years of debate
Goods and Services Tax (GST) regime officially came into force from July 1, 2017.
Government launched the Goods and Services Tax (GST) at a special midnight meeting in Central
Hall of Parliament.
Highlights of GST Launch Ceremony:
President Pranab Mukherjee and PM Modi pressed a button in a specially crafted box at the
stroke of midnight and formally launched GST.
Besides, President Pranab Mukherjee and Prime Minister Narendra Modi, Vice
President Hamid Ansari, Lok Sabha Speaker Sumitra Mahajan, Former Prime
Minister H D Deve Gowda and Union Cabinet Ministers including Finance
Minister Arun Jaitley were present at the launch ceremony.
It is to be noted that members of Congress, RJD, DMK and Left parties boycotted
the launch ceremony, whereas members of NCP, the JD-U and the JD-S broke ranks
with opposition parties to attend the launch ceremony.
July 1 to be observed as GST Day
As per an order issued by Central Board of Excise and Customs (CBEC), July 1 will be
known as GST Day and will be celebrated in all offices of CBEC just as Central Excise Day and
International Customs Day.
On July 1, 2017, all the offices of the Central Board of Excise and Customs (CBEC) have
been instructed to remain open as a trade facilitation measure.
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In order to facilitate smooth switchover to GST, Government has asked tax offices to
convert into GST Seva-Kendras for providing all assistance to tax payers.
In addition to this, name board of the field offices will be re-named as Central GST
Zone/ Commissionrate/ Division/ Range and the logo One Nation, One Tax, One
Market will be displayed prominently on the name boards/banners/office letterheads.
India's economic growth rate at 7.3% in 2017-18 - RBI report

As per Reserve Bank of Indias (RBI) Financial Stability Report 2017, released on June 30,
2017, reform initiatives like goods and services (GST) and continuing political stability will push
the economic growth scale to 7.3% in terms of gross value added (GVA) in 2017-18.
Gross Value Added: GVA is also a measure of output similar to Gross Domestic Product (GDP).
GDP figure is arrived at by adding taxes and subtracting subsidies from GVA.
Highlights of RBIs Financial Stability Report 2017:
Lower fiscal deficit at 3.2% for this year down from 3.5% in 2016-17, increasing public capex
and support to poorer households, small businesses and the rural sector have been cited as
reasons for a better economic outlook.
The report has outlined that reforms in Foreign Direct Investment (FDI) and real estate
sector, and revival in external demand are likely to contribute to a better growth
outlook.
CPI inflation is expected to be in the range of 2-3.5% in the first half of the
year and 3.5-4.5% in the second half. Retail inflation, excluding food and fuel that
remained sticky during H2 of FY17 at around 4.9%, dipped to 4.3% in April and 4.2% in
May 2017, largely reflecting the impact of decline in global crude oil prices on transport
and communication and moderate price pressures in services.
India contributes USD 500000 to UN Peacebuilding Fund

India has contributed USD 500,000 to the UN Peacebuilding Fund, expressing hope that
more funding by nations will boost efforts by the world body to build and sustain peace.
i. In October 2006, UN Secretary-General established a Peacebuilding Fund (PBF) for post-
conflict peace building initiatives following a request from the General Assembly and the Security
Council.
ii. The fund was launched to support activities, actions, programmes and organisations that seek
to build a lasting peace in countries emerging from conflict.
Govt lowers interest rate by 0.1 % on small saving schemes for July-Sep quarter
The government has lowered interest rate on small saving schemes like PPF, Kisan Vikas Patra
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and Sukanya Samriddhi by 0.1% for the July- September quarter.

i. The rates have been lowered by 0.1% across the board compared to the April-June
quarter.
ii. The Interest rate on savings deposits has been retained at 4% annually. The interest
rates for small savings schemes are to be notified on a quarterly basis.
iii. Investments in the public provident fund (PPF) scheme will fetch lower annual rate of
7.8%.
iv. Kisan Vikas Patra (KVP) investments will yield 7.5% and mature in 115 months.
v. The one for girl child savings, Sukanya Samriddhi Account Scheme, will offer 8.3%
annually, from 8.4% at present.
vi. The investment on 5-year Senior Citizens Savings Scheme will yield 8.3%. and the
interest rate on the senior citizens scheme is paid quarterly.
vii. Term deposits of 1-5 years will fetch a lower 6.8-7.6% that will be paid quarterly while the
5-year recurring deposit has been pegged lower at 7.1%.
viii. Since April last year, interest rates of all small saving schemes have been recalibrated on a
quarterly basis.
PNB to block all Maestro debit cards from July 31

Punjab National Bank (PNB) will block all the Maestro debit cards from 31st of July
2017 if the card holders will fail to replace it with a more secure EMV chip based card by the end
of this month.
i. The bank will not charge anything for the replacement and it will be provided free of cost.
ii. The replacement is as per RBI advisory issued in 2015, asking all the banks to convert to a
secured EMV chip based cards.
iii. According to the bank data it has identified that there are about one lakh customers with
old Maestro debit cards and has started sending them SMSes as well.
Karnataka Bank launched KBL-Image Debit Card

Karnataka Bank has launched the KBL-Image Debit Card on 2nd of July 2017.
i. Karnataka Bank has enabled its cardholders to personalise the card with the image of
his/her choice.
ii. The customers will have the option of selecting an image either from the banks gallery of
images or any image of his/her choice to be printed on the debit card.
Bashar Assad face of new Syria bank note

The Syrian Central Bank has announced that a new 2000 Syrian Pound bank note with the face
of President Bashar al-Assad will soon go into circulation.
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i. The notes are the first time Syria will depict President Bashar al-Assad on its currency since he
took office 17 years ago.
ii. Assad's face appears on the new banknotes at a time when his government is boasting military
successes against the armed rebellion across the country.
FINO becomes payments bank

According to the Reserve Bank of India FINO Payments Bank has commenced the operations as
a payments bank with effect from 30th June, 2017
i. FINO Pay Tech Ltd, Navi Mumbai, was one of the 11 applicants which were issued in-
principle approval for setting up a payments bank.
ii. Besides FINO, the other applicants which have launched payment bank operations are Airtel M
Commerce Services, Department of Posts and Vijay Shekhar Sharma (Paytm Payments Bank).
UPI crosses 1 crore transaction in June, says NPCI

On July 3, 2017, National Payments Corporation of India (NPCI) announced that its Unified
Payments Interface (UPI) has crossed 1 crore transactions mark in June 2017. :
i. NPCI Managing Director and CEO A.P. Hota has mentioned that this is a staggering 10-fold
increase in 11 months from barely one million UPI transactions in August 2016 to over 10 million
in June this year.
ii. UPI transactions shot up from 7.20 million in April 2017 to 9.36 million in May 2017 and in June
2017 it crossed 10.35 million transactions.
ADB pledges USD 220mn for improving road connectivity in Rajasthan

Asian Development Bank (ADB) has committed USD 220 million for improving road
connectivity as well as transport efficiency and safety on state highways of Rajasthan on 3rd of
July 2017.
i. The loan is the first tranche of the USD 500 million Rajasthan State Highways Investment
Programme, approved by the ADB Board in May this year.
ii. It will upgrade about 2,000 kilometers of state highways and major district roads to
two- lane or intermediate-lane standards to meet road safety requirements.
iii. The main aim of ADB and the government will together strengthen the transportation
efficiency of the state highway.
iv .It will have a 25-year term, including a grace period of 8 years.
RBI ups FPI investment limit in g-secs by over 4% for Jul-Sep

Reserve Bank has raised the FPI investment limit in government securities by 4.7% to Rs
2.42 lakh crore (Rs 2.42 billion) for July-September quarter, mainly to increase foreign capital
inflows.
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i. The foreign portfolio investors (FPIs) will be allowed to raise their investment in state
development loans (SDLs) by Rs 6,100 crore (Rs 61 billion) to Rs 33,100 crore (Rs 331
billion) for September quarter of the current fiscal.
ii. The overall limit of FPI investment in government securities goes up to Rs 2.75 lakh crore (
Rs 2,751 billion) from Rs 2.58 lakh crore (Rs 2,580 billion).
iii. There will be future increases in the limit for FPI investment in g-secs will be allocated in
the ratio of 75% for long term category of FPIs and 25% for general category.
Credit card bill payment exempt from cash dealing limit

As per a notification issued by Revenue Department, restrictions on cash dealings of Rs. 2
lakh or more will not apply to credit card bill payments, business correspondents
appointed by banks and issuers of prepaid instruments.
i. It is to be noted that the Finance Act 2017 banned cash transaction of 2 lakh or above with
effect April 1, 2017. However, some exceptions were made.
ii. Five entities have been exempted from this rule. These include receipts by a business
correspondent on behalf of a banking company or co-operative bank; and receipt by a company or
institution issuing credit cards against bills raised in respect of one or more credit cards.
China-backed AIIB approves USD 329 million loan for Gujarat rural roads
China-led Asian Infrastructure Investment Bank (AIIB) has said its board has approved USD
329 million loan to build access roads to 4,000 villages in Gujarat on 5th of July 2017.
i. The AIIB has approved to build access roads to approximately 4,000 villages in all 33
districts of Gujarat, India.
iv. The project will also better integrate rural population, tribal villages, business and
industries with the national and state economy through better transport connectivity.
Yes Bank clinches new pact with Santander in UK

Yes Bank has signed an MoU in London with Santander to promote India-UK trade and
business opportunities on 5th of July 2017.
i. Yes bank is the Indias fourth-largest private sector bank.
ii. The MoU covers access for Indian businesses looking to expand globally to access
Santanders support network in the UK.
iii. The main objective of both the organization is to boost international trade links.
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Axis Bank launches super bikes loans; to fund 95% of costs

Axis Bank has introduced a special super bike loans for the bike lovers on 5th of July 2017.
i.The loan will offer funding up to 95% of their costs.
ii. The loans which are for Bikes with an engine displacement of over 500 cubic
centimetres(cc) will come at a price tag of 10-11% per annum.
iii. The leisure biking segment is expected to grow at 30% per annum over the next three
years.
Srei, Russian development bank to create $200 mn innovation fund

Kolkata-headquartered Srei Infrastructure Finance has signed an MoU with Russia's
Vnesheconombank on to create a $200 million IT and Innovation Fund.
i. The MoU was signed last month at the St. Petersburg International Economic Forum in the
presence of Prime-Minister Narendra Modi and Russian President Vladimir Putin.
ii. This MoU provides for a credit line of $500 million to Srei.
Indus OS, YES Bank to launch OS-integrated UPI payment platform

Indus OS has announced a partnership with YES BANK to launch the first OS integrated UPI
payment platform on 6th of July 2017.
i. Both the companies intend to launch the first of its kind framework for the UPI platform, which
does not require users to download any additional applications.
ii. Their main aim is to further drive up the existing growth rate of UPI-
based transactions.
iii. The OS-integrated UPI payment platform built by allowing more deep and contextual
integration with the smartphone experience.
iv. The UPI payment platform is integrated with the SMS and dialer interfaces of the
device.
EPFO ties up with 5 banks to collect PF dues

EPFO a retirement fund body has inked pacts with five banks for collections of provident
dues and to make retirement payments.
i. Employers having bank account with these banks can now deposit PF dues directly in EPFO's
account using internet banking in real time basis.
ii. The tie-ups with Bank of Baroda, ICICI Bank, HDFC Bank, Axis Bankand Kotak
Mahindra Bank will help EPFO save around Rs 125 crore a year and expedite its
investments as well as payment of benefits to its members.
iii. The transaction charges for making payments to members in their accounts in
different banks used to cost us Rs 350 crore a year.
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South Indian Bank ties up with PFG Forex

South Indian Bank has tied up with PFG Forex for remittance facility for the benefit of
Indian expatriates from Australia on 6th of July 2017.
i. Under this arrangement, NRIs can enjoy cost-effective and fast remittance services
using SIB's Express facility.
ii. NRIs can visit the PFG Forex outlets across Australia for remittances to India.
India likely to clock 6.9% GDP growth this fiscal - BMI Research
According to a report by BMI Research, Indian economy is expected to clock a real Gross
Domestic Product (GDP) growth of 6.9% in this financial year.
Highlights of Report by BMI Research:
According to a report by BMI Research, India's growth is expected to pick up in coming quarters
by overriding the negative effects from the demonetisation drive in November 2016.
The report noted that the negative effects from demonetisation is already wearing off,
and the Indian economy is likely benefit from positive demographic trends, greater
external stability (due to improved terms of trade from low oil prices), and continued
reforms.
However it noted that public banking sector is still weak on account of mounting
non-performing assets and it is likely to cap the recovery.==
Elaborating this situation, the report mentioned that despite Reserve Bank of
India's efforts to clean up these bad loans, it will still weigh on the economy for some
more time and will thereby negatively affect credit allocation to the productive sectors.
The report outlined that Real GDP growth slowed substantially to 6.1% year-on-
year in the fourth quarter of 2016-17.
Owing to structural slowdown in China, poor policy mix in Japan, and policy
uncertainty in South Korea, the report has forecasted slow economic growth in
North Asia over the course of 2017 and 2018.
India to be base to economic pole of global growth - Harvard study

As per a study presented by researchers at Centre for International Development (CID) at
Harvard University, India will be the base to the economic pole of global growth over
the coming decade, remaining ahead of China.
Outlook for India:
The study mentioned that India and Uganda top the list of the fastest growing economies
to 2025, at 7.7% annually.
India, Indonesia, and Vietnam have accumulated new capabilities that allow for more
diverse and more complex production that predicts faster growth in the coming years
Observations pertaining to Global Economy and China:
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The study has warned of a continued slowdown in global growth over the coming decade.
Growth in emerging markets is predicted to continue to outpace that of
advanced economies, though not uniformly.
The projections are optimistic about new growth hubs in East
Africa and new segments of South-East Asia, led by Indonesia and Vietnam.
The growth projections are based on measures of each countrys economic complexity,
which captures the diversity and sophistication of the productive capabilities embedded
in its exports and the ease with which it could further diversify by expanding those
capabilities.
Chinas economic complexity ranking has fallen for the first time since the global
financial crisis.
The growth projections still have China growing above the world average, at 4%
annually for the coming decade.
RBI notifies norms to limit liability of consumers hit by transaction fraud

The Reserve Bank of India (RBI) on 6th July directed banks to credit the amount involved in the
unauthorised electronic transaction within 10 working days to the account holder from the date
of such notification by the customer (without waiting for settlement of insurance claim, if any).
i. RBI also said that banks need to ask their customers to mandatorily register for SMS alerts
and e-mail alerts for electronic banking transactions.
ii. Reserve Bank of India has capped the customer liability at Rs 25,000 if they report
unauthorised transactions within seven working days.
iii. Banks shall ensure that the resolution of a customer complaint does not exceed 90
days from the date of receipt of the complaint.
iv. Customers will have zero liability if there is a breach of the security architecture and systems
of the bank, provided it is reported within three working days after receiving a communication
from the bank .
v. The longer the time taken to notify the bank, the higher will be the risk of loss to the bank/
customer.
RBI allows NBFCs to offer new pension scheme

The Reserve Bank of India(RBI) has allowed Non Banking Finance Companies to sell and
market the new pension scheme ( NPS).
Those NBFCs which have asset size of Rs 500 crore and above that and have made a net
profit in the preceding financial year are permitted to sell NPS to their clients after
registration with the pension regulator.
According to the RBI NPS subscription collected by them from the public is deposited on the day
of collection itself with the trustee bank
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Canara HSBC Oriental Bank of Commerce Life Insurance ties up with Dhanlaxmi Bank
for marketing bancassurance
Private life insurance company Canara HSBC Oriental Bank of Commerce Life Insurance,
has tied up with Dhanlaxmi Bank for marketing bancassurance on 7th July 2017.
i. All the life insurance products of Canara HSBC Oriental Bank of Commerce Life Insurance would
be made available to customers of Dhanlaxmi Bank and would be sold by the licensed staff of the
bank.
ii. As part of the agreement, the bank will be a corporate agent for 3 years.
RBI considering setting up Public Credit Registry in India

Reserve Bank of India (RBI) is considering setting up a public credit registry in India to
address the twin balance sheet problem of the banking sector and the corporate sector. RBI
Deputy Governor Viral Acharya highlighted the need to set up a public credit registry while
delivering the theme talk at the 11th Statistics Day Conference. Reserve Bank celebrated its
11th Annual Statistics Day Conference on July 04, 2017 on the Theme New Frontiers on
Statistical Methods and Information Base for Central Banks.
What is Public Credit Registry?
According to the World Bank Doing Business Project, "Public credit registry coverage reports
the number of individuals and firms listed in a public credit registry with current information on
repayment history, unpaid debts, or credit outstanding. The number is expressed as a percentage
of the adult population."
Public Credit Registry is managed by a public authority like the central bank or the banking
supervisor, and reporting of loan details to the registry by lenders and/or borrowers is
mandated by law.
Expected Benefits from Public Credit Registry:
Acharya mentioned that public credit registry will help RBI in effectively monitoring
delinquencies in credit market and intervene at an early phase.
It will bring in efficiency in the credit market by helping the lenders in appraisals and
monitoring of the loan portfolio.
The registry will also help the cause of financial inclusion of the small businesses and
individuals by allowing them to establish their reputation via the registry.
Based on available details of collaterals, the registry can enable the writing of contracts
that prevent over-pledging of collateral by a borrower.
India to join new Global foreign exchange committee

India will soon get a seat on the Global Foreign Exchange Committee (GFXC), a newly-
constituted forum of central bankers and experts working towards promotion of a robust and
transparent forex market.
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i. The Financial Stability Board (FSB), an international body for global financial system, in a
progress report on reducing misconduct risks in the financial sector.
ii. The committee was set up in London during a meeting in May 2017 of public and private
sector representatives from the foreign exchange committees of 16 international forex trading
centres.
MobiKwik, Samsung Pay to enable one-tap payment solution for e-wallet users
MobiKwik and Samsung Pay enable one-tap payment solution for e-wallet users.
i. According to the digital payments firm MobiKwik wallet is now integrated with Samsung
Pay Mini to enable one-tap payments at more than 1.4 million MobiKwik-powered merchants
across the country.
ii. The government has also introduced a number of schemes to promote adoption of e-payment
methods like mobile wallets, debit/credit cards and Unified Payment Interface (UPI).
iii. It allows users to just tap and pay using the debit/credit cards and wallets stored on
their mobile devices.
Nepal SBI launches first paperless Banking services sbiINTOUCH

Nepal SBI Bank, a subsidiary of the State Bank of India, on 8th July launched its fully automatic
digital banking services sbiINTOUCH in Kathmandu.
i. This is for the first time the State Bank of India has expanded the paperless banking system
outside India.
ii. Nepal Rastra Bank Governor Chirinjibi Nepal, SBI Banks chairperson Arundhati Bhattacharya
and Indian Ambassador to Nepal Manjeev Singh Puri, jointly inaugurated the new service in
Nepal.
iii. It will offer customers products like Savings Bank, Saral Bachat Account and Combo Savings
Account and the branch will have facilities like kiosks for account opening, debit card
printing and ATM.
RBI amends order on bankruptcy action on 12 large NPAs
The Reserve Bank of India (RBI) has amended its earlier order asking banks to initiate bankruptcy
proceedings against 12 companies which have outstanding loans amounting to over Rs 5,000
crore as on March 2016.
i. The Gujarat High Court asked the RBI to remove the stipulation on its order last month that
the 12 non-performing assets (NPAs), would be granted priority at the National Company Law
Tribunal.
ii. Essar Steel, one of the 12 large NPAs identified by the RBI, had approached the Gujarat High
Court for the RBI proceedings
Govt launches next gold bond tranche from July 10, 2017
The next tranche of sovereign gold bond (SGB) scheme will be launched by Government on July
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10, 2017. This time is providing a 2.5 per cent annual interest to investors.
i. In previous this was launched in November 2015 to rectify the demand for physical gold and
shift a part of the domestic savings, used for the purchase of gold, into financial savings.
ii. The bonds will be available in banks, Stock Holding Corporation of India Limited (SHCIL),
designated post offices and recognized stock exchanges namely National Stock Exchange of
India Limited(NSE) and Bombay Stock Exchange(BSE) and bond applications will be accepted
from July 10 to July 14 ,2017.
iii. Reserve Bank India will be issued the gold bonds to eligible applicants on July 28.The Bonds
will not be eligible for sale to resident Indian entities including individuals, HUFs, Trusts,
Universities and Charitable Institutions.
iv. The minimum investment will be 1 gram of gold. The maximum limit can be subscribed up
to 500 grams per person per fiscal year (April-March). A self-declaration to this effect will be
obtained.
FM launches a new tax payer service module Aaykar Setu

A new tax payer service module Aaykar Setu, was launched by the Union Finance Minister, Shri
Arun Jaitley on 10th of July 2017.
i. It has been launched to enhance mobile access experience and a mobile responsive android
version was also released along with the desktop version.
ii. The module compiles various tax tools, live chat facility, dynamic updates and
important links to various processes within the Income Tax Department in a single module.
iii .This e-initiative would help in reducing physical interface between assesses and tax
assessing authorities.
iv .It would also help in minimizing the chances of any tax harassment.
v .It will bring a new step by the Income Tax Department (ITD) to directly communicate
with the taxpayers.
vi. It will also help in giving multiple informative and useful tax services and aimed at providing
tax information at their fingertips.
36th Foundation Day of NABARD celebrated on July 11 2017

Union Finance Minister, Arun Jaitley was the Chief Guest on the occasion of 36th Foundation
Day of National Bank for Agriculture and Rural Development (NABARD), celebrated at
Vigyan Bhavan in New Delhi on July 11, 2017.
i. NABARD dedicated this day to celebrate the Silver Jubilee (25 years) of Self Help Group
Bank Linkage Programme (SHG BLP).
ii. Self Help Group Bank Linkage Programme (SHG BLP) is a pioneering initiative of Financial
Inclusion by NABARD.The pilot stage of this programme was started in year 1992
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Axis Bank, IIC pact to boost trade with Latin America

Axis Bank has announced a collaboration with Inter- American Investment Corporation
that it will help traders boost relations between India and Latin America.
i. Axis Bank said it is the first Indian Bank to be a part of such a facility.
ii. It will facilitate trade with Latin America and the Caribbean in which Axis Bank will participate
in the Trade Finance Facilitation Programme (TFFP) as a confirming bank.
iii. The collaboration aims to foster bilateral trade relations by allowing ease of
transactions.
SBI waives charge on IMPS fund transfer of up to Rs 1,000

SBI has waived charges for fund transfer of up to Rs 1,000 through its IMPS (Immediate
Payment Service) to promote small transactions.
i. State Bank of India charge Rs 5 along with the applicable service tax for IMPS fund
transfer of up to Rs 1,000.
ii. For IMPS, the charge will be Rs 5 along with GST for fund transfer in the range of Rs 1,000 to
Rs 1 lakh.
iii. The charge will go up to Rs 15 for transactions of Rs 1-2 lakh.
YES BANK Launches 'YES GST' Program to Assist MSMEs

YES BANK, India's fourth largest private sector bank, along with YES Global Institute has launched
'YES GST' program for MSMEs(Micro, Small and Medium Enterprises) under its MSME CSR
initiative, 'Say YES to Sustainable MSMEs in India'.
i. YES BANK is organizing more than 3,000 events on GST over the next 6 months in partnership
with National Small Industries Corporation (NSIC), Federation of Indian Export Organizations
(FIEO) and Federation of Automobile Dealers Associations (FADA), among others.
ii. The bank will help MSMEs to understand the impact of the changes in tax system and prepare
them to know the new GST tax system.
iii. The Bank has also created a portal http://www.Yesbank.In/yes-gst which will be easy-to-
understand knowledge material of all GST related information.
iv. YES BANK has set up a missed call no. (8080945075) for MSMEs to address their queries on
GST
Chhattisgarh govt to merge DCCBs with state cooperative bank

The Chhattisgarh government has planned to merge all district cooperative central banks
(DCCBs) of the state into a single State Cooperative Bank.
i. It aimed to serve the farmers with better and efficient banking facilities.
ii. The cabinet meeting chaired by Chief Minister Raman Singh at Mantralaya on 12 July 2017 and
gave approval in this regard.
iii. After the decision, all DCCBs will be amalgamated into one state cooperative bank. It
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will enact a strong financial infrastructure and emerge as a effective bank.

iv. All the 264 branches of the DCCBs will continue to function in the state as same as earlier but
from now on will give its services as a scheduled cooperative bank.
v. The decision will be benefit the farmers and the interest rates will come down by
another 1.5 to 2% on loans to farmers.
vi. This will directly affect the state government's interest subsidy, where it will be saving Rs 40-
50 crore annually.
YES Bank gets $150 mn from OPIC to fund SME lending

YES Bank has got $150 million funding from US government and Wells Fargo to fund SME
lending on 14th of July 2017.
i. This is the third round of funding between the Overseas Private Investment
Corporation (OPIC) US government development finance institution and Wells Fargo.
ii. Its main objective is to increase lending to small and medium enterprises in India.
iii. SMEs contribute about 45% of industrial output and employ 42 million people in the country.
iv. It is estimated that 3 million women owned businesses in India employ over 8 million
people.
Business houses get time till August 16 to opt for GST composition scheme under GST
till August 16
The government has extended the deadline till 16th August for businesses to opt for
composition scheme under the GST regime. It has been announced on 22nd of July 2017.
i. Small businesses with turnover of up to Rs 75 lakh were earlier given time till July 21 to opt for
the scheme in the Goods and Services Tax regime.
ii. To opt for composition scheme, the taxpayer needs to log into his account at the GST
Portal http://www.gst.gov.in
iii. They have to select Application to opt for the Composition Scheme under Services menu and
then fill up the Form GST CMP-01 to opt for the scheme.
iv. Under composition scheme, traders, manufacturers and restaurants can pay tax at 1%, 2%
and 5%, respectively.
SBI launches realty website 'SBI-Realty' to facilitate home buyers

SBI bank has launched SBI Realty www.sbirealty.in . It is a one stop integrated website
for home buyers.The lender is expected to expand its home loancredit through such move.
i. SBI-Realty will help customers to choose their desired home from the universe of 3000
SBI approved projects across the country.
ii. There are 9.5 lakhs home units available on the website. Customers can compare current and
past trends of prices for the properties in various localities in the city.
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iii. These projects are spread across 13 states and Union Territories covering 30 cities
including metros, semi metro and towns.
India on track to grow at 7.4 per cent in 2017: Asian Development Bank report
According to ADB India is expected to achieve the projected growth rate of 7.4% in 2017
and further up 7.6% on 2018.
i. According to the report, South Asia will be the fastest growing of all sub-regions in Asia
and the Pacific, with growth on track to meet original projections of 7% in 2017 and 7.2% in
2018.
ii. ADB has upgraded its growth outlook in the Asian region to 5.9% in 2017 from 5.7% and to
5.8% for 2018 from 5.7%.
Rs 20 notes in Mahatma Gandhi 2005 series soon: RBI

The Reserve Bank of India will shortly issue bank notes of denomination Rs 20 in Mahatma
Gandhi series 2005. It will be similar in design to those currently in circulation.
i. According to the RBI, the new notes will be bearing inset letter 'S' in the number panel and
signature of Governor Urjit R Patel.
ii. The design of these banknotes to be issued now is similar in all aspects to the Rs 20 banknotes
in the same series issued earlier.
ICRA, IIFCL launch rating system for infra projects

ICRA has launched a new system for rating of infrastructure projects in association with
the India Infrastructure Finance Company Ltd (IIFCL).
i. The new system will focus on the overall recovery of dues by the investor and lender
over the lifecycle of the project.
ii. The system has been developed that would enable more long term monies flow into the
infrastructure sector.
iii. The new rating system will emphasise on the overall recovery of external funds given to
the lender.
ICICI Bank offers up to Rs 15 lakh instant personal loan via ATMs

ICICI Bank will be offering personal loans of up to Rs 15 lakh through its ATMs. It can be
availed by salaried customers even if they haven't previously applied for one.
i. The lender will pre-qualify select customers for personal loans using data from credit
information companies.
ii. A customer can get personal loans of upto Rs 15 lakh for a fixed tenure of 60 months.
iii. Money will get transferred to the customer's account instantly on completion of this
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procedure.
iv. Customers can also avail personal loans from the Banks website, iMobile.
SEBI inks pact with ESMA for Information Exchange on CCPs

Markets regulator SEBI has signed a pact with the European Securities and Markets
Authority (ESMA) for exchange of information Central Counterparties (CCPs) on 20th July
2017.
i. The Memorandum of Understanding (MoU) has been signed between the Securities and
Exchange Board of India (Sebi) and ESMA under the European Markets Infrastructure Regulation
(EMIR).
ii. Central counter parties are entities that helps to ease clearing and settlement activities.
iii. EMIR provides for signing of a cooperation arrangement between ESMA and the
relevant non-EU authorities.
BoB signs MoU with DGS&D for services to govt's e-marketplace

Bank of Baroda has signed an agreement with Directorate General of Supplies & Disposal
(DGS&D) on 21st of July 2017.
i. The MoU has been signed for extending various banking services to Government e-
Marketplace (GeM).
ii. It will benefit all stakeholders and ensure a support system including a dedicated team
for seamless functioning of the portal.
iii. DGS&D has been mandated to set up GeM. It is an initiative to bring greater transparency and
efficiency in public procurements.
Karnataka Bank launches Met Loan & Life Suraksha

Karnataka Bank has launched a Met Loan & Life Suraksha (MLLS) for its customers. It
has been announced on 20th of July 2017.
i. It is a single premium plan covering the loan liability of a customer.
ii. This new product will be available across all the 769 branches of the bank for its borrower
clients.
iii. The bank also introduced KBL MLLS app, which marks the celebration of 15 years of
partnership with M/s PNB MetLife.
IMF keeps India's growth forecast at 7.2% for 2017-18

In latest update of World Economic Outlook released by International Monetary Fund
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(IMF) on July 24, 2017, economic growth outlook for India has been kept unchanged at
7.2% in 2017-18 and 7.7% in 2018-19.
Highlights of IMFs World Economic Outlook Update:
For Indian economy, the report remarked that despite of slowdown following the demonetisation
initiative; growth for 2016 at 7.1% was higher than anticipated due to strong government
spending in the first part of the year.
India however remains the fastest growing major economy in the region and
the world and will continue to grow faster than China in 2017 as well as in 2018.
Economic activity in advanced, emerging and developing economies is forecasted
to accelerate in 2017 to 2% and 4.6%, respectively.
IMF has kept its outlook for global growth unchanged at 3.5% in 2017 and 3.6%
in 2018.
IMF lowered forecasts for US, UK economic growth this year
IMF has cut its growth forecast for the UK economy this year after a weak performance in the first
three months of 2017.
In its first downgrade for the United Kingdom (UK) since the EU referendum in June
2016, the IMF said it expected the British economy to expand by 1.7% this year,
0.3 points lower than the previous forecast in April 2017.
IMF has also lowered its growth forecast for US to 2.1% in 2017 as well as in
2018
Aurionpro launches a Bank in a Box to reduce branch expansion cost for banks
Aurionpro Solutions has launched its Branch-in-a-Box product, the Virtual Teller
Machine (VTM) a fully integrated self-service kiosk for automating 90% of banking
transactions at the branch level.
i. Aurionpro Solutions is a global leader in digital innovation, enterprise security and banking
solutions.
ii. The VTM helps in migrating routine transactions like KYC, account opening, passbook
and statement printing, video assistance, bill payment, cash and cheques.
Nifty creates history, breaches 10,000 mark

On July 24, 2017, NSE Nifty breached the 10,000 level for the first time while the BSE
Sensex hit another record high of 32,374.30 in opening trade.
i. Nifty breached the historic 10,000 level by gaining 44.90 points, or 0.45 %, to trade at an all-
time high of 10,011.30, surpassing its previous intra-day high of 9,982.05 touched on July 24,
2017.
ii. As per brokers and analysts, upbeat sentiment, sustained capital inflows and
widespread buying by retail investors, driven by strong earnings by some NIFTY
constituent companies have been the driving factors of the recent rally in Nifty.
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Standard Chartered Bank unveils forex card

Standard Chartered Bank has launched a Multi-currency Forex Card for overseas
travellers.
i. The card will also provide Forex rate lock-in with zero mark-up on cash withdrawals and
shopping abroad.
ii. The card is designed to offer travelers a secure way to carry money when traveling
abroad.
iii. It will allow customers the convenience of loading up to 20 widely used currencies on one card
with an online reload facility during the overseas travel.
Inflation to rise noticeably to 4.4% in second half of 2017 : Nomura Report

According to the Nomura report Retail Inflation in India is expected to rise "noticeably"
from 'trough' in June to 4.4% in the second half of 2017.
i. According to the Japanese financial services major the inflation expected to see a significant
uptrend and rise above the RBI's target.
ii. As per the Nomura reports CPI (Consumer Price Index) inflation to rise well above the
Reserve Bank of India's mid-point target 4% with core inflation rising to 6.3% in 2018.
iii. Retail inflation hit a low level of 1.54% in June on reduction in food items like vegetables,
pulses and milk products.
iv. In 2018, cyclical factors such as rising rural wage growth, higher minimum support prices and
a narrowing output gap is expected to push inflation higher.
v. The core CPI inflation is expected to rise to 4.4% and 5.2%, respectively, by end-2017
and average 5.3% and 6.3% in 2018.
SIDBI starts merchant banking operations to help MSMEs tap market

Small Industries Development Bank of India (SIDBI) has started its full-fledged merchant
banking operations to help MSMEs tap market announced on 26th of July 2017.
i. Its give benefit to the number of growth-oriented micro, small and medium enterprises
(MSMEs), especially those with a strong technology and innovation quotient.
ii. Its main aim is to enhance the access of MSMEs to the capital markets, including the SME
Trading Platform and Institutional Trading Platform.
iii. It will give beneficial to the SME exchange as well as investors seeking liquidity or exit.
Punjab National Bank ties up with Bajaj Allianz General for distribution
Punjab National Bank (PNB) and Bajaj Allianz General Insurance have signed an
agreement for the distribution of insurance products through the branches on 26th July
2017.
i. Under this agreement, Bajaj Allianz General Insurance will offer Personal lines of
insurance and Commercial line of insurance products to the banks customers.
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Personal Line of Insurance includes health, personal accident, home motor and travel insurance.
Commercial Line of Insurance includes Property, marine and engineering insurance.
ii. The insurance company will also offer wide range of rural insurance products.
BSE inks Cooperation Pact with Egyptian Exchange

BSE has joined hands with Egyptian Exchange (EGX) for cooperation in exchange of information
across business areas.
i. The exchange aim is to cross list and trade securities and It would provide new investment
alternatives to investors in both markets.
ii. The MoU between BSE and EGX represents an important step in integrating both the
exchanges to build capital market flows.
iii. Through this MoU a range of opportunities has been explored for the development of their
businesses, products and markets to share knowledge and strengthen international connectivity.
RBI sets up Supervisory Colleges for six Scheduled Commercial Banks which have
sizeable international presence
RBI has set up Supervisory Colleges for six Scheduled Commercial Banks which have sizeable
international presence.
i. The objectives of the colleges are to enhance information exchange and cooperation
among supervisors, to improve understanding of the risk profile of the banking group.
ii. It helps in facilitating more effective supervision of internationally active banks.
iii. The Banks which are included are State Bank of India, ICICI Bank Ltd., Bank of India,
Bank of Baroda, Axis Bank Ltd. and Punjab National Bank.
NPCI receives final nod from RBI to function as Bharat Bill Payment Central Unit
The RBI has given a final nod to National Payments Corporation of India (NPCI), the
umbrella organisation for all retail payment to function as the Bharat Bill Payment Central
Unit (BBPCU) and operate the Bharat Bill Payment System (BBPS).
i. Total number of Bharat Bill Payment Operating Unit (BBPOU) certified by NPCI now stands
at 24.
ii. The certified units include three public sector banks (Bank of Baroda, Union Bank of India
and Indian Overseas Bank), 10 private banks, 5 Cooperative Banks and 6 non-bank biller
aggregators.
Indian Overseas Bank goes live with Bharat Bill Payment system
Indian Overseas Bank has offered the Bharat Bill Payment System(BBPS) which is
introduced by the National Payments Corporation of India, for its customers.
i. Indian Overseas Bank is one of the three public sector banks (apart from Bank of Baroda and
Union Bank of India) to get the approval from RBI for providing the service.
ii. BBPS is an integrated bill payment system that offers inter-operable online bill payments to
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customers.
iii. The services include online payments of electricity, telecommunication, DTH, water
and gas bills.
India among top nations with potential for digital payments - Digital Evolution Index
India has featured among 60 nations on Digital Evolution Index 2017, exhibiting a high
potential in terms of digital payments.
Digital Payments potential in India:
On the Digital Evolution Index 2017, India has been categorised under the break out
segment which refers to countries that have relatively lower absolute levels of digital
advancement, yet remain poised for growth and are attractive to investors by virtue of their
potential.
The report outlined that India has been experiencing rapid strides of progress with an
evolving payments landscape, catalysed by the governments demonetisation decision.
Indian governments endeavour to boost the acceptance infrastructure coupled with
a host of other economic reforms has further hastened the momentum for the countrys
journey towards a cashless society.
Canara Bank launches ""CANDI""-its first digital branch in Bengaluru

Canara Bank has launched its first Digital Banking Branch at Spencer Towers in MG Road,
Bengaluru.
i. The branch is titled CANDI and its aim to provide an end-to-end digital experience to
customers.
ii. It will enable customers to get most of the information related to their accounts without visiting
the branch.
iii. The bank becomes the first in the public sector category to initiate artificial intelligence in
banking.
iv. A humanoid has been introduced in the branch to addresses basic queries of customers on
banking products and services.
GDP growth in June quarter to be around 6.6% in India - Nomura

Indias GDP growth is to be higher at 6.6% in the June quarter from the previous three
months this year.
Key Facts:
According to Japanese financial services major Nomura, the growth which was higher in end-of
March quarter had slightly lower towards end of the June quarter due to destocking and
uncertainty ahead of the Goods and Services tax (GST).
According to Nomura it is expected average GDP growth in Q2 (April-June) to be
modestly higher at 6.6% from 6.1% in Q1 (January-March).
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In the second half (H2) of 2017, growth recovery is expected to accelerate to 7.4%
The pick-up growth numbers in the second half is likely to be led by a
recommencement of production after GST, ongoing remonetisation, normal
monsoons, stronger rural consumption and easier financial conditions (lower
lending rates, liquidity).
In the March quarter India lost the tag of the fastest growing economy to China with a
GDP growth of 6.1% which fallen down the 2016-17 expansion to 7.1%.
Pay hikes for state government employees and a pick-up in external demand could also
be one of the factors.
RBI slaps Rs. 1 cr penalty on Union Bank for KYC non-compliance

RBI has imposed a penalty of Rs 3 crore on Union Bank of India for non-compliance on
Know Your Customer (KYC) norms announced on 31st of July 2017.
i. Rs.2 crore was imposed for huge cash withdrawals in certain accounts maintained with
Union Bank of India and Rs. 1 crore was imposed for fraud in a bank. The penalty was
imposed on 26th of July
ii. The central bank had examined the documents regarding the complaint and notice was issued
to
SBI cuts saving account rate by 0.5% on balance up to Rs 1 cr

On July 31,2017 State Bank of India has cut interest on savings account deposits by 50 basis
points to 3.5 per cent on balance up to Rs 1 crore.
i. The bank decides to continue 4 per cent interest on savings account balance of Rs 1 crore and
above.
ii.Revision of saving bank rate will enable the bank to maintain marginal cost of fund based
lending rate (MCLR) at existing rates.
ICICI Bank ends joint venture pact with Fairfax Financial

i. The bank signs termination agreement along with stake-sale move in ICICI Lombard via IPO.
ii. ICICI General became the first private general insurance company in India to cross
Rs.10,000 crore in premium income in FY17.
iii. Its gross domestic premium income (GDPI) rose to Rs.10,725 crore in fiscal 2017, a growth of
32.6 per cent over fiscal 2016.
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Bank unions to observe July 19 as 'Save public sector banks day'

i. The United Forum of Bank Unions has decided to observe July 19, the 48th anniversary of
nationalization of major banks, as 'Save public sector banks' day.
ii. All members will wear a commemorative badge on the day, display posters in front of all
branches, distribute leaflets and hold rallies/demonstrations at all centres across the country.
iii. The main challenge that they face today is the alarmingly increasing bad loans(Non-
Performing Assets).
BoB to raise Rs 3,000 crore via Basel III bonds

i. Bank of Baroda is set to raise up to Rs. 3,000 crore through Basel III compliant bonds.
ii. The finance committee of BoB approved issuance of AT-1 capital bonds compliant with Basel
III capital regulations.
iii. Raising of funds will be in single or multiple tranches.
RBI skips releasing balance sheet for the week ended June 30 for first time ever
i. RBI has for the first time skipped releasing the balance sheet for the week ended June 30.
ii. The central bank is still working to make the final estimate of the currency in circulation a
prominent item of liabilities on its balance sheet.
iii. The currency in circulation is a major liability on the central bank's balance sheet.
iv. They are mandated to be put in public domain as these are part of the public account.
About Rs 72,000 cr undisclosed income detected by IT department in last 3 years

i. Massive searches, seizures and surveys by the Income Tax department over the last three years
have led to the detection of around 71,941 crore rupees of undisclosed income in the country.
ii. During the period of demonetisation from November 9 last year to January 10 this year, the
total undisclosed income admitted was more than 5,400 crore rupees and the total quantity of
gold seized stood at 303.367 kilograms.
Bank of England unveils plastic Jane Austen 10 note

i. The Bank of England unveiled the new 10 note at Winchester Cathedral on the 200th
anniversary of Austens death.
ii. The note will be made out of plastic, like the new 5 note featuring Winston Churchill, and will
be in circulation from September 14.
iii. Jane Austen was chosen to replace Charles Darwin on the 10 note.
Telangana to have separate Agriculture Budget from next year

Telangana Chief Minister K Chandrasekhar Rao, has decided to present a separate
agriculture budget for the state from next year.
i. Chief Minister Rao has also decided to substantially enhance funds for the agriculture
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sector.
ii. He has asked the officials to form farmers associations at various levels from
villages to the state to organise the cultivators.
Banking & Finance Awareness August 2017

Airtel Payment Bank ties up with HPCL for ATM services
Airtel Payments Bank; Indias first payments bank has announced a strategic
partnership with Hindustan Petroleum Corporation Limited (HPCL) on 1st of August 2017.
i. Under which 14,000 HPCL fuel stations will act as banking points for Airtel Payments
Bank.
ii. It also offer facilities such as opening of account, cash deposit and cash withdrawal to
the payment banks customers.
iii. Airtel Payments Bank customers will also be able to make digital payments for fuel purchases
across 14,000 HPCL fuel stations by using their mobile phones.
iv. These cashless payments can be made via smartphones (MyAirtel App) as well as feature
phones (USSD).
v. There is no transaction fee for these digital payments
Reserve Bank announces its third bi-monthly policy review of current fiscal
On August 2, 2017, Reserve Bank of India (RBI) announced Third Bi-Monthly Monetary Policy
Statement for financial year 2017-18. This time, RBI has cut the policy repo rate by 25
basis points (bps) to 6 percent.
Post the Third Bi-Monthly Monetary Policy Statement announcement, the policy rates
Policy Repo Rate 6.00% Reduced by 25 basis points. Earlier it was 6.25%
Reverse Repo Rate 5.75% Reduced by 25 basis points. Earlier it was 6.00%
Marginal Standing Facility Rate 6.25% Reduced by 25 basis points. Earlier it was 6.50%
Bank Rate 6.25% Reduced by 25 basis points. Earlier it was 6.50%
Cash Reserve Ratio (CRR) 4.00% Unchanged since 9th February 2013
Statutory Liquidity Ratio (SLR) 20.00% Unchanged since 7th June 2017
India on track to meet 3.2% fiscal deficit target UBS Report
As per a report by global financial services major UBS, Indian government is on track to
achieving the fiscal deficit target of 3.2% of Gross Domestic Product (GDP) in the current
fiscal year.
i. Indian Governments fiscal deficit narrowed from a peak of 6.5 per cent of GDP in 2009-
10 (after the global financial meltdown) to 5 per cent of GDP in 2016-17 and is estimated to
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fall further to 3.2 per cent of GDP in 2017-18.

ii. However, the states fiscal position remains stretched, with the fiscal deficit rising from a
low of 1.9 per cent of GDP in 2011-12 to 3 per cent of GDP in 2016-17.
SBI, Samsung collaborate to advance Digital India initiative

The State Bank of India (SBI) and Samsung India has announced the availability of
Samsung Pay for higher variants of SBI debit card to advance Digital India
initiativeon 1st of August 2017.
i. The Bank aimed to be the Banker to Digital India and has been at the fore-front of all
digital initiatives in the banking space.
ii. Samsung Pay consumers holding eligible SBI Debit Cards can avail a flat Rs. 100 cashback on
minimum transaction amount of Rs. 500.
iii. The cardholder can avail maximum cashback of Rs. 500 per card, during the offer period
from 1st August to 31st August.
India, ASEAN-5 more fetching to FDI than other emerging markets

As per Japanese financial services firm Nomura, India along with ASEAN 5
countries (Indonesia, Malaysia, Thailand, Philippines and Vietnam) is more attractive Foreign
Direct Investment (FDI) destination as compared to other emerging markets.
i. Nomura has dubbed India and ASEAN-5 (Indonesia, Malaysia, the Philippines, Thailand and
Vietnam) as Asias tiger cubsand has said that Foreign Direct Investment (FDI) flows to
these nations are expected to surge to around USD 240 billion by 2025.
ii. In India, FDI is expected to flow into sectors that need growth capital such as
infrastructure, banks, e-commerce and hospitals and those with strong long-term growth
prospects which include retail, automobiles, pharmaceuticals and diagnostics.
SBI to raise 2000 crore via BASEL-III bonds

State Bank of India plans to raise Rs 2,000 crore by allotting Basel-III compliant bonds
to various investors.
i. The committee of directors for capital raising accorded its approval on 3rd of August 2017.
ii. It will allot 20,000 AT1 Basel-III compliant non-convertible, perpetual, subordinated
bonds in the nature of debentures.
iii. The bonds will carry a coupon rate of 8.15% per annum with a call option after 5 years or the
anniversary date thereafter.
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India signs loan agreement with AIIB for Financing of US$ 329 million for Gujarat Rural
Roads Project
On August 4, 2017, Government of India/ Government of Gujarat signed US$ 329 million
Loan and Project Agreements with Asian Infrastructure Investment Bank (AIIB) for
or Gujarat Rural Roads Project. The loan agreement was signed in New Delhi.
i. The objective of Gujarat Rural Roads Project is to improve the rural road connectivity and
accessibility by providing all weather road connectivity to 1,060 villages in all the 33 districts
in Gujarat.
ii. This project will benefit nearly 8 million people in Gujarat.
Finance Minister Arun Jaitley announces new ETF-Bharat-22; Sectoral cap set at 20%
On August 4, 2017, Finance Minister Arun Jaitley launched a new Exchange Traded Fund
(ETF) under the name Bharat 22, comprising shares of 22 companies from 6 sectors of
the economy. This decision comes on the basis of past experiments with CPSE-ETF which
proved to be successful.
i. The ETF will feature four banking stocks SBI, Axis Bank, Bank of Baroda and Indian
Bank other than CPSEs such as Nalco, ONGC, IOC, BPCL and Coal India.
ii. Besides, there will be nine other PSUs as well as REC and PFC.
Canara Bank hits overseas bond market with $400-mn issue

Canara Bank has hit the international debt market with a benchmark dollar bond issue that will
have a tenor of 5 years. Through this issue, Canara Bank will raise $400 million as part of
its $2 billion medium-term note programme. A medium-term note (MTN) is a
debt note that usually matures (is paid back) in 510 years.
i. Bond sale will be drawn through London branch of Canara Bank.The bonds will be listed on
the Singapore Stock Exchange.
ii. Foreign rating agency Moodys has assigned a Baa3 rating to the issue, which is on par
with the sovereign rating since majority stake in the bank is owned by the Indian government.
Kotak Banks new forex service Kotak Remit

Kotak Mahindra Bank has launched a new service called Kotak Remit.
i. This service is an Aadhaar-based integrated outward forex remittance solution for both
customers and non-customers.
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ii .It offers a completely paperless process that will be helpful to users to register online using
Aadhaar and PAN numbers, and initiate remittances instantly.
Companies to disclose bank defaults within one day: SEBI

The Securities and Exchange Board of India (SEBI) has directed to companies which fail to
disclose any default on the payment of interest or repayment of principal to banks or financial
institutions within a day.
i. on 18 July, Sebi issued a circular with listed banks to disclose divergences in bad-loan
estimates to stock exchanges as soon as they receive a communication from the Reserve Bank
of India (RBI).
ii. SEBI has directed that, starting 1 October, listed companies will need to disclose defaults on
loan repayments within one working day.
Forex reserves surge to record $392.86 billion

During the week to July 28, the RBI showed data which refers the countrys foreign exchange
reserves surged by $1.536 billion to touch $392.867 billion, helped by rising in foreign
currency assets (FCAs).
i. In the previous week, it had increased by $2.27 billion to $391.33 billion.
ii. Foreign currency assets (FCAs) rose by $1.609 billion to USD 368.759 billion. FCAs include
effect of appreciation or depreciation of non-US currencies such as the euro, the pound and the
yen held in the reserves.
MobiKwik partners Bajaj Finance for Larger financial service pie

In a bid to emerge as a top consumer finance brand in the digital space, mobile wallet
major MobiKwik has entered into a strategic partnership with Bajaj Finance to transform
itself into a financial services app from a payments app at present.
i. Under this partnership, Bajaj Finance has picked up 10.83 per cent equity stake in
MobiKwik for about Rs. 225 crore and will offer its lending (purchase finance, credit card,
mortgage loans and personal loans) and insurance products to be sold through the MobiKwik app.
ii. MobiKwik, which currently has a user base of 55 million, will, through this partnership, get
immediate access to about 100 million customers of Bajaj Finance.
iii. From a combined customer base of 155 million today, MobiKwik will aim to offer financial
services to 300 million users in the next couple of years.
Mastercard, PayPal expand partnership into Asia Pacific

Mastercard and PayPal have announced an extension of their partnership into Asia Pacific
for making MasterCard a clear payment option within PayPal.
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i. PayPal will add Mastercard as a payment method to their e-wallet and consumers can make it
their default payment option.
ii. Card Company will provide tokenization services and will enable mobile payments using
PayPals digital wallet at more than 6.5 million contactless-enabled merchant
locations across the globe.
iii. The partnership will also add Master pass as a payment option for merchants that
process payments via Braintree.
PNB customers to pay higher charges for non-credit services

PNB customers will have to pay charges for depositing cash above Rs 5,000 in a non-base
branch even if it is located in the same city.
i. Currently, the customers of Punjab National Bank (PNB) are levied charges only for depositing
cash over Rs 25,000 at a non-base branch within the same city.
ii. A customer will have to pay Re 1 per Rs 1,000 for above Rs 5,000 cash deposit or part
thereof with a minimum of Rs 25 per transaction.
iii. It has been decided to revise the non-credit related charges exclusive of GST with effect from
1st of September 2017 for cash deposit above Rs 5,000 at other than base branch within the same
city.
iv. The bank has also revised upwards the cheque returning charges for a payment of ab ove Rs
1 crore to Rs 2,000 for first cheque and Rs 2,500 for subsequent bounces.
v. Currently, for cheque returns of above Rs 1 crore, the charges are Rs 1,000 for first cheque
and Rs 1,500 for subsequent instances.
VI .At an outstation branch, cash deposit up to Rs 5,000 will be free of cost from 1st of
September, which at present is limited for Rs 25,000.
vii. For above Rs 5,000 cash deposit at outstation branch, the bank will levy Rs 2 per Rs
1,000 or part thereof with a minimum of Rs 25 per transaction.
viii. The locker rent is being raised by 25% for small, medium, large and extra-large
sizes to Rs 1,500, Rs 3,500, Rs 5,500 and Rs 10,000 respectively, for metro branches
Finance Ministry panel to resolve bank pensioners issues

The Department of Financial Services under Ministry of Finance has set up a committee to
resolve the pending issues of bank pensioners and retirees. This is the outcome of a series
of meetings the All India Pensioners and Retirees Confederation had with the Union
Finance Minister Arun Jaitley; Minister of State Santosh Kumar Gangwar and department
officials.
Demand of Pensioners/Retirees:
i. 100 per cent DA neutralisation for pre-2002 retirees
ii. Improvement in family pension, medical insurance and a medical benefit scheme
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iii. Pension updation

iv. Second options to compulsorily retired officers and resignees who have put in a pensionable
service.
ICICI bank launches instant credit card with the limit upto 4 lakhs
ICICI Bank has announced the launch of Instant Credit Card Service that will enable its
savings account customers to get a credit card instantly, in a completely digital and
paperless manner.
i. Using the Instant Credit Card Service, pre-qualified customers can apply and get credit
card number and other important details online.
ii. Under which, he/she can immediately start shopping online, without having to wait for the
physical card to arrive.
iii .There is a credit limit of up to Rs 4 lakh based on pre-checked bureau scores.
iv. The application procedure also incorporates an additional level of authentication in order to
make the security of the offering robust.
v. Currently, this facility to apply for a credit card is available through the Banks internet banking
platform.
vi. It will also be available shortly on iMobile, the Banks mobile banking application soon.
IDFC Bank partners with ZETA for digital payments solution

IDFC Bank has partnered with digital payments company Zeta, to launch IDFC Bank
Benefits announced on 9th August 2017.
i. IDFC Bank Benefitsis a payment solution for corporates that digitizes employee spends
and claims, making the process simple, real-time and paperless.
ii. The end-to-end digital solution comprises an IDFC Bank Benefits Card and Zeta app which
unite the full suite of allowances and reimbursements offered by an employer into one preloaded
card.
iii. Employees can also access the Benefits Card via the Zeta app on mobile or web.
iv. This enables them to track spends, entitlement limits and submit claims, digitally.
v. The Benefits Card and Zeta appenhances user experience as it provides convenience and
flexibility to the employee.
PNB introduces Biometric attendance register

Punjab National Bank (PNB) has introduced a biometric attendance register in the place of
the existing system of signing attendance in the attendance register.
i. The new system of marking attendance will be implemented in branches/offices with immediate
effect, the circular issued on 3rd August.
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ii. The biometric attendance device will capture the attendance along with the time of
marking the attendance.
SEBI launches online registration for custodians of securities

Markets regulator SEBI has introduced an online registration mechanism for custodians of
securities to make it convenient for them to do business on 10th of August 2017.
i. The new system would help custodian of securities to complete registration and other
regulatory filings with SEBI much faster and in a cost-effective manner.
ii. Custodian of securities holds shares and other assets in electronic or physical form.
iii. The Securities and Exchange Board of India mentioned that the new system has been made
operational with immediate effect.
RBI to pay Rs. 30,659 crore dividend to government

This year, Reserve Bank of India (RBI) will be transferring to the Government Rs 30,659
crore as dividend. This amount is less than half the amount of Rs 65876 crore it transferred to
Government last year.
Probable Reasons for lower dividend this year:
i .The reduction in the transfer of surplus to the government could be due to a number of factors
including higher cost of printing new currency notes and cost of managing excess
liquidity generated from phasing out of Rs 500 and Rs 1000 notes.
ii. During last year, foreign currency reserves of RBI were fetching less return because
most of the foreign countries were giving negative returns or very low returns.
Canara Bank launches two new digital services

On August 10, 2017; Canara Bank unveiled two new digital services for online
payments. Bharat QR (Quick Response) for payment settlement at merchant locations
and Bharat Bill Payment System (BBPS), an integrated bill payment system for net banking
customers.
i.Bharat QR (Quick Response): It is a mobile application, which enables a merchant to accept
payments as settlement for sale of goods or services. The service product rides
on VISA/MasterCard/RuPay cards and holders need not divulge card information to merchants.
ii.Bharat Bill Payment System (BBPS): It is an initiative of the Reserve Bank of India
(RBI) and is managed by the National Payments Corp of India (NPCI). It offers bill payment
services to the banks net banking customers with network of agents.
Indian Bank Brings 2-tier Interest Rate for Savings Accounts

Indian Bank has introduced two tier interest rate structures for saving bank accounts. It will
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offer 4% per interest per annum for incremental balance over Rs 50 lakh and 3.50% per
annum for balance up to Rs 50 lakh.
i.The new interest rate will be effective from 16th August 2017.
ii.Recently SBI had bring down interest rate on savings account deposits by 50 basis points to 3.5
per on balance of Rs 1 crore and below.
iii.SBI continues to offer 4% interest on savings account balance of Rs 1 crore and above.
Flipkart has become the third most funded private company globally
Flipkart has taken over the rein of the market by becoming the third most funded private
company in the world.
i.Flipkarts total raised capital is now almost $7 billion which is higher than that raised by
global giants like online house rental aggregator Airbnb ($3.3 billion) and mobile phone maker
Xiaomi ($1.4 billion).
ii.In valuation, Flipkart stands at the 9th position with about $15 billion.
iii.Uber is the most valued company at $68 billion, followed by DidiChuxing at $50 billion, and
Xiaomi at $46 billion.
iv.The top two are both ridehailing platforms China-based Didi Chuxing and US-based
Uber.
SBI gives leg-up to CSR initiatives, adopts 50 villages

On August 14, 2017, State Bank of India (SBI) launched a Corporate Social Responsibility
(CSR) initiative, SBI Gram Seva, which will work in the areas of health, education,
environment and rural infrastructure.
About SBI Gram Seva:
The SBI Foundation will identify and partner with NGOs to carry out CSR initiatives.
Under the initiative, SBI will adopt five villages each from 10 village panchayats
with each village getting around Rs 2.40 crore over the next three years.
SBI Chairperson Arundhati Bhattacharyahas mentioned that 10 gram panchayats
comprising of 50 villages in six states have already been adopted, and the bank plans
to adopt 100 gram panchayats in the next three years.
City Union Bank offers instant credit cards

City Union Bank is going to offer instant credit cards and customers can generate a credit
card online.
i.The bank introduced the option of an instant credit card for free for its Net banking customers.
ii.According to the Bank sources about 80 customers had generated a credit card on Day 1.
iii.All that a customer has to do is log on to his/her net banking account and seek a credit
card.
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iv.The customer will be allowed a credit limit of up to 80% of the deposit or a maximum of 3 lakh.
v.The physical delivery of the card will take a day or two. In the meantime, the card-holder can
use it for online purchases.CUB has tied-up with MasterCard for the instant credit card.
Aadhar must for subsidised farm loans: RBI

Reserve Bank of India (RBI) has made Aadhar linkage mandatory for farmers who wish to
avail short-term crop loans in 2017-18 on 16thAugust 2017.
i.Under Interest Subvention Scheme, the banks are advised to make Aadhar linkage mandatory
for availing short-term crop loans in 2017-18.
ii.The interest subvention of 2% will be calculated on the crop loan amount from the date
of its disbursement/drawal up to the date of actual repayment of the crop loan by the farmer or
up to the due date of the loan fixed by the banks whichever is earlier.
iii.It is for a maximum period of one year.
iv.RBI has defined that farmers can avail of short-term crop loans of up to Rs 3 lakh at
the subsidised interest rate of 7%that could go down to 4% on prompt repayment.
V.An additional interest subvention of 3% will be available for those who pay their pay dues
on time.
Vi.This also implies that the farmers paying promptly as above would get short term crop loans @
4% per annum during the year 2017-18.
SBI holds home loan utsav in Bengaluru

State Bank of India held two-day Home Loan Utsav at its local head office in Bengaluru.
(a)The loan Utsav saw title sponsor is GM Infinite.
(b)Subtitle sponsors- Brigade Group, Salarpuria Sattva and DSR Infra.
i.The bank is offering a 0.25% concession in interest rate from the fourth year of the home
loan if it is availed at the SBI Utsav.
ii.Those buying flats in real estate projects for which SBI has extended loans can avail home loans
in four days.
Karur Vysya Bank inaugurates AADHAAR enrolment centre in Chennai

Private sector Karur Vysya Bank hasunveiled the Aadhaar Enrolment Centre in Chennai.
i.The Unique Identification Authority of India had advised commercial banks to provide Aadhaar
enrolment and updation facility at various branches.
ii.KVB is the first private sector bank to provide Aadhaar Enrolment Centre service in the
country.
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NSE to introduce seamless corporate announcement filing mechanism

NSE has decided to introduce seamless corporate announcement filing mechanism for information
related to change in auditors, change in directors, and declaration of audit reports with
unmodified opinion. This system will be in effect from 17th August 2017.
i.The listed companies would be required to file corporate announcements on reappointment
and statement of impact of audit qualifications through the mechanism.
ii.The announcements filed by listed companies under the mechanism are circulated directly on
the NSE website without the exchanges intervention.
iii.It would help in dissemination of corporate announcements to investors without loss of time.
Axis Bank to waive 12 EMIs on home loans under Shubh Aarambh scheme
Under the new scheme Shubh Aarambh Home Loans Axis Bank will waive 12 equated
monthly installments (EMIs) on regular repayments of loans of up to Rs 30 lakh.
i.The lender has introduced ShubhAarambh Home Loans, in which 12 EMIs are waived 4 EMIs
each after the fourth, eighth and 12th year from the date of the first disbursement.
ii.Customers also have the option to transfer existing home loans to Axis Bank without
additional cost.
RBI Introduces Rs. 50 banknote in Mahatma Gandhi (New) Series

The Reserve Bank of India (RBI) will soon release Rs 50 denomination banknotes in the
Mahatma Gandhi (New) Series, having signature of Governor Urjit R. Patel. RBI clarified
that all the Rs 50 banknotes in the earlier series will continue to be a legal tender. In December
2016, RBI had announced that it would soon issue new currency notes of Rs 50 and Rs 20.
About Rs 50 denomination banknotes in the Mahatma Gandhi (New) Series:
The base colour of the new note is fluorescent blue. It has a motif of Hampi with
Chariot on the reverse, depicting the countrys cultural heritage.
The note has geometric patterns aligning with the overall colour scheme, both at the
obverse and reverse. Dimension of the banknote will be 66 mm x 135 mm.
Design & Security Features Rs 50 denomination banknotes in the Mahatma Gandhi
(New) Series:
i.Front Side of the Note ii.Back Side of the Note
SBI tops share of willful default to PSBs

Countrys largest lender SBI accounts for over 27% of the total amount owed to public
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sector banks by wilful defaulters announced on 20th August 2017.

i.Total 1,762 wilful defaulters owed Rs 25,104 crore to State Bank of India as on 31
March.
ii.Punjab National Bank (PNB) is next on the list with 1,120 wilful defaulters having
outstanding non-performing assets (NPAs) or bad loans of Rs12,278 crore.
iv.According to the Finance Ministry data total outstanding loans due to public sector banks
by wilful defaulters amounted to Rs92,376 crore.
vii.Gross NPAs of the public sector banks rose to Rs6.41 lakh crore at the end of March
2017 as against Rs5.02 lakh crore a year ago.
SBI waives off up to 100% processing fee on car, gold, personal loans
State Bank of India (SBI) has announced waiver of up to 100% of processing fee on car
loans, personal gold loans and personal loans for the festive season.
i.SBI had previously waived off processing fee on the takeover of home loans.
ii.The bank has waived the entire processing fee on car loans till 31st December
2017 and half of the processing fee on personal gold loans till 31st October 2017.
iii.Customers can also avail 50% waiver on processing fee on Xpress Credit, a personal loan
offering by the bank, till 30th September 2017.
NABARD Approves Rs 1,350-cr Loan to Rajasthan Government

The National Bank of Agriculture and Rural Development (NABARD) has sanctioned a loan
assistance of Rs 1,349.55 crore to the Rajasthan government announced on 20th Aug 2017.
i.The loan has been approved for creation of rural infrastructure in the state under the
Rural Infrastructure Development Fund (RIDF).
ii.The sanction includes assistance for construction of two rural drinking water supply projects,
strengthening and rehabilitation of 1,614 rural roads and modernisation of three major irrigation
projects.
iii.An amount of Rs 599.84 crore has been sanctioned for rehabilitation of 1,614 roads.
Two regional rural banks record over Rs.150-cr profit in FY17

According to the Reserve Bank of Indias Report on Trend and Progress of Banking in
India, 45 of the 56 RRBs earned profits without carrying any accumulated losses during
2015-16.
i.Karnataka Vikas Grameena Bank and Andhra Pragathi Grameena Bank recorded net
profit of more than Rs.150 crore during 2016-17.
ii.Out of the 56 regional rural banks (RRBs) in the country two RRBs have recorded net profit of
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over Rs.150 crore each during 2016-17.

iii.These are among the 49 RRBs that recorded a profit in 2016-17. Seven RRBs suffered losses
during the period.
iv.As for 19 RRBs, data was taken from the figures compiled by All India Regional Rural Bank
Employees Association.
v.The three RRBs promoted by Syndicate Bank Prathama Bank, Karnataka Vikas Grameena
Bank, and Andhra Pragathi Grameena Bank have improved their net profit over 2015-16 and
emerged in the top league of profit-making RRBs during 2016-17.
vi.These RRBs covered 18 districts in three States with a network of 1,563 branches.
vii.At the end-March 2017, RRBs had 21,398 branches spread across 676 districts and 28 States.
Asia Index launches S&P BSE Bharat 22

Asia Index Private Ltd has announced the launch of S&P BSE Bharat 22 Index. It has
been launched to track the performance of state-run companies in which the central
government has divested its stake.
i.The index, as benchmark for Bharat 22 disinvestment program of the government.
ii.It comprises of 22 select bluechip companies of which:
16 are Central Public Sector Enterprises (CPSE).
3 are from Specified Undertaking of the Unit Trust of India (SUUTI)
3 are PSU Banks, and are listed on the BSE.
iii.S&P BSE Bharat 22 has been licensed to ICICI Prudential AMC for development of an exchange
traded fund (ETF) based on the index.
iv.It covers six sectors namely industrials, finance, utilities, energy, FMCG, basic
materials and telecom.
Dhanlaxmi Bank, DHFL Pramerica tie up for bancassurance

DHFL Pramerica Life Insurance Company has signed on Kerala-based Dhanlaxmi Bank as
its bancassurance partner announced on 24th of Aug 2017.
i.Under which the Kerala-based Dhanlaxmi Bank will distribute retail and group life insurance
products to its customers across 260 branches in India.
ii.The bank anticipates an annual incremental income of 20-30 crore from this
distribution business.
iii.With this tie-up, the company is in a strong position to consolidate its presence in Kerala, Tamil
Nadu, Andhra Pradesh and Karnataka.
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New Rs 200 banknote to be launched by RBI

i.The Reserve Bank of India has launched the Rs 200 notes from 25th August from select RBI
offices and some banks.
ii.The notes will be in the Mahatma Gandhi (New) Series, bearing signature of Governor Urjit
Patel.
Key Specifications of the Note, as detailed by the RBI:
See through register with denominational numeral 200.
Latent image with denominational numeral 200.
Denominational numeral 200 in Devnagari.
Portrait of Mahatma Gandhi at the centre.
Micro letters RBI, Bharat (in Hindi), India and 200.
Windowed security thread with inscriptions Bharat in Hindi and RBI with colour shift.
Colour of the thread changes from green to blue when the note is tilted.
Denominational numeral with rupee symbol, Rs 200 in colour changing ink (green to
blue) on bottom right.
For visually impaired: Intaglio or raised printing of Mahatma Gandhi portrait, Ashoka Pillar
emblem, raised Identification mark H with micro-text Rs 200, four angular bleed lines with two
circles in between the lines both on the right and left sides.
On the reverse side
(a) Year of printing of the note on the left. (b) Swachh Bharat logo with slogan
(c) Language panel (d) Motif of Sanchi Stupa
(e)Denominational numeral 200 in Devnagari
Dimension: Dimension of the banknote will be 66 mm 146 mm.
New Rs 50 note to hit market soon, old note to continue

A new fluorescent blue Rs 50 banknote in the Mahatma Gandhi series, slightly smaller and
slimmer than the existing note will soon be introduced by the Reserve Bank of India. All earlier
notes will also continue to be legal tender. The dimensions of the new note will be 66mm x
135mm. While the height is the same as the new Rs 500 and Rs 2,000 banknotes which were
issued after demonetization, the width is lesser than the Rs 500 banknote.
HDFC Bank launches all-in-one PoS machine

HDFC Bank has launched an all-in-one offering, DigiPoS Machine that offers a complete
suite of digital payment solutions announced on 22nd of Aug 2017. With DigiPoS,
a merchant can use as many as 12 various digital payment options like UPI, Bharat QR,
SMS Pay, PayZapp, Tap & Pay, EMIs in addition to debit/credit card swiping.
i.The merchant has to do is to update his/her machine with a software at no cost.
ii.The new software will work only on HDFC Bank-issued PoS machines, but will accept any
card or app from any bank/service provider.
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iii.DigiPoS integrates all popular digital payment methods in merchant payment machines offering
greater convenience to both customers and merchants.
iv.The software for DigiPoS has been developed in-house by the banks engineers.
v.The upgraded device will also allow merchants to offer equated monthly instalment
(EMI)-based payments using HDFC Bank credit and debit cards.
Banks to pay 3% IGST on gold imports

According to the government norms the Banks importing gold and precious metals will have
to pay 3% tax under the GST which can be claimed as input tax credit.
i.Under GST 3% Integrated-GST is payable on all imports of precious metals in addition to the
basic customs duty. IGST paid can be taken as input tax credit by the banks.
ii.The CBEC also clarified on levy of GST where the total value of a gold ornament is Rs
30,000, including Rs 2,000 as making charge.
iii.GST is payable at the rate of 3% of the total transaction value of jewellery, whether
the making charge is shown separately or not.
Govt. notifies changes in Banking Regulation Act

The government has find a way to initiate insolvency resolution process to recover bad loans by
giving authorize to RBI through Banking Regulation (Amendment) Act.
i.The banking sector is burdened with non-performing assets (NPAs) of over Rs 8 lakh crore, of
which Rs 6 lakh crore is with public sector banks (PSBs).
ii.The RBI had identified 12 accounts each having more than Rs 5,000 crore of outstanding loans
and accounting for 25 per cent of total NPAs of banks for immediate referral for resolution under
the bankruptcy law.
IRDAI launches central database of insurance sales persons

The Insuranace Regulatory and Development Authority of India (IRDAI) has launched a Central
Database of all Insurance Sales Persons in the country.
i.`Envoy :-The database make sure that all licensed insurance sales persons working for
insurers and intermediaries including entities such as insurance agents, broker qualified persons,
specified persons of corporate agents, authorized verifiers of web aggregators, point of sales
persons (POS) .They do not work with multiple insurers and intermediaries in the same business
category.
ii.Envoy covers POS, specified persons of corporate agents, qualified persons of insurance brokers
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and authorised verifiers of web aggregators.
Canara HSBC Oriental Life Insurance Company (CHOICE) launches PoS-Easy Bima Plan
Canara HSBC Oriental Bank of Commerce Life Insurance Company
(CHOICE) has launched with a Point-of-Sale Easy Bima Plan targeted at the mass-
market segment.
i.The product PoS Easy Bima Plan is the first PoS product for the company. It will provide life
cover and also returns all premiums paid during the payment term on survival till
maturity.
ii.It is specially designed to provide an affordable and hassle free protection, to take care of the
needs of your loved ones.
iii.The affordable premiums start from Rs.1,000 annually and there is inbuilt double life
cover in case of accidental death.
Ujjivan SFB receives scheduled bank status from RBI

Ujjivan Small Finance Bank Ltd is a wholly-owned subsidiary of Ujjivan Financial
Services Ltd, has been included in the second scheduled to the RBI Act 1934 on 30th Aug
2017.
i.This grants the Scheduled Bank status to Ujjivan Small Finance Bank from the date of
notification.
ii.With this Ujjivan Small Finance Bank can issue certificate of deposits.
iii.Ujjivan SFB commenced its operations as a Small Finance Bank with effect from February 1,
2017.
Freyr Energy ties up with Axis Bank

Solar energy services company Freyr Energy has tied up with Axis Bank announced on
31st Aug 2017.
i.It will offer term loans ranging from Rs 5 lakh to Rs 50 lakh for tenures up to five years,
for solar rooftop installations in Telangana and Andhra Pradesh.
ii.This loan programme will help MSMEs significantly to reduce their electricity bills.
SEBI bans Orion Capital, Orion Broking from markets for 10 yrs
Markets regulator SEBI has barred Orion Capital as well as Orion Broking and their
partners from the securities markets for 10 years announced on 29th of Aug 2017.
i.They have been barred for failing to redress several investor grievances related to non-
settlement of funds due to the clients.
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ii.The claim amount is more than Rs 6 crore against Orion Capital and over Rs 4 crore
against Orion Broking.
Bank Of India slashes interest to 3.5% for deposits up to Rs 50 lakh

Public lender Bank of India has reduced interest rate on savings bank accounts by 50 basis points
to 3.5 per cent on deposits of up to Rs 50 lakh.
However, the bank will continue to pay 4 per cent interest on deposits of above Rs 50 lakh.
On July 31, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5 per
cent on balance of Rs 1 crore and below. Other lenders, including private ones such as HDFC Bank
and Axis bank, have followed suit.
Earlier this month, Axis Bank had reduced interest rate on savings bank accounts by 50 basis
points to 3.5 per cent for deposits up to Rs 50 lakh.
Another PSU lender, Bank of Baroda had slashed the rate to 3.5 per cent on deposits of up to Rs
50 lakh. Karnataka Bank too has tweaked the rate on savings bank accounts.
Central Bank of India, Dena Bank cut savings interest rates

Central Bank of India and Dena Bank on Monday reduced interest rates on savings accounts.
While both banks reduced the rate by 50 basis points (bps) to 3.5 per cent per annum, the cuts
apply to different buckets. At Central Bank, the cut will apply to savings accounts with balances of
up to Rs 50 lakh. Accounts with higher balances will continue to earn 4 per cent. Dena Bank has
reduced the rate on accounts with balances of up to Rs 25 lakh. For balances of above Rs 25 lakh,
the rate remains unchanged at 4 per cent.
ICICI Bank cut interest rate on savings account by 0.5%

Private sector lender ICICI Bank today announced to reduce interest rate on savings accounts by
50 basis points to 3.5 per cent on deposits below Rs 50 lakh.
The interest rate on savings bank accounts with deposits of Rs 50 lakh and above remains
unchanged at 4 per cent.
HDFC Bank cuts rates on certain savings accounts

HDFC Bank Ltd cut interest rates on most of its savings accounts to 3.5 per cent from 4 per cent.
Customers with savings bank account balance of 5 million rupees ($77,924.10) and above will
continue to earn interest at 4 percent per annum.
Yes Bank cuts savings account interest rate by up to 1%

Private sector lender Yes Bank reduced the interest rate on savings bank accounts by 1 per cent
to 5 per cent for deposits of less than Rs 1 lakh.
However, the bank will continue to pay 6 per cent interest on deposits of over Rs 1 lakh and less
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than Rs 1 crore.
The bank has also slashed interest rate on savings accounts to 6.25 per cent from existing 6.5 per
cent for deposits over Rs 1 crore.
Banking & Finance Awareness September 2017
99% of demonetized notes back in system: RBI report

As per the data released by the RBI, old notes worth Rs 15.44 lakh crore were there in the
market out of which 15.28 lakh crore have been received by the bank.
i.It means all but 1.4% of the old Rs 1,000 notes have come back into the banking system.
ii.As per the RBI report about 89 million units of the demonetised Rs 1,000 notes, worth Rs
8,900 crore, had not come back into the system.
iii.RBI said there were as many 588.2 crore of Rs 500 notes, both old and new in circulation as of
March 31, 2017.
Fincare Small Finance Bank starts banking operations with 25 branches

On September 1,2017,Fincare Small Finance Bank (previously known as Disha MicrofinLimited)
started its banking operations with about 25 operational branches across Gujarat, Tamil Nadu,
Karnataka and Andhra Pradesh.The bank was given final small finance bank (SFB) licence from
the Reserve Bank of India (RBI) in May this year.
i.Fincare CEO Rajeev Yadav informed that the bank started its operations with 25 branches, out
of which nearly 50 per cent are located in Gujarat. Currently, Fincare has Gross NPA of about 7-8
per cent, while the Net NPA is around 5-6 per cent.
ii.In order to get a small finance banklicense, Disha Microfin had acquired the business of Future
Financial Services in October 2016. Currently, as per the RBI norms, promoters and
management hold 20 per cent in Fincare, while the remaining 80 per cent is with.
First project of BRICS development bank starts operation

On September 2,2017, the first project funded by The New Development Bank, set up by
India and other members of the BRICS grouping of emerging economies, has started operation
in Shanghai. The $76 million loan with a maturity length of 17 years was granted to Shanghai
Lingang Distributed Solar Power Project, under an agreement signed in December 2016.
UBS lowers India growth forecast to 6.6% for Financial Year 2018
On September 3,2017, Global brokerage firm UBS has lowered Indias GDP growth forecast to 6.6
per cent from 7.2 per cent. The brokerage said that the growth is expected to rise in coming
quarters as the economy is getting normalised post implementation of the GST.
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i. According to official data, Indias economic growth slipped to a three-year low of 5.7 per cent in
April-June as disruptions caused by demonetisation spilled to the third straight quarter amid
slowdown in manufacturing activities
ii. Tanvee Gupta Jain, an economist with UBS, said that though the implementation of GST has
resulted in temporary disruption in economic growth, it is a significant structural reform that could
add 0.6-0.9 percentage point to Indias GDP growth in the medium term.
DBS becomes second bank to get in-principle nod to operate as wholly-owned unit
On September 4,2017, Singapore based bank DBS has got final approval to operate as a wholly-
owned subsidiary (WOS) in India.Diesel
DBS was the first foreign lender to apply for the new operating WOS model two years ago and
its approval was delayed due to lack of precedent. The application has been pending with the
finance ministry. Now as the problems got sorted out DBS is the second bank after State
Bank of Mauritius to receive the nod for its operation in India .
China bans raising funds through cyrptocurrencies

China has banned individuals and organisations from raising funds through initial coin
offerings (ICO), or launches of digital currencies announced on 4th of Sept 2017.
i.It allows raising large sums quickly by creating and selling digital tokens with little or no
regulatory oversight.
ii.As per the Peoples Bank of China Individuals and organisations that have completed ICO fund-
raisings should make arrangements to return funds.
RBI lists HDFC Bank as D-SIB or too big to fail

RBI has included HDFC Bank in the list of too big to fail lenders, referred to as D-SIB or
domestic systemically important bank announced on 4th of Sept. 2017.
i.Indias largest lender SBI and private sector major ICICI Bank was classified as D-SIBs in 2015.
ii.SIBs are subjected to higher levels of supervision so as to prevent disruption in financial
services in the event of any failure.
iii.There are two types of SIBs: Global SIBs, identified by BASEL committee on banking
supervision and Domestic SIBs; identified by RBI.
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SBI Launches SBI Intelligent Assistant (SIA) Chatbot For Customer Care
i.State Bank of India (SBI) is the latest to get smitten by the Artificial Intelligence and
Automation. They have launched their first ever chatbot called SBI Intelligent Assistant or
SIA, which would be powered by AI, and designed to assist customers.
ii.After ICICI Bank and HDFC Bank adopted automation in banking, SBIs move towards AI is seen
as a major leap for Indian banking.
Banks without Aadhaar enrolment centres face Rs.20,000 fine from October
On 5th September 2017, Unique Identification Authority of India (UIDAI) CEO Mr.Ajay
Bhushan Pandey said that the UIDAI has given banks one more month to open Aadhaar
enrolment centres in a stipulated 10 per cent of branches and will impose Rs.20,000 as fine per
uncovered branch after 30th September 2017.
International Finance Corporation invests $10 mn in Power2SME

A member of the World Bank Group, International Finance Corporation (IFC) has invested
$10 million as equity in e-commerce firm Power2SME announced on 5th sept 2017.
i.It will helps small and medium companies to buy raw materials at bulk prices and get
working capital without collateral.
ii.The main aim is to improve access to finance for over one million SMEs in the next five years.
IIM-Lucknow, Yes Bank tie up for climate Awareness

Indian Institute of Management Lucknow (IIM-L) and Yes Bank has tied up with the purpose
of spreading climatic awareness announced on 5th of Sept. 2017.
i.The main aim of the collaboration will be to enhance the Climate Literacy amongst
people.
ii.IIM Lucknow also aims to achieve sustainable development with the cooperation of Yes Bank.
Ujjivan Bank to replace loans with certificate deposits

According to the Ujjivan Small Finance Bank it will bring down its cost of funds by up to
150 basis points during the current financial year.
i.It has replaced 75% of its bank loans with borrowings using money market
instruments including certificate of deposits.
ii.The bank will be issuing 90-day CDs to mutual funds and insurance companies and FDs
to corporates, trusts and cooperative banks.
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PNB, BSNL join hands for mobile wallet Speedpay rollout

Punjab National Bank and BSNL has joined hands to roll out open mobile wallet Speedpay
across 10 states in the country announced on 8th Sept. 2017.
i.PNBs Speedway wallet will operate like any other mobile wallet for paying bills,
recharging phone. Its users will be able to deposit and withdraw money from authorized
retail outlets.
ii.Under the agreement, BSNL will expand Speedpay services in Punjab, Chandigarh (UT),
Haryana, Jammu and Kashmir, Himachal Pradesh, Uttar Pradesh, Bihar, West Bengal, Jharkhand
and Uttarakhand.
United Bank of India waives retail loan processing fees up to 100 per cent
On 8th September 2017, United Bank of India announced that is has removed processing fee for
retail home loans, car loans and two-wheeler loans, in Kolkata
About the processing fee waiver:
The processing fee waiver will be available till December, 2017.
100% processing fee waiver for:Home loans, Car loans and Two-wheeler loans
50% processing fee waiver for:Mortgage loans, Personal loans and Gold loans
PACL, 4 directors fined Rs 2423 crore, highest ever Sebi penalty on a defaulter
Securities and Exchange Board of India (SEBI) had imposed Rs 2,423 crore fine on PACL
Ltd and its four directors for illegal fund mobilisation through various schemes.
i.PACL group, which had collected money in the name of real estate projects among other
schemes, was asked by SEBI nearly three years ago to refund Rs. 49,100 crore to the investors.
ii.According to the SEBI Rs 49,100 crore was mobilised by PACL over 15 years through
unregistered collective investment schemes in violation of the Securities and Exchange
Board of India Act, 1992, and SEBI (Collective Investment Schemes) Regulations, 1992.
Exide Life Insurance partners with PMC Bank to offer protection, savings products
Exide Life Insurance has announced a partnership with Punjab & Maharashtra Co-
operative Bank (PMC Bank) to offer its protection and savings products to the existing
customers.
i.Exide Life Insurance works with around 50 banks.
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ii.PMC Bank is a multi-State scheduled urban co-operative bank with 127 branches spread across
Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh.
ICICI Lombard, SBI life Insurance gets SEBI approval for IPO
ICICI Lombard General Insurance Company and SBI Life Insurance gets SEBI approval for Initial
Public Offering.
i.SBI Life Insurance has received approval from the Securities and Exchange Board of India
for an IPO of up to Rs 8,400 crore ($1.3 billion), with launch targeted for the September 20-22
period.
ii.The IPO will involve 120 million secondary shares, or 12% of the insurers equity capital.
IRDAI allows one-time password for opening online insurance account

On 10th September 2017, Insurance Regulatory and Development Authority (IRDAI) announced
usage of OTP (One Time Password) for opening e-Insurance Account (eIA) as an
alternative to electronic signature, in New Delhi.
About the one-time password facility:
i.IRDAI said that in order to facilitate the opening of e-Insurance Account (eIA) through online or
electronic means, the authority has permitted validation by One Time Password (OTP).
ii. Now, e-signature of the e- insurance account (eIA) holder on the application form for opening
the account is considered as a valid authentication.
Bharat Financial Inclusion signs pact with IndusInd Bank to explore merger
On 11th September 2017, the board of directors of IndusInd Bank signed an agreement with
Bharat Financial Inclusion to analyse a potential merger between the two companies.
About the agreement:
1. IndusInd Bank and Bharat Financial Inclusion have signed an exclusive agreement.
2. The agreement is about discussion of merger between both the companies.
3. The agreement states that the information of the discussion would be confidential and
terms conditions would be finalized for the proposed merger.
Banks need $65 billion additional capital to meet Basel III norms: Fitch
On 12th September 2017, Fitch Ratings declared that Indian banks will need an additional capital
of $65 billion in order to satisfy all the banking rules of global Basel III norms, by March 2019.
About the requirement of additional capital:
1. Indian banks will need an additional capital of $65 billion by March 2019.
2. State-run banks account for 95% of the capital.
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3. Fitch warns that Indian lenders have limited options to raise the capital.
RBI to introduce Rs 100 Coin to mark MG Ramachandran birth centenary

RBI will introduce Rs 100 coins to mark the birth centenary of MG Ramachandran. He was
the AIADMK founder and former chief minister of Tamil Nadu.
i.The Rs 100 coin will be 44 millimeter in diameter, with a metal composition of silver (50%),
copper (40%), nickel (5%) and zinc (5%).
ii.The standard weight of Rs 100 coin will be 35 grams while that of Rs 5 coin will be 6
grams.
iii.The obverse of the Rs 100 coin will bear Lion Capitol of Ashoka Pillar in the centre,
with the legend Satyamev Jayate inscribed below in Devnagari.
Paytm Payments Bank partners with NPCI for RuPay digital card
Paytm Payments Bank (PPB) has partnered with the National Payments Corporation of
India (NPCI) tolaunch a RuPay-powered digital debit card announced on 12th of Sept. 2017.
i.Through the PPB Digital debit card customers will now be able to transact at all merchants
who accept credit and debit cards.
ii.The debit card will have the facility to come with a free insurance cover of up to Rs. 2 lakh
in the case of death or permanent total disability.
World Bank allocates $8 billion for Chinas Silk Road project

On 12th September 2017, World Bank President Mr.Jim Yong Kim announced that World
Bank has allocated $8 billion for infrastructure projects under Chinas Silk Roadinitiative,
Beijing.
The purpose of Silk Road initiative is to create an economic corridor connecting China with Asia,
Europe and the rest of the world.
Indias GDP growth for Fiscal Year 2018 is likely at 7.1%: Nomura
On 13th September 2017, a report by Japanese financial services company Nomurasaid that
Indias GDP growth is expected to be around 7.1 % this fiscal year (2017 2018).
Details of the report:
i. India is predicted to have a 7.1 % GDP growth this fiscal year (2017 2018) and that would be
followed by a pickup in industrial production.
ii. This has been predicted since firms would start restocking after GST (Goods & Services Tax)
and festive season is also ahead.
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Indias GDP growth likely to slip below 7 % this fiscal year: DBS
On 15th September 2017, a report by DBS, a multinational banking and financial services
corporation, said that Indias GDP growth is likely to reduce below 7 % this financial year.
Predicted fall in Indias GDP:
i. According to DBS, two main reasons for the downfall are demonetisation in November 2016 and
GST implementation in July 2017. These added to the already slow growth in manufacturing and
investment sectors.
ii. Also note ban reduced cash availability, affecting heavily the cash sensitive businesses like
construction, logistics, and small and medium size enterprises.
HSBC in tie-up with Sa-Dhan to develop digital ecosystem for Indias unbanked segment
HSBC Bank has entered into an agreement with Sa-Dhan to develop ecosystem for the unbanked
segment in the country.
i.HSBC Bank is providing technology expertise to train and educate micro-finance consumers
at grass-root level and introduce digital banking.
ii.It has to be undertaken in West Bengal, Punjab, Karnataka and Maharashtra and it is expected
to benefit 1,200 consumers.
iii.The pilot will be creating digital hubs with POS machines and internet connectivity.
IndusInd Bank partners with ADB to provide loans to rural women

On 15th September 2017, ADB (Asian Development Bank) announced that it signed a deal with
IndusInd Bank to provide loans for low income women in rural areas, in India.
i. Total amount of loan allotted is $200 million.
ii. Atleast 95 % of the loan would be allotted to women borrowers.
iii. Atleast 70 % of the loans will be issued in less developed states of India.
Indias Forex Reserve crosses $400 billion for the first time
Indias foreign exchange reserve has crossed the $400 billion mark for the first time to hit an
all-time high of $400.726 billion on 8th September.
i. There is a sharp rise in foreign currency assets, mainly huge inflows through foreign direct
investments in projects and portfolio investment.
ii. It took the country over nine years to cross the $400 billion level after hitting the $300
billion mark in 2008.
SEBI allows REITs, InvITs to issue bonds

On 18th September 2017, Securities and Exchange Board of India (SEBI) allowed Infrastructure
Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) to raise funds by issuing
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debt securities, in Mumbai.

i. InvITs and REITs enable investors to invest on infrastructure projects and real estate properties
respectively.
ii. Earlier, these trusts were allowed to raise funds only through equity.
iii. Now they are allowed to raise funds by issuing debt securities.
RBI classifies P2P platform as NBFC business

On 20th September 2017, Reserve Bank of India (RBI) announced that peer-to-peer (P2P) lending
platforms would be treated as Non-Banking Financial Companies (NBFC).
i. Peer-to-peer lending (P2P) platforms have been regulated by RBI by treating them as Non-
Banking Financial Companies (NBFCs).
ii. P2P lending is a form of crowd-funding. It uses online platform to connect lenders and
borrowers. It provides unsecured loans. Loans are paid back with interest.
MSE launches Member Activation Drive, provides infrastructural support, incentives to

members
On 20th September 2017, Metropolitan Stock Exchange of India (MSE) launched a Member
Activation Drive for its members.
i. MSE introduced a Business Loyalty Program called MY MSE.
ii. This scheme will provide infrastructural support, incentive schemes and lowest transaction
charges on all product contracts to its members.
SBI Card to offer pre-approved cards to SBI customers

SBI card is all set to offer pre-approved cards to customers of its parent State Bank of
India announced on 21st Sept. 2017.
i.It has entered into a tripartite agreement with SBI and Indias first credit bureau TransUnion
CIBIL to offer pre-approved cards to eligible customers.
ii.The agreement will allow the credit bureau to check the credentials of SBI customers
and SBI Card to leverage the data.
Indian economy to grow 6.7% in 2017-18 OECD

On 21st September 2017, OECD, a Paris based think tank, announced that Indian economy is
expected to grow at a lower than expected rate of 6.7 % in 2017-2018.
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Lower growth rate in 2017-2018:

i. OECD has said that Indian economy is expected to grow at a lower than expected rate of 6.7%
in this fiscal year 2017-2018.
ii. The reasons are mapped to demonetisation and the goods and services tax (GST)
implementation.
SEBI allows unified license for stock and commodity broking

On 21st September 2017, SEBI announced the grant of a unified license for brokers and clearing
members to operate in both commodity derivative and equity markets.
i. Now, SEBI allows brokers of stock and commodity exchanges to do both the businesses under a
single entity.
ii. A one-time certificate of registration as stock broker/clearing member would be
provided by SEBI.
NABARD sanctions Rs.119 crore loan for Haryana

On 22nd September 2017, National Bank for Agriculture and Rural Development (NABARD)
sanctioned a loan of Rs.119 crore for Haryana.
i. NABARD has sanctioned a loan of Rs.119 crore to construct seven bridges and
improvement of one rural road project in five districts of Haryana.
ii. Construction of seven bridges and one road would be done in Ambala, Panchkula, Sonepat,
Yamunanagar and Panipat districts of Haryana.
iii. This has been allocated a RIDF (Rural Infrastructure Development Fund) loan of Rs.28.25
crore.
SBI launches Indias first bond index series in UK

On 22nd September 2017, State Bank of India (SBI) launched Indias first bond index series for
overseas investors at the London Stock Exchange (LSE), in United Kingdom.
Indias first bond index series in UK:
i. SBI launched the FTSE (Financial Times Stock Exchange) SBI Bond Index Series in
alliance with FTSE Russell at the London Stock Exchange (LSE).
ii. Russell, is one of the top three fixed income index providers in the world.
iii. This is the first transparent benchmark for investors in international markets to analyse Indias
government bond market.
Online general insurer Acko General Insurance gets IRDAI nod

On 22nd September 2017, Insurance Regulatory and Development Authority of India (IRDAI)
gave the final approval to online non-life insurance company Acko General Insurance Ltd.
i. Acko General Insurance Ltd. would start operating in December 2017.
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ii. The Insurance Company would sell multiple insurance products through online channel.
iii. The operations of the company would be completely digital.
Infosys Finacle Partners with ToneTag to Offer Sound-Based Contactless Payments

Solution
IT major Infosys has announced partnership with software services provider
ToneTag announced on 22 Sept. 2017.
i.The partnership has been signed to offer sound-based payment solution to bank
customers using its financial product Finacle.
ii.The banks will be able to allow their customers to authenticate transactions at their
branches, ATMs and retail outlets.
SEBI imposes 9 lakh fine on former ING Vysya Bank official

Market regulator SEBI has imposed a penalty of Rs 9 lakh on ING Vysya Banks former
official for violating insider trading regulations announced on 22nd Sept. 2017.
i.The fine was imposed on Vinay Agrawal, who was regional head of business banking in
ING from August 2011 till June 20, 2012.
ii.Later, he held the position of zonal head of cluster business banking till October 10, 2013.
Masala bonds to be treated as ECB: RBI

On 22nd September 2017, The Reserve Bank of India (RBI) announced that Masala bonds will be
treated as External Commercial Borrowings (ECB) from 3rd October 2017.
i. Masala bonds are rupee-denominated overseas bonds.
ii. Considering Masala bonds as ECBs will free up more investments by FPIs (Foreign
Portfolio Investors).
iii. Currently, the limit for investment by FPIs in corporate bonds is Rs.2,44,323 crore.
Interest Subsidy Scheme on home loans for MIG extended to March 2019
Under the Centres affordable housing scheme, the interest subsidy of up to Rs 2.60 lakh on
home loans will now be available to middle income group (MIG) beneficiaries for 15 more
months till March 2019.
i.By this decision MIG beneficiaries will get more time to avail interest subsidy under the Pradhan
Mantri Awas Yojana (Urban).
ii.Under CLSS, MIG beneficiaries with annual income of above Rs 6 lakh and up to Rs 12
lakh would get an interest subsidy of 4% on a 20-year loan component of Rs 9 lakh.
iii.Those with annual income exceeding Rs 12 lakh and up to Rs 18 lakh would get
interest subsidy of 3%.
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SBI revises Service Charges on maintaining Monthly Average Balance

On 25th September 2017, SBI (State Bank of India) reduced service charges for not maintaining
monthly average (MAB) balance by 20-50%.
i. The minimum balance requirement in metro centres are reduced to Rs.3,000.
ii. The charges for not maintaining MAB at semi-urban and rural centres vary from Rs.20 to
Rs.40.
iii. The charges at urban and metro centres vary from Rs.30 to Rs.50.
iv. The revisions will come to act from October 2017.
ADB lowers Indias growth outlook to 7% for 2017-18

On 26th September 2017, ADB (Asian Development Bank) lowered Indias growth projection to
7% for the current financial year and 7.4 % for the next financial year.
i. ADB has stated in its Asian Development Outlook 2017 update that Indias GDP growth is
lowered to 7% for the financial year 2017-18.
ii. This is a 0.4 % drop from the April 2017 forecast.
iii. In 2018-19, the GDP is predicted as 7.4%.
RBI caps bank investments in private equity funds at 10%

Reserve Bank of India (RBI) has barred banks from investing in category III alternative
investment funds (AIFs), specified norms for their participation in commodity derivatives
clearing on investing in financial services firms announced on 25th of Sept. 2017.
i.Banks may invest as much as 10% in the paid-up capital/unit capital in category I and II funds,
but cannot invest in category III funds.
ii.As per RBI, so far there was no specific rule on investing in AIFs.
iii.No bank make investment of more than 10% of the paid-up capital/unit capital in a
category I/ category II alternative investment fund.
ICICI plans payday-type loans in pact with e-tailers

ICICI Bank will partner with e-commerce firms to provide automated payday loan-type
credit to customers at the bottom of the digital pyramid.
i.The digital credit planned by the bank will be available to non-customers and new-to-credit
borrowers.
ii.The bank will announce partnerships with e-commerce firms, following which buyers on the site
will get a pay later option.
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iii.The pay later facility will be available to even those who have not availed of any loan
in the past and for small amounts of up to Rs 20,000.
SEBI imposes Rs 4 lakh penalty on Swagruha Infrastructure

Markets regulator SEBI has imposed a penalty of Rs 4 lakh on Swagruha Infrastructure Ltd
(SIL) for failing tomake necessary disclosures for 11 continuous years announced on
25th of Sept. 2017.
i.As per SEBI SIL violated the provisions of SAST (Substantial Acquisition of Shares and
Takeovers) Regulations.
ii.The main objectives of the SAST Regulations is to achieve fair treatment and
mandating timely disclosures by entities.
IDBI Bank launches Project Nishchay to improve financial performance

On 26th September 2017, IDBI Bank launched Project Nishchay in partnership with Boston
Consulting Group (BCG) to improve its turnaround programme and financial performance.
i. This project will be led by senior management of IDBI Bank and BCG.
ii. IDBI Bank has the highest ratio of bad loans among listed banks with a gross NPA ratio of over
24 %.
iii. The bank had made a net loss of Rs.853 crore at the end of the first quarter in 2017.
iv. Also, the bank is under the Reserve Bank of Indias (RBI) prompt corrective action framework.
v. BCG will help IDBI to identify areas for cost containment and revenue maximisation
leading to profitability.
Standard Chartered, Citibank become shareholders in Swift India

SWIFT India has announced that Citibank and Standard Chartered Bank have joined the
Indian services as shareholders on 26th of Sept. 2017.
i.Standard Chartered and Citibank become the first foreign lenders to invest in the
platform.
ii.Both Standard Chartered Bank as well as Citi linked the investment to their respective efforts to
promote digitization. This is its second round of capital raising.
IDBI Bank sells 9 % stake in SIDBI

On 27th September 2017, IDBI Bank said that it has sold 9 % stake in Small Industries
Development Bank of India (SIDBI).
i. The amount for which the 9 % stake was sold is undisclosed.
ii. Name of the buyer has also not been disclosed.
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Indias GDP growth to fall to 6.7 % in the financial year 2017-18: India Ratings
On 27th September 2017, India Ratings lowered the growth forecast for the current financial year
to 6.7 % from 7.4 % estimated earlier.
i. India Ratings has pointed out the reasons for this downfall as demonetisation and GST (Goods &
Services Tax) implementation.
ii. It said that, reaching the earlier predicted GDP of 7.4 % will not be possible for India in this
financial year 2017-2018.
SEBI bans Jeevan Suraksha Energy and Industries from markets

SEBI has barred Jeevan Suraksha Energy and Industries Ltd (JSEIL) from the capital
markets for not complying with public issue norms on 27th of Sept. 2017.
i.The step has been taken after SEBI received a complaint against the company about
alleged fund mobilisation by way of issuance of Redeemable Preference Shares (RPS) and
inability to recover investments and promised returns.
ii.It has been found that the company allotted redeemable preference shares worth about Rs
25.82 lakh to 125 persons during 2012-13.
Karnataka Bank opened its first Aadhaar centre at Sanjaynagar branch in Bengaluru
Karnataka Bank has opened its first Aadhar Enrollment and Updation Centre at
Sanjaynagar Branch Bengaluru announced on 26th Sept. 2017.The Bank will be coming out
with eighty such Aadhar Enrollment cum modification centres across India in a phased manner.
ICICI Bank launches cashback home loans

On 28th September 2017, ICICI Bank launched a new home loan product that offers 1 % cash-
back for every EMI (Equated Monthly Instalment) during the entire loan period.
i. The EMI cash-back is available for fresh home loans with minimum period of 15 years.
ii. This loan allows borrowers to select their preferred mode of cash-back.
Small savings interest rate unchanged for October-December quarter

On 29th September 2017, the Government has kept unchanged the interest rates on small
savings schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi for October-December
quarter.
Interest rates unchanged for small savings schemes:
i. The Reserve Bank of India would undertake monetary policy review on 4th October 2017.
ii. The interest rates have been kept unchanged for the following schemes:
Public Provident Fund (PPF) 7.8 % annually
Kisan Vikas Patra (KVP) 7.5 % matures in 115 months
Sukanya Samriddhi Account 8.3 % annually
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SEBI allows FPIs to buy corporate debt up to Rs.9,500 crore in infrastructure sector
On 29th September 2017, The Securities and Exchange Board of India (SEBI) allowed Sovereign
Wealth Funds and other long term Foreign Portfolio Investors (FPIs) to buy up to Rs.9,500 crore
worth corporate debt in infrastructure sector.
FPIs allowed to buy corporate debt up to Rs.9500 crore in infrastructure:
i. This has been done, following the Reserve Bank of Indias (RBIs) decision to exclude masala
bonds (foreign investment in rupee denominated bonds) from the Combined Corporate Debt Limit
(CCDL).
ii. Sub-limit for long term FPIs would be Rs.9,500 crore from 3rd October, 2017.
iii. This would be increased to Rs.19,000 crore from 1st January, 2018.
Ireda becomes first Indian financial agency to raise funds overseas

The state-owned Indian Renewable Energy Development Agency (Ireda)
became the first Indian financial institution to raise funds overseas announced on
30th Sept. 2017. These funds are termed as green masala bonds.
i.The five-year dated bond raised approximately $300 million (Rs19.5 billion), with a coupon
of 7.125%.
ii.It became the first Green Masala Bond to be listed on the International Securities Market
(ISM).
iii.Indian Renewable Energy Development Agency (IREDA) will help in achieving Indian
Governments vision of 175 GW renewable energy capacity by 2022.
SBI to raise Rs 99 crore from share buyback by dealership arm

State Bank of India (SBI) has raised shares worth over Rs 99 crore as part of a share
buyback programme by its subsidiary SBI DFHI on 29th Sept. 2017.
i.As per SBI it is tendering 19,11,974 shares held by it under the buyback of shares
being done by SBI DFHI.
ii.As per the buyabck offer, SBI will get Rs 99.42 crore from SBI DFHI. The shares will be
tendered at a price of Rs 520.
iii.Currently, SBI holds the largest shareholding of 72.17% in the subsidiary. Rest of 22.32% is
owned by banks and 5.51% by financial institutions.
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Banking & Financial

General Awareness section is very important in banking, insurance

In 2017, we have observed that the exams are asking current

The future belongs to those who believe in the beauty of

Banking & Finance Awareness January 2017 ................................................................................................... 2

Banking & Finance Awareness January 2017

Govt permits 12 PSU banks to raise Rs 3,000 cr from market

26 crore accounts open under Jan Dhan Yojana across country

Bank of Baroda ties up with CNX Corporation

Banks cuts lending rates, home, corporate loans to be cheaper

Munich Re to open reinsurance branch office in Mumbai

Rs 5 discount on online payment of LPG cylinder

SIDBI ties up with LIC for capital support to enterprises

Droom Partners with Axis Bank for quick sanction of loans

RBI to provide rupees 1 billion in Rs 100 notes to Nepal Rashtra Bank

Forex reserves up by $625.5 mn to $360.296 bn : RBI

UCO Bank launches Suvidha prepaid card

HDFC Bank Launches Humanoid Robot IRA

Axis Bank Becomes Third Lender to Use Block Chain Solution

Indian Standards on Gold Hallmark Revised by Bureau of Indian Standards

HDFC ERGO Launches Credit Insurance Policy to Safeguard Business

Citibank Launches Voice Biometrics Authentication for Phone Banking

NITI Aayog Estimates the GDP Growth of 8 Percent for 2016-17

appraisal document for the Twelfth Five-Year Plan.

SBI Signs $ 50 mn Pact with Omans SGRF

Tax department, Japanese company sign advance pricing pact

SEBI Lowers Broker Fees by 25 Percent to Rs 15 Per Transaction

BSNL Launches Aadhar Based e-KYC Project

Central & SBI Card launch premium co-branded card

IRDAI forms panel to review life insurance product norms

Study by Oxfam Shows Richest 1% in India Holds 58% of Total Wealth

to own more wealth than the rest of the countries.

Premji (USD 15 billion).

Ortega (USD 67 billion) and Warren Buffett (USD 60.8 billion).

demonetization on consumption and expenditure.

2017-18 and 6 percent for 2018-19.

3.6 percent for developing economies.

Yes Bank Launches Business Accelerator Program Yes Fintech

banking solutions to the customers.

destination program to be held in Mumbai and Hyderabad.

Yes Bank Launches Indias First Customisable Savings Account

customers to design an account as per their convenience.

Karang Island in Manipur Becomes Indias First Cashless Island

30 More Countries to Join Asia Infrastructure Investment Bank

UN Report Estimates Indias GDP to grow by 7.7% in 2017

PNB and IPPB team up for technology support

World Bank Sanctions Rs 1,376 Cr For Tripura Power Upgradation

IT Department Expands Deposits & Transactions List under Scrutiny

RBI imposes Rs 75 lakh penalty on Bombay Mercantile Co-operative Bank

Union Cabinet approves Excluding States /Union Terrotries from Investments of

Kerala Gramin Bank to propagate financial literacy among school children

GST Decides Tax Evasion Upto rs. 2 Cr Bailable Offence

Cooperative Banks Barred From Accepting Deposits under PMGKDS

Punjab National Bank Launches Contactless Credit Card

Utkarsh Micro Finance Launches its Small Finance Bank

Rescheduled Education Loan will not be Considered for Computing NPAs:RBI

IRDAI okays Swiss Re move to open Mumbai branch

BCSBI Launches Know Your Rights Programme

RBI Prohibits FDI in Non-Cooperative Countries

SBI Launches Wealth Management Product SBI Exclusif in Kochi

Karnataka Bank Signs MoU with Tirth Agro Technology

finance through its branches across India.

Government to Launch Aadhar Pay for Cashless Transactions through Biometrics