BANKING - 2019 JANUARY

January 1

SBI Life Insurance signs 'bancassurance' pact with Allahabad Bank
State-owned Allahabad Bank has tied up with SBI Life Insurance to sell the policies of the insurer from over 3,200 branches.
Allahabad Bank and SBI Life Insurance came together and signed a bancassurance pact, to offer a holistic financial planning solution to consumers.
This will empower the consumer to address their complete financial needs under one roof.
Allahabad Bank:
Headquarters: Kolkata

Government infused nearly Rs 11,000 crore capital in public sector banks
The government has infused 10,882 crore rupees in four public sector banks, including UCO Bank and Syndicate Bank.
It is a part of 28,615 crore rupees capital infusion to be done in about half a dozen public sector lenders.
UCO Bank has received 3,074 crore rupees in the equity by way of preferential allotment.
Syndicate Bank:
Headquarters: Manipal

RBI Lifts Six Month Ban, Permits Paytm Payments Bank To Onboard New Customers
Paytm Payments Bank has received the green light from the Reserve Bank of India to restart opening accounts for its customers.
Paytm Payments Bank was banned from adding new accounts on June 20, 2018.
The bank had violated KYC norms, failed to maintain the prescribed net worth of Rs. 100 crore and also violated the end-of-the-day Rs. 1 lakh limit per account.
Reserve Bank of India:
Founded: 1 April 1935, Kolkata

January 2

RBI gives relief to MSME sector, provides for one-time restructuring of loans
Reserve Bank allowed a one-time restructuring of existing debt up to Rs. 25 crore for the companies which have defaulted on payment but the loans given to them have continued to be classified as standard assets.
The decision will help the micro, small and medium enterprises (MSMEs) which are facing a cash crunch in the wake of demonetization and GST implementation.
Restructuring without an asset classification downgrade will save the lenders from higher provisioning burden.
This will encourage banks and non-banking finance companies (NBFCs) to take up restructuring in the case of MSMEs.
Reserve Bank of India:
Founded: 1 April 1935, Kolkata.

RBI released The Financial Stability Report
The Reserve Bank of India released the eighteenth issue of the Financial Stability Report (FSR). The FSR reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability, as also the resilience of the financial system.
The Report also discusses issues relating to development and regulation of the financial sector.
India’s financial system remains stable, and the banking sector shows signs of improvement, even though the global economic environment and the emerging trends in financial sector pose challenges.
The asset quality of banks showed an improvement with the gross non-performing assets (GNPA) ratio of SCBs declining from 11.5% in March 2018 to 10.8% in September 2018.
Reserve Bank of India:
Governor‎: ‎Shaktikanta Das

January 3

Complaints with bank ombudsman surge 25% in FY18
The number of complaints registered at banking ombudsman offices have seen a 25% increase in the fiscal year 2018, with the majority of these complaints coming from urban centres owing to increased awareness and poor internal redressal mechanisms of banks.
According to the RBI Report on Trend and Progress of Banking in India, The banking ombudsman offices in tier-1 cities like New Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad accounted for more than 57% of the total complaints received by all BO offices.
Of all the complaints received at the ombudsman's offices, 97% of them were resolved in 2017-18, up from 92% a year earlier.
About Reserve Bank of India:
Founded: 1 April 1935, Kolkata

Merger of Vijaya Bank & Dena Bank With Bank of Baroda approved by the cabinet.
The cabinet has approved the merger of Vijaya Bank & Dena Bank with Bank of Baroda. After this merger, Bank of Baroda will become the third biggest public sector bank.
The merger will be effective from April 1.
This is also the first ever three-way merger in Indian banking.
Bank of Baroda (BoB) finalised the share swap ratio for the merger of Vijaya Bank and Dena Bank with itself.
As per the Scheme of Amalgamation, shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held. In case of Dena Bank, its shareholders will get 110 shares for every 1,000 shares of BoB.

January 4

PSU Syndicate Bank And SBI Life Insurance Signed Bancassurance Pact
Syndicate Bank and SBI Life Insurance signed a bancassurance pact aiming to offer a comprehensive financial planning solution to its customers.
The pact was signed between Syndicate Bank MD & CEO, Mrutyunjay Mahapatra and MD and CEO of SBI Life, Sanjeev Nautiyal.
Through the pact, Syndicate Bank will provide penetration in the market with its 3,000 branches and SBI Life’s diverse range of protection, wealth creation and savings insurance products will be brought to the table to the customers.
Syndicate Bank:
Headquarters: Manipal

Cyber frauds in Indian banking sector hiked 50% in FY18: RBI
According to the annual report by the Reserve Bank of India, Banks collectively lost nearly Rs. 110 crore to cyber frauds, which amounted to less than 0.5% of the total money lost to frauds in 2017-18.
Cyber frauds constituted almost one-third of all banking frauds.
In 2017-18, however, frauds related to off-balance sheet operations, foreign exchange transactions, deposit accounts and cyber-activity took centrestage.
Reserve Bank of India:
Founded: 1 April 1935, Kolkata

January 5

ICICI Bank, Small Business FinCredit join hands to provide loans to MSMEs
ICICI Bank, in a first-of-its-kind programme, signed a Memorandum of Understanding (MoU) with Small Business FinCredit India Pvt. Ltd. (SBFC), a systemically important Non-Banking Finance Company for entrepreneurs, to jointly provide credit worth up to Rs 1 crore to MSMEs for a tenure of 15 years.
This MOU was signed under RBI’s circular dated September 21, 2018, that permits banks to engage with a non-banking financial company (NBFC) to co-originate loans for the creation of priority sector assets.
Under this arrangement, ICICI Bank will co-originate loan against property with SBFC at a mutually agreed ratio.
ICICI Bank:
MD & CEO: Mr. Sandeep Bakshi.

January 6

Government amalgamated three Regional Rural Banks - Punjab Gramin Bank, Malwa Gramin Bank and Sutlej Gramin Bank into a single Bank
The Centre has amalgamated threeRegional Rural Banks (RRB) - Punjab Gramin Bank, Malwa Gramin Bank and Sutlej Gramin Bank - into a single RRB with effect from January 1, 2019.
After consulting the sponsor banks of the three RRBs, the central government felt that in the interest of the banks and the areas served by them, they should be amalgamated into a single RRB.
The sponsor banks of the RRBs are National Bank for Agriculture and Rural Development (NABARD), the Government of Punjab and Punjab National Bank, State Bank of India and Punjab and Sind Bank.
Punjab National Bank:
Headquarters: New Delhi



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