Current Affairs Economy & Banking

 The Reserve Bank of India has clarified rules on ‘free ATM transactions’ provided by banks to its customers. Banks provide certain number of free transactions at ATMs to their customers and beyond that impose charges.
According to the Reserve Bank of India, the following transactions should not be counted as valid ATM transactions for the customer as the ‘free ATM transactions’:
  • Transactions failed at ATMs due to technical reasons like hardware and software issues.
  • Transactions failed due to non-availability of currency in ATMs.
  • Use of ATMs for non-cash withdrawal transactions such as balance enquiry, cheque book request, payment of taxes, funds transfer.
Source: The Hindu

 The Central government has rolled out scheme for liquidity support to NBFCs. The partial guarantee scheme will allow state-run banks (PSBs) to purchase assets of non-banking and housing finance companies (NBFCs and HFCs). The partial guarantee scheme aims at providing liquidity support to avoid distress sale of assets in a sector facing a shortage of cash due to asset-liability mismatch. NBFCs will be able to sell 20% of standard assets, worth up to Rs 5,000 crore, as on March 31.
The Department of Economic Affairs will provide government guarantee of up to 10%of the fair value of assets purchased by a bank from a stressed NBFC or HFC. The scheme is capped at Rs 1,00,000 crore and will be open for up to 6 months. The government will settle claims by banks within 5 working days. The one-time guarantee on the pooled assets will be valid for 24 months from the date of purchase and can invoked in specified circumstances.
Source: The Economic Times

  National Payments Corporation of India has announced that Aadhaar enabled Payment System has crossed the milestone of over 200 million transactions during July 2019. The transaction count of AePS stood at 220 million in july 2019. AePS is a bank led model which allows basic banking transactions at point of sale. AePS empowers a bank customer to use Aadhaar as identity to access respective Aadhaar enabled bank account and perform basic banking transactions like cash withdrawal, intrabank or interbank fund transfer and balance enquiry.
Source: The DD News

  Business-to-business payments startup EnKash has launched the country’s first corporate credit card called ‘Freedom Card’ for small and medium enterprises (SMEs). The Freedom Card would give SMEs and startups the freedom to avail credit facility for immediate needs and to manage their liquidity.
Source: The Business Standard

 Private sector bank, RBL Bank and digital healthcare platform Practo have partnered to launch an industry-first co-branded health credit card. This credit card is powered by Mastercard. RBL Bank’s new credit card offers benefits like online consultations with doctors and a free health check-up.
Source: The Livemint

 Mastercard announced the launch of Identity Check Express, a next-generation, mobile-first authentication solution that aims to redefine the e-commerce journey for Indian consumers. Mastercard Identity Check Express combines the latest technology, including device intelligence and behavioural biometrics, with the latest EMV 3-D Secure and FIDO authentication standards to deliver an uninterrupted mobile payment experience.
Source: The Livemint

  The Reserve Bank of India will make available the National Electronic Funds Transfer system on a 24×7 basis from December 2019 as per the Payment System Vision 2021 document. Presently, the transfer of funds via NEFT can only be done during banks’ working hours. The facility of electronic transfer of funds is available from 8 am to 7 pm on all working days, except the second and the fourth Saturday of the month. The move will revolutionize the retail payments system of the country. It will also reduce the number of cheques while making payments and will also increase efficiency in businesses.
Source: The Live Mint

  The Reserve Bank of India has decided to set up a “Central Payment Fraud Registry”. The registry will track frauds in the payment systems. Under this registry, payment system participants will be provided access to it for near-real time fraud monitoring. The aggregated fraud data will be published to educate customers on emerging risks. Currently, banks report all banking frauds to the Central Fraud Monitoring Cell of the Reserve Bank of India.
Source: The Live Mint

 The Reserve Bank of India has imposed a collective penalty of Rs 11 crore on 7 public sector banks. The penalty has been imposed for non-compliance with certain provisions of directions issued by RBI on ‘Code of Conduct for Opening and Operating Current Accounts.
The penalties on 7 banks are as follows:
  • Allahabad Bank and Bank of Maharashtra have been imposed with a penalty of Rs 2 crore each.
  • Bank of Baroda, Bank of India, Indian Overseas Bank and United Bank of Indiahave been imposed with a penalty of Rs 1.5 crore each.
  • Oriental Bank of Commerce has been imposed with a penalty of Rs 1 crore.
RBI has also imposed a fine of Rs 1 crore on Corporation Bank for non-compliance of norms related to cyber security framework for banks, frauds classification and reporting.
Source: The Live Mint

  RBI has imposed a penalty of Rs 50 lakh on Punjab National Bank (PNB) for the delay in reporting of fraud observed from the fraud monitoring report-1 submitted by Punjab National Bank on July 10, 2018, in the account of Kingfisher Airlines Limited.
Source: The Business Standard



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