Current Affairs Economy & Banking

  As per Second Bi-monthly Monetary Policy Statement for 2019-20, the Reserve Bank of India will stop imposing additional charges on Fund transfer through RTGSand NEFT systems from 1st July, 2019. This has been done to provide an impetus to digital funds movement.
Source: The Business Today

  The Reserve Bank relaxed the leverage ratio (LR) to 4% for Domestic Systemically Important Banks (DSIBs) and 3.5% for other banks. This has been done to help them boost their lending activities. The reduced  leverage ratio will be effective from the quarter commencing October 1, 2019. The leverage ratio, as defined under Basel-III norms, is Tier-I capital as a percentage of the bank’s exposures.
Source: The Business Standard

  The Complaint Management System (CMS) is a software application launched by Reserve Bank of India on its website. It will be used for lodging complaints against banks and NBFCs with a view to improve customer experience in timely redressal of grievances. Customers can lodge complaints against any regulated entity on the platform. These complaints will be directed to the appropriate office of the Ombudsman/Regional Office of the RBI. The RBI is also planning to introduce a dedicated Interactive Voice Response (IVR)system to track the status of complaints.
Source: The Economic times

 The Reserve Bank of India has advised all Scheduled Commercial Banks to adopt Education Loan Scheme, formulated by Indian Banks Association.
Salient features of the Scheme includes:
  • Loan upto Rs 10 lakh for study in India and upto Rs 20 lakh for study abroad.
  • Collateral free loans upto Rs 7.5 Lakh under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).
  • No Margin for loan up to Rs 7.50 Lakh.
  • Repayment period of 15 years.
  • One Year Moratorium for repayment after completion of studies in all cases.
  • Moratorium taking into account spells of unemployment/under employment, say two or three times during the life cycle of the loan.
  • Moratorium for the incubation period if the student wants to take up a start-up venture after graduation.
Source: The Press Information Bureau

  Reserve Bank of India’s (RBI) Deputy Governor Viral Acharya has quit six months before the scheduled end of his term. He had joined RBI on January 23, 2017. Viral Acharya was in charge of the Financial Stability Unit, Monetary Policy Department, Department of Economic and Policy Research, Financial Markets Operation Department, Financial Market Regulation Department, among others at the RBI.
Source: The Moneycontrol

  Competition Commission of India (CCI) has approved the merger of the Indiabulls Housing Finance and Lakshmi Vilas Bank. Lakshmi Vilas Bank is going to merge with Indiabulls Housing Finance in a share swap deal with intent to create a combined entity with a larger capital base and wider geographical reach. After the merger, Indiabulls Housing Finance will get access to low cost deposits, geographical diversification and expanded client base and cross selling opportunities.
Source: The Live Mint

  From July 1, Canara Bank customers can deposit cash of up to Rs 50,000 for free only thrice a month. From the fourth transaction or for cash deposits of over Rs 50,000, there will be a service charge of Rs 1 per thousand, with a minimum of Rs 50 and a maximum of Rs 5,000 plus GST.
Source: The Hindu

 Reserve Bank fined country’s largest private sector lender HDFC Bank Rs 1 crore for not reporting frauds and non-compliance with other directions. The fine pertains to submission of forged bill of entries (BoEs) by certain importers to HDFC Bank for remittance of foreign currency.
Source: The Economic times

  The Jammu and Kashmir Bank will now come under the purview of Right to Information Act and Central Vigilance Commission (CVC) guidelines as per the decisions taken by the Board of Directors of the Jammu and Kashmir Bank to ensure greater transparency and accountability.
Source: Financial Express

 Based on the recommendations of the Committee on Currency Movement (CCM), the Reserve Bank have directed banks to ensure their ATMs are grouted to a wall, pillar, or floor by September-end, except those installed in high secured premises such as airports, to enhance security of the cash vending machines. The committee to review the entire gamut of security of treasure in transit is chaired by Shri D.K. Mohanty.
Source: Economic times

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