Current Affairs August 2020 - Finance

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1 - SIDBI launched MSME Saksham portal in partnership with TransUnion CIBIL

Small Industries Development Bank of India (SIDBI) has launched an online knowledge portal, MSMESaksham, for MSME enterprises in partnership with TransUnion CIBIL. The portal will guide MSMEs seeking seamless and quick access to finance and will also support them in managing their credit obligations.

The portal will have a consolidated list of all the schemes launched by the Centre and state governments for MSMEs. Small businesses would also be able to check their CIBIL score, CIBIL rank, loan eligibility and apply for a loan on online lending marketplace PSBloansin59minutes from MSME Saksham.

2 - Kotak Mahindra Bank launched ‘Kona Kona Umeed’ Campaign

Kotak Mahindra Bank has launched a two-month long campaign called ‘Kona Kona Umeed’. As a part of the campaign, the bank will provide a range of offers and deals on its products including loans, savings accounts, current accounts, corporate salary accounts as well as Kotak debit cards, credit cards and digital payments.

Kotak Mahindra Bank has tied up with over 100 brands to provide exclusive deals to its customers in various categories such as shopping, essentials, personal care etc.

3 - SEBI to set up virtual museum of securities market

The Securities and Exchange Board of India is planning to set up a virtual museum of the securities market to highlight achievements and milestones in the Indian capital market. It will be a visual online organized collection of the history of the Indian securities market.

The museum would provide the best-in-class engagement with the latest technology, dispensing the knowledge and content of the securities market in India. The proposed museum would be a unique resource for knowledge of the Indian securities market.

4 - IBBI amends the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017

The Insolvency and Bankruptcy Board of India (IBBI) notified the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2020. The IBC 2016 enables a corporate person to initiate voluntary liquidation process if it has no debt or it will be able to pay its debts fully from the proceeds of the assets.

The amendment made to the Regulations provides that the corporate person may replace the liquidator by appointing another insolvency professional as liquidator by a resolution of members or partners, or contributories, as the case may be.

5 - IBBI amends Insolvency & Bankruptcy Board of India, Liquidation Process, Third Amendment, Regulations, 2020

The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India, Liquidation Process, Third Amendment, Regulations, 2020. The Regulations require the committee of creditors to fix the fee payable to the liquidator.

The amendment made to the Regulations clarifies that where a liquidator realises any amount, but does not distribute the same, he shall be entitled to a fee corresponding to the amount realised by him.

6 - RBI announced loan restructuring window for corporates

The Reserve Bank of India (RBI) has announced a loan restructuring window for corporates following demands from bankers and industry. The restructuring of loans will help the industry tide over the impact of Covid 19. RBI also raised the Loan to value ratio against gold to 90% from current 75% to mitigate Covid 19 impact on households.

Only those companies and individuals whose loans accounts are in default for not more than 30 days as on March 1, 2020, are eligible for one-time restructuring. For corporate borrowers, banks can invoke a resolution plan till December 31, 2020 and implement it till June 30, 2021. Such loan accounts should continue to be standard till the date of invocation.

7 - National Bank of Bahrain selects Infosys Finacle

National Bank of Bahrain (NBB) has announced to adopt the Finacle Cash Management Suite of Infosys Finacle to digitally transform its transaction banking business. NBB is a leading provider of retail and commercial banking services in Bahrain.

NBB will be implementing the Finacle Liquidity Management Platform, and upgrading its existing Finacle Corporate Online Banking platform to a full-fledged Digital Engagement Suite - with the latest versions of the Finacle Corporate Online and Mobile Banking solutions, along with the Finacle Digital Engagement Hub.

8 - Axis Bank unveiled AXAA – an AI powered conversational banking IVR

Axis Bank has launched Automated Voice Assistant ‘AXAA’, an Artificial Intelligence powered conversational voice BOT. AXAA will assist customers to traverse through the Interactive Voice Response (IVR) system and address their queries and requests, without the need for any human intervention in most cases.

AXAA is a next-gen multilingual voice BOT that can converse in English, Hindi and Hinglish. A BOT is basically computer software, programmed and designed to interact with humans.

9 - RBI’s second Bi-monthly Monetary Policy Statement of FY 2020-21

The Monetary Policy Committee of the Reserve Bank of India released the second Bi-monthly Monetary Policy Statement of FY 2020-21. The MPC has decided to keep the benchmark interest rate unchanged with the liquidity adjustment facility (LAF) unchanged at 4%.

The MPC also projected that India’s GDP is likely to contract by 4.5% in CY2020, which could lead to GDP contraction for FY2021. The MPC has maintained the monetary policy stance as accommodative. Variable Stands at −

• Repo 4.00%

• Reverse Repo 3.35%

• CRR 3.00%

• MSF 4.25%

• SLR 18.00%

10 - RBI announced 'positive pay' feature to control cheque frauds

The Reserve Bank of India has announced the introduction of “positive pay” practice for all cheques of value Rs 50,000 and above to control cheque frauds. Under the 'positive pay' system, a customer who issues the cheque clicks a picture of the cheque before handing it over to the beneficiary and uploads the same on the bank's mobile application.

The limit of Rs 50,000 covers approximately 20% of transactions by volume and 80% by value. ICICI Bank already offers such facility since 2016 for all cheques irrespective of the amount.

11 - Airtel Payments Bank partnered with Bharti AXA to offer ‘shop insurance’

Airtel Payments Bank has partnered with Bharti AXA General Insurance to offer ‘shop insurance’ for its retailers and merchants through its ‘Smart Plan Shop Package’ policy. The policy will offer financial protection in case of damage to assets inside the shop caused due to fire and allied perils and burglary among others.

The sum of insurance under the plan would be flexible, starting from Rs 2 lakh up to a maximum of Rs 25 lakh. In case of an accident leading to permanent disability, partial disability, or loss of life, the plan ensures financial protection for the family.

12 - RBI to set up innovation hub

The Reserve Bank of India (RBI) will set up an innovation hub to encourage start-ups and companies address the challenges of financial inclusion and efficient banking transactions. The hub aims to bring solutions to the financial sector by tapping into areas such as cybersecurity, data analytics, delivery platforms, and payment services.

The innovation hub will act as a centre for ideation and incubation of new capabilities. It will help achieve deepening of financial inclusion, efficient banking services, ensuring business continuity in times of emergency and strengthening consumer protection.

13 - RBI Board approved transfer of Rs 57,128 cr as surplus to central government

The RBI Board has approved the transfer of 57,128 crore rupees as surplus or dividend to the central government for the accounting year 2019-20. The decision was taken at the 584^th meeting of the Central Board of the Reserve Bank of India chaired by Governor Shaktikanta Das.

As per Section 47 of the RBI Act, profits of the RBI are to be transferred to the government, after making various contingency provisions, public policy mandate of the RBI, including financial stability considerations. RBI has also decided to maintain a Contingency Risk Buffer at 5.5%.

14 - HDFC Bank launched “Shaurya KGC Card” to members of armed forces

HDFC Bank Ltd launched first of its kind product named as “Shaurya KGC Card”, for over 45 lakh Indian armed forces personnel. The Shaurya KGC Card will provide armed forces personnel with finance for agricultural requirements like production of crop, post-harvest maintenance and consumption needs.

The product is based on the Kisan Credit Card guidelines by the government. It will provide life cover of Rs 10 lakh as against Rs 2 lakh for an average card. It offers funding to purchase farm machinery, irrigation equipment or construct storage structures etc.

15 - MCX launched India’s first bullion index named “Bulldex”

Multi Commodity Exchange of India (MCX) launched India’s first bullion index named “Bulldex”. Bulldex is sixth product in bullion complex with 1-kg gold, 100-gm goldmini, 8-gm gold guinea and 1-gm gold peta, while the Options on Futures on 1-kg gold is already in place. The mock trading exercise was tested in July.

Bulldex will be cash-settled futures contract with market lot size of 50. The Multi Commodity Exchange of India Limited (MCX)is India's first listed commodity derivatives exchange that facilitates online trading.

16 - Fino Payments Bank launched Jan BachatKhata

Fino Payments Bank has launched Jan BachatKhata (JBK) that brings neo-banking experience to consumers. It is an Aadhaar Authentication based digital savings account. Neo banking means a bank without any branches.

Under the Jan BachatKhata, customers can transact at a Fino branch or merchant point with fingerprint and OTP combination, while at non-Fino points they need Aadhaar authentication. The account is primarily targeted at low-income households and beneficiaries of government’s direct benefit transfer.

17 - NPCI sets up NIPL for international market operations

National Payments Corporation of India (NPCI) launched its international arm - NPCI International Payments Ltd. With this, NPCI aims to expand real-time payment system Unified Payments Interface (UPI) and card payment network RuPay in other countries. The primary focus of NIPL would be internationalization of RuPay and UPI.

UPI and RuPay have already marked its presence in Singapore and UAE. NIPL will be headed by Ritesh Shukla as Chief Executive Officer (CEO). The National Payments Corporation of India is the apex organization to conduct operations related to retail payments and settlement systems in India.

18 - RBI released NSFE 2020-25

The Reserve Bank of India (RBI) released the National Strategy for Financial Education 2020-25. It is a strategic plan for the coming five years. The five Cs, outlined by the strategy paper, are: Content, Capacity, Community, Communication and Collaboration.

The NSFE also aims at integrating financial education dissemination as part of various on-going programmes. The National Centre for Financial Education (NCFE) has prepared the revised NSFE (2020-2025). The first NSFE was launched in 2013.

19 - HSBC India launched 'Green Deposit Programme'

HSBC India launched a 'Green Deposit Programme' for corporate clients. The fixed tenure deposit will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate resilient and sustainable economy. The bank will finance green initiatives such as renewable energy, clean transportation, pollution prevention and others.

The 'Green Deposit' is available in INR as 'Term Deposit'. The bank will provide customers with a quarterly report containing portfolio-level information regarding the use of the deposited funds.

20 - ICICI Lombard to buy Bharti AXA General Insurance

ICICI Lombard General Insurance has entered into a definitive agreement to purchase Bharti AXA General Insurance, promoted by Bharti Enterprises. The consolidated entity will have a market share of 8.7% in the non-life business, making it the third-largest non-life insurer in the general insurance business.

Bharti AXA has a market value of Rs. 2,800 crore. ICICI Lombard is valued at around Rs. 59,000 crore. The two entities have merged in a Rs 2,600 crore, all-stock transaction.

21 - YES Bank to sell its mutual fund business

Yes Bank has signed an agreement for the sale of 100 per cent stake in two of its subsidaries, YES Asset Management Limited (YES AMC) and YES Trustee Limited (YTL), to GPL Finance for an undisclosed amount. YES AMC is the asset management company of YES Mutual Fund and YTL is the trustee of YES Mutual Fund.

White Oak Investment Management Private Limited owns 99% of GPL Finance. Prashant Khemka owns 99.99% of White Oak Investment Management Private Limited.

22 - Axis Bank launched hiring initiative named ‘Gig-a-Opportunities’

Axis Bank launched GIG-A Opportunities, a platform for alternate work models that encourage greater flexibility, diversity and inclusivity. GIG-A-Opportunities is a new platform for alternate work models to attract the finest talent, with a promise of growth with flexibility, diversity and inclusivity.

Axis Bank’s ‘GIG-A-Opportunities’ will open up large prospects in digital banking, technology, risk modeling, virtual sales, audit and credit policy.It will attract talent through 100% virtual roles and flexible, project based short term contracts.

23 - NABARD unveiled debt and credit guarantee product

In a bid to ensure unhindered flow of credit to the last mile in rural areas hit by COVID-19 pandemic, National Bank for Agriculture and Rural Development (NABARD) has introduced a dedicated debt and credit guarantee product titled “Structured Finance and Partial Guarantee Program to NBFC-MFIs”. The initiative will enhance access to sustainable finance for microenterprises and low-income households.

NABARD has collaborated with Vivriti Capital, a technology-led credit platform, as the structurer for the facility. The program is expected to cover over 1 million households across 28 states and 650 districts.

24 - ICICI Bank announced usage of satellite data to assess creditworthiness of farmers

ICICI Bank announced the usage of satellite data imagery from Earth observation satellites to assess credit worthiness of its customers belonging to the farm sector. It is first such bank to use satellite data. The Bank has been using satellite data for the past few months in over 500 villages in Maharashtra, Madhya Pradesh and Gujarat.

This use of innovative technology helps farmers with existing credit to enhance their eligibility, while new-to-credit farmers can now get better access to credit and provides quick analysis of the land without the need of the customer or a bank official having to visit the land.

25 - HDFC Bank and Adobe partnered to enhance digital customer experiences

HDFC Bank announced a strategic partnership with Adobe to enhance the digital experience journey of its customers. It will enable HDFC Bank to deliver personalised digital experiences to existing as well as new customers, at anytime and anywhere. HDFC Bank’s customers can now apply for loans digitally from home , open an account digitally and manage investments.

Adobe Experience Manager (AEM) Forms will allow HDFC Bank to provide personalised online experiences to its existing and new customers. The rich data will enable the bank to deliver focussed campaigns and communication to customer through email, mobile, off-line channels and more.