Current Affairs September 2020 - Finance

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1 - ICICI Prudential Life launched voice chatbot “LiGo” on Google Assistant

ICICI Prudential Life Insurance has introduced its customer service chatbot 'LiGo' on 'Google Assistant'. This would enable the policyholders to have their queries addressed by simple voice commands such as "Ok Google, I want to speak to ICICI Prudential Life LiGo" or "May I talk to ICICI Prudential Life LiGo".

Customers can instantly access information on their policies by activating 'Google Assistant' on their Android smart phones and speaking out their policy number or registered phone number.

2 - Reserve Bank of India revised Priority Sector Lending guidelines

Reserve Bank of India revised Priority Sector Lending guidelines to address the regional disparities in the flow of priority sector credit. In the revised guidelines, higher weightage has been assigned to incremental priority sector credit in identified districts and loan limits for renewable energy have been increased.

Bank finance to start-ups up to 50 crore rupees, loans to farmers for installation of solar power plants for solarisation of grid connected agriculture pumps and loans for setting up Compressed Bio Gas plants have been included as fresh categories eligible for finance under priority sector.

3 - 15th Finance Commission held discussions with its Economic Advisory Council

The Fifteenth Finance Commission held discussions with its Economic Advisory Council. The meeting discussed GDP growth, tax buoyancy of the Centre and the States, GST compensation and fiscal consolidation. Specific issues relating to public expenditure on health, investment revival, recapitalisation of the financial system and its impact on public finances were also discussed.

The meeting was chaired by N. K. Singh, Chairman of Fifteenth Finance Commission. Finance Commission decided to take a nuanced approach towards tax devolution to the States.

4 - ICICI Bank launched ‘Home Utsav’, a virtual property exhibition

ICICI Bank launched ‘Home Utsav’, a virtual property exhibition that digitally showcases real estate projects by renowned developers from key cities across the country. ICICI bank customers can avail exclusive offers such as attractive interest rates, special processing fees and digital sanction of loans, on buying a property through this exhibition.

The first ‘Home Utsav’ exhibition has been launched for the Mumbai and Pune region, where over 100 projects by more than 60 developers were showcased. ICICI Bank customers and those who are not the Bank’s customers, can participate in ‘Home Utsav’.

5 - S Krishnan appointed as MD & CEO of Punjab & Sind Bank

S Krishnan took charge as Managing Director and Chief Executive Officer of state-owned Punjab & Sind Bank. Prior to this appointment, he worked as an Executive Director at Canara Bank. He has handled responsibility as the Executive Director of Syndicate Bank. He has specialisation in various fields such as credit, specifically corporate credit and risk management.

Punjab & Sind Bank is a government-owned bank. The bank has overall 1559 branches which are widely spread across India.

6 - Murali Ramakrishnan selected as new MD & CEO of South Indian Bank

The Reserve Bank of India appointed Murali Ramakrishnan as Managing Director and CEO of the South Indian Bank for a period of three years. Prior to this appointment, he worked as an advisor in South Indian Bank on the risk advisory board of VISA for the Asia Pacific.

Murali worked as former senior executive at ICICI Bank, looking after operations in North Asia, West Asia, Sri Lanka and Africa and as Senior General Manager at Strategic Project Group.

7 - NABARD organised awareness cum sensitisation programme in Jammu and Kashmir

An awareness cum sensitisation programme for newly proposed Farmer Producer Organizations (FPO) was organised by NABARD in Jammu and Kashmir. The programme was organised to promote sustainable and equitable agriculture and rural prosperity through effective credit support related services, institutional development and other initiatives.

Farmers were made aware regarding the scheme for providing financial assistance and training to the farming community for establishment of FPO’s. A large number of farmers engaged in different agri activities and self help groups of NRLM participated in the programme.

8 - RBI paved way for loan recasts

The Reserve Bank specified five financial ratios and sector-specific thresholds for resolution of COVID-19-related stressed assets in 26 sectors, including auto components, aviation and tourism. The 26 sectors specified by the RBI include automobiles, power, tourism, cement, chemicals, gems and jewellery, logistics, mining, manufacturing, real estate, and shipping among others.

The resolution plans shall be taken into account the pre-COVID-19 operating and financial performance of the borrower and impact of COVID-19 on its operating and financial performance at the time of finalising the resolution plan.

9 - Finance Minister unveiled doorstep banking services

Union Minister of Finance Nirmala Sitharaman inaugurated Doorstep Banking Services and felicitated best performing banks on EASE Banking Reforms Index. As part of the EASE Reforms, Doorstep Banking Services is envisaged to provide convenience of banking services to the customers at their door step through the universal touch points of Call Centre, Web Portal or Mobile App.

EASE Agenda is aimed at institutionalising clean and smart banking. The overall score of PSBs increased by 37% between March-2019 and March-2020, with the average EASE index score improving from 49.2 to 67.4 out of 100.

10 - IT Dept issued refunds worth Rs 1.01 lakh cr to 27.55 lakh taxpayers

The Income Tax Department issued refunds of over 1.01 lakh crore rupees to 27.55 lakh taxpayers between April 1st 2020 to September 8th 2020.This includes personal income tax (PIT) refunds amounting to 30,768 crore rupees issued to 25.83 lakh taxpayers and corporate tax refunds amounting to 70,540 crore rupees issued to over 1.71 lakh taxpayers during this period.

The government has emphasised on providing tax related services to taxpayers without any hassles during the COVID-19 pandemic.

11 - RBI ceased Banking operations of Aditya Birla Idea Payments Bank

Reserve Bank of India ceased the Banking operations by the Aditya Birla Idea Payments (ABIP) Bank under Banking Regulations Act 1949 with effect from July 28, 2020. Aditya Birla Idea Payments Bank was headed for liquidation after the company's application for voluntary winding up.

Aditya Birla Idea Payments Bank had received the banking licence from the RBI in April 2017. Vodafone Idea Limited holds 51% in ABIP bank and the remaining 49% by Grasim Industries Limited.

12 - India Post launched Five Star Villages Scheme

The Department of Posts launched a scheme called Five Star Villages, to ensure universal coverage of flagship postal schemes in rural areas of the country. The scheme seeks to bridge the gaps in public awareness and reach of postal products and services, especially in interior villages. All postal products and services will be made available and marketed and publicized at village level.

The schemes covered under the Five Star scheme include NSC / KVP certificates, Sukanya Samridhi Accounts, Funded Post Office Savings Account, Postal Life Insurance Policy and Pradhan Mantri Suraksha Bima Yojana Account.

13 - Bank of Baroda topped EASE 2.0 Index by IBA

Union Minister of Finance Nirmala Sitharaman felicitated best performing banks on EASE Banking Reforms Index. Bank of Baroda, State Bank of India, and erstwhile Oriental Bank of Commerce were felicitated for being the top three (in that order) in the ‘Top Performing Banks’ category, according to the EASE 2.0 Index Results.

Bank of Maharashtra, Central Bank of India and Corporation Bank were awarded in the ‘Top Improvers’ category basis EASE 2.0 Index. Punjab National Bank, Union Bank of India, and Canara Bank were also recognised for outstanding performance in select themes.

14 - SBI to launch new loan scheme SAFAL for organic cotton growers

State Bank of India (SBI) has planned to launch a new loan product called 'SAFAL', to provide loans to farmers on easy terms. Under this product, loans will be provided to the organic cotton growers, who have taken no credit on easy terms will be provided.

SBI will use Artificial Intelligence (AI) and Machine Learning (ML) for launching loan product Safe and Fast Agriculture Loan (SAFAL). Organic cotton is not exposed to toxic chemicals in the field or through their food and water supply.

15 - CRISIL, Ind-Ra upgrade Yes Bank's ratings

Rating agencies CRISIL and India Ratings have upgraded Yes Bank's infrastructure bonds and other papers on the back of improvement in its funding and liquidity profile recently. CRISIL upgraded its rating on Rs. 20,000 crore certificates of deposit of Yes Bank to A2-plus from A2 besides reaffirmed its BBB/Stable rating on the bank's tier two bonds under Basel III and infrastructure bonds.

Ind-Ra revised upwards the bank's long-term issuer rating to BBB from BB-(minus), while resolving the rating watch evolving.

16 - RBI issued norms for compliance functions in banks

The Reserve Bank of India (RBI) issued new guidelines regarding compliance functions and defined the role of the chief compliance officer (CCO) in banks to ensure global industry standards in risk management. A bank shall lay down a Board-approved compliance policy.

As per the new guideline, an independent compliance function is required to be headed by a designated chief compliance officer (CCO). The CCO shall be appointed for a minimum fixed tenure of not less than three years.

17 - Mastercard launched Central Bank Digital Currencies (CBDCs) Testing Platform

Mastercard has launched a Central Bank Digital Currencies (CBDCs) Testing Platform aimed at helping central banks test their digital currencies. The platform enables the simulation of issuance, distribution and exchange of CBDCs between banks, financial service providers and consumers.

CBDCs are designed to be equivalent in value to a nation’s paper currency and subject to the same government-backed guarantees. In addition to printing money, central banks can issue CBDCs as a digital representation of a country’s fiat currency.

18 - ICICI Bank introduced ‘iStartup2.0’

ICICI Bank launched ‘iStartup2.0’ for startups that takes care of their banking as well as beyond-banking needs such as regulatory assistance, analytics, staffing, accounting, customer acquisition and digital outreach to customers, among others.

Under the programme, ICICI Bank offers customers an eponymous Current Account which is available in three variants--Platinum, Gold and Silver. The startups up to 10 years old can opt for the current account of the bank.

19 - SBI and Titan launch contactless payment watches “Titan Pay”

Titan Company has partnered with the State Bank of India (SBI) to launch India’s first contactless payment watches named “Titan Pay”. Titan and SBI have launched a range of stylish new watches with contactless payment functionality for the first time in India.

With this launch, SBI account holders can tap their Titan Pay watch on contactless payment POS machine without the need of swiping or inserting their SBI bank card. A secure certified Near-Field Communication (NFC) chip embedded in the watch strap by Tappy Technologies enables all the functionalities of a standard contactless SBI debit card.

20 - Canara Bank introduced i-Lead 2.0

Canara Bank has launched lead management system (LMS) – i-Lead 2.0 (Inspiring Leads System version 2.0) to provide its services to customers irrespective of where they reside. The new initiative aims to build and sustain business relationships with both new customers to bank and existing customers to bank.

Through LMS, customers can enquire and get services rendered through simple modes such as internet banking, mobile banking, call centre, SMS and missed call. A unique reference number will be generated, which is communicated to the customers at the time of lead generation from above sources.

21 - RBI suggested five-pillared approach to deal with cybersecurity issues in UCBs

The Reserve Bank has suggested a five-pillared strategic approach 'GUARD' to deal with cyber security threats being faced by Urban Co-operative Banks (UCBs). The RBI released its document 'Technology Vision for Cyber Security for Urban Cooperative Banks 2020-2023'.

The five-pillared strategic approach 'GUARD' comprises Governance Oversight, Utile Technology Investment, Appropriate Regulation and Supervision, Robust Collaboration and Developing necessary IT and cybersecurity skills set. The 12 specific action points suggested in the document include -- more board oversight over cybersecurity; enabling UCBs to better manage and secure their IT assets.

22 - Google Pay partnered with Visa to allow card-based payments through tokenisation

Google Pay in association with Visa has rolled out tokenisation that will enable users to safely transact with their debit or credit cards. The feature will allow Google Pay Android users to use their debit or credit card to make payments through a secure digital token attached to their phone without having to physically share their credit or debit card details.

Tokenisation will also facilitate use of tap-to-pay feature on near-field communications (NFC)-enabled point of sale (PoS) terminals and online merchants. The service is already live for SBI Card and Axis card holders with Visa payments network.

23 - IRDAI identified LIC, GIC, New India Assurance as D-SIIs

The Insurance Regulatory and Development Authority of India (IRDAI) has identified Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC) and New India Assurance as domestic systemically important insurers (D-SIIs). D-SIIs are perceived as insurers that are ‘too big or too important to fail’ (TBTF).

Domestic Systemically Important Insurers (D-SIIs) refer to insurers of such size, market importance and domestic and global inter connectedness, whose distress or failure would cause a significant dislocation in the domestic financial system. Therefore, the continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy.

24 - IDBI Bank becomes 1st bank to enable document embedding feature on SFMS

IDBI Bank Limited becomes the [first bank] to have implemented the new feature of document embedding facility with Letter of Credit (“LC”) / Bank Guarantee (“BG”) messages over SFMS platform of IFTAS (a wholly owned subsidiary of Reserve Bank of India) through, its middleware application i@Connect-SFMS (CSFMS) developed by IDBI Intech Limited.

This new feature of “document embedding” provides banks with the functionality of transmitting a pdf. document upto 1MB size along with the LC / BG messages. Transmission of digitally signed documents ensures reliability of the transaction, ease current process of manual verification and reduce frauds.