Banking & Finance Awareness August 2017
Airtel Payment Bank ties up with HPCL for ATM services
Airtel Payments Bank; India’s first payments bank has announced a strategic
partnership with Hindustan Petroleum Corporation Limited (HPCL) on 1st of August 2017.
- Underwhich 14,000 HPCL fuel stations will act as banking points for Airtel Payments
- ii.Italso offer facilities such as opening of account, cash deposit and cash withdrawal to
the payment bank’s customers.
iii. Airtel Payments Bank customers will also be able to make digital payments for fuel purchases
across 14,000 HPCL fuel stations by using their mobile phones.
- Thesecashless payments can be made via smartphones (MyAirtel App) as well as feature
- Thereis no transaction fee for these digital payments
Reserve Bank announces its third bi-monthly policy review of current fiscal
On August 2, 2017, Reserve Bank of India (RBI) announced Third Bi-Monthly Monetary Policy
Statement for financial year 2017-18. This time, RBI has cut the policy repo rate by 25
basis points (bps) to 6 percent.
Post the Third Bi-Monthly Monetary Policy Statement announcement, the policy rates
and reserve ratios are as follows:
|Policy Repo Rate||6.00%||Reduced by 25 basis points. Earlier it was 6.25%|
|Reverse Repo Rate||5.75%||Reduced by 25 basis points. Earlier it was 6.00%|
|Marginal Standing Facility Rate||6.25%||Reduced by 25 basis points. Earlier it was 6.50%|
|Bank Rate||6.25%||Reduced by 25 basis points. Earlier it was 6.50%|
|Cash Reserve Ratio (CRR)||4.00%||th
Unchanged – since 9 February 2013
|Statutory Liquidity Ratio (SLR)||20.00%||th
Unchanged – since 7 June 2017
As per a report by global financial services major UBS, Indian government is on track to
achieving the fiscal deficit target of 3.2% of Gross Domestic Product (GDP) in the current
- IndianGovernment’s fiscal deficit narrowed from a peak of 6.5 per cent of GDP in 2009-
10 (after the global financial meltdown) to 5 per cent of GDP in 2016-17 and is estimated to
fall further to 3.2 per cent of GDP in 2017-18.
- However,the states’ fiscal position remains stretched, with the fiscal deficit rising from a
low of 1.9 per cent of GDP in 2011-12 to 3 per cent of GDP in 2016-17.
SBI, Samsung collaborate to advance Digital India initiative
The State Bank of India (SBI) and Samsung India has announced the availability of
Samsung Pay for higher variants of SBI debit card to advance Digital India
initiativeon 1st of August 2017.
- TheBank aimed to be the Banker to Digital India and has been at the fore-front of all
digital initiatives in the banking space.
- ii.SamsungPay consumers holding eligible SBI Debit Cards can avail a flat 100 cashback on
minimum transaction amount of Rs. 500.
iii. The cardholder can avail maximum cashback of Rs. 500 per card, during the offer period
from 1st August to 31st August.
India, ASEAN-5 more fetching to FDI than other emerging markets
As per Japanese financial services firm Nomura, India along with ASEAN – 5
countries (Indonesia, Malaysia, Thailand, Philippines and Vietnam) is more attractive Foreign
Direct Investment (FDI) destination as compared to other emerging markets.
- Nomurahas dubbed India and ASEAN-5 (Indonesia, Malaysia, the Philippines, Thailand and
Vietnam) as “Asia’s tiger cubs”and has said that Foreign Direct Investment (FDI) flows to
these nations are expected to surge to around USD 240 billion by 2025.
- InIndia, FDI is expected to flow into sectors that need growth capital such as
infrastructure, banks, e-commerce and hospitals and those with strong long-term growth
prospects which include retail, automobiles, pharmaceuticals and diagnostics.
SBI to raise 2000 crore via BASEL-III bonds
State Bank of India plans to raise Rs 2,000 crore by allotting Basel-III compliant bonds
to various investors.
- i.Thecommittee of directors for capital raising accorded its approval on 3rd of August
- ii.Itwill allot 20,000 AT1 Basel-III compliant non-convertible, perpetual, subordinated
bonds in the nature of debentures.
iii. The bonds will carry a coupon rate of 8.15% per annum with a call option after 5 years or the
anniversary date thereafter.
India signs loan agreement with AIIB for Financing of US$ 329 million for Gujarat Rural
On August 4, 2017, Government of India/ Government of Gujarat signed US$ 329 million
Loan and Project Agreements with Asian Infrastructure Investment Bank (AIIB) for
or Gujarat Rural Roads Project. The loan agreement was signed in New Delhi.
- Theobjective of Gujarat Rural Roads Project is to improve the rural road connectivity and
accessibility by providing all weather road connectivity to 1,060 villages in all the 33 districts
- Thisproject will benefit nearly 8 million people in Gujarat.
Finance Minister Arun Jaitley announces new ETF-Bharat-22; Sectoral cap set at 20%
On August 4, 2017, Finance Minister Arun Jaitley launched a new Exchange Traded Fund
(ETF) under the name Bharat 22, comprising shares of 22 companies from 6 sectors of
the economy. This decision comes on the basis of past experiments with CPSE-ETF which
proved to be successful.
- TheETF will feature four banking stocks — SBI, Axis Bank, Bank of Baroda and Indian
Bank — other than CPSEs such as Nalco, ONGC, IOC, BPCL and Coal India.
- Besides,there will be nine other PSUs as well as REC and PFC.
Canara Bank has hit the international debt market with a benchmark dollar bond issue that will
have a tenor of 5 years. Through this issue, Canara Bank will raise $400 million as part of
its $2 billion medium-term note programme. A medium-term note (MTN) is a
debt note that usually matures (is paid back) in 5–10 years.
- Bondsale will be drawn through London branch of Canara Bank.The bonds will be listed on
the Singapore Stock Exchange.
- Foreignrating agency Moody’s has assigned a Baa3 rating to the issue, which is on par
with the sovereign rating since majority stake in the bank is owned by the Indian government.
Kotak Bank’s new forex service ‘Kotak Remit’
Kotak Mahindra Bank has launched a new service called “Kotak Remit”.
- Thisservice is an Aadhaar-based integrated outward forex remittance solution for both
customers and non-customers.
ii .It offers a completely paperless process that will be helpful to users to register online using
Aadhaar and PAN numbers, and initiate remittances instantly.
Companies to disclose bank defaults within one day: SEBI
The Securities and Exchange Board of India (SEBI) has directed to companies which fail to
disclose any default on the payment of interest or repayment of principal to banks or financial
institutions within a day.
- i.on18 July, Sebi issued a circular with listed banks to disclose divergences in bad-loan
estimates to stock exchanges as soon as they receive a communication from the Reserve Bank
of India (RBI).
- SEBIhas directed that, starting 1 October, listed companies will need to disclose defaults on
loan repayments within one working day.
Forex reserves surge to record $392.86 billion
During the week to July 28, the RBI showed data which refers the country’s foreign exchange
reserves surged by $1.536 billion to touch $392.867 billion, helped by rising in foreign
currency assets (FCAs).
- Inthe previous week, it had increased by $2.27 billion to $391.33 billion.
- ii.Foreigncurrency assets (FCAs) rose by $1.609 billion to USD 759 billion. FCAs include
effect of appreciation or depreciation of non-US currencies such as the euro, the pound and the
yen held in the reserves.
MobiKwik partners Bajaj Finance for Larger financial service pie
In a bid to emerge as a top consumer finance brand in the digital space, mobile wallet
major MobiKwik has entered into a strategic partnership with Bajaj Finance to transform
itself into a financial services app from a payments app at present.
- Underthis partnership, Bajaj Finance has picked up 10.83 per cent equity stake in
MobiKwik for about Rs. 225 crore and will offer its lending (purchase finance, credit card,
mortgage loans and personal loans) and insurance products to be sold through the MobiKwik app.
- ii.MobiKwik,which currently has a user base of 55 million, will, through this partnership, get
immediate access to about 100 million customers of Bajaj Finance.
iii. From a combined customer base of 155 million today, MobiKwik will aim to offer financial
services to 300 million users in the next couple of years.
Mastercard, PayPal expand partnership into Asia Pacific
Mastercard and PayPal have announced an extension of their partnership into Asia Pacific
for making MasterCard a clear payment option within PayPal.
- i.PayPalwill add Mastercard as a payment method to their e-wallet and consumers can make it
their default payment option.
- ii.CardCompany will provide tokenization services and will enable mobile payments using
PayPal’s digital wallet at more than 6.5 million contactless-enabled merchant
locations across the globe.
iii. The partnership will also add Master pass as a payment option for merchants that
process payments via Braintree.
PNB customers to pay higher charges for non-credit services
PNB customers will have to pay charges for depositing cash above Rs 5,000 in a non-base
branch even if it is located in the same city.
- i.Currently,the customers of Punjab National Bank (PNB) are levied charges only for depositing
cash over Rs 25,000 at a non-base branch within the same city.
- ii.Acustomer will have to pay Re 1 per Rs 1,000 for above Rs 5,000 cash deposit or part
thereof with a minimum of Rs 25 per transaction.
iii. It has been decided to revise the non-credit related charges exclusive of GST with effect from
1st of September 2017 for cash deposit above Rs 5,000 at other than base branch within the same
- iv.Thebank has also revised upwards the cheque returning charges for a payment of ab ove Rs
1 crore to Rs 2,000 for first cheque and Rs 2,500 for subsequent bounces.
- v.Currently,for cheque returns of above Rs 1 crore, the charges are Rs 1,000 for first cheque
and Rs 1,500 for subsequent instances.
VI .At an outstation branch, cash deposit up to Rs 5,000 will be free of cost from 1st of
September, which at present is limited for Rs 25,000.
vii. For above Rs 5,000 cash deposit at outstation branch, the bank will levy Rs 2 per Rs
1,000 or part thereof with a minimum of Rs 25 per transaction.
viii. The locker rent is being raised by 25% for small, medium, large and extra-large
sizes to Rs 1,500, Rs 3,500, Rs 5,500 and Rs 10,000 respectively, for metro branches
Finance Ministry panel to resolve bank pensioner’s issues
The Department of Financial Services under Ministry of Finance has set up a committee to
resolve the pending issues of bank pensioners and retirees. This is the outcome of a series
of meetings the All India Pensioners and Retirees’ Confederation had with the Union
Finance Minister Arun Jaitley; Minister of State Santosh Kumar Gangwar and department
Demand of Pensioners/Retirees:
- i.100per cent DA neutralisation for pre-2002 retirees
- Improvementin family pension, medical insurance and a medical benefit schemeiii. Pension updation
- Secondoptions to compulsorily retired officers and resignees who have put in a pensionable
ICICI bank launches instant credit card with the limit upto 4 lakhs
ICICI Bank has announced the launch of Instant Credit Card Service that will enable its
savings account customers to get a credit card instantly, in a completely digital and
- i.Usingthe Instant Credit Card Service, pre-qualified customers can apply and get credit
card number and other important details online.
- ii.Underwhich, he/she can immediately start shopping online, without having to wait for the
physical card to arrive.
iii .There is a credit limit of up to Rs 4 lakh based on pre-checked bureau scores.
- iv.Theapplication procedure also incorporates an additional level of authentication in order to
make the security of the offering robust.
- v.Currently,this facility to apply for a credit card is available through the Bank’s internet banking
- vi.Itwill also be available shortly on iMobile, the Bank’s mobile banking application
IDFC Bank partners with ZETA for digital payments solution
IDFC Bank has partnered with digital payments company Zeta, to launch ‘IDFC Bank
Benefits’ announced on 9th August 2017.
- i.‘IDFCBank Benefits’is a payment solution for corporates that digitizes employee spends
and claims, making the process simple, real-time and paperless.
- ii.Theend-to-end digital solution comprises an IDFC Bank Benefits Card and Zeta app which
unite the full suite of allowances and reimbursements offered by an employer into one preloaded
iii. Employees can also access the Benefits Card via the Zeta app on mobile or web.
- iv.Thisenables them to track spends, entitlement limits and submit claims,
- v.TheBenefits Card and Zeta appenhances user experience as it provides convenience and
flexibility to the employee.
PNB introduces Biometric attendance register
Punjab National Bank (PNB) has introduced a biometric attendance register in the place of
the existing system of signing attendance in the attendance register.
- Thenew system of marking attendance will be implemented in branches/offices with immediate
effect, the circular issued on 3rd August.
- Thebiometric attendance device will capture the attendance along with the time of
marking the attendance.
SEBI launches online registration for custodians of securities
Markets regulator SEBI has introduced an online registration mechanism for custodians of
securities to make it convenient for them to do business on 10th of August 2017.
- Thenew system would help custodian of securities to complete registration and other
regulatory filings with SEBI much faster and in a cost-effective manner.
- Custodianof securities holds shares and other assets in electronic or physical form.
iii. The Securities and Exchange Board of India mentioned that the new system has been made
operational with immediate effect.
RBI to pay Rs. 30,659 crore dividend to government
This year, Reserve Bank of India (RBI) will be transferring to the Government Rs 30,659
crore as dividend. This amount is less than half the amount of Rs 65876 crore it transferred to
Government last year.
Probable Reasons for lower dividend this year:
i .The reduction in the transfer of surplus to the government could be due to a number of factors
including higher cost of printing new currency notes and cost of managing excess
liquidity generated from phasing out of Rs 500 and Rs 1000 notes.
- Duringlast year, foreign currency reserves of RBI were fetching less return because
most of the foreign countries were giving negative returns or very low returns.
Canara Bank launches two new digital services
On August 10, 2017; Canara Bank unveiled two new digital services for online
payments. Bharat QR (Quick Response) for payment settlement at merchant locations
and Bharat Bill Payment System (BBPS), an integrated bill payment system for net banking
i.Bharat QR (Quick Response): It is a mobile application, which enables a merchant to accept
payments as settlement for sale of goods or services. The service product rides
on VISA/MasterCard/RuPay cards and holders need not divulge card information to merchants.
ii.Bharat Bill Payment System (BBPS): It is an initiative of the Reserve Bank of India
(RBI) and is managed by the National Payments Corp of India (NPCI). It offers bill payment
services to the bank’s net banking customers with network of agents.
Indian Bank Brings 2-tier Interest Rate for Savings Accounts
Indian Bank has introduced two tier interest rate structures for saving bank accounts. It will
offer 4% per interest per annum for incremental balance over Rs 50 lakh and 3.50% per
annum for balance up to Rs 50 lakh.
i.The new interest rate will be effective from 16th August 2017.
ii.Recently SBI had bring down interest rate on savings account deposits by 50 basis points to 3.5
per on balance of Rs 1 crore and below.
iii.SBI continues to offer 4% interest on savings account balance of Rs 1 crore and above.
Flipkart has become the third most funded private company globally
Flipkart has taken over the rein of the market by becoming the third most funded private
company in the world.
i.Flipkart’s total raised capital is now almost $7 billion which is higher than that raised by
global giants like online house rental aggregator Airbnb ($3.3 billion) and mobile phone maker
Xiaomi ($1.4 billion).
ii.In valuation, Flipkart stands at the 9th position with about $15 billion.
iii.Uber is the most valued company at $68 billion, followed by DidiChuxing at $50 billion, and
Xiaomi at $46 billion.
iv.The top two are both ridehailing platforms –China-based Didi Chuxing and US-based
SBI gives leg-up to CSR initiatives, adopts 50 villages
On August 14, 2017, State Bank of India (SBI) launched a Corporate Social Responsibility
(CSR) initiative, ‘SBI Gram Seva’, which will work in the areas of health, education,
environment and rural infrastructure.
About ‘SBI Gram Seva’:
The SBI Foundation will identify and partner with NGOs to carry out CSR initiatives.
- Underthe initiative, SBI will adopt five villages each from 10 village panchayats
with each village getting around Rs 2.40 crore over the next three years.
- SBIChairperson Arundhati Bhattacharyahas mentioned that 10 gram panchayats
comprising of 50 villages in six states have already been adopted, and the bank plans
to adopt 100 gram panchayats in the next three years.
City Union Bank offers instant credit cards
City Union Bank is going to offer instant credit cards and customers can generate a credit
i.The bank introduced the option of an “instant credit card” for free for its Net banking customers.
ii.According to the Bank sources about 80 customers had generated a credit card on Day 1.
iii.All that a customer has to do is log on to his/her net banking account and seek a credit
iv.The customer will be allowed a credit limit of up to 80% of the deposit or a maximum of 3 lakh.
v.The physical delivery of the card will take a day or two. In the meantime, the card-holder can
use it for online purchases.CUB has tied-up with MasterCard for the instant credit card.
Aadhar must for subsidised farm loans: RBI
Reserve Bank of India (RBI) has made Aadhar linkage mandatory for farmers who wish to
avail short-term crop loans in 2017-18 on 16thAugust 2017.
i.Under Interest Subvention Scheme, the banks are advised to make Aadhar linkage mandatory
for availing short-term crop loans in 2017-18.
ii.The interest subvention of 2% will be calculated on the crop loan amount from the date
of its disbursement/drawal up to the date of actual repayment of the crop loan by the farmer or
up to the due date of the loan fixed by the banks whichever is earlier.
iii.It is for a maximum period of one year.
iv.RBI has defined that farmers can avail of short-term crop loans of up to Rs 3 lakh at
the subsidised interest rate of 7%that could go down to 4% on prompt repayment.
V.An additional interest subvention of 3% will be available for those who pay their pay dues
Vi.This also implies that the farmers paying promptly as above would get short term crop loans @
4% per annum during the year 2017-18.
SBI holds home loan utsav in Bengaluru
State Bank of India held two-day Home Loan Utsav at its local head office in Bengaluru.
(a)The loan Utsav saw title sponsor is GM Infinite.
(b)Subtitle sponsors- Brigade Group, Salarpuria Sattva and DSR Infra.
i.The bank is offering a 0.25% concession in interest rate from the fourth year of the home
loan if it is availed at the SBI Utsav.
ii.Those buying flats in real estate projects for which SBI has extended loans can avail home loans
in four days.
Karur Vysya Bank inaugurates AADHAAR enrolment centre in Chennai
Private sector Karur Vysya Bank hasunveiled the Aadhaar Enrolment Centre in Chennai.
i.The Unique Identification Authority of India had advised commercial banks to provide Aadhaar
enrolment and updation facility at various branches.
ii.KVB is the first private sector bank to provide Aadhaar Enrolment Centre service in the
NSE to introduce seamless corporate announcement filing mechanism
NSE has decided to introduce seamless corporate announcement filing mechanism for information
related to change in auditors, change in directors, and declaration of audit reports with
unmodified opinion. This system will be in effect from 17th August 2017.
i.The listed companies would be required to file corporate announcements on reappointment
and statement of impact of audit qualifications through the mechanism.
ii.The announcements filed by listed companies under the mechanism are circulated directly on
the NSE website without the exchange’s intervention.
iii.It would help in dissemination of corporate announcements to investors without loss of time.
Axis Bank to waive 12 EMIs on home loans under Shubh Aarambh scheme
Under the new scheme Shubh Aarambh Home Loans Axis Bank will waive 12 equated
monthly installments (EMIs) on regular repayments of loans of up to Rs 30 lakh.
i.The lender has introduced ShubhAarambh Home Loans, in which 12 EMIs are waived 4 EMIs
each after the fourth, eighth and 12th year from the date of the first disbursement.
ii.Customers also have the option to transfer existing home loans to Axis Bank without
RBI Introduces Rs. 50 banknote in Mahatma Gandhi (New) Series
The Reserve Bank of India (RBI) will soon release Rs 50 denomination banknotes in the
Mahatma Gandhi (New) Series, having signature of Governor Urjit R. Patel. RBI clarified
that all the Rs 50 banknotes in the earlier series will continue to be a legal tender. In December
2016, RBI had announced that it would soon issue new currency notes of Rs 50 and Rs 20.
About Rs 50 denomination banknotes in the Mahatma Gandhi (New) Series:
- Thebase colour of the new note is fluorescent blue. It has a motif of Hampi with
Chariot on the reverse, depicting the country’s cultural heritage.
- Thenote has geometric patterns aligning with the overall colour scheme, both at the
obverse and reverse. Dimension of the banknote will be 66 mm x 135 mm.
Design & Security Features Rs 50 denomination banknotes in the Mahatma Gandhi
i.Front Side of the Note ii.Back Side of the Note
SBI tops share of willful default to PSBs
Country’s largest lender SBI accounts for over 27% of the total amount owed to public
sector banks by wilful defaulters announced on 20th August 2017.
i.Total 1,762 wilful defaulters owed Rs 25,104 crore to State Bank of India as on 31
ii.Punjab National Bank (PNB) is next on the list with 1,120 wilful defaulters having
outstanding non-performing assets (NPAs) or bad loans of Rs12,278 crore.
iv.According to the Finance Ministry data total outstanding loans due to public sector banks
by wilful defaulters amounted to Rs92,376 crore.
vii.Gross NPAs of the public sector banks rose to Rs6.41 lakh crore at the end of March
2017 as against Rs5.02 lakh crore a year ago.
SBI waives off up to 100% processing fee on car, gold, personal loans
State Bank of India (SBI) has announced waiver of up to 100% of processing fee on car
loans, personal gold loans and personal loans for the festive season.
i.SBI had previously waived off processing fee on the takeover of home loans.
ii.The bank has waived the entire processing fee on car loans till 31st December
2017 and half of the processing fee on personal gold loans till 31st October 2017.
iii.Customers can also avail 50% waiver on processing fee on Xpress Credit, a personal loan
offering by the bank, till 30th September 2017.
NABARD Approves Rs 1,350-cr Loan to Rajasthan Government
The National Bank of Agriculture and Rural Development (NABARD) has sanctioned a loan
assistance of Rs 1,349.55 crore to the Rajasthan government announced on 20th Aug 2017.
i.The loan has been approved for creation of rural infrastructure in the state under the
Rural Infrastructure Development Fund (RIDF).
ii.The sanction includes assistance for construction of two rural drinking water supply projects,
strengthening and rehabilitation of 1,614 rural roads and modernisation of three major irrigation
iii.An amount of Rs 599.84 crore has been sanctioned for rehabilitation of 1,614 roads.
Two regional rural banks record over Rs.150-cr profit in FY17
According to the Reserve Bank of India’s ‘Report on Trend and Progress of Banking in
India’, 45 of the 56 RRBs earned profits without carrying any accumulated losses during
i.Karnataka Vikas Grameena Bank and Andhra Pragathi Grameena Bank recorded net
profit of more than Rs.150 crore during 2016-17.
ii.Out of the 56 regional rural banks (RRBs) in the country two RRB’s have recorded net profit of
over Rs.150 crore each during 2016-17.
iii.These are among the 49 RRBs that recorded a profit in 2016-17. Seven RRBs suffered losses
during the period.
iv.As for 19 RRBs, data was taken from the figures compiled by All India Regional Rural Bank
v.The three RRBs promoted by Syndicate Bank – Prathama Bank, Karnataka Vikas Grameena
Bank, and Andhra Pragathi Grameena Bank have improved their net profit over 2015-16 and
emerged in the top league of profit-making RRBs during 2016-17.
vi.These RRBs covered 18 districts in three States with a network of 1,563 branches.
vii.At the end-March 2017, RRBs had 21,398 branches spread across 676 districts and 28 States.
Asia Index launches S&P BSE Bharat 22
Asia Index Private Ltd has announced the launch of S&P BSE Bharat 22 Index. It has
been launched to track the performance of state-run companies in which the central
government has divested its stake.
i.The index, as benchmark for “Bharat 22” disinvestment program of the government.
ii.It comprises of 22 select bluechip companies of which:
- 16are Central Public Sector Enterprises (CPSE).
- 3are from Specified Undertaking of the Unit Trust of India (SUUTI)
- 3are PSU Banks, and are listed on the BSE.
iii.S&P BSE Bharat 22 has been licensed to ICICI Prudential AMC for development of an exchange
traded fund (ETF) based on the index.
iv.It covers six sectors namely industrials, finance, utilities, energy, FMCG, basic
materials and telecom.
Dhanlaxmi Bank, DHFL Pramerica tie up for bancassurance
DHFL Pramerica Life Insurance Company has signed on Kerala-based Dhanlaxmi Bank as
its bancassurance partner announced on 24th of Aug 2017.
i.Under which the Kerala-based Dhanlaxmi Bank will distribute retail and group life insurance
products to its customers across 260 branches in India.
ii.The bank anticipates an annual incremental income of ₹20-30 crore from this
iii.With this tie-up, the company is in a strong position to consolidate its presence in Kerala, Tamil
Nadu, Andhra Pradesh and Karnataka.
New Rs 200 banknote to be launched by RBI
i.The Reserve Bank of India has launched the Rs 200 notes from 25th August from select RBI
offices and some banks.
ii.The notes will be in the Mahatma Gandhi (New) Series, bearing signature of Governor Urjit
Key Specifications of the Note, as detailed by the RBI:
- Seethrough register with denominational numeral 200.
- Latentimage with denominational numeral 200.
- Denominationalnumeral 200 in Devnagari.
- Portraitof Mahatma Gandhi at the centre.
- Microletters ‘RBI’, ‘Bharat’ (in Hindi), ‘India’ and ‘200’.
- Windowedsecurity thread with inscriptions Bharat in Hindi and RBI with colour shift.
Colour of the thread changes from green to blue when the note is tilted.
- Denominationalnumeral with rupee symbol, Rs 200 in colour changing ink (green to
blue) on bottom right.
For visually impaired: Intaglio or raised printing of Mahatma Gandhi portrait, Ashoka Pillar
emblem, raised Identification mark H with micro-text Rs 200, four angular bleed lines with two
circles in between the lines both on the right and left sides.
On the reverse side
(a) Year of printing of the note on the left. (b) Swachh Bharat logo with slogan
(c) Language panel (d) Motif of Sanchi Stupa
(e)Denominational numeral 200 in Devnagari
Dimension: Dimension of the banknote will be 66 mm × 146 mm.
New Rs 50 note to hit market soon, old note to continue
A new fluorescent blue Rs 50 banknote in the Mahatma Gandhi series, slightly smaller and
slimmer than the existing note will soon be introduced by the Reserve Bank of India. All earlier
notes will also continue to be legal tender. The dimensions of the new note will be 66mm x
135mm. While the height is the same as the new Rs 500 and Rs 2,000 banknotes which were
issued after demonetization, the width is lesser than the Rs 500 banknote.
HDFC Bank launches all-in-one PoS machine
HDFC Bank has launched an all-in-one offering, DigiPoS Machine that offers a complete
suite of digital payment solutions announced on 22nd of Aug 2017. With DigiPoS,
a merchant can use as many as 12 various digital payment options like UPI, Bharat QR,
SMS Pay, PayZapp, Tap & Pay, EMIs in addition to debit/credit card swiping.
i.The merchant has to do is to update his/her machine with a software at no cost.
ii.The new software will work only on HDFC Bank-issued PoS machines, but will accept any
card or app from any bank/service provider.
iii.DigiPoS integrates all popular digital payment methods in merchant payment machines offering
greater convenience to both customers and merchants.
iv.The software for DigiPoS has been developed in-house by the bank’s engineers.
v.The upgraded device will also allow merchants to offer equated monthly instalment
(EMI)-based payments using HDFC Bank credit and debit cards.
Banks to pay 3% IGST on gold imports
According to the government norms the Banks importing gold and precious metals will have
to pay 3% tax under the GST which can be claimed as input tax credit.
i.Under GST 3% Integrated-GST is payable on all imports of precious metals in addition to the
basic customs duty. IGST paid can be taken as input tax credit by the banks.
ii.The CBEC also clarified on levy of GST where the total value of a gold ornament is Rs
30,000, including Rs 2,000 as making charge.
iii.GST is payable at the rate of 3% of the total transaction value of jewellery, whether
the making charge is shown separately or not.
Govt. notifies changes in Banking Regulation Act
The government has find a way to initiate insolvency resolution process to recover bad loans by
giving authorize to RBI through Banking Regulation (Amendment) Act.
i.The banking sector is burdened with non-performing assets (NPAs) of over Rs 8 lakh crore, of
which Rs 6 lakh crore is with public sector banks (PSBs).
ii.The RBI had identified 12 accounts each having more than Rs 5,000 crore of outstanding loans
and accounting for 25 per cent of total NPAs of banks for immediate referral for resolution under
the bankruptcy law.
IRDAI launches central database of insurance sales persons
The Insuranace Regulatory and Development Authority of India (IRDAI) has launched a Central
Database of all Insurance Sales Persons in the country.
i.`Envoy’ :-The database make sure that all licensed insurance sales persons working for
insurers and intermediaries including entities such as insurance agents, broker qualified persons,
specified persons of corporate agents, authorized verifiers of web aggregators, point of sales
persons (POS) .They do not work with multiple insurers and intermediaries in the same business
ii.Envoy covers POS, specified persons of corporate agents, qualified persons of insurance brokers
and authorised verifiers of web aggregators.
Canara HSBC Oriental Life Insurance Company (CHOICE) launches ‘PoS-Easy Bima Plan’
Canara HSBC Oriental Bank of Commerce Life Insurance Company
(CHOICE) has launched with a ‘Point-of-Sale’ Easy Bima Plan targeted at the mass-
i.The product ‘PoS – Easy Bima Plan’ is the first PoS product for the company. It will provide life
cover and also returns all premiums paid during the payment term on survival till
ii.It is specially designed to provide an affordable and hassle free protection, to take care of the
needs of your loved ones.
iii.The affordable premiums start from Rs.1,000 annually and there is inbuilt double life
cover in case of accidental death.
Ujjivan SFB receives scheduled bank status from RBI
Ujjivan Small Finance Bank Ltd is a wholly-owned subsidiary of Ujjivan Financial
Services Ltd, has been included in the second scheduled to the RBI Act 1934 on 30th Aug
i.This grants the ‘Scheduled Bank’ status to Ujjivan Small Finance Bank’ from the date of
ii.With this Ujjivan Small Finance Bank can issue certificate of deposits.
iii.Ujjivan SFB commenced its operations as a Small Finance Bank with effect from February 1,
Freyr Energy ties up with Axis Bank
Solar energy services company Freyr Energy has tied up with Axis Bank announced on
31st Aug 2017.
i.It will offer term loans ranging from Rs 5 lakh to Rs 50 lakh for tenures up to five years,
for solar rooftop installations in Telangana and Andhra Pradesh.
ii.This loan programme will help MSMEs significantly to reduce their electricity bills.
SEBI bans Orion Capital, Orion Broking from markets for 10 yrs
Markets regulator SEBI has barred Orion Capital as well as Orion Broking and their
partners from the securities markets for 10 years announced on 29th of Aug 2017.
i.They have been barred for failing to redress several investor grievances related to non-
settlement of funds due to the clients.
ii.The claim amount is more than Rs 6 crore against Orion Capital and over Rs 4 crore
against Orion Broking.
Bank Of India slashes interest to 3.5% for deposits up to Rs 50 lakh
Public lender Bank of India has reduced interest rate on savings bank accounts by 50 basis points
to 3.5 per cent on deposits of up to Rs 50 lakh.
However, the bank will continue to pay 4 per cent interest on deposits of above Rs 50 lakh.
On July 31, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5 per
cent on balance of Rs 1 crore and below. Other lenders, including private ones such as HDFC Bank
and Axis bank, have followed suit.
Earlier this month, Axis Bank had reduced interest rate on savings bank accounts by 50 basis
points to 3.5 per cent for deposits up to Rs 50 lakh.
Another PSU lender, Bank of Baroda had slashed the rate to 3.5 per cent on deposits of up to Rs
50 lakh. Karnataka Bank too has tweaked the rate on savings bank accounts.
Central Bank of India, Dena Bank cut savings interest rates
Central Bank of India and Dena Bank on Monday reduced interest rates on savings accounts.
While both banks reduced the rate by 50 basis points (bps) to 3.5 per cent per annum, the cuts
apply to different buckets. At Central Bank, the cut will apply to savings accounts with balances of
up to Rs 50 lakh. Accounts with higher balances will continue to earn 4 per cent. Dena Bank has
reduced the rate on accounts with balances of up to Rs 25 lakh. For balances of above Rs 25 lakh,
the rate remains unchanged at 4 per cent.
ICICI Bank cut interest rate on savings account by 0.5%
Private sector lender ICICI Bank today announced to reduce interest rate on savings accounts by
50 basis points to 3.5 per cent on deposits below Rs 50 lakh.
The interest rate on savings bank accounts with deposits of Rs 50 lakh and above remains
unchanged at 4 per cent.
HDFC Bank cuts rates on certain savings accounts
HDFC Bank Ltd cut interest rates on most of its savings accounts to 3.5 per cent from 4 per cent.
Customers with savings bank account balance of 5 million rupees ($77,924.10) and above will
continue to earn interest at 4 percent per annum.
Yes Bank cuts savings account interest rate by up to 1%
Private sector lender Yes Bank reduced the interest rate on savings bank accounts by 1 per cent
to 5 per cent for deposits of less than Rs 1 lakh.
However, the bank will continue to pay 6 per cent interest on deposits of over Rs 1 lakh and less
than Rs 1 crore.
The bank has also slashed interest rate on savings accounts to 6.25 per cent from existing 6.5 per
cent for deposits over Rs 1 crore.