Banking and Financial Awareness August 2018: 4th Week

IRDAI directs insurance companies to cover mental illness in policies

As per Sec 21(4) of the Mental Healthcare Act,2O17 which has come to effect from 29th May 2018, every insurer shall make provision for medical insurance for treatment of mental illness same as is available for treatment of physical illness.
As a result, all insurance companies are directed to abide by the provisions of the Mental Healthcare Act, 2017 with immediate effect.
Insurance Regulatory and Development Authority

From 8th February 2019, a new Standard Operating Procedures (SoPs) will start for cash refilling of automated teller machines (ATMs).
Over 8,000 privately-owned cash vans operate across the country and they handle over Rs. 15,000 crores daily.
Features of new SoPs

This is for preventing attacks on cash vans, cash vaults, ATM frauds and other internal frauds.
Cash loading of the ATMs or cash transportation activities will not be done

After 9 pm– in urban areas
After 6 pm– in rural areas
Before 9 am or after 4 pm– in districts notified by the central government as Left Wing Extremism affected areas or Naxal-hit areas

On private agencies handling these operations to collect money from banks in the first half of the day and transport them in armoured vehicles and Every cash van should have one driver, two armed security guards, two ATM officers/ custodians.
Cash transportation should be performed only in secured cash vans equipped with GPS tracking device and those vans should not carry cash more than Rs 50 million per trip.
Cash vans should be equipped with- small CCTV system with a minimum of 5 days of recording facility and 3 cameras installed in front, rear and inside of the cabin; a security alarm with GSM-based auto-dialer with a motorised siren; hooter, fire extinguishers and emergency lights.

It is an online electronic institutional mechanism for facilitating the capitalization of trade receivables of micro, small and medium enterprises (MSME).
This is the first PSU to transact on TReDS across platforms. The transaction was financed by Bank of Baroda and since stands settled.
Government mandated all major PSUs to join TReDS platform, last year for facilitating payments to MSME vendors.
RXIL: -

India’s first TReDS platform operating since January 2017, promoted by National Stock Exchange (NSE), Small Industries Development Bank of India (SIDBI), State Bank of India (SBI), Yes Bank and ICICI Bank.

This facility is an add-on product to the existing MSE term loans offered by the bank.
It offered to all MSEs with a turnover of Rs 50 lakh or more, at a competitive rate of interest for one year, with a credit limit between a minimum of Rs 11 lakh to a maximum of Rs 50 lakh, which can be renewed annually.
For replenishing the credit limit back to its original amount, it allows customers to pay EMI only on the utilised amount and repay the amount at any time during the tenure.
Ujjivan SFB also offers composite loans, where the overdraft facility can be combined with existing MSE term loan products.
Ujjivan Small Finance Bank:

Offers ready-to-use services to automate workflow, easy to integrate payments, messaging and customer engagement without the trouble of managing hardware and software.
It offers affordable, ready-to-use apps, easy-to-access computing services, pattern recognition technology, pre-trained models and predictive computation to businesses.
Paytm: