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Banking and Financial Awareness November 2018: 2nd week

Published on Monday, November 12, 2018
Banking and Financial Awareness November: 2nd week

RBI permit banks to support NBFCs raising money

  • Banks are allowed to provide partial credit enhancement (PCE) to bonds issued by the systemically important non-deposit taking non-banking financial companies (NBFC-ND-SIs) which are registered with the RBI and housing finance companies (HFCs).
  • For enhancing the credit rating of the bonds and enabling the NBFCs to access funds from the bond market on better terms. 
  • Tenure of these bonds shall not be less than three years. 
  • As per RBI, a bank can provide credit enhancements to the tune of 20 per cent of the bond size, for entities rated BBB or better. 
  • For a single borrower, the exposure of a bank should be restricted to 1 percent of its capital funds or net worth. 
  • Reserve Bank of India 
    • Governor: Urjit Patel 
    • Headquarters: Mumbai 

ICICI Bank launched co-branded credit card with Amazon pay

  • For offering extra reward points for Amazon Prime users. 
  • Also, it helps to expand the credit card customer base for the bank. 
  • This is the first card in the country to enable Amazon Prime members to earn 5 percent reward points on shopping on Amazon. 
  • New credit card product is known as the Amazon Pay ICICI Bank Credit Card. 
  • ICICI Bank: 
    • Headquarters: Mumbai. 
    • MD & CEO: Sandeep Bakshi. 
    • Tagline: Hum Hain Na 
    • Founded - July 5, 1994 
    • Founder - Jeff Bezos 
    • Headquarter - Seattle, Washington, U.S. 

Digital Public Credit Registry (PCR) to be set up by RBI to capture details of all borrowers

  • To capture details of all borrowers, including wilful defaulters and also the pending legal suits in order to check financial misconduct. 
  • It also include data from entities like 
    • market regulator Sebi, 
    • the corporate affairs ministry, 
    • Goods and Service Tax Network (GSTN) 
    • the Insolvency and Bankruptcy Board of India (IBBI). 
  • For this purpose, RBI has invited expression of interest (EOI) for developing PSC with Rs 100 crore turnover in the last three years. 
  • Decision was taken based on recommendation of YM Deosthalee committee which was constituted by RBI to review current availability of information on credit, adequacy of existing information utilities, and identify gaps that could be filled by PCR. 

Reserve Bank ease norms governing external commercial borrowings for infrastructure creation

  • The minimum tenor for borrowing through the ECB route to 3 years from 5 years. 
  • Tenure required for exemption from mandatory hedging is cut to five years from ten years. 
  • This move will help to facilitate infra companies to raise resources overseas. 

Reserve Bank of India plans on setting up payments ombudsman

  • To establish an ombudsman for digital payments by March. 
  • To minimize the load of the increasing number of complaints currently being handled by the banking ombudsman 

Paytm tied up with 2 govt depts in Karnataka for better payment experience 

  • It has partnered with 
    • the Directorate of Electronic Delivery of Citizen Services (EDCS) 
    • DPAR (Department of Personnel and Administrative Service). 
  • It would extend a cashback of 10 per cent for upto a maximum of Rs 20 per user on a minimum transaction amount of Rs 200 for payments. 
  • Two government departments had set up BengaluruOne centres in Bengaluru and KarnatakaOne centres. 

World Bank, Centre and Andhra govt signed an MOU to $172 million loan 

  • To enhance agricultural productivity, profitability, and climate resilience of poor and marginalised farmers. 
  • Project will benefit over 200,000 families of poor and marginalised farmers, agro-entrepreneurs, women and other vulnerable groups. 
  • $172.20 million loan has a 6-year grace period, and a maturity of24 years, from the International Bank for Reconstruction and Development (IBRD). 
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