Banking and Financial Awareness June 2019: Week IV

Indiabulls Housing Finance-Lakshmi Vilas Bank merger gets CCI

The Competition Commission of India (CCI) has approved the merger of Indiabulls Housing Finance and Lakshmi Vilas Bank.
It is a share swap deal with an intent to create a combined entity with a larger capital base and wider geographical reach.
After the merger, Indiabulls Housing Finance will get access to low cost deposits.
The objectives of CCI is to prevent activities that have an adverse effect on competition in India.

The National Company Law Tribunal on June 10th, 2019 approved the Scheme of Arrangement among BFIL, IndusInd Bank and Induslnd Financial Inclusion and their respective shareholders and creditors.
It has its headquarters in Mumbai.
The CEO of IndusInd bank is Romesh Sobti.
Bharat Financial Inclusion Limited (BFIL) is a non-banking finance company, licensed by the Reserve Bank of India.
It was founded in 1998 and its founder is Vikram Akula.

The Reserve Bank of India (RBI) has launched a Complaint Management System (CMS) on its website for facilitating RBI's grievance redressal process.
It is a software application launched by RBI for lodging complaints against any regulated entity with public interfaces such as Commercial Banks, Urban Cooperative Banks (UCBs) and Non-Banking Financial Companies (NBFCs).
CMS is needed for maintaining trust and sustaining the confidence of consumers in the banking system and other financial service providers (FSPs), prompt and effective grievance redressal mechanism together with customers' empowerment through education.
Keeping convenience of customers in mind, RBI has designed CMS in a way to enable online filing of complaints.
The application has the feature of keeping complainants fully informed via auto-generated acknowledgements and enabling them to track the status of their complaints as well as to file appeals online against the decisions of the Ombudsman, where applicable.

The eight-member committee under former Sebi chairman U.K. Sinha will examine the factors affecting the timely and adequate availability of finance to the MSME sector
Rs.5000 crore Stressed Asset Fund for MSME

A Reserve Bank of India (RBI) committee headed by UK Sinha suggested Rs.5,000 crore stressed asset fund for micro, small and medium enterprises (MSMEs) in a relief to businesses hut by demonetization and GST.

U K Sinha committee on micro, small and medium enterprises (MSMEs) has proposed doubling the limit on collateral-free loans to Rs 20 lakh from the current level of Rs 10 lakh to boost the fund requirement of the MSME sector.