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Banking and Financial Awareness Digest: August 2022

Published on Thursday, September 08, 2022

CCI cleared deal between Bandhan Fin holdings-led consortium and IDFC

  • Competition Commission of India (CCI) approved a Rs 4,500 crore deal in which Bandhan Financial Holdings-led consortium will buy stakes in IDFC Asset Management and IDFC AMC trustee.
  • The consortium consists of Chrys capitals and Singapore's sovereign fund GIC. The proposal includes the acquisition of a 99.69 percent stake in IDFC Asset Management Company Ltd and a 100 percent stake in IDFC AMC Trustee Company Ltd.
  • Bandhan Financial Holdings ltd, Lathe Investment Pte. Ltd, Tangerine Investment ltd, and Infinity Partners will acquire the stakes.
  • IDFC AMC is the asset management company of IDFC mutual fund and IDFC Trustees is a trustee company of IDMF.
  • Bandhan Financial Holdings is a wholly owned subsidiary of Bandhan Financial Services Ltd and is the promoter of Bandhan bank Ltd.
  • The lathe is wholly owned by Singapore-based GIC Ventures Private Ltd. Tangerine Investments is a subsidiary of Chrys Capital Group and Infinity partners is a partnership company.

SEBI forms a 15-member FPI advisory committee

  • Securities and Exchange Board of India (SEBI) sets up a 15-member FPI advisory committee.
  • The committee will give advice on measures to facilitate ease of doing business by Foreign Portfolio Investors (FPI) in India.
  • The committee will also suggest measures to encourage FPI participation in the bond market and will give guidance to investors on issues related to investments and operations in Indian markets.
  • The committee consisting of 15 members will be chaired by K.V Subramanian, former Chief Economic Advisor to the government of India. The committee will recommend measures for simplifying FPI regulations and advise on custodian-related matters of foreign investors.

NRIs can pay bills of their families in India directly through BBPS

  • Non-Resident Indians (NRIs) can pay the bills of their families in India directly through Bharat Bill Payment System (BBPS).
  • RBI decided that NRIs can pay electricity, telephone, and other bills of their families in India through Bharat Bill Payment Systems (BBPS).
  • NRIs can soon be able to directly pay bills on BBPS, without sending money to Indian accounts and using it to pay bills.
  • BBPS is a one-stop financial framework developed by the National Payments Corporation of India (NPCI) for the payment of bills that is interoperable and accessible at any time from anywhere. It has been authorized by the Reserve Bank of India (RBI).
  • The BBPS platform will act as a facilitator for the payments between the individual utilizing the service, service providers, and those who make payments. BBPS will form a bridge between the NRIs, their families in India, and service providers.
  • BBPS has various payment options such as payment via cards (debit or credit), NEFT, UPI, or wallet. A customer complaint option has been provided to support customers regarding any grievances.

RBI imposes a penalty on eight Co-operative banks

  • Reserve Bank of India (RBI) imposes penalties on eight co-operative banks for non-compliance with various norms.
  • Fine of Rs 40 lakh has been imposed on Mehsana Urban Co-operative bank, Gujarat for non-compliance with certain provisions of Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016.
  • A penalty of Rs 7 lakh has been imposed on Indapur Urban Co-operative Bank, Indapur (Maharashtra) for non-compliance with certain provisions of exposure norms.
  • The penalty was imposed on Warud Urban Co-operative bank, Warud (Maharashtra), Jila Sahakari Kendriya Bank Mariyadit, Chhindwara (Madhya Pradesh), and Yavatmal Urban Co-operative bank, Maharashtra for non-compliance with Know-Your-Customer (KYC) norms.
  • Rajya Sahakari Bank Maryadit, Raipur, Chhattisgarh has been penalized with Rs 25 lakh for non-compliance with certain provisions of KYC norms.
  • RBI has also penalized Garha Co-operative Bank Limited, Guna (Madhya Pradesh), and Goa State Co-operative bank, Panaji.

RBI approves payment aggregator's licence to Mswipe technologies

  • Mswipe technologies get in-principle approval from the Reserve Bank of India (RBI) for a Payment Aggregator (PA) license.
  • Mswipe is a company that provides point of sales (PoS) solutions and digital payment services. A payment aggregator (PA) is a third party responsible for managing and processing a merchant's online transactions.
  • With a PA license, Mswipe can develop an in-house online payment gateway, moving away from outsourcing transaction settlements.
  • Mswipe will now expand its business and reach out to more MSMEs by offering those PoS terminals, QR-code payments, boombox (payment soundbox), payment gateway, and lending solutions.
  • RBI has already granted in-principle approval for PA license to Razorpay, Pine Labs, Stripe, 1Pay, and Innoviti Payments. RBI last month has allowed another window for PAs existing as of March 2020 to apply for licences. PA should have a minimum net worth of Rs 15 cr as of March 31, 2022, and can apply for a licence by September 30, 2022.
  • RBI in 2020 issued guidelines that only those firms approved by RBI could acquire and offer payment services. Banks do not need separate approval but nonbank entities offering payment aggregator services have to apply for authentication.
This digest is not complete. Read the complete digest on the Financial Awareness Course. 
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