Viral Acharya Appointed RBI Deputy Governor
- The government has appointed Viral V Acharya as one of the central bank’s four deputy governors for a term of three years.
- He has research interests in regulation of banks, corporate finance, credit risk and teaches at the Stern School of Business in New York university
Union Cabinet approves ordinance related to demonetisation of old 500 and 1000 rupee notes.
- With the Prime Minister Narendra approval to an ordinance relating to demonetised 500 and 1000 rupee notes, after 31st March 2017, possession of the demonetised notes beyond a specified amount to attract a monetary fine.
- Currency notes across the world carry their Central Banks' promise to pay the bearer the amount of the value of the note but Reserve Bank of India will not be bound by that pledge anymore with the Union Cabinet headed by
- The ordinance proposes to end the liability of the govt and RBI on the demonetised high denomination notes after 31st March.
- The Specified Bank Notes Cessation of Liabilities Ordinance makes holding of old 1,000 and 500 rupee notes post 31st March beyond a threshold amount an offence that will attract a monetary fine.
- In 1978, a similar Ordinance was issued to end the government's liability after Rs 1,000, Rs 5,000 and Rs 10,000 notes were demonetised by the Morarji Desai-led government.
SBI adopts village of Maharashtra for Aadhaar-based payments
- The State Bank of India (SBI) has adopted Shirki village in Pen taluka in Maharashtra for driving the Aadhaar-based merchant payment initiative under which merchant is required to have a bank account with an Aadhaar number needed.
- Under the initiative, the merchants in the village have been provided with simple android phones with a USB-based fingerprint capture device.
First Case Under the Bankruptcy Code
- ICICI Bank Ltd has filed an application in the National Company Law Tribunal (NCLT) against Pune-based steel products Innoventive Industries Ltd to initiate a corporate insolvency process under the new bankruptcy law.
- This is the first case in India filed under the Insolvency and Bankruptcy Code, 2016.
- The Pune-based steel products maker had debt of Rs955 crore at the end of September.
Households Own 61.5% of Bank Deposits
- The RBI has said households owned the majority of deposits, 61.5% of the total bank deposits of Rs 98,41,290 crore.
- The government sector and the private corporate sector followed contributing 12.8 per cent and 10.8 per cent, respectively.
- A majority (63.8 per cent) of the deposits was term deposits and combined share of current and savings deposits increased to 36.2 per cent in 2016.
KVG Bank Launches Bank Sakhi Scheme
- The Karnataka Vikas Grameen Bank (KVGB) has come out with an innovative method of employing women in villages to promote and popularize cashless transaction.
- The bank launched a scheme named ‘Bank Sakhi’ at a programme.
- Under the initiative, the bank will appoint women business correspondents called “Bank Sakhi” in select villages where this scheme would be implemented.
Allahabad Bank Merges AllBank Finance
- Allahabad Bank said it has merged its wholly-owned subsidiary AllBank Finance with itself.
- The merger was okayed at the Board of Directors meeting of the bank.
- AllBank Finance is the merchant banking arm of Allahabad Bank & also holds licence for debenture trusteeship.
- BFL offers various merchant banking services such as IPO management, debt/loan syndication, investment advisory.
RGA Gets Final Nod from IRDAI
- The Insurance Regulatory and Development Authority of India (IRDAI) has granted a Certificate of Registration to the Reinsurance Group of America (RGA) to set up a branch in India.
- IRDAI has approved the R3 license to the re-insurer.
- RGA has been operating in India since 2001 as a foreign reinsurer and is globally strong in actuarial, underwriting & product development segments.
IDFC Bank Unveils Aadhaar Pay
- IDFC Bank has announced the nation-wide launch of aadhaar-linked cashless merchant solution.
- Aadhaar Pay, launched by the govt has been developed by IDFC Bank in association with UIDAI and the National Payments Corporation of India (NPCI).
- Aadhaar Pay will enable millions of merchants across the country to facilitate cashless purchases for customers in a cost effective and scalable way.
RBI Imposes Penalty on 5 Foreign Banks
- RBI imposed monetry penalty on five authorised dealer banks for violation of norms by 10,000 each has been imposed on Bank of America, Bank of Tokyo Mitsubishi, The Royal Bank of Scotland, Standard Chartered Bank and Rs.20k to the Deutsche Bank.
- Reserve Bank India came to the conclusion that the violations were substantiated and warranted imposition of penalty only.