********Banking Current Affairs*********BY https://facebook/examwinner 1) The Reserve Bank of India on 14 August 2014 announced its decision to reduce the number of mandated free transactions for savings bank account holders at other bank ATMs located in six metro cities from five to three per month. This reduction would come into effect from which date? – 1 November 2014 ……………………………………………………………………… 2) The Reserve Bank of India (RBI) on 6 August 2014 issued guidelines for asset reconstruction companies (ARCs) to increase their investments in security receipts (SRs) with the objective of strengthening the asset recovery sector. What is the minimum prescribed percentage of funds that ARCs would now have to invest in SRs as directed in this RBI guideline? – 15% ……………………………………………………………………… 3) The Reserve Bank of India (RBI) presented its bi-monthly policy review on 5 August 2014. It kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0%. It also left the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0% of net demand and time liabilities (NDTL). However, which was the only major rate to be changed in this policy review? – The Statutory Liquidity Ratio (SLR) ……………………………………………………………………… 4) Indian Parliament on 12 August 2014 passed the bill to empower SEBI to act against ponzi operators and market manipulators more effectively. What is the name of this bill? – The Securities Law (Amendment) Bill, 2014 ……………………………………………………………………… 5) India’s capital market regulator SEBI cleared final guidelines for creation and listing of business trusts for key sectors of real estate and infrastructure on 10 August 2014. These guidelines have been cleared to help attract greater foreign and domestic investments into these sectors. What are the names of business trusts associated with real estate and infrastructure which would be created and listed with these SEBI guidelines? – Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) ……………………………………………………………………… 6) In order to solve the ongoing tussle between India and the WTO (World Trade Organisation), India during August 2014 suggested fixing of the base year for food subsidies on the basis of average of last three years. What is the year proposed by the WTO to be taken as the base year? – 1986-87 ……………………………………………………………………… 7) SEBI gave its approval to single registration for stock brokers during August 2014. What would be the main benefit for brokers with this approval? – Now the brokers would not need to obtain multiple certificates from SEBI for operating in the different segments of equity, equity derivatives, currency derivative and debt ……………………………………………………………………… 8) Petroleum Ministry during August 2014 accorded its in-principle approval for stake-sale in ONGC which may fetch the government about Rs. 18,000 crore to meet disinvestment target for the current fiscal. For this how much stake-sale in the company is proposed? – 5% ……………………………………………………………………… 9) Indian Railways during August 2014 launched a contact-less smart card enabling passengers to pay for reserved as well as unreserved travelling train tickets as part of a pilot project. What is the name of this smart card with lifetime validity? – ‘Go-India’ ……………………………………………………………………… 10) What is the name of the proposed airline of Tata-SIA Airlines Limited (TSAL), a joint-venture between Tata Group and Singapore International Airlines (SIA)? – ‘Vistara’ ------------------------------ 1. Reserve Bank of India reduced free usage of other bank automated teller machines (ATMs) to 3 per month from 5: Frequent withdrawal of money from ATMs will become expensive from November, with the RBI imposing a limit of 3 transactions per month from ATMs of other banks and 5 from the same bank in six metropolitan cities. Note: A customer will be required to pay a fee of up to Rs 20 for using Automated Teller Machines (ATMs) beyond the permitted numbers of transactions in Delhi, Mumbai, Chennai, Bangalore, Kolkata and Hyderabad. 2. RBI issues guidelines for NBFCs on lending against shares. Note: According to the guidelines applicable to NBFCs with asset size of Rs. 100 crore and above, the NBFCs have to maintain a loan-to-value (of shares pledged) of 50 per cent and accept only Group 1 securities as collateral for loans of a value more than Rs. 5 lakh. 3. RBI projects 5.5 % GDP growth during current fiscal. 4. RBI has notified the increase in deposit money under Public Provident Fund, PPF to 1.5 lakh rupees from 1 lakh rupees. 5. The Reserve Bank of India (RBI) issued draft guidelines for implementation of Bharat Bill Payment System (BPPS), an anytime anywhere bill payment system: The G. Padmanabhan Committee was formed by RBI to study the Feasibility of Implementation of GIRO-based Payment Systems anticipated that around 30800 million bills amounting to more than 600000 crore rupees are paid each year in 20 Indian cities. Note: i. Bharat Bill Payment System is intended for the implementation of a unified bill payment system across the country. This integrated bill payment system will comprise of two entities: i. Entity operating at Bharat Bill Payment System (BBPS) will be setting up the standards related to payments, clearance and settlement process ii. Second entity would be Bharat Bill Payment Operating Units (BBPOUs). It will be carrying out the operations in adherence to the standards fixed by BBPS iii. Authorised entities such as agents, banks, service providers, payment gateways would be the participants at the Bharat Bill Payment System. 6. Reserve Bank of India (RBI) recently issued draft guidelines for two new categories of banks—small and payments and states that these can improve financial inclusion. Note: i. The idea of payments banks was first proposed by the Nachiket Mor committee on financial inclusion. ii. The minimum paid-up capital requirement of both payments banks and small banks is Rs. 100 crore. The payments bank will have to invest in government securities with a maturity of up to one year. Important Points: i. Small banks will offer both deposits as well as loan products. ii. Payments banks will be used only for transaction purposes and for deposits. Unlike small banks, payments banks can’t lend money to people. iii. Payments Banks cannot set up subsidiaries to undertake NBFC business. iv. Hence, payments banks will offer only a limited range of products such as acceptance of demand deposits and remittance of funds. v. Those eligible to set up a small bank include resident individuals with 10 years of experience in banking and finance, companies and societies, NBFCs, microfinance institutions and local area banks. v. Of the minimum capital, the guidelines said, the promoters initial minimum contribution will be at least 40 per cent, to be locked in for a period of five years. 7. RBI tightened the Norms for asset reconstruction companies (ARC) to improve discipline and bring about transparency in the sale and purchase of bad loans. Note: Now, asset reconstruction companies (ARCs) will have to pay upfront 15 per cent of the bid value of nonperforming loans, against five per cent earlier. ii. RBI said ARCs would get up to six months to plan recoveries from the non-performing assets acquired. Currently, ARCs get about a year for this. 8. GDP growth expected to go up to 5.5% this fiscal: RBI 9. RBI canceled the Licence of The Vasavi Co-operative Urban Bank Ltd., Hyderabad 10. The Reserve Bank of India has inked a memorandum of understanding (MoU) with the Monetary Authority of Hong Kong for exchange of supervisory information. es to Jan 1, 2015
Posted on: Fri, 29 Aug 2014 08:35:35 +0000