The World of Finance: Week of November 24th to November 30th 2014

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India: RBI

  • RBI released the final guidelines for licensing of Payments and Small Banks.
  • According to RBI’s guidelines, Payments Banks can open small savings accounts and accept deposits of up to Rs.1 lakh per individual customer, and provide remittance services. These banks are allowed to issue ATM or debit cards but are not allowed to issue credit cards or lend in any form
  • RBI’s final rules on Payments Banks prohibit telecom operators from leveraging their nationwide retailer networks and channels if they enter the new business
  • RBI can give banks more flexibility to restructure distressed loans in a bid to steer funding towards cash-strapped infrastructure projects

India: SEBI

  • SEBI fined Rs. 1 crore to six investment banks SBI, ICICI, Kotak Mahindra, IDBI, DSP Merrill Lynch and Edelweiss for suppressing key information while selling the maiden equity issue of credit rating agency CARE
  • SEBI has allowed as many as 123 entities to set up Alternative Investment Funds

India: Finance Ministry

  • Mauritius is again emerging as the largest source of foreign direct investment (FDI) in India, accounting for an inflow of $ 4.19 Bn in the April-September period
  • Jayant Sinha, Minister of State for Finance said in Lok Sabha that the main reasons for increase in NPAs of banks are sluggishness in the domestic growth during the recent past, slowdown in recovery in the global economy, uncertainty in the global markets, delay in environmental permits
  • The government plans to raise about $14.4 Bn by reducing its stakes in state-run banks to 52%
  • Government raises account opening target to 10 crore by 26 Jan under PMJDY. 7.64 crore bank accounts have been already opened under PMJDY till November 18

India: Banking Development

  • Anywhere, anytime bill payment — currently available to only a section of Indians with access to net banking and that, too, restricted to a handful of utilities — will soon be available for all citizens for all utilities under the Bharat Bill Payment System (BBPS)
  • RBI Governor Raghuram Rajan lauded SBI’s next generation banking initiative INTOUCH which offers multiple services like instant account opening, instant issuance of debit card, live interaction with experts, opportunity to buy financial products among others, under one roof

India: Banking Expansion

  • Bhartiya Mahila Bank eyes Rs 1,000-crore deposits, Rs 800-crore loan book by March-end. At present, the bank’s deposit stands at over Rs 300 crore and loans at Rs 500 crore
  • Non-performing assets (NPA) of public sector banks rose sharply to 5.33 % of total advances in September 2014
  • Pradhan Mantri Jan-Dhan Yojana can double ATM network in 2 years
  • Bank credit growth rises 11% to Rs 62,52,937 crore

India: General banking

  • A panel headed by RBI Governor Raghuram Rajan has shortlisted 10 Executive Directors for the post of CMD in eight public sector banks
  • Crisil says that telecom companies are best suited to start payment banks due to their high user base and strong distribution network
  • The Australia and New Zealand Banking Group (ANZ Bank) appointed Sanjeev Bajaj as Chief Executive Officer of its India franchise in place of Subhas DeGamia who has been elevated to a global role
  • SBI will launch an Islamic equity fund next month aimed mainly at attracting investments from the country’s 170 million Muslims
  • Govt banks get autonomy to appoint auditor

India: Frauds

  • The Enforcement Directorate has registered case against officials from Dena Bank, Oriental Bank of Commerce, Bank of India, Vijaya Bank and UCO Bank under the Prevention of Money Laundering Act (PMLA). ED has alleged that these officials misused cash credit facilities and laundered the proceeds to Dubai via Hawala route

India: They said it

  • Pranab Mukherjee, President, India: India will soon attain an 8-9% annual growth rate and become a $3-trillion economy
  • Raghuram Rajan, RBI Governor: The amount written off by banks as bad debts in the last five years would have been enough to fund the education of 15 lakh of the poorest children in the top private universities of the country, all expenses paid. only Rs 30,590 crore of bad debt was recovered by banks through the debt recovery tribunals in FY14 from the Rs 2,36,600 crore claimed even as cases keep piling up
  • Uday Kotak, Chief of Kotak Mahindra bank: Consolidation key for Indian banking industry’s growth and to meet financing needs of the country
  • KV Kamath, ICICI Bank Chairman: The RBI’s new norms for payments banks and small finance banks are a positive step
  • Pramit Jhaveri , CEO, Citi India: Many global multinational clients of Citibank have evinced interest in having a larger footprint in India and to invest more here, which gives it a significant opportunity to participate in the Government’s Make in India programme

India: Forex reserve

  • India’s foreign exchange reserves fell by $672.4 Mn to $314.87 Bn for the week ended Nov 21

International:

  • The Philippine government has mandated Deutsche Bank and HSBC as joint global coordinators for an offshore offering of US dollar bonds
  • Eurozone banks’ corporate lending faces nine-year stagnation

The World of Finance: Week of November 10th to November 16th 2014

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India: RBI

  • RBI will allow small banks to have a pan-India presence, against earlier proposal of limiting the presence in only a few districts
  • RBI tightens norms for NBFCs by raising the capital adequacy requirement and the net owned fund limit

India: SEBI

  • SEBI to amend guidelines for willful defaulters on November 19
  • To make delisting easier and faster, SEBI will soon announce a new set of regulations wherein time required to complete such an exercise may be more than halved from a minimum of 137 days at present

India: Finance Ministry

  • Finance Ministry Review Meeting With Chiefs of PSU Banks on November 20
  • Finance Ministry may tighten gold import norms

India: Banking Development

  • Karnataka Bank launches national wide CASA campaign
  • The Andhra Bank launched two schemes to encourage saving among children from an early age

India: Banking Expansion

  • HDFC Bank gets FIPB approval to raise foreign investment to 74%
  • Bhartiya Mahila Bank opens its second branch in Vadodara, Gujarat

India: General banking

  • Kerala and Goa have become the first states in the country to provide one basic bank account to every household under the Pradhan Mantri Jan Dhan Yojana (PMJDY) in two-and-a-half months of its launch
  • Bombay Stock Exchange and the National Stock Exchange are looking to set up small banks in the country
  • India Post says keen to become a universal bank
  • Corporation bank receives Indira Gandhi official language awards from the President
  • Uber shifts to mobile wallet for payments following RBI norms

India: They said it

  • Raghuram Rajan to micro lenders: Don’t make a fortune out of the poor
  • Jayant Sinha, Minister of State for Finance, India: Land ‘sacrifice’ necessary for industries, job creation
  • Jayant Sinha, Minister of State for Finance, India: Attitude of Jharkhand banks to Jan Dhan not satisfactory

India: Forex reserve

  • India’s foreign exchange reserves fell by $778.4 Mn to $315.13 Bn for the week ended Nov 7

International:

  • South Africa and China push for fast ratification of BRICS bank
  • PM Modi wants proposed BRICS Bank to be ready by 2016

The World of Finance: Week of November 03rd to November 09th 2014

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India: RBI

  • RBI prescribes measures for banks to prevent cheque frauds. Makes SMS alerts for cheques mandatory
  • RBI cautioned the Indian corporate sector against increasing leveraging of their balance sheet, failure to hedge foreign currency debt and intra-day trade

India: SEBI

  • SEBI has proposed that bank funding to listed small and medium enterprises (SMEs) be given a priority lending tag
  • SEBI mulls performance-based fees for MFs

India: Finance Ministry

  • Jayant Sinha took charge as Minister of State in the Finance Ministry
  • FinMin asks RBI to ease infra funding norms
  • Hasmukh Adhia took charge as Financial Services Secretary, replacing G S Sandhu

India: Banking Development

  • Pradhan Mantri Jan Dhan Yojana: Banks to do ward-wise survey to gauge extent of exclusion

India: Banking Expansion

  • Ratnakar Bank (RBL) plans to raise funds through an initial public offer which will hit the market in the next 8-9 months
  • Axis Bank has signed a pact with NongHyup Bank (NH Bank) to enhance cooperation in treasury, trade and other business between India and South Korea
  • Syndicate Bank is planning to open 300 more branches and 27 mid-corporate branches during the current financial year
  • Corp Bank to raise Rs 1,500 cr capital via Basel llI bonds in Q3

India: General banking

  • Axis and HDFC Bank to charge their own customers beyond 5 ATM transactions
  • Central Bank of India turns around to report net profit of Rs 103 crore
  • Standard & Poor’s lowered credit rating of Indian Overseas Bank (IOB) to BB+
  • ‘Make in India’ push: Union Bank cuts rates for MSMEs
  • SBI says that associate banks don’t need capital

India: Frauds

  • The Punjab Commission for Non-Resident Indians (NRIs) has issued notice to the HDFC Bank after a Britain-based NRI alleged that an amount of Rs.70 lakh was siphoned off from his account allegedly by an official of the bank

India: They said it

  • Narendra Modi, PM, India: Jan Dhan Yojana needed as banking benefits did not reach poor
  • KC Chakrabarty, former deputy governor of RBI: India offers more banking licences to foreign banks than local players
  • R. Gandhi, Deputy Governor of RBI: India’s central bank has asked the government to adopt a key panel’s suggestions on restructuring bank boards, but in a phased manner
  • HR Khan, Deputy Governor of RBI: Recent fall in inflation does not mean decline is permanent

India: Forex reserve

  • India`s foreign exchange reserves grew by $1.73 Bn to $315.91 Bn for the week ended Oct 31

International:

  • Sri Lanka supported setting up of a SAARC       Development Bank for meeting infrastructure funding needs of countries in the region at low cost
  • The central banks of China and Canada have agreed to a currency swap worth 200 Bn yuan ($32.67 Bn) or C$30 Bn

The World of Finance: Week of October 27th to November 02nd 2014

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India: RBI

  • RBI on Fed taper: India will need domestic funding for infra
  • RBI allows banks to appoint NBFCs as Business Correspondents
  • RBI auction awaited for launching new inflation indexed bond funds
  • RBI Asks Rural Banks to Partially Freeze KYC Non-Compliant Accounts
  • RBI lifts curbs on share purchase of ING Vysya Bank by FIIs
  • RBI Allows Urban Cooperative Banks to Act as PAN Service Agents

India: SEBI

  • SEBI notifies new ESOP regulations
  • SEBI to frame rules against insider trading

India: Finance Ministry

  • Finance Ministry to seek additional Rs 10,000 crore fund for PSBs
  • Finance Ministry takes austerity measures to cut fiscal deficit to 4.1%

India: Banking Development

  • ICICI Bank and Axis Bank announced partnership with the Ministry of Road Transport & Highways, NHAI) and Indian Highways Management Company Limited (IHMCL) for the launch of the Electronic Toll Collection (ETC) programme on the National Highway 8. This service enables motorists to pay tolls electronically without stopping at the toll plazas
  • A scheme offering loans at concessional rate of interest to women entrepreneurs and a home loan for people belonging to the economically weaker section (EWS) have been launched by Syndicate Bank

India: Banking Expansion

  • Infrastructure Development Finance Company Ltd (IDFC) informed stock exchanges that it received the board’s approval to demerge its financial undertaking into a wholly-owned step-down subsidiary IDFC Bank Ltd
  • Vijaya Bank raises Rs 500 cr through bonds

India: General banking

  • Leading banks, including ICICI Bank, HDFC Bank and Axis Bank, are continuing to offer free withdrawals from ATMs and five withdrawals at non-home bank ATMs even after the circular allowing them to restrict transactions comes into effect
  • Robbers Dig Tunnel to Steal Crores From A branch of PNB in Haryana
  • The Supreme Court has set an end-March deadline for the investigation that is meant to determine which Indians have hidden untaxed money abroad
  • Bank unions to go on strike on Nov 12 seeking wage revision
  • Govt modifies selection process for public bank heads
  • Appointment of 8 PSU Bank Heads Likely by November-End
  • Shailendra Bhandari to step down as ING Vysya Bank CEO; Uday Sareen to take over

India: Frauds

  • In Delhi, Five men have been arrested here for allegedly duping a bank of nearly Rs 33 crore by taking loan from it against spurious gold in connivance with some of its officials

India: They said it

  • GS Sandhu, Secretary, Financial Services: According to an RBI survey of the impact of Jan Dhan Yojana in 10 districts, it was found that around 68 percent first timers opened their accounts under the scheme
  • Usha Ananthasubramanian, CMD, Bharatiya Mahila Bank: Bharatiya Mahila Bank Ltd is launching several women-centric products in particular to encourage women entrepreneurs

India: Forex reserve

  • India forex reserves up USD 495.5 Mn to USD 314.77 Bn

International:

  • India along with 20 other countries on 23 October 2014 signed an agreement to become the founding member of the China-backed Asian Infrastructure Investment Bank (AIIB)

The World of Finance: Week of October 20th to October 26th 2014

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India: RBI

  • RBI to Banks: Partially Freeze KYC Non-Compliant Accounts
  • RBI eased some rules for identifying defaulters and taking corrective actions since banks found it impossible to comply with the strict norms
  • RBI warns companies for their lack of hedging
  • RBI has finalized organizational restructuring of the RBI by reassigning responsibilities of deputy governors under four new clusters
  • The RBI is running a pilot project with a group of private payment gateway operators like Oxigen and Airtel Money to facilitate money transfers without the intervention of a bank

India: SEBI

  • SEBI revises proprietary open position for non-bank brokers
  • SEBI to empanel administrators to look after refund process
  • SEBI said stock exchanges can waive penalty on stock brokers in cases related to modification of client codes for non-institutional trades. non-institutional trades, limited to only once in a quarter

India: Finance Ministry

  • The Government will likely disclose to the Supreme Court next week names of people against whom strong evidence exists of stashing away black money in Swiss banks
  • Indian Government had no outstanding Loans from RBI in Oct 17 Week
  • Finance ministry has cleared 20 small ticket FDI proposals which will lead to inflow of Rs 988 crore into the country
  • Finance Ministry: Insurance Bill to be taken up in Winter Session

India: Banking Development

  • Employees’ Provident Fund Organization (EPFO) has started a new facility to transfer provident funds of foreign employees to bank accounts in their own countries

India: Banking Expansion

  • IDBI Bank raises Rs 2,500 crore via Basel III compliant AT-I bonds
  • Syndicate Bank celebrated its 89th Foundation Day on Monday, October 20, by opening 18 new branches in Telangana and Andhra Pradesh
  • Yes Bank raises $422 Mn by dual currency loan facility

India: General banking

  • Bank of India appoints three directors 1. Shri. Neeraj Bhatia 2. Shri. D Harish 3. Shri. Sanjiv Kumar

India: Frauds

  • In Mumbai, A lawyer received a call from a customer service representative seeking to verify his credit card details to upgrade it with the latest security features and four days later, Rs 5,000 had been debited from his bank account using his card to make a mobile bill payment

India: They said it

  • Arun Jaitley, Finance Minister, India: Private companies will be allowed commercial coal mining soon
  • Arun Jaitley, Finance Minister, India: Bill to implement Goods and Services Tax in winter session
  • G S Sandhu, financial services secretary of India: increasing the FDI limit in the insurance sector may attract $5 Bn to the sector over the coming five years
  • Raghuram Rajan, RBI Governor: India has credibility in foreign markets

India: Forex reserve

  • India’s foreign exchange reserves increased by $945.6 Mn to $313.68 Bn in the week ended October 17

International:

  • A total of 25 lenders failed the European Central Bank’s (ECB’s) “stress tests”, which were billed by Brussels as “most intense scrutiny that banks have ever undergone in Europe”
  • SBI is determined to carry on retail banking operations in the UK despite a recent crackdown by the Bank of England on the operations of foreign-owned banks in the country
  • India signs up for China’s Asian Infrastructure Investment Bank

The World of Finance: Week of October 13th to October 19th 2014

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India: RBI
• RBI governor Raghuram Rajan has been conferred with the Best Central Bank Governor award for 2014 by Euromoney magazine
• Reserve Bank Launches Financial Literacy Awareness Programme
• RBI allows Repco Home Finance to raise foreign shareholding to 49%
• The Bombay High Court has issued notice to the RBI in connection with a PIL which alleges that the non-performing assets (NPA) of nationalized banks rose up from Rs 455 crore for the year ended March 2008 to Rs 9,190 crore in March 2012
• RBI: No Rs. 5,000 Denomination Note Launch
• RBI has signed a pact with Central Bank of Kenya for exchange of information and supervisory cooperation
• RBI issues caution on fake bills post FinMin alarm
India: SEBI
• To check any fraudulent use of investor accounts by brokers, SEBI plans to tighten norms for the Power of Attorney taken by them from their clients including by colour-coding such PoAs as per the risks involved in such transfer of powers
• SEBI issues guidance on one-time registration process
India: Finance Ministry
• Arvind Subramanian Named Chief Economic Adviser to Indian Finance Ministry
• The Finance Ministry has written to the RBI to consider reimposing some restrictions on gold imports
• Govt plans to catch chit funds under Rs 100 cr that escape SEBI net
• Finance ministry: Black money study reports yet to be accepted
• Finance ministry asks State Govts to be extra alert over foreigners buying immovable properties
• Finance Ministry forms bankers’ panel to progress in power projects. The panel will submit its suggestions by November 7
India: Banking Development
• Corporation Bank has launched the ‘e-Mandate’ (digital mandate) service to provide robust platform for large volume of repetitive payments
• Kotak Mahindra Bank launched a Facebook-based instant fund transfer service wherein one can send money to friends on the social media network real time, for free
• SBI has come up with new norms for ATM transactions, offering more free ATM usage for customers maintaining higher account balance
India: Banking Expansion
• Andhra Bank is targeting a business of over Rs 3 lakh crore by March 2015 and will be opening 400 more branches
• Canara Bank will raise up to Rs 850 Mn rupees (USD 13.85 Mn) through selling shares to institutional investors or a preferential issue
India: General banking
• Axis bank cuts base lending rate by 10 basis points to 10.15%
• Bank of Baroda raises deposit rate to 8.75% from 8%
• 6.02 cr bank accounts opened under Jan Dhan scheme
• India’s banks will restructure more than Rs.5,000 crore in loans disbursed to borrowers in Jammu and Kashmir, which was devastated by floods last month
• Jammu and Kashmir Bank pays Rs 128.88 crore dividend to state
• ICICI Bank chief Chanda Kochhar has been awarded honorary Doctor of Laws degree by Canada’s Carleton University for her work in the financial sector
• The Andhra Pradesh Government has opened an exclusive account with Andhra Bank for collecting donations for providing relief to those affected by cyclone
• Bank unions call for strike on 12 November over wage hike
• Karur Vysya bank won IDRBT Banking Technology Excellence award
India: Frauds
• The Thane district consumer forum has held Canara bank liable for failing to block a customer’s ATM card even after she lodged a complaint about a fraudulent transaction. The consumer forum has directed Canara Bank to reimburse Rs. 55,200 fraudulently withdrawn along with interest at 9% per annum from August 2010
India: They said it
• S Sandhu, Financial Services Secretary: The Reserve Bank will soon invite applications for issuance of licences in three categories — small banks, payment banks and universal banks — to achieve financial inclusion target
• Raghuram Rajan, RBI Governor: RBI is in talks with govt on keeping its independence
• Raghuram Rajan, RBI Governor: RBI is in discussions with the government over the country’s monetary policy framework
India: Forex reserve
• Foreign exchange reserves rose by $.1.31 Bn in the week ended October 10 to $312.74 Bn
International:
• French bank Group BPCE launches Twitter cash transfer service
• Five bank branches (HSBC Holdings, Hang Seng Bank, Citibank and Australia and New Zealand Banking Group) in Hong Kong shut due to Occupy Central disruptions
• Shanghai Cooperation Organization (SCO) Development Bank ready to finance projects in India, Iran

The World of Finance: Week of October 06th to October 12th 2014

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India: RBI

  • RBI cancels licence of Ajmer Urban Co-operative bank on insolvency
  • RBI clarified that the total number of free transactions (both financial and non-financial) at other bank ATMs would continue to remain at five a month if the transactions are carried out at both the metro centres and other locations
  • RBI to monitor trades by companies in debt markets
  • RBI: Mid, small size house price rise moderated more
  • RBI raises concern over increasing credit to realty, infrastructure sectors

India: SEBI

  • SEBI notifies one-time registration system for brokers
  • SEBI may modify colour codes for mutual funds
  • As an attempt of rationalizing expenses, SEBI asks Finance Ministry if it could deduct legal fees from penalties before remitting the amounts to the Government
  • SEBI to replace listing regulations, tighten trading rules

India: Finance Ministry

  • The Finance Ministry and the RBI are set to finalise a new monetary policy framework by the end of the year that will make the Government responsible for setting targets of retail inflation
  • The Government is in discussions with the RBI on scrutinising the practice of banks selling insurance products, commonly called Bancassurance
  • Finance Ministry refuses to reduce excise duty on branded diesel

India: Banking Development

  • Jan Dhan Yojana: new bank accounts opened exceeds 5.5 Cr mark, mobilizing deposit of INR 4,268 Cr
  • Union Territories of Chandigarh, Puducherry and the three districts of Gujarat — Porbandar, Mehsana and Gandhinagar achieve the target of “at least one bank account for each house” under Jan Dhan Yojana
  • Bank of Maharashtra has launched Doorstep Banking Service (DSBS) for Corporate/Retail Cash or Instruments

India: Banking Expansion

  • Canara Bank to raise Rs 1,500 crore for asset growth in FY15
  • Canara Bank ties with Deutsche Bank for payment solutions
  • SBI opened its first customer service point (CSP) at Tura, Meghalaya
  • Federal Bank ties up with IIFL to offer enhanced broking services

India: General banking

  • National Bank increased the interest rates by 2% on FDs of INR 1 Cr
  • World Bank keen on funding Andhra Pradesh Buddhist circuit
  • The Karnataka High Court has suggested to the authorities concerned to ensure that every construction worker in the State gets a no-frills bank account

India: Frauds

  • Based on an allegation by Golf Technologies, a Magistrate’s Court directed Delhi Police to issue notices to Axis Bank’s CEO and its top officials with regard to a fraudulent transfer of Rs19.89 crore

India: They said it

  • S S Mundra, RBI Deputy Governor: The central bank plans to announce the final norms on small and payments banks next month
  • Arvind Mayaram, Finance Secretary, India : RBI and Government Will Cooperate on Inflation

India: Forex reserve

  • India’s forex reserves down $2.75 Bn to $311.42 Bn

International:

  • U.S. and UK to test big bank collapse in joint model run
  • World Bank Group launches Global Infrastructure Facility to channel funds to emerging markets
  • Jim Yong Kim, World Bank President: Trade Facilitation Agreement (TFA) implementation problem a ‘real shame’
  • Iran and Russia are planning to establish a joint bank in an effort to multiply bilateral trade and bypass sanctions on the Islamic Republic’s banking sector
  • The International Swaps and Derivatives Association (ISDA) and 18 major banks that dominate the market will now allow financial watchdogs to apply temporary stays to prevent a rush to close derivatives contracts if a bank runs into trouble

The World of Finance: Week of September 29th to October 05th 2014

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India: RBI

  • RBI to banks:  Accept self-attested documents to open account
  • RBI: External Debt up $12.6 Bn at $346.6 Bn in Q1
  • RBI kept the repo rate unchanged at 8% and the reverse repo rate was also maintained at status quo of 7%

India: SEBI

  • Government is considering to merge Forward Markets Commission (FMC) with SEBI to better monitor futures market
  • SEBI wants to cut the timeline for Initial Public Offers (IPOs) and Follow-on Public Offers (FPO) of equity to four days

India: Finance Ministry

  • The government is stepping up efforts towards consolidation of public sector banks (PSBs). The finance ministry has sent a letter to all PSBs asking them to provide business and financial details within a month to SBI Capital Markets
  • The Finance Ministry has asked public sector banks to tighten norms, including know your customer monitoring for high-value fixed deposits (FD)
  • Finance Ministry has begun discussion with RBI on panel to set monetary policy with an inflation focus

India: Banking Development

  • ICICI bank has rolled out a new special account for the NRI customers
  • Yes Bank to offer discounts and deals at their ATMs to all customers
  • IndusInd Bank launches India’s first digital branch in Gurgaon
  • ICICI Bank hires astronauts & sportsmen to inspire its young managers
  • Standard Chartered is offering to manage Union Bank of India’s Rs 1,386-crore qualified institutional placement for a token Re 1

India: Banking Expansion

  • Doha Bank to acquire India operations of HSBC Oman

India: General banking

  • The Central Vigilance Commission (CVC) wants banks to be extra cautious while sanctioning loans, in light of the recent scandal involving alleged bribes in exchange for credit limit enhancement at Syndicate Bank – in light of the recent scandal of bribery for enhancing the credit limit at Syndicate Bank
  • PSU banks, financial regulators to get full-time chiefs in Oct 2014
  • Punjab National Bank (PNB) has decided to levy charges on all online transfer of funds, irrespective of the amount, to accounts in other banks made through National Electronic Fund Transfer (NEFT)

India: They said it

  • Raghuram Rajan, RBI Governor: RBI is in the process of redefining the definition of “wilful defaulters” so as to bring the directors of defaulting companies under its ambit
  • Raghuram Rajan, RBI Governor: RBI to re-examine foreign investment limit in govt bonds
  • GS Sandhu, Financial Services Secretary:  India Post suited to be payment bank

India: Forex reserve

  • Foreign exchange reserves fell by $1.42 Bn for the week ended September 26 to $314.18 Bn

International:

  • The World Bank has trimmed its growth forecast for developing East Asian economies this year to 6.9% and urged governments to improve conditions for investment and exports
  • India likely to join Asian infrastructure bank

 

The World of Finance: Week of September 22nd to September 28th 2014

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India: RBI

  • RBI panel outlines steps to help PSU banks manage talent better
  • RBI released the issuance calendar of Government bonds for the second half of this fiscal year

India: SEBI

  • SEBI appoints Gyan Bhushan as Chief vigilance officer
  • MCX Stock Exchange Ltd (MCX-SX) receives approval from SEBI to change its name to Metropolitan Stock Exchange of India Ltd, or mSXI
  • SEBI wants SMEs to get listed for more gains

India: Finance Ministry

  • The Finance Ministry is pushing for further easing of rules for foreign direct investment
  • The Finance Ministry has opposed a proposal to supply domestically produced coal to power plants that do not have a fuel supply agreement (FSA)

India: Banking Development

  • IDFC Bank to kick-start banking operations by Oct 1, 2015
  • SBI, ICICI allow kids to operate bank accounts
  • Banks get a push from RBI to mine social media, know customers better

India: Banking Expansion

  • FIPB to decide on HDFC Bank proposal to increase foreign investment limit
  • IDFC raised Rs 1000 Cr through qualified institutional placement (QIP) after selling 7.3 crore shares for Rs 137 each
  • Rs 1,500 crore deposited in banks under Jan Dhan Yojana
  • Already about 4  Crore new bank accounts have been opened under Jan Dhan Yojana

India: General banking

  • Board of Bank of Baroda approves  stock split of 1 equity share into five equity shares, subject to regulatory approvals
  • Bank unions plan protests from Oct 10
  • State Bank of India likely to hold the subsidiary banks’ merger plan
  • Calcutta HC stays United Bank of India’s declaration of Kingfisher Airlines as wilful defaulter
  • IDBI Bank approves raising rupee borrowing limit to Rs 15,000 crore
  • Syndicate Bank terminated its suspended CMD Sudhir Kumar Jain’s term

India: Frauds

  • The Visakhapatnam branch of CBI has registered a case against the chief manager of the Indian Bank at Narasaraopet in Guntur for allegedly entering into a criminal conspiracy with a few companies and persons to defraud the bank of Rs 10.49 lakh

India: They said it

  • Raghuram Rajan, RBI Governor: Macro indicators improving but rate cut still away
  • Raghuram Rajan, RBI Governor: Need to tackle ‘persistent’ inflation
  • Raghuram Rajan, RBI Governor: India needs “sensible” regulations to spur growth
  • RBI Deputy Governor: Discussions are going on to Join Euroclear

India: Forex reserve

  • India’s forex reserves fell by $101.3 Mn in the week ended September 19 to $315.59 Bn

International:

  • A China-led effort to launch the Asian Infrastructure Investment Bank has attracted the interest of 21 countries
  • Banks shut branches over Hong Kong protests

The World of Finance: Week of September 15th to September 21st 2014

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India: RBI

  • RBI will issue the final guidelines on universal banking licences on tap before the end of this fiscal
  • RBI cancels licence of Ajmer Urban Cooperative Bank
  • RBI: banks free to charge ATM users
  • RBI asks banks to roll out Point of sale (POS) machines for debit cards

India: SEBI

  • SEBI relaxed its proposed corporate governance norms by bringing related-party transaction norms in line with the Companies Act
  • SEBI to soon notify norms for Real Estate Investment Trusts
  • SEBI pulls up mutual funds over high commissions

India: Finance Ministry

  • Finance Ministry: Government to pay 2% commission to banks for direct benefit transfers

India: Banking Development

  • South Canara District Central Cooperative (SCDCC) Bank launched “bank-cum-ATM on wheels”
  • Axis Bank launches e-surveillance facility at ATM locations
  • Canara, HSBC, Oriental Bank of Commerce, Life Insurance launched CHOICeNET, a portal that will allow bank employees to provide end-to-end information for their customers’ life insurance policies
  • Federal Bank launches new version of e-passbook

India: Banking Expansion

  • SBI associate banks to raise Rs33, 000 crore capital in next 5 years
  • South Indian Bank plans to raise ₹500 crore via QIP
  • ICICI Bank Ltd signed a framework agreement with the Export-Import Bank of China (China Exim Bank) for $1 Bn
  • Axis Bank signs MoU with China Development Bank
  • SBI signed an agreement with China Exim Bank for a Line of Credit of $ 1.8Bn for imports of raw material, energy, equipment, mechanical and electronic products, among others from China

India: General banking

  • Banks open 4 crore accounts under Jan Dhan Yojana; mobilize Rs 3,700 crore
  • EPFO mandates firms to provide workers’ bank account numbers for easy PF transfer
  • Japan’s Mizuho Bank to open branch in Ahmedabad by mid-2015
  • State Bank of Hyderabad launches settlement scheme for NPAs
  • The Export Import Bank of India has extended a USD 62.95 Mn Line of Credit (LOC) to Republic of Senegal for a rice self-sufficiency programme

India: Frauds

  • In Vadodara, Four persons were arrested and accused for duping loan seekers in the United States (US) through tele-calling and amassed around Rs 3 crore

India: They said it

  • K Sinha, SEBI Chief: Work in progress for guidelines on wilful defaulters
  • The International Monetary Fund (IMF): RBI needs to further increase policy rates to bring down inflation on a sustained basis

India: Forex reserve

  • India’s foreign exchange (forex) reserves dipped US$ 1.62Bn to US$ 315.698 Bn in the week ended 12 September 2014

International:

  • China’s central bank is injecting a combined 500 Bn Yuan ($81.35 Bn ) of liquidity into the country’s top banks
  • G20 finance ministers agreed on allowing automatic sharing of all bank information with tax authorities at the end of each year, starting 2017