The World of Finance: Week of August 18th to August 24th 2014

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India: RBI

  • RBI notifies increased PPF deposit limit of Rs 1.5 lakh per year
  • RBI came out with a new regime for liquidity management to keep overnight rates close to the repo rate and entice banks to do more efficient liquidity management
  • RBI issued the draft of a charter comprising five basic customer rights – fair treatment, transparency, suitability, privacy, grievance redress and compensation
  • RBI prescribes tighter norms for NBFCs to lend against shares
  • RBI asks Uber to follow two-step card verification
  • RBI says that about 36% of the overall 4.1% bad assets in the system have been created by six sectors of the economy – infrastructure, metals, textiles, chemicals, engineering and mining

India: SEBI

  • SEBI is contemplating further alignment of its listing agreement format with the provisions of the new Companies Act for adopting best corporate governance practices and to make the corporate governance framework more effective
  • SEBI has in place a robust system for information sharing and coordination with foreign regulators to nab manipulators and fraudsters operating across boundaries

India: Finance Ministry

  • A forensic audit has been ordered by the Finance Ministry on Dena Bank and Oriental Bank of Commerce (OBC) following reports of misappropriation of funds to the tune of Rs.436 crore from fixed deposits received from customers
  • Finance Ministry has asked government departments to control use of paper and promote electronic communication
  • Finance ministry: India’s economy is on course to grow by around 5.8 percent in the fiscal year to March 2015

India: Banking Development

  • ICICI Bank, the country’s largest private sector bank, announced the launch of EMI (Equated Monthly Instalments) facility on debit cards to enable its customers to convert high value transactions into easy instalments

India: Banking Expansion

  • ICICI Bank plans to add more than 1.5 Mn accounts in FY15
  • Axis Bank to raise Rs 6,000 crore through bonds
  • Karur Vysya Bank raises Rs 625 crore through QIP

India: General banking

  • Corporation Bank has allegedly overlooked the Union finance ministry guidelines while nominating candidates for election of shareholders for its board
  • HDFC Bank launches ForexPlus card for Haj and Umrah pilgrims
  • United Bank of India (UBI), has set up a centralised retail hub at its headquarters in the city, for faster processing and clearance of retail loans
  • Canara Bank has kickstarted a mega savings bank (SB) account opening campaign in all its 5,182 branches across the country
  • HDFC Bank has sent a fresh petition to government on raising its foreign investment limit up to 74 percent

India: They said it

  • Arun Jaitley, Finance Minister: India to tighten up banking risk management

India: Frauds

  • Police have detected a gold loan fraud of nearly Rs 1.5 crore in Santragachi Co-operative Bank in which the bank supervisor and gold valuer were the alleged kingpins
  • A local court has directed the police to lodge an FIR against ICICI Bank CEO Chanda Kochhar and head of card operations Vinay Valse in connection with allegations of cheating and fraud over online shopping through credit card

India: Forex reserve

  • Forex reserves rise by USD 43.3 Mn to USD 319.39 Mn

International:

  • Bank of America will pay a $16.65 Bn fine to settle allegations that it knowingly sold toxic mortgages to investors.