Payment Banks and Small Finance Bank

Payment Banks and Small Finance Bank

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SMALL FINANCE BANKS

  1. They cater to deposits and loans particularly in small areas.
  2. They are meant for financial inclusion of small farmers, MSMEs, and the unorganized sector.
  3. MFI, NBFC can convert themselves to differentiated small banks if a license is allotted to them.
  4. 25% rural branching.
  5. 50% loans to MSME.
  6. Priority Sector Lending of 40% applies that they need to comply within 3 years of their licensing.
  7. Cooperative bank can’t apply for license of small banks.
  8. NRI can apply for licenses.
  9. Cluster preference for licensing would be for North East.
  10. They can’t setup subsidiaries.
  11. They can appoint Business Correspondent Agents but cannot become Business Correspondent Agents of other banks.

PAYMENT BANKS

  1. Only current and savings account ratio, net banking and debit cards or prepaid cards are allowed.
  2. FD/Loan is not allowed so the source of their earning would be to invest in Government Securities where they would get an annual interest of around 8%.
  3. Max balance of Rs.1lakh/customer is allowed.

Similarities

  1. Minimum Capital required is 100 crore. (Regular bank license requires 500 Crore).
  2. FDI limits, voting rights are similar to regular commercial banks like SBI, PNB, Bank of Baroda, ICICI etc.

Differences

  1. Small banks can accept all types of deposits like a commercial bank ( savings, current, fixed deposits, recurring deposits etc).On the other hand Payment banks can take deposits only on current & savings account. These cannot offer credit cards, NRI account, & time deposits (FD& RD).
  2. Small banks cannot give depositors money as loan to others (big industries), but for small area of operation.    Payment banks cannot give loans but can invest in G securities(as most of the depositors are poor people. so, banks cannot take a risk).
  3. For small banks, any individual with 10 years of experience in banking can apply for licenses. For payment banks Indian post, telecom companies can apply for licenses.  
  4. Target for small banks are MSME's, business man. Target for Payment banks are poor people.

List of Reports Published by Different Organizations

List of Reports Published by Different Organizations

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Name of Reports                                                           Published by
1. World Economic Outlook International Monetary Fund (IMF)
2. Global Financial Stability Report International Monetary Fund (IMF)
3. Ease of Doing Business World Bank
4. World Development Report World Bank
5. Global Economic Prospects World Bank
6. Financial Stability Report Reserve Bank of India (RBI)
7. Monetary Policy (India) Reserve Bank of India (RBI)
8. Handbook of Statistics on Indian Economy Reserve Bank of India (RBI)
9. Quarterly Statistics on Deposits & Credit of Scheduled Commercial Banks in India Reserve Bank of India (RBI)
10. Report on Trend and Progress of Banking in India Reserve Bank of India (RBI)
11. Asian Development Outlook Asian Development bank
12. Inclusive growth & Development Report World Economic Forum
13. Engaging Tomorrow Consumer Report World Economic Forum
14. Environmental Performance Index World Economic Forum
15. Global Competitive Index World Economic Forum
16. Global Energy Architecture Performance Index Report World Economic Forum
17. Global Gender Gap Report World Economic Forum
18. Global Information Technology Report World Economic Forum
19. Human Capital Report World Economic Forum
20. Inclusive growth & Development report World Economic Forum
21. Outlook on Global Agenda World Economic Forum
22. The Global Risk Report World Economic Forum
23. Human Development Index United Nations Development Programme (UNDP)
24. Sustainable development Goals United Nations Development Programme (UNDP)
25. Gender Inequality Index United Nations Development Programme (UNDP)
26. Global Hunger Index International Food Policy Research Institute (IFPRI)
27. Global Innovation Index INSEAD
28. World Economic Situation and Prospects United Nations Organizations (UN)
29. Economic Freedom Index The Heritage Foundation
30. World Happiness Report Sustainable Development Solution Network (SDSN)

Important Days

Important Days

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With Easy Tricks To Remember

January

In January there are 5 important days

1)12 Jan-National youth day (rashtriyayuvadiwas)

2) 15 Jan-Army day (senadiwas)

3)24 Jan-National girl child day (rashtriyabalikadiwas)

4) 25 Jan- National tourism day/ voter day

5) 30 Jan- National martyr day (rashtriyashahiddiwas) / Anti leprosy day

 

Trick with story-

January me mere gharpaanchtarahke log aayejinme 12 yuva,15 senake log, 24

balikaye,25-25 tourism aur voter or 30 shahidkeparivarke log jo leprosy keshikar the.

 

February

1) 4 feb- world Cancer day

2) 28 feb-National Science day

 

Trick-" February me science ne do experiment kiyejinme 4 cancer kemarizokothikkarne

me 28 vigyan(science) ka use hua". 

 

March

1)8 mar- International women day

2) 9 mar-world kidney day

3) 15 mar-world consumer right day

4)20 mar- world sparrow day/happiness day(khushidiwas)

5) 21 mar- World forest day

6) 22 mar- world water day

7) 23 mar- meteorological day

8) 24 mar- World T.B day

 

Trick with story-

8 women ki 9 kidney 15 consumers ko 20 sparrow ke through khushikhushi 21 forest me

22 water boat kejariye 23 metro stations par 24 T.B kemarizokobechagaya.

 

April

1) 2 april -Autism awareness day in short (AADami)/World autism day

2) 7 april- world health day

3) 21 april- Civil service day

4) 22 april- Earth day

5) 24 April- National Panchayati Raj day

 

Trick with story-

2 AADamiyo be acchehelathkesath (7) 21 baar civil service ka exam diya or ve do do (22)

bar is dharti (earth) par pass hue or end me 24 vibaar me unhePanchayatvibhagmila.

(Hard work pays off)

 

May

1) 1 may- international labour day

2) 3 may- world press freedom day

3) 11 may- National technology day

4) 21 may- Anti- terrorism day/death of Rajiv gandhi

5) 31 may- Anti-Tobacco day

 

Trick with story-

1 (ek) Rajiv naamkalabourthajisey 3 press (stri) free me miley the jo 11vi sadiki technology

se bane the par 21vi sadi me kuch terrorist ne Rajiv ko mar karusey 31 rupaye me Tobacco

company kobechdiya.

 

June

1) 5 june- World environment day ( everyone knows)

2) 21 june- World Yoga day ( latesthaisbjantehai)

 

July

1) 1 july - National Doctor's day

2) 11july - world population day

 

Trick with Story-

1 doctor ne san 20'11' ke population ko control kiya.

*extra

12th--International Malala Day

18th--International Nelson Mandela Day

 

August

6th--Hirosima Day

9th--Nagasaki Day

12th--International Youth Day

29th--National Sports Day

 

Trick—" 6 heroes ne 9 naagakoaur 12 saalke youth ko 29 bar dhyan se khelnekodiya."

 

September

5th--Teachers Day

8th--world literacy Day

14th--Hindi Diwas

15th--Engineer's Day

16th--World Ozone Day

 

Trick:-" 5 teachers ne 8 world ke literate person ko 14 hindi pe,15 engineering pe or 16

ozone day pe essay likhnediya."

 

October

2nd--International non-violence day.

8th— Airforce Day.

9th--World post office day

24th— UN day..

 

Trick:-" 8 airforce ne 9 letters post kiya 24 UN contriesko."

 

November

17th— world students Day

18th--World Adults Day

19th--world citizen Day

26th--National Day

 

Trick:-" 17 saalke students jab 18 saalke adults hue tab unhe 19 saalke citizens ne 26

national laws sikhaye."

 

December

1st— AIDS Day

2nd--World computer literacy Day

4th--Navy Day

10th--Human Rights Day

 

Trick:-" 1 add(AIDS) me likhatha 2 computer literate kijaruraathai 4 dinoke under Navy me

, jiskeliye 10 human ne apne rights kesath apply kiya."

*extra

14th--National Energy Conservation Day

24th--National Consumer Day

25th--Good Governance Day

 

IMPORTANT DAYS

JANUARY

January 1 - Global Family Day

January 9 - NRI Day

January 10 - World Laughter Day

January 12 - National Youth Day

January 15 - Army Day

January 25 - National Voters Day , National Tourism Day

January 26 -International Customs Day

January 28 - Data Protection Day

January 30 - Martyrs Day; World Leprosy Eradication Day

 

FEBRUARY

February 4 - World Cancer Day

February 6 - International Day against Female Genital Mutilation

February 12 - Darwin Day ,World Day of the Sick

February 13 - World Radio day

February 20 - World Day of Social Justice

February 21 - International Mother Language Day

February 22 - World Scout Day

February 24 - Central Excise Day

February 28 - National Science Day

 

MARCH

March 2ND Monday - Commonwealth Day

March 2ND Thursday - World Kidney Day

March 4 - WorldDayof the Fight Against Sexual Exploitation

March 8 - International Women’s Day

March 15 - World Consumer Rights Day

March 16 - National Vaccination Day

March 18 - Ordnance Factories Day

March 20 - World Sparrow Day

March 21 - World Forestry Day

March 22 - World Water Day

March 23 - World Earth Day

March 24 - World TB Day

March 27 - World Drama Day

 

APRIL

April 2 - World Autism Awareness Day

April 5 - International Day for Mine Awareness,

April 5 - National Maritime Day

April 7 - World Health Day

April 17 - World Haemophilia Day

April 18 - WorldAmateur Radio Day

April 18 - World Heritage Day

April 21 - Secretaries Day

April 21 - National Civil Services Day

April 22 - Earth Day

April 23 - World Book and Copyright Day

April 25 - World Malaria Day

April 26 - World Intellectual Property Day

April 29 - International Dance Day

 

MAY

May 1 - International Labour Day

May 1st Tuesday - World Asthma Day

May 3 - Press Freedom Day

May 4 - Coal Miners’ Day

May 8 - World Red Cross Day

May 9 - World Thalassaemia Day

May 11 - National Technology Day

May 12 - World Hypertension Day

May 12 - International Nurses Day

May 14 - World Migratory day

May 15 - International Day of the Family

May 17 - World Tele communication Day

May 18 - International Museum Day

May 21 - Anti-Terrorism day (Rajiv Gandhi dead)

May 22 - International Day for Biological Diversity

May 24 - Common wealth Day

May 28 - World Hunger Day

May 31 - Anti-tobacco Day

 

JUNE

June 1 - World milk day

June 4 - International Day of Innocent ChildrenVictims of Aggression

June 5 - World Environment Day

June 8 - World Ocean Day

June 12 - World Day against Child Labour

June 14 - World Blood Donor Day

June 15 - World Elder Abuse Awareness Day

June 17 - World Day to Combat Desertification and Drought

June 20 - World Refugee Day

June 21 - World Music Day

June 23 - International Olympic Day

June 23 - UN Public Service Day

June 26 - International Day against Drug Abuse and Illicit(illictic) Trafficking

June 27 - International Diabetes Day

 

JULY

July 1 - Doctor’s Day

July 2 - Word Sports Journalist Day

July 6 - World Zoonoses Day

July 11 - World Population Day

July 12 - Malala Day

July 17 - International Justice Day

July 18 - Nelson Mandela International Day

 

AUGUST

August 1ST Sunday - International Friendship Day

August 6 - Hiroshima Day,Organ DonationDay

August 7 - Forgiveness Day

August 8 - World Senior Citizen Day

August 9 - Nagasaki Day

August 9 - International Day of the World Indigenous Peoples

August 12 - International Youth Day

August 15 - Indian Independence Day

August 19 - Photography Day, - World Humanitarian Day

August 20 - Rajiv Gandhi Sadbhavana Divas

August 29 - National Sports Day

 

SEPTEMBER

September2 - Coconut Day

September 5 - Teachers Day ,International day of charity

September8 - International Literacy Day (UNESCO)

September 14 - Hindi Diwas, World First Aid Day

September 15 - Engineer Day

September 16 - World Ozone Day

September 21 - Alzheimer Day

September 21 - Day for Peace and Non- violence (UN)

September 22 - Welfare of cancer patients (Rose Day)

September 25 - Social Justice Day

 

October

October 2 - Gandhi Jayanti

October 3 - World Habitat Day

October 4 - World Animal Welfare Day

October 8 - Indian Air Force Day

October 9 - World Post Office Day

October 10 - National Post Day

October 11 - International Day of the Girl Child

October 12 - World Arthritis Day

October 13 - UN International Day for Natural DisasterReduction

October 14 - World Standards Day

October 15 - World White Cane Day

October 15 - International Day of Rural women

October 16 - World Food Day

October 17 - TheInternational Day for the Eradication of Poverty

October 20 - World Statistics Day

October 20 - World Osteoporosis Day

October 21 - Global Iodine Deficiency DisordersPrevention Day

October 24 - World Development Information Day

October 24 - World Polio Day, UN Day

October 28 - International Animation Day

October 30 - World Thrift Day

 

NOVEMBER

November 5 - World Radiography Day

November 9 - Legal Services Day

November 12 - World Pneumonia Day

November 12 - Public Service Broadcasting Day

November 14 - Children Day

November 14 - World Diabetes Day

November 16 - International Day for Tolerance

November 17 - National Epilepsy Day

November 17 - National Journalism Day

November 19 - Citizens Day

November 19 - World Toilet Day

November 19 - National Integration Day

November 20 - Africa Industrialization Day

November 21 - World Television Day

November 21 - World Fisheries day

November 25 - International Day for Elimination of Violence against Women

November 26 - Constitution Day

November29 - International Day of Solidarity with Palestinian People

 

DECEMBER

December 1 - World AIDS Day

December 2 - World Computer Literacy Day

December 3 - World Day of the Handicapped

December 4 - Indian Navy Day

December 5 - International Volunteer Day

December 7 - Armed Forces Flag Day

December 7 - International Civil Aviation Day

December 10 - Human Rights Day

December 10 - International Children Day of Broadcasting

December 14 - World Energy Day

December 18 - Minorities Rights Day

December 22 - National Mathematics

December 23 - Farmer’s Day

December 25 - Good Governance Day

Tech giant Google is announced to unveil a digital payment service in India

Tech giant Google is announced to unveil a digital payment service in India

1698  

Tech giant Google is announced to unveil a digital payment service in India that has been developed for the local market. In July, National Payments Corporation of India (NPCI) had stated that Google had completed the testing of its UPI payment service and was awaiting Reserve Bank of India’s approval to launch its service in the country. Google is looking at launching a payment service ‘Google Tez’, which will include support for Unified Payments Interface (UPI) as well as mobile wallets like Paytm and MobiKwik.

Useful Information

Google HQ – Mountain View, California, United States

Google CEO – Sundar Pitchai

Airtel Payments Bank, First Payment Bank to Integrate UPI on its Digital Platform

Airtel Payments Bank, First Payment Bank to Integrate UPI on its Digital Platform

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Sunil Mittal-driven Airtel Payments Bank integrated the Unified Payments Interface (UPI) on its digital platform, allowing customer choice and convenience to facilitate secure digital payments. Airtel Payments Bank has become the first payments bank in India to integrate the UPI on its digital platform. In January 2017, Bharti Airtel launched Payments Bank in India to enable transactions on digital platforms. The initiative will allow bank customers to link their bank accounts to Bhim app and make UPI payments.

Useful Information -

Airtel Payments Bank is India’s first Payment Bank

PNB, BSNL join hands for mobile wallet Speedpay rollout

PNB, BSNL join hands for mobile wallet Speedpay rollout

521  

Punjab National Bank and BSNL has joined hands to roll out open mobile wallet Speedpay across 10 states in the country announced on 8th Sept. 2017.
Key Points:
i
.PNBs Speedway wallet will operate like any other mobile wallet for paying bills, recharging phone. Its users will be able to deposit and withdraw money from authorized retail outlets.
ii.Under the agreement, BSNL will expand Speedpay services in Punjab, Chandigarh (UT), Haryana, Jammu and Kashmir, Himachal Pradesh, Uttar Pradesh, Bihar, West Bengal, Jharkhand and Uttarakhand.
iii.Speedway users will be able to operate Internet banking services from the application.
iv.This technology will help India moving towards less cash economy and provide services in tier 2 and 3 cities.
v.SpeedPay also plays an important role for governments direct benefit transfer programme, to ensure quick and direct payment of subsidies to the citizens
About PNB
Founded on 19th May 1894
MD& CEO: Sunil Mehta
HQ: New Delhi
Tagline: The name you can bank upon

21st GST Council meeting underway in Hyderabad

21st GST Council meeting underway in Hyderabad

510  

The 21st meeting of the Goods and Services Tax (GST) Council has begun under the chairmanship of Union Finance Minister Arun Jaitley in Hyderabad. The day-long meeting will discuss several aspects relating to the implementation of the GST including the IT systems of the Goods and Services Tax Network, the problems being encountered during the tax return filing process and the difficulties faced by industry in filing GST returns. GST council will also take a final call over the demands raised by several states like Telangana to further reduce the GST on public interest projects like irrigation and road development.

 

Union Finance Minister – Arun Jaitley

Constituency – Gujarat, Rajya Sabha

IRDAI allows one-time password for opening online insurance account

BANKING AWARENESS PART - 5

1151  

On 10th September 2017, Insurance Regulatory and Development Authority (IRDAI) announced usage of OTP (One Time Password) for opening e-Insurance Account (eIA) as an alternative to electronic signature, in New Delhi.
About the one-time password facility:
i.IRDAI said that in order to facilitate the opening of e-Insurance Account (eIA) through online or electronic means, the authority has permitted validation by
One Time Password (OTP).
ii.The One time password (OTP) is generated by computer and sent on mobile phone/e-mail to authenticate a transaction.

iii. Now, e-signature of the e- insurance account (eIA) holder on the application form for opening the account is considered as a valid authentication.
vi.Also IRDAI has permitted the 
e-KYC (Know Your Customer)facility offered by UIDAI (Unique Identification Authority of India) which provides unique Aadhaar numbers.
v.Through
e-KYC authentication facility, insurers can perform the verification of the clients.
vi.
UIDAI provides biometric authentication of a person based on Aadhaar details.
vii. These efforts have been taken by the
IRDAI as a part of improving insurance penetration.
viii. Also as part of its developmental mandate to reach the policyholders in a cost efficient manner IRDAI has taken a number of steps like including insurance e-commerce, maintenance of electronic records etc.

About IRDAI:

  1. Insurance Regulatory and Development Authority
  2. Headquarters – Hyderabad
  3. Chairman – Mr.T.S.Vijayan

Major Ports in India

Major Ports in India

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Western Coast

Eastern Coast

Kandla (child of partition)

Kolkata-Haldia (riverine port)

Mumbai (busiest and biggest)

Paradip (exports raw iron to Japan)

Jawahar Lal Nehru (fastest growing)

Vishakjapatnam (deepest port)

Marmugao (naval base also)

Chennai (oldest and artifical)

Mangalore (exports Kudremukh iron-ore)

Ennore (most modern-in private hands)

Cochin (natural Harbour)

Tuticorin (southernmost )

Few Facts about some port:- Among major ports, Mumbai is the biggest. Kandla is a tidal port. Marmugao enjoys the second position by value of the tonnage of the bulk of which is export of Iron core. Vishakhapatnam is the deepest land-locked and protected port. Chennai has an artificial harbour, Kolkata is a riverine port, Haldia has a fully equipped containerised berth.

Shipping:- Overseas shipping has an extremely important role to play in Indias international trade. The country has the largest merchant shipping fleet among developing countries and ranks 17th in the world in shipping tonnage. There were 102 shipping companies in country operating as on 31 March 2000, includes shipping corporation of India, a public sector undertaking.

Banking Awareness Update - IBPS PO / Clerk 2017 Part - 4

Banking Awareness Update - IBPS PO / Clerk 2017 Part - 4

980  

Get Rs. 5 Discount On Online Payment Of LPG Cylinder

  1. After petrol and diesel, buying and paying for cooking gas (LPG) online will get consumers a discount of Rs. 5 per cylinder.
  2. State-owned fuel retailers,  Indian Oil Corp (IOC),  Bharat Petroleum Corp Ltd (BPCL) and  Hindustan Petroleum Corp Ltd (HPCL) will offer "an upfront discount of Rs. 5 on every LPG refill to all LPG customers who will book and pay for it online," an official statement said here. 
  3. To provide cash-less transactions, the government had asked oil companies to pay consumers  0.75 per cent discount on cashless fuelling of petrol and diesel at petrol pumps.

Sensex to hit 30,500 by year-end due to govt reforms: HSBC

  1. Financial services major HSBC has set a benchmark BSE Sensex target at 30,500 for December, 2017 saying that structural reforms like demonetisation and GST will push growth in the long run."If we move towards transparency and know where the money is coming from and also have GST, we would have much less incentive to...not contribute to development," HSBC said.
  • Bank : HSBC;
  • Headquarters: London, United Kingdom;
  • CEO: António Pedro dos Santos Simões;

SBI Signs $ 50 mn Pact with Oman’s SGRF

  1. State Bank of India has signed a pact with the State General Reserve Fund of Oman (SGRF), a Sovereign Wealth Fund to infuse $50 million in private equity fund  Oman India Joint Investment Fund (OIJIF) while the SGRF would infuse $150 million.
  2. The SBI aims at backing the private equity fund for its  second offering (Fund II).
  3. This decision is driven by the performance in the first fund and capital requirement for mid-size companies in the country. The first fund of  $100 million, has been fully invested across seven companies and has returned around 50 per cent of the capital invested.

Oman

Capital: Muscat

Currency: Omani rial

Sultan: Qaboos bin Said al Said


Market Regulator SEBI Tightens Mergers & Acquisitions Norms Among Unlisted Firms

  1. The Capital market regulator of India, Securities and Exchange Board of India (SEBI) on January 14 tightened the norms associated to  Mergers and Acquisitions (M&A) of Indian companies.
  2. The public shareholding of the resultant entity created by the merger of an unlisted and a listed company has to be  more than 25 per cent.
  3. The unlisted entity can only merge with those companies that are listed on exchanges such as the  National Stock Exchange (NSE) and BSE.
  4. Sebi has permitted the mutual fund sector to invest in instruments such as  real estate investment trusts (ReITs). It has also permitted them to use celebrities for industry-level advertisements. However, celebrities can only be used for industry-level ads and not at the fund house or the scheme level.
  5. The involvement of Celebrities would enable growth of MF sector and simplify communication between investors and companies.

Mysuru Printing Press Breaks Record by Printing Highest No. of Currency Notes in a Month

  1. As per the data released by the President of Note Mudran Limited Employees Union, A Ramdass, the RBI Note Mudran printing press in Mysuru printing highest number of currency notes in December breaking all its past record.
  2. It printed   10.9 million currency note in a day that even broke the world record made an American currency printing press of printing  8.7 million notes in a day.
  3. As per the data,  1350 million currency notes were printed in December 2016 in Mysuru which employess 650 workers who work for  12 hours in two shifts.
  4. Besides, the printing wastage was also reduced to  2 percent which in America was 4 percent. Similarly, cost of printing in American Press was Rs. 4 per currency while in Mysuru, printing a single currency costed just Rs. 3.40.
  5. RBI Note Mudran printing press is a subsidiary of Reserve Bank of India that was established in 1995 to meet the demand and supply for the bank notes.
  6. It has  two presses: one at Mysuru, Karnataka and the other at Salboni, West Bengal.

India Signs Financing Agreement with World Bank for US$ 48 Million for “Nagaland Health Project”

The Joint Secretary of Department of Economic Affairs,  Mr. Raj Kumar and  Acting Country Director of the World Bank  Mrs. Genevieve Connors are signed s financing agreement for IDA credit of  US$ 48 million for the ‘Nagaland Health Project’ on January 16, 2017.

Nagaland Health Project :

  1. The Nagaland Health Project has approved by the world bank on December 19, 2016. The deadline of Nagaland health Project is 31st March, 2023.
  2. Aim : To improve health services and increase their utilization by communities in targeted locations in Nagaland.
  3. The project will support an existing systems and mechanisms involving communities under the National Health Mission.

World Bank :

CEO : Dr. Jim Yong Kim

Headquarters: Washington, D.C., USA

Motto: Working for a World Free of Poverty

Founded: 27 December 1945


Central & SBI Card launch premium co-branded card

  1. Future Group’s fashion and lifestyle departmental store Central joined with SBI Card launched a second co-branded credit card to offer benefits to consumers in the premium lifestyle and fashion space on January 16, 2017
  2. The Central SBI SELECT and SELECT+ Cards will offer an accelerated reward points structure
    1. 20 reward points for  every Rs 100 spent in Central stores.
    2. 10 reward points per  Rs 100 spent in dining and entertainment
    3. 2 reward points per  Rs 100 in other categories

SBI app names :

♦ SBI has recently launched a Digital Platform, Mobile App powered by Manipal Global Education Services’ (MaGE) EduNxt Platform.This app will acts as a digital mentor to probationary Officers and Trainee Officers right.

 Other appsSBI Pay , SBI Buddy, mVisa, NO Queue, MobiCash


IRDAI forms panel to review life insurance product norms

  1. The Insurance Regulatory and Development Authority of India (IRDAI) has formed a 8 member committee headed by Amitabh Chaudhry, CEO of HDFC Standard Life Insurance Company to review life insurance product regulations on January 16, 2017
  2. The committee will analysis the existing framework of  IRDA-linked and  non-linked insurance product regulations
  3. They will review other key aspects like changing economic and insurance market environment, customers’ needs and expectations and insurance product flexibility and innovations. IRDAI instructed to the committee to submit its report before March 15, 2017.

Committee Members :

Head : Amitabh Chaudhry, CEO of HDFC Standard Life Insurance Company

 K S Gopalakrishnan, CEO, Aegon Religare Life Insurance,

 Sai Srinivas, Appointed Actuary, Bajaj Allianz Life Insurance and Sandeep Bakshi, CEO, ICICI Prudential Life

IRDAI :

Chairman IRDA‎: ‎T.S. Vijayan

Headquarters: ‎Hyderabad


Study by Oxfam Shows Richest 1% in India Holds 58% of Total Wealth

  1. As per a report titled ‘An economy for the 99 per cent’ released by rights group Oxfam on January 16, 2017, the  richest 1 percent of the population in India holds  58 percent of the country’s total wealth which is higher than the global figure of 50 percent.
  2. The report found that since 2015, the richest 1 percent population in India has continued to own more wealth than the rest of the countries.
  3. Besides, it also discovered that  57 billionaires in India having collective wealth of USD 216 billion was equal to the wealth that lowest 70 percent population held. However, when taken globally only 8 billionaires have the same amount of wealth as the poorest 50 percent of the world population.
  4. The study stated that India has  84 billionaires with a collective wealth of  USD 248 billion. The total Indian wealth in the country was calculated at USD 3.1 trillion. Top 3 billionaires comprised of Mukesh Ambani (USD 19.3 billion), Dilip Shanghvi (USD 16.7 billion) and Azim Premji (USD 15 billion). 

IMF Lowers India’s GDP Growth Rate to 6.6% from 7.6% for FY17

  1. According to the World Economic Outlook report, the International Monetary Fund (IMF) on January 16, 2017 has lowered the India’s GDP growth rate for the current fiscal year by one point to  6.6 percent from its previous  estimate of 7.6 percent due to the effect of demonetization on consumption and expenditure.
  2. IMF also cut India’s GDP forecast for 2017-18 by  0.4 points to  7.2 percent as against previous forecast of 7.6 percent. For the year 2018-19, the projected growth rate remained unchanged at 7.7 percent.
  3. Besides, IMF estimated the growth rate of China at 6.7 percent for 2016-17, 6.5 percent for 2017-18 and  6 percent for 2018-19.
  4. The  global growth for 2016 was estimated at 3.1 percent that remained unchanged from previous forecast while for 2017 the global forecast is estimated at 3.4 percent for advanced and  3.6 percent for developing economies.

International Monetary Fund (IMF)

Headquarters: Washington, D.C.

 CEO: Christine Lagarde

  Founded: 27 December 1945


Yes Bank Launches India’s First Customisable Savings Account

  1. YES Bank has launched a first of its kind unique Customizable Savings Account to enable the customers to design an account as per their convenience.
  2. Mumbai based bank has become the first bank in India to launch such type of account that enables the customer to choose various features of a savings accounts that suits one’s own lifestyle.
  3. The Customizable Savings Account will also protect the customer from unwarranted charges by eliminating unnecessary account features.
  4. Customers can choose options like debit cards, alternatives to minimum balance requirements, and banking benefits such as ATM usage, digital banking products, branch banking and family grouping.

YES BANK

Headquarters: Mumbai

Founded: 2004

CEO: Rana Kapoor


RBI Hikes Cash Withdrawal Limit from ATMs to Rs. 10,000 per Day

  1. The Reserve Bank of India (RBI) from January 16, 2017 has increased the limit of cash withdrawal from ATMs to Rs 10,000 per day from the current Rs 4,500 with immediate effect.
  2. However the bank made no changes to the weekly withdrawal limits which is  Rs 24,000.
  3. Besides, the total limit to withdraw from current accounts has also been increased to Rs 1,00,000 per week from the current limit of Rs 50,000 per week which will also be applicable on the overdraft and cash credit accounts. 

Reserve Bank of India (RBI)

Headquarter: Mumbai, Maharashtra

Founded: April 1, 1935

Governor: Urjit R Patel


Tax department, Japanese company sign advance pricing pact

The tax department signed a Bilateral Advance Pricing Agreement (BAPA) with Indian subsidiary of a apanese trading company to include rollback provisions to reduce litigations by providing certainty in transfer pricing on January 13, 2017 Now the total number of BAPAs entered into by the CBDT is increased to 8.
Highlights :

  1. BAPA is an important step towards ascertaining transfer pricing matters of multinational company cases and dispute resolution.
  2. Under BAPA, certainty in tax treatment is provided for the  next five years while rollback provides dispute redressal for a maximum of four past years preceding APA years.
  3. It will strengthens the government’s mission of fostering a  non-adversarial tax regime.


Advance pricing agreement(APA):

♦ An advance pricing agreement (APA) is an ahead-of-time agreement between a taxpayer and a tax authority on an appropriate transfer pricing methodology (TPM) for a set of transactions at issue over a fixed period of time.

♦ The concept of Advanced Pricing Agreement (APA) was introduced in India via the Finance  Act 2012.


Spicejet signs $22-bn deal to buy 205 Boeing aircraft

  1. India based Budget carrier SpiceJet and US based aircraft manufacturer Boeing has signed a deal worth $22 billion (Rs 150,000 crore) for the purchase of up to 205 Aircraft on January 13, 2017.
  2. This is one of the largest orders ever made in the airline history. The agreement also provided a big boost for Boeing in India.
  3. The deal includes 100 new 737 Max 8 jets, builds upon an existing order for 55 aircraft.

Spicejet :

♦ SpiceJet is a low-cost airline. It is the fourth largest airline in the country by number of passengers
♦ It is established as air taxi provider ModiLuft in 1994, the company was acquired by Indian entrepreneur Ajay Singh in 2004 and re-christened as SpiceJet.

Headquarters: Gurgaon

CEO: Ajay Singh


WPI Based Inflation Increases to 3.39% in December 2016

  1. Wholesale Price Index (WPI) inflation rose to 3.39 percent in December 2016 breaking the record of last three months. The rise was due to increase in prices of manufactured items.
  2. WPI based inflation in vegetables declined by 33.11 percent in December 2016 mainly because of a substantial fall in price of onions which stood at -37.20 percent.
  3. However, the overall food inflation witnessed contraction in December 2016 as against previous month November 2016. It declined by -0.70 percent from 1.54 percent in November.
  4. While Pulse inflation remained high at 18.12 percent in December, Potato showed maximum price increase by 26.42 percent. Rate of price increase in egg, meat and fish was 2.73 percent.
  5. Manufactured article was 3.67 percent compared with 3.20 percent in the November 2016. Inflation in the fuel and power segment was 8. 65 percent in December 2016 up from 7.07 per cent in November.
  6. The rate of price rise in sugar was 28.04 percent, for petrol it was  8.52 per cent, and for high speed diesel it was 20.25 percent.


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