LoU, CBS, LoC, SWIFT

About LoU, CBS, LoC, SWIFT

9092   03-Mar-2018, Sat

Letter of Undertaking (LoUs),  Letter of Credit (LoC), Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, and Core Banking System (CBS). It is important for you to understand what these terms mean, not only to get a better insight in current affairs of the nation but also to prepare for upcoming exams as current affairs based banking terms and instruments are known to be seen in the general awareness section of banking examinations topics like LoU, SWIFT, CBS, Letter of Credit (LoC) are now very important from the point of upcoming competetive Examinations.

About 'Letter Of Credit'.

A letter of credit is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.

BREAKING DOWN 'Letter Of Credit'

Because a letter of credit is typically a negotiable instrument, the issuing bank pays the beneficiary or any bank nominated by the beneficiary. If a letter of credit is transferrable, the beneficiary may assign another entity, such as a corporate parent or a third party, the right to draw.

Funding a Letter of Credit

Banks typically require a pledge of securities or cash as collateral for issuing a letter of credit. Banks also collect a fee for service, typically a percentage of the size of the letter of credit. The International Chamber of Commerce Uniform Customs and Practice for Documentary Credits oversees letters of credit used in international transactions.

Example of a Letter of Credit

Citibank offers letters of credit for buyers in Latin America, Africa, Eastern Europe, Asia and the Middle East who may have difficulty obtaining international credit on their own. Citibank’s letters of credit help exporters minimize the importer’s country risk and the issuing bank’s commercial credit risk. Letters of credit are typically provided within two business days, guaranteeing payment by the confirming Citibank branch. This benefit is especially valuable when a client is located in a potentially unstable economic environment.

Types of Letters of Credit

A commercial letter of credit is a direct payment method in which the issuing bank makes the payments to the beneficiary. In contrast, a standby letter of credit is a secondary payment method in which the bank pays the beneficiary only when the holder cannot.

A revolving letter of credit lets the customer make any number of draws within a certain limit during a specific time period. A traveler’s letter of credit guarantees the issuing banks will honor drafts made at certain foreign banks.

A confirmed letter of credit involves a bank other than the issuing bank guaranteeing the letter of credit. The second bank is the confirming bank, typically the seller’s bank. The confirming bank ensures payment under the letter of credit if the holder and the issuing bank default. The issuing bank in international transactions typically requests this arrangement.

About SWIFT 


When an LoU is issued, the message of credit transfer is conveyed to overseas banks through the Society for Worldwide Interbank Financial Telecommunication (SWIFT)system. This is a significant information as it gives the bank's consent and guarantee. To issue SWIFT, an official has to log in and fill up confidential information such as the account number and SWIFT code. It generally has three layers of security - a maker, a checker and a verifier within the core banking system before it is issued.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutionsworldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. SWIFT also sells software and services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362. Business Identifier Codes (BICs, previously Bank Identifier Codes) are popularly known as "SWIFT codes".

The majority of international interbank messages use the SWIFT network. As of 2015, SWIFT linked more than 11,000 financial institutions in more than 200 countries and territories, who were exchanging an average of over 15 million messages per day (compared to an average of 2.4 million daily messages in 1995). SWIFT transports financial messages in a highly secure way but does not hold accounts for its members and does not perform any form of clearing or settlement.

SWIFT does not facilitate funds transfer: rather, it sends payment orders, which must be settled by correspondent accounts that the institutions have with each other. Each financial institution, to exchange banking transactions, must have a banking relationship by either being a bank or affiliating itself with one (or more) so as to enjoy those particular business features.

SWIFT is a cooperative society under Belgian law owned by its member financial institutions with offices around the world. SWIFT headquarters, designed by Ricardo Bofill Taller de Arquitectura are in La Hulpe, Belgium, near Brussels. The chairman of SWIFT is Yawar Shah, originally from Pakistan, and its CEO is Gottfried Leibbrandt, originally from the Netherlands. SWIFT hosts an annual conference every year, called Sibos, specifically aimed at the financial services industry.

About CBS

CBS refers to Core Banking System where all branches are inter-connected to ensure that the bank customers - regardless of their home branch - are able to operate their account and transact in any of the member branch located anywhere in the world.

CBS is required :

  1. To meet the dynamically changing market & customer needs.

  2. To improve & simplify  banking processes so that bank staff can focus on sales & marketing stuff.

  3. Convenience to customer as well as bank.

  4. To  Speed up the banking transactions.

  5. To expand presence in rural & remote areas.

 

About Letter of Undertaking (LoU)
 

An LoU is an assurance given by one bank to another to meet a liability on behalf of a customer. The LoU is akin to a letter of credit or a guarantee. LoUs are used in international banking transactions. An LoU is issued for overseas import remittances and involves four parties — an issuing bank, a receiving bank, an importer and a beneficiary entity overseas. According to norms, the term of an LoU is 180 days, and can be rolled over once for six months. Since LoUs are a form of lending, they are typically backed by security.

A Letter of Understanding or LOU is a formal text that sums up the terms and understanding of a contract which mostly has been negotiated up to this point only in spoken form. It reviews the terms of an agreement for a service, a project or a deal and is often written as a step before a more detailed contract is issued.

The LOU may provide for example:

  1. Detailed summary of the work to be performed
  2. Tasks of the service provider and the receiver
  3. Milestones for the work to be done
  4. Work steps that have been accomplished already

In international banking system, Letter of Undertaking (LOU) is a provision of bank guarantee, under which a bank allows its customer to raise money from another Indian bank's foreign branch in the form of a short term credit. The LOU serves the purpose of a bank guarantee. However, to be able to raise the LOU, the customer is supposed to pay margin money to the bank issuing the LOU and accordingly, he is granted a credit limit.

Credit Rating Agencies

Credit Rating Agencies

6364   25-Dec-2017, Mon

Fitch

Fitch Ratings Inc. is one of the "Big Three credit rating agencies",the other two being Moody's and Standard & Poor's.

Headquarters: New York and London 

Founded: 1914

CEO: Paul Taylor

Standard & Poor’s  

Standard & Poor's Financial Services LLC (S&P) is an American financial services company.

As a credit-rating agency , the company issues credit ratings for the debt of public and private companies, and other public borrowers such as governments and governmental entities.

Headquarters: New York

Founded: 1860

CEO: John Berisford

Moody's

Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation.  

Headquarters: New York

Founded: 1909

CRISIL

CRISIL (Credit Rating Information Services of India Limited) is a global analytical company providing ratings, research, risk and policy advisory services.

CRISIL’s majority shareholder is Standard & Poor's, a division of McGraw Hill Financial.

It is India's first credit rating agency.

Headquarters: Mumbai

Founded: 1987

Present MD and CEO : Ashu Suyash 

ICRA

ICRA Limited (Investment Information and Credit Rating Agency) is an Indian independent and professional investment information and credit rating agency.

It iss a joint-venture between Moody's and various Indian commercial banks and financial services companies.

Headquarters: Gurgaon

Founded: 1991

Present CEO : Naresh Takkar  

CARE

CREDIT ANALYSIS & RESEARCH LTD Ratings commenced operations in April 1993 and over nearly two decades, it has established itself as the second-largest credit rating agency in India.

Headquarters: Mumbai

Founded: 1993

Present CEO and MD : Rajesh Mokashi

ONICRA

Onida Individual Credit Rating Agency of India is one of the leading Credit and Performance Rating agencies in India. Onicra provides ratings, risk assessment and analytical solutions to Individuals, MSMEs and Corporates.

Headquarters: Gurgaon

Founded: 1993

Present Executive Director: Varun Mirchandani

SMERA

SME Rating Agency of India is a full service credit rating agency exclusively set up for micro, small and medium enterprises (MSME) in India and has grown to rate SME, mid & large corporate .

It provides ratings which enable MSME, SMEs,Corporates to raise bank loans at competitive rates of interest.

Headquarters: Mumbai

Founded: 2005

CEO: Shankar Chakraborti

Payment Banks and Small Finance Bank

Payment Banks and Small Finance Bank

15513   25-Dec-2017, Mon

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

4264   23-Dec-2017, Sat

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

2470   07-Oct-2017, Sat

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

1943   19-Sep-2017, Tue

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

1247   19-Sep-2017, Tue

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

776   12-Sep-2017, Tue

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

750   11-Sep-2017, Mon

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

1393   11-Sep-2017, Mon

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


Top