MONTHLY GK Banking Capsule MAY 2019

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MONTHLY GENERAL KNOWLEDGE BANKING &
FINANCE CAPSULE
(April 01 to April 30)
Banking News
Cyber Defence Insurance launched by SBI General Insurance
for Businesses
• SBI General Insurance has launched a product - cyber
defence insurance to protect businesses from financial and
reputational losses due to cyber attacks.
• In the initial phase, the focus will be on SMEs and mid-
market businesses, but later the product can cater to
larger business conglomerates
• It is designed to protect against major insurable cyber
exposures like hacking attacks, identity theft, disclosure of
sensitive information and business interruption.
SBI General Insurance.
• CEO: Pushan Mahapatra.
Authorised Capital of Allahabad Bank raised by Government
to Rs 8,000 Crore.
. • Headquarters: Mumbai.
• State-owned Allahabad Bank stated that the government
has increased its authorised capital by Rs 5,000 crore to Rs
8,000 crore.
• The central government after consultation with the
Reserve Bank of India increased the authorised capital of
the bank.
• The increase in authorised capital will help enable the
bank to raise further fund up to a maximum ceiling of Rs
8,000 crore.
Allahabad Bank.
• CEO: S. S. Mallikarjuna Rao, Headquarters:
Kolkata.
• Founded in: 24 April 1865.
RBI becomes the First APAC Central Bank to begin Interest
Rate Easing Cycle.
• The Reserve Bank of India has become the first central
bank in the Asia-Pacific (APAC) region to begin an explicit
interest rate easing cycle.
• The Monetary Policy Committee (MPC), headed by RBI
Governor Shaktikanta Das, cut rates in February and April.
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MONTHLY GK Banking Capsule MAY 2019
• In the four months of 2019, the RBI has cut policy interest
rates twice by 0.25% each to a one-year low of 6%.
• This is the first back-to-back rate cut since the MPC was
formed in late 2016.
Kotak Bank launches Debit Card-Based e-mandate on NPCI’s
API Platform.
• Kotak Mahindra Bank (Kotak) has launched the first debit
card-based authentication solution on NPCI’s (National
Payments Corporation of India) e-Mandate (electronic
mandate) API (Application Program Interface) platform.
• With this, it has become the first ever Destination Bank to
go live with both Net Banking and Debit Card-based e-
mandate authentication.
• This allows Kotak to go live as a sponsor or acquirer bank
for corporates and merchants seeking recurring payments.
Kotak Bank.
• CEO: Uday Kotak.
IndusInd Bank Receives NCLT approval for merger with
Bharat Financial Inclusion.
• National Company Law Tribunal (NCLT) approved the
merger of private sector lender IndusInd Bank with Bharat
Financial Inclusion (BFIL), a microfinance company
• Earlier, IndusInd Bank had received ‘No Objection’ from
Reserve Bank of India, National Stock Exchange and
Bombay Stock Exchange.
• Bharat Financial will become a subsidiary of the private
lender.
Insuslnd Bank.
• MD and CEO: Romesh Sobti.
• Headquarter: New Delhi
India’s First ‘Green Car Loan’ launched by SBI.
• State Bank of India (SBI) has launched India’s first ‘Green
Car Loan’ (Electric Vehicle) to encourage customers to buy
electric vehicles.

• The new scheme ‘Green Car Loan’ will offer the loan at 20
basis points lower than the interest rate on the existing car
loan schemes.
• SBI has already notified 100% migration to EVs (Electric
Vehicles) by 2030 in order to decrease carbon footprints,
thus being in line with the government’s pledge of
ensuring 30% EVs on road by 2030.
State Bank of India.
• CEO: Rajnish Kumar.
• Headquarter: Mumbai.
Canara Bank, Canara HSBC OBC Life launch ‘Webassurance’.
• Canara Bank and its life insurance partner Canara HSBC
Oriental Bank of Commerce Life Insurance launched
’Webassurance’ to enable its customers to purchase life
insurance in a convenient and hassle-free way.
• This Life Insurance is jointly owned by Canara Bank (51%)
and Oriental Bank of Commerce (23%) and HSBC Insurance
Holdings (26%), the Asian insurance arm of HSBC.
Canara Bank
• MD & CEO: R A Sankara Narayanan.
• Headquarter: Banglore.
BOB Becomes 3rd Largest Bank As Dena, Vijaya Merger Take
Effect.
• The amalgamation of Vijaya Bank and Dena Bank into the
Bank of Baroda (BoB) has come into effect and all
branches of the former two will function as branches of
BoB.
• Post the merger, Bank of Baroda has become the third
largest bank in the country. The merged entity would also
receive Rs 5,042 crore fund infusion from the government.
Bank of Baroda.
• MD & CEO: P. S. Jayakumar.
• Headquarters: Vadodara, Gujarat.
• Founded in: 1908.
RBI Sets NBFC-MFIs' Average Base Rate at 9.21% For April-
June.
• The Reserve Bank set the average base rate to be charged
from borrowers by non-banking financial companies
(NBFCs) and micro-finance institutions (MFIs) at 9.21% for
the first quarter of the next fiscal (April-June).
• RBI, on the last working day of every quarter, comes out
with the average of the base rates of the five largest
commercial banks for the purpose of arriving at the
interest rates to be charged by NBFC-MFIs to its borrowers
in the ensuing quarter.
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MONTHLY GK Banking Capsule MAY 2019
RBI
• 25th Governor: Shaktikant Das,
• Headquarters: Mumbai, Founded: 1 April 1935,
Kolkata.
Kotak Mahindra Bank Becomes First Lender To Charge For
UPI Use.
• Kotak Mahindra Bank (Kotak) stated that it will charge
customers for UPI transactions starting 1st of May 2019.
• For each Kotak Bank account, the first 30 UPI fund
transfers will be free, after which a charge will be levied on
all fund transfers from the bank account.
• This will be applicable across all platforms, including
Paytm, PhonePe, Google Pay or Truecaller Pay among
others.
• The bank will charge Rs 2.50 per transaction for an amount
value below or equal to Rs 1,000, and Rs 5 per transaction
will be levied for a payment value above Rs 1,000.
ADB Cuts India's Growth Rate To 7.2%.
• The Asian Development Bank downgraded economic
growth forecasts for India and Southeast Asia for 2019 as
global risks from trade tensions to Brexit mount.
• According to the ADB’s latest Asian Development Outlook
report, gross domestic product in India will probably
increase by 7.2 % in 2019, down from a December forecast
of 7.6%.
• Southeast Asia’s growth estimate was lowered by 0.2
percentage point to 4.9%.
Asian Development Bank
• Headquarters: Manila, Philippines,
• President: Takehiko Nakao.
Karnataka Bank Signs Pact With Bharti AXA For Insurance
Products.
• Karnataka Bank has entered into an MoU with Bharti AXA
Life Insurance Company to distribute the latter’s life
insurance products.
• The bank will be able to provide a wide choice of life
insurance products to its customers across 836 branches,
supported by the products of Bharti AXA Life Insurance
Company.
• This is the third such tie-up by the bank after PNB MetLife
Life Insurance Company and LIC of India.
RBI Sets Limits For Ways and Means Advances.
• The Reserve Bank of India (RBI) in consultation with the
government of India has set the limits for Ways and Means

Advances (WMA) for the first half of the financial year
2019-20 (April 2019 to September 2019) at Rs 75000 crore.
• The Reserve Bank may trigger fresh floatation of market
loans when the Government of India utilizes 75% of the
WMA limit.
• WMA is the temporary loan facility provided by the RBI to
the center and state governments.
RBI Tweaks LCR Norms To Boost Liquidity.
• In a bid to further improve the cash position of banks, RBI
has tweaked Liquidity Coverage Ratio (LCR) norms to
provide an additional 2% window to lenders.
• As per RBI Governor Shaktikanta Das, this move will
harmonise the liquidity requirements of banks and release
additional money for lending.
• LCR indicates the proportion of highly liquid assets held by
banks to ensure their ability to meet short-term
obligations.
Lakshmi Vilas Bank To Merge With Indiabulls Housing
Finance.
• The board of Lakshmi Vilas Bank (LVB) approved the
merger of the private sector lender with Indiabulls Housing
Finance (IBH) through a share swap deal.
• The merger will also enable Tamil Nadu-based LVB to
obtain a larger geographical presence.
• The merged entity will have a net worth Rs19,472 crore
and a loan book Rs1,23,393 crore for the nine months of
FY19.
NTPC Signs Rs 2,000 crore Term Loan Pact With Canara
Bank.
• State-run power giant National Thermal Power
Corporation has inked a term-loan agreement with Canara
Bank to raise Rs 2,000 crore, which would be used to part
finance its capital expenditure.
• The loan has a door to door tenure of 15 years and will be
utilised to part finance the capital expenditure of the
NTPC.
India Highest Recipient of Remittances At $79 billion in
2018.
• As per the World Bank Report, India retained its position
as the world's top recipient of remittances with its
diaspora sending a whopping USD 79 billion back home in
2018. India was followed by China (USD 67 billion).
• The Report was titled as 'World Bank's Migration and
Development Brief'. Over the last three years, India has
registered a significant flow of remittances from USD 62.7
billion in 2016 to USD 65.3 billion 2017.
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MONTHLY GK Banking Capsule MAY 2019
RBI Issues Norms For Banks To Set Up Currency Chests.
• The Reserve Bank of India came out with guidelines for
banks to set up new currency chests, which include a
minimum area of 1,500 square feet for strong room.
• The new chests should have a processing a capacity of 6.6
lakh pieces of banknotes per day.
• The currency chests should have CBL of Rs 1,000 crore,
subject to ground realities and reasonable restrictions, at
the discretion of the Reserve Bank.
Reserve Bank Of India.
• 25th Governor: Shaktikant Das,
Headquarters: Mumbai.
• Founded: 1 April 1935, Kolkata.
1st of Its Kind, SBI and PAISALO Digital Limited Signed
Agreement.
• PAISALO Digital Limited signed the first co-origination loan
agreement with State Bank of India, the first agreement of
its kind in the country that State Bank of India has signed.
• Introducing a platform for the last mile customer, the loan
ticket is designed at Rs 10,000 to 2 lakh.
• PAISALO Digital Limited is a leading systemically important
non-deposit taking NBFC registered with the Reserve Bank
of India, in operations since 1992.
RBL Bank Partners With CreditVidya For Improving
Customer Experience.
• RBL Bank has partnered with credit profiler CreditVidya to
improve the lender's customer experience.
• Through this partnership, the private sector lender will be
able to gain significant insights into its customer base.
• RBL/Ratnakar Bank Limited is a scheduled commercial
bank, headquartered in Mumbai.
HDFC Bank Named India's No. 1 Bank: Forbes Magazine.
• HDFC Bank has been identified as number 1 bank by
customers in India, as per Forbes World's Best Bank
survey.
• In the first edition of this survey, Forbes partnered with
market research firm Statista to measure the best banks in
23 countries.
• HDFC Bank emerged as India’s No 1 bank. ICICI Bank was
at number 2 and SBI was surprisingly ranked 11th in the
list.
HDFC
• MD nd CEO : Aditya Puri.
• Headquarter : Mumbai.
Banks’ Credit Growth Up 13.24% in FY 2019.

• The financial year 2019 has ended on a relatively robust
note for banks. They clocked a 13.23% year-on-year credit
growth against 9.85% in FY2018.
• Deposit growth, at 9.99% year-on-year in FY 2019, was
also better than the 6.15% logged in FY2018, according to
the Reserve Bank of India’s scheduled banks’ statement of
position in India.
IMF & World Bank Launched 'Learning Coin' For In-House
Purpose.
• The International Monetary Fund (IMF) and the World
Bank have together launched a private blockchain with a
pseudo-token.
• The new token, called “Learning Coin” and only accessible
within the IMF and World Bank, has a purpose to teach
relevant individuals within the organizations about
blockchain.
• Though the coin has no real value – hence the description
pseudo-token – staff members who pass educational
milestones will receive the tokens which can then be
redeemed for certain rewards.
World Bank.
President: David Malpass,
Headquarters in Washington DC, USA, Established in
1944.
IMF.
MD - Christine Lagarde.
Headquarters in- Washington DC, USA
Fincare Small Finance Bank Awarded the Celent Model Bank
2019 Award.
• Fincare Small Finance Bank (SFB) has been awarded the
prestigious Celent Model Bank 2019 Award in the category
of Financial Inclusion, for 'Redesigning Lending to Reach
Small Businesses'.
• The award recognizes LAP (Loans Against Property) D.Lite,
a tab-based solution designed and developed in-house by
Fincare SFB for origination and instant underwriting of
loans against property targeted at micro and small
enterprises.
Fincare Small Finance Bank.
• MD & CEO : Mr. Rajeev Yadav.
• Founded in : 2017.
Bandhan Bank Gets CCI Nod For Merger With Gruh Finance.
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MONTHLY GK Banking Capsule MAY 2019
• Bandhan Bank has received approval from the
Competition Commission of India (CCI) for the proposed
scheme of amalgamation of Gruh Finance with the bank
• Bandhan Bank had, in January 2019, announced the
merger of Gruh Finance with it.
• The move was taken to bring down promoter holding in
the bank to 61% from 82.3%.
IDBI Bank Launches 'NRI-Insta-Online' Paperless Account
Facility.
• IDBI Bank has launched 'NRI-Insta-Online' account opening
process for NRIs residing in the Financial Action Task Force
(FATF) member countries.
• The person will not be required to furnish physical
documents as well as KYC proofs for opening an account
with the bank.
ADB Committed Highest-ever $3 bn In Sovereign Loans To
India In 2018.
• ADB committed to provide USD 3 billion in sovereign loans
to India in 2018, the highest level of assistance since
sovereign operations began in the country in 1986, stated
the annual report of the multilateral lending agency
• In all, the Asian Development Bank (ADB), owned by 68
member countries, committed a total of USD 3.88 billion,
including sovereign loans and co-financing during the year
ended December 2018.
Canara Bank Becomes The First Public Sector Bank In India
to Meet RBI’s EMV Mandate.
• ACI Worldwide, a global provider of real-time electronic
payment and banking solutions, announced that Canara
Bank has successfully rolled out major new functionality to
support EMV card acquiring across its ATM network and
Aadhaar Authentication, leveraging ACI’s UP Retail
Payments solution to achieve market firsts.
• The bank has tapped into the extensive functionality of
ACI’s UP Retail Payments solution for EMV shift.
Exim Bank Funds Projects Worth USD 267 mn In Rwanda.
• Exim Bank has provided soft loans of USD 266.60 million to
Rwanda for various projects.
• The funding, done in three separate tranches to Rwanda,
is to support agricultural projects, development of special
economic zones (SEZs) and for financing a road project in
the African nation.
Financial Schemes & MoUs
 MONTHLY GK Banking Capsule MAY 2019

Reliance Retail Became Inda’s first Retail Company to Cross

Rs.1 Lakh Crore Annual Revenue.
BuyUcoin Introduces First Indian Platform for Wholesale
Cryptocurrency Trading.
• Reliance retail has become the first Indian retail company • BuyUcoin, second oldest Cryptocurrency Exchange in India,
to clock more than Rs 1 lakh crore in annual revenues. has introduced a new and unique platform for wholesale
• The retail venture of Reliance Industries reported an cryptocurrency trading.
income of Rs 1,30,556 crore for 2018-19, 89% more than • It is also known as OTC (Over-the-counter) Desk that
the previous year’s Rs 69,198 crore. allows users to trade on a large scale with low price
fluctuations.
Bajaj Allianz Launches Total Health Secure Goal Plan.
RBI Sells Entire Stake In NHB, Nabard to Government for INR
1,470 crore.
• Bajaj Allianz General Insurance and Bajaj Allianz Life
• The Reserve Bank of India (RBI) has divested its entire
Insurance in collaboration launched their first product
stake held in National Housing Bank (NHB), and National
'Total Health Secure Goal'.
Bank for Agriculture and Rural Development (Nabard) to
• The new insurance product is a combination of two
the government, which now holds 100% in these entities.
existing plans - Health Guard policy by Bajaj Allianz
• The transactions were completed in February (Nabard)
General Insurance, and iSecure from Bajaj Allianz Life
and March (NHB). RBI had 100% shareholding in NHB,
Insurance.
which was divested for INR 1,450 crore.
• RBI had 72.5% stake in Nabard, out of which 71.5%, worth
Deposits In Jan Dhan Accounts are set to cross Rs 1 Lakh INR1,430 crore was divested in October 2010 and the
Crore mark. residual shareholding was divested in February 2019 for
INR 20 crore.
• The scheme was launched on 28th August 2014 by the
Modi-government with an aim to provide universal access
to banking facilities to all households. Microsoft Becomes World’s Third Company To Be Worth $1
• On 3rd April, the total balance in the Jan Dhan accounts Trillion.
was at Rs 97,665.66 and the total number of Jan Dhan
accounts crossed 35.39 crores.
• More than 27.89 crores account holders have been issued • Microsoft has reached a valuation of one trillion dollars for
the Rupay debit cards. the first time after posting an increase in profits.
• The government increased the accident insurance cover to • It makes the software giant only the third publicly-traded
Rs 2 lakh from Rs 1 lakh for new accounts opened after company in history to reach the threshold after Apple and
28th August 2018 and the overdraft limit was also doubled Amazon passed it in 2018.
to Rs 10,000. • Microsoft’s current valuation also means that it has again
taken over Apple as the world’s most valuable company.
SEBI Reduces Minimum Subscription Requirement for REITs,
InvITs.
RBI Introduces ₹ 20 Banknote In Mahatma Gandhi (New)
Series.
• Markets regulator SEBI (Securities and Exchange Board of
India) has reduced the minimum subscription requirement
• The Reserve Bank of India will shortly issue ₹ 20
as well as defined trading lots for Real Estate Investment
denomination banknotes in the Mahatma Gandhi (New)
Trusts (REITs) and Infrastructure Investment Trusts
Series, bearing the signature of Shri Shaktikanta Das,
(InvITs).
Governor, Reserve Bank of India.
• SEBI has also increased the leverage limit for InvITs from
• The new denomination has the motif of Ellora Caves on
49% to 70%.
the reverse, depicting the country's cultural heritage. The
• While making an initial public offer and follow-on offer,
base colour of the note is Greenish Yellow. The dimension
the minimum subscription shall not be less than Rs 1 lakh
of the banknote will be 63 mm x 129 mm.
for InvITs and Rs 50,000 for REITs.
• Currently, in the case of a REIT issue, the minimum
subscription from any investor in an initial offer and HCL Completes Acquisition Of Strong-Bridge Envision.
follow-on public offer is not less than Rs 2 lakh, while the
same is Rs 10 lakh in case of InvIT.

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 MONTHLY GK Banking Capsule MAY 2019

• IT major HCL Technologies stated that its acquisition of US- • BIS is the National Standard Body of India established
based Strong-Bridge Envision has been completed. under the BIS Act 2016.
• HCL had recently agreed to acquire the Seattle-based
company to enhance its digital transformation consulting
capabilities.
• According to reports, the deal was worth 45 million
dollars. Strong-Bridge Envision is now part of its global
digital and analytics business called HCL Mode 2 services.

Reliance Mutual Fund Launches Voice-Based Financial

Transactions

• Reliance Nippon Life Asset Management (RNAM) has

joined hands with Google to enable the customers of
Reliance Mutual Fund to carry out voice-based financial
transactions.
• With this, RNAM becomes the first company in India, to
provide a conversational interface that would help
customers regarding funds transactions.

BSE, India INX Become First Indian Exchanges To Sign MoU

With Moscow Exchange.

• BSE (earlier known as Bombay Stock Exchange) and India

International Exchange (India INX) have signed a
memorandum of understanding with Moscow Exchange
(MOEX) to connect investor community and companies in Paytm Money Receives SEBI Approval To Start Stock Broking
both countries besides allowing a capital formation Services.
platform.
• BSE and India INX are the first Indian exchanges to enter
into the MoU with Moscow exchange. • The Securities and Exchange Board of India (SEBI) has
• The exchange companies have agreed to the secondment given approval to Paytm Money the investment and
of senior personnel to enhance understanding of activities wealth management platform of the mobile payments
in each other’s market. company to start offering broking services.
• It had applied for the licence in October 2018.
• Paytm Money has also received membership of NSE and
Bombay Stock Exchange. BSE.
• MD & CEO: Ashishkumar Chauhan,
• MOEX CEO: Alexander Afanasiev RBI tweaks LCR Norms To Boost Liquidity.
BIS and IIT-Delhi Inks MoU On Standardisation and
Conformity Assessment.
• In a bid to further improve the cash position of banks, RBI
has tweaked Liquidity Coverage Ratio (LCR) norms to
provide an additional 2% window to lenders.
• The Bureau of Indian Standards (BIS) has inked an MoU
• As per RBI Governor Shaktikanta Das, this move will
with the Indian Institute of Technology, Delhi (IIT-D) to
harmonise the liquidity requirements of banks and release
collaborate in the field of standardisation and conformity
additional money for lending.
assessment.
• LCR indicates the proportion of highly liquid assets held by
• According to the MoU, IIT Delhi will provide infrastructure
banks to ensure their ability to meet short-term
support for research and development projects of
obligations.
relevance to standardisation and BIS will provide financial
support to IIT Delhi for projects.

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Fitch keeps India's rating unchanged at BBB.
• Rating agency Fitch retained India's sovereign rating at
'BBB-', the lowest investment grade, with a stable outlook
for the 13th straight year.
• Fitch expects growth of 6.8% in current fiscal 19-20 and
7.1% in the next fiscal 20-21.
Fitch.
• Headquarters- New York
• CEO- Paul Taylor.
• Founded-1914.
CCI Approves L&T's Proposal To Acquire Up to 66.15% Stake
in Mindtree.
• The Competition Commission of India (CCI) approved
engineering and construction major Larsen & Toubro’s
(L&T’s) proposal to acquire up to 66.15% stake in
Mindtree.
• With this nod, L&T has overcome the first major regulatory
hurdle in its bid for ‘hostile’ takeover of the Bengaluru-
headquartered IT services firm.
Government Retains Interest Rate For General Provident
Fund at 8%.
• The government has retained the interest rate for General
Provident Fund (GPF), Contributory Provident Fund and
other related schemes at 8 per cent for the first quarter of
the current financial year.
• The interest rate on these funds was at 8% in January-
March quarter of 2018-19 and government kept it
unchanged for April to June for 2019-20.
• The interest rate will be applicable on provident funds of
central government employees, railways and defence
forces.
TCS, Google Partner To Build Industry-Specific Cloud
Solutions.
• Tata Consultancy Services partnered with Google Cloud to
build industry-specific cloud solutions. TCS’ solutions on
Google Cloud Platform (GCP) will help enterprises build
secure, cloud-native analytics platforms.
• It will enable high levels of personalization, and are cost-
effective, easy to maintain, and future ready.
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MONTHLY GK Banking Capsule MAY 2019
• CEO of Google: Sundar Pichai
• CEO of Tata sons: Natarajan Chandrasekaran.
PayU Acquires Wibmo For USD 70 mn.
• PayU, Digital payments security and payment facilitator
has acquired Wibmo, a US-based financial technology firm
for USD 70 million (about Rs 484 crore) to assist the
company scale-up its business.
• Under the agreement, PayU and Wibmo businesses will
continue to run separately.
• Wibmo will continue to operate and serve all of its clients
as a wholly-owned subsidiary of PayU.
IDRBT Sets Up 5G Lab For Banking, Financial Sector.
• The Institute for Development and Research in Banking
Technology (IDRBT), an arm of Reserve Bank of India, has
launched a 5G Use Cases Lab for banking and financial
sector.
• The 5G technology, along with blockchain, will be
progressively adopted by banks.
• Department Of Telecommunications had already launched
test beds for 5G use in the academia in Hyderabad,
Chennai and Bangalore to develop 5G for Indian use.
India Becomes Net Steel Importer In 2018-19.
• India was a net importer of steel during the 2018-19 fiscal
year, the first time in three years, as the country lost
market share among its traditional steel buyers and
imports jumped on demand for higher-quality steel
domestically.
• The country's finished steel exports fell by 34% in the fiscal
year that ended in March to 6.36 million tonnes, according
to preliminary government data given to Reuters on
Friday. During the same period, finished steel imports rose
4.7% to 7.84 million tonnes.
CRISIL Board Gives Nod For Transfer Of Ratings Business To
New Subsidiary.
• CRISIL Ltd, a diversified global analytics company, will
transfer its rating business to its proposed new wholly-
owned subsidiary.
• The board of CRISIL gave the nod for the transfer, which is
being done to comply with SEBI norms of 2018.

• Earlier, SEBI had modified its regulations for credit rating
agencies and mandated the segregation of rating and non-
ratings businesses of credit-rating agencies.
• CRISIL was formerly known as Credit Rating Information
Services of India Limited.
ETMONEY Becomes India’s First Comprehensive Financial
Services App To Integrate With UPI.
• ETMONEY India’s largest app for financial services has
integrated with Unified Payment Interface (UPI) as a
payment method.
• The reason for this is to double its monthly user base by
the end of 2019
• This integration will simplify the mutual fund payment for
millions of ETMONEY users.
• ETMONEY is owned by Times Internet which is a part of
the Times Group.
• UPI is an instant real-time payment system developed by
National Payments Corporation of India (NPCI) which
facilitates inter-bank transactions.
Appointments and Resignations
MD Karnam Sekar Appointed As IOB's New MD & CEO.
• Former Dena Bank MD & CEO Karnam Sekar is set to take
over as the new Managing Director and CEO of Indian
Overseas Bank from July 1, 2019. He will take over from R
Subramaniakumar.
• Earlier Sekar was the MD & CEO of Dena Bank till
September 2018.
• He was also the Deputy Managing Director and Chief
Credit Officer in State Bank of India heading its highest
Credit Committee.
Vijay Chandok Appointed As MD And CEO Of ICICI
Securities.
• Executive Director of ICICI Bank, Vijay Chandok has been
appointed as MD and CEO of ICICI Securities, a subsidiary
of ICICI bank.
• He will succeed Shilpa Naval Kumar. He joined the ICICI
Group in 1993.
• ICICI Bank Tagline: Hum Hain Na!
Google India Head Rajan Anandan Resigned.
• Rajan Anandan, vice president for Google India and
Southeast Asia, and essentially heading Google in India, is
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MONTHLY GK Banking Capsule MAY 2019
leaving the company after an eight-year stint. Anandan
had joined Google from Microsoft India in 2010.
• Vikas Agnihotri, who is currently serving as Google's
country director for sales, will take on the interim
responsibility until the company finds a new managing
director.
Vipin Anand Takes Over As Managing Director of LIC.
• Vipin Anand has taken charge as Managing Director of Life
Insurance Corporation of India. Prior to this, he was in
charge of LIC’s Western Zone, headquartered at Mumbai.
• During his service of more than 35 years with the
organisation, Anand has handled several assignments in
various capacities and departments across different
locations in India.
• MR Kumar is the present Chairman of Life Insurance
Corporation (LIC).
CS Rajan Appointed MD of IL&FS.
• CS Rajan has been appointed Managing Director while
Vineet Nayyar named as Executive Vice-Chairman of
Infrastructure Leasing & Financial Services (IL&FS).
• Rest of the new board comprises of Bijay Kumar as the
deputy managing director and GC Chaturvedi, Nand
Kishore, Malini Shankar, and N Srinivasan as non-executive
directors.
David Malpass Named World Bank President.
• David Malpass has been appointed as the President of the
World Bank.
• He was US President Donald Trump's nominee and won
unanimous approval from the institution's executive
board.
• He has replaced Former World Bank President Jim Yong
Kim who left in January 2019.
• Malpass was former Bear Stearns and Co chief economist
who advised Trump's 2016 election campaign.
Deutsche Bank Appoints Kaushik Shaparia As CEO For India.
• Deutsche Bank appointed Kaushik Shaparia as the chief
executive officer for India to succeed Ravneet Gill.
• Gill left the bank to head private lender YES Bank.
Shaparia’s appointment will be effective from May 2019.
• Shaparia served as Asia Pacific Head of Corporate Banking
Coverage within Institutional and Treasury Coverage, as

well as Global Head of Subsidiary Coverage and has a 30-
year experience at the bank.
Important Banking terms.
1. Repo Rate
When RBI provides a loan to the bank for short-term
between 1 to 90, RBI takes some interest from the bank
which is termed as Repo Rate.
2. Reverse Repo Rate
When bank deposit it's excess money in RBI then RBI provides
some interest to that bank. This interest is known as Reverse
Repo Rate.
3. SLR –(Statutory Liquidity Ratio)
Every bank has to maintain a certain % of their total deposits
in the form of (Gold + Cash + bonds + Securities) with
themselves at the end of every business days. Current SLR is
20.75%.
4. Retail banking
Retail banking is a type of banking in which direct dealing
with retail customers is done.
This type of banking is also popularly known as consumer
banking or personal banking.
It is the visible face of banking to the general public.
5. Bitcoin
Bitcoin is a virtual currency/ cryptocurrency and a payment
system.
It can be defined as decentralized means of tracking and
assigning wealth or economy, it is a software protocol.
Bitcoin uses two cryptographic keys, one public (username)
and one private (password) are generated.
1Bitcoin= 108 Satoshi.
6. Call money
Call/Notice money is the money borrowed on demand for a
very short period. When money is lent for a day it is known as
Call Money.
Read: Money Market Instruments
7. Notice money
When the money is borrowed or lent for more than a day up
to 14 days it is called Notice Money.
8. Difference between Capital market and Money market
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A capital market is an organised market which provides long-
term finance for business.
Whereas Money market provides short-term finance for
business
9. Scheduled bank
Banks which are included in the 2nd Schedule of RBI Act 1934
are known as a scheduled commercial bank. These banks
should fulfil two conditions:
Paid up capital and collected funds should not be less than
Rs.5 Lacs.
Any activity of the Bank should not adversely affect the
interests of the customers.
10. Non Performing Assets
NPA is an asset of a bank which is not producing any income.
Bank Usually classify as nonperforming assets any
commercial loans which are more than 90 days overdue and
any consumer loans which are more than 180 days overdue.
11. Money Inflation
Money Inflation is a State in which the Value of Money is
Falling and the Prices are rising, over a period of time.
12. Negative interest rate
When there is less demand for loans the banks park their
excess fund with the central bank by which they get interest.
Negative interest rate policy (NIRP) means that central banks
will deduct money from commercial banks for depositing
their money with the central bank. Commercial banks, in
turn, will do the same to common people.
So the end effect is that people will have to pay money to
banks to hold their cash.
13. Green Banking
Green banking means promoting environmentally friendly
practices and reducing your carbon footprints from your
banking activities.
Green banking aims at improving the operations and
technology along with making the clients habits environment-
friendly in the banking business.
It is like normal banking along with the consideration for
social as well as environmental factors for protecting the
environment.
14. Blockchain system
These days the transactions in the banking sector are
becoming a very tedious task and so as to ensure that this
tedious task to be removed, our banking sector is trying to
emerge towards blockchain technology.

To simplify the transactions without the help of any third
party in a secure manner is really a great challenge, but to
overcome this challenge an anonymous online ledger
(collection of financial accounts) which uses the data
structure to simplify it is called blockchain technology.
15. Balloon mortgage
A mortgage is a transfer of a right to stable property for the
security purpose of a loan amount.
Balloon mortgages are just for short term and it has a fixed
rate mortgage.
In balloon mortgage, a monthly payment is lower because of
large payment at the end of a term.
A balloon payment is for honest and qualified borrowers who
have a good credit history.
16. Retail credit operations
Retail Credit Operations means the sequential process which
involves screening, evaluation of risk(s), and ensuring that the
bank lends to a creditworthy client from the asset products
applications sourced.
17. Skimming
Skimming is a method used by fraudsters to capture
customer's personal or account information of credit card.
Customer's card is swiped through the skimmer and the
information contained in the magnetic strip on the card is
then read into and stored on the skimmer or an attached
computer.
Skimming is a tactic used predominantly for credit-card fraud,
but it is also a tactic that is gaining in popularity among
identity thieves.
18. Money laundering
Money laundering is a process of conversion of illegal money
from various sources to appear to have originated from
legitimated (Legal) source.
The major sources of illegal money are tax evasion, bribe,
Smuggling etc.
19. Cheque
A cheque is an unconditional order addressed to a banker,
signed by the person who has deposited money with a
banker, requesting him to pay on demand a certain sum of
money only to the order of the certain person or to the
bearer of the instrument.
20. Direct Debit
Direct Debit is a financial activity in which one person
withdraws funds from another person's bank account.
It is a facility in which the payee withdraws the amount from
the payer's account, the payer has instructed the bank to
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allow the payee directly withdraw the amount from the
account.
21. Cash Credit
Cash Credit is a proper limit sanctioned by the bank to the
borrowing manufacturing/trading unit against the value of
the raw materials, semi-finished goods and finished goods
including stores.
22. Bill of Exchange
A bill of exchange is a non- interest bearing written order
which is used primarily in foreign trade which binds one party
to pay a fixed amount of money to another party at a decided
future date.
A bill of exchange is signed by the creditor and accepted by a
debtor.
23. Cash Reserves Ratio
Every bank Maintain certain % of their total deposits with RBI
in the form of Cash and Net demand & Time Liabilities.
Current CRR is 4%. Every Bank has to pay the amount to RBI
on every 15 Days.
24. Bank Rate
Bank rate is also termed as “Discount Rate”
The rate through which RBI charges certain % for providing
money to other banks without any security for a Long period
of time for 90 Days & Current Bank Rate is 6.75%.
25. Marginal standing facility
MSF is the rate through which bank can borrow funds for
Short time – Overnight basis.
Current MSF is 6.75%.
26. Minimum Reserve system of RBI
The current system of the Indian government to issue notes is
“Minimum Reserve System”.
Under this policy, the minimum reserves to be maintained in
the form of gold and foreign exchange should consist of
rupees 200 crores.
Out this reserve, the value of gold to be maintained is rupees
115 crores.
This system was introduced in 1956 replacing the
proportional reserve system.
27. Clean note policy of RBI
Lots of people in our country have a bad habit of writing
something on the currency note, folding currency note, also
somebody staple it which spoils the Note and reduces notes
durability.

So to avoid such occurrences RBI introduced the Clean Note
Policy in 2001 in an order to increase the life of currency
notes.
The main objective of this Clean Note Policy is to provide
good quality currency notes and coins to the citizens of our
country.
28. CAMELS rating system
CAMELS is a rating system developed in the US that is used by
supervisory authorities to rate banks and other financial
institutions.
It applies to every bank in the U.S and is also used by various
financial institutions outside the U.S.
Each factor is assigned a weight as follows:
Capital adequacy 20 %
Asset quality 20%
Management 25%
Earnings 15%
Liquidity 10%
Sensitivity 10%
29. Masala Bonds
The bonds listed on the London Stock Exchange (LSE) is
termed as Masala Bonds.
These bonds are offered and settled in US dollar to hike
Indian Rupee in International market.
These bonds help to raise Indian rupees from International
investors for infrastructural development in India.
International Financial Corporation (IFC) converts bond from
dollars into rupees and uses the rupees to finance private
sector investment in India.
30. Core Banking Solutions
Core Banking Solution (CBS) is the networking of branches,
which enables customers to operate their accounts, and avail
banking services from any branch of the Bank on CBS
network, regardless of where he maintains his account.
The customer is no more the customer of a Branch.
He becomes the Bank’s Customer.
31. Unified Payment Interface
This interface will integrate the entire payment systems in
India.
It uses a single application programme interface with a series
of Application Programme interface (API’S).
The mobile devices are the primary object for all the
payments.
32. Micro ATMs
Micro ATMs are not any special type of ATMs
It is the advanced version of Point of Sale (PoS) having an
additional feature of Biometric scanning.
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It is also known as a mini version of ATMs.
These machines are connected with the GPRS (General
Packet Radio Service) mobile internet and it uses the Core
Banking Solution (CBS) platform to perform the different
types of services.
33. Letter of Credit
The letter of credit is one of the negotiable instrument.
It is given by the bank, that guarantee’s buyer’s payment to
the seller shall be received on time along with the proposed
amount to be paid.
In this instinct, if the buyer is unable to make the agreed
payment to the seller, then the bank will cover the full or
remaining amount of purchase.
34. Bancassurance
Bancassurance is the concept of selling insurance products of
insurance companies by banks.
The bank acts as an agent and promotes Banca
(bancassurance) products under section 6(1)(o) of the
Banking Regulation Act, 1949.
It was originated in Europe in the 1980s and was successful.
The bancassurance business model is a globally accepted
profitable business.
35. Banking Ombudsmen
Banking Ombudsman is a senior official appointed by RBI.
He handles and redresses customer complaints against
deficiency in certain banking services.
The Banking Ombudsman Scheme was introduced under
Section 35 A of the Banking Regulation Act, 1949 by RBI with
effect from 1995.
36. The Balance of Trade
The difference between the country’s exports and the value
of its imports are known as the Balance of Trade.
It normally incorporates trade in services unless mentioned
as the balance of merchandise trade.
It includes earnings (interest, dividends, etc.) on financial
assets.
37. A Balance of Payments
A list that states a country’s transactions with other countries
for a certain time period (generally 1 year).
Payments into the country (receipts) are entered as positive
numbers, called credits.
Payments out of the country (payments) are entered as
negative numbers called debts.
A single number summarises the country’s international
transactions: the balance of payments surplus.
Difference between Balance of Trade and Balance of Payment
38. NOSTRO Account

A NOSTRO account is one which is maintained by an Indian
Bank in the foreign countries.
39. VOSTRO Account
A VOSTRO account is one which is maintained in India by a
foreign bank with their corresponding bank.
Must read: Types of Foreign Currency Accounts
40. LIBOR
The full form of LIBOR is the London Interbank Offered Rate.
It is the interest rate at which funds are borrowed by banks in
marketable size, from other banks in the London interbank
market.
41. MIBOR
The full form of MIBOR is Mumbai Interbank Offered Rate.
It is the interest rate at which funds are borrowed by banks in
marketable size, from other banks in the Mumbai interbank
market.
42. CASA Account
CASA stands for Current Account Savings Account.
The CASA ratio displays the value of deposits maintained in a
bank in the form of current and savings account deposits in
the total deposit.
A higher CASA ratio means the better operating efficiency of
the bank.
43. RAFA Account
RAFA stands for Recurring Deposit Account Fixed Deposit
Account.
The RAFA ratio shows how much deposit a bank has in the
form of Recurring and fixed deposits.
44. DEMAT account
The full form of Demat Account is Dematerialized account.
This is a type of bank account for citizens in India so that they
can trade in stocks or debentures which are listed in the stock
market.
Just as a savings account contains money saved, a demat
account has stocks saved.
45. Legal Tender
As per provisions of coinage Act 1996, bank notes, currency
notes and coins (Re. 1 and above) are legal tender for the
unlimited amount.
The subsidiary coins (below Re. 1) are legal tenders for the
sum not exceeding Re 1.
Issue of 1, 2 and 3 paisa coins discontinued wef Sep 16, 1981.
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46. Currency Chest
Currency chests are operated by the Reserve Bank of India
(RBI) so that they can provide good quality currency notes to
the public.
However, RBI has appointed commercial banks to open and
monitor currency chests on behalf of RBI.
The money kept in currency chests in the commercial banks is
considered to be kept in RBI.
47. Insolvency
An organization, a family, person, or company is declared as
insolvent when they are unable to pay their debts back on
time.
One of the most common solutions for insolvency is
bankruptcy.
48. Bankruptcy
Bankruptcy is a legal declaration of a person who is unable to
pay off debts.
In generally, Bankruptcy is of two types- Reorganization and
Liquidation bankruptcy.
Under the bankruptcy of reorganization, debtors should
restructure their bill plans to make them more easily met.
Whereas under liquidation bankruptcy, Debtors has to sell its
assets to make money so that they can pay off their creditors.
49. Amortisation
Amortization is a periodic payment of debt like a loan or a
mortgage.
Amortization is the arrangement of a lump sum cash flow
into many periodic instalments over a span of time, which is
also called amortization agenda.
50. Credit Crunch
A credit crunch is also known as a Credit squeeze or credit
crisis.
A credit crunch is a condition in which there is an immediate
decline in the availability of a loan or the credit.
A situation in which suddenly the credit becomes difficult to
get.
Sometimes it can be done by reverse actions like by strict
rules and regulations to avail the fund from the financial
institutions like banks, NBFCs, and many other lenders.