Banking Updates

8261802533
Email:bankingupdates2020@gmail.com

MORNING BANKING & FINANCIAL NEWS UPDATES

ISSUE: 246 2023 08 June 2023

RBI KEY RATES FOREX (RBI REF. ) EQUITY /COMM. MARKET

Repo Rate: 6.50% INR / 1 USD : 82.5339 Sensex: 63142.96 (+350.08)
SDF: 6.25% INR / 1 GBP : 102.4020 NIFTY: 18726.40 (+127.40)
MSF /Bank Rate: 6.75% INR / 1 EUR : 88.1049 Bnk NIFTY: 44275.30 (+110.70)
CRR: 4.50% INR /100 JPY: 59.2400 Gold: 59,441.00 (-544.00)
SLR: 18.00% Silver: 71,740.00 (-216.00)

RBI adds 8 platforms in the alert list of unauthorised

forex trading platform: RBI, on June 7, said it has added eight
more entities and platforms to the alert list of unauthorised forex
trading platforms. The new additions to the alert list include QFX
Markets, 2Win Trade, Guru Trade7 Limited, Bric Trade and Rubik
Trade. Dream Trade, Mini Trade and Trust Trade, the central bank
said in a press release. The Alert List contains names of entities,
which are neither authorised to deal in forex nor authorised to operate
electronic trading platforms (ETP) for forex transactions.The list also
contains names of entities or platforms or websites, which appear to
be promoting unauthorised ETP. The methods may include
advertisements of such unauthorised entities or claiming to be
providing training/advisory services.
(Moneycontrol)
Cabinet approves Rs 89,047 crore third revival package
for BSNL: The Union Cabinet on June 7 approved a third revival
package of Rs 89,047 crore for debt-ridden telecom company BSNL.
The package for Bharat Sanchar Nigam Limited (BSNL) includes an
allotment of 4G/5G spectrum through equity infusion. The authorised
capital of BSNL will be increased from Rs 1.5 lakh crore to Rs 2.1
lakh crore, the government said in a statement. Briefing the press on
the decisions, Union Minister Piyush Goyal said that BSNL has 4G
coverage in many areas of the country and is close to covering almost
the entire country. "As for 5G, the concerned minister will inform you
accordingly," he added. With this revival package, BSNL will emerge
as a stable telecom service provider focused on providing
connectivity in remote parts of India.
(Moneycontrol)
Axis Bank joins Rs 3-trillion market cap club; stock
surges 7% in one week: Axis Bank has joined the Rs 3-trillion
market capitalisation (market cap) club, as the stock price of private
sector lender hit a new high of Rs 978.85 on the BSE in Wednesday’s
intra-day trade. At 10:27 AM; with a market cap of Rs 3.02 trillion,
Axis Bank stood at 17th position in the overall ranking of the BSE
listed companies, data shows. Among banking space, HDFC Bank
tops the list with a market cap of Rs 8.97 trillion, followed by ICICI
Bank (Rs 6.57 trillion), State Bank of India (SBI) (Rs 5.24 trillion) and
Kotak Mahindra Bank (Rs 3.87 trillion). In past one week, Axis Bank
has outperformed the market by gaining 7 per cent, as compared to
0.34 per cent rise in the S&P BSE Sensex. HDFC Bank and ICICI
Bank were down 1 per cent, while SBI and Kotak Mahindra Bank
were up less than 1 per cent during this period. Axis Bank is the third
largest private sector bank in India with a balance sheet size of Rs
13.17 trillion as on March 2023.
(Business Standard)
HDFC Bank introduces Millennia Credit Card: HDFC Bank
has introduced a new credit card — Millennia — offering cashback.
The card comes with contactless technology allowing customers to
‘tap and pay’ via POS machine. The HDFC Millennia Credit card
offers cashback and reward points on Amazon, Flipkart, and other e-
commerce platforms. In addition, the card also offers 1 per cent
cashback on offline purchases, smart EMI, and lounge access for
free, among others.Millennia credit card can be used for Amazon,
Flipkart, BookMyShow, Cult.fit, and Myntra, to earn 5 per cent
cashback points. In every billing, a maximum reward of ₹1000 would
be offered.
(Business Line)
RBI allows all factors to participate as financiers on
TReDS platforms: To augment the availability of financiers on
TReDS (Trade Receivables Discounting System), the Reserve Bank
of India (RBI) on Wednesday, allowed all entities that can undertake
factoring business, to participate as financiers on such platforms.
“The Factoring Regulation Act, 2011 (FRA) allows certain other
entities / institutions to undertake factoring transactions. Accordingly,
all entities / institutions allowed to undertake factoring business under
FRA and the rules / regulations made thereunder, are now permitted
to participate as financiers in TReDS,” the central bank notified.
TReDS transactions fall under the ambit of ‘factoring business’ and
currently only banks, NBFC-Factors and other financial institutions
can be financiers. The RBI also permitted insurance facility for
TReDS transactions to aid financiers to hedge default risk. This is
because financiers usually place their bids keeping in view the credit
rating of buyers, and are not inclined to bid for payables of low rated
buyers.
(Business Line)
Union cabinet raises MSP for summer-sown crops
including cotton: The Union Cabinet on Wednesday approved an
increased Minimum Support Price (MSP) for Kharif crops for
marketing season 2023-24. This move is to ensure remunerative
prices to growers for their produce and to encourage crop
diversification. The cabinet approved a Rs 143 hike in paddy MSP to
Rs 2,183 per quintal for 2023-24 while moong MSP saw the highest
increase at Rs 8,558 per quintal. MSP for soybean currently stands
at Rs 4,600 per quintal, sesamum at Rs 8,635 per quintal, nigerseed
at Rs 7,734 per quintal and cotton stands at Rs 6,620 per quintal. The
MSP for cotton (long staple) currently stands at Rs 7,020 per quintal.
(Economic Times)
GAME and SIDBI launch “NBFC Growth Accelerator
Program” to ease funding woes of MSMEs: Global Alliance
for Mass Entrepreneurship (GAME), a mass entrepreneurship
enablement platform and Small Industries Development Bank of India
(SIDBI), the principal financing body of small enterprises, on
Wednesday, announced their joint partnership to launch the NBFC
Growth Acceleration Program (NGAP). This programme aims to
handhold smaller NBFCs that have at least 60 per cent of their
exposure to MSMEs.
(Financial Express)
RBI panel recommends penalties for banks if they lose
your property documents: RBI, has proposed that banks and
lenders who provide home loans should compensate borrowers and
pay a monetary fine if they lose the borrowers' property documents.
Typically, banks and lenders request original property documents
and retain possession of them until the loans are fully repaid. These
recommendations were included in a committee report released on
June 5th, which outlined various suggestions for enhancing customer
service standards in regulated entities. In May 2022, the RBI formed
a six-member committee, chaired by BP Kanungo, with the objective
of examining and reviewing customer services in regulated entities to
safeguard customer interests.
(Moneycontrol)
RBI committee proposes guidelines on gold loan
recovery in case of borrower’s death: The Reserve Bank of
India (RBI) may soon issue guidelines for gold loan companies on
settling the outstanding debt in case of death of the borrower,
communicating terms and conditions in local languages, process to
refund surplus from the auction of gold and more. The recent report
from the BP Kanungo committee on customer service standards is a
commendable step toward establishing uniformity and clarity across
the industry, ensuring a consistent policy that safeguards the
interests of customers and the one that instils trust and confidence
for all stakeholders involved
(Moneycontrol)
LIC raises Tech Mahindra stake by 2 pts via open-
market acquisition to 8.8%:Life Insurance Corporation of India
(LIC) has raised its stake in IT firm Tech Mahindra Ltd by about 2 per
cent through open market acquisition. Following this, holding in Tech
Mahindra Ltd increased to 8.84 per cent
(Business Standard)
TODAY’S FINANCIAL TERMINOLOGY/CONCEPTS
ACCOUNT AGGREGATORS
❖ An Account Aggregator (AA) is a type of RBI regulated entity (with an
NBFC-AA license) that helps an individual securely and digitally
access and share information from one financial institution they have
an account with to any other regulated financial institution in the AA
network. Data cannot be shared without the consent of the individual.
❖ The account aggregator (AA) framework facilitates sharing of financial
and other information on a real-time basis and in a data blind manner
between different regulated entities.
❖ There will be many Account Aggregators an individual can choose
between.
❖ India's financial system involves many hassles for consumers today -
- sharing physical signed and scanned copies of bank statements,
running around to notarise or stamp documents, or having to share
your personal username and password to give your financial history
to a third party. The Account Aggregator network would replace all
these with a simple, mobile-based, simple, and safe digital data
access & sharing process. This will create opportunities for new kinds
of services -- eg new types of loans.
❖ The individual's bank just needs to join the Account Aggregator
network.
Have a nice day
Banking Updates
CLICK HERE FOR DAILY UPDATES
(With Name & Bank Name)
(If not joined our group so far)

Get all notifications of RBI and other regulators, financial awareness, various
updated topics of Banking, Recalled Questions in the monthly e-Magazine
“The Banking & Financial Updates”
CLICK HERE TO SUBSCRIBE
 (Exclusive e-magazine on
Banking studies)
CLICK HERE TO
SUBSCRIBE

•
•

•
•
•