Banking and Finance Current Affairs | June, 2021

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Read Current Affairs on Quickbytes and stay updated with latest Current Affairs events on daily basis. Our daily Current affairs on Banking and Finance in June 2021 are for all those aspirants preparing for various competitive exams and entrance tests like Bank PO & Clerk, IBPS PO, Insurance SSC, PSC, UPSC and more.

Banking and Finance Current Affairs | June, 2021

Banking and Finance - June, 2021

16th June, 2021

RBI allows Bharat Bill Payment System to offer mobile prepaid recharges

Reserve Bank of India (RBI) has granted permission to Bharat Bill Payment System (BBPS) to offer the feature of mobile prepaid recharge feature to its users. This will help BBPS in expanding its horizons in the mobile prepaid recharge sector. BBPS is an inter-operator platform that deals with the recurring bill payments like DTH services, electricity, gas, water and telecom. BBPS offers ‘anytime anywhere’ bill payment services to its users through its network of physical agent locations using online payment mode. BBPS is under the direct control of the National Payments Corporation of India (NPCI).

14th June, 2021

RBI issues norms for FATF Non-Compliant Jurisdictions’ in Payment System Operators

Reserve Bank of India has issued regulations regarding investments in Payment System Operators (PSOs) by the new entities belonging to the countries that are non-compliant with the Financial Action Task Force (FATF). As per the new regulations, new investors from the non-compliant FATF countries will not be permitted to directly or indirectly acquire significant stakes (more than 20 %) in the existing PSOs. The FATF is a global inter-governmental organization that sets parameters and standards for combating money laundering for financing the terrorist organizations.   

13th June, 2021

Bank of Maharashtra tops among the public-sector banks in terms of growth in loans and deposits

As per the data released by Bank of Maharashtra, the bank has topped among the Public Sector Undertaking (PSU) banks in India in terms of growth in loans and deposits. Bank of Maharashtra has recorded an increase of 13.45 % in gross advances accounting for INR 1.07 lakh crore in FY21. As per the data, Punjab & Sind Bank has secured the second position with a growth of 8.39 % in advances with aggregate loans amounting to INR 67,811 crore in FY21.  

12th June, 2021

India’s FOREX reserve crosses the USD 600 billion mark for the 1st time, says RBI data

As per the recent data released by the Reserve Bank of India (RBI), India’s foreign exchange (FOREX) reserve has crossed the mark of USD 600 billion for the first time. India’s FOREX reserve reached USD 605.008 billion on 4th June, 2021 as a result of rise in Foreign Currency Assets (FCAs) that includes the effect of appreciation or depreciation of non-US currencies like euro, yen, pound in the exchange reserves. RBI’s data also revealed that the Gold reserves fell down to USD 37.604 billion after a decline of USD 502 million.

11th June, 2021

NITI Aayog recommends privatization of Indian Overseas Bank and Central Bank of India

National Institution for Transforming India (NITI) Aayog has recommended privatization of Indian Overseas Bank (IOB) and Central Bank of India (CBI) in the current financial year 2021-22. As a part of the Union Budget 2021-22, two Public Sector Banks (PSBs) and one general insurance company will be privatized in FY22 as per the new Public Sector Enterprise Policy. The process of privatization of the two banks will be examined by the Department of Financial Services (DFS) and the Department of Investment and Public Asset Management (DIPAM).  

10th June, 2021

RBI permits banks to raise Post-limit ATM transaction charge to Rs. 21

Reserve Bank of India (RBI) has permitted all the banks to increase the Post-limit ATM transaction charge from INR 20 to INR 21 per transaction. The new charge will be applied from 1st January, 2021. Cardholders using other bank’s ATM machine will get 5 free transactions inclusive of financial and non-financial transactions every month after which INR 21 will be automatically deducted from their accounts for carrying out transactions at the ATMs of other banks. This decision has been taken to compensate the higher interchange fee between the banks.  

9th June, 2021

RBI extends the banking license of Rupee Co-operative Bank till 31st August, 2021

Reserve Bank of India has extended the banking license of Pune-based Rupee Co-operative Bank till 31st August, 2021. The bank has recovered INR 263.93 crores in the last 5 years with an aggregate operating profit of INR 70.70 crores till 31st March, 2021. The bank currently has 5 lakh depositors with an aggregate deposit of INR 1297 crores. RBI is also planning on liquidating the bank and refunding the deposits completely under insurance cover.

7th June, 2021

Central Bank of India allocates 280 crore preferential shares to the Central Government

Central Bank of India’s board allocated around 280,53,76,972 equity shares at an issue price of INR 17.11 per share to the Government of India on preferential basis in return for the capital infusion of INR 4,800 crores in the bank. The allotment of shares has increased the shareholding of Central Govt. from 89.78 % to 93.08 %. Preferential Shares (PS) are special types of share capital with a fixed rate of dividend. PS empowers the shareholders with the special right to claim the dividends during the lifetime of the company.

6th June, 2021

SEBI increases the Overseas Investment Limit for mutual fund companies to US $1 billion

Securities and Exchange Bureau of India (SEBI) has increased the limit of overseas investment from US $ 600 million to US $ 1 billion. The increasing of the limit will encourage the Mutual Fund companies to allocate much higher share of their corpus in the foreign securities. The overall Mutual Fund industry limit for investing overseas remained unchanged at US $ 7 billion. SEBI has also increased the overseas investments limit per Mutual Fund in Exchange Traded Fund (ETFs) from US $ 200 million to US $ 300 million.

5th June, 2021

FSDC constitutes Inter-Regulators Panel for dealing with Fintech Challenges

Financial Stability and Development Council (FSDC) has constituted the 1st –of-its-kind ‘Inter Regulators’ panel to address the regulatory obstacles caused by the financial technology (fintech) industry. The panel includes officials from Insurance and Regulatory Authority of India (IRDAI), Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and the Ministry of Finance. FSDC was constituted under the Ministry of Finance in 2010 on the proposal of Raghuram Rajan Committee (2008).

4th June, 2021

Federal Bank launches NR Savings Account for seafarers

Federal Bank has launched Non-Residents (NR) Savings Account for the individuals belonging to the seafarer segment. The newly launched scheme is for the mariners. This will help the mariners in executing bank transactions irrespective of the geo-coordinates and time zone differences with the help of its state-of-art digital banking platform. There will be two types of NR accounts for the seafarers- Non-Resident External Savings Account (NRE SB) and Non-Resident Ordinary Saving Account (NRO SB). These accounts will offer preferential exchange rate for monthly inward remittances.

2nd June, 2021

ICICI Bank becomes the 1st in Asia-Pacific to offer ‘SWIFT GPI Instant’ facility

ICICI Bank has become the 1st financial institution in the Asia-Pacific region to offer ‘SWIFT GPI Instant’ facility for providing cross-border inward payments. ‘SWIFT GPI’ stands for Society for Worldwide Interbank Financial Telecommunication Global Payments Innovation. This makes ICICI Bank the 2nd in the world to offer this facility. ICICI Bank will process personal cross border remittances upto INR 2 lakhs through this facility. The remitted amount will instantly be credited to the beneficiary account using the Immediate Payment Service (IMPS) platform.

1st June, 2021

RBI cancels the license of Shivajirao Bhosale Sahakari Bank

Reserve Bank of India (RBI) has cancelled the banking license of Pune-based Shivajirao Bhosale Sahakari Bank. The license was cancelled due to uncertain financial prospects of the bank. The bank also failed to comply with the certain provisions of the Banking Regulation Act, 1949. Around 98 % of the account holders will get full deposit amount in return by the Deposit Insurance and Credit Guarantee Corporation (DIGCGC) under the DICGC Rules.   

Public Sector Banks to lend upto INR 5 lakhs to the individuals seeking COVID-19 treatment

All the Public Sector Banks (PSBs) will now provide unsecured loans from INR 25,000 to INR 5 lakhs to the individuals (salaried, non-salaried and pensioners) seeking COVID-19 treatment. The announcement was made by Indian Banks’ Association (IBA) and State Bank of India (SBI). The loans for COVID-19 treatment will be offered at an interest of 8.5 % per annum (in case of SBI) and the repayments period will be 5 years. Loans will also be offered to the vaccine manufacturers and the companies related to the healthcare sector