Banking & Economy Sep-2023
Adani Group receives certification for India’s largest wind turbine
Adani Wind, the wind energy solutions division of Adani New Industries Limited (ANIL) announced that its 5. 2 MW Wind Turbine Generator (WTG), which is India’s largest, has received type certification from WindGuard GmbH. The certification enables Adani Wind to start series production for global markets.
RBI to discontinue Incremental Cash Reserve Ratio
The Reserve Bank decided to discontinue the Incremental Cash Reserve Ratio (I-CRR), which was put in place to absorb surplus liquidity following the withdrawal of Rs 2,000 currency notes, in a phased manner beginning. On August 10, the RBI mandated banks to maintain an incremental cash reserve ratio (ICRR) of 10 per cent on the increase in their net demand and time liabilities (NDTL) between May 19, 2023 and July 28, 2023. The measure was intended to absorb the surplus liquidity generated by various factors, including the return of Rs 2,000 notes to the banking system.
RBI:
- Governor: Shaktikanta Das
- Founded: 1 April 1935
- Headquarters: Mumbai
RBI directs banks to release property documents within 30 days of loan repayment
India’s central bank, The Reserve Bank of India (RBI), has said that banks and financial institutions will have to return all original property documents within 30 days of full repayment of a loan by a borrower. In case of delay, the lender will have to compensate the borrower at the rate of Rs 5,000 per day of delay. The RBI said a borrower will have the option of collecting the original property documents either from the banking outlet or the branch where the loan account was serviced, or any other office of the RE where the documents are available, as per their preference.
Why the new directives?
The RBI observed that the REs follow divergent practices in the release of property documents, which leads to customer grievances and disputes. The directions have been issued to address these issues and to promote responsible lending conduct.
Hitachi Payment Services launches India’s firstever UPI-ATM with NPCI
Hitachi Payment Services, a subsidiary of Japan-based Hitachi Ltd, announced the launch of India’s first-ever UPI-ATM as a White Label ATM (WLA) named Hitachi Money Spot UPI ATM, with the National Payments Corporation of India (NPCI). The ATM will offer cardless cash withdrawals, eliminating the need for physical cards. A UPI-ATM allows users to withdraw cash from multiple accounts using the United Payments Interface app. WLAs are operated by nonbanking entities. It will drive financial inclusion by facilitating easy access to banking services in areas where traditional banking infrastructure and card penetration is limited.
Note: Hitachi Payment Services is the only White Label ATM operator to offer a cash deposit facility.
IDFC First Bank makes digital rupee app interoperable with UPI QR codes
IDFC FIRST Bank has unveiled a new enhancement, the integration of UPI QR Codes with its Central Bank Digital Currency app, the IDFC FIRST Bank Digital Rupee. This step aimed to enhance the adoption of digital rupee and boost its utilisation. The new feature simplifies the process for merchants to accept payments made with the digital rupee. This development allows individuals to easily use digital rupees for payments through existing UPI QR codes at various merchant outlets. The digital rupee is an initiative by the Reserve Bank of India launched last year. This digital form of legal tender is issued by the central bank and shares the essential attributes of physical currency, such as trustworthiness, security, and transaction finality with instantaneous settlement in the digital realm.
IDFC First Bank:
IDFC FIRST Bank (formerly IDFC Bank) is an Indian private sector bank formed by the merger of the banking arm of Infrastructure Development Finance Company and Capital First, an Indian non-bank financial institution.
- Founded: October 2015
- Headquarters: Mumbai, Maharashtra, India
- MD & CEO: V. Vaidyanathan
RBI expands scope of UPI by including credit lines as funding account
Reserve Bank of India (RBI) has expanded the scope of UPI by including credit lines as a funding account. Under this facility, payments through a pre-sanctioned credit line issued by a scheduled commercial bank to individuals, with prior consent of the individual customer, are enabled for transactions using the UPI system. Banks may, as per their board approved policy, stipulate terms and conditions for use of such credit lines. The terms may include, among other items, credit limit, period of credit, rate of interest, etc. This initiative can help in development of unique products for Indian markets.
RBI:
- The bank’s current governor is Shaktikanta Das.
- There are currently four deputy governors Mahesh Kumar Jain, M. Rajeshwar Rao, Michael Patra and T. Rabi Shankar.
- Headquarters: Mumbai, Maharashtra, India
- Established: 1 April 1935
Axis Bank launches ‘Infinity Savings Account’ with zero domestic transaction fees
Axis Bank launched a new savings account variant -‘Infinity Savings Account’ to cater to digitally savvy customers who are frequent adopters of subscriptionbased models. This savings account offers Axis Bank’s customers with exclusive privileges, such as waived Average Monthly Balance (AMB) requirement, complimentary debit cards and waiver of all the domestic charges against a small monthly recurring fee of Rs 150 or annual fee of Rs 1,650.
Axis Bank:
- MD & CEO: Amitabh Chaudhry
- Chairperson: Shri Rakesh Makhija
RBI approves merger of Akola Merchant Co-operative Bank with Jalgaon Peoples Co-operative Bank
The Reserve Bank of India has given the green light to the amalgamation of Akola Merchant Co-operative Bank Ltd, located in Akola, Maharashtra, with The Jalgaon Peoples Co-operative Bank Ltd, situated in Jalgaon, Maharashtra. This merger has been sanctioned by the RBI, exercising its powers as per Sub-Section (4) of Section 44A in conjunction with Section 56 of the Banking Regulation Act, 1949. The branches of Akola Merchant Co-operative Bank will continue operations as branches of The Jalgaon Peoples Cooperative Bank. This move is expected to contribute to the strengthened banking landscape in the region and enhance the services offered to customers of both institutions.
RBI Policy Rates:
- Repo Rate: 6. 50%
- Bank Rate: 5. 15%
- Reverse Repo Rate: 3. 35%
- Marginal Standing Facility Rate: 6. 75%
Axis Bank launches NEO for Business transaction banking platform for MSMEs
Axis Bank has launched a transaction banking platform for the Indian Micro, Small and Medium Enterprises (MSMEs) called NEO for Business. It will cater to the “real, current, and emerging” transaction needs of Indian MSMEs. The NEO for Business platform offers features like digital self on-boarding, bulk payments, GST compliance invoicing, payment gateway integration, end-to-end transaction tracking, auto reconciliation, cash flow reports, and recurring collections, among others. NEO by Axis Bank’ offers a range of products and services for its corporate customers and clients, including internet banking, mobile app and APIs.
S&P retains India’s FY24 growth forecast at 6% on slowing world economy
S&P Global Ratings retained India’s growth forecast for current fiscal at 6 per cent citing slowing world economy, rising risk of subnormal monsoons and delayed effect of rate hike. The US-based agency sees the recent spike in vegetable price inflation as being temporary, but revised up the full fiscal retail inflation forecast to 5.5 per cent, from 5 per cent earlier, on higher global oil prices. Indian economy grew 7.2 per cent in 2022-23 fiscal year which ended March 2023.While retaining its growth forecast for the current fiscal at 6 per cent, S&P also maintained that India’s economy will grow 6.9 per cent in both 2024-25 and 2025-26 fiscal years.
