Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB

Home » Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB

Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB

Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB – Hello Friends Welcome to studydhaba.com .Here We Are Sharing Banking Current Affairs for -Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB ,Railways Exams.

Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB

Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB

Banking Current Affairs 2017 pdf Download   –   SBI,IBPS,RBI,SBI PO,IBPS PO,RRB ,CDS,NDA ,MPSC,KPSC,JPSC,MPPSC,GPSC,HPSC,RAS,KAS and Other State And Centre Level Exams 

Topics Details 

Small Finance Banks

  • The small finance bank will primarily undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.

What they can do:

  • Take small deposits and disburse loans.
  • Distribute mutual funds, insurance products and other simple third-party financial products.
  • Lend 75% of their total adjusted net bank credit to priority sector.
  • Maximum loan size would be 10% of capital funds to single borrower, 15% to a group.
  • Minimum 50% of loans should be up to 25 lakhs.

What they cannot do:

  • Lend to big corporates and groups.
  • Cannot open branches with prior RBI approval for first five years.
  • Other financial activities of the promoter must not mingle with the bank.
  • It cannot set up subsidiaries to undertake non-banking financial services activities.
  • Cannot be a business correspondent of any bank.

The guidelines they need to follow:

  • Promoter must contribute minimum 40% equity capital and should be brought down to 30% in 10 years.
  • Minimum paid-up capital would be Rs 100 cr.
  • Capital adequacy ratio should be 15% of risk weighted assets, Tier-I should be 7.5%. o Foreign shareholding capped at 74% of paid capital, FPIs cannot hold more than 24%.
  • Priority sector lending requirement of 75% of total adjusted net bank credit.
  • 50% of loans must be up to Rs 25 lakh.

Green Bonds

  • A green bond is a fixed income instrument for the purpose of raising debt capital through markets.
  • Certifies that the proceeds will be used exclusively for specific “green” purposes.
  • Can provide a long-term source of debt capital for renewable infrastructure projects.
  • Green bonds are issued by multilateral agencies such as the World Bank, corporations, government agencies and municipalities.
  • Institutional investors and pension funds also have appetite for such bonds.
  • Axis Bank has launched India’s first internationally-listed certified green bond to finance climate change solutions around the world at London Stock Exchange (LSE).

Stressed Asset Fund

  • It is commonly known as Bad Bank which invites investors to pool their money together and buy bad loans from banks.
  • The idea is to acquire viable projects at a discount, revive them and sell them to investors.
  • When banks are not willing to lend more to the promoters of stressed companies or when the promoters are not in a position to infuse extra capital, then stressed funds will, after weighing the pros and cons, decide to invest in the bad debt of these companies
  • By selling bad loans, banks can strike them off their books and it frees up more capital that they could lend.
  • If the debt-ridden company manages to turn around, the once-distressed debt will be selling for a considerably higher price. The stressed asset funds will gain hugely from it.
  • Both corporate and retail debts are sold by banks.

Export-Import Bank of India (Exim Bank)

Export–Import Bank of India was established in 1982 under the Export-Import Bank of India Act 1981.

  • Export–Import Bank of India is the premier export finance institution in India
  • Key player in the promotion of cross border trade and investment.
  • Plays a major role in partnering Indian industries, particularly the Small and Medium Enterprises (SMEs), in their globalisation efforts.
  • They assist SMEs in import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment.
  • Exim Bank is managed by a Board of Directors, which has representatives from the Government, Reserve Bank of India, Export Credit Guarantee Corporation of India, a financial institution, public sector banks, and the business community.

Banks Board Bureau (BBB)

BBB will be a super authority (Autonomous Body) of eminent professionals and officials for public sector banks (PSBs). It will replace the Appointments Board of Government.

  • It is part of seven point Indradhanush Mission to revamp the Public Sector Banks (PSBs).

Functions:

  • Give recommendations for appointment of full-time Directors as well as non-Executive Chairman of PSBs.
  • Give advice to PSBs in developing strategies for raising funds through innovative financial methods and instruments to deal with stressed assets.
  • Guide banks on mergers and consolidations and also ways to address the bad loans problem among other issues
  • Former Comptroller and Auditor General (CAG) Vinod Rai has been appointed as the first Chairman of Banks Board Bureau (BBB).

Composition:

  • The bureau will have three ex-officio members and three expert members, in addition to the Chairman.

Payments banks -Banking Current Affairs 2017 pdf Download 

  • The “Committee on Comprehensive Financial Services for Small Businesses and Low Income Households” was set up by the RBI in Sep 2013 under the chairmanship of Nachiket Mor recommended creation of Payment Banks.
  • Payment banks are non-full service banks, whose main objective is to accelerate financial inclusion.

The telecom companies, retailers, mobile wallet providers, large business houses and several others are the main applicants for payment banks.

  • Capital requirement: The minimum paid-up equity capital for payments banks is Rs. 100 crore.
  • Leverage ratio: The payments bank should have a leverage ratio of not less than 3%, i.e., its outside liabilities should not exceed 33.33 times its net worth (paid-up capital and reserves).
  • Promoter’s contribution: The promoter’s minimum initial contribution to the paid- up equity capital of such payments bank shall at least be 40% for the first five years from the commencement of its business.
  • Foreign shareholding: The foreign shareholding in the payments bank would be as per the Foreign Direct Investment (FDI) policy for private sector banks as amended from time to time.
  • Cash Reserve Ratio (CRR): Cash Reserve Ratio (CRR) with the Reserve Bank on its outside demand and time liabilities.
  • Statutory Liquidity Ratio (SLR): Invest minimum 75% of its “demand deposit balances” in Statutory Liquidity Ratio (SLR) eligible Government securities/treasury bills with maturity up to one year and hold maximum 25% in current and time/fixed deposits with other scheduled commercial banks for operational purposes and liquidity management.
  • Airtel launches India’s first payments bank.
  • India Post Payments Bank is the third entity to receive payments bank permit after Airtel and Paytm. Activities of Payment Banks:
  • Payments banks will mainly deal in remittance services and accept deposits of up to Rs 1 lakh.
  • They will not lend to customers and will have to deploy their funds in government papers and bank deposits.
  • They can accept demand deposits.
  • They can issue ATM/debit cards but not credit cards.
  • Distribution of non-risk sharing simple financial products like mutual fund units and insurance products, etc. is allowed.

Masala bonds

  • The Masala bond refers to a rupee-denominated bond through which Indian entities (private and public sector) can raise money from foreign markets in rupee, and not in foreign currency.
  • By issuing bonds in rupees, an Indian entity is protected against the risk of currency fluctuation, typically associated with borrowing in foreign currency.
  • Masala bonds also help in internationalization of the rupee and in expansion of the Indian bond markets.
  • These bonds are usually traded on the London Stock Exchange (LSE) and not in India.
  • The Housing Development Finance Corporation (HDFC) has become the first Indian company to issue rupee-denominated bonds “masala bonds” on London Stock Exchange (LSE).

Merger of State Bank of India (SBI)

The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the merger of State Bank of India (SBI) with five of its associate/subsidiary banks.

  • These five subsidiary banks are State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore.
  • It is in pursuance of the Indradhanush action plan of the Central Government.

Non Performing Asset (NPA)

  • A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
  • For More Details Click Here 

Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB

TopicsDetails 

Advance Pricing Agreements (APAs)

The APA Scheme was introduced in the Income-tax Act in 2012 and the “Rollback” provisions were introduced in 2014.

  • An advance pricing agreement (APA) is an ahead-of-time agreement between a taxpayer and a tax authority on an appropriate transfer pricing methodology.
  • APAs bring tax certainty, reduce litigation expenses and avoid risk of double taxation.
  • An APA brings extra revenue to the tax administration.
  • The APAs may be bilateral or unilateral.
  • The Central Board of Direct Taxes (CBDT) has entered into more than 140 Advance Pricing Agreements (APAs).

Foreign Currency Non-Resident (FCNR) deposits

FCNR account is a term deposit account that can be maintained by NRIs and PIOs in foreign currency.

  • Thus, FCNRs are not savings accounts but fixed deposit accounts.
  • The account can be opened in the name of NRI individuals (single/ joint) or with resident Indians on ‘former or survivor’ basis.
  • In October 2011, the RBI decided that authorised dealer banks in India may be permitted to accept FCNR deposits in any permitted currency.
  • ‘Permitted currency’ mean a foreign currency which is freely convertible.
  • Interest income from FCNR accounts is exempt from Income Tax.
  • Deposit held under FCNR accounts is not taxable under Wealth Tax.

Trade Facilitation Agreement (TFA)

The TFA is the WTO’s first-ever multilateral accord that aims to simplify customs regulations for the cross-border movement of goods.

  • It was outcome of WTO’s 9th Bali (Indonesia) ministerial package of 2013.
  • The agreement contains provisions for faster and more efficient customs procedures, Lowering import tariffs and agricultural subsidies, Abolish hard import quotas and Reduction in red tape at international borders.
  • The Trade Facilitation Agreement (TFA) in Goods came into effect with its ratification by two-thirds members of WTO including India.

Trade Facilitation Agreement for Services:

  • The idea of a ‘TFA for Services’ – similar to the WTO’s ‘TFA for Goods’ — was mooted by India soon after the WTO’s tenth Ministerial Conference in Nairobi in December 2015.
  • It is aimed at making it easier for services professionals and skilled workers
    to move across borders for ‘short-term’ projects.
  • Its objectives include streamlining procedures for global services trade, recognising services as a tradable item and for settlement of disputes.

Participatory Notes (P-Notes)

Participatory Notes are offshore derivative instruments issued by registered foreign institutional investors (FII) to overseas investors, who wish to invest in the Indian stock markets without registering themselves with SEBI.
SEBI Rules

  • From January 2011, FIIs have had to follow KYC norms and submit details of
    transactions.
  • Sebi also issued norms on transferability of P-Notes between two foreign
    investors and increased the frequency of reporting by P-Note issuers.
  • Under the new norms, all the users of P-Notes would have to follow Indian
    KYC and Anti Money Laundering (ALM) Regulations, irrespective of their jurisdictions.

Multilateral Convention on Mutual Administrative Assistance in Tax

Matters

Multilateral Convention on Mutual Administrative Assistance in Tax Matters was developed jointly by the OECD and the Council of Europe in 1988.

  • The Convention represents a wide range of countries, including all G20, BRIICS and OECD countries, financial centres and several developing countries.
  • India is among the 98 countries and jurisdictions that have already joined the Convention.
  • The convention regulates information exchange between states parties on the exchange of information regarding tax matters.
  • Panama has agreed to sign a multilateral tax treaty, which the Indian agencies believe will help them expedite investigations into the “Panama papers”.

Bilateral Investment Treaty 

Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB

A bilateral investment treaty (BIT) is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in another state.

  • This type of investment is called foreign direct investment (FDI).
  • BIT increases the comfort level and boosts the confidence of investors.
  • The distinctive feature of many BITs is that they allow for an alternative dispute resolution mechanism, whereby an investor whose rights under the BIT have been violated could have recourse to international arbitration.
  • The first BIT was signed by India on March 14, 1994. Since then, till date, the Government of India has signed BITs with 83 countries.

Revised Indian model text for Bilateral Investment Treaty (BIT)

  • The revised Indian model text for Bilateral Investment Treaty (BIT) will replace the existing Indian Model BIT.
  • “Enterprise” based definition of investment.
  • Non-discriminatory treatment through due process, national treatment, protections against expropriation.
  •  A refined Investor State Dispute Settlement (ISDS) provision requiring investors to exhaust local remedies before commencing international arbitration.
  • Bilateral Investment Treaty (BIT) between India and Cambodia is the first Bilateral Investment Treaty in accordance with the text of the Indian Model BIT.

Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB -Banking Current Affairs 2017 pdf Download -SBI,IBPS,RBI,SBI PO,IBPS PO,RRB

About the Author:

Leave A Comment

Inline
Inline