Banking & Financial Awareness
Crypto Banks started offering LOAN on Cryptocurrencies
People owning cryptos such as bitcoin, ethereum or ripple can pledge their holdings with crypto banks to get loans up to 50-60% of the asset value.
These loans come with no specific tenure and can be repaid at any time.
Interest at 12-15% per annum is lower than 12-24% charged by the banks on personal loans, along with a processing fee in the range of 2-3%.
Crypto-focused institutions such as EasyFi Network, Vault, and Cashaa, among others, have started their lending operations in India.
Axis Bank becomes co-promoter of Max Life Insurance
Axis Bank Ltd has become co-promoters of Max Life Insurance Company Limited, after completion of the acquisition of a 12.99% stake collectively by the Axis Entities in the company.
Max Life’s Board will be recast with three Axis nominees. Axis Entities have the right to acquire another 7% in Max Life, Axis Bank.
- Max Life Insurance CEO: Prashant Tripathy
- Max Life Insurance Founded: 2001
- Max Life Insurance Headquarters: New Delhi
- Axis Bank CEO: Amitabh Chaudhry
- Axis Bank Headquarters: Mumbai
- Axis Bank Founded: 1993
RBL Bank Mastercard partner to offer first-of-its-kind payment functionality
RBL Bank and Mastercard announced their partnership to launch a mobile-based consumer-friendly payment solution – the Pay by Bank App, a first-of-its-kind payment functionality in India.
To provide enhanced security, ‘Pay by Bank App’ ensures that Bank customer’s payment credentials are never exposed to the merchant, making the transaction completely secure.
- RBL Bank Founded: August 1943
- RBL Bank Headquarters: Mumbai
- RBL Bank MD & CEO: Vishwavir Ahuja.
- Mastercard Headquarters: New York, United States.
- Mastercard President: Michael Miebach.
Payments bank deposit limit doubled by RBI
In a bid to promote digital payments banks in the country, the Reserve Bank of India (RBI) announced that it has increased the maximum end-of-day balance for payment banks to ₹2 lakh. Earlier, the limit was ₹1 lakh.
Payments bank aims to further financial inclusion, especially through savings accounts and payments services.
RBI decides to publish Financial Inclusion Index
The Reserve Bank of India has decided to publish the Financial Inclusion Index. The FI index will be published annually in July for the previous financial year.
RBI’s Governor Shaktikanta Das said Financial Inclusion has been a thrust area for the Government, RBI, and other regulators, with significant progress made over the years.
RBI sets up a committee to review the working of ARCs
The Reserve Bank of India (RBI) constituted a committee that would examine the role of asset reconstruction companies (ARCs) in stressed debt resolution and review their business model.
The committee will submit its report within three months from the date of its first meeting.
The committee will review the existing legal and regulatory framework applicable to ARCs and recommend measures to improve the efficacy of ARCs.
India’s G-SAP versus Japan’s yield curve control policy
The Reserve Bank of India (RBI), India’s central bank, recently announced its Government Securities Acquisition Programme (G-SAP).
Under this program, RBI has explicitly committed itself to purchase ₹1 trillion worth of outstanding government securities (G-secs) from the market during the April-June 2021 quarter.
RBI’s approach is different in key ways and it’s difficult to directly assess the success or failure of G-SAP
SBI MF becomes first mutual fund house to cross ₹5 lakh crore average AUM mark
SBI Funds Management Pvt. Ltd became the first mutual fund house in India to cross the ₹5 lakh crore average assets under management (AAUM) mark.
In the last year, SBI MF’s average AUM has grown to ₹5.04 lakh crore from ₹3.73 lakh crore, recording a growth of 35 % during the financial year 2020-21.
- Airtel Payments Bank announces ‘Rewards123’ savings account
- Airtel Payments Bank’s MD and CEO: Nubrata Biswas.
- Airtel Payments Bank Headquarters: New Delhi.
- Airtel Payments Bank Founded: January 2017.
President promulgates Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021
The amendments to IBC aim to provide an efficient alternative insolvency resolution framework for corporate persons classified as micro, small and medium enterprises (MSMEs) under the Code.
The initiative is based on a trust model and the amendments honor the honest MSME owners by trying to ensure that the resolution happens and the company remains with them.
- The Insolvency and Bankruptcy Code was passed by the Parliament in 2016.