1. LINKING AADHAAR WITH INSURANCE POLICY MANDATORY: Insurance Regulatory & Development authority (IRDAI) has said that linkage of Aadhaar number with insurance policies is mandatory and asked insurers to comply with the statutory norms. The linkage of Aadhaar to Insurance policies is made mandatory under the prevention of Money-laundering Amendment Rules, 2017. Hence IRDAI has communicated to all Life and general Insurance companies to implement the linkage without waiting for further instructions.
2. SBI NET PROFIT DOWN BY 38% ON HIGHER PROVISIONING: State Bank of India’s standalone net profit declined by 37.9% to Rs. 1,581 Crores in the second quarter of FY 2018. This is because of higher provisioning. There was robust growth in other incomes and hence the Bank’s operating profit grew by 11.4% but due to higher provisioning the net profit was down by 38%.
3. HDFC BANK MAKES RTGS/NEFT TRANSACTIONS FREE: Private sector lender HDFC Bank has made online RTGS/NEFT transactions free of cost from November 1, with an aim to promote digital economy. However, any RTGS/NEFT transactions carried out at the branch level will be chargeable. On the other hand, various charges like cheque–related transactions as well as request for additional cheque leaves will get costlier.
4. SBI EXPECTS MOST CASES FROM RBI SECOND LIST OF NPAs TO GO TO NCLT: State Bank of India expects most of the cases from RBI’s second list of large Non-Performing Assets (NPAs) to be referred to the National Company Law Tribunal (NCLT) for resolution under the Insolvency and bankruptcy Code (IBC). The country’s largest bank has an exposure of Rs. 26,636 crore to 27 of 30 such accounts listed by RBI.
5. DEMONETIZATION IMPACTS PEOPLE’S CURRENCY HOLDING HABITS : One year after the note ban, there is a significant drop in demand for currency due to a sharp rise in payments through digital means, digitization and changes in currency holding habits, according to a study by RBI. It is estimated that the total Currency In Circulation (CIC) has declined by around Rs 9 lakh crore between November 4, 2016 and January 6, 2017.
6. RBI INSTRUCTS BANKS’ TO HAVE IT EXPERTISE AT BANKS’ BOARD LEVEL: With cyber threats emerging as a major risk for the financial sector, the Reserve Bank of India has said banks need to have a an IT expert on board to ensure speedy implementation of measures to address this challenge. Reserve Bank’s Executive Director Meena Hemachandra said that with banking becoming more technology driven, IT expertise at the board level has become a necessity.