WEEKLY FINANCIAL SNIPPETS-16/12/2017

  1. ATMs NOT TO BE REPLENISHED WITH CASH AFTER 9 PM: The government has proposed some changes for replenishment of cash in ATMs. Cash Transportation agencies must collect cash from the bank in the first half of the day and NO cash loading of the ATMs or any cash movement should be done after 9 pm. These Standard Operating Procedures (SOPs) have been prepared after a spurt in attacks, hijacking and looting of cash vans.

 

  1. RBI INVOKES PROMPT CORRECTIVE ACTION ON CORPORATION BANK: Reserve Bank of India has invoked Prompt Corrective Action (PCA) on Corporation Bank as the Bank’s bad loans have increased sharply. This makes Corporation bank 8th bank to face restriction in a span of 10 months. A statement issued by Corporation Bank said, this action will not have any material impact on the performance of the bank and will contribute to the improvement in internal control of the bank in its activities.

 

  1. INSOLVENCY AND BANKRUPTCY BOARD TO DECIDE ON THE FATE OF THE LOAN GUARANTORS: The governing body of Insolvency & Bankruptcy Board of India (IBBI) is expected to finalise broad guidelines for dealing with personal guarantors & third party guarantors of defaulting loan accounts. This is seen as an additional tool to punish truant promoters and a strong recovery mode.

 

  1. YOUR SOCIAL MEDIA POSTS MAY DECIDE WHETHER YOU WILL GET A LOAN OR NOT: Many Private Sector Banks are spending more time in reading your ( the prospective customer’s) Facebook posts, SMS’s and payment data available on Mobile phone to decide whether to sanction a loan , rather than relying solely on credit ratings. As banks sharpen their internal assessment of risk before lending, they are investing in Data Analytics ( which is gathering data of social media) which captures the borrowing behaviour of a customer.

 

  1. BANKS HIRE EX-RBI MEN TO AVOID SLIP-UPS: Tighter regulations, closer scrutiny and higher possibility of fines by RBI has increased the importance of compliance for banks in recent years. As a result, former officials from RBI’s Banking Supervision Department are being hired by banks and are in charge of this key functioning department. Many Private banks, small banks and recently launched Paytm Payments Bank have former RBI officials heading their compliance department.

 

  1. CENTRE EXTENDS DEADLINE FOR LINKING OF AADHAAR TO BANK ACCOUNTS: The government has extended the deadline for mandatory quoting of Aadhaar number for certain financial transactions (like bank accounts, mutual funds) and linking of Aadhaar to Mobile numbers. Earlier the deadline was December 31st 2017, but now as per the gazette notification the extended date is till 31st march 2018.

 

  1. ICICI BANK LAUNCHES “SMART VAULT”: ICICI bank has launched its technology driven “Smart Vault”, most advanced and first-of-its-kind locker service in India. The Smart Vault is powered by revolutionary robotic technology which minimises human intervention while operating the bank locker. The advanced Radio Frequency Identification (RFID) enabled mechanism scans your request and retrieves your locker using robotic arm and your locker is made available to you conveniently at a kiosk. After your work with locker is over, the robotic arm retracts your locker back to the locker room. Smart Vault is equipped with the most evolved and intelligent security system.
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