The biggest announcement so far: Deposit insurance raised five times, to Rs 5 lakh

Before the budget, the government was discussing the proposal to double the insurance cover on bank deposits to Rs 2 lakh

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Budget 2020: Single investment clearance window to be set up for promoting entrepreneurship

The government will create a single investment cell to expedite grant of licences and promote entrepreneurship.

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Nation-wide strike impacts banking services at PSU banks

Services of public sector banks were impacted on Saturday as nation-wide strike by employee unions entered its second day. Private sector lenders like ICICI Bank and HDFC Bank were operational.

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Canara Bank MD, CEO RA Sankara Narayanan retires

Public sector lender Canara Bank on Saturday said its Managing Director and CEO R A Sankara Narayanan has retired.

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Economic Survey 2020: Keep health score for NBFCs, get early warning

New index for NBFCs may help predict stress in the system and allocation of optimum capital infusion during a crisis. The survey shows that except for 2011 and 2017, the ALM mismatch in the shorter tenures was negative for all the years coinciding with the years when the health score of the NBFC was low.

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Banking on ESOPs: Just do it and get paid for it

Public sector bank employees are paid fixed salaries, which, according to the survey, does not encourage risk-taking and innovation. Although PSBs control 70% of India’s banking market, they lag considerably in performance metrics when compared to their peers. The proposal comes when the Indian Banks’ Association and bank unions have been negotiating wage increases.

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Corp loan share in non-food credit slips: Wilful defaulters up funding costs

“Wilful defaults if unchecked would increase the cost of borrowing for everyone else, including genuine businesses with profitable investment opportunities before them,” said the survey. “In fact, at high enough credit spreads, adverse selection may force genuine borrowers to exit the market altogether, leaving only cronies in the market and resulting in a market failure that slows economic growth, employment and wealth creation capacity.”

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Economic Survey 2020: PSBs need a techtonic shift

With data and analytics taking the centre stage in almost all industries, state-run banks can pool all their data into one entity like in the case of GST Network, to improve their analytical capabilities that could provide them an edge over their private peers. Data sciences, machine learning and artificial intelligence could help the banks, which have more than 70% market share, to make a difference to the economy.

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GST collection crosses Rs 1.1 lakh cr in January

This is in line with the target set by Revenue Secretary Ajay Bhushan Pandey after high-level meetings with senior officials of the tax department.

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ESOP for public sector bank employees mooted

Employees in PSBs are paid in fixed salaries all these years which according to the Survey does not encourage risk-taking and innovation. The Survey said that these banks which control 70% of the market share in Indian banking, lag considerably in performance metrics when compared to their peers.

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Bank deposit cover may be doubled to Rs 2 lakh

The move comes after the government and RBI faced flak over their handling of the closure of PMC Bank.

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Mark Zuckerberg says WhatsApp Pay in 6 months

FB looks to roll out payments in many countries even as licence application remains stuck in India.

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Indian control clause for insurance may go

The government has held several meetings with the insurance regulator, insurers and consultants on higher FDI in the sector. Many global insurers, such as Metlife and Generali, have not raised their stakes in Indian operations due to the clause that was introduced in 2015.

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BoM, SBI only PSBs rated 'good' in digital transactions in December: Government data

The score for an individual bank is given by the Ministry of Electronics and Information Technology (MeitY) on various parameters such as percentage of digital transactions, merchant deployment achieved, system resilience and average percentage of technical decline for UPI or AePS transactions, among others.

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Employees of PSU banks to go on two-day strike from Friday

Bank unions have decided to go on a two-day nationwide strike from Friday as talks with management of public sector lenders on wage revision have failed to reach a consensus.

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Power Finance Corporation, REC merger hits roadblock

As per the RBI's norms, debt exposure of an NBFC in a project cannot exceed 25 per cent. The exposure of Power Finance Corporation (PFC) and REC as a merged entity would exceed the limit of 25 per cent in any existing project as the two firms have been financing power sector projects. After the merger, the new entity will be required to reduce its exposure.

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RBI agrees Kotak Mahindra Bank's proposal on dilution of promoter equity, bank to withdraw case

The bank will withdraw its writ petition filed in the Bombay High Court after the RBI gave in principle approval to Kotak Mahindra Bank's proposal on promoters' shareholding dilution.

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The next debt crisis: Small borrowers’ big defaults

Microfinance is showing early signs of loans going bad en masse. And the problem is complicated by aggressive strategies of larger lenders.

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DHFL siphoned off Rs 13K cr through 1 lakh fake borrowers: ED

The agency, probing arrested promoter of the embattled home financier Kapil Wadhawan, told a Prevention of Money laundering Act (PMLA) court that the Wadhawans had allegedly used a part of these funds to pay the late drug lord Iqbal Memon, alias Iqbal Mirchi. The agency arrested Kapil Wadhawan on Monday. His brother, Dheeraj, is out on bail.

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RBI appoints ED Janak Raj as member of MPC

Mumbai, Jan 29 () The Reserve Bank of India (RBI) on Wednesday appointed its Executive Director Janak Raj as member of the Monetary Policy Committee (MPC), the highest interest rate setting body.

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Irdai slaps Rs 1 cr penalty each on ICICI Lombard, Tata AIG for violation of norms

Regulator Irdai has imposed a penalty of Rs 1 crore each on ICICI Lombard GIC and Tata AIG General Insurance Company for violation of various norms.

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RBI imposes Rs 1 crore penalty on HDFC Bank

The RBI had issued a notice to the bank to show cause as to why penalty should not be imposed for non-compliance with the direction. After considering the reply received from the bank and oral submissions made in the personal hearing, the RBI came to the conclusion that imposition of monetary penalty was warranted, the release said.

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IBA says wage hike offer 'adequate', to meet bank union leaders on Jan 30

United Forum of Bank Unions, the umbrella organisation of nine leading bank associations, demanded 20% wage hike on pay slip components, as articulated by IBA in its letter, a copy of which is in ET's possession. The unions are also demanding five-day banking and merger of special allowance with basic pay, among others.

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When it comes to saving tax, don't be Mr. Late Lateef

It’s in our human nature to procrastinate – be it for want of something better or simply because of our hesitation in taking a decision. Like Mr. Late Lateef...

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Banks approve reduced fees for UPI, RuPay

After a letter from the Indian Banks’ Association (IBA) on removing entire fees on these transactions, which would have meant significant revenue loss for its owner National Payments Corporation of India (NPCI), the two parties have reached an understanding for now.

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Bank panels to monitor probe progress

Finance minister Nirmala Sitharaman sent a strong message to banks to lend without fear of the ‘three Cs’ at a meeting last month. The ‘three Cs’ refer to the CBI, Comptroller and Auditor General of India and the CVC. Sitharaman also assured bankers that a distinction would be made between genuine commercial failure and deliberate wrongdoing.

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Budget 2020: Govt may infuse fresh capital into regional rural banks

The size of the capital infusion could be in the range of Rs 10,000-15,000 crore, which would be spread over a span of five years. Capital infusion in RRBs assumes importance as the government is finding ways to boost credit to the farm sector.

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Sachin Bansal resigns from Ujjivan Small Finance Bank's board

"I would like to resign as an independent director of the bank with effect from January 27, 2020. Given an entity owned and controlled by me has made an application to the RBI for a universal banking license, I felt it was -- in the interest of propriety and corporate governance -- only appropriate that I stepped down from this role," Bansal said.

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Product-driven teams require tech to be embedded in their way of thinking: Lori Beer, CIO, JP Morgan Chase

The way we work is changing into much more agile, product-driven teams and that requires technology to be deeply embedded in our way of thinking.

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Clashing dreams of MDR and digital

The number of debit cards has stagnated at 900 million, while the number of UPI transactions — nearly doubling every month until 2018 — has also stabilised at singledigit monthly growth rates.

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I-T refunds of Rs 1.7 lakh cr to hurt FY20 direct tax mop-up

Refunds have increased largely due to ease of online return filing and pre-filled form facility along with Aadhaar one-time-password authentication. Combined with a 10% increase in personal tax collections, this makes for a notable increase in refunds. Gross collections stood at Rs 9 lakh crore this year against Rs 9.11 lakh crore in the same period last year.

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Bank of Baroda says fresh NPA accretion nearly peaked

"Given the fact that there are some indicators like the watch-list coming down, in terms of size, I can say with a reasonable degree of confidence that the slippage levels should be lower going forward," Chadha, who took over the charge last week told in an interview.

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Paytm Payments Bank to help identify rogue apps that could trigger fraud transactions

The security feature will scan the apps installed on the user device and will pop-up a security alert whenever a dangerous app is found that may put the users' accounts at risk. No transactions will be possible until the user uninstalls that fraudulent app.

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Employees of PSU banks threaten to go on two-day strike from January 31

The meeting before Chief Labour Commissioner on Monday remain inconclusive so unions did not take back strike notice, AIBOC president Sunil Kumar said. The wage revision for employees of public sector banks is pending since November 2017.

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Urban cooperative banks report nearly 1,000 frauds worth over Rs 220 crore in past five fiscals: RBI

Responding to an RTI query, the central bank said a total of 181 fraud cases involving Rs 127.7 crore were noticed during 2018-19. A total of 99 and 27 such cases involving Rs 46.9 crore and Rs 9.3 crore were reported during 2017-18 and 2016-16 respectively, it said. As many as 187 cases of fraud involving Rs 17.3 crore were reported in 2015-16.

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Lenders need to provide info on security interest

Lenders are also required to inform the central registry of any change to a security interest and when such loans are paid off. They will have to file details of any order of attachment passed in their favour by any court or government authority.

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Banking sector is stressed, govt in no position to bail it out: Abhijit Banerjee

The author of "Good Economics for Hard Times" added that the slowdown in the economy will also adversely impact poverty alleviation in the country as urban and rural sectors are interdependent.

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Non-life insurers can offer standard health policies before April 1

In a circular dated April January 24, 2020, the Insurance Regulatory and Development Authority of India (IRDAI) said insurers can offer the 'Arogya Sanjeevani Policy' - the standard health insurance policy before April 1, 2020.

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Governor Shaktikanta Das sets broader financial stability as the central bank's immediate policy-making priority

He said that the focus on price stability as the sole objective of monetary policy has been questioned after the global financial crisis, underscoring the need for adopting a flexible inflation target to achieve macro-financial stability. “In this milieu, financial stability has emerged as another key consideration for monetary policy."

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HDFC Equity Fund – A Multi cap fund

HDFC Equity Fund – A Multi cap fund with history of 25 years It is extremely difficult for an average investor to understand the valuations of large -, mid- ...

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HDFC Overnight Fund

Imagine that you have planned a trip for a few days. But before you leave, you make sure all your valuable things, which you are not going to need for the ne...

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Operations may be impacted due to bank unions' two-day strike: SBI

Bank unions have called for a two-day nationwide strike on January 31 and February 1 after talks over wage revision failed to make headway with the Indian Banks' Association (IBA). SBI said its operations might get affected somewhat due to strikes however it assured normal functioning in its branches and offices.

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HDFC to tap Egon Zehnder to identify Aditya Puri's successor

The board's decision to recruit a global head-hunting firm comes as a six-member internal search committee, appointed in November last year, has not been able to reach a consensus on selecting a successor to Puri.

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Key Features & Benefits of Investing in Axis Long Term Equity Fund

Investors are constantly looking for efficient tax saving investment schemes which can help them earn some extra income too. If you have an appetite for risk...

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What are the dual advantages of investing in ELSS?

All businessmen as well as working professionals want to save as much tax as possible. That’s because the tax is an expenditure just like any other expense, ...

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Shriram Capital halts three-way merger after RBI request

The unlisted Shriram Capital, which counts billionaire Ajay Piramal and private equity firm TPG Capital as investors, was planning to combine with its publicly traded units Shriram Transport Finance Co. and Shriram City Union Finance Ltd.

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Banned cryptocurrency to uphold integrity of banking system: RBI

The central bank, through senior advocate Shyam Divan, argued that though there was no formal ban on cryptocurrencies under any law in existence in India, it had consistently been warning all those dealing with virtual currencies of the risks inherent in them.

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Use all your entitlement; tax saved is money earned, says Dhirendra Kumar

Use all your entitlement; tax saved is money earned, says Dhirendra Kumar

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5 Reasons to choose Equity Linked Saving Scheme (ELSS) Fund

When you invest your hard-earned money in the equity market, there are chances that you might lose some of it. But if you choose your investment wisely and i...

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Airtel, Western Union team up to soon launch real-time cross-border money movements in India, Africa

Western Union has teamed up with two Bharti Airtel arms -- Airtel Payments Bank and Airtel Africa Plc -- to launch real-time payments shortly into millions of Airtel Payments Bank accounts in India and mobile wallets across 14 countries in Africa. The service launch is expected in the course of calender 2020, Airtel said.

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