Banking, Financial and Economic Awareness of 10 and 11 March 2020

By PendulumEdu | Last Modified: 30 Mar 2020 10:47 AM IST

1. YES Bank allows inward IMPS and NEFT services

YES Bank has allowed inward Immediate Payment Service (IMPS) and National Electronic Funds Transfer (NEFT) services.
Inwards IMPS services and NEFT services will help in making payments towards YES Bank credit card dues and loan obligations from other bank accounts.
YES Bank customers will be able to pay credit card dues and loan obligations from other bank accounts.
On March 5, RBI has placed a temporary ban on YES Bank. RBI has also set a withdrawal limit of Rs 50,000 per depositor.
Immediate Payment Service (IMPS):
- It is an instant inter-bank electronic fund transfer service. It was launched on 22 November 2010.
- National Payments Corporation of India provides IMPS service through National Financial Switch (NFS).
- With the help of IMPS, money can be transferred on a 24X7X365 basis.
- This means that money can be transferred during 24 hours in a day, 7 days in a week (including bank holidays) and 365 days in a year.

Axis Trustee Services has filed a petition in Bombay High Court against RBI's decision.
As part of restructuring scheme for YES Bank, RBI has announced to write down Additional Tier-1 (AT-1) bonds issued by YES Bank.
Axis Trustee Services is debenture trustee for YES Bank's AT-1 bonds
In the petition, Axis Trustee Services had said that Additional Tier-1 (AT-1) bonds issued by Indian banks were having high ratings when they were issued.
AT-1 bonds issued by Indian Banks have a high rating of AA+ or AA-. But, AT-1 bonds issued by global banks have low ratings of BB+, BBB- or BB.
YES Bank's AT-1 bonds were rated AA at the time of issuing. In February, their rating was lowered to BBB-. Last week, the rating came down to D, which is the lowest rating and indicates default.
Additional Tier-1 (AT-1) bonds:
- They are a type of unsecured bonds.
- AT-1 bonds can be written down or changed into equity if the bank issuing them faces financial difficulty.
- Banks issue AT-1 bonds to support their minimum capital requirements to fulfill Basel-III norms.

Alibaba founder Jack Ma has replaced Mukesh Ambani as Asia's richest man.
As per the Bloomberg Billionaires Index, Jack Ma's net worth stands at $44.8 billion against $41.8 billion net worth of Mukesh Ambani.
Mukesh Ambani is still India's richest man. Amazon CEO Jeff Bezos is the world's richest man.
Mukesh Ambani's net worth declined due to the sudden decline in the crude oil market and coronavirus epidemic.
On Monday, global stock markets have seen a fall due to fears of a black swan event.
The term black swan event refers to any surprising and rare event. The consequences of such an event are hard to predict. The financial crash of 2008, 9/11 terrorist attacks or Brexit are some examples of black swan event.

In fiscal year 2018-19, nearly 62 billion US dollars has been invested as FDI. This is highest ever FDI invested in a fiscal year.
Between 2014 and September 2019, nearly 318 billion US dollars were invested in India as Foreign Direct Investment (FDI).
FDI of 318 billion US dollars is equal to 50% of total FDI invested in India since April 2000.
While launching Make In India scheme in September 2014, Government has liberalized FDI policy in 25 different sectors.