1. PineLabs, Razorpay, Stripe and 1Pay have received in-principle approval from RBI for payment aggregator licence.
- In 2020, RBI had issued guidelines on regulation of payment aggregators and payment gateways.
- Under these guidelines, non-bank Payment Aggregators require RBI’s authorization under the Payment and Settlement Systems Act, 2007.
- As per the guidelines, PAs were to achieve a net-worth of ₹15 crore by March 31, 2021.
- They were to achieve a net-worth of ₹25 crore on or before March 31, 2023.
- Payment aggregators (PAs) facilitate e-commerce sites and merchants to accept various payment instruments from the customers.
- They facilitate them to complete payments without the merchant having to create a separate payment system of its own.
Topic: Banking System
2. Shriram General Insurance and City Union Bank have signed a corporate agency agreement.
- Under the agreement, City Union Bank will distribute Shriram General Insurance’s insurance products through its branch network.
- Under the agreement, Shriram General Insurance will offer both personal (motor, personal accident, home, travel) and commercial (property, engineering) insurance products to bank’s customers.
- The banks are permitted by Insurance Regulatory and Development Authority (IRDAI) to have agreements with three companies each for life insurance, general insurance, and health insurance.
- The bank had a tie-up with LIC for life insurance. For life insurance, the bank will have two more partnerships — Bajaj and Tata AIG.
- The bank had a tie-up with Start Health for health insurance. It will have partnerships with Aditya Birla and Care Insurance for health insurance.
- City Union Bank is an Indian bank headquartered in Tamil Nadu. It is a Private Sector Bank. Dr. N. Kamakodi is its MD & CEO.
Topic: Banking System
3. Union Bank of India has launched ‘Uni-verse’.
- Uni-verse is Metaverse Virtual Lounge. It is in partnership with Tech Mahindra.
- It hosts the bank’s product information and videos in the initial phase.
- With Uni-verse, customers can roam around the lounge, get information on the bank’s deposits, loans, government welfare schemes, and digital initiatives, etc.
- Union Bank of India has also launched Open Banking Sandbox environment.
- Through Open Banking Sandbox environment, the bank will partner with fintechs and start-up partners to develop and launch innovative banking products.
- Union Bank of India was founded in 1919. Its CEO is A. Manimekhalai. It is headquartered in Mumbai. It is a government-owned bank.
4. RBI has imposed monetary penalty of ₹5.72 crore on Federal Bank.
- RBI has imposed a penalty on Federal Bank for non-compliance with the provisions of ‘Reserve Bank of India (Financial Services provided by Banks) Directions, 2016’.
- RBI has imposed a penalty of ₹70 lakh on Bank of India (BoI).
- It has imposed a penalty on BoI for non-compliance with certain provisions of the ‘Reserve Bank of India – (Know Your Customer (KYC)) Direction, 2016’.
- RBI has imposed a penalty of ₹7.60 lakh on Dhani Loans and Services Limited, Gurugram.
- Federal Bank is an Indian private sector bank with headquarters in Kerala. Its CEO is Shyam Srinivasan. Its tagline is your perfect banking partner.
- Bank of India is a government of India owned bank. It is headquartered in Mumbai. Atanu Kumar Das is its MD & CEO. Its tagline is “relationship beyond banking”.
Topic: Banking System
5. State Bank of India has partnered with Karnataka Digital Economy Mission (KDEM) to support the start-up ecosystem of Karnataka.
- SBI will partner with the Fintech Innovation hub at Mangaluru and leverage Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTSME) scheme to provide funding support to the start-ups in Karnataka.
- SBI will open an exclusive start-up desk in Bengaluru to offer services to start-ups.
- The branch will provide up to ₹2 crore loan to startups without collateral.
- KDEM will help SBI in opening branches across three clusters of Mysuru, Mangaluru, and Hubballi-Belagavi to assist start-ups based out of these clusters.
Topic: Banking System
6. Centre has extended the scope of newly created FSIB to public sector insurers (PSI), financial institutions (FIs) besides Public Sector Banks.
- FSIB will also advise the government on the extension of terms and termination of services for whole-time directors, non-executive chairpersons across public sector entities in financial services institutions.
- Financial Services Institutions Bureau (FSIB) has 11 members including the Chairperson. Chairperson will be nominated by Centre.
- Its ex-officio members are Department of Financial Services (DFS) Secretary, Department of Public Enterprises (DPE) Secretary and IRDAI Chairperson.
- Three persons with knowledge relating to Public Sector Banks (PSBs) and Financial Institutions (FIs) will be nominated as part-time members.
- Currently, three members for PSBs and FIs are Animesh Chauhan, Shailendra Bhandari and Deepak Singhal.
- Three persons with knowledge relating to public sector insurers (PSI) are to be nominated as part-time members on the insurance front.
- On the public sector insurance front, the Centre has nominated Usha Sangwan, A V Girija Kumar and Sujay Banerji.
- A Deputy Governor of the Reserve Bank of India will be an ex-officio Member.
7. RBI has allowed banks to settle trade transactions with Sri Lanka in permitted currencies outside Asian Clearing Union (ACU) mechanism.
- This new rule has come into force with immediate effect. It will be in place until further notice.
- The members of ACU are central banks and monetary authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka.
- Asian Monetary Unit (AMU) is the common unit of account of ACU.
- It is denominated as ACU dollar (equivalent in value to one US dollar), ACU euro (equivalent in value to one euro) and ACU yen (equivalent in value to one Japanese yen).
- Asian Clearing Union (ACU):
- It is headquartered in Tehran, Iran. It has nine member economies.
- It was established on December 9, 1974 at the initiative of the United Nations Economic and Social Commission for Asia and Pacific (ESCAP).
8. Punjab National Bank (PNB) has signed MoU with Indian Air Force under PNB Rakshak Scheme.
- State Bank of India (SBI) has renewed its MoU on defence salary package scheme with IAF.
- PNB Rakshak Scheme consists of personal accident insurance and air accidental insurance for serving, retired and trainees of defence forces.
- SBI’s defence salary package scheme includes complimentary personal accident insurance, additional aid in case of on-duty death.
9. PM Modi participated in the first ‘Arun Jaitley Memorial Lecture in New Delhi.
- The first ‘Arun Jaitley Memorial Lecture’ was given by a Minister of the Singapore government, Tharman Shanmugaratnam.
- The theme of the lecture was 'Growth through Inclusivity, Inclusivity through Growth’.
- Department of Economic Affairs has organized the first ‘Arun Jaitley Memorial Lecture’ in memory of his invaluable contribution to the nation.
- The Prime Minister addressed the gathering and interacted with the delegates participating in the Kautilya Economic Conclave (KEC).
- Kautilya Economic Conclave was organized by the Institute of Economic Growth in association with the Ministry of Finance from 8th-10th July.