Economic, Financial and Banking Awareness - 08 November 2019

2019-11-08 | Team PendulumEdu

1. RBI fined Oxigen Services with Rs. 5 lakhs

• Oxigen Services has been fined with Rs. 5 Lakhs by the central bank of India for non-compliance with regulatory guidelines. RBI has been vested with such power under Section 30 of the Payment and Settlement Systems Act, 2007.
• Oxigen Services is a FinTech company and one of the major payment solutions providers in India.
• Chairman & Managing Director of Oxigen Services- Pramod Saxena.

2. Government to issue a notification that brings NBFCs under IBC purview

• It is being expected that a notification under Sec 277 of Insolvency and Bankruptcy Code (IBC) will be issued by the centre, which will bring Non-Banking Financial Companies (NBFCs) under the purview of IBC.
• The move will help in faster resolution as the existing consortium of lenders and resolution professionals can approach National Company Law Tribunal (NCLT) and seek a resolution plan for the financial service providers or the NBFC.
• NBFCs are the companies registered under Companies Act, 1956 and are involved in the business of loans and advances, acquisition of shares/stocks/debentures, etc. issued by the government or local authority or other marketable securities as specified by RBI.
• Unlike commercial banks, NBFCs cannot accept demand deposits.
• NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
• NBFCs’ working and operations are regulated by the RBI.
• NCLT- It is a quasi-judicial body that was instituted under the Companies Act, 2013 in 2016.

3. Instant Digital Savings and Instant Fixed Deposit Account- new initiatives by Ujjivan Small Finance Bank

• In order to provide unique banking and digital services, Ujjivan Bank has launched Digital Savings Account and Instant Fixed Deposit Account.
• Savings Account holders can deposit a maximum amount of Rs. 1 Lakh and any additional deposits require full KYC in respective branches.
• One can opt for Instant Fixed Deposit Account with a maximum deposit of Rs. 1 lakh without a savings account.
• CEO & Managing Director of Ujjain SFB- Samit Ghosh
• Small Finance Banks- The banks that shall be registered as a public limited company under the Companies Act, 2013. These offer a variety of services like Savings Account deposit, ATM, Locker Facility, Fixed Deposit, Recurring Deposit, Lending, etc.

4. Reliance Health Insurance Company (RHICL) directed to cease business

• Insurance Regulatory and Development Authority of India (IRDAI) has asked RHICL not to sell new policies and transfer the policyholders’ liabilities and financial assets to Reliance General Insurance Corporation Limited (RGICL) w.e.f 15 November 2019.
• The directive is given by IRDAI to Reliance Health in the wake of its inability to maintain the required solvency margin since June 2019.
• IRDAI- An autonomous body that is established under the Insurance Regulatory and Development Authority Act, 1999. Its mandate is to regulate and promote the insurance and re-insurance industries.
• Headquarters- Hyderabad, Telangana
• Chairman of IRDAI- Subhash Chandra Khuntia 

5. TVS Chief conferred with Deming Distinguished Service Award

• The chairman of TVS Motor Company and Sundaram-Clayton Ltd Venu Srinivasan has been conferred with the Deming ‘Distinguished Service Award for Dissemination and Promotion Overseas.’
• TVS chairman Srinivasan is the first Indian to win this award.
• The award is sponsored by the Japanese Union of Scientists and Engineers (JUSE) and is given to the individuals for their outstanding contributions in the dissemination and promotion of total quality management.
• The individuals whose primary activities are limited to outside Japan are conferred with this award.

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