Wednesday, February 5

Banking

banking

India’s Journey from Crisis to Confidence: Decoding the Shaktikanta Das’s Vision
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BFSI, Banking, Blog, Digital Lending, Finance, Fintech, Goverment Notice/Circulars, NBFC, Payments, Review, Technology

India’s Journey from Crisis to Confidence: Decoding the Shaktikanta Das’s Vision

In a recent speech, Reserve Bank of India Governor Shaktikanta Das outlined India's remarkable journey from crisis to confidence. Drawing on historical events and economic data, Das paints a picture of a nation that has overcome numerous challenges to emerge as a global economic powerhouse. Overcoming the 1991 Crisis Das begins by acknowledging the various crises India has faced in recent decades, including the 1991 balance of payments crisis, the 2008 global financial crisis, and the ongoing COVID-19 pandemic. He emphasizes the crucial role played by the RBI in steering the economy through these turbulent times. The 1991 balance of payments crisis was a defining moment for India. With dwindling foreign exchange reserves and a ballooning fiscal deficit, the country faced the threa...
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Alarming! 17K ICICI Bank Credit Cards Exposed: Urgent Measures Taken
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Banking, BFSI, Cyber Crime

Alarming! 17K ICICI Bank Credit Cards Exposed: Urgent Measures Taken

In a shocking revelation, ICICI Bank admitted to a major data breach, exposing the credit card data of around 17,000 new customers. The bank quickly took action by blocking the affected cards and assuring compensation to the affected customers. The issue came to light when some customers noticed the full credit card number, expiry date, and CVV of unknown customers on their iMobile Pay app. The bank clarified that the data exposure was due to an error in mapping new credit cards to the wrong users in their digital channels. ICICI Bank Blocks 17,000 Credit Cards After Data Breach: What Should Customers Do? - News18 This incident raises serious concerns about the security of digital banking platforms and the need for robust data protection measures. ICICI Bank, one of India's leading...
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Co-lending Model: A Collaborative Approach to Financial Inclusion in India, 2024
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Blog, Banking, Digital Lending, Lending, Microfinance, NBFC

Co-lending Model: A Collaborative Approach to Financial Inclusion in India, 2024

The co-lending model has emerged as a significant innovation in the Indian financial landscape, aiming to bridge the credit gap and promote financial inclusion. This model involves collaboration between banks and non-banking financial companies (NBFCs), leveraging their respective strengths to offer wider access to credit for underserved segments. Stakeholders and their involvement: Banks: Contribute their robust risk management expertise, regulatory compliance, and access to low-cost funds. They typically originate the loan and conduct due diligence on borrowers. NBFCs: Bring their domain expertise in specific sectors, strong customer relationships, and agility in loan processing. They often handle customer acquisition, credit assessment, and loan servicing. Borrowers: Benefit...
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Kotak Bank’s Digital-Only Zero-Balance Savings Accounts Hit a Roadblock: RBI’s Action
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Banking, BFSI, Goverment Notice/Circulars

Kotak Bank’s Digital-Only Zero-Balance Savings Accounts Hit a Roadblock: RBI’s Action

In a significant development within India’s banking sector, digital savings accounts have been reshaping traditional norms, offering unparalleled convenience and efficiency. Leading this transformation was Kotak811, which exemplified how digital banking is revolutionizing financial management in India. With features like instant activation, zero balance requirements, free virtual debit cards, and credit cards against fixed deposits (without employment or income proofs), Kotak811 met the demands of today’s tech-savvy generation. One standout feature was ActivMoney, allowing account holders to earn up to 7% interest p.a. on savings by automatically investing idle funds into fixed deposits, without penalties for withdrawal. Moreover, digital savings accounts have democratized access to...
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RBI Bars Kotak Mahindra Bank From Onboarding New Customers Via Online, Mobile Banking
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Banking, BFSI, Digital Lending, Goverment Notice/Circulars, NBFC, Regtech

RBI Bars Kotak Mahindra Bank From Onboarding New Customers Via Online, Mobile Banking

The Reserve Bank of India (RBI) has taken a decisive step by prohibiting Kotak Mahindra Bank from onboarding new customers through its online and mobile banking channels. Additionally, the bank is barred from issuing fresh credit cards. However, existing customers, including credit card holders, will continue to receive services from the bank. The regulatory action comes in response to significant concerns arising from the RBI’s IT examination of Kotak Mahindra Bank for the years 2022 and 2023. The central bank identified serious deficiencies and non-compliances in various critical areas: IT Inventory Management: The bank’s management of IT assets was found lacking. Patch and Change Management: Inadequate processes for managing software updates and changes. Us...
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RBI Imposes Penalty on Fatehabad Central Cooperative Bank for Non-Compliance with Unclaimed Funds Transfer Rules
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BFSI, Banking, Goverment Notice/Circulars

RBI Imposes Penalty on Fatehabad Central Cooperative Bank for Non-Compliance with Unclaimed Funds Transfer Rules

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2 lakh on The Fatehabad Central Cooperative Bank Limited, Fatehabad, for contravention of the provisions of section 26A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act). The penalty was imposed based on the findings of a statutory inspection conducted by National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on March 31, 2022. The inspection revealed that the bank had not transferred the eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time limit. This action is in violation of the provisions of section 26A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act). Also Read: RBI Imp...
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RBI Imposes Monetary Penalty on Jogindra Central Co-operative Bank for Non-Compliance
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BFSI, Banking, Goverment Notice/Circulars

RBI Imposes Monetary Penalty on Jogindra Central Co-operative Bank for Non-Compliance

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.5 lakh on Jogindra Central Co-operative Bank Ltd., Solan, Himachal Pradesh, for non-compliance with directions issued by National Bank for Agriculture and Rural Development (NABARD) on ‘Frauds-Guidelines for Classification, Reporting and Monitoring’. Monetary Penalty The penalty was imposed based on the findings of a statutory inspection conducted by NABARD with reference to the bank’s financial position as on March 31, 2021. The inspection revealed that the bank had delayed in reporting frauds. This action is in violation of NABARD’s directions on ‘Frauds-Guidelines for Classification, Reporting and Monitoring’. Also Read: RBI Imposes Penalty on Ambarnath Jai Hind Co-operative Bank for Non-Compliance The RBI h...
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Central Bank Digital Currency : A Payments Perspective by World Bank, 2021
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Payments, Banking, Blog, CBDC, International Reports, Review

Central Bank Digital Currency : A Payments Perspective by World Bank, 2021

The Guidance Report This document, titled "Central Bank Digital Currency: A Payments Perspective," provides insights and guidance on central bank digital currency (CBDC). It explores CBDC's role in the national payments system and analyzes its various aspects, including reasons for issuance, features, timing, infrastructure, and stakeholders. Lets understand this report in brief: Executive Summary The executive summary provides a concise overview of the document's key findings and policy recommendations. It highlights the importance of Central Bank Digital Currency (CBDC) as a transformative tool in the payments landscape and emphasizes the need for careful consideration of its objectives and potential consequences. Central Bank Digital Currency (CBDC): A Transformative Tool in t...
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Pradhan Mantri Jan Dhan Yojana Achieves Milestone: 3.3 Crore Bank Accounts Opened, Cash Level Surges by Rs 36K Crore in FY24
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Banking, Finance, Payments

Pradhan Mantri Jan Dhan Yojana Achieves Milestone: 3.3 Crore Bank Accounts Opened, Cash Level Surges by Rs 36K Crore in FY24

In a remarkable achievement, the Pradhan Mantri Jan Dhan Yojana (PMJDY) has witnessed tremendous growth in the financial year 2024, with the opening of 3.3 crore new bank accounts. This surge in account openings has propelled the cumulative tally to a staggering 519.5 million accounts. Furthermore, the cash level in these accounts has risen by an impressive Rs 36,000 crore, indicating a substantial increase in financial activity and savings among the unbanked population. Pradhan Mantri Jan Dhan Yojana (PMJDY) The total balance across the Jan Dhan accounts has reached a significant milestone of Rs 2,34,997 crore, reflecting the growing confidence of individuals in the banking system. Comparing the figures to the previous year, the total balance has shown a robust growth from Rs 1,98,844 c...
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SBI Urges Government to Grant Full Tax Exemption on Rs 2.7 Lakh Crore Interest Earned by Senior Citizen Deposits
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Banking, Finance, NBFC

SBI Urges Government to Grant Full Tax Exemption on Rs 2.7 Lakh Crore Interest Earned by Senior Citizen Deposits

State Bank of India (SBI), one of India's largest public sector banks, is urging the government to provide a full tax rebate on the interest earned by senior citizens on their deposits. The bank estimates that senior citizens have earned a staggering Rs 2.7 lakh crore in interest, and by assuming an average tax payment of 10%, approximately Rs 27,106 crore could be collected as tax revenue. SBI argues that granting a full tax rebate on these earnings would not impact the government's fiscal deficit and would be a fair measure to support senior citizens. Rising Deposit Rates and Special Schemes: The surge in deposit rates, coupled with higher interest rate differentials for senior citizens, has led to a significant increase in deposit accretion among this demographic. SBI highlights the s...
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