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SURE SHOT
CURRENT AFFAIRS
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SBI Clerk Mains
BANKING
NEWS
July - August 2021
Page | 1
Banking News July - August 2021
BANKS NEWS
DBS Bank recognised as ‘Most Innovative in Digital Banking’ globally by ‘The Banker’
▪ The DBS Bank has won the global accolade of ‘Most Innovative in Digital Banking’ in the
Innovation in Digital Banking Awards 2021, by Financial Times publication ‘The Banker’.
▪ Apart from this, DBS bank has also won in the Cyber Security category in the Asia-Pacific
region for its Secure Access and Remote Working Solution.
▪ The Banker’s Innovation in Digital Banking Awards recognize the most innovative banks
globally, for their digital banking initiatives, strategy, and overall commitment to digital
transformation.
Nitin Chugh resigns as MD & CEO of Ujjivan Small Finance Bank
▪ Nitin Chugh has resiged from the post of MD & CEO of Ujjivan Small Finance Bank from
September 30, 2021. He cited personal reasons for his resignation. He will also cease to
be a member of the board of directors of Ujjivan Small Finance Bank.
▪ After his Retirement Bank has named Carol Furtado as the interim CEO. She has also
been appointed as the officer on special duty (OSD) of the bank.
Shanti Lal Jain appointed MD and CEO of Indian Bank
▪ Shanti Lal Jain has been appointed as the Managing Director and Chief Executive Officer
of Indian Bank for a period of three years. He will replace Ms. Padmaja Chunduru as MD
and CEO of Indian Bank.
▪ Shanti Lal Jain is currently the Executive Director (ED) at Bank of Baroda. He will take
charge after September 01, 2021.
IDBI Bank to divest its entire 19.18% stake in ARCIL
▪ IDBI Bank has announced that the board of IDBI Bank has approved to divest its entire
stake of 19.18% in Asset Reconstruction Company (India) Limited (ARCIL).
▪ Asset Reconstruction Company India (Arcil) is the oldest ARC entities operating in India,
founded in 2002. Headquarter- Mumbai, Maharashtra.
▪ ARCIL is owned by State Bank of India (SBI), IDBI Bank, ICICI Bank and Punjab National
Bank (PNB), and other foreign investors.
Former SBI Chief Rajnish Kumar appointed as independent director of HSBC Asia
▪ The former State Bank of India (SBI) chairman Rajnish Kumar has been appointed as an
independent director of the Hongkong and Shanghai Banking Corporation (HSBC) Asia
entity on August 30, 2021.
▪ He has also been appointed as the member of Audit Committee and Risk Committee of
the company.
▪ Mr Rajnish Kumar retired as SBI Chairman in October 2020 after a 40-year career at the
SBI.
Page | 2
‘Salaam Dil Sey’ Initiative—HDFC Bank
▪ The HDFC bank launched the ‘Salaam Dil Sey Initiative’. The initiative shows gratitude to
the doctors for their tireless service during the pandemic and are fighting bravely with
the pandemic by risking their lives. It pays a tribute to the doctors of India.
▪ Through this web platform, the general public can logon on to the microsite and share
the thank you message for doctors which can be immediately shared via e-mail, social
media, and WhatsApp.
Paytm Payments Bank crosses 1-crore FASTags mark
▪ Paytm Payments Bank on Wednesday said it has become the first bank in the country to
achieve the milestone of issuing 1 crore FASTags.
▪ According to NPCI, over 3.47 crore FASTags were issued by all banks together till the end
of June 2021.
▪ Paytm Payments Bank (PPBL) now has close to 28 per cent share as FASTag issuer bank
▪ "Besides this, Paytm Payments Bank is also India's largest acquirer of toll plazas for the
National Electronic Toll Collection (NETC) program offering an interoperable
nationwide toll payment solution," it said in a statement.
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Page | 3
COLLABORATION/PARTNERSHIP/NEW PRODUCTS NEWS
HDFC Bank launched ‘Dukandar Overdraft Scheme’
▪ HDFC Bank launched ‘Dukandar Overdraft Scheme’, an overdraft facility for small
retailers in partnership with CSC SPV (Common Service Center).
▪ The scheme by HDFC Bank is aimed at helping shopkeepers and merchants ease their
cash crunch. HDFC Bank will approve an overdraft limit from a minimum of Rs 50,000
to a maximum of Rs 10 lakhs based on the statements. Importantly, HDFC Bank won’t
seek collateral security, business financials, and income tax returns from retailers who
apply for the scheme.
Suryoday Small Finance Bank Launched Health and Wellness Savings account
▪ Suryoday Small Finance Bank (SSFB) has launched a ‘Suryoday Health and Wellness
Savings Account’ to help customers grow their wealth and also take care of their family’s
health amid the covid-19 pandemic.
▪ For opening the savings account, customers will need to maintain an average monthly
balance of Rs 3 lakh and have to be eligible as per the key health declaration form.
Axis Bank inks cloud computing deal with AWS for digital transformation
▪ Axis Bank has inked a multi-year deal with Amazon Web Services, (AWS), the cloud
computing arm of e-commerce giant Amazon, to power the digital transformation
programme of the bank, for meeting the growing demand for its digital banking services.
▪ As a part of the deal, India’s third-largest private sector bank, will take help of AWS
services to build a portfolio of new digital financial services for bringing advanced
banking experiences to customers, including online accounts that can be opened in
under six minutes and instant digital payments.
Razorpay partners with Mastercard to launch ‘MandateHQ’
▪ Razorpay has partnered with Mastercard to launch ‘MandateHQ’, a payment interface
that will help card issuing banks to enable recurring payments for their customers.
▪ Recently, Reserve Bank of India had issued a framework for processing e-mandates on
recurring online transactions. The product by Razorpay is a step in this direction.
▪ The MandateHQ solution can be fully integrated with any bank within seven days.
IDFC First Bank launches ‘Ghar Ghar Ration’ scheme
▪ The IDFC First Bank has launched a unique Employee-funded program called ‘Ghar Ghar
Ration’ for its low-income customers who were affected by Covid-19.
▪ Under the Ghar Ghar Ration scheme, the employees of the bank have contributed their
personal income to help such customers who are affected by the deadly pandemic.
▪ It is a first such employee-led initiative by any bank.
Page | 4
Axis Bank inks MoU with Indian Army to offer service salary package
▪ Country's third-largest private lender Axis Bank Tuesday signed MOU with the Indian
Army offering a defence service salary package under its "Power Salute" initiative.
▪ The officers belonging to all the ranks who are serving defence personnel and defence
pensioners will be included under this MoU.
▪ It offers the personal accidental cover of up to Rs 56 lakhs to all army personnel. It
grants an Education Grant additional of upto Rs 8 lakhs. The total Permanent
Disability Cover benefit up to Rs. 46 Lakhs, and permanent Partial disability cover of
up to Rs. 46 lakhs is offered under this MoU. The air Accident cover of Rs1cr is granted
and a free Additional Debit Card for a family member is also offered.
Federal Bank Launches AI-Powered Virtual Assistant For Customers
▪ The Federal Bank launched FEDDY, an Artificial Intelligence-powered virtual assistant
to help customers with banking-related queries anytime.
▪ According to Bank, while most of the similar AI-powered virtual assistants are available
only on its website, FEDDY can be accessed via Alexa, Google Assistant and WhatsApp.
▪ 'FEDDY is also integrated into Google Business Messaging, a first-of-its-kind feat by an
Indian bank. On Google search, FEDDY can be accessed by clicking the 'message/chat'
option available against the searched bank branch.
Paytm Launches small ticket loan product ‘Postpaid Mini’
▪ Financial services and digital payments platform, Paytm, has launched a new product
called Postpaid Mini, that will enable users to get small loans ranging from Rs. 250 to
Rs. 1,000 in partnership with Aditya Birla Finance Ltd.
▪ The Postpaid Mini product is an extension of the ‘Buy Now, Pay Later’ service launched
by Paytm. The loan will have a period of up to 30 days for repayment at 0 percent
interest. Users can use the money to pay for their monthly expenses.
SBI selects Paisalo Digital as National Corporate Business Correspondent
▪ SBI has selected Paisalo Digital as its National Corporate Business Correspondent to
boost its financial inclusion drive with the help of kiosk-based banking services.
▪ As a business correspondent for State Bank of India, Paisalo Digital shall extend its
services and its reach to the general public including its existing customers and new
customers to ensure superior financial inclusion and increasing the outreach,
▪ Paisalo Digital Limited is a Systemically Important Non-Deposit taking NBFC
registered with the Reserve Bank of India. It was incorporated in the year 1992 as a
Private Limited Company, and converted in a Public Limited Company in the year 1995.
SBI launches ‘SIM Binding’ feature for YONO and YONO Lite
▪ India’s largest lender State Bank of India (SBI) has launched a new and enhanced security
feature for its YONO and YONO Lite apps, called ‘SIM Binding’, to protect customers from
various digital frauds. Under the new SIM Binding feature, the YONO and YONO Lite apps
will work only on those devices which have SIM of mobile numbers registered with the
Bank.
Page | 5
‘Digital Prayaas’ - SIDBI
▪ The Small Industries Development Bank of India (SIDBI) has launched an app-based
digital-lending platform named ‘Digital Prayaas’, to sanction loans to entrepreneurs
from low-income groups. The loan will be sanctioned by the end of the day.
▪ Apart from this, SIDBI has tied up with BigBasket to cater to the needs of aspiring youth
in urban areas. SIDBI will on board BigBasket’s delivery partners across the country and
provide loans at an affordable interest rate for purchase of environment friendly e-Bikes
and e-Vans.
RBL Bank picks AWS as preferred cloud provider
▪ Mumbai-based RBL Bank has selected Amazon Web Services (AWS) as its preferred
cloud service provider. The partnership will enable RBL Bank to strengthen its AI
powered banking solutions and drive digital transformation at the Bank
‘Green and Sustainable’ Deposits Programme for Retail Clients – HDFC Bank
▪ HDFC Bank has launched a green and sustainable deposits programme for retail clients,
with an aim to safeguard the environment from climate change.
▪ The funds from these fixed deposits will be used for financing of green and sustainable
housing credit solutions and services.
▪ Interest Rates: 6.55 percent. Maturity period: between 3 to 10 years
NPCI partners with Mashreq Bank to launch UPI in the UAE
▪ NPCI International Payments Ltd (NIPL) has partnered with Mashreq Bank to launch
the payment system facility of Unified Payments Interface (UPI), in the UAE.
▪ Mashreq Bank is the oldest privately owned bank in the United Arab Emirates.
▪ This step will benefit the Indian tourists who travel to UAE for business or leisure
purposes to pay for their purchases using UPI-based mobile applications across shops
and merchant stores in the UAE.
‘Neo Collections’ – Kotak Mahindra Bank
▪ Kotak Mahindra Bank has launched a platform named ‘Neo Collections’, which is a “Do
it Yourself” Digital Repayment Platform for missed loan repayments.
▪ Bank has launched the Neo Collections platform in tie-up with Creditas Solutions.
▪ The main objective of this DIY digital repayment platform is to make repayments for
outstanding loans more convenient for the customers.
HDFC Bank, Paytm tie up to build comprehensive solutions across payment gateway
▪ Fintech major Paytm announced a strategic partnership with India’s largest private
sector lender HDFC Bank wherein the two companies will provide innovative digital
solutions for financial transformation by combining their strengths in banking, lending,
and digital payments space.
▪ Through this partnership, the two financial institutions will build comprehensive
solutions across payment gateway, POS machines and credit products including Paytm
Postpaid which is a buy now pay later (BNPL) solution, easy EMI and Flexi pay, and more.
Page | 6
BharatPe launches P2P lending app ‘12% Club’
▪ BharatPe has launched “12% Club” app that will allow consumers to invest and earn up
to 12 percent annual interest or borrow at a similar rate.
▪ BharatPe has partnered with LenDenClub (RBI-approved NBFC) for this app and lending
arrangement.
▪ Consumers can invest their savings anytime by choosing to lend money on “12% Club”
app. Apart from this, consumers can avail collateral-free loans of up to Rs 10 lakh on the
12 percent Club app for a tenure of 3 months.
Ujjivan SFB Collaborated with Loantap
▪ The Ujjivan Small Finance Bank (SFB) has entered into a partnership with LoanTap
Financial Technologies Pvt Ltd.
▪ They have collaborated to grant personal loans to salaried professionals.
▪ The Ujjivan SFB will offer personal loans from Rs 1 lakh to Rs 10 lakh with a tenure of 48
months through LoanTap’s platform.
‘Salute Doctors’—Banking Solution for Doctors by ICICI Bank
▪ The ICICI Bank has launched ‘Salute Doctors’ which is a comprehensive banking solution
for medical doctors.
▪ The ‘Salute Doctors’ banking solution grants customized banking as well as value-added
services to the doctors.
▪ The solution will prove beneficial to a medical student, senior medical consultant, an
owner of a hospital or a clinic.
Flexiloans partnered with Google Pay
▪ FlexiLoans, which is the digital lending platform has entered into a partnership with
Google Pay. They have partnered to grant digital and feasible loans to SMEs.
▪ By doing so, FlexiLoans has become 1st lender to go live on Google Pay. Through this, the
FlexiLoans will offer loans to over 50,000 small and medium businesses in the next 12
months.
Freo Partnered with HDB Financial Services
▪ The country’s first credit led Neo bank, FREO has entered into a partnership with HDB
Financial Services (HDBFS) to grant a credit line and high-ticket personal loans to
customers in India. FREO’s partnership with HDBFS will enable to offer this product to
the consumers so that they can have an access to the credit anywhere, anytime via a
smartphone. Under this, the customers will get a personalised amount approved which
they can start using immediately.
‘AROGYA SUPREME’ --- SBI General Insurance
▪ The SBI General Insurance launched ‘Arogya Supreme’, which is the health insurance
plan. It offers customers full health insurance coverage which includes 20 basic covers
and 8 optional covers.
Page | 7▪ The policy grants sum insured options up to Rs 5 crore. The customers can select any
one of 3 options i.e. Pro, Plus, and Premium based on the sum insured and coverage
features. The tenure of the policy is between 1 to 3 years.
‘One Mumbai Metro Card’
▪ The Mumbai Metro One Private Ltd (MMOPL) in partnership with Mastercard and Axis
Bank launched ‘One Mumbai Metro Card’.
▪ It will ensure contactless and cashless travel for communities living in Mumbai.
▪ It is a prepaid, open-loop contactless card that can be used as a part of the daily transit
journey via a single tap.
Dhanlaxmi Bank Partnered with SMC Global
▪ The Dhanlaxmi Bank entered into a partnership with SMC Global Securities Limited
(SMC Global) to offer online trading services to customers.
▪ Both the entities will offer an integrated 3-in-1 account comprised of Savings, Demat and
Trading account. Thus, the customers of bank will get a convenient trading experience
and the trading platform will be highly secured, fast and hassle-free one.
‘Optima Secure’ Health Policy – HDFC Ergo General Insurance
▪ The HDFC ERGO General Insurance launched ‘Optima Secure’ which is the health
insurance policy.
▪ The product has the secure, plus, protect, and restore benefits built-in, which combine
to offer customers up to four times their sum insured at no additional charge
▪ The ‘Optima Secure’ policy offers broad coverage from Rs 5 Lacs to Rs 2 Crore. Also,
through the value buy option, the customer can opt for a discount of more than 50%.
U GRO Capital Partnered with Bank of Baroda
▪ The non-bank financier named U GRO Capital has entered into a partnership with the
Bank of Baroda for co-lending to the MSME sector of India at the competitive rate of
interest and reduced turnaround time.
▪ Under this partnership, the programme called ‘Pratham’ was launched which aims to
grant loans for over Rs 1000 crore.
▪ The loan amount ranges from Rs 50 lakhs to Rs 2.5 crore. The interest rate associated
is with the starting from 8% and maximum tenure of 120 months.
SVAAS Wellness Partnered with ICICI Lombard General Insurance Company
▪ Dr Reddy's Laboratories owned SVAAS Wellness has partnered with ICICI Lombard
General Insurance Company to offer cashless outpatient services to health insurance
policyholders in India.
Fampay Partnered with Visa
▪ The FamPay has entered into a partnership with Visa to launch India’s first Visa
Prepaid Card for teenagers with personalized doodles on it.
Page | 8▪ The card is 1st numberless card by Visa.
▪ The card will allow teenagers to perform Near-field Communication (NFC) based contact
payment transactions through the Visa network in India. The card is available in a
personalized format and hence teenage users can select it from 200+ doodles and
signature fonts in order to have a unique design approach on their card.
‘Lumine’ Platinum Credit Card & ‘Eclat’ Select Credit Card
▪ The LIC Cards Services Limited (LIC-CSL) collaborated with IDBI Bank to launch RuPay
credit cards.
▪ The cards are launched on the RuPay platform and during the 1st phase will be available
to LIC policyholders, agents, employees and its subsidiaries.
▪ The cardholders will be able to earn 3 ‘delight’ points on every spend of Rs 100 on the
Lumine card and 4 points on the Eclat card.
‘EQUITECH’ – Equitas Small Finance Bank
▪ The Equitas Small Finance Bank has launched ‘Equitech’, a fintech accelerator
programme for startups.
▪ It will provide legal and regulatory mechanism support to Indian startups through
expert solutions and venture capitalists. To avail the benefit of the programme, the
startups are required to be registered before 6 years, should have atleast 2 full-time
employees with team members and must have an innovative product or services.
‘SBI Life eShield Next’-- SBI Life Insurance
▪ SBI Life Insurance has launched a new life insurance solution named 'SBI Life eShield
Next'.
▪ It is an individual, non-linked, non-participating life insurance solution. The policy is not
linked to the stock market and does not share profit or dividends with the policyholders.
▪ The 'SBI Life eShield Next' executes by increasing the required insurance protection by
increasing the sum assured linked to the significant level-up milestones in one's life.
‘Small Business Loans Initiative’ – Facebook India and Indifi
▪ Facebook India has launched the ‘Small Business Loans Initiative’ in partnership with
Indifi, which is an online lending platform.
▪ Under the initiative, the SMBs (small and medium businesses) who promotes and
advertise their businesses on the Facebook platform will be given quick access to loans
through independent lending partners.
▪ The initiative aims to provide quick access to business loans to the SMB owners, thus
reducing the credit gap within India’s MSME sector.
▪ The SMB will get the loans at the interest rate of 17-20% per annum.
USAID, DFC Partnered with Kotak Mahindra Bank
▪ The USAID (United States Agency for International Development) and USDFC (U.S.
International Development Finance Corporation) have partnered with Kotak Mahindra
Bank for the purpose of offering loan guarantees for women entrepreneurs and
Page | 9MSME units in India.
▪ The USAID and USDFC will be sponsoring a USD 50 million loan portfolio guarantee to
the Kotak Mahindra Bank. The credit support will be granted to the end borrowers which
will result in sustained and inclusive economic growth.
▪ It will result in economic empowerment of the women and about 50% of the loans will
be offered to women-led or women-managed MSMEs. Around 30,000 individual women
borrowers and 7500 MSMEs will be benefited from this partnership.
‘Freo Save’ – Saving Account by Freo
▪ India’s 1st credit led Neo bank named Freo has launched a zero balance saving account
named ‘Freo Save’.
▪ The account was launched in partnership with Equitas Small Finance Bank (SFB).
▪ The ‘Freo Save’ Saving account grants a 7% interest rate and allows to have a minimum
balance of Rs 1 lakh.
‘Ananda’ Mobile App-- LIC
▪ LIC Chairman, MR Kumar launched the ANANDA Mobile App, a digital paperless
solution for on-boarding activities which are done by agents/intermediaries for their
clients. The app will be used to register new LIC policies. The app is built on paperless
KYC processes using Aadhaar based e-authentication.
Cybersecurity Multi-Donor Trust Fund – World Bank
▪ The World Bank has launched a new ‘Cybersecurity Multi-Donor Trust Fund’, to better
roll-out cybersecurity development agenda in a systematic manner.
▪ The new fund has been developed as an associated trust fund under the broader Digital
Development Partnership (DDP) umbrella program.
▪ World Bank has partnered with four countries, namely Estonia, Japan, Germany, and the
Netherlands, to launch the fund.
▪ The main aim of this new fund is enhance cyber and digital security capability and
capacity in World Bank member countries, with development of global knowledge,
country assessments, technical assistance, capacity building and training, along with
necessary investments in infrastructure and technology.
Indian Bank signs MoU with IIT Bombay for startup financing
▪ Indian Bank entered into a memorandum of understanding (MoU) with the Society for
Innovation and Entrepreneurship (SINE), IIT Bombay - an initiative of Indian Institute of
Technology - for extending exclusive credit facility to startups and small businesses.
▪ SINE, IIT Bombay, supports the MSME sector by providing joint research and
development arrangements and technical and financial support for incubation and
acceleration of high-end technology products.
IDFC FIRST Bank inks MoU with Indian Navy to offer “Honour FIRST”
▪ Honour FIRST, a premium banking solution, an exclusive initiative for serving banking
Page | 10requirements personnel and veterans of the Indian Navy.
▪ Honour FIRST Account holders will be given free enhanced Personal Accident Insurance
Cover of Rs. 46 lakhs for both on-duty and off-duty incidents. This not only covers
accidental death but also total and partial permanent disability. This Personal Accident
Insurance Cover includes a Child Education Grant of Rs. 4 lakhs, and a marriage cover of
Rs 2 lakh.
Financial/Loans News
SEBI allowed payments banks to act as investment bankers
▪ SEBI has allowed payments banks to carry out the activities of investment bankers to
provide easy access to investors to participate in public and rights issues by using
various payment avenues, markets regulator. Nonscheduled payments banks, which
have prior approval from the Reserve Bank of India (RBI), will be eligible to act as a
banker to an issue (BTI).
HCL Technologies became 4th IT firm to hit Rs 3 trillion market-cap
▪ HCL Technologies' market capitalisation (market-cap) touched Rs 3 trillion for the first
time on 13th Aug, becoming the fourth Indian information technology (IT) firm to achieve
this milestone after Tata Consultancy Services (TCS), Infosys and Wipro.
Number of Billionaires in India Dropped From 141 to 136
▪ In the pandemic-hit financial year of 2020-21, the number of billionaires in India
dropped from 141 in FY20 to 136 in FY21, as per a statement issued by Finance Minister
Nirmala Sitharaman in the Rajya Sabha.
Infosys became 4th Indian company to touch $100 billion m-cap
▪ Infosys crossed the $100 billion mark in terms of market capitalisation on 24th Aug,
becoming the fourth Indian company. Reliance Industries (m-cap of $140 billion), Tata
Consultancy Services (m-cap $115 billion) and HDFC Bank (mcap $100.1 billion) are the
other Indian firms in the club with Infosys.
PhonePe receives direct broking licence from IRDAI
▪ Flipkart-owned digital payments platform PhonePe has received an insurance broking
licence from the Insurance Regulatory and Development Authority of India (IRDAI). This
means that with the new ‘direct broking’ licence, PhonePe can now distribute insurance
products from all insurance companies in India, on its platform.
Government includes Retail and Wholesale Trade in MSME sector
▪ Ministry of Micro, Small and Medium Enterprises has decided to include Retail and
Wholesale trade as MSMEs but only for the limited purpose of Priority Sector Lending.
▪ This means that these segment of business can now take loan under Priority Sector
Lending arrangement under MSME category.
Page | 11▪ These Retail and Wholesale traders can now register on Udyam Registration Portal. It is
a portal by Government of India for registration of MSMEs.
▪ The registration will be allowed under three categories:
▪ Wholesale and retail trade and repair of motor vehicles and motorcycles
▪ Wholesale trade except of motor vehicles and motorcycles
▪ Retail trade except of motor vehicles and motorcycles.
Ministry of Defence implements SPARSH System for sanction & disbursement of
defence pension
▪ Ministry of Defence has implemented SPARSH [System for Pension Administration
(Raksha)] which is a web-based system, for automated sanction and disbursement of
defence pension.
▪ SPARSH system can processes pension claims and credits pension directly into the bank
accounts of defence pensioners without relying on any external intermediary.
▪ The system has been implemented with agreement between Controller General of
Defence Accounts (CGDA), State Bank of India (SBI) and Punjab National Bank (PNB).
Centre Raises FDI limit in NPS Fund Managers from 49% to 74%
▪ The Government has increased the foreign direct investment (FDI) limit in pension fund
management (PFM) to 74% from the present 49% under the national pension system
(NPS).
▪ For this, an amendment has been made to Pension Fund Regulatory and Development
Authority (PFRDA) Act, 2013 to rename PFRDA (National Pension System Trust)
Regulations 2015 as PFRDA Regulation 2021.
▪ Currently there are 7 Pension Funds in NPS.
NPCI launches digital payment solution e-RUPI
▪ National Payments Corporation of India (NPCI) has launched an innovative digital
solution – ‘e-RUPI’ in association with the Department of Financial Services (DFS),
National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW), and
partner banks.
▪ e-RUPI is a type of payment voucher with a one-time payment mechanism. It is built on
the UPI platform.
▪ Government or Corporate entities would create e-RUPI vouchers through their partner
banks and share this e-RUPI with the beneficiaries for a specific purpose or activity via
SMS or QR code. The beneficiaries will be identified using their mobile numbers.
▪ The users of e-RUPI will be able to redeem the voucher without a card, digital payments
app or internet banking access, at the merchants accepting e-RUPI.
▪ It must be noted that the beneficiary of the e-RUPI voucher need not have a bank account
to use the voucher.
Page | 12NPCI appoints Noopur Chaturvedi as CEO of NPCI Bharat BillPay Ltd
▪ The National Payments Corporation of India (NPCI) has appointed Noopur Chaturvedi
as Chief Executive Officer (CEO) of NPCI Bharat BillPay Ltd. (NBBL).
▪ Chaturvedi will work on the Reserve Bank of India’s (RBI) vision to scale up the Bharat
Bill Pay System (BBPS) platform and make it the most preferred solution for all bill
payments.
▪ NPCI Bharat BillPay Ltd. (NBBL) is a wholly-owned subsidiary of NPCI and came into
effect from 1 April 2021.
18 Indian banks buy stake in new blockchain start-up IBBIC
▪ 18 banks in India have come together to set up a new fintech firm named ‘IBBIC Pvt Ltd
(IBBIC)’, to make use of blockchain technology for the financial services sector.
▪ IBBIC was incorporated in May 2021 as a financial technology company with an objective
of providing a platform for exploring, building and implementing Distributed Ledger
Technology (DLT) solutions including the development of DLT platforms, applications,
ventures for the Indian financial services sector.
▪ IBBIC will use Infosys Finacle Connect platform to digitize and automate inter-
organisation trade finance processes, including processing inland letters of credit (LCs).
▪ The banks includes RBL Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank,
IndusInd Bank, Yes Bank, South Indian Bank, Federal Bank, IDFC First Bank, State Bank
of India (SBI), Bank of Baroda (BoB), Indian Bank, Canara Bank, IDBI Bank, Punjab
National Bank, Union Bank of India and Standard Chartered.
▪ Almost every bank have picked up equal stake of 5.55% in IBBIC, by making an
investment of Rs 5 lakh each.
▪ Each bank will invest Rs 5 Crore in the company, making the total capital of the company
to Rs 75 Crores.
Page | 13Finance minister launches ‘Ubharte Sitaare Fund’ for export oriented MSMEs
▪ Finance Minister of India, Smt. Nirmala Sitharaman, launched the ‘Ubharte Sitaare Fund
(USF)’ of corpus Rs 250 crore for export-oriented small and mid-sized companies. The
launch was done in Lucknow, Uttar Pradesh on August 21, 2021.
▪ The fund will be managed by India Exim Bank and SIDBI. The fund has been launched
under the Ubharte Sitaare Programme (USP) announced in the Budget speech of 2021-
22.
▪ Objective: The objective of the USF is to identify and invest in small and mid-size
ventures in manufacturing and service industries with good export potential that could
be future champions of export and handhold them through the growth phase.
▪ Size of the fund: The corpus of the Fund is Rs. 250 crore with a greenshoe option of Rs.
250 crore. The contribution of SIDBI and India Exim Bank is Rs 40 crore each.
▪ How would the fund help export companies?: The Fund would be invested in export-
oriented units (by way of equity, and equity-like products), both in the manufacturing
and services sectors, across India and facilitate companies in the export market to attain
greater heights.
Finance Minister unveils 4th edition of Public Sector Bank Reforms Agenda (EASE
4.0)
▪ Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman has unveiled
the fourth edition of the Public Sector Bank (PSB) Reforms Agenda ‘EASE 4.0’ for 2021-
22. The major theme for EASE 4.0 is “Technologyenabled, simplified, and collaborative
banking.”
▪ EASE stands for- Enhanced Access & Service Excellence (EASE).
▪ Aim: EASE 4.0 aims to further the agenda of customer-centric digital transformation and
deeply embed digital and data into PSBs’ ways of working. EASE 4.0 sets the agenda and
roadmap to transform all PSBs into digital-attacker banks working hand-in-hand with
key constituents of the financial services ecosystem to offer industry-best customer
experience.
▪ Key Initiatives under EASE 4.0:
• Smart Lending for Aspiring India
• New Age 24×7 banking with resilient technology
• Collaborative banking for synergistic outcomes
• Tech-enabled Ease of Banking
• Institutionalizing Prudent Banking
• Governance and Outcome Centric HR
Government approves increase of Bank Employees Family Pension to 30% of last
salary drawn
▪ Central Government has approved the Indian Banks’ Association’s (IBA) proposal to
increase the family pension to 30% of the last salary drawn.
▪ After this, the family pension would go up to as much as Rs 30,000 to Rs 35,000 per
family of bank employees.
Page | 14▪ The Government has also approved the proposal to increase employers’ contribution
under the NPS to 14% from the existing 10%.
PFRDA increases the entry age in National Pension System (NPS) to 70 years
▪ The Pension Fund Regulatory and Development Authority (PFRDA) has increased the
entry age for the National Pension System (NPS) from 65 years to 70 years.
▪ Earlier the eligible age to invest in NPS was 18-65 years which has now been revised to
18-70 years. As per the revised norms, any Indian Citizen, resident or non-resident and
Overseas Citizen of India (OCI) between the age of 65-70 years can join NPS and continue
or defer their NPS Account up to the age of 75 years.
▪ If a person joins NPS after 65 years, then the Normal Exit shall be after 3 years. Exit
before 3 years will be considered premature exit.
▪ There is also a limit on the amount that can be exposed to equity in case the NPS is open
after 65 years. The maximum equity exposure is 15% and 50% under Auto and Active
Choice respectively.
GOI kept Interest Rates on Small Savings Scheme Unchanged For Q2 2021-22
▪ To grant the relief to savers, the GOI announced to keep interest rates on small savings
schemes including NSC and PPF unchanged for the second quarter of 2021-22. The
decision was taken amidst the COVID-19 pandemic.
▪ The Public Provident Fund (PPF) will continue to carry an annual interest rate of 7.1%.
▪ The National Savings Certificate (NSC) will continue to carry an annual interest rate of
6.8%.
▪ The interest rate associated with the Post Office Saving account will be 4%.
Exim Bank to Grant Loan for Kalpataru Power Transmission Senegal Project
▪ The Export-Import (Exim) Bank of India has granted a loan for a power transmission
project being executed by Kalpataru Power Transmission in Senegal.
▪ A loan of USD 35.26 million was granted for the same.
▪ The credit support was granted under National Export Insurance Account (NEIA)
scheme. The scheme offers a safe mode of financing option to Indian project exporters
with support from NEIA Trust.
▪ The loan agreement was signed between Exim Bank and the Ministry of Economy,
Planning and Cooperation of the Republic of Senegal to construct and install a 225 kV
overhead transmission line from Tanaff to Ziguinchor in Senegal. It will be approx.
distance of 92 km.
‘SWIFT GO’ Service
▪ Society for Worldwide Interbank Financial Telecommunication (SWIFT) launched
‘SWIFT Go’.
▪ The ‘SWIFT Go’ is a new solution for the SME (Small Medium Enterprises) sector.
▪ It will allow seamless Low-Value Cross Border Payments facility anywhere in the world
through their bank accounts.
Page | 15▪ The SWIFT Go will allow small businesses and consumers to send fast, predictable,
highly secure, and competitively priced low-value transactions from anywhere in the
world.
‘Swavalamban Challenge fund’
▪ The Small Industries Development Bank of India (SIDBI) in partnership with Foreign,
Commonwealth & Development Office, UK launched 'Swavalamban Challenge Fund
(SCF)'.
▪ The SCF is a challenge fund that will provide funds based on competition.
▪ In the pilot category, applicants can apply with their proposal to pilot/test/trial their
innovative ideas. In the scale-up category, already ongoing or completed projects can be
applied to avail SCF.
▪ Depending on the number of proposals selected under various themes, the funds will be
allotted. For the pilot category, funds upto Rs 20 lakhs will be provided and for the scale-
up category, funds upto Rs 35 lakhs will be provided.
10 of the major banks formed SLMA to support secondary loan market
▪ The ten of the major banks operating in India have formed the Secondary Loan Market
Association (SLMA) with an online platform.
▪ The formation of SLMA was made for trading corporate loans in the secondary market.
▪ The SLMA is a body that regulates the secondary market for corporate loans. The SLMA
was formed on the recommendation of RBI’s Task Force on the development of the
secondary market for corporate loans.
▪ The website and the logo of SLMA were launched by the Executive Director of RBI,
Saurav Sinha.
HDFC Life Releases “Life Freedom Index 2021” Report
▪ HDFC Life has announced the latest findings of its Life Freedom Index (LFI) study.
Established in 2011, the Life Freedom Index (LFI) enables the measurement of ‘financial
freedom’ of consumers across four indices: Financial Awareness Index, Financial
Planning Index, Financial Sufficiency and Adequacy Index, and Financial Liberty Index.
▪ LFI has been instrumental in providing deeper insights into the ever-changing financial
needs of consumers across segments. The latest 2021 LFI study was conducted along
with NielsenIQ across 14 cities (including Metros, Tier 1 and Tier 2) with 1987
respondents.
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