Focus Merit

Category: Banking

RBI Ranks 6th among central banks in buying gold abroad in 2019: WGC Report

January 19, 2020

The Reserve Bank of India (RBI) was the sixth largest gold buyer abroad in the year 2019, as per the World Gold Council (WGC) report titled, “World Gold Outlook 2020”. The RBI currently holds 625.2 tonnes of gold, which is 6.6 percent of its forex reserves.

RBI bought 7.5 tonnes of gold in October 2019, to increase its foreign exchange reserves to $450 billion. The central banks of China, Russia, Kazakhstan, Turkey, Poland bought more than India in 2019 respectively.

The report is a compilation of lists that rank 28 cities around the world to purchase luxury goods and services. Out of 28 cities, Mumbai was ranked as the cheapest city for purchasing luxury goods and services, while Hong Kong was found to be the most expensive.

HDFC Bank launches myApps to boost digital payments

January 10, 2020

HDFC Bank launched myApps application to boost digital payments in India. myApps is a unique customised suite of banking products to benefit urban local bodies, housing societies, local clubs and gymkhanas and religious institutions. In a first, HDFC bank is helping organisations to entirely digitise their ecosystem through myApps. At present HDFC Bank is offering four types of applications — mySociety, myClub, myPrayer and myCity.

myApps will allow institutions to customise their branding and content. One can publish their application on the Google PlayStore or Apple AppStore in the name of the institution, myApps will be free to all members of each institution. There will be no monthly subscription charges. Members can pay monthly bill or fee and make an online booking for different facilities via myApps.

myApps will enable the organisation to get easy access to reports on payments, facilities booked by members, requests and complaints registered by users. They can also use the app to broadcast notices and engage with members on various events. There are also no restrictions on the number of users.

Sale of Electoral Bonds at Authorised Branches of SBI

January 10, 2020

State Bank of India (SBI), in the XIII Phase of sale, has been authorised to issue and encash Electoral Bonds through its 29 Authorized Branches w.e.f. 01.2020 to 22.01.2020. As per provisions of the Scheme, Electoral Bonds may be purchased by a person who is a citizen of India or incorporated or established in India. A person being an individual can buy Electoral Bonds, either singly or jointly with other individuals.

Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, shall be eligible to receive the Electoral Bonds.

The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account with the Authorized Bank. It may be noted that Electoral Bonds shall be valid for fifteen calendar days from the date of issue and no payment shall be made to any payee Political Party if the Electoral Bond is deposited after expiry of the validity period. The Electoral Bond deposited by an eligible Political Party in its account shall be credited on the same day.

SBI’s report ‘Ecowrap’ lowers India’s growth rate to 4.6% for FY 2020

January 10, 2020

The State Bank of India (SBI) has released its research report ‘Ecowrap’. In the report ‘Ecowrap’, the economic research department of SBI has lowered India’s growth rate to 4.6% in the fiscal year 2020. The report also stated that agriculture and allied activities are expected to grow at 2.8%, while growth in industry projected to grow at 2.5% in fiscal year 2020. The service sector is also expected to increase to 6.9% in fiscal year 2020.

All-in-one QR for merchants launched by Paytm

January 9, 2020

Digital payments firm Paytm announced the launch of its all-in-one QR for merchants across the country. This QR will enable merchants to accept unlimited payments through Paytm Wallet, Rupay Cards and all UPI-based payment apps directly into their bank account at zero per cent fee. The platform offers a single reconciliation of all payments through its ‘Paytm for Business’ app.

Owned by One97 Communications Limited, the mobile wallet company currently enjoys 54 per cent market share of mobile payments for merchants. The all-in-one QR is a must-have business tool as it is only payment QR that allows merchants to accept payments from Paytm wallet, all UPI apps, and cards. The new smart device for payment processing ‘soundbox‘ is one of the QR merchandise that allows the merchants to hear confirmation of payment receipt, which supports all payment modes and multiple languages.

India’s economy to reach $7 trillion by 2030: Deutsche Bank

January 9, 2020

Deutsche Bank has projected that Indian economy will reach $7 trillion by 2030. The estimation was stated by Deutsche Bank in its research report “Imagine 2030”. According to the report, India will grow with the Nominal GDP growth rate of just over 10% in the next decade. Indian economy is presently valued at $3 trillion.

India’s economic growth may remain below potential in the near term. However, ongoing government measures are expected to provide a major push to its potential in the future. The decision to reduce corporate tax rate will likely incentivise greater foreign direct investment flow into the country and support private investment.

SBI announces RBBG scheme

January 9, 2020

The State Bank of India has announced ‘residential builder finance with buyer guarantee’ (RBBG) scheme. The aim of the scheme is to giving a push to residential sales and improve homebuyers’ confidence.

The scheme will focus on affordable housing projects priced up to 2.50 crore rupees in 10 cities initially. Under this scheme, the guarantee would be given by the bank until the project gets the occupation certificate (OC).

Equitas Small Finance Bank waives non-maintenance charges

January 8, 2020

Equitas Small Finance Bank stated it has waived non-maintenance charges on all savings accounts besides offering lower transaction charges to customers. The bank offers upto 5 per cent per annum on savings and upto 8.25 per cent per annum on fixed deposits and 0.60 per cent extra for senior citizens.

They intend to further strengthen the  liability franchise with a focus on growing the  retail deposit and CASA deposit base to provide with a stable and low-cost source of funding. Premature closure of accounts and partial withdrawal is also permitted for senior citizens.

RBI buys three long-term securities worth Rs 10,000 cr in 3rd special OMO

January 8, 2020

In the third special open market operation in many weeks, the Reserve Bank of India (RBI) bought three long-term securities worth 10,000 crore rupees each while selling the same amount of three short-term bonds.The RBI had announced simultaneous purchase and sale of Government Securities (G-Secs) under Open Market Operations (OMOs) for 10,000 crore rupees each.

Though the RBI offered to sell four securities in the auction, it accepted bids for three bonds. In the current OMO purchase auction, the RBI offered to purchase three securities including 10-year benchmark government bond, as against just one bond in the previous two auctions. It got bids worth 64,505 crore rupees for the three bonds but choose to accept only bids of 10,000 crore rupees under the OMO purchase auction.

RBI allows to offer 24×7 rupee trading via select banks

January 8, 2020

The Reserve Bank of India (RBI) has enabled select banks in India to offer round-the-clock (24×7) trading in the Indian rupee to allow Indians to safeguard their foreign exchange (Forex) risks at any time. The select banks in India offered Indian customers foreign exchange rates only in inter-bank market hours from 9 am – 5 pm. This decision will also make the offshore currency markets in countries like Dubai & Singapore less attractive for Indian investors.