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Axis Bank crosses one million customers on WhatsApp banking
Axis Bank has crossed the milestone of over one million customers on its WhatsApp banking channel with a total request count of 6 million till now.
- Axis Bank had launched banking services on WhatsApp in January 2021 and has since witnessed robust organic growth in its customer base for WhatsApp banking.
About Axis Bank:
- Axis Bank CEO: Amitabh Chaudhry;
- Axis Bank Headquarters: Mumbai;
- Axis Bank Tagline: Badhti Ka Naam Zindagi
SBI General Ties Up With SahiPay To Expand Each In Rural Areas
To increase non-life insurance penetration in the rural market, SBI General Insurance will tap customers of fintech player SahiPay, which provides digital and financial services in the semi-urban and rural parts of the country.
- SBI General Insurance on Monday announced a partnership with Manipal Business Solutions, the promoter of SahiPay.
- Through this partnership, SBI General will provide a bouquet of non-life insurance solutions to SahiPay customers, the insurer said in a release.
SBI General Insurance CEO: Prakash Chandra Kandpal.
Federal Bank launches “FEDDY” AI-Powered virtual assistant for customers
The Federal Bank has launched “FEDDY”, an Artificial Intelligence-powered virtual assistant to help customers with banking-related queries anytime.
The bank said 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.
- The signing of the Service Level Agreement and other formalities shall be done shortly.
- Paisalo is tapping into the Rs 8 lakh crore market opportunity of small-ticket loans for India’s 365 million unbanked population.
- Paisalo Digital Limited is a Systemically Important Non-Deposit taking NBFC registered with the Reserve Bank of India.
- Competition Commission has given its nod for the proposed investments by Carlyle Group and other investors in PNB Housing Finance Ltd.
- The transaction has been approved by the Competition Commission of India (CCI) under the Green Channel, an official release said on Wednesday.
- Green Channel is an automatic approval system wherein a combination is deemed to have been approved by the regulator upon the filing of the notice for the combination by the parties concerned.
- Eventually, the deal, which is subject to various regulatory approvals, would also result in Carlyle group taking a controlling stake in PNB Housing Finance.
- However, this deal ran into rough weather after SEBI intervened and asked PNBHFL not to go ahead with the deal until the Housing Finance company undertakes valuation of its shares by an independent agency.
- PNBHFL later preferred an appeal before the Securities Appellate Tribunal (SAT), which has reserved its order
- Competition Commission of India (CCI) is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.
- Competition Commission of India aims to establish a robust competitive environment.
- Through proactive engagement with all stakeholders, including consumers, industry, government and international jurisdictions.
- By being a knowledge intensive organization with high competence level.
- Through professionalism, transparency, resolve and wisdom in enforcement.
- In accordance with the provisions of the Amendment Act, the Competition Commission of India and the Competition Appellate Tribunal have been established.
- Government replaced Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT) in 2017.
- SAT is a statutory body established under the provisions of Section 15K of the SEBI Act, 1992.
- The Presiding officer of SAT shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
- To hear and dispose of appeals against orders passed by the SEBI or by an adjudicating officer under the SEBI Act,1992.
- To hear and dispose of appeals against orders passed by the Pension Fund Regulatory and Development Authority (PFRDA).
- To hear and dispose of appeals against orders passed by the Insurance Regulatory Development Authority of India (IRDAI).
- National Fisheries Development Board (NFDB) under Ministry of Fisheries, Animal Husbandry & Dairying, Government of India has today entered into an MoU with Punjab National Bank, the premier Bank in the country, to extend financial assistance through the Bank.
- The ongoing project, approved in August 2019, has been improving and maintaining the condition and safety of 2,100 kilometres (km) of rural roads across Maharashtra.
- The additional financing will improve an additional 1,100 rural roads and 230 bridges for a total length of 2,900 km in 34 districts, the Multilateral funding agency added.
- A challenge fund is a fund support mechanism to allocate funds for specific purposes using competition among organizations.
- Suppose there is an idea which needs to be piloted or scaled up, but funds are an issue, challenge fund provides solution platform to present the idea in prescribed theme, implement and validate it. Later the same can be scaled up by leveraging other donor / financier support.
- SCF shall provide financial support to non-profit organizations/educational institutions/social startups which have focus on sustainable livelihood, financial inclusion, and access to financial services besides promoting the culture of entrepreneurship in the country.
RBI Monetary Policy Highlights:
The RBI panel has hiked the inflation target for fiscal 2021-22 to 5.7 per cent from 5.1 per cent projected earlier.
- Although the target is below the RBI’s upper band of inflation target of six per cent, input prices are rising across manufacturing and services sectors and weak demand and efforts towards cost cutting are tempering the pass-through to output prices
The Monetary Policy Committee (MPC) has decided to maintain status quo and keep interest rates unchanged.
- Currently, the repo rate is 4 percent and reverse repo rate is 3.35 percent.
- Reserve Bank of India (RBI) Governor Shaktikanta Das said the policy stance continues to be "accommodative".
The MPC has retained its GDP growth projection of 9.5 percent for FY22.
Regulatory Decisions
- RBI extended the on-tap targeted long term repo operations (TLTRO) scheme till December 31
- Banks can now avail of funds under the marginal standing facility for another three months up to December 31
- RBI has permitted banks to extend export credit using any other Alternative Reference Rate in the currency concerned
- To conduct two more GSAP auctions of Rs 25,000 crore on Aug 12, Aug 26
Variable rate reverse repo (VRRR)
Central bank announced a number of fortnightly variable rate reverse repo (VRRR) windows for banks to park their excess liquidity.
- The VRRR auctions will run between August 13 and September 24, starting with Rs 2.5 trillion and rising by Rs 50,000 crore in each auction till it reaches Rs 4 trillion.
“The RBI is in ‘whatever it takes’ mode to support growth,” Das said in a post-policy interaction with the media. “A pre-emptive monetary policy response at this stage may kill the nascent and hesitant recovery that is trying to secure a foothold in extremely difficult conditions,” he said in his policy statement.
Know All About Monetary Policy Committee
The Monetary Policy Committee is a statutory and institutionalized framework under the Reserve Bank of India Act, 1934, for maintaining price stability, while keeping in mind the objective of growth.
Formation:
- An RBI-appointed committee led by the then deputy governor Urjit Patel in 2014 recommended the establishment of the Monetary Policy Committee.
Chairman:
- The Governor of RBI is ex-officio Chairman of the committee.
Members:
- The committee comprises six members (including the Chairman) - three officials of the RBI and three external members nominated by the Government of India.
Decisions :
- Decisions are taken by majority with the Governor having the casting vote in case of a tie.
Function:
- The MPC determines the policy interest rate (repo rate) required to achieve the inflation target (4+/-2%).
Key Terms
Repo and Reverse Repo Rate:
- Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Here, the central bank purchases the security.
- Reverse repo rate is the rate at which the RBI borrows money from commercial banks within the country.
Liquidity Adjustment Facility (LAF):
- It is a tool used in monetary policy by the RBI, that allows banks to borrow money through repurchase agreements (repos) or for banks to make loans to the RBI through reverse repo agreements.
Bank Rate:
- It is the rate charged by the RBI for lending funds to commercial banks.
Marginal Standing Facility (MSF):
- MSF is a window for scheduled banks to borrow overnight from the RBI in an emergency situation when interbank liquidity dries up completely.
- Under interbank lending, banks lend funds to one another for a specified term.
Cash Reserve Ratio (CRR):
- Banks are required to hold a certain proportion of their deposits in the form of cash. This minimum ratio (that is the part of the total deposits to be held as cash) is stipulated by the RBI and is known as the CRR.
Monetary Policy Stances of RBI
In every monetary policy review meet, RBI tells about its future course of action which is also called "Forward Guidance"
Forward Guidance is basically a communication from a central bank about the state of the economy and likely future course of monetary policy.
- "Accommodative" stance means that going forward there are chances that RBI will reduce interest rates/repo rate or through some other measures try to put more money/liquidity in the economy.
- If the Stance is "Neutral" that means going forward RBI may increase/decrease the repo rate.
- If the Stance is Hawkish, that means RBI in future may increase the repo rate/interest rate.
RBI disseminates information to the markets regarding what will be its rate/police in future and that is why after every MPC meeting it also tells its "Stance"
- Accommodative means expansionary which means low repo by RBI and more expenditure by Government
- Accommodative = Dovish = Expansionary = Easy Monetary Policy
- Hawkish=Contractionary= Tight Money Policy
Countercyclical: Presently economic cycle is in slowdown/recession and RBI/Govt. policy is countering that economic cycle (recession/slowdown) by keeping repo rate low and by increasing govt. expenditure.
News Source : Business Standard, First Press, Business Line and Mint
