Banking Awareness 2017 Inward Unproblematic Linguistic Communication – Lesson 7

Dear Gr8Ambitionists, inwards today’s Banking Awareness lesson, nosotros shall larn virtually the Newly Established banks inwards India. They are Bandhan Bank, Payment Bank, Mudra Bank as well as Republic of Republic of India Post Payments Bank. Happy Reading 🙂

Banking Awareness 2017 – Newly Arrived Banks

Bandhan Bank

  • Tagline : “Aapka Bhala, Sabki Bhalai”
  • Founded : 23rd August 2015
  • Headquarters : Kolkata
  • Key People : 
    • Ashok Lahiri (Chairman)
    • Chandra Sekhar Ghosh (MD, CEO)
Bandhan Bank Ltd, is an Indian Banking as well as fiscal services company. Bandhan which started equally a micro finance companionship inwards 2001, received banking license past times RBI inwards 2014.
On 23rd August 2015, Union Finance Minister Arun Jaitley officially inaugurated the banking concern inwards Kolkata. Initially it is opened alongside 501 branches as well as l ATMs across India.
Note : Bandhan Bank is the kickoff banking concern to live on laid inwards eastern part of Republic of Republic of India afterward Independence.
RBI licensing norms stipulate that a novel banking concern must get got a Rs. 500 crore capital.

Payment Banks

Recommended past times Nachiket Mor Committee
The destination behind creating these payment banks is to convey virtually fiscal inclusion past times providing small-scale saving accounts as well as payments / remittance service to migrant labour as well as depression income household, small-scale draw of piece of job concern as well as other organized sector.

Note : Payments Banks are expected to achieve customers mainly through their mobile phones rather than traditional banking concern branches.

On 27th Nov 2014, RBI released the concluding guidelines for payment banks. RBI gave licenses to xi entities to launch payment banks on 19th August 2015.
  1. Aditya Birla Nuvo
  2. Airtel M Commerce Services
  3. Cholamandalam Distribution Services
  4. Department of Posts
  5. FINO pay tech
  6. National Securities Depository
  7. Reliance Industries
  8. Dilip Shanghvi, Lord’s Day Pharmaceuticals
  9. Vijay Shekhar Shrama, Paytm
  10. Tech Mahindra
  11. Vodafone M-Pesa
It was too announced that an external advisory commission (EAC) headed past times Nachiket Mor would evaluate the license appplications.
The “in-principle” license is valid for xviii months within which the entities must fulfill the requirements. The RBI volition watch grant total licenses nether Section 22 of the Banking Regulation Act, 1949, afterward it is satisfied that the weather get got been fulfilled.
The cash boundary inwards the accounts is laid to Rs. 1 lakh.
Scope of Activities (What they tin dismiss produce as well as what they can’t produce ?) :
  • They tin dismiss enable transfers as well as remittances through a mobile phone.
  • They tin dismiss number debit cards as well as ATM cards usable on ATM networks of all banks.
  • They tin dismiss offering forex services at charges lower than banks.
  • They tin dismiss offering services such equally automatic payments of bills, as well as purchases inwards cashless, chequeless transactions through a phone.
  • They tin dismiss too offering carte du jour credence mechanisms to 3rd parties such equally the ‘Apple Pay.’
  • They tin dismiss render forex cards to travellers, usable 1 time again equally a debit or ATM carte du jour all over India.
  • They tin dismiss transfer coin straight to banking concern accounts at nearly no toll beingness a part of the gateway that connects banks.
  • They can’t offering loans but tin dismiss enhance deposits of upto Rs. 1 lakh, as well as pay involvement on these balances simply similar a savings banking concern draw of piece of job concern human relationship does.
Rules for Payment Banks :
  1. They get got to maintain CRR alongside RBI on its exterior need as well as fourth dimension liabilities. 
  2. It volition get got to invest minimum 75% of its need deposit balances inwards SLR (Statutory Liquidity Ratio) eligible Govt. securities / treasury bills alongside maturity upto 1 yr as well as gibe maximum 25% electrical current & fourth dimension / F.D. alongside other scheduled banks for operational purpose. 
  3. The minimum paid upwards uppercase required for these banks is 100 crore. 
  4. These banks get got leverage ratio of non less than 3%.

Mudra Bank

MUDRA Ltd. has been coverted into MUDRA small-scale industries evolution Bank of Republic of Republic of India as a wholly owned subsidiary of SIDBI.
MUDRA Bank Micro Units Development as well as Refinance Agency Bank
  • CEO : Jiji Mammen
  • Headquarters : New Delhi
Mudra Bank was launched on 8th Apr 2015 with the Corpus of Rs. 20,000 crore as well as credit guarantee Corpus of Rs. 3000 crore
A credit guarantee fund for MUDRA units (CGFMU) for guaranteeing loans sanctioned nether the system alongside lawsuit from eighth Apr 2015.
  • The National Credit Guarantee Trustee Company Ltd. (NCGTC Ltd), a regime owned company, constituted nether companies deed to deal & operate credit gurantee funds volition live on the trustee of fund. 
  • The Guarantee would live on provided based on a portfolio footing to a maximum extent of 50% of sum inwards default inwards portfolio. 
Functions :
  • Mudra Bank volition undertake re-finance operations as well as render back upwards services alongside focus on Portal Management, information analysis as well as activity advised past times Government of India.
  • Will deed equally a regulator for the micro finance institutions(MFI), providing refinancing services as well as guidelines to MFI.
1st Mudra Card was launched past times Corporation Bank inwards Mangaluru.
This carte du jour was launched past times P. M. Narendra Modi on eighth Apr 2015.

MUDRA Functioning :

  • Mudra Offerings :
    • Re-Finance for Micro units to Commercial Banks / NBFCs / RRBs / Cooperative Banks
      • Small Rtailers / Shopkeepers
      • Women enterpreneurs
      • Manufacturing & Service enterprises inwards Rural, Urban & Semi Urban areas
    • Development & Financial Literacy Support
      • Skill Development, Enterprenuership, Marketing Training, Financial Literacy
Mudra Bank has launched three loan instruments :
  1. Shishu : Covers loan upto Rs. 50,000.
  2. Kishor : Covers loan higher upwards Rs. 50,000 upto v lakhs.
  3. Tarun : Covers loan higher upwards Rs. v lakhs as well as upto 10 lakhs. 
    • It covers land-transport, community, social & personal service, nutrient products & stuff products sector. 

Who are eligible to avail loans from MUDRA banking concern ?

  • Small manufacturing units
  • Shopkeepers
  • Fruits or vegetable vendors
  • Artisans
    More offers inwards time to come :
    1. Mudra Card
    2. Portfolio Credit Guarantee
    3. Credit Enhancement

    India Post Payments Bank (IPPB)

    • IPPB has been of late incorporated equally a Public Limited Company nether the Department of Posts alongside 100% GOI equity.
    Important Timeline :
      • In 2006, it was announced that Republic of Republic of India Post would opened upwards a banking concern to erase its ₹1,000 crore deficit during the 11th Five Year Plan, emulating Poste italiane.
      • In Dec 2013, Republic of Republic of India Post announced that it would install ATMs inwards chiliad of its part across Republic of Republic of India inwards the kickoff one-half of 2014
      • On 27 Feb 2014, Republic of Republic of India Post opened its first ATM in Chennai.
      • In September 2014, a trouble forcefulness was formed past times Prime Minister Narendra Modi which aimed to study ways inwards which the existing postal network could live on leveraged.
        • The trouble forcefulness was headed past times T. S. R. Subramanian.
        • On iv Dec 2014, the trouble forcefulness submitted its written report to Minister for Communications as well as Information Technology Ravi Shankar Prasad.
        • The written report said that to a greater extent than services should live on provided inwards the champaign of banking, insurance as well as e-commerce.
      • On 28 Feb 2015, during the presentation of the Budget it was announced that Republic of Republic of India Post volition usage its large network to run a payments bank.
      • IPPB incorporated equally a world express companionship nether the Department of Posts, Govt. of Republic of Republic of India on 17th August, 2016.
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