Financial Awareness-March(11-20) 2017

  1. Public sector banks rush to get cyber insurance policies (Source: ET)
  • Public sector banks are pulling up their socks in cyber insurance. Many state-owned commercial banks are rushing to buy insurance for threats such as hacking, including data loss and associated liabilities.
  • This comes in the wake of the Reserve Bank of India tightening reporting for banks, which for long ignored cyber threats, as well as a greater realisation among banks about the potential dangers of living in a digital world without cover. Banks are seeking more cover for first-party costs related to forensics and cyber experts in case of a claim. This will pay for costs of post-breach investigations as well. Insurers said that in many cases, the cost of external experts was higher than the financial loss caused by a cyber breach. The RBI has issued guidelines to banks to ensure cyber security for addressing risks emerging from new technology.

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Financial Awareness-March(1-10) 2017

  1. Bank loan market could revive soon as bonds become costly (Source: BS)
  • Bank loans are becoming attractive for companies that had shifted to the bond market. Banks recently lowered their interest rates and are expected to hold on to current levels for some time, considering not all the monetary easing has been passed on to customers.
  • But bond yields have started rising in anticipation of a rate-hike scenario. Banks are clear that lending rates are not going to fall further.

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Financial Awareness-February(21-28) 2017

  1. BharatQR code launched (Source: MINT)
  • Retail electronic payments will become more seamless with the launch of BharatQR code—a quick response (QR) code mandated by the government to enable digital payments without card swiping machines.
  • Currently, the QR code-based acceptance systems in the country are largely closed systems. Right now only 15 banks have come on board and are in the process of deploying Bharat QR code. The 15 banks are Axis Bank, Bank of Baroda, Bank of India, Citi Union Bank, DCB Bank Ltd, Karur Vysya Bank, HDFC Bank Ltd, ICICI Bank Ltd, IDBI Bank Ltd, Punjab National Bank, RBL Bank Ltd, State Bank of India, Union Bank of India, Vijaya Bank and Yes Bank Ltd.
  • BharatQR is a common QR code jointly developed by all the four major card payment companies—National Payments Corp. of India that runs RuPay cards, MasterCard, Visa and American Express—under instructions from the Reserve Bank of India (RBI).
  • It is a major revolutionary step because of interoperability. The merchants will be identified by one QR code whether the payment is through MasterCard, Visa or RuPay and this will result in deepening of acceptance infrastructure. Besides working as a common interface for the Visa/MasterCard/RuPay platform, BharatQR will also facilitate acceptance using Aadhaarenabled payments and Unified Payments Interface (UPI).

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Financial Awareness-February(11-20) 2017

  1. Govt said to cut bank capital infusion for this fiscal because of slow loan growth (Source: MINT)
  • Government may cut the amount of capital it plans to inject into state-controlled lenders this fiscal year by as much as Rs7,800 crore($1.2 billion) because of slow loan growth
  • India can infuse the deferred Rs7,800 crore in the coming fiscal year, along with the Rs10,000 crore pledged for the period as part of the Union budget revealed on 1 February.

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Financial Awareness-February(1-10) 2017

  1. Budget 2017: State-run banks gain 4% on Rs10,000 crore infusion announcement (Source: MINT)
  • Shares of public sector banks on February 1st rose by as much as 4% as the government announced infusion of Rs10,000 crore in public sector banks in the next fiscal year.
  • Union Bank of India closed up 5.64%, Bank of Baroda rose 4.88%, State Bank of India went up 3.96% and Punjab National Bank gained 3.24% on the BSE in the closing hours.
  • “As per the Indradhanush plan, the public sector banks will be provided with Rs10,000 crore in the next fiscal. Additional allocation would be made if required,” said FM.

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Decoding Union Budget 2017-18


Though the Union Budget is essentially a Statement of Account of public finances, it has historically become a significant opportunity to indicate the direction and the pace of India’s economic policy. The 2017-18 Union Budget was presented amidst a somewhat wobbly backdrop of the world economy facing considerable uncertainty, increasing signs of a retreat from globalization of goods the world over, and high expectations from people back home relating to good governance. Amidst all these developments, India has stood out as a bright spot in the world economic landscape. India‟s macro-economic stability continues to be the foundation of economic success. Continue reading “Decoding Union Budget 2017-18”