Financial Awareness for RBI Grade B-26 July 2017

Financial Awareness for RBI Grade B-26 July 2017

  1. RBI stops printing Rs 2000 notes, focus turns to new Rs 200 notes (Source: MINT)

  • The Reserve Bank of India (RBI) stopped printing Rs 2000 notes about five months ago and is unlikely to print more in the current financial year. About 3.7 billion Rs 2000 notes amounting to Rs 7.4 trillion have been printed so far. That more than compensates for the 6.3 billion Rs 1000 notes that were withdrawn after demonetisation.
  • Separately, RBI’s printing press in Mysuru has also started printing the new Rs 200 notes, which are likely to come into circulation next month.

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Financial Awareness for RBI Grade B-24 July 2017

Financial Awareness for RBI Grade B-24 July 2017

  1. Bank deposit and credit growth recover from demonetisation shock (Source: MINT)

  • Bank deposit growth as on 7 July was 10.74% from a year ago, slower than the 11.21% growth as on 11 November.
  • The demonetisation decision was announced on 8 November and it led to a huge influx of deposits into banks as people rushed to deposit their old five-hundred and thousand-rupee notes.
  • The fact that the year-on-year (y-o-y) rate of growth in bank deposits is now slower than what it was at the beginning of demonetisation indicates that bank deposit growth is now back to normal.
  • That is also true for growth in bank credit. Growth in non-food credit as on 7 July was 6.87% year-on-year, faster than the rate of growth as on 25 November, although it’s still below non-food credit growth as on 11 November.

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Financial Awareness for RBI Grade B-21 July 2017

Financial Awareness for RBI Grade B-21 July 2017

  1. ICICI Bank offers up to Rs. 15 lakh instant personal loan via ATMs (Source: BL/ ET)

  • ICICI Bank has launched a facility whereby its existing salaried customers can avail personal loans at ATMs. These customers can get pre-qualified personal loans up to 15 lakhs in their savings account instantly.
  • The facility offers a bouquet of features – swift application in simple steps, multiple eligible loan amount options up to Rs. 15 lakh based on pre-checked CIBIL scores and instant transfer of the money to the customer’s account.
  • The facility also incorporates an additional level of authentication to make the security of the offering robust. Through this offering, a customer can get personal loans of up to Rs. 15 lakh for a fixed tenure of 60 months.

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Financial Awareness for RBI Grade B-20 July 2017

Financial Awareness for RBI Grade B-20 July 2017

  1. Finance ministry working on capital infusion for PSU banks, to be announced soon (Source: MINT)

  • The finance ministry is working on the capital infusion strategy for public sector banks and an announcement to this effect will come soon.
  • The funds’ infusion matrix as per the Indradhanush scheme is being given a final shape on the basis of representations from various banks for their capital needs. · Although the Indradhanush scheme has assigned Rs10,000 crore for the current fiscal, it may prove insufficient due to high provisioning requirement for bad loan resolution through various processes, including insolvency and bankruptcy proceedings.

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Financial Awareness for RBI Grade B-19 July 2017

Financial Awareness for RBI Grade B-19 July 2017

  1. Bankruptcy proceedings against Monnet Ispat, Alok Industries get NCLT nod (Source: MINT)

  • Bankruptcy proceedings against Monnet Ispat and Energy Ltd and Alok Industries Ltd were approved by different benches of the National Company Law Tribunal (NCLT).
  • They become the second and third among the big 12 firms identified for early bankruptcy proceedings by the Reserve Bank of India (RBI) where the process has gone into the second stage. Jyoti Structures was the first.

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Financial Awareness for RBI Grade B-18 July 2017

Financial Awareness for RBI Grade B-18 July 2017

  1. Gujarat HC turns down Essar Steel plea against RBI’s insolvency proceedings (Source: BS/ ET)

  • The Gujarat High Court on July 17th disposed of Essar Steel’s petition against insolvency proceedings initiated by its lenders after a directive by the Reserve Bank of India (RBI).
  • This is likely to smoothen the insolvency proceedings against Essar as well as the 11 other non-performing accounts identified by the RBI. The four other steel companies on the list, however, have already said they would cooperate with lenders and not move the court to stall proceedings.
  • The Ahmedabad bench of the NCLT is likely to take up insolvency proceedings against Essar Steel, initiated by a consortium of 22 banks led by the State Bank of India as well as Standard Chartered Bank. The court asked the RBI to see to it that benefits of all its schemes were “equally offered and extended to all without discrimination”.

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