Banking - General Knowledge Questions

Correct Answer :   The Kapol Co-operative Bank

The RBI on Monday (25th Sep 2023) said it has cancelled the license of Mumbai-based The Kapol Co-operative Bank Limited as the lender does not have adequate capital and earning prospects.

Consequent to the cancellation of the license, the cooperative bank has been prohibited from conducting the business of 'banking' which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect, the Reserve Bank said in a statement.

The Additional Secretary & Central Registrar of Cooperative Societies, Ministry of Cooperation, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, it said.

On liquidation, the RBI said every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹ 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).

About 96.09 per cent of the depositors are entitled to receive full amount of their deposits from DICGC.

Giving details, the RBI said the bank does not have adequate capital and earning prospects and its continuance is prejudicial to the interests of its depositors.

"The bank with its present financial position would be unable to pay its present depositors in full," the RBI said.

As of July 24, 2023, DICGC has already paid ₹ 230.16 crore of the total insured deposits based on the willingness received from the concerned depositors of the bank..

Source : NDTV

Correct Answer :   PNB

Power PSU REC Ltd and public lender Punjab National Bank (PNB) on Tuesday (26th Sep 2023) inked an agreement to co-finance projects in power, infrastructure and logistics projects.

The two entities will jointly finance loans worth Rs 55,000 crore, REC said in a statement.

"REC Limited signed an MoU with Punjab National Bank (PNB) on Tuesday (26th Sep 2023) to jointly explore the possibility to fund the Power Sector and Infrastructure and Logistics Sector projects under the consortium arrangement. REC and PNB will associate with each other to co-finance loans amounting to Rs 55,000 crore over the next three years," the statement said.

The memorandum of agreement was signed between TSC Bosh, Executive Director (Infra & Logistics), REC, and PNB Chief General Manager Rajeeva in the presence of other senior officials of the two companies.

Under the Ministry of Power, REC Limited provides long-term loans and other finance products for the power infrastructure sector, comprising generation, transmission, distribution, and renewable energy, among others.

The company has a loan book of over Rs 4,54,393 crore..

Source : India Times

Correct Answer :   Utkarsh Small Finance Bank

Utkarsh Small Finance Bank Limited ("USFBL" or the "Bank"), announced (22nd Sep 2023) the launch of an innovative service, set to revolutionise cash withdrawal experiences. Utkarsh Small Finance Bank is dedicated to offering process-centric, technology-driven, and customer-oriented services that lead to a reliable, scalable, and sustainable institution, driving socio-economic change.

The Bank is pleased to announce the launch of Interoperable Cardless Cash Withdrawal (ICCW) service, that utilises UPI (Unified Payments Interface) on its ATM networks. This is In line with the Reserve Bank of India's directive in May 2022, urging all banks to provide Interoperable Cardless Cash Withdrawal (ICCW) options at their ATMs, and Utkarsh Small Finance Bank has taken the lead in fulfilling this mandate.

The ICCW service empowers bank customers who are active on UPI to conveniently withdraw cash from Utkarsh Small Finance Bank ATMs designated for UPI-ATM - ICCW transactions, all without the need for a physical debit card.

Key Features of ICCW :

The ICCW facility brings forth numerous advantages, including :

1. Elimination of skimming, cloning, and other card-related frauds
2. Generation of a single-use (signed) dynamic QR code for each transaction, enhancing security
3. Freedom from carrying multiple physical cards for cash withdrawals, as ICCW permits withdrawals from multiple accounts linked to UPI
4. Accessibility for customers who have completed KYC (Know Your Customer) but have not yet received a physical card.


How ICCW Works :

1. Visit a Utkarsh Small Finance Bank ATM.
2. Select the 'UPI Cash Withdrawal' option.
3. Enter the desired withdrawal amount, triggering the display of a QR code on the ATM screen.
4. Utilize a UPI app enabled for ICCW to scan the QR code.
5. Authorize the transaction with your UPI PIN on your mobile device.
6. On the ATM screen, tap 'Press here for cash.'
7. Witness the cash being dispensed seamlessly.
For customers with multiple bank accounts linked to a single UPI ID, ICCW functionality offers the flexibility to select the desired account for debiting.


Transaction Limits :

Initially, customers can enjoy up to two ICCW transactions per day per account, with a withdrawal limit of Rs. 10,000/- per transaction. It's worth noting that these limits are subject to potential future adjustments for enhanced flexibility.


Source : Business Standard

Correct Answer :   Axis Bank

Axis Bank has launched a transaction banking platform for the Indian Micro, Small and Medium Enterprises (MSMEs) called NEO for Business. According to the company's statement, it will cater to the "real, current, and emerging" transaction needs of Indian MSMEs.

* The NEO for Business platform offers features like digital self on-boarding, bulk payments, GST compliance invoicing, payment gateway integration, end-to-end transaction tracking, auto reconciliation, cash flow reports, and recurring collections, among others.

* India currently has over 65 million MSMEs, which contribute over 30 per cent to India's gross domestic product (GDP).

* "The MSME Business Banking landscape is evolving rapidly, and there is a need for a comprehensive solution for all their Banking and Beyond Banking requirements," said Neeraj Gambhir - Group Executive and Head - Treasury, Markets and Wholesale Banking Products, Axis Bank.

* "'NEO by Axis Bank' was launched as a platform for our corporate banking customers, offering a complete suite of digital banking products and services. Within this platform, our newly launched 'NEO for Business' is a one stop solution for the business requirements of MSMEs."

* 'NEO by Axis Bank' offers a range of products and services for its corporate customers and clients, including internet banking, mobile app and APIs.


Who can use NEO for Business?

* Existing Axis Bank Current Account customers can use NEO for Business on mobile by downloading a mobile app or through a simple web-based digital registration.

* "It currently caters to sole proprietorship entities and individuals who form a considerable part of MSME addressable pool in the industry. Axis Bank will soon be extending the platform to companies, partnerships, and LLPs," the bank said..

Source : Business Standard

Correct Answer :   Ujjivan Small Finance Bank

Ujjivan Small Finance Bank (Ujjivan SFB) on Friday (15 September 2023), announced the introduction of the Maxima Savings Account and Business Maxima Current Account for the premium customer segment.

The annual interest rate on the Maxima Savings Account is up to 7.5 percent and customers can open the account with Rs 1 lakh.

Customers also have the flexibility to maintain Rs 15 lakh or more in fixed deposits to meet the balance eligibility criteria of the Maxima Savings Account. Other services offered by Maxima Savings Account include higher transaction limits, free cheque and DD Issuances, Ujjivan Small Finance Bank said in a statement.

A complimentary health prime benefit is also offered with the Maxima Savings Account to applicable customers, it said.

Business Maxima Current Account provides businesses and entrepreneurs with services designed to meet their unique needs. It features online banking, instant fund transfers, and cash management options.

Notable features include the ability for businesses to define their own cash deposit limit, a higher daily ATM withdrawal limit of Rs 5 lakh per day, the provision of beyond banking services such as account services for merchants, and free installation and rental fees for POS services. In addition, business account holders will have access to specialised relationship managers to guide and serve their customised banking needs, the bank said.

Both the Maxima Savings Account and the Business Maxima Current Account offer a RuPay Select Debit Card that provides access to wellness services, exclusive merchant offers, airport lounge access, and a premium health checkup..

Source : CNBC

Correct Answer :   IndusInd Bank

IndusInd Bank on Thursday, (14 September 2023), announced the launch of the ‘Virtual Commercial Card' to redefine cross-border transactions for corporates and travel agents.

* In a tie-up with Visa, this virtual card has additional layers of security which grants the users control over their international expenses, making it a safe and hassle-free experience for the customers, IndusInd Bank said.

* Launched as ‘Virtual commercial Credit Card’, this offering is tailored to cater to the requirements of corporates and travel industry, who make numerous bookings in multiple foreign currencies.

* "With the Virtual Commercial Cards, these commercial users can generate virtual cards or credentials in foreign-denominated currencies as well, safeguarding the parent card number, ensuring utmost security for transactions. Each virtual card can be fully customised with transaction-specific limits and even the expiry dates can be defined to ensure secure and seamless payment experience," IndusInd Bank said.

* Ramakrishnan Gopalan, Head – Products, India & South Asia, Visa said, “Providing a high degree of control, reduced complexity and complete transparency, this commercial card solution built on the Visa Payables Automation platform also allows for multiple user access and better expense management, while providing the highest standards of transaction security.”

* Sheetal Lalwani, Cofounder & COO, Juspay said, “We’re making it easy for the buyers and suppliers in the corporate & travel industry to streamline their payments processes with our intuitive, frictionless, tokenisation-cum-AFA regulation compliant, and maker-checker workflow based Virtual commercial Card solution in partnership with Indusind Bank and Visa."..

Source : CNBC

Correct Answer :   AU Small Finance Bank

AU Small Finance Bank has entered into bancassurance tie-ups with Star Health and Bajaj Allianz.

1. Star Health and Allied Insurance Company Limited ('Star Health') for Health Insurance solution to Bank's customers.

2. Bajaj Allianz Life Insurance Company ('Bajaj Allianz') for Life Insurance solution to Bank's customers.

These tie-ups will enable the Bank's customers to access a wide range of insurance products from Star Health and Bajaj Allianz..

Source : Capital Market

Correct Answer :   HSBC India

Hong Kong and Shanghai Banking Corporation (HSBC) Limited became the first foreign bank in India to launch 'ONDC in a Box', a one-stop-shop proposition for corporates towards seamless enablement on ONDC.

Aim :  To foster an inclusive, competitive, and open network, amplifying its impact across the business spectrum.

* The ONDC is an initiative to build an open, interoperable network on which buyers and sellers can transact without needing to be present on the same platform.

Source : HSBC

Correct Answer :   Mastercard

Mastercard announced its collaboration with KredX, a supply chain finance platform, to make B2B digital payments rewarding for both enterprises and vendors. As part of the collaboration, Mastercard will integrate its commercial card service with the KredX platform, eliminating the complexities associated with B2B payments, especially those made via cards.

Equipped with features like dynamic discounting, early payment and price discovery, the platform will enable enterprises and vendors to improve their cash flows.

Powered by Artificial Intelligence, it will act as a complete procure-to-pay offering for businesses, helping them with faster and more efficient matching and processing of invoices. Further, the Smart Bid algorithm will help enterprises discover the best discount rates from vendors.

“B2B payments are ridden with complexities of diverse invoicing, payment terms, currency variations, and reconciliation procedures. Combining KredX’s proprietary technology with Mastercard’s expertise in commercial payment solutions will create a pioneering B2B payments solution accessible to all businesses, supporting them with better cash flows and access to working capital.

This collaboration reiterates Mastercard’s commitment to further digital payments acceptance by providing unique and innovative solutions to businesses,” said Mukul Sukhani, Senior Vice President, Business Development, South Asia, Mastercard.

The platform will also address some of the other challenges associated with B2B payments, such as long accounting and reconciliation processes, low vendor acceptance, and frequent chargeback. Further, it will be instrumental in promoting digital payments acceptance by allowing small vendors to receive payments even in the absence of in-house payment gateways and PoS machines.

“We are delighted to collaborate with Mastercard to provide a complete B2B payments solution for businesses. By integrating pre-discounting journeys with post-discounting payments, this platform will enhance companies’ operational efficiency and strengthen their supply chain management capabilities. Accelerating supply chain velocity through financial innovation has been central to KredX’s value proposition,” said Manish Kumar, CEO & Founder, KredX..

Source : CRN

Correct Answer :   SBI

SBI Card, the country’s largest pure-play credit card issuer, has unveiled new features of its super premium card ‘AURUM’, targeted at C-suite executives and high net-worth individuals.

This by-invitation only card — which was launched in February 2021 – now extends enhanced benefits to its users, ranging from introduction of new annual spends-based milestone and welcome benefits to additional international lounge benefits and golf privileges.

The introductions add to the bevy of thoughtfully curated benefits offered by AURUM.

With these enhancements, AURUM cardholders will now be able to derive benefits of up to worth ₹2 lakh annually, basis their spends.

Abhijit Chakravorty, MD & CEO, SBI Card, said : “AURUM has been tailored to meet the discerning taste and lifestyle of the globetrotting and high-flying executives who pursue excellence in every aspect of their life.

Super premium segment :

* It has become one of the most coveted cards in the super premium segment. Looking at the admiration it has gathered so far, we decided to take the cardholders’ experience a notch higher. All in all, AURUM cardholders can expect a more rewarding, richer, and more luxurious experience.”

* AURUM offers unlimited international lounge access to the cardholders, in addition to four international lounge visits for accompanying guests are also enabled now.


Special benefits :

* AURUM offers a sumptuous travel experience along with many special benefits. For instance, the card now offers 1-year Club Mariott membership as a welcome gift.

* Through this membership, AURUM cardholders can avail discount benefits up to 25 per cent in stay, food and beverages, and spa in over 250 hotels under the Mariott group across Asia Pacific.

* The joining and annual membership fee for AURUM is ₹9,999. This fee is reversed on achieving the spends milestone of ₹12 lakh during a card membership year..

Source : The Hindu Businessline