Banking - General Knowledge Questions

Correct Answer :   SBI

The State Bank of India announced in a release on Monday (4th September 2023), “This feature, accessible through the 'eRupee by SBI' application, will empower SBI CBDC users to scan any merchant UPI QR code for transactions,” the bank said in the release.”

Reserve Bank of India’s (RBI’s) Central Bank Digital Currency (CBDC) pilot project, multiple Indian banks have announced the introduction of Unified Payments Interface (UPI) interoperability feature on the Digital Rupee application. This means, Digital Rupee app users can scan any QR code to make payments for groceries and daily expenses.


The CBDC push :

State Bank of India (SBI), Kotak Mahindra Bank, Yes Bank, Axis Bank. HDFC Bank, Canara Bank, among others are live with the inclusion of UPI interoperability.

The State Bank of India announced in a release on Monday, “This feature, accessible through the 'eRupee by SBI' application, will empower SBI CBDC users to scan any merchant UPI QR code for transactions,” the bank said in the release.”

Will this improve CBDC adoption?

This development is said to increase the adoption of RBI’s CBDC, as it would now be able to depend on the distribution systems built by the leading Indian banks.

“Bank feels that this integration will be a game changer for the digital currency ecosystem. The move is the outcome of our unwavering commitment to pushing the boundaries of digital innovation to accelerate the transition to a more cashless economy. SBI remains dedicated to providing secure, efficient, and user-friendly solutions that reshape conducting transactions,” SBI highlighted in its release.


Will merchants have to install new QR codes?

It is worth noting that as per the announcements made by the Indian banks, merchants would not be required to replace their current QR codes. They would only need to display a single QR code on their storefront or via the banking mobile application which would accept CBDC payments as well. This means, the existing QR code will be interoperable, allowing a simple QR payment acceptance terminal. It will accommodate the Scan & Pay feature through multiple payment options.

Moreover, the eligible banks' digital rupee customers can transact using the funds available in their Digital Rupee (CBDC) wallet by scanning the UPI QR code.


RBI’s CBDC :

The RBI launched the CBDC pilot programme in 2022. The Indian CBDC, which is backed by the RBI, is also known as Digital Rupee. It represents a tokenised digital version of the currency, i.e. Indian Rupee which is issued and regulated by the RBI..

Source : Business Today

Correct Answer :   Union Bank of India

The growth of renewable energy in India, Indian Renewable Energy Development Agency Ltd. (IREDA) has signed Memorandums of Understanding (MoUs) with Union Bank of India (UBI) and Bank of Baroda (BoB), on September 5, 2023.

These agreements will empower IREDA to collaborate with UBI and BoB, in co-lending and loan syndication for a wide range of renewable energy projects, including both established and emerging RE technologies.

Expressing his happiness about these partnerships, CMD of IREDA, Shri Pradip Kumar Das said: "Both Union Bank of India and Bank of Baroda have an extensive nationwide presence with a vast network of branches. This collaboration aims to extend our reach, particularly in tier-2 & tier-3 cities and rural areas, enabling us to provide unique and innovative financial support to existing and new customers. We are confident that by combining our strengths and resources, we will continue to serve our customers in alignment with the vision of the Prime Minister for Atmanirbhar Bharat and sustainable growth."

The MoU with Union Bank of India was formally inked by General Manager (Technical Services), IREDA, Shri Bharat Singh Rajput and General Manager (Large Corporate Vertical), UBI, Shri Dhirendra Jain. The signing ceremony was graced by the presence of Chairman and Managing Director of IREDA, Shri Pradip Kumar Das; Managing Director & CEO of UBI, Ms. A. Manimekhalai and senior officials.

The MoU with Bank of Baroda was executed by General Manager (Technical Services), IREDA, Shri Bharat Singh Rajput and General Manager, BoB, Shri Dhiren Lalai. The signing ceremony witnessed the presence of IREDA CMD and MD & CEO of BoB, Shri Debadatta Chand along with Executive Director Mr. Lalit Tyagi. Other senior officials of BoB, Head-Large Corporate Relationships, Mr. Sumit Sachdeva and Head – Credit, Mr. Manoj Chayani were also present on the occasion.

In recent years, IREDA has been actively encouraging partnerships with various Central and State agencies as well as financial institutions to leverage its techno-financial expertise for the development of the renewable energy sector..

Source : PIB

Correct Answer :   IDFC FIRST Bank

Private banking company IDFC First Bank, on Monday (4th Sep 2023), said that it has integrated Central Bank Digital Currency (CBDC) app with UPI QR codes. The move is aimed at encouraging the use of the digital rupee and make it more accessible.

The new feature simplifies the process for merchants to accept payments made with the digital rupee. This development allows individuals to easily use digital rupees for payments through existing UPI QR codes at various merchant outlets.


Digital rupee adoption :

"Being one of the banks that are a part of RBI's CBDC initiative for retail users, this new feature will simplify payment acceptance for merchants, enabling them to seamlessly accept payments made with digital rupees," IDFC First Bank said in a statement.

"Individuals can effortlessly make payments using digital rupees through existing UPI QR codes at various merchants," it added.

According to IDFC First Bank's Executive Director, Madhivanan Balakrishnan, this UPI interoperability feature is expected to greatly increase the adoption of CBDC throughout the country.

The digital rupee, introduced by the Reserve Bank of India last year, represents a digital form of legal tender issued by the central bank. It possesses essential qualities like physical currency, including trustworthiness, security, and the capability for instant settlement in the digital realm..

Source : Republic World

Correct Answer :   Mastercard

Mastercard has launched (1st Sep 2023) the ALT (Alternate Identification Number) ID solution in India to enhance the security of guest checkout transactions on ecommerce platforms, simplifying payments for merchants and cardholders.

As per the announcement information, ALT ID is a custom-made capability developed by Mastercard to create an alternate identifier for the real card numbers provided by cardholders when at guest checkout transactions on ecommerce platforms. The solution is designed to help increase online payment security for both merchants and consumers.

Mastercard’s ALT ID Solution Capabilities and Launch Context :

Mastercard has previously rolled out a card-on-file tokenization solution for cardholders to be able to complete transactions in a safe manner, without revealing sensitive card details. The Mastercard ALT ID solution is designed for cardholders who carry out transactions without saving their cards, also referred to as guest checkout. It helps create and store an alternative identifier for every card, thereby bettering the security of these types of online payments.

The ALT ID solution is set to provide cardholders with multiple advantages, such as non-storage of card numbers on merchant websites and protection against potential data breaches. When talking about merchants and payment service providers, it is set to enable them to secure the card numbers with minimal development efforts, while simultaneously helping improve the payment experience of their customers.

Commenting on the launch, Anubhav Gupta, Senior Vice President, South Asia, Mastercard said that the ALT ID solution showcases the enterprise's ongoing endeavour to introduce innovative products and solutions that are compliant, user-friendly, and increase the safety and security of digital payments, while helping make them seamless for both merchants and cardholders. By ensuring an increasingly safer shopping experience, the solution is also believed to support the growth of ecommerce in India.

Sheetal Lalwani, Co-founder & COO, Juspay stated that the launch of ALT ID is to support the company’s efforts to secure the digital experiences of cardholders who don’t want to save their cards with merchants, saying that leveraging the Juspay platform, they are ensuring that merchants can transition customers to ALT ID in a simple manner, without any changes at their end.

Mohit Gopal, COO of PayU India added that Mastercard’s ALT ID solution for guest checkout transactions underscores PayU’s foundational commitment to bettering digital payment security, convenience, and accessibility. The spokesperson believes the service will empower cardholders, merchants, and payment service providers with a simplified and fortified approach to online transactions.

Further adding on this, Khilan Haria, SVP and Head of Payments Product, Razorpay said that they’re looking forward to collaborating with Mastercard for its ALT ID solution, stating that the association will benefit merchants through increased payment success rates and no integration effort, while strengthening the company’s commitment to developing a more secure and extensive ecosystem for digital payments...

Source : The Paypers

Correct Answer :   PNB

Punjab National Bank launched the PNB GST Sahay App for MSME borrowers to access loans up to Rs 2 lakh digitally using GST invoices.

Aim : To streamline the lending process for micro, small, and medium-sized businesses.


key features of the PNB GST Sahay App include :

End-to-End Digital Lending Process : The app facilitates a completely digital lending process, reducing the need for manual intervention. This not only saves time but also minimizes errors and inefficiencies in the loan application process.

Cost-Effective and Smooth Process : By eliminating manual steps, the lending process becomes more cost-effective and smoother for both the bank and the borrowers. This efficiency can translate into faster loan approvals and disbursements.

Direct Loan Crediting : Loans approved through the app are directly credited to the borrower's current account maintained with PNB. This ensures a seamless and quick transfer of funds.

Technology-Driven Assessment : The app uses technology to assess market reports, appraisals, and other factors that determine loan eligibility. This reduces bottlenecks and delays in loan processing.

Loan Range and Repayment Options : The app offers loans ranging from Rs 10,000 to Rs 2 lakh per invoice, with a maximum cap of Rs 10 lakh per borrower. Borrowers also have the option of hassle-free one-time repayment and pre-payment.

Integration with GST Profile : The loans are linked to the borrower's GST profile, which can provide the bank with valuable information about the borrower's business operations and financial health.

Focus on MSMEs : The initiative aligns with the Indian government's focus on supporting and promoting micro, small, and medium-sized enterprises (MSMEs), which play a crucial role in the country's economy.

PNB's efforts to digitize the credit journey and provide streamlined access to credit for MSMEs are commendable. This move not only enhances customer experience but also aligns with the broader trend of using technology to improve financial services.

PNB's position as a leading MSME lender, as indicated by the number of collateral-free loans it has disbursed, showcases the bank's commitment to supporting small businesses. Other banks, such as Bank of Maharashtra and Union Bank of India, have also been active in extending collateral-free loans to MSMEs.

Overall, the launch of the PNB GST Sahay App seems like a positive development that can contribute to the growth and development of MSMEs in India by providing them with easier access to credit and financial support..

Source : Caclub India

Correct Answer :   Axis Bank

Axis Bank on Tuesday (29th August 2023) announced the launch of new savings account variant – ‘Infinity Savings Account’ to cater to digitally savvy customers who are frequent adopters of subscription-based models.

This savings account offers Axis Bank’s customers with exclusive privileges, such as waived Average Monthly Balance (AMB) requirement, complimentary debit cards and waiver of all the domestic charges against a small monthly recurring fee of Rs 150 or annual fee of Rs 1,650, the lender said.

The new variant is introduced with the aim to revolutionize the banking experience. The customers can open the account in a completely digital manner through Video KYC process.

The bank offers two subscription-based flexible plans - Monthly and Annual. The monthly plan is charged at Rs 150 (inclusive of GST) and has a minimum subscription period of 6 months.

After the initial 6 months, the plan continues on a 30-day cycle, with Rs 150 deducted every 30 days. The annual plan is charged at Rs 1,650 (inclusive of GST) and offers Infinity benefits for 360 days. The plan is automatically renewed after this period.

With this product, customers will also get additional benefits such as cashback on Axis Bank Grab Deals platform, which has 30+ partners such as Amazon, Flipkart and Myntra among others. Moreover, customers will get 1 percent cashback on all transactions made using the E Debit Card, along with all other Debit card linked benefits, such as Rs 500 Grab Deals voucher on Debit Card usage within 30 days, 15 percent off up to Rs 500 at Easy Diner with Online Rewards Card and much more..

Source : CNBC

Correct Answer :   Yes bank

Yes Bank on Friday (25th Aug 2023) launched co-branded Corporate Credit Card in collaboration with spend management platform Zaggle, to empower businesses to reimagine their payment processes, streamline reconciliation, and efficiently manage company expenditures.

* The new card 'YES BANK Zaggle Corporate Credit Card', provides businesses direct control over company expenditures. This includes the ability to set individual spending limits, apply merchant category restrictions, and implement diverse controls.

* Additionally, cardholders gain access to an array of exclusive benefits, spanning rewards, golf privileges, lounge access, and travel insurance.

* Rajan Pental, Executive Director, Yes Bank said, "The partnership with Zaggle enables businesses to bring in operational efficiencies by allowing them to undertake banking transactions, manage company expenditures as well as keep track of all business-related overheads on a single platform.

* The co-branded card is a compelling proposition that offers upfront savings on business spends, along with the privilege of offering rewards on both spends and repayments on a large list of business expense categories."

* According to the bank statement, the card will empower businesses to bring in greater cost efficiencies by facilitating an integration with Zaggle’s ZatiX, a spend management and analytics platform, thereby allowing corporates to optimise cash outflows.

* "The corporate T&E space is ripe for disruption as businesses increasingly demand real-time analytics to better manage spends, an industry need that we believe remains unmet.

* Zaggle ZatiX, deeply integrated with the YES BANK Zaggle Corporate Credit Card aims to addresses this need, to empowering businesses, and provide CFOs with the certain tools they need for intelligent spend decision making to assist with strategically controlling costs and optimally managing cash flow," said Avinash Godkhindi, MD & CEO of Zaggle..


Source : CNBC

Correct Answer :   Asian Development Bank

India is now all set to open a climate change and health hub in the national capital in partnership with the Asian Development Bank (ADB).

Earlier, India had bagged the first WHO Centre for Global Traditional Medicine.

WHO Centre for Global Traditional Medicine was set up in Jamnagar, Gujrat.

The new hub for climate change and health will facilitate knowledge sharing, promote partnerships and innovations, and also help countries beyond the G-20, especially developing countries.

Asian Development Bank (ADB) :

* ADB (founded in 1966) is an international development finance institution.
* Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people.
* Headquartered in Manila, ADB is owned and financed by its 68 members, of which 49 are from the region and 19 are from other parts of the globe.
* The two largest shareholders of the Asian Development Bank are the United States and Japan.
* ADB is an official United Nations Observer.
* Voting rights in ADB are distributed in proportion with members’ capital subscriptions.

WHO Global Centre for Traditional Medicine (GCTM) :

About :
* GCTM is a knowledge centre for traditional medicine which is being termed as the first and only global outpost centre for traditional medicine across the world. The Centre is located at Jamnagar, Gujarat, India.
* As lead investor in the WHO GCTM, India has committed an estimated US$ 250 million to support the Centre’s establishment, infrastructure and operations.

5 Goals of GCTM :

News Summary: India, ADB to set up climate change and health hub in Delhi

* India is now all set to open a climate change and health hub in New Delhi.
* This centre will be opened in partnership with the ADB.

Significance :

* Climate change affects all and this centre will give an opportunity to have different partners discussing this important issue and learning from each other.
* In its recently released G-20 outcome document, India noted that climate change will continue to drive health emergencies, including the emergence and re-emergence of infectious diseases.

* The outcome document committed to:
* In this context, there is need to identify new drivers and address the existing drivers using a science and risk-based approach, and to strengthen existing infectious disease surveillance systems.
* The new Climate Change and Health Hub in New Delhi will help countries all over the world to address the above-mentioned issues..


Source : The Hindu

Correct Answer :   HDFC Bank

HDFC Bank on Thursday (24th August 2023) partnered with Marriott Bonvoy, the esteemed travel program by Marriott, to launch 'Marriott Bonvoy HDFC Bank Credit Card'.

This pioneering co-branded card will operate on the Diners Club platform, which is a part of the globally recognized Discover Global Network.

The newly launched credit card comes packed with travel benefits, designed to elevate cardholders' travel journeys. Cardholders are entitled to Silver Elite Status with Marriott Bonvoy, ushering in a range of privileges including priority late checkouts, exclusive member rates, and bonus points, among other perks, the lender said in a press statement.

This partnership between HDFC Bank and Marriott Bonvoy signifies a strategic move to cater to the growing trend of post-pandemic "revenge spending" on both domestic and international travel.

Speaking at the HDFC Bank-Marriott credit card launch event, Parag Rao highlighted the efforts spanning over two years that culminated in the creation of this exceptional card. Given the shifting trends in consumer behavior post-pandemic, where travel aspirations are soaring, HDFC Bank seeks to tap into this market enthusiasm.

The bank currently boasts a substantial base of 18 million credit card users and considers the Marriott Bonvoy card a pivotal addition to its premium offerings.

Marriott said this is not an exclusive partnership and they can do more cards with HDFC bank or with other partners.

A look at key features of the card :

The Marriott Bonvoy HDFC Bank Credit Card comes with an array of annual benefits. As a gesture of welcome, new card members and those renewing their cards will receive a free night award, valued at up to 15,000 points. This award can be redeemed at Marriott Bonvoy's participating hotels globally, for a span of one year. Additionally, cardholders have the option to enhance the value of this award by utilizing up to 15,000 Marriott Bonvoy Points, the lender said.

The card will also provide Silver Elite Status accompanied by the privilege of receiving ten elite night credits annually. The rewards structure of the card is also designed to cater to diverse spending patterns.

Cardholders can earn 8 Marriott Bonvoy points for every Rs 150 spent on eligible purchases at participating Marriott Bonvoy hotels (excluding Homes and Villas), for monthly expenditures of up to Rs 10 Lakh. Furthermore, 4 Marriott Bonvoy points can be earned per Rs 150 spent on eligible travel, dining, and entertainment transactions, for up to Rs 5 lakh per month.

Card members who already earn 8 Marriott Bonvoy Points per Rs 150 for spending at participating Marriott Bonvoy and Marriott-branded properties will not accrue an additional 4 Marriott Bonvoy Points under this earning category...

Source : CNBC

Correct Answer :   Yes Bank

Private lender YES Bank on Thursday (August 17, 2023) introduced its state-of-the-art mobile banking app 'iris' by YES Bank.

Designed to cater to both existing and new customers, the app offers access over 100 features and services in just a few clicks on a single platform, the bank said in a regulatory filing.

The iris app has a sleek and intuitive user interface that aims to offer a simplified banking experience for users of all age groups, and backgrounds.

Key features of iris mobile app :

Savings account : Users can open a savings account effortlessly in real-time through the app.

Credit cards : Users can apply for a YES Bank  credit card and choose from the wide range of card options offered by the bank.

Loan in seconds : Access to YES Bank's bouquet of lending products with quick approvals on the app itself.

Deposits : Recurring and fixed deposits can be booked through the app on the go.

Easy payments : Multiple digital modes can be availed for making seamless and hassle-free payments on the app.

Investments : Access to a wide range of investment options that can be customised based on individual risk appetite and financial goals.

Insurance : Users can choose from a range of insurance services integrated into the iris by the YES Bank app.

Prashant Kumar, Managing Director and CEO of YES Bank, said, "iris by YES Bank is yet another step in the same direction which aims to transform the way customers avail banking-related services. It is pertinent to note, that the app has been developed in-house based on feedback from our customers, which makes it a unique proposition in terms of features, user experience, and benefits."

The app is available on both Google Play Store and App Store and can be seamlessly downloaded on Android as well as iOS-based smartphones.