Correct Answer : Option (B) - RBI

The Reserve Bank of India (RBI) has joined forces with the Global Financial Innovation Network (GFIN) to participate in the Greenwashing TechSprint.

The event aims to address concerns surrounding exaggerated, misleading, or unsubstantiated claims related to environmental, social, and governance (ESG) credentials. The TechSprint will bring together 13 international regulators, firms, and innovators to develop a tool that could help regulators and the market more effectively tackle the risks of greenwashing in financial services.

RBI’s participation in the TechSprint : The RBI will be among the 13 international regulators taking part in GFIN’s Greenwashing TechSprint. The central bank has invited Indian firms to participate in the event and has opened the application window for all India-based firms and innovators to apply. The window will close on May 21, 2023. RBI will participate in a virtual TechSprint hosted on the Financial Conduct Authority’s (FCA) Digital Sandbox.

Objective of the TechSprint : The objective of the Greenwashing TechSprint is to develop a tool that can help regulators and the market more effectively tackle or mitigate the risks of greenwashing in financial services. Firms will get the opportunity to work with regulatory experts, a variety of stakeholders, and professionals from across the globe to develop the tool. The TechSprint will launch on June 5, 2023, and will run for three months, ending with a showcase day in September 2023.

Support for firms interested in participating : The GFIN will provide an information pack for firms interested in participating in the event to support the application process. Firms that are successful in their applications will proceed through to on-boarding, which will take place on June 1 and 2. This will provide firms with training on the Digital Sandbox and an in-depth overview of the TechSprint process.

Addressing concerns of greenwashing : The TechSprint aims to address concerns surrounding greenwashing, which is the practice of making exaggerated, misleading, or unsubstantiated claims about the environmental benefits of a product, service, or investment opportunity. Greenwashing can mislead investors and consumers and harm the overall goal of promoting sustainable finance. The development of a tool to tackle greenwashing risks in financial services is, therefore, an important step towards promoting transparency and credibility in ESG investing...

Source : Economic Times

Correct Answer : Option (C) - YES Bank

Goldi Solar, India’s most quality-conscious solar brand, has partnered with YES BANK to finance solar projects for its Micro, Small and Medium Enterprises (MSME) customers, through YES BANK’s YES KIRAN programme.

* Under this programme, the Bank will offer financial assistance to MSME manufacturers, who wish to install solar panels at their premises.

* The platform will process all the loan applications for solar projects sourced from across the country for installation by business entities such as commercial institutions, industries, resorts, hotels, manufacturing units, and warehouses that can utilize this secured financing instrument to switch to solar power.

* Also, consumers can receive technical assistance at their doorstep and get loan approvals faster.

* Speaking on the partnership, Capt. Ishver Dholakiya, Founder & Managing Director of Goldi Solar, said, “Over the past few years, we’ve seen a significant behaviour shift in the Indian MSMEs towards green energy solutions. We anticipate that more small businesses will adopt solar power, increasing their competitiveness in domestic and international markets and contributing to India’s energy security and the decarbonization of power. With our partnership with Yes Bank, we’re excited to offer a financing solution to help MSMEs save on electricity costs and improve access to green energy.”..

Source : Solar Quarter

Correct Answer : Option (D) - HSBC Bank

* The Reserve Bank of India on Monday (8th May 2023) said it has imposed a penalty of Rs 1.73 crore on HSBC for non-compliance with norms.
    
* This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the Reserve Bank of India (RBI) said in a statement.
    
* The Statutory Inspection for Supervisory Evaluation (lSE) of the bank was conducted by the RBI with reference to its financial position as of March 31, 2021, and the examination of the risk assessment report and all related correspondences pertaining to the same revealed, it noted..

Source : Outlookindia

Correct Answer : Option (B) - RuPay

AU Small Finance Bank has partnered RuPay to roll out the Business Cashback Rupay credit card, an innovative solution tailored to meet the financial requirements of self-employed customers.

* This latest offering is aimed at providing a diverse range of benefits to small businesses.

* The credit card was launched in the presence of Dilip Asbe, CEO of National Payments Corporation of India (NPCI) and Sanjay Agarwal, MD & CEO of AU Small Finance Bank.

* AU Small Finance Bank’s Business Cashback RuPay Credit Card simplifies financial operations for businesses with benefits like upto 2 per cent cashback, 48 days interest-free credit, and instant loans. .

Source : The Hindu Businessline

Correct Answer : Option (A) - HDFC Bank

HDFC Bank on Thursday (4th May 2023) launched its retail banking programme ‘Vishesh’ for customers in semi-urban and rural geographies wherein it plans to onboard around 1 lakh new customers.

* As a part of this, the bank plans to add more branches and launch customised, tailor-made products and financial solutions for this market segment.

* HDFC Bank will look to add 675 branches in semi urban and rural geographies in FY24 to take the total number to nearly 5,000. As of March 31, 52 per cent of the bank’s 7,821 branches are in rural and semi urban locations.

* “This is not a product platform. What we are looking at is 4-5 important segments — farmers, merchants, micro enterprises, government salaried people. We have to understand their different needs,” said Arvind Vohra, Group Head-Retail Branch Banking.

* Given the limited reach of HDFC in tier-II and tier-III towns, Vohra also expects the merger of parent HDFC to unlock more opportunities in this market segment owing to the wide branch network that the bank now has which makes it easier to cater to customers.

* HDFC Bank already has a ‘Classic’ programme for HNI or top layer of customers where it has customer base of 9 lakh, of which 3 lakh are in semi urban and rural locations. These customers are now being hived off under the ‘Vishesh’ programme to increase focus on and grow this market segment, the bank said..

Source : The Hindu Businessline

Correct Answer : Option (C) - HDFC Bank Smart Saathi

HDFC Bank has introduced (1st May 2023) digital distribution platform HDFC Bank Smart Saathi to connect business correspondents (BCs) and business facilitators (BFs) to the bank.

* This launch marks a significant milestone in HDFC Bank’s mission to provide innovative solutions that cater to the evolving needs of its customers.

* This network of business correspondents and business facilitators will boost financial inclusion by taking banking products and services to the last mile.

* HDFC Bank Smart Saathi was launched in Delhi by Vivek Joshi, secretary, Department of Financial Services, and Smita Bhagat, group head, government and institutional business, alternate banking channels and partnerships, inclusive banking group and start-ups, HDFC Bank. Mukesh Bansal, joint secretary, Department of Financial Services, and senior executives Dinesh Luthra and Ajay Sharma from HDFC Bank were also present, the lender said.

* “HDFC Bank Smart Saathi will contribute by making banking products and services available, especially credit for rural customers, which will help in the development of our country. However, there are still behavioural changes that are required across some customer segments like farmers transacting at mandis, to make cashless India a bigger success," said Joshi.

* Bhagat said that over the next 12-18 months the bank plans to reach two lakh villages through a combination of branches and agent network..

Source : Mint

Correct Answer : Option (B) - Airtel Payments Bank

Airtel Payments Bank collaborated with the National Payments Corporation of India (NPCI) to roll out Face Authentication for AePS (Aadhaar-enabled Payment System) at its 500,000 banking points.

* Airtel Payments Bank is amongst the first four banks to offer Face Authentication for AePS in the country.

* NPCI’s AePS allows customers to carry out financial and non-financial transactions at any banking point using their Aadhaar number or virtual ID to access their Aadhaar-linked bank account.

* Until now, transactions were being authenticated using the customer’s Aadhaar number and fingerprint or Iris match in the UIDAI records. The new facility will enable customers to validate the transaction by undertaking face authentication along with the Aadhaar number. The authentication is processed using the Face Authentication RD Application by the Unique Identification Authority of India (UIDAI).


Face Authentication for Aadhaar-enabled Payment System :

* In the first phase, the facility is made available for non-financial transactions – Balance enquiry and mini-statements - for the Bank’s customers.

* Soon the Bank will make it available for financial transactions. As per the guidance from NPCI, Airtel Payments Bank will enable the functionality for other bank customers and the Bank’s customers at other banking outlets.


Here is how Airtel Payments Bank customers can avail Aadhaar-enabled Payment System :

* Banking Correspondent (BC) enters the customer details i.e. Aadhaar number in the business App.

* BC will ask the customer to confirm the type of Authentication - Fingerprint or Face authentication.

* Post receiving consent from the customer, BC will choose the Face Authentication option and click on Proceed.

* The Face Authentication RD App will open to capture the live Image of the customer.

* Once the face of the customer is captured successfully, BC will be asked to enter his mPIN and complete the transaction...

Source : Mint

Correct Answer : Option (D) - Mumbai

The State Bank of India (SBI), the country's largest lender, has opened an exclusive branch for startups at the Bandra Kurla Complex in Mumbai.

This is the fourth startup-focused branch and the first in Mumbai after Bengaluru, Chennai and Gurugram.

In Mumbai, the bank has entered into multiple memoranda of understanding with the Society for Innovation & Entrepreneurship (SINE) at IIT-Bombay, Centre for Incubation and Business Acceleration (CIBA), and S.P Jain Institute of Management & Research (SPJIMR).

The MoUs are aimed at providing a boost to the startup ecosystem in the region. "The primary aim of this branch is to provide end-to-end support to startups at every stage of their journey, starting from the formation of the entity to their IPOs and FPOs," said SBI chairman Dinesh Khara...

Source : Times of India

Correct Answer : Option (A) - Adoor Co-operative Urban Bank

The Reserve Bank of India (RBI) has said that it has cancelled the banking licence of Kerala-based Adoor Co-operative Urban Bank and has allowed it to function as a non-banking institution.

* The cancellation of licence is with effect from the close of business on April 24, 2023, according to a notification issued by the RBI.

* The central bank said that it has cancelled the banking licence dated January 3, 1987, granted to The Adoor Co-operative Urban Bank Ltd, Adoor, Kerala to carry on banking business in India under Section 22 read with Section 56 of the Banking Regulation Act, 1949, with effect from the close of business on April 24, 2023.

* “This makes it obligatory on the part of The Adoor Co-operative Urban Bank Ltd, Adoor, to stop conducting the business of ‘banking’ within the meaning of section 5(b) of the Act ibid, including acceptance of deposits from non-members with immediate effect,” the RBI added.

* According to RBI, the difference between a bank and NBFC is that a bank is a government-authorised entity that provides banking services to the people, whereas NBFC is a company providing banking services to the people without holding a bank licence.

* On Monday (24th April 2023), RBI said it has imposed penalties on four cooperative banks — Bombay Mercantile Co-operative Bank, Tamil Nadu State Apex Co-operative Bank,  Janata Sahakari Bank and Baran Nagrik Sahkari Bank — for contravention of various norms..

Source : Business Today

Correct Answer : Option (B) - Rs 44 lakh

The Reserve Bank has imposed penalties totalling Rs 44 lakh on four cooperative banks, including a Rs 16 lakh penalty on Chennai-based The Tamil Nadu State Apex Co-operative Bank, for contravention of various norms.

* A penalty of Rs 13 lakh has been imposed on Bombay Mercantile Co-operative Bank as it failed to transfer eligible amount to Depositor Education and Awareness Fund (DEAF) within the prescribed period and transferred the same with delay, RBI said in a release on Monday (24th April 2023).

* In a separate release, the central bank said a penalty of Rs 13 crore has been imposed on Janata Sahakari Bank, Pune for non-compliance with directions on 'Interest Rate on Deposits'.

* Penalty has been imposed on The Tamil Nadu State Apex Co-operative Bank as it failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. It also failed to report a fraud to NABARD within the prescribed timeline and reported the same with delay.

* A monetary penalty of Rs 2 lakh has been imposed on Baran Nagrik Sahkari Bank, Baran, Rajasthan for contravention of certain norms.

* The penalties are based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers...

Source : India Times