Banking - General Knowledge Questions

Correct Answer :   Mastercard

Mastercard on Thursday (20th April 2023) announced its collaboration with M1xchange to offer a digital invoice discounting solution to farmers, farmer producer organisations (FPOs), and agri-MSMEs through Farm Pass, its agritech platform.

* Along with enabling access to credit and working capital, the solution will allow farmers and FPOs to directly connect with buyers and negotiate prices for their produce. Farm Pass is part of Mastercard’s broader Community Pass platform.

* As part of the collaboration, M1xchange, an RBI-approved facilitator for discounting and sale of receivables to banks and non-banking financial companies (NBFCs), will bring on board its network of agri-businesses and lenders.

* Sundeep Mohindru, CEO, M1xchange, said in a statement, “The network of financiers on M1xchange TReDS will enhance liquidity flow for buyers and sellers on the Farm Pass platform. TReDS offers a unique proposition that discounts invoices raised by FPOs for their end customers based on their credit profile.

* This makes FPO business scalable as their dependence on credit for working capital financing is removed through invoice discounting. All FPOs registered on Farm Pass will get access to a network of more than 55 banks and NBFCs via M1xchange.”

* Owing to the delays and follow-ups involved in directly engaging with buyers, famers and agri- MSMEs often sell their products to middlemen to avail instant payments. The FPOs also struggle with access to working capital, which prevents them from procuring effectively from farmers.

* By enabling credit via invoice discounting, the Mastercard-M1xchange solution aims to equip these FPOs with working capital to purchase goods from farmers and sell them to buyers at the best price with instant payment. This will help start a self-sustaining cycle for the FPOs, resulting in self-sufficiency over the medium to long term..

Source : India Times

Correct Answer :   Federal Bank

Federal Bank has entered into a Banking Correspondent agreement with Chennai-based KiVi, an agri fintech start-up operated by Agrosperity Tech Solutions, with a view to scaling and expanding its agri lending portfolio in Tamil Nadu.

Federal Bank launched the instant KCC platform in September 2022. Claimed to be the first of its kind in agriculture lending, it offers farmers convenience and turnaround time.

Aim : It aims at providing small-value loans to small and marginal farmers, and is designed to facilitate efficient credit flow to underserved rural populations, a spokesman said here.

Phygital model : 
KiVi employs a phygital model that combines features of the lending technology platform and the last-mile channel to serve farmer households and MSMEs such as input retailers, output aggregators or other village entrepreneurs. It provides a frictionless and secure customer experience through seamless API integrations with bureaus and other service providers, along with user-friendly WhatsApp journeys.

Under the agreement, KiVi will acquire, service and augment Federal Bank’s underwriting capability. Mohan K, Senior Vice-President and Country Head, Agri, Micro and Rural Banking, Federal Bank, said the bank has been a pioneer in agri lending and has now sharpened its focus with technology and a partnership model.

Bank-fintech collaboration :
We have experimented many products suitable for the agri sector and will continue to bring more innovative products that can be scaled to more farmers and agri value chain partners. We found KiVi to be the right partner because of their farmer and agri MSME focus and their tech-driven approach. The founding team’s experience in last mile rural lending gave us a lot of confidence.

Joby CO, Founder and CEO of KiVi, said the start-up is excited to partner with a leading bank with agri- lending focus. This partnership is a significant milestone in our journey to bring affordable, timely and convenient credit to farmers and agri MSMEs. We believe that collaboration between banks and agri fintechs will be crucial for India to achieve its budgeted agriculture credit of ₹20 lakh crore.”

In the initial phase of this partnership, KiVi aims to serve 10,000 farmers in Tamil Nadu,” Joby added...

Source : The Hindu Businessline

Correct Answer :   South Indian Bank

South Indian Bank has introduced SIB SEAFARER and SIB PULSE, two flexible saving accounts, for NRI customers.

SIB SEAFARER :

* Flexibility to maintain a minimum balance of Rs.10,000/- in linked accounts

* No minimum balance is required for the maintenance of the NRI Term Deposit of Rs.2 lakh and above

SIB PULSE :

* Flexibility to maintain a minimum balance of Rs.10,000/- in linked accounts

* NR Term Deposit above Rs.2 Lakh or RD with minimum monthly installment above Rs.20,000/-.

Source : Mint

Correct Answer :   AU Small Finance Bank

AU Small Finance Bank (AU SFB) has integrated with the Bharat Bill Payment System (BBPS) to launch bill payment services through video banking.

Aim : The primary aim of this initiative is to promote digital accessibility and enhance economic capability, leading to greater financial inclusions.

* Ankur Tripathi, CIO, AU Small Finance Bank said, For our bank customers, we have already been catering to over 400+ services through video banking.

* Now, with the introduction of bill payment services on video banking, we aim to offer our customers the comfort of a face-to-face interaction while paying their bills at their convenience. We thank National Payments Corporation of India and other dignitaries for supporting this innovation.

* AU SFB’s video banking service underscores its commitment to providing innovative solutions to its customers. This platform enables customers to pay bills without the need to visit a branch, which is particularly beneficial for those with mobility issues or residing in remote areas and senior citizens.

* With the aid of expert banking representatives, customers can make payments to 20K+ billers across 20+ categories, from their AU account.

* People can make payments likeFASTag, loan repayment, insurance, investments, education fees, municipal taxes, utility payments including gas, electricity, mobile, landline, water, DTH bills, and others through AU SFB’s video banking service..

Source : The Hindu Businessline

Correct Answer :   State Bank of India (SBI)

Chennai Metro Rail Limited (CMRL) on Friday (14th April 2023) launched the National Common Mobility Card or Singara Chennai Card as part of the multimodal and ticket integration plan.

* State Bank of India has collaborated with CMRL for the card.

* It can be used on metro trains and on MTC buses and suburban trains later, and can also be used in other metros.

* The option to link the card to an SBI bank account will be available soon.

* It can be preloaded with cash from 100 to 2,000 with a 1.8% commission charged by SBI..

* CMRL director (systems and operation) Rajesh Chaturvedi said it can also be used to book Ola and Uber cabs in future.

Source : Times of India

Correct Answer :   State Bank of India (SBI)

State Bank of India (SBI) has reintroduced a retail term deposit ‘AMRIT KALASH’, a special scheme of 400 days tenor.

* Earlier, the bank had launched this retail term deposit scheme with a specific duration and it was valid from February 15, 2023, to March 31, 2023.

* The Rate of Interest on this term deposit is 7.10 % w.e.f. April 12th, 2023.

* While Senior Citizens are eligible for a rate of interest of 7.60%.

SBI Amrit Kalash : The reintroduced scheme is valid from April 12, 2023 to June 30, 2023.

Which deposits are eligible for Amrit Kalash : Domestic retail term deposits including NRI Rupee Term Deposits below Rs 2 crore. Applicable for new deposits, renewal deposits, term Deposit and Special term deposit only.

How is interest paid : Interest is paid on term deposits at monthly, quarterly, and semi-annual intervals. The maturity interest on special term deposits, net of TDS, will be added to the customer's account...

Source : India Times

Correct Answer :   Sekhar Rao

Karnataka Bank on Saturday (15th April 2023) said that it has appointed Sekhar Rao as interim Managing Director (MD) and CEO following the completion of the term of the incumbent CEO.

* Mahabaleshwara M S, the incumbent managing director and Chief Executive Officer (MD & CEO) of Karnataka Bank, demitted the office on 14 April 2023, after successful completion of his second term of three years, the bank said in a regulatory filing.

* Rao, Executive Director, assumed charge as an interim MD and CEO with effect from April 15, 2023, in terms of RBI approval dated April 12, 2023.

* He has been appointed for a period of three months or till the appointment of regular MD and CEO whichever is earlie..

Source : Money Control

Correct Answer :   YES Bank

Private sector lender YES Bank has become the first Indian company to have over 50 lakh shareholders, according to the shareholding pattern of the bank on 31st March 2023.

* Tata Power was a far second with 38.5 lakh shareholders, followed by Reliance Industries with 33.6 lakh shareholders, according to the December 2022 shareholding disclosures.

* The bank had 50.6 lakh shareholders as of March 31, 2023, all of whom were public shareholders. This was an increase from 48.1 lakh shareholders as of December 2022, most likely owing to the end of the three-year lock-in period for shareholders that held equity shares of the bank when it underwent the reconstruction scheme in March 2020.

* The end of the lock-in period on March 13 allowed for more shares of the bank to be available for public trade. As such, the number of shareholders of the bank has been steadily increasing since the 17.9 lakh shareholders at the time of implementation of the YES Bank reconstruction scheme.

* Since then, the total number of shares held has also more than doubled from 1,255 crore to 2,875 crore..

Source : H B

Correct Answer :   HDFC Bank

HDFC Bank on Wednesday (12th April 2023) announced that it has signed a "Master Inter Bank Credit Agreement" with Export Import Bank of Korea for a USD 300 million line of credit.

* The pact was signed by the two entities at GIFT City in Gujarat's capital Gandhinagar on Wednesday (12th April 2023), said a release by the HDFC Bank.

* This agreement will help HDFC Bank raise foreign currency funds which it would extend to Korea-related businesses, said the release.

* This line of credit would be utilised by HDFC Bank towards funding requirements of companies having equity participation by Korean companies as well as companies having business relationship with Korean companies.

* It will also be utilised towards funding requirements of consumers for the purchase of cars manufactured by Korea related companies, said the release.

* The pact is likely to promote and increase the HDFC Bank's business with Korean entities and products. The first drawdown under the programme would happen by May, said the release.

* The signing ceremony was attended by the Export Import Bank of Korea's team led by Choun-Jae Lee, Director General, Head of Interbank Finance Department. HDFC Bank was represented by Arup Rakshit and Anand Iyer, Head, GIFT City IBU, among others.

* The Export-Import Bank of Korea (Korea Eximbank) is an official export credit agency of South Korea having a balance sheet size of close to USD 100 billion, which provides export-import and overseas investment credit to support Korean enterprises conducting business overseas...

Source : Economic Times

Correct Answer :   Karnataka Bank

Private sector lender Karnataka Bank has been authorised to collect direct and indirect taxes on behalf of the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC), the bank said in a regulatory filing on Wednesday (12th April 2023).

* This authorisation is provided by the Reserve Bank of India.

* The RBI gave this authorisation on the recommendation from the Controller General of Accounts (CGA), Ministry of Finance, the filing said.

* The statement further said that customers are already enjoying seamless online payments for custom duty by selecting Karnataka Bank in the Indian Customs Electronic Gateway 'ICEGATE' portal of CBIC.

* According to the filing, the (ICEGA TE) portal of CBIC provides e-filing services to the trade, cargo carriers and other trading partners electronically..

Source : Economic Times