Freo, one of India’s leading consumer neobank, on Tuesday(21st June 2022) launched its digital savings account "Freo Save", in partnership with Equitas Small Finance Bank. With this launch, Freo becomes the first consumer Neobank in the country to provide full-stack neobanking products comprising a smart savings account, credit and payments products, cards, wealth-growth products, and more, slated for the future.

 

According to the RBI, almost 60 per cent of Indians still use public-sector banks. Also, in a survey conducted in 1000 cities where Freo is present, respondents said they wanted a digital savings account that offers them a wide variety of products and features including easier access to credit, higher interest, and better ways to grow their money all accessible digitally at the touch of a button. 

 

The above is why Freo Save offers quick access to credit & shopping, & through its partnership with Equitas Small Finance Bank provides up to 7 per cent interest on customers' savings for balances above Rs 5 Lakhs up to Rs 2 crore, all within an easy-to-use app. To underscore accessibility, Freo Save is also the only digital savings neobank app that will be available in multiple Indian languages including English, Hindi, Tamil, & more..

Source : Businessworld

World Bank approved Project to boost rain-fed agriculture in Uttarakhand – The World Bank has given its approval for a project worth ₹1,000 crores for taking rain-fed farming to new heights in the hilly regions of Uttarakhand.

 

The name of this project is Uttarakhand Climate Responsive Rain-fed Farming Project and will be implemented by the watershed department.

 

* Uttarakhand Climate Responsive Rain-fed Farming Project aims to reduce greenhouse gas emissions with funding from the World Bank.

* The project will also help in springshed management, boosting agricultural productivity, controlling migration and promoting cluster-based agriculture.

It will also help in increasing climate-friendly activities.

Source : The Hindu

South Indian Bank has launched(22nd June 2022) a new portal called ‘SIB TF Online’ for its corporate EXIM customers. The portal facilitates a platform for trade-related payments to foreign entities remotely. The customer can initiate the payment request over SIB TF Online after uploading the relevant supporting documents for the transaction.

 

* SIB TF Online is yet another accomplishment by the bank to make its operations more tech-driven. It comes close on the heels of launching the internet banking facility targeting retail savings and NRE SB customers to initiate foreign remittances without visiting the branch.

* The bank plans to launch SIB TF Online in phases, with the initial version allowing three types of import remittances such as advance remittance for Imports, remittance against import bill received from overseas bank for collection (Bank-to-Bank Foreign Inward Collection Bill) and payment against Import documents received by the importer directly from overseas suppliers.

Source : The Hindu Businessline

Karnataka Bank has launched online savings bank (SB) account opening facility through ‘Video-based Customer Identification Process (V-CIP)’.

 

The facility enabled in the corporate website of the bank, empowers prospective customers to open an SB account through online process and complete KYC (know your customer) verification through a video call at their place of convenience.

 

The end-to-end paperless digital process leverages the bank’s API (Application Programming Interface) that auto fills the account opening form, validates PAN/Aadhaar number instantly and completes the KYC process through a video call..

Source : The Hindu Businessline

Shanghai-headquartered New Development Bank (NDB) of the BRICS countries has appointed former bureaucrat Dr D J Pandian as the Director-General of its India Regional Office in Gujarat International Finance Tec-City (GIFT City), the bank announced on Tuesday(21st June 2022).

 

Last month, the NDB had announced plans to set up IRO in the Gift city.

 

The NDB has approved 20 projects in India for about USD 7.2. billion. The IRO will support the effective and efficient implementation of these projects and work closely with Project Implementation Agencies on achieving desired project outcomes. IRO will also play an important role in preparing new projects and assisting government institutions in capacity building and in providing technical assistance, the bank quoted Pandian as saying in a press release.

 

The establishment of the IRO is an important milestone for NDB as it marks the fulfilment of a commitment made by the founders of the bank in setting up regional offices, beyond headquarters, in each of the other four founding countries -- South Africa, Brazil, Russia and India (BRICS), he said.

 

Pandian earlier served as the Vice President and Chief Investment Officer of the Beijing-based Asia Infrastructure Investment Bank (AIIB) in which India is the 2nd largest shareholder after China.

 

He was succeeded by former RBI Governor Urjit Patel in January. During his tenure at the AIIB, he was instrumental in securing USD 6.7 billion in funding for 28 projects in India, stated to be the highest project finance extended by the bank..

Source : Business Today

The Reserve Bank of India (RBI) has cancelled the licence of Millath Co-operative Bank Ltd as “the bank does not have adequate capital and earning prospects", among other reasons. The bank has ceased to carry on banking business, with effect from the close of business on Saturday (June 18, 2022). The Registrar of Cooperative Societies, Karnataka, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

 

“The Reserve Bank of India (RBI) has, vide order dated June 17, 2022, cancelled the license of ‘Millath Co-operative Bank Ltd., Davangere, Karnataka’. Consequently, the bank ceases to carry on banking business, with effect from the close of business on June 18, 2022. The Registrar of Cooperative Societies, Karnataka has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank," the central bank said in a statement dated June 18.

 

The RBI said it has cancelled the license as :

a) the bank does not have adequate capital and earning prospects;

b) the bank has failed to comply with the requirements of Sections 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949;

c) the continuance of the bank is prejudicial to the interests of its depositors;

d) the bank with its present financial position would be unable to pay its present depositors in full;

e) and public interest would be adversely affected if the bank is allowed to carry on its banking business any further..

Source : News18

Singaporean lender DBS Bank's local unit on Monday(20th June 2022) said it has acquired a 9.9 per cent stake in the micro businesses-focused non-bank finance company Svakarma Finance for an undisclosed sum.

 

DBS Bank India said the stake buy in Svakarma will help in delivering relevant financial solutions to the micro-enterprises through a combination of direct lending and co-lending.

 

Earlier, DBS Bank had taken over domestic private sector lender Lakhsmi Vilas Bank (LVB) in 2020 at the request of the Reserve Bank to add heft to its network. LVB was grappling with a high quantum of non-performing assets (NPAs) and was unable to bolster its capital buffers as multiple attempts fell through.

 

Taking over LVB helped DBS Bank India add over 550 branches and 900 automated teller machines (ATMs) to its relatively small presence in the country. DBS continues to be among the small set of global lenders, who have signed up to operate as a wholly-owned subsidiary as desired by the local authorities.

 

A DBS Bank India statement said its strategy envisages significant growth in SME and consumer businesses..

Source : Business Standard

Fitch Ratings on Wednesday(15th June 2022) upgraded nine(9) Indian Banks , including SBI, ICICI Bank, and Axis Bank, from negative to stable. Bank of Baroda (BOB), Bank of Baroda (New Zealand) Ltd, Bank of India, Canara Bank, Punjab National Bank (PNB), and Union Bank of India are among the other institutions to get a upgrade. Fitch Ratings has upgraded 9 India-based banks’ Long-Term Issuer Default Ratings (IDRs) to Stable from Negative, while upholding their IDRs.

 

 

* The IDRs are based on Fitch’s evaluation of the sovereign’s ability and tendency to offer extraordinary support for these institutions, which takes into account Fitch’s assessment of the sovereign’s ability and inclination.

 

* It takes into account the government’s track record of backing systemically important banks, the lenders’ relative systemic importance, and their various ownership structures.

 

* Fitch also changed the outlook on the Export-Import Bank of India’s (EXIM) Long-Term IDR from negative to stable.

 

* These steps come after Fitch changed the outlook on India’s ‘BBB-‘ rating from negative to stable last week, citing reduced downside risks to the country’s medium-term growth, as evidenced by its rapid economic recovery and lessening financial sector problems.

 

* India’s GDP is expected to expand 7.8% in FY23, according to Fitch, compared to a median prediction of 3.4 percent for nations rated BBB..

Source : India Times

* Equitas Small Finance Bank has announced to launch an exclusive savings account for kids named ‘ENJOI’.

* Aim : Encourage the young kids to develop the saving habit early.

* The account will be launched on June 19 to coincide with Father’s Day.

* The ENJOI allow kids of 0-18 years to open savings accounts under the supervision of their parents.

* The bank offers 7% interest for savings balances between ₹5 lakh to ₹2 crore. ..

Source : The Hindu Businessline

* Foreign lender HSBC India on Monday(13th June 2022) announced that it will lend USD 250 million to startups in the country.

 

* The bank did not specify the timeframe for disbursal of the amount

 

* The lending will be done to high-growth, tech-led startups in the third largest startup ecosystem in the world, the lender said in a statement.

 

* The lending, which comes amid increased focus on startups' debt needs by financial intermediaries locally and a 'funding winter' impacting equity funding to the sector, will be managed by the lender's commercial banking vertical.

 

* The commercial banking vertical in India had witnessed a 42 per cent jump in its profit for 2021 at USD 265 million as against USD 187 million in the year ago period.

 

* Loans to small and medium enterprises tripled to USD 1 billion in 2021 as against USD 300 million in 2018, the bank said..

Source : Business Standard