Banking - General Knowledge Questions

The oldest commercial bank in the country, State Bank of India, is celebrating its 67th year on 1st July. SBI descends from the Bank of Calcutta founded in 1806 through the Imperial Bank of India. The Bank of Madras merged into the other two presidency banks, the bank of Calcutta and the bank of Bombay to form the Imperial Bank of India which in turn became the SBI in 1955.

 

* In the 19th century, three presidency banks were incorporated. The three presidency banks were the Bank of Madras (established on 2nd June 1806), the Bank of Bombay (incorporated on 15 April 1840), and the Bank of Madras (incorporated on 1 July 1843).

* These three presidency banks were joint-stock companies. These presidency banks were consolidated on 27 January 1921 and the new entity was named Imperial Bank of India. Even after the consolidation, it remained as the joint-stock company but without government participation.

* RBI in 1955 acquired a controlling interest in the Imperial Bank of India. On 1st July 1955, the imperial bank of India became the State Bank of India. To avoid any conflict of interest since RBI is the country’s banking regulatory authority, the government of India in 2008 then acquired the Reserve Bank of India’s stake in SBI.

ICICI Securities (I-Sec) on Wednesday(29th June 2022) announced the launch of "ICICIdirect iLearn", a learning app for customers to easily access content curated around several financial products and stock market topics. 

 

“This will equip customers with the robust knowledge required to better assist them in their investment journey," I-Sec said in its statement.

 

There has been a massive spike in the participation of small investors in the stock market in the last few months. As per data from BSE, the total number of investors as on June, 2022 stood at around 109 million, a 51% increase Y-o-Y. Out of the overall customer base of I-Sec, millennials and Gen Z formed more than 80% of its active customer base in the past three years. Additionally, 85% of customers acquired by I-Sec in Q4-FY22 were from tier II & III cities, as per data from I-Sec.

 

'ICICIdirect iLearn' aims to familiarise investors with the knowledge on financial or investment tools by including both, standard and contemporary content, catering to the requirement of beginners as well as evolved investors," I-Sec said..

Source : Mint

The World Bank Board of Executive Directors 28th June 2022 approved two complementary loans of $500 million each to support and enhance India’s health sector. 

 

Through this combined financing of $1 billion, the Bank will support India’s flagship Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), launched in October 2021, to improve the public healthcare infrastructure across the country. 

 

In addition to the national level interventions, one of the loans will prioritize seven states including Andhra Pradesh, Kerala, Meghalaya, Odisha, Punjab, Tamil Nadu, and Uttar Pradesh..

Source : World Bank

Airtel Payments Bank on Wednesday(29th June 2022) said it has partnered with Axis Bank to "digitise the cash collection system" in small cities and semi-urban regions.

 

Airtel Payments Bank would leverage the wide reach of its digital-led neighbourhood banking model to support Axis Bank with the digitisation of last-mile cash collections, according to a statement.

 

"Airtel Payments Bank partners with Axis Bank to digitise last mile cash collection," the statement said..

Source : Outlook India

ICICI Bank 23rd June 2022 announced the launch of a digital platform to address the needs of the students aspiring to pursue higher education in India and abroad. Called ‘Campus Power’, the one-stop platform is designed to assist entire student ecosystem comprising students, parents and institutes.

It offers both banking and value-added solutions at one place, eliminating the need for the student ecosystem to contact with multiple stakeholders. It is also available for customers of other banks.

 

The private lender mentioned that ‘Campus Power’ assists users to explore financial products matching their needs ranging from bank accounts including overseas accounts, education loan and its tax benefit, foreign exchange solutions, payment solutions, cards, other loans and investments.

The platform also provides information regarding a host of value-added services related to higher studies in India and foreign countries including Canada, UK, Germany, USA and Australia.

 

Sudipta Roy, Head – Unsecured Asset, ICICI Bank said, “We at ICICI Bank, believe in customer centricity and constantly try to enhance our offerings with the evolving market expectations. We have observed the education lifecycle in depth to understand diverse needs of students in various stages of their life. We have found out from our research that students, their parents and institutions grapple with the challenge of interacting with multiple stakeholders to resolve issues related to their higher studies. This assumes importance with increasing number of students opting for higher studies in India and abroad.".

Source : Business Today

AU Small Finance Bank has launched(23rd June 2022) an innovative Credit Card product that brings a revolutionary change in the credit card landscape. The AU Bank LIT (Live-It-Today) Credit Card, by the largest small finance bank and one of the fastest-growing retail banks in India, offers a unique value proposition to cardholders – to choose the features they want and for the time period they want.

 

While credit card companies offer attractive products in different categories, it is often difficult for customers to find the combination of all such features in one single card. This forces them to opt for multiple credit cards offering specific category rewards like Travel card for maximising travel related spends or co-branded cards for shopping on specific e-commerce sites. With the LIT Credit Card, the Bank has put the power to choose these features in the hands of the customers – all categories in one card. Further, they also get the freedom to switch on or off these features as per their changing lifestyle requirements..

Source : Free Press Journal

CARD91, a global payment infrastructure powering B2B payments, announced a strategic partnership with YES BANK and RuPay, the flagship product of the National Payments Corporation of India (NPCI). Through this partnership, CARD91 will create a card management system that will allow companies to launch a variety of co-branded card instruments as well as maintain a real-time dashboard to generate insights. This will enable CARD91 to expand its presence in the Indian payments market.

 

CARD91’s partnership with YES BANK and RuPay will enable the company to provide businesses of all kinds across various sectors with a range of card instruments for managing and securing payments. Businesses will now have an option to choose from co-branded or non-branded card instruments, thereby giving them an innovative solution to address specific use.

Source : The Print

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