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A Monthly Newsletter of Indian Institute of Banking & Finance (Rs.

40/- per annum)


(ISO 9001 : 2015 CERTIFIED)

Committed to
professional excellence

Volume No. : 11 Issue No. : 12 August 2018 No. of Pages - 8

MISSION
VISION To develop professionally qualified and
To be premier Institute for competent bankers and finance professionals
developing and nurturing competent primarily through a process of education,
professionals in banking and finance training, examination, consultancy /
field. counselling and continuing professional
development programs.

Online
Examination
Mock Test
E-Learning
Face Book

You
Tube

Training

Mobile App

Video INSIDE
Lecture
Top Stories...................................... 2
Banking Policies.............................. 2
Banking Developments................... 3
Insurance......................................... 3
New Appointments.......................... 3
Products & Alliances........................ 4
Forex............................................... 4
Glossary.......................................... 5
Financial Basics.............................. 5
Institute’s Training Activities............. 5
News from the Institute.................... 5
Green Initiative................................ 7
Market Roundup.............................. 8
"The information / news items contained in this publication have appeared in various external sources / media for public use or
consumption and are now meant only for members and subscribers. The views expressed and / or events narrated/ stated in
IIBF
the said information 1 sources. IIBF neither holds nor assumes
VISION/ news items are as perceived by the respective any responsibility
August 2018
for the correctness or adequacy or otherwise of the news items / events or any information whatsoever."
Top Stories - Banking Policies

TOP STORIES
RBI to release `100 notes in lavender

The RBI will soon release a new Rs.100 note. The lavender-coloured notes will have the motif of ‘Rani Ki Vav’ – an
intricately constructed step-well which is also a UNESCO World Heritage site. For the visually impaired, the new
notes will have intaglio of Mahatma Gandhi’s portrait, Ashoka Pillar emblem, raised triangular identification mark
with micro-text 100, and four angular bleed lines both on the right and left sides.

IBBI issues revised insolvency regulations

The Insolvency and Bankruptcy Board of India (IBBI) has issued revised norms to the Corporate Insolvency
Resolution Process (CIRP) regulations, paving the way for home-buyers to seek relief as financial creditors and
allowing conditional withdrawal of insolvency applications, among other key changes. The new mechanism provides
that for every class of creditors having at least ten creditors in the class, the interim resolution professional will have
to offer a choice of three insolvency professionals in the public announcement to act as the authorized representative
of creditors in each class.

IBBI insists on independence of resolution professionals

The Insolvency and Bankruptcy Board of India (IBBI) has directed Insolvency Professional Entities (IPEs) to refrain
from joining any panel of any market participant. IBBI has reiterated the position of law that an IPE cannot provide
any service to any person. They can only provide support services to the insolvency professionals who are its partners
or directors.

Angel funds need to disclose about investment, material changes

SEBI has mandated Angel Funds to disclose details related to investment, venture capital undertakings and ‘material
changes, within 10 days of launching a scheme. The term sheet has three categories viz. information related to
investment and investee company; compliance with SEBI’s AIF regulation; and ‘material changes’.

Overseas investment limit of AIFs, VCFs hiked

SEBI has increased the overseas investment limit of alternative investment funds (AIFs) and venture capital funds
(VCFs) to $750 million, from the current $500 million. AIFs and VCFs will have to mandatorily disclose the
utilization of such limits on SEBI’s intermediary portal, within five working days of the usage.

Banking Policies
RBI revises short sale norms in secondary market for G-Secs

The RBI has revised norms on short sale in the secondary market for government securities (G-secs). The ‘short sale’
was introduced in February 2006 to provide participants with a tool to express two-way view on interest rates and
thereby enhance price discovery.

IIBF VISION 2 August 2018


Banking Policies - Banking Developments - Insurance - New Appointments

As per the revised norms, any other regulated entity which has the approval of regulators, including SEBI and IRDAI,
will be considered an eligible entity to undertake short sales. The maximum amount of a security that can be short
sold are: Liquid securities - 2% of the total outstanding stock of each security, or ₹500 crores (whichever is higher),
and, other securities - 1% of the total outstanding stock of each security, or, ₹250 crores (whichever is higher).

Banking Developments
RBI asks banks to upgrade their ATMs

Reserve Bank of India (RBI) has asked banks to upgrade old operating systems (Windows XP and prior) of their
ATMS by June 2019 and implement anti-skimming solutions by March 2019.

RBI to banks: Ensure equitable credit to minorities

RBI has directed banks to ensure that minorities in 121 identified districts receive a fair and equitable portion of
credit within the overall target of the priority sector lending (PSL). Government has listed 121 minority concentration
districts having at least 25% minority population, excluding those States/UTs where minorities are in majority
(Jammu and Kashmir, Punjab, Meghalaya, Mizoram, Nagaland and Lakshadweep). Sikhs, Muslims, Christians,
Zoroastrians, Buddhists and Jains have been notified as minority communities.

Insurance
No vehicle insurance without PUC certificate: IRDAI

Acting tough on those violating emission norms, IRDAI has directed all general insurance companies to not insure
any vehicle without a valid Pollution Under Control (PUC) certificate. The IRDAI’s move follows the Supreme
Court’s verdict given in the MC Mehta Vs Union of India and Others case in August 2017, which had directed
insurers to not insure a vehicle unless it has a valid PUC certificate on the policy renewal date. The policy renewal is
done on a yearly basis.

New Appointments
Name Designation/Organization

Mr. Arijit Basu Managing Director of State Bank of India (SBI)

Ms. T. Latha Managing Director & CEO of Dhanlaxmi Bank

Mr. Vinod Yennemadi New Board of Director of SVC Co-operative Bank

IIBF VISION 3 August 2018


Products & Alliances - Forex

Products
& Alliances
Organization Organization tied up with Purpose
ICICI Bank Australia’s Westpac Banking (Westpac) To facilitate online fee payments by Indian
students-
Bank of Baroda South Korea’s KB Financial Group To develop an innovative payments business, which
may include insurance of new branded cards-
Export-Import Bank SBI Capital Markets (SBICAP) To establish a line of credit of up to $1.5 billion
of Korea (K-EXIM) from K-EXIM to Indian lenders-

Forex
Foreign Exchange Reserves
As on July 27, 2018
Item ₹ Bn. US$ Mn.
1 2
1 Total Reserves 27,753.5 4,04,192.5
1.1 Foreign Currency Assets 26,027.9 3,79,037.1
1.2 Gold 1,453.9 21,201.0
1.3 SDRs 101.7 1,479.9
1.4 Reserve Position in the IMF 170.0 2,474.5
Source: Reserve Bank of India
Benchmark Rates for FCNR(B) Deposits applicable for August 2018
Base Rates for FCNR(B) Deposits
Currency 1 Year 2 Years 3 Years 4 Years 5 Years
USD 2.67500 2.87600 2.91980 2.94340 2.95420
GBP 0.93450 1.1339 1.2420 1.3302 1.3999
EUR -0.23380 -0.140 0.038 0.193 0.338
JPY 0.04130 0.063 0.074 0.095 0.121
CAD 2.27000 2.387 2.478 2.536 2.575
AUD 2.03750 2.126 2.209 2.449 2.540
CHF -0.61000 -0.503 -0.338 -0.187 -0.049
DKK -0.11520 -0.0101 0.1509 0.3227 0.4795
NZD 2.03300 2.153 2.294 2.433 2.566
SEK -0.28000 -0.078 0.135 0.345 0.543
SGD 1.76400 1.961 2.074 2.160 2.235
HKD 2.24000 2.470 2.590 2.670 2.720
MYR 3.72000 3.720 3.760 3.810 3.850
Source: www.fedai.org.in

IIBF VISION 4 August 2018


Glossary - Financial Basics - Institute’s Training Activities - News from the Institute

Glossary
Alternative Investment Fund (AIF)
Alternative investment funds (AIFs) are defined in Regulation 2(1) (b) of Securities and Exchange Board of India
(Alternative Investment Funds) Regulations, 2012. It refers to any privately pooled investment fund, (whether
from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability
Partnership (LLP). Hence, in India, AIFs are private funds which are otherwise not coming under the jurisdiction
of any regulatory agency in India

Financial Basics
Swap Ratio
Swap ratio is the ratio at which an acquiring company will offer its own shares in exchange for the target company’s
shares during a merger or acquisition.
This is calculated by the valuation of various assets and liabilities of the merging companies. The ratio, when
calculated, states the rate at which the target company’s shareholders will receive acquiring company shares of stock
for every one share of target company stock they currently hold.

Institute’s Training Activities


Training Programme for the month of August/September 2018

Programme Dates Location


Post Examination Training For Certified Treasury Professionals 24 to 26 August, 2018
th th

Post Examination Class room Training Certified Credit 23rd to 25th August 2018
Professionals Mumbai
Post Examination Training For Certified Bank Trainer Course 3 to 7 September, 2018
rd th

Training Programme For Law Officers 27th to 29th August, 2018


Post Examination Class room Training Certified Credit 16th to 18th August 2018
New Delhi
Professionals
Post Examination Class room Training Certified Credit 30th August to 1st September
Hyderabad
Professionals 2018

News from the Institute


Annual General Meeting, 2018
The 91st Annual General Meeting of the Institute was held on Saturday, 21st July 2018 at 4.00 P.M. at the Institute’s
Corporate Office, Mumbai.
R. K. Talwar Memorial Lecture
The 9th R. K, Talwar Memorial Lecture was held on 8th August 2018 at SBI Auditorium, Mumbai. The Lecture was
delivered by Dr. Bibek Debroy, Chairman, Economic Advisory Council to the Prime Minister and Member NITI
Aayog, Government of India. The topic of the Lecture was “The Reform Agenda”.

IIBF VISION 5 August 2018


News from the Institute

Change in Rule for Collecting Examination Fees


With effect from 1st July 2017, Institute has switched over to Goods & Service Tax (GST) regime from Service Tax.
The earlier rule of collecting examination fees for Associate, Diploma and Blended courses stipulates that candidates
have to pay examination fee for two attempts together. In order to comply with GST provisions and to simplify
administration of payment of tax, the rule of collecting fees has been re-structured. Institute will now collect
examination fee for each attempt separately from the candidates. Therefore, candidates have to register for each
attempt separately.
International Conference on ‘Banking: Stepping into the next decade’
The Institute has completed 90 years of dedicated service to the banking industry in 2018 and to commemorate this
occasion, the Institute is organizing an International Conference on ‘Banking: Stepping into the next decade’ on 25th
September 2018 at Hotel Trident, Bandra-Kurla Complex, Mumbai.
Capacity Building in banks
RBI vide its notification dated 11th August 2016 has mandated that each bank should have a Board approved policy
to deploy staff with adequate qualification/certification in key areas of operations. To begin with, they have identified
following areas:
• Treasury Management: Dealers, Mid-office Operations.
• Risk Management: Credit Risk, Market Risk, Operational Risk, Enterprise-Wide Risk, Information Security,
Liquidity Risk.
• Accounting – Preparation of financial results, Audit function
• Credit Management: Credit appraisal, Rating, Monitoring, Credit Administration.
Subsequently on the direction of RBI, IBA had constituted an Expert Group for identifying suitable institutions and
courses that can provide the necessary certifications. IIBF has introduced a course on Accounting and Audit. The
first exam on the subject was held on 15th July 2018. With this the Institute has courses on all the above four areas.
Further, RBI vide its letter dated 31st May 2017, addressed to IBA and copy endorsed to IIBF has stated that the
Certificate Course in Foreign Exchange offered by IIBF in association with FEDAI will be a mandatory certification
for all bank employees who are working or desirous of working in the area of foreign exchange operations including
treasury operations.
The courses offered by the Institute in the areas of Treasury Operations, Risk Management, Credit Management
and Accounting and Audit are blended in nature with an online examination followed by training for such of
those candidates who have successfully cleared the online examination. Please visit the website www.iibf.org.in for
examination registration and more details.
Mutual Recognition Agreement with the Chartered Banker Institute, Edinburgh, U.K
The Institute is delighted to announce the signing of a Mutual Recognition Agreement with The Chartered Banker
Institute, Edinburgh. Under this agreement, “Certified Associates of the Indian Institute of Bankers” (CAIIB) from
India will have their qualifications recognised by the Chartered Banker Institute, and will be able to become Chartered
Bankers by studying the Institute’s Professionalism, Ethics & Regulation Module, and successfully completing a
reflective assignment.
Virtual Classroom Solution
The Institute has acquired a software for conducting training through the Virtual Classroom mode. This will enable
the Institute to disseminate the training inputs to a larger audience without diluting quality. Virtual training for
Certificate in Risk in Financial Services, Certified Treasury Professional and Accounting & Audit have also been

IIBF VISION 6 August 2018


News from the Institute - Green Initiative

introduced. For more details, please visit our website www.iibf.org.in.


Mock Test facility for Examinations
The Institute is offering mock test facility for three of its specialised courses, namely, Certified Treasury Professional,
Certified Credit Professional and Risk in Financial Services, in addition to its flagship courses viz JAIIB & CAIIB.
The mock test can now be taken by any bank staff.
Video Lectures now available on YouTube
The facility of video lectures, offered by the Institute for 3 compulsory papers of JAIIB and 2 compulsory papers of
CAIIB, will be available on the Institute’s official YouTube Channel. The link to the same is https://www.youtube.
com/channel/UCjffIKtvEh8yLb3vwxosGow/playlists”
Examination at Institute’s own Test centres at Mumbai & Kolkata
The Institute, earlier conducted examinations on the 2nd and 4th Saturday of every month for four of its courses
namely, Micro, Small & Medium Enterprises (MSMEs), Customer Service, AML/KYC and Cyber Crimes at its own
Test Centres at Mumbai & Kolkata. The exams shall now be conducted on the 1st and 3rd Saturday of every month for
the mentioned courses. Candidates can select the examination date and centre of his/her choice. Registration will
be on first come first serve basis. The schedule of the examinations for the said courses is available on our website
www.iibf.org.in.
Bank Quest Theme for upcoming issue
The themes for next issues of “Bank Quest” are identified as:
• Banking: Stepping into the next decade – July – September 2018
• Micro Research Papers 2018: October – December, 2018
• Mutual Funds: January – March, 2019
• Ethics & Corporate Governance in Banks: April – June, 2019
• Emerging technological changes in Banking: July – September, 2019
Cut-off date of guidelines /important developments for examinations
The Institute has a practice of asking some questions in each exam about the recent developments / guidelines issued
by the regulator(s) in order to test if the candidates keep themselves abreast of the current developments. However,
there could be changes in the developments / guidelines from the date the question papers are prepared and the dates
of the actual examinations. In order to address these issues effectively, it has been decided that:
(i) In respect of the exams to be conducted by the Institute for the period from February 2018 to July 2018, instructions/
guidelines issued by the regulator(s) and important developments in banking and finance up to 31st December, 2017
will only be considered for the purpose of inclusion in the question papers.
(ii)In respect of the exams to be conducted by the Institute for the period from August 2018 to January 2019,
instructions/guidelines issued by the regulator(s) and important developments in banking and finance up to 30th
June, 2018 will only be considered for the purpose of inclusion in the question papers.

Green Initiative
Members are requested to update their e-mail address with the Institute and send their consent to receive the Annual
Report via e-mail.

IIBF VISION 7 August 2018


Market Roundup

● Registered with Registrar of Newspapers Under RNI No. : 69228/1998

BSE Sensex

Market Roundup
41,000.00
36,000.00
Weighted Average Call Rates 31,000.00
26,000.00

May, 2018

July, 2018
February, 2018

March, 2018

June, 2018
April, 2018
6.2
6.1
6
5.9
5.8 Source: Bombay Stock Exchange (BSE)
5.7
May, 2018
February, 2018

March, 2018

June, 2018

July, 2018
April, 2018

Aggregate Deposit Growth %


10
Source: CCIL Newsletter July 2018 9
8
7
6
5
4
3
2
1

Mar, 2018

June, 2018
January, 2018

February, 2018

Apr, 2018

May, 2018
RBI Reference Rate

100
90
Source: Monthly Review of Economy, CCIL, July 2018
80
70 USD
60
50 GBP Printed by Dr. J. N. Misra, Published by Dr. J. N. Misra on behalf of Indian
Institute of Banking & Finance, and printed at Onlooker Press 16, Sasoon
June, 2018
April, 2018

July, 2018
February, 2018

March, 2018

May, 2018

EURO
Dock, Colaba, Mumbai - 400 005 and published from Indian Institute of
YEN
Banking & Finance, Kohinoor City, Commercial-II, Tower-I,2nd Floor, Kirol
Road, Kurla (W), Mumbai - 400 070.
Editor : Dr. J. N. Misra

Source: Reserve Bank of India (RBI)

Non-food Credit Growth %

20
15
10
5
0
March, 2018

April, 2018

May, 2018
January, 2018

February, 2018

June, 2018

INDIAN INSTITUTE OF BANKING & FINANCE


Kohinoor City, Commercial-II, Tower-I, 2nd Floor, Kirol Road, Kurla (W),
Mumbai - 400 070.
Tel. : 91-22-2503 9604 / 9746/9907 ● Fax : 91-22-2503 7332
Source: Monthly Review of Economy, CCIL, July 2018 E-mail : admin@iibf.org.in
Website : www.iibf.org.in

IIBF VISION 8 August 2018

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