Door Die 234565
Door Die 234565
Door Die 234565
Committed to
professional excellence
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.
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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.
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.
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.
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’.
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.
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 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
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
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.
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
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.
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
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
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