Banking News June 2021 – Here we cover the most important Banking News June 2021. We cover all the important business news from June month.
We update the Banking News June 2021 article daily and the latest news appears at first. Our news sources are The Hindu, AIR, DD News, PIB, Indian Express, Business Line, and reputed and genuine sites.
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- RBI cancels license of Shivajirao Bhosale Sahakari Bank
- ICICI Lombard companions with Microsoft to automate audits of service calls
- ICICI Bank Now Became 2nd Globally to offer ‘SWIFT gpi Instant’ facility
- RBI imposes a penalty Rs 6 crore on BoI and PNB totaling
- NITI Aayog recommends privatization of Central Bank, Indian Overseas Bank
- SBI launches Kavach Personal Loan for Covid-19 patients
- RBI: ATM cash withdrawal rule changed
- IDFC FIRST Bank launches Customer COVID relief Ghar Ghar Ration Program
RBI cancels license of Shivajirao Bhosale Sahakari Bank
The Reserve Bank of India (RBI) has canceled the license of Shivajirao Bhosale Sahakari Bank Ltd., Pune, Maharashtra. Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 31, 2021.
The bank does not have adequate capital and earning prospects. As such, it does not comply with the provision of the Banking Regulation Act, 1949.
RBI said in a press release that the bank with its present financial position would be unable to pay its present depositors in full and Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.
ICICI Lombard companions with Microsoft to automate audits of service calls
The country’s renowned private sector general insurer, ICICI Lombard has tied up with Microsoft to strengthen and automate the quality control processes.
ICICI Lombard will make use of Microsoft’s Azure Speech Services and Natural Language Processing (NLP) to screen its daily service calls made by the customer service representatives.
The deployment of Azure’s synthetic instruments has, amongst different issues, allowed ICICI Lombard to enhance the accuracy of its high-quality audits.
ICICI Lombard CEO: Bhargav Dasgupta, ICICI Lombard Headquarters: Mumbai, ICICI Lombard Founded: 2001
ICICI Bank Now Became 2nd Globally to offer ‘SWIFT gpi Instant’ facility
In an announcement, ICICI Bank said that it has tied up with SWIFT to offer a facility that helps overseas partner banks to send instant remittances on behalf of their customers to the beneficiary in India. Now the customers of ICICI Bank will get customer-centric solutions enabling quick and hassle-free money transfers.
The beneficiary gets the credit to the bank account instantly. Now ICICI Bank becomes the first bank in Asia-Pacific and the second globally to offer the facility, called ‘SWIFT gpi Instant’, for cross-border inward payments. Lloyds Bank in the UK is the first bank to switch on Swift gpi Instant.
ICICI Bank Headquarters: Mumbai, Maharashtra, ICICI Bank MD & CEO: Sandeep Bakhshi, ICICI Bank Tagline: Hum Hai Na, Khayal Apka
RBI imposes a penalty Rs 6 crore on BoI and PNB totaling
The RBI has imposed a penalty aggregating to Rs 6 crores on Bank of India (BOI) and Punjab National Bank (PNB) for contravention of norms, including one related to “Frauds – Classification and Reporting” (Rs. 4 crores one BOI and Rs2 crore on PNB).
PNB headquarter: New Delhi, PNB Chairman: Mallikarjuna Rao, PNB tagline: The Name You Can Bank Upon
BOI headquarter: Vadodara , BOI Chairman: G Padmanabhan, BOI tagline: India’s International Bank
NITI Aayog recommends privatization of Central Bank, Indian Overseas Bank
Central Bank Of India and Indian Overseas Bank have recommended by the NITI Aayog for privatization as part of the privatization initiative.
Finance Minister Nirmala Sitharaman had announced in her budget speech that the government is going to privatize two public sector banks (PSBs) and one general insurance company in 2021-22.
As per the new PSE (Public Sector Enterprise) policy for ‘Aatmanirbhar Bharat’, NITI Aayog is entrusted with the task to suggest names of PSUs in strategic sectors to be merged, privatized, or made subsidiaries of other PSUs.
NITI Aayog Formed: 1 January 2015, NITI Aayog Headquarters: New Delhi, NITI Aayog Chairperson: Narendra Modi
SBI launches Kavach Personal Loan for Covid-19 patients
State Bank of India (SBI) has launched a collateral-free “Kavach Personal Loan” to enable its customers to meet medical expenses for COVID treatment.
Under this scheme, customers are able to take loans up to ₹5 lakhs at an effective interest rate of 8.5 % per annum for 60 months, which is inclusive of three months moratorium.
This loan product will also be part of the Covid loan book being created by banks as per the Reserve Bank of India’s Covid relief measures. The loan will also cover reimbursement of Covid related medical expenses already incurred.
SBI Chairperson: Dinesh Kumar Khara, SBI Headquarters: Mumbai, SBI Founded: 1 July 1955
RBI: ATM cash withdrawal rule changed
Reserve Bank of India (RBI) has changed automated teller machine (ATM)ash withdrawal rules. These ATM cash withdrawal rule changes include higher charges on transactions beyond the free permissible limit, a new free ATM transaction limit, and a rise in interchange fees.
Free cash withdrawal limit from own bank: Bank customers can now do five free financial and non-financial transactions every month from their own bank ATMs.
The new ATM charges as defined by RBI are as under:
- Free ATM transaction limit from other banks: ATM cardholders can do three free financial and non-financial transactions in metro centers while five in the non-metro transaction from other bank ATMs
- Charges on ATM cash withdrawal beyond the free limit: RBI allowed banks to increase charges on ATM transactions beyond the free ATM transaction limit.
- Rise in interchange fee: Interchange fee per transaction changed from Rs 15 to Rs 17 for financial transactions while from Rs 5 to Rs 6 for non-financial transactions in effect from August 1, 2021.
- New charges on ATM withdrawal beyond the free transaction limit: Bank customers will have to pay Rs 21 (currently it is Rs 20) for each ATM cash withdrawal beyond the free transaction limit in effect from January 1, 2022.
IDFC FIRST Bank launches Customer COVID relief Ghar Ghar Ration Program
IDFC FIRST Bank has announced a launch program ‘Ghar Ghar Ration’ Program, an employee-funded program for its low-income customers whose livelihoods are affected by COVID-19. For this program, the employees of the IDFC First Bank contributed one day to one month’s salary for this purpose.
The bank has also announced a comprehensive program for the families of employees who unfortunately lost their lives due to COVID-19, and a number of other social responsibility initiatives.
In the “Ghar Ghar Ration” program, employees have contributed from their personal income to set up a Customer COVID Care Fund to provide relief to 50,000 COVID-affected low-income IDFC FIRST Bank customers.
Employees are procuring ration kits comprising 10 kg rice/flour, 2 kg dal (lentils), 1 kg sugar and salt, 1 kg cooking oil, 5 packets of assorted spices, tea and biscuits, and other essentials needed to support a small family for about a month.
IDFC FIRST Bank CEO: V. Vaidyanathan, IDFC FIRST Bank Headquarters: Mumbai, IDFC FIRST Bank Founded: October 2015