Excellence by Saikat Sir: December 2023

RBI Allows Banks to Open Current Accounts for Export Proceeds Alongside Special Rupee Vostro Accounts

The Reserve Bank of India (RBI) permitted banks to open additional current accounts for export proceeds in addition to special rupee vostro accounts with a view to provide greater operational flexibility to exporters.
To provide greater operational flexibility to exporters, banks maintaining a special rupee vostro account as per the provisions of the RBI circular dated July 11, 2022 are permitted to open an additional special current account for its exporter constituent exclusively for settlement of their export transactions.

Amazon Pay Introduces Video KYC Service in Sign Language for Customers with Hearing and Speech Impairments

Amazon Pay has launched a video sign language Know Your Customer (KYC) service for hearing and speech impaired customers, which involves communication through sign languages, a pioneering initiative in the digital payments sector in India.
The company has rolled out the initiative that enables two-way video communication in sign-language between Amazon Pay employees and customers.
The goal is to make the KYC process effortless for those who rely on sign language, and making digital payments more inclusive.

Key Highlights :

RBI and Bank of England Ink MoU for Collaboration and Information Sharing on CCIL

The Reserve Bank of India (RBI) and the Bank of England (BoE) signed a Memorandum of Understanding (MoU) for cooperation and information exchange regarding the Clearing Corporation of India Ltd. (CCIL).
Objective of the MoU : To encourage the European Securities and Markets Authority (ESMA) to reconsider recognizing at least one of the Indian central counterparties (CCPs).
The MoU establishes a framework for the BoE to rely on the regulatory and supervisory activities of the RBI, ensuring the stability of the UK financial system.
The agreement highlights the significance of cross-border cooperation to facilitate international clearing activities and reflects the BoE’s commitment to deference to other regulators’ regimes.

Key Highlights :

LIC Launches New Whole Life Insurance Policy ‘Jeevan Utsav

Life Insurance Corporation of India (LIC), has launched a new individual, savings, and Whole Life Insurance plan called Jeevan Utsav.

About Jeevan Utsav :

The Plan is a Non-Linked, Non-Participating Plan.
This is a comprehensive form of life insurance providing lifetime coverage.
Unlike term insurance plans that cover a person for a specified term, whole life insurance, as the name implies, provides coverage for the entire lifetime of the insured individual.
This insurance plan not only grant’s death benefits to the beneficiaries after the policyholder’s demise but also has a savings component where cash values accumulate over time.

India Records Near 5-Year High Banking Liquidity Deficit

India’s banking system liquidity deficit has widened to the highest in nearly 5 years on monthly goods and services tax payments.
The liquidity deficit is the amount of funds banks need to borrow from the interbank market or from the central bank.

What is banking system liquidity?

Liquidity in the banking system refers to readily available cash that banks need to meet short-term business and financial needs.
According to the Reserve Bank of India (RBI), the liquidity deficit stood at Rs 1.74 lakh crore ($20.90 billion).
It is highest since 2018, when it had hit Rs 1.86 lakh crore.
On a given day, if the banking system is a net borrower from the RBI under Liquidity Adjustment Facility (LAF), the system liquidity can be said to be in deficit.
LAF refers to the RBI’s operations through which it injects or absorbs liquidity into or from the banking system.
If the banking system is a net lender to the RBI, the system liquidity can be said to be in surplus.

Excellence by Saikat Sir