CURRENT AFFAIRS : BANKING & FINANCE
Reserve Bank of India Extends Deadline for Banks and ATM Operators to Implement Cassette Swap Mechanism
- The Reserve Bank of India (RBI) has given banks and ATM operators some wiggle room for implementing the cassette swap mechanism for cash replenishment in ATMs.
- The banking regulator has exempted cash recycler machines (CRMs) from the cassette swap requirement for cash replenishment.
- Additionally, this exemption applies when banks don’t engage outsourced agencies for cash replenishment in ATMs.
Key Highlights :
- Original Plan (2018) : In 2018, the RBI had asked banks to implement the cassette swap mechanism in a phased manner, covering at least one-third of ATMs operated by them each year so that all ATMs would achieve cassette swap by March 31, 2021.
- However, the implementation has been tardy.
- New Deadline (2025) : Now, the RBI has asked banks to expeditiously implement the roadmap for cassette swap implementation by March 31, 2025.
- Cassette Swap Mechanism : Under the cassette swap mechanism, lockable cassettes filled with banknotes are used in ATMs that are swapped at the time of cash replenishment.
- This move to exclude the cash recyclers from the cassette swap process is, in fact, a step back and needs further discussion and debate.
- Cost Considerations: Each ATM typically requires three sets of five cassettes, with the cost of each cassette ranging from ₹15,000 to ₹20,000.
- This includes cassettes for the ATM itself, in transit, and stored at the branch or cash-in-transit (CIT) company.
- Current ATM Landscape: As of August 2024, there were 2.55 lakh ATMs in India, of which 2.20 lakh were bank-owned, and 35,000 were operated by White Label ATM Operators.
- Impact of the Exemption: The exemption for CRMs and in-house operations could delay the widespread adoption of the cassette swap mechanism and may raise questions regarding its efficiency and effectiveness.
Galaxy Health Insurance launches its first insurance product, ‘Galaxy Promise’
- Galaxy Health Insurance Company Limited has launched its first health insurance product, ‘Galaxy Promise’.
- The product targets families seeking affordable health coverage.
- The company is jointly promoted by Venu Srinivasan, Chairman Emeritus of TVS Motor Company and Sundaram-Clayton Ltd, and V Jagannathan, founder of Star Health and Allied Insurance Company Ltd.
- Galaxy Health Insurance received approval from the Insurance Regulatory and Development Authority of India (IRDAI) earlier in 2024 to commence its operations.
- ‘Galaxy Promise’ offers sum insured options ranging from ₹3 lakh to ₹1 crore.
- The product is available in multiple plans: Signature, Elite, and Premier, offering flexibility to customers.
- Managing Director and CEO of Galaxy Health Insurance : G Srinivasan
JPMorgan establishes GIFT City unit to create derivative products
- JPMorgan Chase & Co. has set up a unit in India’s Gujarat International Finance Tec-City (GIFT City), becoming the first global bank to establish such a unit aimed at developing derivative products.
- The unit will focus on creating derivative products to be offered to clients across Asia-Pacific and Europe.
- JPMorgan plans to hire five people in the next 12 months to lead the development of derivative products in GIFT City.
- JPMorgan opened its international business unit in GIFT City in 2022, enabling the bank to provide services to its group entities outside the free trade zone, without adding liabilities to its balance sheet, as per exemptions granted by the regulator for economic zones.
About JPMorgan Chase & Co :
- Founded : December 1, 2000
- Headquarters : New York City, United States
- Chairman & CEO : Jamie Dimon
World Bank Increases Lending Capacity by 50%, Pledges $150 Billion for Green Projects and Developing Economies Over the Next Decade
- The World Bank has increased its lending capacity by 50%, enabling it to offer a record $150 billion over the next decade.
- The World Bank’s primary focus will be on supporting developing economies through this increased capacity.
- A major portion of the funding will be directed towards green projects, supporting climate action and the achievement of the Sustainable Development Goals (SDGs).
- The World Bank currently lends $5 billion annually, with the increased capacity significantly enhancing its ability to provide financial support for climate resilience and sustainable development.
- India, one of the World Bank’s largest clients, will receive a major share of this increased funding, especially for projects related to climate resilience, rural development, energy, healthcare, and digital education.
About World Bank :
- Established : July 7, 1944
- Headquarters : Washington, D.C., United States
- President : Ajay Banga
Asian Development Bank issues first biodiversity and nature-themed bond to fund projects across Asia and the Pacific
- The Asian Development Bank (ADB) has issued its first biodiversity and nature theme bond to finance a pool of eligible projects across Asia and the Pacific.
- The bond, valued at A$150 million (approximately US$100 million), has a 10-year maturity and was purchased by Dai-ichi Life Insurance Company of Japan. It was arranged by Credit Agricole CIB.
- The bond was issued under ADB’s Theme Bonds for Sustainable Development program, in collaboration with its Environment group.
- ADB’s theme bonds for sustainable development act as a key vehicle to mobilize private capital in support of the United Nations Sustainable Development Goals and the Kunming-Montreal Global Biodiversity Framework.
- ADB will soon launch its Environment Action Plan 2024–2030: Towards a Nature Positive Asia and the Pacific that will create a road map for its activities to tackle climate change, biodiversity loss, and pollution.
About ADB :
- Established : 1966
- Headquarters : Manila, Philippines
- President : Masatsugu Asakawa
- Membership : 68 members, including 49 regional members (countries in Asia and the Pacific) and 19 non-regional members (countries outside the region)
IDFC FIRST Bank unveils exclusive Startup Lounge to support and empower early-stage entrepreneurs in India
- IDFC FIRST Bank has launched a new Startup Lounge to support early-stage startups and entrepreneurs in India.
- The lounge is located in Koramangala, Bangalore.
Key Features of the Lounge:
- The FIRST Wings Startup Lounge provides mentorship, networking opportunities, and access to essential resources for entrepreneurs.
- It is equipped with state-of-the-art facilities, including meeting rooms and advanced video conferencing solutions.
- The space is designed to help entrepreneurs scale their businesses and facilitate collaboration with investors.
About IDFC FIRST Bank:
- Founded: October 2015.
- Headquarters: Mumbai, Maharashtra, India.
- MD & CEO: V. Vaidyanathan.
- IDFC FIRST Bank was formed through the merger of the banking arm of Infrastructure Development Finance Company (IDFC) and Capital First, a non-bank financial institution.
HDFC Bank and TOI Host Cyber Security Summit in New Delhi to Mark Fifth Year of Participation in International Fraud Awareness Week
- HDFC Bank and Times of India (TOI) organized the Cyber Security Summit in New Delhi to mark the fifth year of HDFC Bank’s participation in International Fraud Awareness Week.
- Cyber frauds or cyber crimes are increasingly grabbing headlines and the need for individuals and institutions to stay vigilant has never been more pressing.
- HDFC Bank launched the ‘Stay Safe, Stay Vigil’ campaign, featuring ‘Vigil Aunty,’ a social media influencer who educates people on recognizing and avoiding common and innovative cyber frauds.
- The campaign is aimed at spreading awareness and informing the public about various types of cyber frauds to prevent financial losses.
About HDFC Bank :
- Founded : August 1994
- Headquarters : Mumbai, Maharashtra, India
- CEO : Sashidhar Jagdishan
