Banking and Financial Awareness June 2018: Week II

On 4th June, 2018 The Reserve Bank of India provided Rs 5400 cr for carrying out the newly launched 'Rythu Bandhu' investment program by the Telangana Government to support the farmers.
For this scheme the Government allotted Rs 12000 cr as the budget.
under the scheme, state Government will provide the input costs of Rs 4,000 each for every acre for two seasons by cheques.
A total of 59 lakh cheques settle by the banks led by SBI.
the total cost for the scheme is about Rs 57,000 crore for the current season.

On June 4, 2018, After the success achieve by the merger of SBI, the government is planning another big merger of 4 banks namely Bank of Baroda, Central Bank, IDBI bank, Oriental Bank.
this listed banks have reported a total loss of around Rs 21,646.38 crore in the year ended 31 March.
If the plan for the second bank merger goes smoothly, then the Centre will create India’s second largest bank after State Bank of India with a combined asset of Rs 16.58 trillion. Also The Government is planning to merge and create 4-5 global sized lenders like SBI.

On June 3, 2018, Citi Bank becomes the first corporate bank to register as a Payment Initiation Service Provider for Open Banking in UK
Aiming to meet treasurer's evolving needs for easy access to payment data without the need to build applications or interfaces to connect to proprietary banking portals.
In January 2018, Open Banking started in UK, which requires the nine largest UK banks to publish open APIs, enabling regulated third-party providers to access bank accounts securely and with the consent of account holder.
Citi Bank Headquarter is in New York, US.

On 6th June, 2018 A 6-member committee headed by RBI governor Urijit Patel announced the second bi-monthly Monetary Policy of 2018-19.
The MPC decided to raise the policy repo rate by 25 basis points.
This is the first time the meeting is for three days instead of the usual two.
RBI projected that the GDP growth of 7.4 percent in FY19.

On June 6, 2018, Bank of Baroda increased its Marginal Cost-Based Lending Rate (MCLR) by 5 basis points effective from 7 June, 2018.
last week, State Bank of India by 10 basis points, Punjab National Bank by 5-10 basis points, ICICI Bank, Kotak Mahindra Bank, and Union Bank of India all raised rates.

IDFC Bank received RBI’s approval for merger of Capital First, Capital First Home Finance and Capital First Securities with the company on 6th June.
the company said its board of directors has approved merger of the three entities with IDFC Bank.
IDFC Bank’s Headquarters is in Mumbai. MD & CEO – Rajiv B.Lall.

On 6th June 2018 The World Bank has approved Rs 6,000 crore for the implementation of Atal Bhujal Yojana which aims to improve groundwater management in priority areas.
the scheme would be implemented from 2018-19 to 2022-23 for a period of 5 years, recommended by the Expenditure Finance Committee.
The state: Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh priority areas are identified under the scheme.
This scheme would benefit around 8350 Gram Panchayats in 78 districts in these states.

On June 6, 2018, World Bank predicts India’s GDP growth to be 7.3% for FY19 and 7.5% in FY20 released by World Bank’s ‘Global Economic Prospect’ report.
China is expected to slow down slightly from 6.9 per cent in 2017 to 6.5 per cent in 2018, and 6.3 per cent in 2019.