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RBI Approves AU Bank’s Acquisition of Fincare Small Finance Bank from April 1
Current Context: The Reserve Bank of India (RBI) has approved the merger of Fincare Small Finance Bank with AU Small Finance Bank.
Details
- The effective date of the amalgamation is set for April 1, 2024.
- As per the agreement between the two banks, shareholders of Fincare Small Finance Bank will receive 579 equity shares of AU Small Finance Bank for every 2,000 shares held.
- Out of the 10 small finance banks that received a license in 2015 from RBI, AU and Capital Small Finance Bank had no microfinance legacy.
- While 49% of Fincare’s branches are based in south India, AU had merely 2%.
- The merged bank will have 2334 branches.
DPIIT-World Bank Workshop on Logistics Efficiency
Current Context: The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry in collaboration with the World Bank Group organized a National Workshop on Logistics Efficiency Enhancement on February 27, 2024, in New Delhi.
About
- Over 100 participants from various Ministries/Departments of the Government of India, officials from States, Multilateral Institutions, and Industry Associations participated in the event.
- The workshop was divided into three sessions:
- Session Icovered discussions on the approach and methodology adopted in the calculation of the Logistics Performance Index (LPI) by the World Bank.
- Session II discussed the corridor approach including Bharatmala and Sagarmala Corridors which is enhancing logistics efficiency, bringing down logistics costs, and increasing first and last mile connectivity.
- Session III,officials from States shared best practices, reforms, and digital initiatives undertaken to improve logistics efficiency.
RBI Updates BBPS for Efficient Bill Payments and Issues New Supervisory Returns Directive
Current Context: The Reserve Bank of India (RBI) has made two significant announcements recently:
Key Points
- Revision of the BBPS Framework: RBI has put in place a revised regulatory framework for Bharat Bill Payment Systems (BBPS) based on a review of developments in the payments landscape. The new framework, applicable from April 1, 2024, seeks to streamline the process of bill payments, enable greater participation, and enhance customer protection. The revised framework will apply to NPCI Bharat Bill Pay Limited (NBBL) and all Bharat Bill Payment Operating Units (BBPOUs). These directions spell out the roles and responsibilities of the system operator and system participants.
- Master Direction for Filing of Supervisory Returns: RBI has issued a Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024. This directive aims to standardize the filing of supervisory returns by banks and non-banking financial companies (NBFCs) to bring clarity, brevity, and harmonization to the instructions issued to various supervised entities for return submission. This is part of a series of steps initiated by RBI to reduce the burden of compliance on the regulated entities.
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