1. WEEKLY FINANCIAL SNIPPETS – 22/10/2016
1. RBI EASES NORMS FOR FOREIGN INVESTMENT IN START-UPS: The Reserve Bank of
India has now permitted Foreign Venture Capital Investors ( FVCIs) to invest in Indian
start-ups without any prior approval. SEBI registered FVCIs have also been permitted
to invest in un-listed firms without any prior permission from RBI. They do not
require any prior approval and can invest in equity or equity linked instruments or
debt instruments issued by Indian start-ups.
2. RBI PERMITS 100% FDI IN MORE FINANCIAL SERVICES: The Reserve Bank of India
has permitted 100% Foreign Direct Investment (FDI) in “Other Financial Services”
carried out by NBFCs under automatic route. The “Other Financial Services“ will
include activities which are regulated by any financial sector regulator like RBI, SEBI,
Insurance Regulatory, Pension Fund Regulatory etc. Such foreign Investment will be
subject to certain conditions like minimum capitalization norms.
3. SBI BLOCKS OVER 6 LAKHS DEBIT CARDS ON SECURITY BREACH FEAR: Sate bank of
India has said that it has blocked and will replace 6,25,000 debit cards fearing
data/security breach. SBI said it will compensate its customers in case of lapses. On
getting information from VISA/MASATERCARD and RUPAY, as a measure of
precaution, they have decided to replace these cards.
4. PSU BANKS ASKED TO REFER HIGH-VALUE BAD LOAN RESOLUTION CASES TO
OVERSEEING PANEL: The Finance Ministry has asked public sector banks to
approach the newly formulated Over Seeing Committee ( OC) for resolution of all
High-value bad loans and not just accounts considered under Scheme for Sustainable
Structuring of Stressed Assets ( S4A). The Over Seeing Committee (OC) is a two
member committee which includes former SBI Chairman Mr. Janki Ballabh and
former chief vigilance commissioner Mr. Pradeep Kumar which is set up by Indian
Banks’ Association in consultation with RBI and vigilance and investigating agencies.
5. MERGERS ARE NOT QUICK FIX SOLUTIONS FOR BANKING SECTOR: As per the
report of The Associated Chambers of Commerce and Industry of India (Assocham),
an Industry body, it says the government should focus on making banking system
more stronger and give the lenders independence to find their own solutions instead
of stressing on mergers. Assocham President Mr. Sunil Kanoria while releasing the
report said that mergers and consolidation of public sector banks is certainly no
answer to the present crisis, which can only be resolved by professionalising these
banks with the government keeping an arm’s length.
Compiled by www.maacapitalsolutions.com