1. WEEKLY FINANCIAL SNIPPETS – 29/10/2016
1. RBI TO AUDIT CYBER SECURITY AT BANKS: In view of the latest financial data
leakage that has happened recently, RBI is looking to take matters in its own hands
and scrutinise security of banks. For that RBI is looking to rope in outside help that
would try and exploit the loopholes in the information technology system of the
banks so as to rule out repeated breaches in future. This would be a kind of IT
(Information Technology) audit which directly deal with the loopholes in IT system of
banks.
2. BANKS TOLD TO ADHERE TO CYBER NORMS: Indian Banks were recently stung by
the biggest financial data breach to hit the banking industry as a result of which the
banks were forced to compromise as many as 3.2 million debit cards. As a result of
this, Reserve Bank of India has directed banks to strictly adhere to the cyber security
norms and guidelines issued in June 2016. Banks have been advised to review the
extant cyber security arrangements.
3. HUNDREDS OF SMALL NBFCs FACE CLOSURE THREAT ON TIGHTER RATING NORMS:
Nearly 200 Non-Banking Financial Companies (NBFCs) face closure in the next few
months as they don’t meet the Reserve Bank of India’s mandated requirement of
minimum investment grade credit rating to accept deposits. These companies which
are mainly localised small time lenders have now approached the regulator seeking
relaxation in the said norms.
4. BSE INTRODUCES PAPERLESS “SIP” FACILITY FOR MUTUAL FUND INVESTORS: The
BSE has introduced paperless “SIP”( Systematic Investment Plan) facility to mutual
fund investors. This move will drastically cut the registration time and allow
subscribers to transact through different payment modes including Net Banking.
5. BANKS MAY ACQUIRE CORE SECTOR ASSETS: The government has decided to
encourage state run banks to acquire assets of loan defaulters in steel, power and
shipping sectors. State run banks will manage these companies. This will necessarily
involve the banks to invoke power under the contract, converting part of their debt
into equity, taking control of those units and appointing a management team of
established people to manage these units.
6. BANKS MOVE TO LOWER CREDIT CARD EXPOSURE: Banks are slowing their
exposure to their credit cards business amid fears that they may be fuelling growth
in a segment that may come under pressure due to slowing pay rises and
uncertainties over jobs.
Compiled by www.maacapitalsolutions.com