3. • In finance,the financial system is the system that allows the
transfer of money between savers(and investors)and borrowers. A
financial system can operate on a global,regional or firm specific
level.
• Gurusamy, writing in financial services and systems has
described it as comprising “ a set of complex and closely
interconnected financial
institutions,markets,instruments,services,practices, and
transactions.”
4. • RBI to form Regulatory Sandbox for fintech and to set up Data
Science Lab.
• RBI to conduct OMO to infuse liquidity.
• IRDAI to migrate to risk based capital regime.
• The constitutional validity of the Aadhaar scheme upheld by Supreme
court.
• Government to setup independent payments regulatory board in RBI.
• Liquidity Boost: RBI increased SLR under the Basel-3 calculation.
• India to become one of the world's block chain leaders by 2023.
• PM launched the India Post Payment Bank in New Delhi.
• DBS Bank: Best Bank in the world.
• Artificial Intelligence (AI) Robots
5. • The Reserve Bank of India(RBI) has decided to form a
regulatory sandbox for financial technology(fintech) and
setting up of data science labs in order to keep pace with
innovation in the digital lending space.
6. • Based on the assessment of prevailing liquidity conditions
in the economy the Reserve Bank has decided to conduct
purchase of government securities under Open Market
Operation for an aggregate amount of Rs 100 billion Open
Market Operation is a monetary policy tool used by central
bank either inject or drain liquidity from the economy.If
there is excess liquidity the RBI resorts to sale securities
and sucks out the rupee liquidity. Similarly, when the
liquidity conditions are tight, it starts purchasing securities
from the market, there by releasing money into market.
7. • Apex insurance regulator IRDAI has decided to move
towards the risk based capital regime in order to improve
protection of policy holders. This shift regime was done
because of the reason that current solvency based rules
were not helpful in assessing wheather the capital held in
adequate enough for risk inherrent in the insurance
business but if risk based capital system is there,then
additional capital will not remain idle.
8. • From now onwards, Aadhaar will not be mandatory for
opening bank accounts, getting a phone connection or
school admissions as per the constitutional validity of the
Aadhaar scheme upheld by the Supreme court. Also
Aadhaar holders data will not be disclosed on the ground
of national securities.
9. • Finance minister has proposed to create a six member in
Independent Payment Regulatory Board in the RBI in order to
bring about structural reform in the payment and settlement
system. For the purpose of nesessary amendments have been
proposed in finance bill 2017 to create a payment to PRB in the
RBI by replacing the existing board for Regulation and supervision
of payment and settlement. Also the RBI Governor will be
chairperson.
10. • RBI has increased the amount of SLR with a future 2% increase in the
treasury holding of the banks as a high quality liquid assets under the
base3 calculation, potentially releasing up to Rs 2 lakh crore. Now
bank can considered as HQLAs to 15% of there total deposits from
13% earlier. Also Banks have to mandatory invest 19.5% of there total
deposits in government securities. It is important to note that under
the base3 rules, banks have to invest a part of their fund into liquid
securities which make up a liquidity coverage ratio.
11. • With the right amount of industry and government
participation, India could be in a leadership ranks in
adaptation of blockk chain technology in the next five
years, a survey by global consultancy firm PWC. A block
chain is an open distributed ledger technology that stores
information across multiple systems securely to enable
peer to peer transactions by creating a trustworthy source.
Banks and other financial institutionary investing in block
chain technology as it cuts down their costs and make
their operations faster and more transparent.
12. • PM Narendra Modi has launched the long awaited India Post
Payment Bank in order to financial inclusion for the masses. The
event was held at Talkatora Stadium in New Delhi. IPPBs will
have 650 branches in the country to provide an accessible,
affordable and trusted bank for common bank. The Government
owns 100% equity in IPPBs and also all 1.55 lakh Post offices in
the country will be linked the IPPBs system by December 31st
2018. Also the cabinet has approved the 80% increase in
spending of IPPBs to complete aggressively with existing player
like Airtel Payments Bank and Paytm Payments Bank.
13. • DBS Bank has won the prestigious Best Bank Award by
Global Finance in its world's Best Global Bank 2018 Awards.
• DBS Bank increasingly gaining international recognitoon and
stature on the worid stage, particularly for its leadership in
digital transformation . Also in july 2018 the bank was crowned
World Best Digital Bank by Euro money for the second time
inthree years. DBS is a leading financial service group in Asia,
that has 208 branches across the world with its Headquarters
in Singapore. Also the Bank has also been named as a
“Safest Bank in the Asia” by Global Finance for nine
consecutive year from 2009 to 2017.
14. • Many private and nationalized banks have started to
make use of chatbots or Artificial Inteligence (AI) robots
for assistance in customer support. The practice is still in
its intial stage but will definitely evolve and make the
entrance to general public in the near future. Chatboxs
are one of the emerging trends that are estimated to grow.
