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. Main Points of RBI monetary policy review:As on 1 April 2014, RBI (Reserve Bank of India) in its first bimonthlymonetary policy statement kept the key policy rate (repo) unchanged.

Current RBI Policy & Reserve Rates:1. Repo Rate8% (Unchanged)2. Reverse Repo7% (Unchanged)3. CRR4% (Unchanged)4.SLR23% (Unchanged)5. MSF9% (Unchanged)6.Bank Rate9% (Unchanged)

Note: i.Economic growth for 2014-15 expected at 5.5%.

ii.CAD expected to come down to 2%of GDP in 2014-15.iii.Retail inflation expected to be under 6% in 2014.iv.RBI asks banks not to charge penalty for failure to maintainminimum balance in inoperative account.v.It was first bi-monthly monetary policy review, next one scheduledfor June 3.World Bank has projected an economic growth rate of 5.7% in2014-15 for India:

World Bank projected an acceleration of growth (factor costs) in FY2014 to 4.8%,further increase to 5.7% in FY 2015

Panel headed by Anand SInha for benchmark floating interestrateRBI panel headed by RBI Deputy Governor Anand Sinha hasrecommended bringing a benchmark floating interest rate, especially

for home loans. Panel also suggested Indian Banks Base Rate(IBBR).

SBI launches 3 Digital banking facilities for its customersi. Tab Banking for Saving A/C -Opening Savings a/c at Customers door

step using tablet PC provided to the Banks Sales Staff (who visit theCustomers home).ii. TAB Banking for Home Loan - In-principle approval for the home loanat customers door step using tablet PC provided to the Banks HomeLoan Sales Team which will capture on the tablet KYC details anddetails.iii.e-KYC - Generates e-KYC (Know Your Customer) identitydocument. Fingerprints of the customer will be captured and sentto UIDAI (Unique Identification Authority of India) for authentication of

identity and address proof. On successful authentication from UIDAI,the e-KYC service will act in response to display demographic detailslike [Name, year/date of birth, Gender, Address, Phone, email (ifavailable)] and photograph.Note:These facilities will offer ease and time saving to the customerfor opening accounts with SBI bank.RBI grants In-Principle banking licenses to IDFC and BandhanRBI has granted in-principlebanking licencesto Infrastructure Development Finance Company (IDFC) andmicrofinance lender Bandhan Financial Services Ltd.The declaration was made by RBI after nod from theElection Commission. These are the first licences to be awarded byRBI since 2003-04.

RBI constituted Bimal Jalan panel scrutinized the applications for

new bank licences.Note: The in-principle approval by RBI is valid for ONLY 18months.

During this 18 month-period IDFC and Bandhan Financial Services Ltdwill have to meet all RBI rules and guidelines in order to secure apermanent licence to start banking activities.

RBI extends deadline on capital norms under Basel IIIRBI extended deadline for banks to implement Basel III capital normsup to March 31, 2019, instead of March 31, 2018. With the extension,the RBI has also revised deadline for for meeting Minimum CommonEquity Tier 1 and Capital conservation buffer (CCB).

Note: i.Basel III is a comprehensive set of reform measures,

developed by the Basel Committee on Banking Supervision, to

strengthen the regulation, supervision and risk management of thebanking sector.ii.In terms of Basel III capital regulations issued by the RBI, theCapital Conservation Buffer (CCB) will be implemented from Marchend 2016 (against March-end 2015 earlier). Consequently, theRegulations will be fully implemented as on March-end 2019 (againMarch-end 2018 earlier).iii.Basel series of norms refer to a broad supervisory standardsformulated by Basel Committee on Banking Supervision (BCBS) toensure that financial institutions have enough capital on account tomeet obligations and absorb unexpected losses.

Kotak Mahindra Bank links current accounts to Twitter

The private lender bank, Kotak Mahindralaunched a new currentaccount product that will enable the account holders to undertake 2services viz. cheque book requisitioning, checking last fewtransactions, etc, and using their Twitter accounts.Note: i. For the activity of listed service, the bank customers have tuse the dedicated hashtags (#).ii.The account christened Jifi, also involves a host of loyalty-basereward points accrued from merchant transactions carried out usingthe account, referrals made and sharingand commenting oftweets/updates.Note:The bank has integrated all their systems with theircorebankingsoftware and can seamlessly throw up the required reinto the account holders Twitter handle as a direct message.

Bank of India (BoI) launched Instant Money Transfer (IMT) scheme

The Bank of India (BoI) launched an Instant Money Transfer(IMT)scheme and became the first state-run lender to allowwithdrawal of funds to individuals from its ATMs without an accounthe bank. In other words, the IMT scheme allows customers towithdraw cash without using either debt card or credit cardat

BoIs IMT-enabled ATMs.Chairman and Managing Director of Bank of India is V. R. Iyer.

RBI hiked trade related remittance limit from Rs.2 lakh to Rs.5 lakh pertransactionThe Reserve Bank of India (RBI) hiked the trade related remittanclimit from Rs.2 lakh to Rs.5 lakh per transactionwith immediateeffect and also increased the number of transaction handled byexchange houses.

The hike in per transaction is on the review of the permittedtransactions under the Rupee Drawing Arrangements (RDAs).Thchanges have been included in the Memorandum of Instructions foOpening and Maintenance of Rupee/ Foreign Currency Vostro

Accounts of Non-resident Exchange Houses.Note:Vostro account (also known as a loro account) is one in whthe domestic bank acts as custodian or manages the account of aforeign counterpart.Qatar based Doha Bank announced its First branch in MumbaDoha Bank announced that it will be opening its first branch atNariman Point in Mumbai in India. The branch in Mumbai will beopened as a full-fledged bank in May 2014.Note:Doha Bank is the largest private commercial bank in the statQatar. It was incorporated in 1978 and commenced its domestic aninternational banking services in Doha, Qatar in 1979.

Ms Lakshmi Swaminathan : Became first Indian President ofAdministrative Tribunal of the ADBMs. Lakshmi Swaminathan became the first Indian to becomepresident of Administrative Tribunal of the Asian DevelopmentBank (ADB) for three years. Ms. Swaminathan is the seventhpresident of the Tribunal. At present, she is a member of the Panel

Arbitrators of several public sector undertakings and NSE.BSE launched Institutional Trading Platform (ITP) on SMEThe Bombay Stock Exchange (BSE) launched an InstitutionalTrading Platform(ITP) to helpSmall and Medium Enterprises(SMEs) and start-up companies to list on the bourses without an InPublic Offer (IPO). BSE Ltd set up the BSE SME Platform as per thrules and regulations laid down by SEBI.

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