Here is today’s important banking news to keep you updated and help you prepare for IBPS and other bank exams:
Important Banking News: Post Bank Likely to Handle DBT Schemes
- The entire direct benefit transfer (DBT) scheme for distribution of government subsidy is likely to be handled by Post Bank – the new payments bank which will be under the Department of Posts.
- “Earlier initial capital approval sought for setting up Post Bank was about Rs 300 crore which has been increased to Rs 800 crore as there is proposal now that entire DBT scheme should be handled by it as well as saving accounts currently handled by DoP should also be moved under it,” an official source told PTI.
- The Public Investment Board (PIB) will consider this proposal in its meeting on January 15 and then send its recommendation to Cabinet Committee on Economic Affairs for final approval, the official said.
- The Reserve Bank of India has granted payments bank permit to the postal department, which has 1.55 lakh branches across the country and already provides financial services.
- Under the DBT scheme, the government directly transfers subsidies in to bank accounts of people eligible for it. Subsidies of around 35-40 government schemes are covered under it including that provided on domestic LPG connections.
- As per official data, till December 27, around Rs 40,000 crore was directly reaching the beneficiaries through various schemes.
- As many as 40 international financial conglomerates, including World Bank and Barclays, have shown interest to partner with Postal Department for the payments bank.
- The DoP has shortlisted six consultants including Mc Kinsey, KPMG, Ernst and Young and PricewaterhouseCoopers.
- The postal department expects to finalise a consultant for setting up of payment banks by end of this month.
- At the end March 2015, the DoP housed around 20 lakh saving accounts which held total deposit of about Rs 47,800 crore. The payment bank wing of DoP is also proposed to manage these accounts.
- As per RBI guidelines, payments banks would offer a limited range of products such as demand deposits and remittances.
- They will, however, not be allowed to undertake lending activities and will initially be restricted to holding a maximum balance of Rs 1 lakh per individual customer.
- They will be allowed to issue ATM or debit cards as also other prepaid payment instruments, but not credit cards.
Important Banking News: Pushan Mahapatra Appointed as SBI General Insurance MD, CEO
- SBI General Insurance has ap pointed Pushan Mahapatra as its new managing director and chief executive officer.
- SBI General Insurance is a joint venture between State Bank of India and Insurance Australia Group and the post was vacated after Bhaskar J Sarma retired on December 31, 2015.
- Mr Mahapatra, who took over the reins on January 1, has been associated with the private sector non-life insurance firm since July 2014 as general manager and chief operating officer.
- “At present, the insurance industry is undergoing a transformation in terms of capital inflow, digitalisation and risk modelling. It will be exciting to see how we can tap these opportunities to ensure the continued growth of the sector,” Mr Mahapatra told PTI.
- He will head the company’s growth across State Bank of India’s network of 19,000 branches, SBI General Insurance’s 90 branches and an additional network of 350-plus satellite branches.
- The company’s gross written premium grew by 28 per cent as of November 30, 2015 at Rs 1,153 crore from Rs 899.5 crore a year ago, which was more than the industry growth of 12.3 per cent during the period.