RBI to revise leverage ratio for banks from April 1, 2015

The Reserve Bank of India revised Leverage Ratio under Basel III norms for banks. The revised rates will be implemented from April 1, 2015.

The leverage ratio (for banks) under the Basel III  is defined as their capital measure divided by their exposure measure, with this ratio expressed as a percentage.

Currently, the banking system is operating at a leverage ratio of more than 4.5 per cent. The final minimum leverage ratio will be stipulated taking into consideration the final rules prescribed by the Basel Committee by end-2017.

In the run-up to December-end 2017, Reserve Bank will monitor individual banks against an indicative leverage ratio of 4.5 per cent.

The banks will be  required to make disclosure of the leverage ratio and its components  on or after April 1.

The Basel III regulatory framework is a set of reform measurements aimed at strengthening regulation, supervision and risk management in banking sector. In India Basel III norms are to come into force by 31^st March 2019.

You can read all about Basel norms, here.

Arvind Panagariya appointed as the Vice Chairman of Niti Ayog

Prime Minister Narendra Modi appointed Indian-American economist Arvind Panagariya as the first vice chairman of Niti Aayog. Niti Ayog came into being on January 1, 2015 and replaced the 65-year old Planning Commission.

ICICI Bank launched India’s first contactless Debit and Credit card

Industrial Credit and Investment Corporation of India (ICICI) Bank has launched India’s first contactless debit and credit cards. These cards use the near-field communication technology, enabling one to make payments by just waving the card near merchant terminals instead of swiping.

Centre splits Chairman & MD posts, appoints Chiefs for 4 PSU Banks

R.Koteeswaran was named as MD and CEO of Indian Overseas Bank.
P Srinivas was named as MD and CEO of United Bank of India.
Animesh Chauhan was named MD and CEO of Oriental Bank of Commerce.
Kishore Kumar Sansi was named MD and CEO of Vijaya Bank.

SEBI proposes restrictions on wilful defaulters

The Securities and Exchange Board of India (SEBI) recommended restrictions on wilful defaulters from accessing equity and debt markets.

Companies in which a promoter, director or a group entity is declared a wilful defaulter will not be allowed to raise money through equity, debt, or non-convertible redeemable preference share issuances. But, these wilful defaulters can raise money through a rights issue or a private share sale to institutional investors.

Wilful defaulters include companies or individuals who deliberately avoid repayment of dues to lenders despite having the funds.

Union Cabinet approved 2G telecom spectrum auction

The Union Cabinet approved the auction of 2G telecom spectrum that is targeted to fetch around 64840 crore rupees from the sale.

The government will sell 380.75 megahertz of 2G spectrum in three bands- 800 MHz, 900 MHz and 1800 MHz.

Punjab National Bank raises interest rate on FDs by up to 0.5%

PNB revised interest rate on Fixed deposits by up to 0.5 per cent on various maturities.  The new rate would be effective from January 8,2015.

Consumer durable firms hike prices by up to 5 per cent

Consumer durable firms, including Haier, Whirlpool, Panasonic, Godrej Appliances and Daikin, are increasing the prices of their products by up to 5 per cent.

The two major factors that led to price hike were:  2 per cent increase in excise duty and weakening of the rupee against the dollar.

The government had decided against extending excise duty concessions given to the consumer durables industry from December 31. The excise duty on the sector is now at 12 per cent up from 10 per cent.

Reserve Bank of India relaxes External Commercial Borrowings (ECB) norms

RBI has relaxed ECB norms under which authorised money changing banks had been allowed to create a charge on securities.

Excise duty on petrol, diesel hiked

The government  raised excise duty on petrol and diesel by Rs. 2 per litre each. The increased rates of excise duty will be effective from January 2, 2015.

Government to take up 36 FDI proposals on January 22, 2015

The first meeting of the Foreign Investment Promotion Board this year will be held on January 22, 2015. 36 FDI proposals will be considered including those of Indian Energy Exchange, Viacom 18 Media, Glenmark Pharmaceuticals and Johnson & Johnson.

Shareholders approve merger of Kotak- ING Vysya Bank

Kotak Mahindra Bank shareholders’ approved merger of Bangalore based ING Vysya Bank with itself. Employees of ING Vysya Bank however, are opposing the merger as they feel that the bank should merge with a public sector lender. They are also demanding for a tripartite agreement with Kotak Mahindra.

Google Capital invests in CommonFloor.com

Also See: Pradhan Mantri Jan Dhan Yojna– Important Points

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