Banking Current Affairs Jan 2016

To reconstruct the Indira Gandhi (Zoological) Park, World Bank will fund 20 million dollars
In a type of collaboration that has never occurred before, during January 2016s third week, World Bank offered an aid of about 20 million (US)
dollars for reconstruction and development of Indira Gandhi (Zoological) Park. The IGZP was destroyed during the occurrence of Cycle Hudhud
in Vishakhapatnam in the month of October, 2014. This is the first time World Bank is seen directly involved in saving a zoological park. The
coastal districts that will receive this funding in parts are East Godavari, Vizianagaram, Srikakulamand, and Vishakhapatnam.

NITI Aayogs Collaboration with IDFC

On January 17 2016, NITI (National Institution for Transforming India) publicized that it is working in collaboration with IDFC Bank to execute
a survey of the firms involved in manufacturing business. The objective is to scan the business regulations of enterprises in every single State and
Union Territory of India and address the obstacles faced by the businesses during its operations. The initiative will support the Make in India
initiative by comprehending the hurdles associated with different forms of businesses.

Reports from World Bank says India saves 1 Billion dollars annually by Using Aadhaar
On January 12th 2016, the World Bank made a remarkable announcement that almost 1billion dollars were saved by India annually by the usage
of Aadhaar. This information was being published in the World Bank official magazine WDR (World Development Report) 2016. The magazine
published was titled Digital Dividends and go released in the city of Washington DC. According to the reports presented in this issue, fuel
subsidy transfer to bank accounts by using Aadhar based DBT (Direct Benefit Transfer) resulted in savings of around 1 billion annually.
According to the report, it is also estimated that the Aadhar scheme has potential of saving more than 11 billion dollars per year if this DBT
scheme can be expanded to various other subsidiary schemes.

World Bank signs a new loan agreement with Union Government for NNW (Neeranchal National Watershed) Project
On January 14th 2016, a new loan agreement was signed between the World Bank and Union Government in Indias Capital. This major objective
of this agreement was funding for development and completion of the NNW (Neeranchal National Watershed) Project. This project will be
beneficial for all 28 Indian states that have implemented the project. However, some states including Maharashtra, Madhya Pradesh, Andhra
Pradesh, Gujarat, Chhattisgarh, Telangana, Rajasthan, Odisha and Jharkhand shall gain more from this project as they have implemented more
number of watershed projects across their states compared to others.

SBI launches first ever branch focussing on start-up businesses

Indias largest bank, State Bank of India (SBI), on 14 January 2016 launched and inaugurated Indias first ever bank branch focused entirely on
start-up. Called SBI InCube, this branch has been set up in Bangalore. The objective of this specialized branch will be to understand as well as
address the diverse banking requirements of Start-up Businesses. Apart from this, SBI also launched a new service called SBI Exclusif, aimed at
providing wealth management options and services to the affluent and growing sections of the nation.

RBI Deputy Governor- Urjit Patel

Urjit Patel was re-appointed as the Deputy Governor of RBI on January 08, 2016. He shall continue to serve as the Deputy Governor for three
more years. Patels career with RBI began on 11 January 2011, when he was selected as a member of monetary policy committee. He has become
the fourth Deputy Generall for RBI following SS Mundra, HR Khan and Gandhi. Due to his impressive performance in the earlier tenure, Patel
was reappointed for the same post. From 2005 to 2008, he was also part of Multi Commodity Exchange of India.

Raghuram Rajan given this years Central Banker Award

Raghuram Rajan, current Governor of the RBI (Reserve Bank of India) was honoured with one of the most prestigious banker awards, the Award
for Central Banker of the year 2016 (Asia Pacific and Global). Monthly Publication of The financial Times Group, The Banker, provided the
award. The renowned Central Banker award, which is presented every year to leaders and thinkers in the financial sector, celebrates the people
who have managed to stabilise the economy of the country and stimulate growth. Raghuram Rajan was born on February 3 rd, 1963 and overtook
as the governor of RBI on September 5th, 2013.

New Credit-Guarantee Fund approved for Mudra Loans by Union Cabinet

On 6th January 2016, Union Cabinet gave a green light for creating Credit-Guarantee Fund designed for MUDRA (Micro Units Development
Refinance Agency) loans. Expectations are that the fund would guarantee loans worth 1 lakh crore or more to small and micro units at its first
instance. This scheme is sanctioned under the PMM Yojna and will be effective from 8th April onwards. The main objective of the fund is
reducing credit risks to NBFCs, MFIs and banks that are MLIs. Also, the guarantee will be provided based on portfolios.

State Bank of Travancore gets INR 1 Crore penalty

After violating instruction, the State Bank of Travancore was imposed with a penalty of INR 1 Crore on January 4 2016, by the Reserve Bank of
India. According to the justification given by the RBI, SBT (State Bank of Travancore) had failed to meet the regulatory compliances which were
imposed by the RBI from time to time. The matter has also been forwarded to CRILC (Central Repository of Information on Large Credits) as the
body was formed with an objective to look into the aforesaid matter.

UG and World Bank sign Financing Agreement to educate minorities

A Financial agreement worth US $ 50 million was signed between the Union Government and the World Bank for the purpose of educating and
training minorities. The key person in this deal were Raj Kumar and Michael Haney, who serve as the Joint Secretary for the DEA (Department of
Economic Affairs) and World Banks Operations Adviser in India, respectively. Under this agreement, the credit forwarded would be matured at
25 years along with a grace period of 5 years. The overall budget of this agreement is US $100 million, 50% of the amount would be available in
form of credit from World Bank and the remaining 50% would be funded from Union Budgets. The project will come to end on October 31,
2021.

RBI releases report on Deepak Mohanty Committee

Medium-term path on financial inclusion report by Deepak Mohanty Committee was released by the RBI (Reserve Bank of India) on December
28 2015. The committee was framed on July 15 2015 with the objective of working-out 5 year action for financial inclusion. Some of the notable
recommendations of this committee are- development of Sukanya Shiksha, linkage of Aadhar to credit account of individuals, eligibility for Gold
Kisan Credit Card (KCC), credit guarantee for MSEs (micro and small enterprises), development of SLBCs (State Level Bankers Committees),
etc. There were also other recommendations as well which included the provision of Government social cash transfer, governance system and
improving credit infrastructure.

Deadline extended to 30th June 2016 for exchanging notes issued earlier to 2005

The Reserve Bank of India (RBI) has extended the date for exchanging notes issued before 2005 by 180 days (6 months). The new date of
extended deadline is 30th June 2016. The RBI in Mumbai took the decision and issued the same through a statement. The exchange value of the
currency would be given to the bearers in full. The date on currency notes can be found at the backside of the notes, towards the bottom.
Withdrawal of notes prior to 2005 will allow the economy to overcome the problem of fake currency to a certain extent.

Banking Current Affairs February 2016

YES Bank and Smartbox pair up to reduce delivery returns
On February 9 2016, YES Bank entered into a deal with Smartbox to offer a better solution to the e-Commerce Industry. The new solution will be
known by the name of Automated Parcel Delivery Terminals which will make the payment system much simpler for the e-Commerce unit
owners. Options such as CSOD (Card Swipe on Delivery) will allow the system to become transparent and the burden of handling cash will also
be resolved.

SAARC Swap extended by RBI

The Reserve Bank of India made a promising impact in the SAARC Swap Arrangement on February 23 2016 by extending the same till
November 14 2017. The current valuation of the SAARC Swap Arrangement is USD 2 billion. The objective behind this move was to enhance
the cooperation between SAARC nations and create a financial stability among all member nations. The arrangement was initially started in
November 15 2012 and the objective was to offer financial support to countries such as Sri Lanka, Pakistan, Afghanistan, Maldives, Bhutan, etc.

New dimension of the banking sector

The banking sector in India has been making a gradual progress. At the moment. There are 43 foreign banks, 26 public sector banks, 1589 urban
cooperative, 93550 rural cooperative banks and 20 private sector banks. The banking industry of India has assets worth USD 1.8 trillion and 70%
of the figure relates to the contribution of public sector. The current progress will make India as the 5th largest banking industry by 2020.

UG approves Constitution of Banks, BBB

Narendra Modi, PM of India, gave approval for development of BBB (Banks Board Bureau) on February 28 2016. The BBB will start its
functioning from April 1 2016. The objective behind this establishment is to enhance the governance of the PSB (Public Sector Banks). Some of
the key members in this unit are Anil K Khandelwal, Rupa Kudwa and HN Sinor. Focus on merger and acquisitions will also be an integral part
of the BBB.

Banking Current Affairs March 2016

iWork@Home program by ICICI bank
ICICI bank launched a new initiative on March 7 2016 under the name iWork@Home, which allows existing employees (women) of the company
to work from home. The campaign intends to make working easier for women and have a greater employee retention rate through offering this
flexibility.

World Bank offers $1500 million for Swachh Bharat

On March 23 2016, the World Bank offered a support of USD 1500 million for SBM(G). The offer has been approved by the Government led by
Narendra Modi, the Prime Minister of India. Some of the key objectives which would be satisfied with this aid are- reducing area under open
defecation, enhancing SLWM (Solid & Liquid Waste Management) in rural areas, etc. The fund will help the projects to get kickstarted and be
implemented with complete effectiveness by 2019.

Revised Framework issued by RBI for Rehabilitation and Revival of MSMEs

On 17th March 2016, the RBI (Reserve Bank of India) issued revised and reviewed framework for the rehabilitation and revival of MSMEs
(Medium, Small and Micro Enterprises). This new Framework will be superseding the previous guidelines of RBI on RSMSMEs (Rehabilitation
of Sick Micro and Small Enterprises) issued in the year 2012. The new framework will be applicable for all MSMEs with upper loan limit of
rupees 25 crore and will also include accounts under MBA (multiple banking arrangement) or consortium. The SMAs (Special Mention Account)
has been classified under three categories for identification of emerging stress across the MSMEs accounts, especially in NPAs (Non-Performing
Assets). These three categories are SMA-0, SMA-1 and SMA-2. The first category includes interest payment or principal with less than 30-day
overdue but account indicating incipient stress signs. SMA-1 accounts are those wherein the interest payment or principal is 31-60 days overdue.
The SMA-3 accounts are those wherein the interest payment or principal in between (61-90) days overdue.

$100 million loan to Jordan for creating employment from WB

On March 27 2016, the World Bank agreed to offer Jordan with a financial assistance of USD 100 million as an aid of create employment
opportunities for the natives as well as Syrian refugees. The arrangement of loan will attract the lowest rate of interest which usually is imposed
while facilitating loans to countries who are poor. The President of World Bank, Jim Yong Kim personally made this announcement during his
visit to Jordan with UN General Secretary Ban Ki-moon. Since the start of conflict in Syria in 2011, more than 4.8 million Syrians have fled their
motherland and have taken shelter in the nearby areas. Jordan currently holds about 6, 40, 000 Syrians.

Banking Current Affairs April 2016

RBI cut RR (repo rates) by 0.25% as announced during the first Bi-Monthly MPS (Monetary Policy Statement) 2016-17
On 5th April 2016, the RBI (Reserve Bank of India) cut RR (repo rates) by 0.25% as announced during the first Bi-Monthly MPS (Monetary
Policy Statement) 2016-17. Under The LAF (Liquidity Assessment Facility) the policy RR was slashed by 25 base points (from 6.75 per cent to
6.5 per cent), which was lowest in the last 5 years. The minimum CRR (Cash Reserve Ratio) daily maintenance was also slashed from 95 to 90
(per cent) from 16th April onwards.

First ever fully Start-up dedicated Bank (Private Sector) in India opened by RBL
On 19th April 2016, first ever fully Start-up dedicated Bank (Private Sector) in India opened. RBL bank opened its first ever branch dedicated
entirely for start-ups. The inauguration of this branch was done at Koramangala area, Bangalore by noted entrepreneur as well as former UIDAI
(Unique Identification Authority of India) chairman, Nandan Nilekani. This move came after the SBI (State Bank of India) opened its first startups dedicated branch in Bangalore. The objective of this branch will be to assist entrepreneurs in their business by offering them various tailormade banking products helping their end-to-end needs. RBL was founded in the year 1943 and is one of oldest running PS (private sector) bank.

Banking Current Affairs May 2016

ICICI Bank signed MoU with the NDB (New Development Bank) of BRICS
On 6th May 2016, ICICI Bank signed a MoU (Memorandum of Understanding) with the NDB (New Development Bank) of BRICS. The
objective of this MoU was establishing strategic partnership in areas such as co-financing, bond issuance, human resources and treasury

management. NDB, which acts as a multi-lateral development bank was established by BRICS states (Brazil, Russia, India, China and South
Africa).

Registration Certificate of 4 NBFCs cancelled by RBI

On 10th May 2016, the registration certificates of 4 NBFCs (Non-Banking Financial Companies) were cancelled by the RBI (Reserve Bank of
India). The certifications were cancelled on powers given to the RBI under the section 45-1A (6) as per the RBI Act, 1934. The 4 NBFCs whose
registration certificates were cancelled were) GITC (Guide Investments and Trading Co. Pvt. Ltd), NTPL (Novoflex Tradecom Private Limited),
NEPL (Neelanjali Engineering Private Limited and EVPL (Enol Ventures Private Limited). Following this, RBI is also planning to tighten the
NBFC norms such as requirement of a stronger and reliable capital base.

RBI to issue 1000 Rupees Bank-notes to be issued by RBI with R as inset letter
On 9th May 2016, the RBI (Reserve Bank of India) announced the issuance of 1000 rupees notes in the series Mahatma Gandhi-2005. Both
number panels of these notes will contain R as inset letter. Like all other banknotes, these notes will also feature all security measures such as
ascending numerals size, enhanced identification mark and bleed lines. They will carry Raghuram Rajans signature, who is at present the
Governor of RBI.

World Bank initiates PEF (Pandemic Emergency Financing) Facility

On 21st May 2016, the WBG (World Bank Group) initiated the PEF (Pandemic Emergency Financing) Facility with the objective of protecting the
poorest nations against various dangerous pandemics. The PEF has become a fast-disbursing and innovative global financing process. It aims to
enhance both national and global responses to various future outbreaks having pandemic potential. It was designed and built in assistance with the
WHO (World Health Organization) as well as top private sectors with the objective of introducing new rigorous policies into the financing world.
The PEF works as a window of insurance combining reinsurance market funding with the World Bank-proceeds.

Banking Current Affairs June 2016

Contest for logo & tagline design launched by India Post for IPP (India Post Payments) Bank
On 10th June 2016, a contest for logo & tagline design was launched by India Post for IPP (India Post Payments) Bank. The contest was launched
on the website MyGov. On 1st June 2016, Approval was given by the Union Cabinet for setting up IPPB (Indian Post Payments Bank) under the
Postal Department to improve the financial included across India. The objective of this context is to involve citizens across the nation in
designing an important DNA for the bank as well as promotion of the bank.

SBI (State Bank of India) floats IT-ISF (IT Innovation Start-up Fund) for assisting start-ups in the fintech space
On 16th June 2016 SBI (State Bank of India) announced the IT-ISF (IT Innovation Start-up Fund) for assisting start-ups in the fintech space. The
bank will be floating Rs. 200 crore in this fund. Each registered firm will get up to Rs. 3 crore funds for the promotion of their innovations with
the use of technology in the financial services. These fin-tech start-up firms are disrupting the existing financial business models by delivering
low cost services with the use of technology.

World Bank released IDU (India Development Update) 2016

On 20th June 2016 World Bank released IDU (India Development Update) 2016. This is a mid-year edition. It reported that the growth and
expansion of Indian economy was faster in the FY2016. Demand from the urban households as well as public investment lifted the economy in
spite of stalled key growth sectors. It also reviewed the present challenges across the financial sector in India. Service and manufacturing sectors
performed well creating urban jobs. On the other hand, household consumption across rural areas, private investments as well as exports
performed negative

Banking Current Affairs August 2016

RBI announces ISS (Interest subvention scheme)
On 25th August 2016, RBI (Reserve Bank of India) announced ISS (Interest Subvention Scheme). It is a scheme for women SHGs (self-help
groups). All co-operative and commercial banks will provide loans to SHGs from rural areas. The interest will be at 7 % per annum. Loans will
be received for year 2016-17. It will be under DAY-NRLM (Deendayal Antyodaya Yojana National Rural Livelihoods Mission). The scheme is
applicable across 240 Indian districts.

Banks introduce UPI (Unified Payments Interface)

On 25th August 2016, 4 banks introduced UPI (Unified Payments Interface). These were Axis Bank, Federal bank, UBI & BOM. This app will
help in making digital payments. The app was made open to customers after NPCI approval. NPCI (National Payments Corporation of India)
issued letters. In the new 2-3 days, 19 other banks will be using this app. The app is available on the GPS (Google Play Store). Initially, it will be
available for android customers. Apples iOS versions will be available after 6 months. UPI is a NPCI product. It is a move towards the objective
of cashless economy. Account holders will be able to receive & send money by virtual payment system. Ex-RBI Governor Raghuram Rajan is the
mastermind behind this interface. He initiated the idea which came into action today.

SBI board approves merger of five associate banks

On 18th August 2016, the board of SBI (State Bank of India) approved this merger of its 5 associate banks & BMB. The banks & BMB (Bharatiya
Mahila Bank) will be merged with the SBI main bank. The other 5 banks are SBBJ, SBH, SBM, SBP & SBT. The share-swap ratio for 3 listed
subsidiaries & BMB were also finalized. These subsidiaries are SBBJ, SBM & SBT. With this merger, an asset of INR 37 lakh crore will be
created. This merged unit will be serving 50 crore customers. It will have 165000 branches. It will also have 191 FO (foreign offices) across 36
nations. With this merger, SBI will be among top fifty banks across the globe.

IPP Bank incorporated

On 17th August 2016, the IPP (India Post Payments) Bank was incorporated. It received CI (Certification of Incorporation) from RoC, Corporate
Affairs Ministry. It is under the 2013, Companies Act. It is the 1st PSU (Public Sector Undertaking) under the DoP (Department of Posts). Also,
there will be a Board for the IPP Bank Limited. 40% of Indias population outside the formal banking purview will be benefitted. There will be
650 branches, post offices linked & alternative channels. These will be equipped with modern technologies such as PoS/mPoS, ATMs etc. The
branches will also have digital payments availability. New opportunities of employment will be generated. It will also help in spreading financial
literacy.

RBI launched Sachet portal

Governor of RBI (Reserve Bank of India) Raghuram Rajan launched Sachet Portal. It was launched on 4 th August 2016. The objective is to curb
illegal collection of money. The portal link is sachet.rabi.org.in. It will help individuals in attaining information regarding various entities. These

entities can be related to accepting deposits, lodging complaints. It will also give information on illegal deposit acceptance by dishonest entities.
The website will be presented in vernacular languages. It will benefit people across different place of the nation. It will keep a check in activities
related to unlawful collection of money. There will be space for lodging complaints in the portal.
RBI forms TRC (Tarun Ramadorai Committee)
On 4th August 2016, RBI (Reserve Bank of India) formed TRC (Tarun Ramadorai Committee). This committee will look into various scenarios
related to Indian household finance. Tarun Ramadorai will chair the committee. He is a Financial Economics professor from Oxford University.
The committee will be represented by many financial regulators. These will be SEBI, IRDAI, PFRDA and RBI. The objective is to benchmark
current Indian household finance market across other world markets. It will also identify significant areas for change and growth. It will evaluate
demands of the Indian households in the financial market scenario. It will also look into financial market deviations. The committee will submit a
report by July 2017.

Dinesh K. Khara elected as SBI (State Bank of India) MD

On 9th August 2016, Dinesh Khara was selected as SBI (State Bank of India) MD (Managing Director). He will work for SBI for three years. This
period is extendable to another 2 years based on performance. He was appointed by the ACC (Appointments Committee of Cabinet). Khara is
presently acting as CEO & MD of SBI FMPL (Funds Management Pvt Ltd). Similarly, Ashok K Garg was elected as ED (Executive Director) of
BOB (Bank of Baroda). Raj K. Verma was elected as ED of UBI (Union Bank of India). Gopal M Bhagat is appointed as Corporation Bank ED.
Himanshu Joshi is appointed as OBC (Oriental Bank of Commerce) ED. SBI is government-owned corporation.

RBI released 3rd Bi-monthly MPS 2016-17

RBI released its 3rd Bi-monthly MPS (Monetary Policy Statement) 2016-17 on 9th August 2016. The RR (repo rate) under the LAF (Liquidity
Adjustment Facility) is kept same at 6.5 %. Various changes were announced during this policy. The RR was kept same at 6.5 %. The reverse RR
was also unchanged at 6.0 %. The CRR was also unchanged at 4 % of NDTL. The MSF (Marginal Standing Facility) rate was kept at 7.0 %.
Bank Rate was kept at 7.0 %. Economy is varied in emerging markets. In Russia & Brazil, recession is gradually decreasing. WTC was sluggish
during 2016 first half.

Banking Current Affairs September 2016

Registration certificate of 5 NBFCs cancelled
On 8th September 2016, Registration certificate of 5 NBFCs (Non-Banking Financial Companies) were cancelled. The cancellation came from
RBI (Reserve Bank of India). As per the RBI Act, 1935, these institutions are not allowed any business transaction. The companies are Simco
consultants, Lunkad Securities & Cystal Investment. Other two are Jaya Investments & Rajvir Marketing.

Banking Current Affairs October 2016

Start-ups can raise upto USD 3 million
From 27th October 2016, startups are permitted to raise funds by ECBs. The permission was given by RBI (Reserve Bank of India). Funds can be
raised via ECB (external commercial borrowings). The minimum maturity period will be 3 years. It is expected to boost innovation & promote
job creation. Borrowing fund to be denominatedinto INR or any other convertible currency.As per RBI, a lender should be of Indian origin.
He/she should be a FATF member. ECB facilitates foreign money access by Indian entities & PSUs. Fund usage is not subjected to restriction or
cost ceiling. Overseas subsidiaries of banks and joint ventures are not applicable. ECB will facilitate foreign money access by Indian PSUs &
corporations.
Highlights
Startups are permitted to raise funds by ECBs as approved by RBI
Funds can be raised via ECB (external commercial borrowings)

India & World Bank sign agreement

On 21st October 2016, India & World Bank sign agreement. World Bank provided a USD 650 million loan to India. This was for EDFC-III
(Eastern Dedicated Freight Corridor-III) project. Northern & Eastern Indian industries will benefit from this. These industries rely on RNT
(railway network transportation) for exports & material inputs. They also rely for commodities distribution. Railway travelers will also benefit
from decongested passenger lines. DFCCIL (Dedicated Freight Corridor Corporation of India Ltd) will develop this project. It will also help in
job creation across eastern & northern Indian regions. Project will be in Phase-I & Phase-II.
Highlights
India & World Bank sign agreement worth USD 650 million on 21st October 2016
Agreement was for EDFC-III (Eastern Dedicated Freight Corridor-III) project.
Northern & Eastern Indian industries as well as railway travelers will benefit from this project

Banking Current Affairs November 2016

Conventional Banks to consider Islamic Window
RBI has proposed Conventional Banks to consider Islamic Window. The proposal was put forward to Finance Ministry by RBI . It is a stepping
move towards considering introduction of Islamic Banking across the nation. Government & RBI are exploring possibility of introducing Shariabased Foundation. These sections remain outside banking circuit cause of religious reasons. Information was made public via RTI (Press Trust of
India) after an RTI was filed. Government may introduce Islamic banking in gradual manner. IB is an Islamic Law (Sharia) based financial
institution. All dealings, investment focus & transactions are derived via Sharia Law.
Highlights
RBI has proposed Conventional Banks to consider Islamic Window
Government & RBI are exploring possibility of introducing Sharia-based Foundation

New measures to be adopted for easing demonetization policy

It has been announced that new measures will be adopted for easing demonetization policy. Union Government made the announcement on 17 th
November 2016. On 8th November, INR 500 & INR 1000 rupee notes were banned by PM Narendra Modi. Farmers are allowed to draw max INR
25000/week from KYC accounts. KCC (Kisan Credit Cards) will also have this facility. Traders with APMC Market registration can draw INR
50000/week via their KYC accounts. This will ease paying wages & facilitating easy unloading & loading activities. Last day for CIP (Crop
Insurance Premium) payment extended by fifteen days. Families having weddings can withdraw maximum INR 250000 in cash. Exchange limit
of old notes has been reduced to INR 2000. SBI and Public Oil Companies will dispense INR 2000/day per person. Initially, 2500 PPs will have
this facility nationwide. IOC (Indian Oil Corporation), Hindustan Petroleum & Bharat Petroleum will have this facility.

Highlights
new measures will be adopted for easing demonetization policy by government
These include relaxation of money withdrawal for farmers, mandi traders & families with wedding

Withdrawal of Rs. 500 & Rs. 1000 bank notes: All you need to know
PM on 8th November announced ban on Rs. 500 & Rs. 1000 notes countrywide. People in possession of the notes are required to deposit them in
the bank account. They can also exchange the amount at any bank branch. Objective was curbing black money and stop fund to terrorist. Few are
the important points to keep in point.
Bank notes of Rs. 1000 & Rs. 500 cannot be further used for any exchange. You can exchange these at any RBI office (19 offices), at any Head
PO (Post Office), Sub-post office as well as at any bank branch
No money will be deducted and people will get full value of the notes deposited
Maximum cash allowed to an individual will be INR 4000. Rest will be given via bank credit. The objective of the scheme does not provide the
facility. In case a person requires more than INR 4000, they can use electronic means for payment. These can be mobile wallets, internet banking,
debit, credit, IMPS, cards etc.
Till 18th November, people can withdraw maximum INR 2000 from any ATM. From 19th November onwards, withdrawal limit will be INR 4000
per day.
Individuals can withdraw cash either against cheque or withdrawal slip. Limit is INR 10000 per day & INR 20000 in one week. This will also
include ATM withdrawal.
The scheme of exchanging and depositing bank notes is till 30th December 2016. After that, few RBI offices will have the facility. Individuals will
be providing necessary documents for the deposit.
For people who are not present in India, they can authorize another people by writing to deposit on their behalf. Identity proof will be required.
NRI can deposit banknotes to their NRO account. Foreign tourists can exchange bank notes of maximum INR 5000 denomination. Exchange will
be available at AECs (airport exchange counters). For further information, you can visit sites such as finmin.nic.in and www.rbi.org.in
In case of any problem in exchange or deposit individuals can approach RBI control room. The number is 022-22602201/22 & 22602944
Highlights
Bank notes of Rs. 1000 & Rs. 500 cannot be further used for any exchange
No money will be deducted and people will get full value of the notes deposited

New Rs 500 and Rs 2000 denomination notes introduced

On 8th November 2016, RBI introduced new Rs 500 and Rs 2000 denomination notes. These notes come with newer sizes & improved features.
The designs have been made friendly towards visually-impaired. Thus, all sections of people will be able to access it easily. INR 2000 notes are
known as Mahatma Gandhi (new) Series. On the reverse, the note has Mangalayan (Low-cost mission to Mars). Its base color is magenta. MK
Gandhi portrait is in the centre. Micro letters 2000 & RBI are on the banknotes left side. It also has the logo of Swachh Baharat with slogan.
The 500 Rs. notes are grey in color.
Highlights
RBI introduced new Rs 500 and Rs 2000 denomination notes
The note has features such as Mangalayan and Swachh Bharat logo and slogan
The 500 Rs. note is grey in color

Deposits above Rupees 2.5 lakh will face penalty, tax mismatch
Government on 9th November 2016 announced ban on 500 and 1000 rupees notes. Also, cash deposits of more than INR 2.5 lakh will attract
scrutiny. If mismatch found, it will attract tax and penalty. This is as per the 40 days deposit window announced by Indian Government. The
penalty can go up to 200 percent in income mismatch case. Objective is to curb people from converting black money to white one. Any deposit
above INR 2.5 Lakh will be flagged off and ministry will get report. Matching will be done by tax department.
Highlights
Cash deposits of more than INR 2.5 lakh will attract scrutiny.
Any deposit above INR 2.5 Lakh will be flagged off and ministry will get report.
Matching will be done by tax department

Tender of Rs. 500 and Rs. 1000 Currency banned by Government

From midnight of 8th- 9th November 2016, 500 and 1000 rupee notes will cease. Narendra Modi made the announcement on 8 th November 2016.
The message was given nationwide through a special televised address. People possessing the notes are required to deposit the same in post
offices & bank accounts. The last date is 30th December 2016. Timeline is also extended till 31st March 2017 for those unable to deposit in time.
PM also announced introduction of new notes of denomination 500 & 2000 soon. Objective behind this decision was curbing black money.
Highlights
500 and 1000 rupee notes will cease from 9th November onwards
People possessing these notes are required to deposit the same in post offices & bank accounts

Banks to share frauds details of INR one crore & above to CVC
PSBs to share frauds details of INR one crore & above. The reports have been asked by CVC (Central Vigilance Commission). Till now, only
RBI (Reserve Bank of India) got these reports. All modus operandi related to alleged frauds needs to share with CVC now. The objective is
ensuring actions to prevent similar cases of being repeated. Monthly meetings will be set with RBI officials, banks and CBI for monitoring probe.
This will include bank frauds with 50 crore plus monetary claims.
Highlights
PSBs (Public Sector Banks) to share frauds details of INR one crore& above
All reports related to alleged frauds needs to shared with CVC now