Banking Awareness------>2

 RBI hiked trade related remittance from 2 to 5 lakh rupees per transaction: RBI decided to increase the
limit of trade transactions on a review of the permitted transactions under the Rupee Drawing
Arrangements (RDAs). These changes have been included in Memorandum of Instructions for Opening
and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses. Earlier, in
2009 RBI rationalised norms on maintenance of rupee/foreign currency Vostro accounts of non-resident
Exchange Houses. It was in view of the increased number of transactions being handled by the Exchange
Houses and the rapid developments in the communication facilities.
 SBI Life to appeal against the order of IRDA to refund 275 crore rupees: SBI Life Insurance Company on 12
March 2014 announced that it will appeal against the order of Insurance Regulatory and Development
Authority (IRDA) to refund 275.29 crore rupees to the policy holders of Dhanaraksha Plus Limited Premium
Paying Term (LPPT).IRDA on 12 March 2014 charged SBI Life of violation of various norms by miss-selling
the policy and payment of higher commission to agents. SBI Life has been asked to refund the amount
within six months (i.e. September 2014).
 Committee set up to assist banking sector to apply Basel III norms: Reserve Bank of India (RBI) announced
to set up a committee under the Financial Stability and Development Council (FSDC). The committee
would set the guidelines for the banking sector to comply with Basel-III capital norms.
The decision was taken at a sub-committee meeting of FSDC. The meeting was chaired by Reserve Bank of
India (RBI) Governor Raghuram Rajan.
Main highlights are as follows
 The implementation of the non-legislative recommendations of the Financial Sector Legislative
Reforms Commission (FSLRC)
 The issue of setting up a repository for providing investors with a single view of all financial asset
classes.
 The ways to suggest the capital requirements of the banking sector over the next five years in view of
the Basel-III regulations and requirements for supervisory capital.
 Issues of greater harmonisation of regulations across sectors for similar activities were also taken up.
 Also, it discussed about ways for setting up an effective resolution regime for the financial sector.
About Basel III norms: A comprehensive set of reform measures designed to improve the regulation,
supervision and risk management within the banking sector. The Basel Committee on Banking Supervision
published the first version of Basel III in late 2009, giving banks approximately three years to satisfy all
requirements. Largely in response to the credit crisis, banks are required to maintain proper leverage
ratios and meet certain capital requirements.
 Federal Bank launches transit card for Bangalore Metro commuters: federal Bank launched its Namma
Metro Transit-cum-Debit Card in partnership with Bangalore Metro Rail Corporation Ltd (BMRCL). The
Flash Transit-cum-Debit Card will entitle cardholders to discounts of 15 to 21 per cent on fares. The bank
has also made arrangements for easy recharge Federal Bank Namma Metro Card is a Visa branded Debit
cum Transit card with Rs 75,000 shopping and Rs 75,000 ATM withdrawal limits across the country.
 Federal Deposit Insurance Corporation sued 16 world largest banks: Federal Deposit Insurance
Corporation filed a law-suit on 16 of the world’s largest banks. These global banks broke certain swap
contracts and separately planed to rig the labor rate to which the contracts were signed.