13. RBI places Lakshmi Vilas Bank under prompt corrective action

RBI placed Lakshmi Vilas Bank under PCA .The action has been taken owing to high level of bad loans, insufficient capital adequacy ratio, negative return on assets (RoA) for 2 consecutive years and high leverage. For FY19, the bank’s net NPA stood at 7.49%.United Bank, IOB, CBI,IDBI & UCO Bank are currently under PCA.

14. NSDL Payments Bank set to start operations

NSDL Payments Bank Ltd (NPBL), the wholly-owned subsidiary of National Securities Depository Ltd (NSDL), is set to start its commercial operations shortly. The depository received approval from the RBI to commence operations in October 2018.

Policy/Exchange rate & Reserve ratio Percentage
Repo rate 5.15%
Reverse Repo rate 4.90%
Marginal Standing Facility (MSF) rate 5.40%
Cash Reserve Ratio (CRR) 4%
Statutory Liquidity Ratio (SLR) 18.75%
Bank Rate 5.40%

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Insurance

News: Most Important
1. Airtel, Bharti AXA Life tie up to offer pre-paid plan with term cover

Airtel has tied up with Bharti AXA Life Insurance to offer pre-paid plan with

insurance protection cover for its customers. The product combines Airtel’s deep distribution reach with Bharti AXA Life’s expertise in insurance.

2. IRDAI working group to revisit norms on trade credit insurance

Insurance Regulatory IRDAI formed a 9-member working group to look into current regulatory framework, need for changes, risk management, claims handling, pricing, reserving working group on revisiting guidelines on trade credit insurance.

3. SBI Life signs corporate agency pact with Repco Home Finance

SBI Life Insurance has signed a corporate agency agreement with city-based Repco Home Finance Ltd to offer the company’s range of products to RHFL customers. This tie-up will enable every RHFL customer to meet their diverse insurance needs.

4. IDBI to launch co-branded credit card with LIC

IDBI Bank seeking a huge potential customer base in LIC’s 29 crore policyholders,

11.80 lakh agents, and 1.12 lakh employees to cross-sell, among others, credit cards and home loans has planned to launch a co-branded credit card with LIC CSL.

5. Can Fin Homes, Bajaj Allianz tie up

Bajaj Allianz General Insurance & Can Fin Homes Limited announced a corporate agency agreement for the distribution of the general insurer’s products. Bajaj will offer personal lines of insurance products, such as health, personal accident, travel etc.

6. Centre to infuse ₹12,000 crore in state general insurance firms

Public sector insurance companies — National Insurance, Oriental Insurance and United India Insurance ,are set to be infused with funds worth ₹12,000 crore to boost their capital base and meet regulatory norms.

7. NHA, IRDAI recommend measures to check frauds, data standardisation

National Health Authority and Insurance Regulatory and Development Authority of India have launched a report recommending best practices, common standards, collaborative measures and IT framework for data standardization and to check frauds.

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