HDFC Bank Launched Digital Banking Services for SME Clients
- The HDFC Bank launched digital banking service for Small and Medium Enterprises (SME) on June 30, 2016. The new service would allow clients access full bouquet of services instantly on 24×7 basis over personal computers or mobile phones.
- The HDFC Bank provides banking services to about 100000 SMEs, out of a total universe of 36000000 SMEs across India. HDFC Bank’s total SME book stood at Rs 70000 crore.
- With the launch of this service, SMEs will be able to get swifter approval of loans, letter of credit, bank guarantees once the necessary documentation has been provided.
SBI Launched Rs 200 Crore Startup Fund
- To support startups in the financial technology (fintech) space, State Bank of India (SBI) set-up a ‘IT Innovation start up Fund’ on June 16, 2016.
- The SBI opened a startup branch called InCube in Bengaluru. It functions as a single point of contact for startup account holders for their various banking and financial advisory requirements.
- IT Innovation Startup Fund will consider assistance of up to Rs 3 crore to any Indian-registered company operating in the area of banking and-related technology.
Union Government Approved Merger of 5 Associate Banks with SBI
- The Union Cabinet approved the merger of five associate banks — State Bank of Bikaner and Jaipur (SBBJ), State Bank of Travancore (SBT), State Bank of Patiala (SBP), State Bank of Mysore (SBM) and State Bank of Hyderabad (SBH) as well as Bharatiya Mahila Bank (BMB) with State Bank of India (SBI )on June 15, 2016.
- The move is taken with the expectation to put the State Bank of India in the list of top 50 global banks. Currently, no Indian bank features in the top 50 banks of the world.
Union Cabinet Approved ‘India Post Payments Bank’ Proposal
- The Union Cabinet approved a proposal by the department of posts to enter into the banking sector by launching the India Post Payments Bank, with 100% government of India equity.
- India Post Payments Bank will be set-up as a public limited company under the department of posts, with a total investment of Rs 800 crore out of this Rs 400 crore would be infused by the government as equity and the remainder would be given as grant for the next five years.
- The secretary of the department will be a part-time non-executive chairman of the bank’s board. A Payments Bank can hold a maximum balance of Ra 1 lakh per customer; can an issue ATM/debit cards but not credit cards; offer payments and remittance services; deal in mutual fund units and insurance products. They, however, cannot undertake lending service.
Corporate Sector
