CAMS brings to you the important happenings in the BFSI segment during this week. In this weekly roundup, we will attempt to cover key events, milestones, regulatory updates that have an impact on the BFSI sector in India and the world.
China’s banking industry is bearing the brunt of the country’s economic slowdown with its big four state-owned banks reporting profit growth below one per cent in the first three quarters. China’s economy showed a 6.9% year on year in the third quarter of 2015, the lowest since 2009.
The world’s third largest economy, Japan has slipped into technical recession due to a drop in capital spending, external demand and private consumption. The government is considering compiling an extra budget for the current fiscal year to shore up demand.
Mutual Fun Houses in India have been told by the regulator, SEBI to simplify their products. In order to do this, fund houses have been asked to merge schemes with similar characteristics. No new launches will be approved by SEBI till this has been carried out.
Prime Minister Narendra Modi recently stated that the Jan Dhan-Aadhaar Mobile (JAM) has brought about 19 crore people under the banking system, thereby ensuring empowerment among the masses.
According to a recent research, a large majority of retail banks are putting their money into new technology to compete with new entrants and start-ups in the industry.
The Reserve Bank of India has fixed the public issue price of sovereign gold bonds at Rs.2684 per gram. The gold bond scheme is aimed at providing an alternative to buying physical gold. The bonds can bought by resident Indian entities including individuals, HUFs, trusts, universities and charitable institutions.
A recent CII-PWC report has revealed that a key cause of growth in the financial distribution segment has been the entry of a number of new banks. The report details how financial institutions, distribution channels and agents can respond to the world of technology in the future.
The Government of India is planning the sale of a strategic stake in IDBI Bank, plans include merger with a private lender. The government plans to transform IDBI Bank , in a manner similar to the UTI Bank transformation into Axis Bank. Currently the government owns 76.5% stake in the bank.
The Reserve Bank of India (RBI) allowed all cooperative banks to offer internet banking services to their customers. The banks will be able to provide non-transactional services to their customers, provided the bank meets certain conditions.
Reserve Bank of India governor, Raghuram Rajan has stated that India will seek to improve its regulatory oversight of foreign banks operations in the country. The RBI will increase pressure on these banks to set up local subsidiaries, thereby giving the RBI greater control over the local operations.
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