Banking Current Affairs

RBI to issue new Rs 50 currency note

The Reserve Bank of India (RBI) will shortly issue new banknotes of Rs.50 denomination in the Mahatma Gandhi (New) Series. The base colour of the new notes will be fluorescent blue.

RBI also has clarified that all banknotes in Rs.50 denomination issued in the earlier series will continue to be legal tender.

Key Features new Rs.50 note

Its dimension will be 66 mm x 135 mm. It will have a motif of Hampi with Chariot on the reverse, depicting the country’s cultural heritage along with the Swachh Bharat logo, numeral 50 in devnagiri, year of printing and the language panel.

It will have Mahatma Gandhi’s portrait at the Centre and a see through register with enominational numeral 50. Micro letters ‘भारत, ‘INDIA’, ‘RBI’and ‘50’ and Ashoka Pillar emblem on the right will also feature on the front side.

The security thread will have inscriptions ‘भारत’and RBI. The number panel will have numerals growing from small to big on the top left side and bottom right side. The banknote will bear the signature of RBI Governor Dr. Urjit R. Patel on the front side along with the guarantee and promise clause and the RBI emblem.

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Lok Sabha passes State Banks (Repeal and Amendment) Bill, 2017

The Lok Sabha has passed the State Banks (Repeal and Amendment) Bill, 2017. The bill seeks to repeal the two Acts namely State Bank of India (Subsidiary Banks) Act, 1959, and State Bank of Hyderabad Act, 1956.

It also seeks to amend the State Bank of India (SBI) Act, 1955 to remove references to subsidiary banks and powers of SBI to act as an agent of the RBI for subsidiary banks.

Key Facts

Repealing of SBI (Subsidiary Banks) Act and State Bank of Hyderabad Act: These two acts have established the State Bank of Bikaner, State Bank of Patiala, State Bank of Mysore, State Bank of Hyderabad and State Bank of Travancore.  These banks were subsidiaries of the SB). This repealing of two acts is consequent to the decision of the Union Cabinet February 2017 to approve merger of five subsidiary banks of SBI were merged with it.

Amendments to the SBI Act: The Bill removes references related to subsidiary banks from the parent Act. These references include the definition of a subsidiary bank and powers of SBI to act as an agent of the RBI for subsidiary banks.

Background

The Union Cabinet had approved the merger of five associate banks along with Bharatiya Mahila Bank with SBI. The five banks were State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Travancore, State Bank of Mysore and State Bank of Patiala. After the acquisition by SBI, the subsidiaries banks have ceased to exist and, therefore, it was necessary to repeal the two Acts. The merger had made State Bank of India one of the 50 biggest banks of the world. The main motive behind the merger was to increase the capital base of the bank to enable it to disburse more loans.

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