Banking Current Affairs

Government permits banks to sell more small savings schemes

The Union Finance Ministry has allowed banks, including top three private sector lenders to accept deposits under various small savings schemes in order to encourage savings.

Until now, most of the small savings schemes were sold through post offices. This decision will allow increase outlets for selling small savings scheme that will result in higher mobilisation under scheme.

Key Facts

Now banks are eligible to sell National Savings Time Deposit Scheme 1981, National Savings (Monthly Income Account) Scheme 1987, National Savings Recurring Deposit Scheme 1981 and NSC VIII issue. All public sector banks (PSBs) and top three in the private sector viz.  ICICI Bank, HDFC Bank and Axis Bank can receive subscription from the expanded portfolios. So far, these banks were allowed to receive subscription under Public Provident Fund (PPF), Kisan Vikas Patra-2014, Sukanya Samriddhi Account, Senior Citizen Savings Scheme-2004.

Small saving schemes

Small Savings Schemes are government run social welfare schemes that provide higher interest rate. These schemes are meant for small investors backed by a sovereign guarantee and tax benefits

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Rajnish Kumar appointed as new Chairman of SBI

The Appointments Committee of the Cabinet (ACC) has appointed Rajnish Kumar (59) as the new chairman of State Bank of India (SBI). His name was recommended by Vinod Rai-led Bank Board Bureau.

Rajnish Kumar will be 25th chairman of the country’s largest lender and succeeds Arundhati Bhattacharya who retired from the service.

Rajnish Kumar

Kumar joined SBI as probationary officer in 1980. In his banking career spanning three decades he had worked in various departments. Prior to this appointment, he was Managing Director (MD) Compliance and Risk and SBI board member. Before becoming MD, he headed SBI’s merchant banking arm, SBI Capital Markets, as managing director and CEO.

Kumar also had worked as Chief General Manager, Project Finance and Leasing Strategic Business Unit. He also had held several key assignments across various business verticals, including two overseas assignments in Canada and United Kingdom.

State Bank of India (SBI)

SBI is largest commercial bank in India in terms of assets, deposits, branches, profits, customers and employees. It traces its ancestry to British India, through the Imperial Bank of India, to the founding, in 1806, making it oldest commercial bank in Indian subcontinent.

On 1 April, 2017, SBI’s five associate Banks (State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore) and Bharatiya Mahila Bank merged with SBI.  With merger, SBI entered in league of top 50 global banks with balance sheet size of Rs.33 trillion, 278,000 employees, 420 million customers and network of more than 24,000 branches and 59,000 ATMs.

After the merger, SBI’s market share also had increased to 22% from 17%. It is ranked 232nd on the Fortune Global 500 list of the world’s biggest corporations as of 2016. It has 198 offices in 37 countries; 301 correspondents in 72 countries.[6]

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