Banking Current Affairs

IPPB ties up with Bajaj Allianz to offer life insurance products

State-owned India Post Payments Bank (IPPB) and private life insurer Bajaj Allianz Life Insurance Co Ltd (BALIC) have entered into strategic partnership to provide life insurance solutions. It will allow IPPB customers across segments to access wide array of life insurance products and services especially at doorstep. BALIC is the first life insurer to partner with IPPB. This partnership will allow BALIC to leverage IPPB’s last mile reach for building awareness about life insurance.

India Post Payments Bank (IPPB)

IPPB has been set up as Public Limited Company under Department of Posts (DoP) with 100% Government of India (GOI) equity. It was launched on September 1, 2018 in New Delhi. It has begun operations with 650 branches and 3,250 access points across the country. It leverages DoP’s network, resources and reach to make low-cost, quality and simple financial services easily accessible to customers in the country.

It offers basic banking services acceptance of demand deposits, remittance services, internet banking and other specified services. It does not lending services. It can accept deposits up to Rs. 1 lakh per account from individuals and small businesses. It can issue ATM/debit cards but not credit cards. It can also issue other prepaid payment instruments. It can also distribute non-risk sharing simple financial products like mutual funds and insurance products.

Month: Categories: Banking Current Affairs 2018

Tags:

Government doubles monetary limit for filing cases in DRT

 Union Finance Ministry has doubled pecuniary limit to Rs. 20 lakh from Rs.10 lakh for filing loan recovery application in Debt Recovery Tribunals (DRT) by banks and financial institutions. It means that bank or financial institution or consortium of banks or financial institutions cannot approach DRTs if pecuniary limit amount due is less than Rs 20 lakh. This move is aimed at helping reduce pendency of cases in DRTs.

Background

Banks and financial institutions’ recovery of dues (loans) takes place on ongoing basis through legal mechanisms, which inter-alia includes Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002; Recovery of Debts to Banks and Financial Institution (DRT) Act, 1993 and Lok Adalats. The borrowers of such loans continue to be liable for repayment even when the loans have been removed from the balance sheet of the bank(s) concerned. To make recovery tribunals more effective and to facilitate fast disposal of debt recovery cases, government has made several amendments in different laws, including SARFAESI Act.

Debt Recovery Tribunals (DRT)

DRTs were first set up under Recovery of Debts Due to Banks and Financial Institutions Act 1993, also known as DRT Act. Under it, DRTs were established to facilitate debt recovery involving banks and other financial institutions with their customers. Under existing norms, DRT is supposed to dispose of matter referred to it within 180 days of receipt of application and appeal can be filed against DRT order with Debt Recovery Appellate Tribunals (DRATs). There are 39 DRTs and 5 DRATs functioning at various parts of the country.

Month: Categories: Banking Current Affairs 2018

Tags:

Advertisement

12345...102030...154