SBI Current Affairs - 2020
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On March 5, 2020, the Reserve Bank of India imposed a month-long moratorium. Also, the Apex Bank has imposed withdrawal restrictions of Rs 50,000 to the customers. However, in case of medical emergencies and higher education fees, the restriction has been increased to Rs 5 lakhs.
The Reserve Bank has taken actions as the Yes Bank is currently unable to raise funds that will help against loan losses. RBI has selected SBI (The State Bank of India) to inject capital into Yes Bank. SBI is to conduct viability assessment in buying stakes at Yes Bank.
What is Moratorium?
Moratorium is a temporary suspension of an activity or business. Though RBI has powers to impose restrictions on financial activities of banks in India, it has no powers to impose a moratorium. Moratorium has been imposed on the bank by GoI under recommendation of RBI.
Banking Regulation Act
The Reserve Bank of India has powers to take above actions under Banking Regulation Act, 1949. Section 35A of the act provides powers to put withdrawal restrictions on any bank in India.
Tags: Banking Regulation Act • RBI • Reserve Bank of India • SBI • Yes Bank
On February 27, 2020, the Finance Minister Nirmala Sitaraman announced that the banking in the North East Region is to be increased.
The minister in a meeting with economists, trade and industry representatives and policy experts announced that the banking in the tea garden regions of the north east is to be increased. This is being done to cover greater population of the North East under Financial Inclusion.
The main challenge in implementing Financial Inclusive schemes in the tea gardens of Assam or any other tea-based region is daily wages. The tea garden workers prefer cash in hand. This is mainly because most of the workers here are women and are illiterate.
In 2016, when digital India was being implemented widely all over India, discussions were held to direct Assam Gramin Vikas Bank and State Bank of india to overcome the problem of daily wagers and their demand for cash in hand. However, the results were not as expected. Therefore, the GoI has now decided to increase the banking services and infrastructure to increase banking in the region.
Tags: Assam Tea Traders • Digital Banking • Finance Minister • Nirmala Sitaraman • North East Development