SBI Current Affairs - 2020

MoU between Railways and SBI for door step banking

On January 14, 2020, the South-Central Railways and SBI signed MoU to implement door step banking in 585 railway stations

Highlights

The MoU will enable direct pick up of cash from all the railway stations included in the MoU. Before the agreement, the earnings generated at the railway stations were manually sent to nearest banks that were authorised to collect the deposit on behalf of the Railways. This delayed the remittance of cash because of several factors such as availability of man power, holidays, etc.

Major Benefits of the new system

The door step banking will provide uniform cash remittance mechanism in all the railway stations. It will also provide real time information about the cash that is deposited by different stations. This will enable increased accountability and also will help in better supervision. This method will also avoid unwanted accumulation of cash at railway stations.

Why not DBT?

The Direct Bank Transfer is not a feasible option at the moment. This is because there are still persons in the interior parts of the country using cash to buy their tickets. Apart from interior parts, cash is still used in urban areas to buy tickets as well.

The number of passengers using online to book their tickets have increased since 2011-12. In 2015, around 54% of tickets were booked online as compared to 2012. In 2018 the e-ticket sales have been up by 14%. However, there are still an accountable population using cash to buy their tickets.

RBI to Divest its Entire Stake in NABARD and NHB

The Reserve Bank of India (RBI) has sold its entire stakes in the National Bank for Agriculture & Rural Development (NABARD) and National Housing Bank (NHB) for Rs 20 crore and Rs 1,450 crore respectively.

Disinvestment by RBI

  • The decision to divest its entire stake was taken based on the recommendations of the second Narasimham Committee. The committee had stated that RBI could not own those entities which are regulated by it.
  • The government now holds a 100 per cent stake in both NHB and NABARD.

Earlier in June 2018, the government had bought out the entire 59.7 per cent stake in SBI from the Reserve Bank.

The RBI in 2010 divested 71.5% of 72.5% of its shares in NABARD and the remaining of were divested in February similarly RBI which held 100% in NHB, which was divested on 19 March 2019.