Current Affairs - Banking

Starting May 1, 2025, cash withdrawals from ATMs in India will become costlier as the Reserve Bank of India (RBI) has approved an increase in interchange fees. This fee applies when customers use an ATM from a different bank, and the additional cost will be passed on to them, especially when they exceed the free transaction limit. This decision is in response to rising operational costs faced by white-label ATM operators and is expected to impact customers, particularly those from smaller banks.

The BAANKNET portal is designed to enhance the transparency and effectiveness of e-auctions for bank-owned assets, particularly focusing on the disposal of Non-Performing Assets (NPAs). The platform streamlines the listing and auctioning of assets, ensuring secure transactions and maximizing the realized sale value of bank-owned properties.

YES BANK partnered with the Department for Promotion of Industry and Internal Trade (DPIIT) to enhance India's startup ecosystem. Through this collaboration, product startups will receive funding, mentorship, and market linkages. The initiative aligns with the Startup India program and offers startups customized banking solutions and financial expertise via YES BANK’s Head Startup program. Additionally, startups will have access to YES BANK’s network and strategic partnerships, fostering growth and innovation in the Indian startup landscape.

IDFC FIRST Bank launched the ACE feature on its mobile banking app, designed to assist customers with DIY mutual fund investing. This feature offers access to over 2,500 mutual funds, providing detailed information on fund categories, historical performance, holdings, and expert ratings. ACE delivers a premium user experience by integrating public data, insights, and a seamless investment journey, allowing customers to make informed and efficient investment decisions. This initiative aims to enhance customer experience in the growing space of mutual fund investments.

The Bank of Mauritius (BOM) signed a Memorandum of Understanding (MoU) with the Reserve Bank of India (RBI) to facilitate trade transactions in Indian Rupees (INR) and Mauritian Rupees (MUR). This agreement is aimed at promoting bilateral trade and financial cooperation between India and Mauritius by enabling transactions in their respective local currencies, reducing costs and improving efficiency in cross-border trade. The MoU is a step toward strengthening the economic and financial ties between the two nations.