Current Affairs - Banking

LIC has entered into a partnership with IDFC First Bank to provide online life insurance policies. This collaboration enables over 1 crore customers of IDFC First Bank to purchase LIC policies directly through the bank's website. IDFC First Bank, led by CEO V. Vaidyanathan, is facilitating this offering, showcasing its role in expanding insurance access through digital channels. The partnership with LIC, chaired by Siddharth Mohanty, aims to enhance customer convenience and broaden the reach of life insurance products.

SBI's Amrit Vrishti scheme is designed to offer attractive returns on fixed deposits with a term of 444 days. The base interest rate for this scheme is 7.25% per annum. Senior citizens benefit from an additional 0.50%, bringing their total interest rate to 7.75% per annum. The scheme, which is available from July 15, 2024, to March 31, 2025, also includes a premature withdrawal penalty of 0.50% for deposits up to Rs 5 lakh and 1% for deposits above Rs 5 lakh but below Rs 3 crore. However, SBI staff and pensioners are exempt from this penalty, making it an appealing option for secure, medium-term investments.

The Border Security Force (BSF) and the State Bank of India (SBI) jointly organized the "Grow with the Trees" plantation drive at the BSF Headquarters in Srinagar to promote environmental sustainability. The initiative involved BSF officials, jawans, SBI officials, and school children, aiming to create a greener environment and foster community participation in tree-planting activities. The collaboration reflects SBI's commitment to environmental responsibility and community service.

Punjab National Bank (PNB) has introduced the 'Safety Ring' security feature to combat rising cyber fraud incidents. This optional mechanism allows customers to set daily transaction limits for term deposits (TDs) specifically for online closures or overdraft facilities. By enabling customers to define these limits, PNB aims to provide an additional layer of protection against unauthorized access and potential financial losses. The initiative underscores PNB's commitment to enhancing security measures for its internet and mobile banking users.

Bank of Baroda (BoB) intends to raise ₹7,500 crore through Additional Tier-I (AT1) and Tier-II bonds by March 2025. This capital-raising initiative is aimed at fulfilling regulatory capital requirements and supporting the bank's growth objectives. BoB's strategy includes issuing these bonds in multiple tranches, potentially including the overseas market based on favourable market conditions, as approved by its board of directors.