Current Affairs - Banking

The Reserve Bank of India (RBI) has approved the merger of National Co-operative Bank (Bangalore) with Cosmos Co-operative Bank (Maharashtra), effective January 6, 2025. This merger is part of efforts to strengthen the cooperative banking sector. Post-merger, all branches of the National Co-operative Bank will function under the Cosmos Co-operative Bank umbrella. The decision comes after financial restrictions were imposed on the National Co-operative Bank due to weak financial performance, emphasizing the need for consolidation and stability in the sector.

SBI launched two innovative schemes: the "Har Ghar Lakhpati" recurring deposit scheme and the "SBI Patrons" fixed deposit scheme. The "Har Ghar Lakhpati" scheme encourages financial discipline by helping customers, including minors, save Rs. 1 lakh or more through pre-calculated plans. Meanwhile, the "SBI Patrons" scheme caters specifically to senior citizens aged 80+ by offering enhanced interest rates. These initiatives demonstrate SBI’s commitment to addressing diverse financial needs and promoting a culture of savings across demographics.

The State Bank of India (SBI) has introduced a TAB-based, fully digital onboarding process for Non-Resident Indians (NRIs) to open NRE and NRO accounts. Launched on January 2, 2025, this initiative eliminates the need for physical paperwork by enabling digital document verification. It ensures faster account setup and enhances convenience for NRIs. SBI’s commitment to integrating advanced technology into its services highlights its focus on efficiency and customer satisfaction in global banking.

The Reserve Bank of India (RBI) has mandated the implementation of a name lookup facility for NEFT and RTGS transactions by April 1, 2025. This feature aims to reduce fraud and errors by allowing remitters to verify beneficiary names before initiating payments. Developed by the National Payments Corporation of India (NPCI), this system will function similarly to UPI and IMPS. Banks will integrate the feature into their digital and physical banking platforms to enhance transaction security and accuracy.

Amitava Chatterjee, previously serving as Deputy Managing Director at State Bank of India, has been appointed as the new Managing Director and Chief Executive Officer of J&K Bank. He will succeed Baldev Prakash, whose term concludes on December 29, 2024. Chatterjee's tenure as MD & CEO will span three years, beginning December 30, 2024.