Current Affairs - Banking

The Purvanchal Cooperative Bank, whose licence was revoked by the RBI due to financial instability, was situated in Ghazipur, Uttar Pradesh. The cancellation of its licence was prompted by the bank's inability to maintain adequate capital and sustainable profitability, leading to the initiation of liquidation proceedings overseen by Uttar Pradesh's Cooperative Societies authorities.

Punjab National Bank (PNB) is expanding its global presence by establishing a representative office in Dubai. This strategic move aims to strengthen PNB's international footprint and is part of its broader strategy to increase profitability through portfolio expansion and revenue diversification. The office, expected to be operational within the current financial year pending regulatory approvals, reflects PNB's commitment to enhancing customer service and fostering business growth in key global markets.

The Reserve Bank of India (RBI) has increased the threshold for bulk fixed deposits from Rs 2 crore to Rs 3 crore. This adjustment aims to refine liquidity management and align deposit classifications with current economic needs. Bulk fixed deposits typically offer higher interest rates compared to retail term deposits and play a crucial role in banks' liquidity management practices.

The All India Bank Employees Association (AIBEA) has launched the "Bank Clinic" initiative to provide guidance and assistance to bank customers with grievance redressal in accordance with RBI guidelines on retail banking. This initiative operates as a non-resolving advisory platform, offering advice on remedies available as per RBI guidelines and functions alongside the traditional Banking Ombudsman process.

Muthoot Microfin Limited has entered into a strategic co-lending partnership with the State Bank of India (SBI) to provide financial support to women entrepreneurs in rural and semi-urban areas across India. This collaboration aims to extend financial services to Joint Liability Groups (JLGs) engaged in various income-generating enterprises, with loan amounts ranging from Rs 10,000 to Rs 3,00,000.