Current Affairs - Banking

The RBI increased the Ways and Means Advances (WMA) limit for State governments and Union Territories (UTs) by 28%, raising it from ₹47,010 crore to ₹60,118 crore. This adjustment aims to assist States and UTs in managing temporary mismatches in their cash flow, based on recommendations from State Finance Secretaries and recent expenditure data. The revised limit underscores RBI's proactive measures to support regional financial liquidity during economic fluctuations and fiscal challenges.

Federal Bank has introduced the RuPay Wave Credit Card, leveraging NPCI's UPI technology for seamless transactions. This card allows customers to conduct payments via mobile devices using the FedMobile application. It features benefits such as no annual fees, cashback on initial UPI transactions, and bonus reward points for quarterly expenditures exceeding ₹50,000, enhancing customer convenience and transaction efficiency.

Axis Bank has approved a proposal to acquire additional equity shares in Max Life Insurance for up to ₹336 crore, increasing its collective shareholding from 19.02% to 19.66%. This move is part of Axis Bank's strategy to strengthen its presence in the insurance sector, following previous investments aimed at enhancing its strategic position and influence within Max Life Insurance.

The Purvanchal Cooperative Bank, whose licence was revoked by the RBI due to financial instability, was situated in Ghazipur, Uttar Pradesh.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.