Airtel Payment Bank

In August last year, the central bank had given in-principle approval to 11 applicants to set up payments bank by February 2017. 

Out of the 11 applicants, Cholamandalam Investment and Finance Co., Tech Mahindra Ltd and billionaire Dilip Shanghvi have already given up their approvals.

Airtel has launched  first Payment Bank knows as Airtel Payment Bank Ltd in the state of Rajasthan. 

Airtel is testing systems and processes ahead of a full scale, pan-Indian launch. 

Customers will be offered an interest rate of 7.25% on deposits in savings account, higher than the 4-6% commercial banks are offering.

The pilot will run at 10,000 Airtel retail outlets where basic banking services will be provided. 

Airtel Payments Bank is planning to expand its merchant network in Rajasthan to 100,000 by the end of the year.

Bank accounts can be opened by customers without documents using Aadhaar based e-KYC. 

The subscriber’s mobile number would function as a bank account number and transfer from Airtel to Airtel phone numbers would be free.

The bank is not offering any debit card facility right now.

The bank was the first applicant to receive the final licence from the Reserve Bank of India (RBI) in April. 

Kotak Mahindra Bank holds 19.9% in the Airtel Payments Bank.

The retail outlets, which will act as banking points, will offer account opening services, cash deposit and withdrawal facilities. 

As a payments bank it cannot perform lending activities, except while giving loans to its employees on approval of the board. The bank can, however, accept deposits of as much as Rs1 lakh.

According to RBI guidelines issued in November 2014, a payments bank will maintain cash reserve ratio with the central bank. 

Apart from it, they will be required to invest minimum 75% of their deposits in statutory liquidity ratio eligible government securities with maturity up to one year and hold maximum 25% in current and time deposits with other scheduled commercial banks for operational purposes and liquidity management.

23-November-2016 18:29 IST

Insolvency and Bankruptcy Board (IBBI) of India notifies (Insolvency Professional) Regulations, 2016; Regulations inter alia provide for registration, regulation and oversight of insolvency professionals under the Code; These regulations to come into effect from 29th November, 2016.

The Insolvency and Bankruptcy Board of India (IBBI), in exercise of its powers conferred under Section 240 of the Insolvency and Bankruptcy Code, 2016 (Code), has notified today the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. These regulations inter alia provide for registration, regulation and oversight of insolvency professionals under the Code. These Regulations shall come into effect from 29^th November, 2016.

The following categories of individuals are eligible for registration as an insolvency professional: 

·         Advocates, Chartered Accountants, Company Secretaries and Cost Accountants with 10 years’ of post-membership experience (practice or employment) or a Graduate with 15 years’ of post-qualification managerial experience, on passing the Limited Insolvency Examination, or

·         Any other individual on passing the National Insolvency Examination.

                          

However, Advocates, Chartered Accountants, Company Secretaries and Cost Accountants with more than 15 years’ of practice experience may seek registration, without any examination. But applications for such registration need to be made till 31^st December, 2016 and such registration shall be valid for a limited period of six months.

There shall be a ‘National Insolvency Examination’ the details of which will be specified through regulations. There shall also be ‘Limited Insolvency Examination’. The syllabus, format and frequency of the ‘Limited Insolvency Examination’, including qualifying marks, shall be published on the website of the Board at least one month before the examination.

A limited liability partnership, a registered partnership firm and a company may be recognised as an insolvency professional entity if a majority of the partners of the limited liability partnership or registered partnership firm or a majority of the whole-time directors of the company are registered as insolvency professionals under the Code. An insolvency professional may use the organisational resources of a recognised insolvency professional entity subject to the condition that the entity as well as the insolvency professional shall be jointly and severally liable for all acts of omission or commission of its partners or directors as insolvency professionals.

These regulations are available at www.mca.gov.in and www.ibbi.gov.in.