The article reports on the upcoming closure of banks in Maharashtra for ten days in September 2024, starting with the Hindu festival of Ganesh Chaturthi. The holiday will also coincide with other major festivals such as Janmashtami, Onam, and Eid-e-Milad. Banks in other states such as Andhra Pradesh and Karnataka will also observe holidays for local festivals. This annual event, where idols of lord Ganesh are worshipped for ten days before being immersed in water, attracts a huge crowd in Maharashtra.
With Ganesh Chaturthi and various regional holidays in September, banks in India will be closed for 15 days this month. Check the state-wise holiday schedule to plan your visits accordingly. This Saturday, banks will be closed in Gujarat, Maharashtra, Karnataka, and more states while other states will operate as usual. Stay informed and avoid unnecessary visits by checking with your bank before heading to a branch.
The Indian banking sector is facing a significant challenge as the growth of deposits has slowed down compared to credit, creating a widening gap between the two. This has raised concerns for the government and the Reserve Bank of India, who have urged banks to focus on innovative strategies to attract more deposits. One of the main reasons for this divergence is the increasing trend of Indian households investing their savings in capital markets, resulting in a lower inflow of savings into banks. As a result, banks are looking for ways to address this issue and mitigate the risk of asset-liability mismatch.
The Reserve Bank of India (RBI) has announced a lowered public float requirement for companies looking to list on the International Financial Services Centre (IFSC) in India. This move is aimed at promoting and encouraging more listings on the IFSC. Additionally, the RBI has also allowed NBFC depositors to withdraw their entire amount prematurely and has cancelled the registration for several NBFCs due to irregular lending. Bajaj Finance, a leading NBFC, has also forged partnerships with several companies in the commercial vehicle and housing finance sectors, further strengthening their presence in the market.
The Securities and Exchange Board of India (SEBI) has settled a case with ICICI Securities, a subsidiary of ICICI Bank, after it paid over Rs 69 lakh as settlement fee. This came after the company was accused of violating SEBI's guidelines and conducting fraudulent activities. This settlement marks a potential shift in the way SEBI handles cases of misconduct by companies and may lead to more efficient resolution of such disputes in the future.
The Indian stock market indexes, Sensex and Nifty, remained steady on Wednesday amidst a mixed response from global markets. Stocks such as Tata Steel and ICICI Bank faced losses while companies like IndusInd Bank and Infosys showed growth. Meanwhile, the state-owned construction company, NBCC India, saw a surge of over 6% in its shares. Midcap and smallcap indices reached new highs, but sectors like banks and metals faced losses while media and IT companies saw buying trends. Market experts predict a consolidation phase with low volatility and a slight upward bias in the near future.
Finance Minister Nirmala Sitharaman declared that the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme, launched by Prime Minister Narendra Modi in 2014, has revolutionized the banking and financial landscape of India. With over 53.14 crore beneficiaries and a deposit balance of Rs. 2.3 lakh crore, the PMJDY has successfully provided millions of unbanked adults with basic banking services and a free accident insurance cover. The Finance Minister also highlighted the scheme's focus on empowering women, with 55% of accounts opened by women.
The founder and CEO of Paytm, Vijay Shekhar Sharma, along with former board members of One97 Communications Ltd, have been served show-cause notices by SEBI for allegedly misrepresenting information during the company's IPO in November 2021. This comes after the markets regulator received inputs from the Reserve Bank of India and probed Paytm Payments Bank for non-compliance with promoter classification norms. As a result, Paytm's stock saw a decline and analysts predict a potential downside of 16%.
Markets regulator Securities and Exchange Board of India (SEBI) has issued a show cause notice to Paytm founder Vijay Shekhar Sharma and other board members for alleged misrepresentation of facts during the company's initial public offering (IPO) in November 2021. The notice, based on inputs from the Reserve Bank of India, questions Sharma's classification as a promoter and his eligibility for employee stock options post-IPO. Paytm's stock has plummeted since its IPO and the company has faced regulatory action from RBI over non-compliance issues.
In a strategic move to reduce dependence on the US dollar in international trade, the Reserve Bank of India (RBI) is pushing for local banks to facilitate direct trade settlements between the UAE and India using the dirham and rupee currencies. This decision aligns with the two nations' goal to expand bilateral trade to $100 billion and also promotes the use of the Indian rupee in global transactions. The move has the potential to increase trade volumes in local currencies and could pave the way for similar arrangements with other key trading partners.