The Reserve Bank of India (RBI) has confirmed that it will grant more banking licences as it continues to develop the sector to promote financial inclusion.
"You already have two new universal banks, you may have around 11 payment banks, you may have 10 small finance banks, and going forward, it can be a continuing activity where new players are released into the arena by Reserve Bank, if everything goes as per the planning," RBI Deputy Governor S S Mundra said. "So there would be a large number of new players coming in. I think the key to financial inclusion is that all these players are taken into the national plan of financial inclusion in an orderly manner."
The Nigeria Deposit Insurance Corporation (NDIC) has extended maximum deposit insurance coverage of 500,000 nairas ($2,500) to individual subscribers under the country's mobile payment system.
Jacob Afolabi, director, research, policy and international relations at NDIC, said subscribers using a mobile money platform would be entitled to up to 500,000 nairas in the event of a deposit bank failing.
Meanwhile, the total volume of mobile payment system transactions in Nigeria had grown to 815.64 billion nairas by September, compared to 700 billion nairas in June, according to the central bank. Twenty-one mobile money operators are licensed and operating in the country, with eight others at the pilot stage.
Deutsche Bank paid $6 billion to a hedge fund client in error in a so-called "fat finger" trade on its foreign exchange desk in London in June, raising further questions about its operational controls and risk management. The money was recovered the following day. A junior member of staff processed a gross figure instead of a net value.
The bank reported the incident to the Federal Reserve, the ECB and the Financial Conduct Authority in the UK.
The imminent IPO of Japan Post Bank could cause an overdue shake up the regional banking sector in the country as current restrictions on its business could be loosened once it goes public, allowing the post bank to offer loans and accept higher deposits, putting it in direct competition with 105 regional banks in the country.
Reuters reports that France's Credit Agricole has agreed to pay US authorities $787 million to resolve accusations that it illegally moved money through the US financial system in violation of sanctions against Iran, Sudan, and other countries, according to a person familiar with the matter. Deferred prosecution agreements were said to be part of the settlement.
In Australia, the government has responded to the Murray Review of Australia's financial system, agreeing with the vast majority of its recommendations. Shops, taxis, and other merchants will be prevented from imposing unfair surcharges on credit cards, and inactive bank accounts and life insurance policies will only be defined as unclaimed after seven years, rather than three as is the case currently, in a huge overhaul of Australia's financial system.
The review touches on many aspects of financial services, including credit card fees, superannuation, cybersecurity, and crowdfunding regulation.
Subscribe to the Lafferty Daily BriefingSIGN UP
© 1981-2018 Lafferty Group
Toll-free: +44(0) 800 772 3849
T: +44 (0) 203 633 1630
1-6 Yarmouth Place