RBI Allowed Banks to Shift, Merge or Close Branches in Urban Areas
- The Reserve Bank of India (RBI) has allowed on August 6, 2015 the banks to shift, merge or close all branches except rural branches and sole semi-urban branches at their own discretion but must ensure that customers of the branch, which is being shifted/merged/closed, are informed well in time before actual shifting/merger/closure of the branch, so as to avoid inconvenience to them.
- The RBI announced in a notification from Mumbai that shifting, merger or closure of any rural branch as well as a sole semi urban branch would require approval of the District Consultative Committee or District Level Review Committee.
- However, banking activity, that is deposit or loan business should not be maintained at both places, and the new locality for part shifting would have to be within 1 km of the existing location.
- The banks have also been allowed to shift some activities of a branch in any centre due to space or rent constraints without seeking prior approval of the RBI.
Corporate
Reliance Communications Tied-up with the USA Firm ‘Jasper’
- Reliance Communications tied-up with the Silicon Valley-based ‘Jasper’ on August 27, 2015 to provide Internet of Things (IoT) solutions, starting with the companies belonging to the Indian conglomerate.
- IoT refers to a network of internet connected devices which are embedded with electronic sensors and data transmitting technologies. The tie-up will provide solutions to the upcoming smart cities, making electricity distribution grids smarter for public safety and on the healthcare front.
Acquisition
Birla Corp Announced to Acquire Lafarge India’s Cement Units
- Birla Corporation announced op August 17, 2015 that it will acquire two cement units i.e., Jojobera and Sonadih from Lafarge India having a capacity of 5.15 million tonnes per annum for Rs 5000 crore.
- Upon completion of this transaction, Birla Corporation will consolidate its position in the eastern India cement market, where the demand supply scenario and outlook continue to remain buoyant.
- The transaction will be funded through exiting cash reserves and incremental debt, and is subject to approval of Competition Commission of India and other . regulatory* approvals.
Hero Cycles Acquired Majority Stake in UK’s Avocet Sports
- Hero Cycles picked up majority stake in UK-based Avocet Sports on August 12, 2015. It is its first overseas acquisition and marked entry into high-end bicycle market in Europe.
- Manchester-based Avocet is among top three players in bicycles, e-bikes, bicycle parts and accessories in the UK. It has relationships with leading retailers, including Tesco, Halfords, ASDA, Shop Direct and Amazon.
- Hero Cycles has a manufacturing capacity of 7.5 nVillion bicycles per year, with its manufacturing units in Ludhiana (Punjab), Bihta (Bihar) & Ghaziabad (Uttar Pradesh).
See Also – International Current Affairs September 2015 (Part 2).
Airtel Acquired YTS Solutions to Boost Wallet Services
- Bharti Airtel has bought financial products company YTS Solutions. It has named the startup’s co-founder and MD Manish Khera Chief Executive Officer (CEO) of Airtel Money. The acquisition is the first of its kind among telecom service providers who offer mobile wallets.
- Airtel said on August 3, 2015 that the buy will bring in a host of new product capabilities targeted at migrants in urban cities and their families in rural towns and villages, driving financial inclusion.
- M-Pesa of Vodafone, Idea Money of Idea Cellular and MRupee of Tata Teleservices compete with the likes of PayTm, MobiKwik, PayU and Oxigen for a share of the fast growing mobile commerce pie.
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