Dear Readers,

Current affairs is an important component of several competitive exams such as the UPSC Civil Services Examination, SSC-CGL, Bank PO & PSU entrance tests, etc. Therefore, understanding the terms/concepts/events that make news is critical for aspirants. We at PaGaLGuY bring you series of articles explaining some of these important concepts/events. 

Joining the fray of financial companies that have received banking
licence is Infrastructure Development Finance Company (IDFC) Ltd. On July 24, the
financial company announced that the Reserve Bank of India had granted it a
banking licence, making it the second financial institution to enter the banking scene in more
than a decade.

IDFC came into existence in 1997 and has been providing
services ranging from infrastructure financing, infrastructure development and
investment banking. It was set up by the Government of India as a financier to
spur private sector’s involvement in infrastructure development in the country.

Along with IDFC, Indian microfinance company Bandhan
Financial Services is the only one to have been granted preliminary bank
licence in 2014. In June, Bandhan declared that it will begin banking operations
in August in Kolkata, where it is headquartered. Director of the firm, Chandra
Shekhar Ghosh stated that the plan is to open around 500-600 branches across
India with a special focus on the east and north-eastern parts.

Bandhan recently raised Rs.1,020 crore equity from
International Finance Corporation, Singapore’s sovereign wealth fund GIC, and the
state-run Small Industries Development Bank of India (SIDBI). Due to this, its
net worth has risen to Rs.2,700 crore, more than the RBI’s stipulation of a minimum
capital base of Rs.500 crore for new banks.

Millions of people in India do not have the know-how of and access
to organised banking services. The move to grant new bank licence is seen as
the beginning of a cautious experiment to create more competition in a sector that
is heavily controlled by state lenders, many of which are reluctant to expand
into un-banked rural areas or towns.

Over the years, Kotak Mahindra Bank, IDBI, ICICI, HDFC are some
of the financial-institutions-turned-banks.

To get fresh updates about different exams on your Facebook & Twitter timelines, subscribe to our pages created specifically for them. We will post only exam specific links on these pages:

Bank PO:

FB: https://www.facebook.com/pagalguybankpo

Twitter: https://twitter.com/PaGaLGuYBankPO

SSC & Other Exams:

FB: https://www.facebook.com/pages/Pagalguy-SSC-CGL-Others/879667042056262

Twitter: https://twitter.com/pagalguyssc

UPSC:

Facebook: https://www.facebook.com/pages/Pagalguy-UPSC/951926044840262

Twitter: https://twitter.com/PaGaLGuYUPSC