RBI Allows AU Small Finance Bank to Deal with Foreign Exchange
The Reserve Bank of India (RBI) has recently allowed AU Small Finance Bank to deal in foreign exchange (FX) services. The bank can now offer services such as outward remittances in foreign currency and issuance of foreign currency travel cards, among others. AU Small Finance Bank has become the sixth small finance bank to get permission for foreign exchange transactions.
With this permission, the bank aims to provide a range of foreign exchange services to its customers, such as forex travel cards, foreign currency cash, and outward remittances in foreign currency. The bank is also planning to offer inward remittances and foreign currency deposits in the near future.
The bank’s MD and CEO, Sanjay Agarwal, said that this permission will help the bank to expand its product offerings and deepen its relationship with its customers. He also said that this permission will help the bank to serve its customers better and meet their foreign exchange requirements.
AU Small Finance Bank was founded in 1996 as Au Financiers, and it became a small finance bank in 2017. It has a pan-India presence with over 700 branches in more than 10 states.
Why this News is important:
Foreign exchange services are becoming increasingly important in the modern world, especially for businesses and individuals who have to make international transactions. As such, it is essential for banks to be able to offer these services to their customers. The recent permission granted by RBI to AU Small Finance Bank to offer foreign exchange services is a significant development in this regard.
This permission is important for students preparing for various government exams, including banking and civil service exams, as it highlights the importance of foreign exchange services and their role in modern-day banking.
Historical Context:
In 2015, the RBI granted in-principle approval to 10 entities to set up small finance banks in the country. The aim was to provide financial inclusion and improve access to banking services in under-served and unbanked areas of the country. AU Financiers was one of the 10 entities that received approval, and it became a small finance bank in 2017.
Key Takeaways from “RBI Allows AU Small Finance Bank to Deal with Foreign Exchange”:
| Serial No. | Key Takeaways |
|---|---|
| 1. | AU Small Finance Bank has been granted permission by RBI to offer foreign exchange services. |
| 2. | The bank can now offer outward remittances in foreign currency and issuance of foreign currency travel cards, among other services. |
| 3. | AU Small Finance Bank is the sixth small finance bank to get permission for foreign exchange transactions. |
| 4. | The bank aims to provide a range of foreign exchange services to its customers, such as forex travel cards, foreign currency cash, and outward remittances in foreign currency. |
| 5. | This permission will help the bank to expand its product offerings and deepen its relationship with its customers. |
Conclusion
In conclusion, the recent permission granted by RBI to AU Small Finance Bank to deal with foreign exchange is a significant development in the banking sector. This permission will allow the bank to offer a range of foreign exchange services to its customers, thereby expanding its product offerings and strengthening its relationship with its customers.
The permission is also important for students preparing for government exams, as it highlights the importance of foreign exchange services and their role in modern-day banking. It is crucial for aspirants to stay updated with current affairs related to the banking and finance sectors, as questions related to these topics are often asked in various government exams.
Important FAQs for Students from this News
Q: Which bank has recently been allowed by RBI to deal with foreign exchange?
A: AU Small Finance Bank.
Q: What is the significance of the permission granted by RBI to AU Small Finance Bank?
A: The permission will allow the bank to offer a range of foreign exchange services to its customers, thereby expanding its product offerings and strengthening its relationship with its customers.
Q: What are the benefits of foreign exchange services for banks and their customers?
A: Foreign exchange services help banks to expand their product offerings, attract more customers, and generate additional revenue. For customers, foreign exchange services provide a convenient way to exchange currencies and make international transactions.
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