Bank of Baroda signs MoU with NCDEX e-Markets

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Bank of Baroda has signed a Memorandum of Understanding (MoU) with NCDEX e Markets Ltd (NEML) to become a “clearing bank” for handling financial transactions in the NeML market place and procurement/auction platform.

NEML, a wholly-owned subsidiary of agricultural commodity exchange, NCDEX, is an online commodities spot market and services company.

Jagdish Tungaria, Zonal Head, Mumbai, BoB, said: “This tie-up opens up multiple opportunities for both institutions. The bank will partner with agriculture marketing federations and other procurement agencies across the country and increase its presence in agri e-commerce through its wide network across the country.

Mrugank Paranjape, MD and CEO, NEML, said this tie-up will help NeML members across the country to further their agriculture businesses.

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US banks walk tightrope of encouraging, but not mandating vaccines

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Big Wall Street banks have started enforcing stricter mask and vaccine requirements for staff, sometimes communicating them behind the scenes, in an effort to combat Covid-19 infections in their offices while avoiding a fierce national debate about individual rights, sources at the banks and consultants who work with them told Reuters.

Specifics differ, but many big banks have tightened up policies or pushed back return-to-office dates from just a month ago.

Now, Citigroup Inc and Morgan Stanley have the toughest rules at their New York headquarters, where staff entering must be vaccinated.

JPMorgan Chase & Co and Goldman Sachs Group Inc have not mandated vaccines the same way, but both require unvaccinated workers to wear masks and get tested at least weekly.

Bank of America Corp will only allow vaccinated staff to return to its offices in early September, while encouraging other employees to get inoculated.

Drop in infections

The widespread availability of Covid-19 vaccines in the United States caused infections to drop dramatically from January to June, but driven largely by the Delta variant, the current seven-day moving average of daily new cases is up 35 percent, according to Reuters tracking data.

Wells Fargo & Co pushed back its return-to-office start date to October because of an increased risk from the Delta variant.

Behind the scenes, executive committees have been debating policies and how to express them for weeks. Although sources inside the banks say the majority of Wall Street’s workforce has been vaccinated, there remains a vocal group of employees who do not want to get shots for health or religious reasons, as well as some who feel that any mandate infringes on their personal rights.

“It’s, like, on a wing and a prayer that people are saying they are going to require this,” said a senior executive at one of the large banks who requested anonymity to discuss high-level internal discussions.

Sending mandates through company-wide memos can stir outrage not only from employees who oppose them, but from politicians and right-wing groups that sometimes use big banks as political targets, the executive said. When new requirements have been reported in the press, some of the banks have experienced backlash, leading them to communicate changes more quietly, sources said.

Vaccination policies

Citigroup announced its vaccination mandate through a LinkedIn post. Morgan Stanley has stopped sending Covid-19 policy updates through e-mail and instead has managers communicate directives to staff in small groups or individually.

Morgan Stanley’s policies vary by region.

There is also some risk of employees suing banks, either because they got sick at the office due to a Covid-19 outbreak, or because they oppose mask and vaccination requirements, sources said.

Outside the financial sector, there have been some attempts to sue, but judges have been siding with employers, said Jacqueline Voronov, a labor and employment attorney at HallBooth Smith.

“The courtroom doors are always open,” she said. “Can you bring a claim? Yes. Will it be successful? Most likely, no.”

The banks are walking a fine line as they try to encourage staff to get vaccinated and return to offices, while avoiding backlash from them, as well as legal, political and headline risk, said Adam Galinsky, a Columbia Business School professor who specialises in leadership, decision-making and ethics.

Companies generally need employees to be engaged with their responsibilities, rather than worried about getting sick or caught up in fierce social debates.

As a result, it makes sense that the banks are quietly urging staff to get vaccinated and enforcing tougher mask and testing policies for now, but, eventually, Galinsky expects them to move toward hard line mandates for all staff.

“They are trying to find that right pathway,” he said.

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India plans stimulus package for sectors worst affected by second wave, BFSI News, ET BFSI

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India is preparing a stimulus package for sectors worst affected by a deadly coronavirus wave, aiming to support an economy struggling with a slew of localized lockdowns, people familiar with the matter said.

The finance ministry is working on proposals to bolster the tourism, aviation and hospitality industries, along with small and medium-sized companies, the people said, asking not to be identified as the deliberations are private. The discussions are at an early stage and no timeline for an announcement has been decided, they said. A finance ministry spokesman declined to comment.

The latest wave of Covid-19 infections has made India the global hotspot for the pandemic and has decimated travel since the second wave picked up in March even though Prime Minister Narendra Modi has refused to implement a strict nationwide lockdown like last year’s. With high daily cases, many local governments — including Maharashtra and Tamil Nadu, India’s most industrialized states — have imposed curbs against the spread of the virus.

That’s prompted many economists to cut their forecasts for the financial year that began April 1, as rising unemployment and dwindling savings among consumers dim the chances for double-digit growth. While the International Monetary Fund expects India’s economy to expand 12.5% this year to March — and will be revisiting the forecast in July — the country’s central bank projects 10.5% growth.

Flagging growth prospects put the onus on policy makers to support activity, especially once the virus caseload eases. Finance Minister Nirmala Sitharaman, who said last month she’s monitoring the economy in a “very detailed fashion,” has held discussions with economists in recent days about a stimulus package, the people said.

In April, the finance ministry eased rules for capital expenditure by government departments to try to boost spending in the economy.

Pressure also is building on the central bank — which serves as the banking sector regulator — to ease loan repayment rules, especially for sectors badly hit by this virus wave.

–With assistance from Anirban Nag.



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Protect bank staff, prioritise vax, BFSI News, ET BFSI

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MUMBAI: The finance ministry has again written to state governments asking them to put in place a dispensation for vaccinating bank and other financial sector employees. It has also asked the states to protect financial sector employees after incidents of bank staff being manhandles by police enforcing a lockdown came to light.

Debasish Panda, secretary in the department of financial services at the finance ministry, said in a letter to all states’ chief secretaries that the home ministry has categorised the banking industry as a provider of essential services. Since bank employees have to necessarily commute from their homes to offices, and offices must remain physically open, the chief secretaries have been asked to communicate to all district magistrates and police chiefs not to hinder or impede their functioning or movement.

“This letter is very pertinent, and the messaging will help in boosting the morale of bank employees,” said Rajkiran Rai, chairman of the Indian Banks’ Association (IBA). “It sends out a message to everyone that bank employees should be treated with respect,” he added. Earlier this week, videos of police caning a bank employee on his way to work had gone viral and had caused outrage.

In March, the IBA had sought frontline worker status for bank staff. At that time, the association had pointed out that there were around 600 casualties due to Covid among bank employees. Since then, the number of casualties has doubled with the maximum deaths during the last six weeks when the country saw a surge of cases in the second wave.

Although the finance ministry has made requests to states for vaccination of bank employees, some senior executives feel that the communication for priority in vaccination needs to come from the home ministry for states to take cognisance.



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India to begin phase 3 vaccine strategy from May 1

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India will commence its more liberalised phase-3 vaccination programme from May 1, making those above 18 years of age eligible for the anti-Covid shots.

The registration for phase 3-vaccination will commence on CoWIN, the digital platform that is tracking each and every vaccination carried out in the country.

These are the steps that need to be followed for getting registered for the vaccination: The beneficiary will have to visit the website www.cowin.gov.in and register his or her name by entering the name and mobile number. Once the mobile number is given, an OTP will be sent to the number, which required to be provided for completing the registration. Subsequently, the beneficiary must fill in the details of any of the eight different photo ID proofs mandated by the government. They include Aadhaar card, driving licence, PAN card, passport, voter card, and pension book, among others. Once these details are provided, the beneficiary will be able to schedule the vaccination at a place and time of convenience.

Currently there are two vaccines that are being given to beneficiaries – Covaxin and Covishield – and both require two doses for completing the vaccination course. While two doses of Covaxin are given 4 to 6 weeks apart, the gap between two Covishield doses could be 4 to 8 weeks. Many beneficiaries receiving the shot may develop mild symptoms such as fever, body pain and tiredness.

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