BREXIT

23/6/2016 Referendum by UK to leave EU

1975 UK voted 75% to join EU

52% leave and 48% stay, 72% voter turnout

England without London & Wales voted to leave

London stay, led to say sus session of London from England and joining EU,
making it an independent city state like Singapore

Scotland referendum on independence from UK (2014 55% voted against it

because they would have had to apply for EU but now they wish to leave UK and
apply for EU) weird because what currency will they use, how will people travel
freely in EU, will it create and awkward border

Norther Ireland voted to remain in EU but must leave being a part of UK

Republic of Ireland is a part of EU and uses Euro

Investors lost 2trillion USD on 24/6/2016

Article 50 of the treaty of the EU to leave, 2 years to negotiate, - must be

approved by remaining 27 member states and the EU parliament. If no mutual
agreements are reached in 2 years, UK will be kicked out on their own without
any trade agreements

PAYMENT BANKS

11 entities: airtel, Vodafone, tech Mahindra, murugappa, dilip sanghvi (sun

pharma), vijay shekhar (paytm), india post, Reliance, Aditya birla, FINO,

Initially 18 months after which formal license would be given

Restricted banking services: Demand Deposit, <=1lakh balance, internet

banking, insurance nd mutual funds, atm and debit cards

Cant offer loans or credit cards or accept nri deposits

More money in banking system and reach out to rural people

Banking cost will reduce

Major reason was to avoid giving any more PPI (Prepaid Instrument Providers)
licenses

Problems with PPI no interest rate, max 50k, cant pull back in cash, transaction
charges
Payment bank- need to maintain a cash reserve ratio (CRR) (like scheduled
commercial banks), max 1 lakh (similar to ppi), no credit risk (similar to PPI)

To make profits payment banks can invest in SLR approved securities , max limit
is 40%

Good performance can help them become large banks over a period of time

Can tie up wth comm banks to come up with lending facilities, since Payment
banks are closer to customer, they can get them in touch with proper lending
institutions

Also, payment banks can sell products like mutual funds, etc

Airtel with kotak, reliance with sbi

Supply will drive demand in this case and not vice versa

Kotak holds 19.9% in airtel payment bank

No debit card yet, mobile number as acc number, airtel to airtel free

minimum 75% of their deposits in statutory liquidity ratio eligible government

securities with maturity up to one year and hold maximum 25% in current and
time deposits

Cholamandalam Investment and Finance Co., Tech Mahindra Ltd and billionaire
Dilip Shanghvi have already given up their approvals.