Daily Current Affairs December 06 2023 | Latest News

 

CURRENT AFFAIRS : BANKING & FINANCE

RBI Allows Banks to Open Current Accounts for Export Proceeds Alongside Special Rupee Vostro Accounts                                

• The Reserve Bank of India (RBI) permitted banks to open additional current accounts for export proceeds in addition to special rupee vostro accounts with a view to provide greater operational flexibility to exporters.
• To provide greater operational flexibility to exporters, banks maintaining a special rupee vostro account as per the provisions of the RBI circular dated July 11, 2022 are permitted to open an additional special current account for its exporter constituent exclusively for settlement of their export transactions.

Daily Current Affairs December 05 2023 | Latest News

 

CURRENT AFFAIRS : BANKING & FINANCE

Amazon Pay Introduces Video KYC Service in Sign Language for Customers with Hearing and Speech Impairments                

• Amazon Pay has launched a video sign language Know Your Customer (KYC) service for hearing and speech impaired customers, which involves communication through sign languages, a pioneering initiative in the digital payments sector in India.
• The company has rolled out the initiative that enables two-way video communication in sign-language between Amazon Pay employees and customers.
• The goal is to make the KYC process effortless for those who rely on sign language, and making digital payments more inclusive.

Key Highlights :

Daily Current Affairs December 03 & 04 2023

 

CURRENT AFFAIRS : BANKING & FINANCE

RBI and Bank of England Ink MoU for Collaboration and Information Sharing on CCIL

• The Reserve Bank of India (RBI) and the Bank of England (BoE) signed a Memorandum of Understanding (MoU) for cooperation and information exchange regarding the Clearing Corporation of India Ltd. (CCIL).
• Objective of the MoU : To encourage the European Securities and Markets Authority (ESMA) to reconsider recognizing at least one of the Indian central counterparties (CCPs).
• The MoU establishes a framework for the BoE to rely on the regulatory and supervisory activities of the RBI, ensuring the stability of the UK financial system.
• The agreement highlights the significance of cross-border cooperation to facilitate international clearing activities and reflects the BoE’s commitment to deference to other regulators’ regimes.

Key Highlights :

Daily Current Affairs December 02 2023 | Latest News

 

CURRENT AFFAIRS : BANKING & FINANCE

LIC Launches New Whole Life Insurance Policy ‘Jeevan Utsav                                  

• Life Insurance Corporation of India (LIC), has launched a new individual, savings, and Whole Life Insurance plan called Jeevan Utsav.

About Jeevan Utsav :

• The Plan is a Non-Linked, Non-Participating Plan.
• This is a comprehensive form of life insurance providing lifetime coverage.
• Unlike term insurance plans that cover a person for a specified term, whole life insurance, as the name implies, provides coverage for the entire lifetime of the insured individual.
• This insurance plan not only grant’s death benefits to the beneficiaries after the policyholder’s demise but also has a savings component where cash values accumulate over time.

Daily Current Affairs December 01 2023 | Latest News

 

CURRENT AFFAIRS : BANKING & FINANCE

India Records Near 5-Year High Banking Liquidity Deficit

• India’s banking system liquidity deficit has widened to the highest in nearly 5 years on monthly goods and services tax payments.
• The liquidity deficit is the amount of funds banks need to borrow from the interbank market or from the central bank.

What is banking system liquidity?

• Liquidity in the banking system refers to readily available cash that banks need to meet short-term business and financial needs.
• According to the Reserve Bank of India (RBI), the liquidity deficit stood at Rs 1.74 lakh crore ($20.90 billion).
• It is highest since 2018, when it had hit Rs 1.86 lakh crore.
• On a given day, if the banking system is a net borrower from the RBI under Liquidity Adjustment Facility (LAF), the system liquidity can be said to be in deficit.
• LAF refers to the RBI’s operations through which it injects or absorbs liquidity into or from the banking system.
• If the banking system is a net lender to the RBI, the system liquidity can be said to be in surplus.

CURRENT AFFAIRS: NATIONAL NEWS

Daily Current Affairs November 30 2023 | Latest News

 

CURRENT AFFAIRS : BANKING & FINANCE

SEBI to Implement Regulatory Framework for Index Providers

• Markets watchdog Securities and Exchange Board of India (SEBI) approved providing flexibility to Not for Profit Organisations (NPOs) in raising funds through the social stock exchange and also decided to introduce a regulatory framework for index providers.
• SEBI will provide flexibility for fundraising by NPOs through the social stock exchange.

Key Highlights :

• In this regard, the minimum issue size in case of public issuance of Zero Coupon Zero Principal Instruments (ZCZP) for NPOs on the social stock exchange will be reduced to Rs 50 lakh from Rs 1 crore.
• Among other decisions, a regulatory framework will be introduced for the index providers to foster transparency and accountability in governance and administration of financial benchmarks in the securities market.
• Starting from September 2024, all fresh investments made by Alternate Investment Funds (AIFs) will be required to be held in dematerialized (demat) form.
• SEBI has announced its intention to regulate online platforms that offer fractional ownership of real estate assets.
• These platforms will be registered under the framework for small and medium Real Estate Investment Trusts (REITs).

About SEBI :

• Established : 12 April 1988 as an executive body and was given statutory powers on 30 January 1992 through the SEBI Act, 1992
• Headquarters : Mumbai, Maharashtra
• Chairman : Madhabi Puri Buch (first woman to lead the SEBI)
• SEBI is the regulatory body for securities and commodity markets in India under the ownership of the Ministry of Finance (MoF), GoI.

Indian Private Banks Record Largest Single-Day Government Bond Purchase in 7 Years

• Indian private sector banks executed the most significant government bond acquisition in a single session in 7 years, involving a substantial investment on behalf of a corporate entity, according to traders.
• These banks collectively acquired government bonds amounting to a net value of 83.43 billion rupees ($1 billion), marking the most substantial purchase since November 15, 2016, as reported by Clearing Corp of India data.
• This surge propelled November’s overall buying above 200 billion rupees, following net sales of 101 billion rupees in October.

Key Highlights :

• Traders indicated that a large corporate entity likely secured around 50 billion rupees of benchmark paper through a private sector bank.
• An influx of approximately 7 trillion rupees is expected over the next month as specific papers, including the 8.83% 2023, 4.56% 2023, and 7.68% 2023, reach maturity.
• Most of these funds are anticipated to be reinvested in liquid papers, particularly the five-year and benchmark 10-year paper.
• The increased trend in bond buying is reinforced by improving macroeconomic conditions, including a decline of over 55 basis points in the 10-year U.S. yield in November.
• Traders noted that the anticipation of debt sales from the central bank has diminished, contributing to improved sentiment for bond purchases due to prevailing tight liquidity conditions.
• The Reserve Bank of India (RBI) refrained from selling bonds in the secondary market for the week ending November 10, following 185 billion rupees of sales in the preceding 10 weeks.

Indraprastha Gas Limited and IndusInd Bank Collaborate to Facilitate Digital Rupee Transactions in Delhi NCR             

• IndusInd Bank has partnered with Indraprastha Gas Limited (IGL) to introduce digital rupee transactions in Delhi NCR.
• The collaboration enables customers at selected IGL stations to make payments using the Digital Rupee, the Central Bank Digital Currency (CBDC) launched by the Reserve Bank of India (RBI) in 2022.

Key Highlights :

• Through UPI interoperability, customers can scan any UPI QR using their Digital Rupee App across all IGL stations.
• As one of the pilot banks participating in the RBI’s CBDC initiative, IndusInd Bank believes in the value added by CBDC and aims to provide a seamless and comprehensive payment experience to its customers through the use of digital currency,”
• The bank is focused on contributing to the broader acceptance of Digital Rupee and fostering a ‘cashless’ economy.
• The Digital Rupee solution is available on both iOS and Android platforms, ensuring a user-friendly experience.
• It offers various features such as peer-to-peer (P2P) and peer-to-merchant (P2M) payments with complete UPI QR interoperability.

About IndusInd Bank :

• Founded : April 1994
• Headquarters : Mumbai, Maharashtra, India
• MD & CEO : Sumant Kathpalia.
• Tagline : We Make You Feel Richer

About IGL :

• Founded : 1998
• Headquarters : New Delhi, Delhi, India
• Indraprastha Gas Limited (IGL) is an Indian natural gas distribution company that supplies natural gas as cooking and vehicular fuel.
• It is a joint venture between GAIL, Bharat Petroleum, and the Government of Delhi.

CURRENT AFFAIRS: NATIONAL NEWS

CABINET APPROVALS

I. Cabinet approves Central Sector Scheme for providing Drones to the Women Self Help Groups:

Daily Current Affairs November 29 2023 | Latest News

 

CURRENT AFFAIRS : BANKING & FINANCE

Sorin Startup Fund to Receive Backing from Small Industries Development Bank of India and National Small Industries Corporation Subsidiary

• Small Industries Development Bank of India (SIDBI) and the National Small Industries Corporation (NSIC) will support Sorin Investments, the startup fund led by Sanjay Nayar, signalling confidence in the experienced banker and deal maker.

Key Highlights :

• Investment Amount and Source : SIDBI and the ₹10,000-crore Self Reliant India (SRI) Fund, a part of NSIC Venture Capital Fund (NVCFL), will collectively invest around ₹300 crore into Sorin Investments.
• Contribution to Maiden Fund : The fresh investments from SIDBI and NSIC will contribute to Sorin Investments’ maiden fund, helping it reach a total size of ₹1,300 crore.
• SRI Fund Investment Strategy : The Self Reliant India (SRI) Fund, under NSIC, will utilize a ‘Fund-of-Funds’ investment strategy.
• It will invest in SEBI-registered Category I and Category II alternative investment funds (daughter funds), which, in turn, will invest in Micro, Small, and Medium Enterprises (MSMEs).

About Small Industries Development Bank of India :

• Established : 2 April 1990
• Headquarters : Lucknow, Uttar Pradesh, India
• Chairman & MD : Sivasubramanian Ramann
• The SIDBI is the apex regulatory body for overall licensing and regulation of micro, small and medium enterprise finance companies in India.
• It is under the jurisdiction of the Ministry of Finance , Government of India (GoI).

State Bank of India’s Stake in Jio Payments Bank Drops to 23% in FY23

• State Bank of India’s (SBI) shareholding in Jio Payments Bank fell to 23% in FY23 from the 30% that it has maintained since inception, indicating its disinterest in the payments bank business model.
• The fall below 25% also means SBI will no longer be able to block special resolutions at its 7-year-old joint venture (JV).

Key Highlights :

• SBI abstained from participating in two Jio Payments Bank rights issues.
• Meanwhile, Reliance Industries (RIL), SBI’s JV partner, acquired 10 million shares on November 29 and 70 million shares on January 23.
• In the previous fiscal year (FY22), SBI invested ₹9.48 crore in the joint venture.
• Payments banks, introduced during the tenure of former RBI governor Raghuram Rajan, were envisioned to cater to the under-banked and unbanked segments, allowing deposits of up to ₹2 lakh per customer without the ability to lend.
• Reliance Industries (RIL) was among the 11 applicants approved by RBI to establish payments banks in August 2015.
• The bank commenced operations in November 2016 in collaboration with SBI.
• The joint venture was established when Arundhati Bhattacharya was leading SBI.
• Bhattacharya is currently the chairperson and chief executive of Salesforce India.

About SBI :

• Established : 1 July 1955
• Headquarters : Mumbai, Maharashtra, India
• Chairman : Dinesh Kumar Khara
• CFO : Kameshwar Rao Kodavanti

Razorpay Introduces ‘Returnship’ Program to Facilitate Women Rejoining the Workforce After Career Break               

• Fintech unicorn Razorpay has initiated a ‘returnship’ program designed for female professionals who have taken a career break and are seeking to re-enter the workforce.
• Last month, Razorpay introduced ‘Resume with Razorpay,’ offering a six-month internship to female professionals as part of their efforts to facilitate the return of women to the workforce.

Key Highlights :

• Eligibility Criteria for Women : The returnship program is available to women who have taken a break of two or more years from their professional careers.
• Over 1,300 women have reportedly applied for the program.
• Intent to Return to Work : Data from HerKey (formerly JobsForHer), a career engagement platform for women, indicates that 8 out of 10 women who have taken a career break express the intention to return to work.
• Furthermore, 4 out of 10 women are prepared for full-time job commitments.
• Internship Structure and Mentorship Program : During the six-month internship, participants in the program will be paired with mentors as part of Razorpay’s in-house mentorship initiative known as ‘MIND – Mentoring in New Directions.’

About Razorpay :

• Established : 2014
• Headquarters : Bangalore, Karnataka
• Co Founder & CEO : CEO: Harshil Mathur
• Co Founder & Managing Director : Shashank Kumar

Axis Bank Concentrates on Establishing a Completely Digital Bank Through Mobile App ‘Axis Open’ with Minimal Human Assistance                           

• Axis Bank is actively working towards establishing a fully digital bank, emphasizing the role of its mobile application “Axis Open.“

Daily Current Affairs November 28 2023 | Latest News

 

CURRENT AFFAIRS : BANKING & FINANCE

Reserve Bank of India (RBI) Takes Control of Mumbai’s Abhyudaya Cooperative Bank, Disbands Board for a period of 12 Months

• In yet another instance of the regulator taking action against a bank due to governance-related concerns, the Reserve Bank of India (RBI) had superseded the board of Abhyudaya Cooperative Bank for a period of 12 months.
• Satya Prakash Pathak, former Chief General Manager of State Bank of India, has been appointed as the Administrator to manage the affairs of Abhyudaya Cooperative Bank during this period.

Reasons for Regulatory Intervention :

• This action was necessitated due to “certain material concerns emanating from poor governance standards observed in the bank”.

Daily Current Affairs November 26 & 27 2023 | Latest News

 

CURRENT AFFAIRS : BANKING & FINANCE

RBI Imposes Cumulative Penalties of ₹10.34 Crore on Citibank, Bank of Baroda, and Indian Overseas Bank for Non-Compliance

• The Reserve Bank of India (RBI) has imposed penalties amounting to ₹10.34 crore on Citibank, Bank of Baroda (BoB, and Indian Overseas Bank (IOB) for contravention of various regulatory norms.

Basis of Action :

• The regulatory body clarified that the penalties are a result of deficiencies in regulatory compliance.
• The action does not intend to comment on the validity of any transaction or agreement entered into by the banks with their customers.

Penalties Breakdown :

• RBI imposed a fine of ₹1 crore on Indian Overseas Bank for non-compliance with certain directions issued by it on ‘loans and advances – statutory and other restrictions’.
• Citibank is fined ₹5 crore for non-compliance with various directions, including ‘operational guidelines, managing risks and code of conduct in outsourcing of financial services by banks,’ and ‘the depositor education and awareness fund scheme, 2014.’
• A monetary penalty of ₹4.34 crore has been imposed by the RBI on the Bank of Baroda for non-compliance related to ‘loans and advances – statutory and other restrictions’, and ‘Reserve Bank of India (interest rate on deposits) directions, 2016’.

Recent News :

• On 23 November, the RBI imposed monetary penalties on 5 co-operative banks ie ₹2.50 lakh on Ahmedabad’s Shri Mahila Sewa Sahakari Bank Ltd., ₹2 lakh on Porbandar Vibhagiya Nagarik Sahkari Bank Limited., ₹1 lakh in Himmatnagar’s Sarvodaya Nagarik Sahakari Bank Ltd., ₹50,000 on The Khambhat Nagarik Sahakari Bank Ltd. and ₹25,000 on the Vejalpur Nagarik Sahkari Bank Ltd. for deficiencies in regulatory compliance.

About RBI :

• Established : 1 April 1935
• Headquarters : Mumbai, Maharashtra, India
• Governor : Shaktikanta Das
• Deputy Governors : Swaminathan Janakiraman, Michael Patra, M. Rajeshwar Rao, T Rabi Sankar

HSBC India Collaborates with UK Export Finance to Aid Indian MSMEs

• The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India) and UK Export Finance (UKEF), the United Kingdom’s export credit agency, intend to establish a financing programme of up to £100 million to support Indian Micro, Small and Medium enterprises (MSMEs) and corporates for financing their imports from the UK.
• This partnership is expected to enhance the availability of credit for Indian MSMEs and boost trade ties between the two countries.
• HSBC India and UKEF signed a Letter of Intent (LoI) to enable them to work together on opportunities relating to UKEF’s guarantee-backed structures.
• HSBC India and UKEF will work closely to originate, structure and extend financing and credit facilities to Indian MSMEs.
• India was UK’s 12th largest trading partner in the four quarters to the end of Q2 2023, accounting for 2.1% of total UK trade.

About HSBC India :

• Established : 1853
• Headquarters : Mumbai, Maharashtra
• CEO : Hitendra Dave

About UK Export Finance :

• Founded : 1919
• Headquarters : London
• CEO : Tim Reid
• UK Export Finance (UKEF) is the operating name of the Export Credits Guarantee Department (ECGD) which is the United Kingdom’s export credit agency and a ministerial department of His Majesty’s Government.

Karnataka Bank Enters Partnership with Bajaj Allianz Life Insurance for Life Insurance Product Distribution  

• Karnataka Bank has announced a strategic corporate tie-up with Bajaj Allianz Life Insurance Co Ltd, one of India’s leading private life insurers to distribute life insurance products to its
• This collaboration is designed to leverage the strength of BALIC’s product capabilities and Karnataka Bank’s large customer base with wide distribution of over 900+ branches across India.
• These offerings will cater to various life stages and financial needs, ensuring that customers receive structured insurance solutions aligned with their requirements.
• MD and CEO of Bajaj Allianz Life Insurance : Tarun Chugh

About Karnataka Bank :

• Founded : 18 February 1924
• Headquarters : Mangalore, Karnataka, India
• MD & CEO : Srikrishnan Hari Hara Sarma

Daily Current Affairs November 25 2023 | Latest News

 

CURRENT AFFAIRS: BANKING AND FINANCE

FDI shrinks 7.8% in second quarter of FY24

• FDI equity inflows contracted 7.7% to $9.5 billion in the July-September quarter of FY24.
• Data released by the Department for Promotion of Industry and Internal Trade (DPIIT) showed this contraction in FDI inflow.
• Foreign direct investment (FDI) equity inflows stood at $10.3 billion a year ago.
• Total FDI into India declined 7.8% on-year to $15.3 billion in the July-September quarter of FY24 from $16.6 billion a year ago.
• The total FDI includes equity inflows, reinvested earnings and other capita.

Key Highlights

• According to the data, the equity inflows declined 24% on-year in H1 of FY24 at $20.4 billion.
• Singapore was the top source of equity inflows.
• It was followed by Mauritius,US, UK,UAE.
• The inflows declined12.8% from the quarter ended June 30, 2023.
• Foreign investments declined in April, May, June, July and August but increased in September.
• Tax havens like the Cayman Islands and Cyprus were among the top 10 sources of overseas investments for India.
• Services sector received the highest inflows of $3.8 billion in the first half.
• It was followed by construction (infrastructure) activities, and the computer software and hardware sectors at $2.4 billion each.
• Among the states, Maharashtra got the highest inflow of $7.9 billion in April-September 2023-24. Karnataka followed Maharashtra.

Daily Current Affairs November 15

 

CURRENT AFFAIRS : BANKING & FINANCE

Punjab National Bank Launches Digital Gold Loan for Convenient Credit Access                                   

• Public sector bank Punjab National Bank (PNB) launched the PNB Digital Gold Loan scheme.
• The digital lending solution was introduced during the bank’s Digital Mahotsav event.

Aim of the Scheme :

• To provide hassle-free credit to customers to quickly meet their personal as well as agriculture credit requirements by using gold jewellery and/or ornaments as collaterals.

Key Highlights :

• Two schemes have been introduced :

1. PNB Gold Loan: Targeting the retail segment.
2. PNB Swarnim: Catering to the agriculture segment.

• Loan Amount and Collaterals : The PNB Digital Gold Loan scheme allows individuals to borrow amounts ranging from Rs 25,000 to Rs 25 lakh for personal needs.
• Additionally, the loan is available for supporting agriculture or allied activities.
• Eligibility for Agriculture Loans : Borrowers seeking short-term production and/or investment credit for agriculture activities are eligible.
• Activities include crop production, land-based activity other than crop cultivation, irrigation, and allied agriculture activities.
• Loan Range for Agriculture Activities : Eligible borrowers can avail loans ranging from a minimum of Rs 10,000 to a maximum of Rs 2 lakh for agricultural purposes.

About PNB :

• Founded : 19 May 1894
• Headquarters : Dwarka, Delhi, India
• MD & CEO : Atul Kumar Goel
• Tagline : You Can Bank Upon

PayGlocal Receives Regulatory Approval from RBI for Payment Aggregator License                                           

• The Reserve Bank of India (RBI) has given approval to PayGlocal for a payment aggregator license.
• It has received in-principle approval from RBI for Payment Aggregator (PA) license
• After completion of the process, PayGlocal will be able to onboard merchants onto its platform for online payment processing.
• PayGlocal has garnered support from prominent investors, including PeakXV (formerly known as Sequoia Capital India) and Tiger Global, through successful capital raising.

Daily Current Affairs November 12 to 14 2023 | Latest News

 

CURRENT AFFAIRS : BANKING & FINANCE

NHAI Accepts First Insurance Surety Bond as Bid Security for NHAI TOT Bid for Monetization                              

• To boost liquidity and capacity of bidders, National Highways Authority of India(NHAI) has accepted Insurance Surety Bond for the monetization program of the upcoming bid of Toll Operate Transfer (TOT) Bundle 14.
• This will be the first time this innovative instrument is being utilised as a Bank Guarantee (BG) in the road infrastructure sector for monetization of bids.

Key Highlights :

• Collaboration and Partnerships : NHAI collaborated with the Highway Operators Association of India (HOAI), SBI General Insurance, and AON India Insurance to implement the initiative.
• This collaboration indicates the involvement of key stakeholders in the road infrastructure development sector.
• Cost and Savings : The Insurance Surety Bond for TOT Bundle 14 has been issued at a rate of 0.25% by the insurer without requiring any margin money.
• This approach translates into significant cost savings for concessionaires, contributing to enhanced liquidity in the market.
• Implications for Concessionaires : The utilisation of Insurance Surety Bonds will result in substantial savings for concessionaires participating in the NHAI monetization bid.