Banking Awareness of 1 April 2024

By Priyanka Chaudhary | Last Modified: 01 Apr 2024 17:09 PM IST
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Topic: Corporates/Companies

1. Dividend payments from CPSEs to the Center have surpassed the revised budget estimate by 26% in FY24.

  • Dividend payments from CPSEs to the Center stood at around ₹63,000 crore in FY24.
  • For the current fiscal year, dividend receipts from CPSEs were estimated to be ₹50,000 crore in the revised projections of the Budget released on February 1.
  • In the fiscal year 2023–24, which ended on March 31, 2024, the actual dividend collections were ₹62,929.27 crore. These were almost 26% more than expected.
  • Dividend receipts for the fiscal year 2022–2023 were ₹59,952.84 crore.
  • ONGC (₹2,964 crore), Coal India (₹2,043 crore), and Power Grid Corporation of India (₹2,149 crore) paid dividends to the government in March.
  • In March, government also got dividends of ₹1,024 crore from NMDC, ₹1,054 crore from HAL, and ₹1,863 crore from GAIL.
  • An increase in dividend is a result of CPSEs' strong financial performance in the 2023–2024 fiscal year.
  • Over the last three years, the aggregate market capitalization of banks, insurance companies, and CPSEs has increased by 500%, from ₹15 lakh crore to ₹58 lakh crore.
  • Since January 2021, the government's equity holding has increased four times, from ₹9.5 lakh crore to ₹38 lakh crore.

Topic: Banking System

2. Total business of City Union Bank has crossed the ₹1 lakh crore mark for the first time.

  • City Union Bank has achieved this record in Financial Year 2023-2024 in its 120th year of operations.
  • Total business of City Union Bank crossed the ₹50,000 crore mark in FY17.
  • From the point of view of business size, City Union Bank is bigger than Tamilnad Mercantile Bank.
  • City Union Bank is smaller than Karur Vysya Bank in terms of business size.
  • City Union Bank recently opened its 800th branch at Ayodhya, Uttar Pradesh.
  • City Union Bank:
    • It is an Indian private sector bank. It is headquartered in Kumbakonam, Tamil Nadu.
    • N Kamakodi is MD & CEO of City Union Bank. It was founded in 1904.

Topic: RBI

3. RBI imposed ₹74 crore fine on 64 lenders (banks and NBFCs) in FY24.

  • In FY23, RBI imposed ₹33.1 crore fine on 41 lenders, excluding co-operative banks and regional rural banks.
  • Out of the fine imposed in FY24, 35 regulatory actions were taken against banks.
  • These include 16 PSU banks, 13 private banks, 4 foreign banks and one small finance bank and payments bank each.
  • 23 of the penalties were of ₹ 1 crore or above. The largest fine of ₹12.19 crore was imposed on ICICI Bank.   
  • In June 2023, RBI took action against all four credit bureaus as they maintained inaccurate or incomplete data and delayed grievance redressal and credit score updating of customers.
  • RBI fined SBI, Bank of India, Canara Bank, Punjab and Sind Bank, Bank of Baroda, Axis Bank, Indian Overseas Bank, Manappuram Finance and Indian Bank twice during the year.
  • RBI took three big operational measures against Paytm Payments Bank, IIFL Finance and JM Financial Products in the last quarter of the fiscal.
  • During FY24, an increase was seen in both the number and quantum of penalties levied.
  • In FY23, penalties against fintechs and housing finance companies and new age lenders were more.
  • Banks accounted for 21 of the 41 penalties. Out of these, seven were PSU banks and private banks each, five were foreign banks and two small finance banks.
  • In FY23 also, the top reasons for the regulatory actions were KYC violations, customer service and data.
  • Bank of India, Punjab and Sind Bank, Bank of Baroda, Kotak Mahindra Bank, RBL Bank, Indian Bank, Axis Bank, Bank of Maharashtra, Indian Overseas Bank and Central Bank paid a penalty in both the financial years.

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Topic: Taxation

4. Anti-dumping investigation has been started on ‘PVC Suspension Resin’ imports from 7 countries.

  • The Directorate General of Trade Remedies (DGTR) in the Ministry of Commerce and Industry has started this investigation on Poly Vinyl Chloride (PVC) Resin (suspension grade) from seven countries.
  • These seven countries are China, Indonesia, Japan, South Korea, Taiwan, Thailand and the U.S.
  • The anti-dumping investigation was sought by 3 out of the 5 domestic producers of PVC Suspension Resins in India through a probe.
  • The petitioners wanted retrospective imposition of the anti-dumping duty on PVC Resin imports from these 7 countries.
  • The imports volume increased 65% in 2022-23 after the validity of anti-dumping duty expired.

Topic: RBI

5. RBI has granted Payment Aggregator (PA) licence to Innoviti Payments and Vegaah.

  • Innoviti Payments is an offline point-of-sales deploying company.
  • Vegaah is a payment gateway. It is run by Concerto Software and Systems.
  • Earlier this month, CCAvenue got its PA licence from RBI. It is run by Infibeam Avenues, which is a listed fintech company.
  • Companies with PA licence are authorized to settle e commerce transactions.
  • Companies with PA licence directly come under the purview of RBI regulations.
  • About 2,500 online merchants are using online payment system of Innovaiti, which is named Innoviti Link.
  • MSwipe is another provider that received the PA licence recently.
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Topic: Indian Economy/Financial Market

6. In March, India received the largest inflow of foreign funds.

  • In March, 3.63 billion dollars were invested in Indian equities by Foreign Institutional Investors (FIIs).
  • Since December 2023, this was their largest buying activity.
  • Domestic institutions remained net buyers in March.
  • They made market investments totaling about 52,467 crore rupees and achieved a four-year high level.
  • In addition to India, FIIs choose to invest in Taiwan, Indonesia, and South Korea.
  • They withdrew money out of markets in Vietnam, Thailand, the Philippines, Malaysia, Japan, and Sri Lanka.
  • The Japanese market saw the largest FII outflow of $5.35 billion.
  • It was followed by outflow of $1.13 billion and $514 million from Thailand and Malaysia.

Topic: Indian Economy/Financial Market

7. India’s foreign exchange reserves increased for fifth continuous week.

  • As per RBI data, India’s forex reserves reached to a record high level of $642.63 billion in the week that ended on March 22, 2024.
  • However, India’s foreign currency assets decreased by $123 million to $568.264 billion.
  • In the week that ended on 22 March 2024, India’s forex reserves increased by $139 million.
  • In the week, gold reserves increased from $347 million to $51.487 billion.
  • India’s foreign currency assets form the biggest component of the forex reserves.
  • Forex reserves increased by $6.396 billion before the week that ended on 22 March.
  • In the calendar year 2023, RBI increased foreign exchange reserves by about $58 billion.
  • In 2022, India’s forex reserve fell by $71 billion cumulatively.
  • The last time India’s forex reserves reached an all-time high was in October 2021.
  • An increase in the cost of imported goods in 2022 could be the reason for much of the subsequent decrease.
  • Forex reserves are the assets that central bank of a country holds.
  • It is generally held in reserve currencies (usually the US Dollar, the Euro, Japanese Yen, and Pound Sterling).
  • It includes India’s Reserve Tranche position in the International Monetary Fund.

Topic: Banking System

8. GNPA ratio of scheduled commercial banks will improve to 2.1-2.4 % in FY25.

  • According to CareEdge Ratings, the gross non-performing asset ratio of scheduled commercial banks (SCBs) is projected to improve from 2.5–2.7 per cent in FY24 to 2.1–2.4 per cent by FY25.
  • The GNPA ratio of SCBs has been decreasing since March 2019.
  • The gross non-performing asset ratio of scheduled commercial banks has fallen to 3.9% in FY23, which is a decadal-year low.
  • The asset quality has improved due to recoveries, higher write-offs by banks, much lower slippages, etc.
  • In FY23, 45% of GNPA was reduced by recoveries and upgradations.
  • By the end of Q3FY24, the GNPA and the Net NPA ratios had reduced to 3.0 per cent and 0.7 per cent respectively.
  • Apart from write-offs and recovery via various resolution procedures, SCBs also improved their balance sheets by selling non-performing assets to ARCs.
  • The slippages have declined across bank groups in FY23. It indicates a lower accretion of fresh NPAs.
  • In September 2023, the services and retail sectors reported 3.4 per cent and 1.3 per cent GNPA.

Topic: Committees/Commissions/Taskforces

9. The report submitted to IFSCA by the expert committee constituted to develop GIFT IFSC as a 'Global Finance and Accounting Hub'.

  • A report has been submitted by the expert committee on developing Gujarat International Finance Tech-City International Financial Services Center (GIFT IFSC) as a 'Global Finance and Accounting Hub'.
  • On 26th March 2024, this report was submitted to the Chairperson of the International Financial Services Centre Authority (IFSCA).
  • On January 18, 2024, this expert committee was constituted in compliance with the notification issued by the Finance Ministry.
  • Book-keeping, accounting, taxation and financial crime compliance were notified as 'financial services' under Section 3(1)(e)(xiv) of the IFSCA Act, 2019.
  • The Expert Committee was chaired by the President of the Institute of Chartered Accountants of India (ICAI).
  • This committee included experts from industry, academia, and government.
  • The expert committee has recommended creating a comprehensive regulatory regime to introduce bookkeeping, accounting, taxation, and financial crime compliance services from IFSC in India.
  • Further, the Committee has also made several recommendations to promote and develop GIFT IFSC as a 'Global Finance and Accounting Hub' including measures to enhance the skills and efficiency of the workforce.

Topic: Miscellaneous

10. Government e-Marketplace (GeM) doubled its Gross Merchandise Value (GMV) to ₹4-lakh crore.

  • In the fiscal year 2023-24, Government e-Marketplace (GeM) doubled its Gross Merchandise Value (GMV).
  • Currently, GeM has over 1.5 lakh government buyers and 21 lakh sellers and service providers.
  • It has integrated 89,421 panchayats and over 760 co-operatives with its procurement ecosystem.
  • Around 50 per cent of the total GMV valued at ₹4-lakh crore can be attributed to procurement of services.
  • All Central government and departments, including their attached/ subordinate offices, Central and state autonomous bodies, central and state public sector units, and local bodies, buy products from this portal.
  • Government e-marketplaces provide a variety of products, ranging from eggs and office stationery to vehicles and defence equipment.
  • The government e-marketplace was launched on August 9, 2016, by the Ministry of Commerce and Industry.
  • The main objective is to create an open and transparent procurement platform for government buyers.


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