Banking Awareness of 10, 11 and 12 January 2023

Topic: Reports and Indices

1. The first edition of the CareEdge States’ Ranking report released on 11 January 2023.

• Maharashtra topped the overall ranking among the Group A (large states). Goa topped the ranking among the smaller states.
• Maharashtra’s top rank is based on its favourable score in the social, financial inclusion, and fiscal categories, as per report by CareEdge.
• The first edition of the CareEdge States’ Ranking report divides the states into two groups: Group A (large states) and Group B (northeast, hilly, and small states).
• It attempts to provide a comprehensive quantitative evaluation of states’ performance.
• Gujarat, Karnataka, and Maharashtra topped the economic category.
• The economic category takes into account factors such as GSDP per capita, GSDP growth, FDI inflows, and a high proportion of industry and services in GSVA (gross state value-added).
• Andhra Pradesh, Telangana, and Uttar Pradesh topped the Governance category from Group A.
• They topped on the basis of their Ease of Doing Business (EoDB) rank and better scores in the court conviction rate.
• Kerala was the winner in the social category in Group A. Goa was the winner in the social category in Group B.
• Punjab and Haryana topped the infrastructure ranking. They lagged behind in terms of social infrastructure indicators like the number of schools as a percentage of the population and beds in government hospitals.
• Western states have scored high in the fiscal and economic category.
• Southern states have scored high in the social and environmental category.
• About CareEdge States’ Ranking:
  • It is based on seven pillars. The pillars are economic, fiscal, social, infrastructure, financial inclusion, environment, and governance.
  • The rankings cover 46 indicators to rank the major states. Union Territories were not covered in the study.
• CareEdge Ratings is one of the leading credit rating agencies in India.

Topic: Miscellaneous

2. Micro and small enterprises (MSEs) have secured 55.2% of total order placed on the GeM (a public procurement platform) since FY2020-21.

• GeM CEO PK Singh said that MSEs owned by women have secured 8% of the MSE orders since FY2020-21 till now.
• Procurement of goods and services from GeM portal has reached beyond ₹1-lakh crore so far this fiscal.
• Under Public Procurement Policy for MSEs, minimum 25% share out of total annual procurement by Central Government Ministries/ Departments/Public Sector Undertakings is to be made from MSEs.
• Out of 25% target of annual procurement from MSEs, 3% of annual procurement from MSEs is earmarked for procurement from MSEs owned by women entrepreneur.
• Government e-Market (GeM) portal:
  • It was launched on August 9, 2016. It was launched for online purchases of goods and services by all the central government ministries and departments.
  • Government departments, ministries, public sector units, state governments, and Central Armed Police Forces can carry out transactions through this portal.
  • The portal provides products from office stationery to vehicles. Services, including transportation, logistics are also listed on the portal.

Topic: Reports and Indices

3. World Bank has kept growth forecast for India at 6.9% for FY23 and 6.6% for FY24.

• Recently released Global Economic Prospects report said that India is expected to be the fastest growing economy of the seven largest EMDEs (Emerging Markets and Developing Economies).
• The report said that global economy is projected to grow by 1.7% in 2023 and 2.7% in 2024.
• The report mentioned any adverse development could push the global economy into recession.
• This would be the first time in more than 80 years that two global recessions have occurred within the same decade.
• The report said that India’s growth expanded by 9.7% on an annual basis in the first half of fiscal year 2022/23.
• As per the report, India used its international reserves to curb excess exchange rate volatility. This helped it to limit rupee depreciation.

Topic: RBI

4. RBI has released a list of six domestic credit rating agencies.

• The banks have been advised to use these credit rating agencies for risk weighting their claims about capital adequacy.
• Domestic credit rating agencies included in the list are given below.
  • Acuite Ratings & Research Limited
  • Credit Analysis and Research Limited (CARE)
  • CRISIL Ratings Limited
  • ICRA Limited
  • India Ratings and Research Private Limited
  • INFOMERICS Valuation and Rating Pvt Ltd
• RBI’s list has come after the case involving Brickworks Ratings India Private Limited.
• SEBI has cancelled its licence in October 2022 for violation of rules.
• It directed the Brickworks Ratings to wind up its operations within six months. SEBI has barred it from taking new clients.

Topic: RBI

5. RBI Deputy Governor Michael Patra's term extended by center for one more year.

• The Central Government has re-appointed Dr. Michael Debabrata Patra as the Deputy Governor of the RBI for one more year, with the effect from January 15, 2023.
• On 15 January 2020, Michael Debabrata Patra took over as the Deputy Governor of RBI.
• Patra, as Deputy Governor, also oversees the Department of Financial Markets Operations, the Department of Financial Markets Regulation, including Market Intelligence, the Department of International Affairs, and the Department of Economic and Policy Research.
• He is also in charge of the Statistics and Information Management Department, the Corporate Strategy and Budget Department, and the Financial Stability Unit.
• He was the Executive Director of the Central Bank of India before being promoted to the post of Deputy Governor.
• Patra is a central banker since 1985 and was Principal Advisor in the Monetary Policy Department from July 2012 to October 2014.
• From December 2008 to June 2012, he worked with the International Monetary Fund as Senior Advisor to the Executive Director.
• MK Jain, M Rajeshwar Rao, and T Rabi Shankar are the three other deputy governors of RBI.

Topic: Banking System

6. NPCI has permitted UPI transactions for non-resident bank accounts connected to mobile numbers of 10 countries.

• The 10 countries are Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, UAE and United Kingdom.
• Non-resident account types such as NRE/NRO accounts having international mobile numbers have been permitted to transact in UPI.
• NPCI had permitted UPI transactions to and from NRO/NRE accounts linked to Indian numbers in October 2018.
• All UPI members, including banks and payments platforms, have been mandated by NPCI to comply with the norms by April 30.
• National Payments Corporation of India (NPCI) will soon extend the facility to mobile numbers of other countries as well.

Topic: RBI

7. Hitachi Payment Services has received RBI’s in-principle approval to act as a payments aggregator.    

• EnKash has received RBI’s in-principle approval for payments aggregator (PA) licence.
• Hitachi Payment Services is an end-to-end payment solutions provider. EnKash is a business spend management platform.
• The aggregator license will augment Hitachi Payment Services’ digital solutions stack with online payment solutions such as UPI, netbanking, cards and wallets.
• The licence will help Enkash streamline cash flow process for businesses.
• Payment aggregators facilitate merchants and e-commerce sites to accept various payment instruments from customers.

Topic: RBI

8. RBI has given in principle authorisation to BharatPe to operate as an online payment aggregator.

• Resilient Payments Private Ltd, a 100% owned subsidiary of Resilient Innovations Private Ltd (BharatPe) has received in principle approval.
• The final authorisation is subject to fulfilment of certain conditions.
• BharatPe will launch the online Payment Aggregator business upon the receipt of the final authorisation from RBI.
• BharatPe was founded in 2018. In 2018, it launched UPI interoperable QR code, the first zero Merchant Discount Rate (MDR) payment acceptance service.

Topic: Banking/Financial Schemes

9. Union Cabinet gave nod to Rs 2,600-cr scheme to promote RuPay and BHIM-UPI.

• The main aim of this incentive scheme is to boost low-value transactions done through the Unified Payments Interface (UPI) and the use of Rupay debit cards.
• Under this scheme, the financial incentives will be provided to banks for promoting Point-of-Sale (PoS) and e-commerce transactions for the financial year 2022-23.
• UPI Lite and UPI 123PAY will be promoted under the scheme as economical and user-friendly digital payments solutions
• The scheme is in support of the government's commitment to boost digital transactions.
• The number of digital payments transactions has increased from 5,554 crore in FY2020-21 to 8,840 crore in FY2021-22.
• Total digital payments transactions registered a year-on-year growth of 59%.
• BHIM-UPI transactions have registered a year-on-year growth of 106% between FY 20-21 to FY21-22.

Topic: Miscellaneous

10. 7^th edition of the Global Investors Summit inaugurated by PM Modi in Indore.

• On 11 January, PM Narendra Modi virtually inaugurated the two-day Global Investors Summit 2023.
• The inaugural session was also attended by Chandrika Prasad Santokhi, President of Suriname, and Dr. Mohamed Irfan Ali, President of Guyana.
• ‘Madhya Pradesh - a future-ready state' is the theme of the Global Investors Summit.
• Special attention has been given to environmental protection in this summit, which will be completely based on carbon neutral and zero waste.
• The aim of the summit is to promote state policies, create an investor-friendly environment by formulating industry-friendly policies and consult with industrial associations to promote opportunities for collaboration and export potential.
• Delegations from more than 65 countries are participating in the Global Investors Summit.
• At the same time, 9 partner countries and 14 International Trade Organizations will display different aspects of their respective countries in the International Pavilion.

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