Topic: Banking System
1. ICICI Bank will acquire 5% stake in National Asset Reconstruction Company Limited (NARCL).
- On 10 March 2022, the bank has signed an agreement for investment in NARCL.
- The deal is for a total cash consideration of up to Rs. 1, 37.5 crore, which will be paid out in installments.
- The first tranche of equity investment of ₹70.45 crore will be completed by March 31, 2022.
- ICICI Bank is a private sector bank. Girish Chandra Chaturvedi is the chairperson. Its MD & CEO is Sandeep Bakhshi.
- National Asset Reconstruction Company Limited (NARCL):
- Banks created NARCL to consolidate stressed assets for resolution. In NARCL, PSBs will have 51% ownership.
- It was incorporated in July 2021. RBI has given license to NARCL on 04 October 2021.
Topic: Banking System
2. LivQuik has achieved full Interoperability as required by RBI for Prepaid payments Instruments.
- LivQuik is the first PPI issuer to have achieved full interoperability.
- According to RBI guidelines, PPI issuers must enable full-KYC wallet interoperability by March 31, 2022.
- With full interoperability, LivQuik customers can optimize their payments across wallets by linking a card on Visa and RuPay networks.
- LivQuik is a Prepaid Payment Instrument (PPI) issuer. It is a Fintech company headquartered in Mumbai.
Topic: Corporates/Companies
3. Tata Steel Long Products (TSLP) has signed agreement to acquire 94% stake in Neelachal Ispat Nigam for ₹12,100 crore.
- TSLP has emerged as the highest bidder to buy Neelachal Ispat Nigam Limited (NINL).
- Three companies had put in financial bids to buy NINL.
- They are JSW Steel, Tata Steel Long Products and a consortium of Jindal Steel & Power and Nalwa Steel and Power.
- Debt and liabilities of NINL have exceeded Rs 6,600 crore as of March 31, 2021.
- NINL has established a 1.1 million ton Integrated Iron and steel plant at Kalinganagar, Duburi, Dist-Jajpur, Orissa.
- NINL is a company promoted by MMTC Ltd, Industrial Promotion and Investment Corporation of Orissa limited (IPICOL) and other government agencies.
Topic: Indian Economy/Financial Market
4. In January 2022, IIP increased 1.3% to 138.4 as per recent data from Ministry of Statistics & Programme Implementation (MoSPI).
- During April-January period of fiscal year 2021-22, Index of Industrial Production (IIP) growth stood at 13.7% compared to a contraction of 12.0% in the corresponding period a year ago.
- IIP had declined 0.6% in January 2021. The mining sector has shown an increase of 2.8% to 124.7 in January.
- Manufacturing sector has shown a growth of 1.1% to 138.1 and the electricity sector increased 0.9% to 165.6.
- In January last year, manufacturing and mining sector has shown a contraction of 0.9% and 2.4%, respectively.
- In January last year, the electricity sector had seen an increase of 5.5%.
Topic: RBI
5. Paytm Payments Bank Ltd has been directed by RBI to stop onboarding new customers with immediate effect.
- RBI has also directed it to conduct a comprehensive audit of its IT System.
- RBI has taken the action based on certain material supervisory concerns observed in the bank.
- RBI has given directions in the exercise of its powers under Section 35A of the Banking Regulation Act, 1949.
- Section 35A of the Banking Regulation Act, 1949 gives RBI power to give directions to banks.
- Paytm Payments Bank obtained RBI approval in 2017. One97 Communications owns 49% equity interest in it, while the rest 51% is owned by Vijay Shekhar Sharma (Founder and CEO of Paytm).
Topic: Appointments
6. Ajay Bhushan Pandey has been appointed by ACC as Chairperson of National Financial Reporting Authority (NFRA).
- Appointments Committee of the Cabinet (ACC) has also appointed Praveen Kumar Tiwari and Smita Jhingran as full-time members of NFRA.
- Ajay Bhushan Pandey is a former Revenue Secretary. His appointment as NFRA Chairperson is for a period of three years or till he turns 65, whichever is the earliest.
- Praveen Kumar Tiwari is a retired Indian Audit and Accounts Service official.
- Smita Jhingran is an Indian Revenue Service officer.
- National Financial Reporting Authority (NFRA):
- The government formed NFRA on 01st October 2018.
- It supervises the work of auditors, establishes and enforces standards of accounting and auditing.
Topic: Appointments
7. Debasish Panda has been appointed as IRDAI chairman.
- His appointment has been approved by the Appointments Committee of the Cabinet (ACC) initially for a period of three years from the assumption of charge.
- He is a former financial services secretary. He retired as the Secretary of the Department of Financial Services (DFS) in January 2022.
- IRDAI Chairman Subhash Chandra Khuntia completed his term in May 2021. The post has been lying vacant since then.
- ACC has also approved the appointment of Rakesh Joshi to the post of Whole-Time Member (Finance & Investment) at IRDAI.
- Insurance Regulatory and Development Authority of India (IRDAI) is a 10-member body with a Chairman, five whole-time members and four part-time members.
Topic: RBI
8. RBI will regulate and supervise NaBFID as an All India Financial Institution (AIFI).
- RBI said that NaBFID will be regulated and supervised as an AIFI under Sections 45L and 45N of RBI Act 1934.
- NaBFID will be the fifth AIFI after EXIM Bank, NABARD, NHB and SIDBI.
- On March 28, 2021, President gave assent to National Bank for Financing Infrastructure and Development (NaBFID) Act, 2021. The act became effective from April 19, 2021.
- Accordingly, National Bank for Financing Infrastructure and Development (NaBFID) was set up in the form of Development Financial Institution (DFI).
- It was set up to support the development of long-term infrastructure financing in India.
- In October 2021, K.V. Kamath was appointed as National Bank for Financing Infrastructure and Development (NaBFID) chairperson for three years.
Topic: Banking System
9. MDs & CEOs of three public sector banks completing their term this year.
- MD & CEO of Union Bank of India, Rajkiran Rai G will complete his term on May 31, 2022.
- MD & CEO of Punjab & Sind Bank, S Krishnan, will also complete his term on May 31, 2022.
- MD & CEO of Indian Overseas Bank, Partha Pratim, will complete his term in the end of December 2022.
- Union Bank of India is India’s 5th largest Public Sector Bank (PSB). Officers who have served as an ED for one year are eligible for promotion to MD & CEO.
Topic: Indian Economy/Financial Market
10. Crisil has maintained India’s GDP growth prediction for fiscal year 2023 at 7.8%.
- It said average Consumer Price Index (CPI)-based inflation will remain at 5.4% in 2022-23 in case the price of crude oil average at $85-90/barrel.
- Crisil has estimated GDP growth for this fiscal at 8.9% and CPI inflation at 5.4%.
- The repo rate is expected to increase by 50 to 75 basis points next fiscal year, according to Crisil.
- Morgan Stanley has decreased its GDP growth forecast for India by 50 basis points to 7.9% for the next fiscal and has increased the CPI inflation forecast to 6%.
- In the coming fiscal year, it expects the current account deficit to reach a 10-year high of 3% of GDP.
- Crisil is an Indian company that provides rating services and is a subsidiary of US Company S&P Global.
- Morgan Stanley is an American multinational financial services company.
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