Banking Awareness of 12 and 13 January 2024

Topic: RBI

1. RBI Deputy Governor MD Patra’s term has been extended by the government by a year.

• Government has for the second time extended his tenure by a year.
• The Appointments Committee of the Cabinet (ACC) has approved his re-appointment for one year with effect from January 15, 2024 or until further orders, whichever is earlier.
• He was appointed RBI Deputy Governor for three years in January 2020.
• Before his elevation to the post of RBI Deputy Governor, he was Executive Director at RBI.
• He oversees the functioning of departments such as Monetary Policy Department, Financial Stability, Statistics and Information Management, Economic and Policy Research, Financial Markets Regulation, and Financial Markets Operations.

Topic: RBI

2. RBI has imposed a penalty of ₹1.2 crore on Dhanlaxmi Bank and ₹1 crore on Punjab and Sind Bank.

• The penalty has been imposed for non-compliance with certain directions on lending activities, KYC and deposit rates.
• Punjab and Sind Bank violated norms on ‘Loans and Advances – Statutory and Other Restrictions’.
• Dhanlaxmi Bank violated regulatory norms on ‘Loans and Advances – Statutory and Other Restrictions’, and ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’.
• It also violated ‘Reserve Bank of lndia (Interest Rate on Deposits) Directions, 2016’.
• The RBI also imposed a penalty of ₹29.5 lakh on ESAF Small Finance Bank.
• It imposed the penalty for breach of guidelines on ‘Customer Service in Banks’.

Topic: Banking System

3. Green Rupee Term Deposit of 1,111 days, 1,777 days, and 2.222 days tenor have been launched by State Bank of India (SBI).  

• These have been launched for resident individuals, non-individuals, and NRI customers.
• The deposit aim at mobilizing funds to support environment-friendly initiatives and projects.
• Presently, the deposit scheme is available through the branch network.
• It will soon be made available YONO and Internet Banking services.
• RBI’s “Framework for acceptance of Green Deposits” prohibits banks from offering a differential interest rate on green deposits.
• However, it allows them to offer overdraft facilities to customers against Green Deposits.
• Green deposits are interest-bearing deposits. They are received by the regulated entities for a fixed period.
• The proceeds of green deposits are earmarked for being allocated towards green finance according to RBI’s notification dated 11 April 2023.
• The deposits raised under RBI’s Framework for acceptance of Green Deposits are covered by the Deposit Insurance and Credit Guarantee Corporation.
• As per the current framework, green deposits can be denominated in Indian Rupees only. They cannot be denominated in foreign currency.

Topic: Taxation

4. Direct tax collections have touched 81% of Budget Estimates for FY24.  

• Net direct tax collections have touched about 81% of the Budget Estimate during April 1-January 10 period of the current fiscal.
• At this trend, tax collection is expected to be more than the Budget target by ₹80,000-90,000 crore.
• Direct tax collection target for current fiscal is ₹18.23-lakh crore.
• Corporate income tax (CIT) and personal income tax (PIT) are included in Direct Taxes.
• According to Central Board of Direct Taxes (CBDT), direct tax collection, net of refunds, stands at ₹14.70-lakh crore.
• This collection is 19.4% more than the net collections for the corresponding period of last year.
• This collection is 80.6% of the total Budget Estimates of direct taxes for FY24.
• During the period being considered, gross collections are at ₹17.18-lakh crore.
• This collection is 16.8% higher than the gross collections for the corresponding period of last year.
• Refunds of ₹2.48-lakh crore have been issued during April 1, 2023, and January 10, 2024.
• After refunds adjustment, the net growth in CIT collections is 12.4%. Net growth in PIT collections is 27.2% (including Securities Transaction Tax).

Topic: Indian Economy/Financial Market

5. Retail Inflation reached a four-month high while IIP dropped to an eight-month low level.

• Retail inflation reached a four-month high of 5.69 per cent in December.
• Higher prices of food items such as pulses, spices, fruits and vegetables increased the Retail Inflation.
• The Index of Industrial Production (IIP) slipped to an eight-month low of 2.4 per cent in November as against 11.6 per cent a month ago.
• The IIP has declined due to the high-base effect and slower growth in manufacturing, mining and capital goods output.
• The annual rate of food inflation has increased from 8.70 per cent in November to 9.53 per cent in December.
• Urban areas recorded 10.42 per cent food inflation in December and rural areas registered 8.49 per cent.
• Core inflation has declined to 48 months low of 3.89% in December 2023.
• In December, nine of the 22 major states/UTs registered an inflation rate above the headline inflation rate of 5.69 per cent.
• The highest inflation was registered in Gujarat (7.07 per cent) followed by Rajasthan (6.95 per cent) and Haryana (6.72 per cent).

Topic: Awards and Prizes

6. Swachh Survekshan Awards 2023 presented by President Droupadi Murmu in New Delhi.

• On 11 January, Indore and Surat were declared the joint cleanest cities of India as part of the Swachh Survekshan Awards 2023 in the category of cities with a population of more than one lakh.
• Navi Mumbai got third place in this category. Indore has received this award for the 7th consecutive time.
• In the category with a population of less than one lakh, Saswad in Maharashtra, Patan in Chhattisgarh, and Lonavala in Maharashtra secured the top three positions among the cleanest cities.
• Meanwhile, Maharashtra was given the first prize for cleanliness in the states category, Madhya Pradesh was given the second prize and Chhattisgarh was given the third clean state award.
• Varanasi and Prayagraj from Uttar Pradesh took the top two positions among clean Ganga cities.
• On this occasion, Housing and Urban Affairs Minister Hardeep Singh Puri said that one lakh sites in 4,447 cities have been given for Swachh Survekshan work, and feedback from 12 crore citizens has been received.
• He said that in 2014 only 15% to 16% of the waste was scientifically processed and currently 76% of the waste is being processed.

Topic: Reports and Indices

7. World Economic Forum released the Global Risks Report 2024.

• On 10 January, the Global Risks Report 2024 was released by the World Economic Forum.
• The impact of artificial intelligence in disrupting election outcomes has emerged as the biggest risk for 2024.
• Artificial Intelligence can build models for influencing a large number of voters.
• The “Global Risks Report 2024” has ranked AI-derived misinformation risk ahead of climate change, war and economic weakness.
• Global Risks Report 2024 has been prepared in collaboration with Zurich Insurance Group.
• It surveyed more than 1,400 global risk experts, policymakers and industry leaders and asked about their biggest global concerns.
• For the next two years, misinformation and disinformation, extreme weather events, cyber insecurity and interstate armed conflict will be the major global risks.
• Economic opportunity, inflation, involuntary migration, economic downturn and pollution are among the top 10 risks for the world.
• Extreme weather events, critical changes to earth systems, biodiversity loss and ecosystem collapse, natural resource shortages and misinformation will remain major risks for more than the next 10 years.

Topic: Reports and Indices

8. According to the ILO report, the global unemployment rate will increase to 5.2% in 2024.

• The International Labour Organization (ILO) said that this increase is mainly because of growth in joblessness in advanced economies.
• As per the forecast of ILO's 2024 'World Employment and Social Outlook' report, the number of unemployed people will increase by 2 million.
• As a result, the global unemployment rate will increase to 5.2% from 5.1% in 2023.
• According to the ILO, aggregate labour productivity growth has swiftly returned to the low pace observed over the preceding ten years, following a brief growth burst as countries recovered from the epidemic.
• The scenario is more worrying in high-income nations, where employment growth is predicted to turn negative in 2024 and show only slight increases in 2025.

Topic: Reports and Indices

9. Indian passport ranked 80th in the Henley Passport Index 2024.

• The Indian passport is in the 80th position in the Henley Passport Index 2024.
• It will allow Indian citizens to travel to 62 countries without a visa.
• India shares its rank with Uzbekistan. India’s neighboring country Pakistan is in the 101st position.
• In 2023, India's passport was ranked at the 80th spot.
• Japan and Singapore have continued to top the list for five years now.
• South Korea, Sweden, and Finland are in the second position with access to 193 locations.
• Austria, Denmark, Ireland, and the Netherlands are in third place with access to 192 countries without visas.
• The United Arab Emirates climbed to 11th spot with visa-free access to 183 countries.
• The least powerful passport in the world is Afghanistan. It has access to 28 countries.
• Syria (103), Iraq (102), Pakistan (101) and Yemen (100) are among the least powerful passport countries.

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