Banking, Financial and Economic Awareness

Half Yearly (Jan - June 2021)
2021 Book

Banking Awareness

Topic: Indian Economy/Financial Market

1. Consumer Price Index (CPI)-based retail inflation declines to 5.39%.

  • Consumer Price Index (CPI)-based retail inflation has declined to 5.39% in July from 6.26% in June.
  • This is lower than the ceiling of 6%. But, this is higher than the median targeted inflation rate of 4 %.
  • As per National Statistical Office (NSO) data, the retail inflation rate for vegetables declined further to (-) 7.75 % in July from (-) 0.7 % in June.
  • Inflation for edible oil is still high at 32.5. It is down from 34.7. The low inflation rate could ease pressure on RBI’s Monetary Policy Committee.
  • As per some experts, RBI’s policy stance may change to ‘Neutral’ in February.
  • Index of Industrial Production (IIP) showed 13.6 % growth in June as against 28.6 % in May.

Topic: RBI

2. RBI includes Tokyo Olympics gold medalist Neeraj Chopra in banking fraud awareness campaign.

  • RBI has included Tokyo Olympics gold medalist Neeraj Chopra in the banking fraud awareness campaign.
  • In a campaign video, Neeraj Chopra is conveying RBI’s message warning people against digital banking frauds.
  • Neeraj Chopra is an Indian Javelin thrower, who has recently won the gold medal at Tokyo Olympics.

Topic: Corporates/Companies

3. Aquaculture start-up Aquaconnect listed in Forbes Asia 100 to Watch List.

  • Aquaculture start-up Aquaconnect has been listed in Forbes Asia 100 to Watch List.
  • Total 22 Indian startups feature on the list. This is the highest number for any country.
  • Forbes Asia 100 to Watch List comprises of 100 companies from the Asia Pacific region. The list covers 10 sectors.
  • Aquaconnect is the pioneer of data and tech-enabled aqua farming in India.
  • It is a Chennai-based startup. It was founded in 2017. Rajamanohar Somasundaram is its CEO and Founder.

Topic: RBI

4. Monetary penalty of ₹1-crore imposed by RBI on Cooperatieve Rabobank UA.

  • Monetary penalty of ₹1-crore has been imposed by RBI on Cooperatieve Rabobank UA.
  • Penalty has been imposed for contravention of certain sections of the Banking Regulation Act, 1949.
  • RBI has carried out a statutory inspection for supervisory evaluation (ISE) of the bank. The statutory inspection and examination of the Risk Assessment Report revealed contravention of provisions of the Act.
  • A show-cause notice was issued and after consideration of reply, penalty has been imposed.
  • Coöperatieve Rabobank UA, Mumbai Branch, is a part of the Netherlands-based Rabobank Group.

Topic: Banking System

5. Deutsche Bank to start IFSC Banking Unit at GIFT City.

  • Deutsche Bank will start IFSC Banking Unit (IBU) at GIFT City.
  • It will become the 17th IBU to be operational at GIFT City.
  • The bank currently has over ₹19,000 crore of capital deployed in its India branch operations.
  • It would now look to carry out international business transactions from the IBU at GIFT-IFSC.
  • Kaushik Shaparia, CEO, Deutsche Bank India said that IBU will allow Deutsche Bank to expand its services to its clients to smoothly carry out international business transactions.
  • GIFT City in Gandhi Nagar is the first and only functional IFSC in India.

Topic: Indian Economy/Financial Market

6. Ten major banks have for the first time come together to set up Secondary Loan Market Association (SLMA).

  • Ten major banks have for the first time come together to set up the Secondary Loan Market Association (SLMA).
  • SLMA has been formed on the recommendation of RBI’s Task Force on the Development of Secondary Market for Corporate Loans.
  • State Bank of India, ICICI Bank, Canara Bank and Standard Chartered Bank, Kotak Mahindra Bank, Deutsche Bank, Bank of Baroda, Punjab National Bank, Axis Bank and HDFC Bank are members of SLMA.
  • SLMA will facilitate, promote and establish an online system for standardization and simplification of primary loan documentation, and other trading mechanisms for the secondary loan market.
  • Sanjay Srivastava is Chairman of SLMA. He said that the secondary market for loans will develop on the strength of a systematic digital loan trading platform, standardization of documents and effective price delivery mechanism.
  • Currently, the secondary market for corporate loans mainly involves inter-bank transactions or sale to Asset Reconstruction Companies.

Topic: RBI

7. RBI empanels RBL Bank as Agency Bank.

  • RBI has empaneled RBL Bank as Agency Bank to carry out banking business for the Central and State Governments.
  • Kerala based private sector bank South Indian Bank has also been empaneled as an ‘Agency Bank’ by RBI.
  • This will enable both banks to handle transactions related to government business such as distributing subsidies and pension payments.
  • The banks will also be able to carry out transactions such as collecting Central and State taxes including income tax, excise duties, customs, GST, stamp duty, registration, value added tax and professional tax, in both online and offline modes.
  • Earlier, IndusInd Bank and Karnataka Bank were empaneled by RBI as agency banks.
  • RBL Bank is a Mumbai-based Indian private sector bank. It was earlier known as Ratnakar Bank. Vishwavir Ahuja is its MD & CEO.

Topic: Appointments

8. NPCI announces appointment of Noopur Chaturvedi as CEO of NPCI Bharat BillPay.

  • National Payments Corporation of India (NPCI) has announced the appointment of Noopur Chaturvedi as the Chief Executive Officer (CEO) of NPCI Bharat BillPay.
  • As CEO, Chaturvedi will work on RBI’s vision to scale up the Bharat Bill Pay (BBPS) platform and make it the preferred solution for all bill payments.
  • NPCI Bharat BillPay is a wholly-owned subsidiary of NPCI. It was formed with effect from 01 April 2021.
  • The Bharat Bill payment system is a Reserve Bank of India (RBI) conceptualised system driven by the National Payments Corporation of India (NPCI).

 

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