Banking Awareness of 15, 16 and 17 March 2023

Topic: Banking System

1. HDFC Bank and Flipkart Wholesale has launched the first co-branded credit card for small merchants and Kirana members.

• The credit card is exclusively for members of Flipkart Wholesale.
• The card can be used in over 200 countries around the world. It will run on the Diners Club International network.
• It will assist smaller retailers manage their cash flows better.
• Cardholders will be given 5% cashback on online spending on Flipkart Wholesale.
• They will also receive ₹1,500 worth of activation cashback at zero joining fee.
• Flipkart Wholesale is the omnichannel B2B (business-to-business) platform of the Flipkart Group. 
• HDFC Bank:
  • HDFC Bank is India's largest private sector bank. It is India’s second largest lender after State Bank of India. 
  • It is headquartered in Mumbai. It was founded in 1994. The CEO of HDFC Bank is Sashidhar Jagdishan.

Topic: MoUs/Agreements

2. J&K Bank has signed corporate agency agreement with LIC.

• Jammu and Kashmir Bank will service LIC’s life insurance products through its branch network.
• The agreement will be effective from April 1, 2023.
• Jammu and Kashmir Bank functions as a universal bank in J&K. It functions as a specialised bank in the rest of the country.
• It is a Scheduled Commercial Bank. It has its Corporate Headquarters at Srinagar.

Topic: Indian Economy/Financial Market

3. Wholesale inflation declined to 3.85% in February 2023.

• Wholesale price based inflation declined for the ninth consecutive month.
• WPI inflation declined to 25-month low of 3.85% in February 2023.
• WPI-based inflation rate was 4.73% in January 2023. It was 13.43% in February 2022.
• Inflation in food articles increased to 3.81% in February 2023. This was 2.38% in January 2023.
• In pulses, inflation was 2.59% in February 2023. In vegetables, inflation was (-) 21.53% in February 2023.
• In February 2023, inflation in oilseeds was (-) 7.38%.
• Fuel and power basket inflation declined to 14.82% in February 2023 from 15.15% in January 2023.
• Inflation in manufactured products was 1.94% in February 2023.

Topic: Indian Economy/Financial Market

4. Retail inflation declined marginally to 6.44% in February 2023.

• It has declined mainly on account of easing in prices of food and fuel items.
• Consumer Price Index (CPI)-based inflation rate was 6.52% in January 2023 and 6.07% in February 2022.
• Rate of inflation for the food basket was 5.95% in February 2023.
• Retail inflation has stayed above the RBI's upper tolerance range of 6% since January 2022, with the exception of November and December 2022.
• RBI is required to make sure that retail inflation remains at 4% with a range of 2% on either side.

Topic: Awards and Prizes

5. RBI Governor Shaktikanta Das has been granted the ‘Governor of the Year’ Award at Central Banking Awards 2023.

• He has received the 'Governor of the Year' 2023 Award from the international publication Central Banking.
• Shaktikanta Das has been granted the award because he steered the financial markets through multiple crises.
• These crises include the pandemic and inflation caused by the war in Ukraine.
• Former governor Raghuram Rajan was the first Indian to be granted this award in 2015.
• Das is currently in his second term as RBI governor. He is the 25th governor of RBI. He was appointed RBI governor in December 2018.
• He is an IAS officer of the Tamil Nadu cadre. He was preceded by Urjit Patel as RBI governor.

Topic: Appointments

6. Siddhartha Mohanty has been appointed as interim chairman of LIC for three months.

• Siddhartha Mohanty’s appointment has become effective from March 14.
• He was currently serving as MD and CEO of LIC Housing Finance.
• He has taken place of M R Kumar, who completed his term as the Chairman on 13 March 2023.
• M R Kumar’s term has been extended twice. First, the government had extended the term from June 30, 2021 till March 13, 2022, and then till 13 March 2023.
• Life Insurance Corporation:
  • It is the country's biggest life insurer and the fifth-largest life insurer in the world.
  • It is also the tenth-largest insurance company in the world by total assets.
  • LIC has 13.35 lakh agents and services policies worth Rs 27.80 crore.
  • LIC is led by one Chairman and four MDs.

Topic: Corporates/Companies

7. RBI granted ‘Infrastructure Finance Company’ status to IREDA.

• RBI accorded ‘Infrastructure Finance Company (IFC)’ status to Indian Renewable Energy Development Agency (IREDA).
• IREDA was earlier classified as an ‘Investment and Credit Company (ICC)’.
• Now, IREDA will be able to take higher exposure in RE financing. This status will also help in accessing a wider investor base for fund mobilisation.
• With IFC status, IREDA will contribute more to achieving the government target of 500 GW installed capacity of non-fossil fuels by 2030.
• IFC status is a significant milestone for IREDA and is a reward for its infrastructure financing and development with a focus on Renewable Energy.
• IREDA with the motto: “Energy for Ever” is supporting financing new and renewable sources of energy since 1987.
• Indian Renewable Energy Development Agency Ltd. (IREDA):
  • It is a Mini Ratna (Category – I) Enterprise.
  • It is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987.
  • It provides financial support to specific projects and schemes for generating electricity through new and renewable sources.
  • It is under the control of the Ministry of New and Renewable Energy (MNRE).

Topic: World Economy

8. New York-based commercial bank, Signature Bank has been shut down.

• It has become 2nd US bank to be shut down by regulators in the US.
• Recently, Silicon Valley Bank was shut down by United States regulators.
• Federal Deposit Insurance Corporation (FDIC) has been appointed as a receiver.
• This means that FDIC will liquidate the assets of Signature Bank to pay back depositors and others.
• In order to protect depositors, FDIC transferred all the deposits of Signature Bank to Signature Bridge Bank, N.A.
• Signature Bridge Bank is a full-service bank that will be operated by the FDIC.
• Both depositors and borrowers will become customers of Signature Bridge Bank. They will have uninterrupted customer service.
• Bridge bank is a chartered national bank. It operates under a board. The board is appointed by the FDIC. Bridge bank purchases assets of a failed bank.

Read Banking Awareness PDF - 15, 16 and 17 March 2023