Banking Awareness of 15, 16 and 17 May 2022

Topic: Indian Economy/Financial Market

1. India’s forex has decreased by $11.355 billion since the beginning of FY23.

• During March-end 2021 to 7 May 2021, the reserves have increased by $12.481 billion.
• The rupee has depreciated nearly ₹1.80 since March-end 2022.
• India’s forex had crossed the $600 billion mark for the first time on June 4, 2021. It stood at $605.008 billion.
• It reached a highest level on September 3, 2021and stood at $642.453 billion. 
• The rupee reached an all-time intraday low of 77.6250 per dollar on May 12. Indian currency is weakening due to following reasons.
  • US Fed (central bank of US) is likely to increase interest rates sharply.
  • Foreign portfolio investors (FPIs) are reducing their holdings in emerging market economies including India and investing in advanced economies.
  • Higher global commodity prices, including crude oil.

Topic: Banking System

2. The government may soon reconstitute the Banks Board Bureau (BBB).

• The extended two year term of Banks Board Bureau (BBB) ended on April 10.
• B P Sharma headed BBB since April 2018. He is former Secretary in the Department of Personnel and Training.
• It has three part time members. They are given below.
  • Vedika Bhandarkar, former MD of Credit Suisse
  • P Pradeep Kumar, former MD of State Bank of India (SBI)
  • Pradip P Shah, founder MD of rating agency CRISIL
• Department of Financial Services Secretary, Department of Public Enterprises Secretary and a Deputy Governor of RBI are the permanent or ex-officio members of BBB.
• BBB was formed in 2016. It was formed to recommend appointment of whole-time directors and non-executive chairpersons of public sector banks (PSBs) as well as of state-owned financial institutions.
• It also has responsibility to work with board of directors of PSBs to develop strategies for growth and development.

Topic: Reports and Indices

3. Over 87% of Indian households will have at least one internet user by 2025 as per Kantar report.

• The report estimates that the number of internet users in India will be 900 million by 2025.
• As per the report, online fashion category will have highest number of users by 2025.
• The report says that HealthTech will have the second highest number of users.
• Half of all students will undertake some form of online education by 2025. By 2025, 1 in every 2 edtech users will be female.
• AgriTech will be defined by Drone technology, Public-Private partnerships, and Digital Agriculture apps.
• Kantar is a brand consulting and data analytics company. It is based in London, England.

Topic: Corporates/Companies

4. Swiss Re Global Business Solutions (GBS) India will open a new centre in Hyderabad.

• The centre will be opened in September 2022. Swiss Re GBS India is the analytical and innovation hub of Swiss Re Group.
• Swiss Re GBS India is also having a hub at Bangalore.
• Swiss Re Group comes among the world’s leading providers of reinsurance, insurance etc.
• It is headquartered in Zurich, Switzerland.

Topic: Banking System

5. 41 financial information providers and users adopt Account Aggregator (AA) framework.

• Union Bank of India is the first public sector bank (PSB), which has gone live on the AA platform.
• PSBs, including SBI, Bank of Baroda and PNB are in various stages of preparation and are yet to go live on the platform.
• SBI is in testing phase. Bank of Baroda is in development phase.
• Bank of India, Central Bank of India and Punjab National Bank are evaluating the step.
• NBFCs like Piramal Capital and Housing Finance and U GRO Capital are also live on the AA platform.
• Insurers like Bajaj Allianz General Insurance are also live on AA platform.
• Account Aggregator (AA) framework went live in September 2021. It helps to share consent-based financial data between regulated entities.

Topic: Banking System   

6. Bank of Baroda is planning to monetise IndiaFirst Life Insurance Co. Ltd. (IFLIC).

• The bank is planning to monetize IFLIC via the initial public offer route (IPO).
• IFLIC is life insurance subsidiary of Bank of Baroda. The Bank has increased its stake in IFLIC from 44% to 66.5% in fourth quarter of FY22.
• The Bank increased stake from joint venture partner Union Bank of India (UBI). UBI has 9% stake in the life insurance company.
• The second largest shareholder in IFLIC is Carmel Point Investments India Pvt Ltd is with 26% stake.
• Out of private sector life insurance companies, ICICI Prudential Life, SBI Life and HDFC Life are listed.
• Public sector life insurance company, Life Insurance Corporation of India, will be listed soon.

Topic: Reports and Indices

7. Reliance Industries Limited (RIL) is ranked at first place among the Indian companies on Forbes Global 2000 list of 2022.

• RIL’s ranking has increased by two places to 53rd rank on Forbes' latest Global 2000 list of public companies worldwide.
• Other firms on the list are State Bank of India (105 rank), HDFC Bank (153 rank) and ICICI Bank (204 rank). Other top 10 Indian firms on the list are given in the table below.

• Energy and banking sector corporations were among the highest-ranking Indian companies in the list this year.
• Reliance became the first Indian company to generate over USD 100 billion in annual revenue.
• Berkshire Hathaway reached the No. 1 rank for the first time since Forbes started publishing the Global 2000 in 2003.
• It replaced Industrial and Commercial Bank of China, now ranked at No. 2.
• In the Forbes Global 2000, largest companies in the world are ranked using four metrics. They are sales, profits, assets and market value.  

Topic: RBI

8. Rs 59 lakh penalty imposed by RBI on KEB Hana Bank.

• RBI imposed the penalty for non-compliance with "Reserve Bank of India (Interest Rate on Deposits) Directions, 2016".
• RBI carried out statutory inspection for supervisory evaluation of KEB Hana Bank with respect to its financial position as on March 31, 2020.
• KEB Hana Bank is a South Korean Bank. It is headquartered in Seoul, South Korea.

Topic: Regulatory Bodies/Financial Institutions

9. PM Modi addressed the event on Silver Jubilee (twenty-fifth anniversary) celebrations of the TRAI via video conferencing.

• He also released a postage stamp on the occasion. PM Modi also unveiled a 5G Test Bed.
• 5G Test Bed was developed as a multi-institutional collaboration project led by IIT Madras. It has been developed at a cost of around 230 crore rupees.
• It will create a supporting ecosystem for Indian industry and start-ups.
• It will allow them to validate their 5G and next-generation technologies products, prototypes, solutions, and algorithms.
• Telecom Regulatory Authority of India (TRAI):
  • The Government of India had established TRAI under Section 3 of the Telecom Regulator of India Act, 1997.
  • It was formed on 20 February 1997. Its headquarters is in New Delhi. Its chairperson is P. D. Vaghela.

Read Banking Awareness PDF - 15, 16 and 17 May 2022