Banking Awareness of 16, 17 and 18 November 2021

Half Yearly (Jan - June 2021)
2021 Book

Banking Awareness

Topic: RBI

1. RBI directed NBFCs to appoint Internal Ombudsman.

  • RBI has directed Non-Banking Finance Companies (NBFCs) to appoint Internal Ombudsman within six months.
  • RBI has directed Deposit-taking NBFCs with more than 10 branches and non-deposit-taking NBFCs with an asset size of a minimum of 5 thousand Crore rupees to appoint an internal ombudsman within 6 months.
  • It will be the apex body for their internal grievance redress mechanism. All complaints that are partly or wholly rejected by the NBFC will be reviewed by the Internal Ombudsman.
  • The Internal Ombudsman (IO) will not take any complaints directly from the public.
  • The person appointed as the IO shall be either a retired or a serving officer, not below the rank of Deputy General Manager.
  • The NBFC may appoint more than one IO depending on the number of complaints received per branch.
  • NBFC will be required to put in place a system of periodic reporting of information to Reserve Bank on a quarterly and annual basis.
  • The implementation of the IO mechanism will be subjected to monitoring by the NBFC’s internal audit system and regulatory oversight by RBI.

Topic: Banking System

2. Payments Infrastructure Development Fund (PIDF) corpus currently stands at ₹614 crore.

  • Reserve Bank of India has announced that the total PIDF corpus currently stands at ₹614 crore.
  • RBI has also announced that over 2.45 lakh physical devices and over 55.36 lakh digital devices were deployed for payment acceptance under the PIDF as of end-September 2021.
  • PoS, mPoS (mobile PoS), GPRS (General Packet Radio Service), PSTN (Public Switched Telephone Network) are physical devices.
  • Digital devices include inter-operable QR code-based payments such as UPI QR, Bharat QR, etc.
  • RBI has contributed ₹ 250 crore and authorised card networks have contributed ₹153.72 crore. Card issuing banks have contributed ₹210.17 crore to total corpus.
  • From 26 August 2021, it also covers PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi Scheme) beneficiaries in tier-1 and tier-2 centres.

Payments Infrastructure Development Fund (PIDF):

RBI operationalized PIDF scheme in January 2021. It provides subsidies for the deployment of Points of Sale infrastructure in Tier-3 to Tier-6 centres and north-eastern States of India.

PIDF scheme will remain operational for 3 years from January 1, 2021. It may be extended for two more years based upon the progress.

The aim of PIDF scheme is to increase payments acceptance infrastructure by adding 30 lakh touch points – 10 lakh physical and 20 lakh digital payment acceptance devices every year.

Topic: Banking System

3. CASA (Current Account Savings Account) campaign launched by Karnataka Bank.

  • CASA (Current Account Savings Account) campaign has been launched by Karnataka Bank.
  • Karnataka Bank has also launched a new current account scheme — KBL Current Account – Premium.
  • The scheme is specifically designed to meet the needs of small and medium entrepreneurs.
  • Under the scheme, customers can have a new current account by maintaining a monthly average balance of ₹25,000 and can avail a host of premium facilities.
  • Under the campaign, the bank aims to mobilise over 4.15 lakh current and savings accounts through active involvement of its 8000-plus workforce in all the 858 branches of the bank.

Topic: Corporates/Companies

4. Paytm Money, Paytm’s wholly-owned subsidiary, launches ‘Voice Trading’.

  • Paytm Money, Paytm’s wholly-owned subsidiary, has launched AI-powered ‘Voice Trading’.
  • It allows users to place a trade or get information about stocks via single voice command.
  • It also enables users to skip the usual five to six-step process of trade in a dynamic environment with simple voice commands.
  • ‘Voice Trading’ is available currently to selected users only. It will be available to users during coming weeks.

Paytm:

Parent organization: One97 Communications

Headquarters: Noida

Founder and CEO: Vijay Shekhar Sharma

Topic: Banking System

5. U GRO Capital enters into a co-lending partnership with SBI.

  • U GRO Capital has entered into a co-lending partnership with SBI to provide credit to MSMEs.
  • Under the partnership, SBI and U GRO aim to disburse up to ₹500 crore by March 2022.
  • The agreement has been signed as part of RBI’s revised co-lending guidelines.
  • U GRO Capital is a technology-focused small business lending platform.
  • U GRO Capital also has co-lending partnerships with Bank of Baroda and IDBI Bank.

State Bank of India (SBI):

It is a nationalized public sector bank and the largest lender of India.

Life Insurance Corporation of India (LIC) is the largest non-promoter shareholder in SBI.

Headquarters: Mumbai, Maharashtra

Tagline: The Banker to Every Indian

Topic: Banking System

6. PhonePe processed more than two billion transactions on its platform in October 2021.

  • PhonePe has processed more than two billion transactions on its platform in October 2021.
  • PhonePe had crossed the one billion monthly transaction mark in February 2021.
  • PhonePe has seen over 145 million monthly active users. Sameer Nigam is founder and CEO of PhonePe.
  • Unified Payments Interface (UPI) transactions reached a record high at ₹7.71 lakh crore in value terms in October.
  • According to National Payments Corporation of India’s recent data. Number of transactions on the UPI platform stood at 421 crore in October, compared to 365 crore in September.
  • As per 2021 India Mobile Payments Market report, PhonePe and Google Pay enjoyed market shares of 44% and 35%, respectively, in first six months of 2021. PhonePe and Google Pay are most popular UPI payment apps.
  • PhonePe is a Bangalore-based Indian digital payments and financial services company. It was founded by Sameer Nigam, Rahul Chari and Burzin Engineer in 2015.

Topic: Indian Economy

7. Producers’ inflation based on Wholesale Price Index (WPI) increased to 12.5 % in October against 10.7 % in September.

  • Producers’ inflation based on Wholesale Price Index (WPI) has increased to 12.5 % in October against 10.7 % in September.
  • This is the highest level in five-months and second highest in the current series (base year 2011–12).
  • High inflation rate in October is mainly due to increase in prices of mineral oils, basic metals, food products, crude petroleum and natural gas, chemicals and chemical products, etc.
  • Inflation for fuel and power increased to 37.18 % in October against 24.81 % in September.
  • Inflation for primary articles (agricultural produce and others) declined little. It increased for manufactured products.
  • Inflation in textiles, paper, chemicals, rubber and plastics, basic metals, fabricated metals, and furniture has been in double-digits for five successive months.

Topic: Indian Economy

8. As per World Bank’s latest report, India received $87 billion in remittances in 2021.

  • As per World Bank’s latest report, India received $87 billion in remittances in 2021.
  • As per the report, US was the largest source. It accounted for more than 20 % of remittances.
  • As per the report, India is followed by China, Mexico, the Philippines, and Egypt in terms of remittances.
  • The report says that in India, remittances are projected to grow 3% in 2022 to $89.6 billion. 
  • The bank said that remittances to low and middle-income countries are projected to grow 7.3% to reach $589 billion in 2021.
  • India had received over $83 billion in remittances in 2020. It was the world's largest recipient of remittances in 2020.

Topic: Taxation

9. Anti-dumping duty imposed on steel and fibreglass measuring tapes imported from Singapore and Cambodia.

  • Anti-dumping duty has been imposed by Finance Ministry on steel and fibreglass measuring tapes imported from Singapore and Cambodia.
  • The revenue department has imposed an anti-dumping duty of $1.83 per kg on steel measuring tapes from Singapore and Cambodia.
  • For fibreglass measuring tapes imported from Singapore and Cambodia, the anti-dumping duty has been kept at $ 2.56 per kilogram.
  • In July last year, Finance Ministry had imposed anti-dumping duty on steel and fibre glass measuring tapes from China.

Topic: Corporates/Companies

10. SIDBI enters into partnership with Google for social impact lending programme.

  • Small Industries Development Bank of India (SIDBI) has entered into partnership with Google for a social impact lending programme.
  • The programme entails financial assistance up to ₹1 crore at competitive interest rates targeted at micro- enterprises.
  • As per SIDBI, the tie-up brings a corpus of $15 million to micro-enterprises as a crisis response related to Covid-19 to reinvigorate them.
  • The programme is targeted at micro enterprises (having turnover up to ₹5 crore), with loan sizes ranging between ₹25 lakh to ₹1 crore, being implemented by SIDBI
  • Sivasubramanian Ramann, Chairman and Managing Director, SIDBI said that the collaboration would enhance efforts to expand MSME sector’s access to credit.

Small Industries Development Bank of India (SIDBI):

It is a development financial institution in India. It is the principal financial institution in the MSME sector.

It works under the Department of Financial Services. It is regulated and supervised by the Reserve Bank of India (RBI).

It was established in 1990. It is headquartered in Lucknow, UP. Sivasubramanian Ramann is Chairman and Managing Director of SIDBI.

 

 

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