Banking Awareness of 16, 17 and 18 September 2023

Topic: Reports and Indices

1. Financial Inclusion Index improved from 56.4 in March 2022 to 60.1 in March 2023 according to RBI.

• According to RBI, the value of FI Index grew across all sub-indices.
• Mainly Usage and Quality dimensions contributed to improvements in FI Index. This reflects deepening of financial inclusion.
• The Index for FY ending March 2021 was at 53.9.
• This index was at 43.4 for the period ending March 2017.
• Financial Inclusion Index (FI-Index) captures the extent of financial inclusion across the country.
• It was first published in August 2021 for the FY ending March 2021.
• The value of index ranges between 0 and 100, where 0 represents complete financial exclusion and 100 represents full financial inclusion.
• It consists of three broad parameters-access (35% weightage), usage (45% weightage), and quality (20% weightage).

Topic: Committees/Commissions/Taskforces

2. IRDAI has formed inter-disciplinary standing committee on cyber security.

• This committee has been set up to regularly review the threats inherent in the emerging or existing technologies.
• The committee has been set up after the issue of the Information and Cyber Security Guidelines in April 2023.
• The committee will also suggest appropriate changes to the framework to strengthen the cyber security resilience of the insurance industry.
• While suggesting changes in the current framework, the committee will also consider suggestions received from the Regulated Entities in implementation of IRDAI Information and Cyber Security guidelines, 2023.
• The committee has 10 members. It is chaired by PS Jagannatham.
• It comprises technology professionals from academics, industry experts and representatives of the insurance broking community.
• If necessary, the committee can also invite external members.

Topic: Regulatory Bodies/Financial Institutions

3. SIDBI has plans to raise ₹10,000 crore from rights issue next fiscal to expand its capital base.

• SIDBI, which refinances SME loans, plans to conduct the rights issue in two tranches of ₹5,000 crore each next fiscal.
• SIDBI expects to increase its assets to ₹5 lakh crore by March 2024 from about ₹4 lakh crore in March 2023.
• The shareholders will subscribe to the proposed rights issue.
• The Central Government owns 20.8% in SIDBI.
• State Bank of India (SBI) holds 15.65% and Life Insurance Corporation 13.33%.
• The rest of the equity is held by other public financial institutions and banks.
• Capital Adequacy Ratio (CAR) of SIDBI declined from 24.28% in FY22 to 19.29% in FY23. It further declined to 15.63% as of June 2023 quarter.
• The asset base increased 63% from ₹2,47,379 crore in FY22 to ₹4,02,383 crore in FY23. Its income increased 102% to ₹18,485 crore.

Topic: Banking System

4. Indian Bank has launched ‘IB SAATHI’ to improve banking services.

• Managing Director and CEO of the bank, S L Jain, launched the IB SAATHI initiative.
• The initiative is aimed at offering an ecosystem for all stakeholders in the financial sector through the business correspondent route.
• SAATHI stands for Sustainable Access and Aligning Technology for Holistic Inclusion.
• IB SAATHI offers an enhanced user experience through the simplified service delivery to customers.
• With the launch of this initiative, Indian Bank tries to provide basic banking services at all centres for at least four hours per day at fixed branches.
• Banking Correspondents would provide their services directly at the doorsteps of the customers.
• By March 2024, Indian Bank will deploy about 5,000 banking correspondents.
• Indian Bank:
  • It was founded in 1907. Its headquarters are in Chennai. Shanti Lal Jain is its MD & CEO.
  • From 1 April 2020, Allahabad bank has been merged with Indian Bank.

Topic: Reports and Indices

5. India is ranked first in grassroots crypto adoption, as per Chainalysis’ 2023 Global Crypto Adoption Index.

• India is ranked first in four parameters. These parameters include centralized service value received, retail centralised service value received, DeFi value received and Retail DeFi value received.
• Last year, India stood fourth based on the report.
• In the report, on-chain data and real world data are combined to measure which countries are leading the world in grassroots crypto adoption.
• Nigeria is ranked 2nd in the index, followed by Vietnam, United States and Ukraine.
• The report said that a dramatic uptick was seen in low-income countries in crypto adoption after a decline in late 2022.
• India has also introduced 1 per cent TDS on crypto trades and 30% tax on gains.

Topic: Indian Economy/Financial Market

6. India’s goods exports decreased 6.8% in August to $34.48 billion.

• India’s goods exports declined for the seventh consecutive month in August 2023 (year-on-year).
• Sectors such as petroleum products, gems and jewellery, readymade garments, and chemicals contributed to decline in goods exports.
• However, half of the top thirty export items, including engineering, electronics, pharmaceuticals, and some agriculture goods have shown growth during August 2023.
• India’s imports in August 2023 have declined 5.23% to $58.64 billion.
• Imports of petroleum, coal and coke, pearls, precious and semi-precious stones, and fertilizers have fallen as per the quick estimates released by the Commerce and Industry Ministry on 15 September 2023.
• Trade deficit in August 2023 was at ten-month high level of $24.16 billion.
• Engineering goods exports have turned positive after eight continuous months of year-on-year decline.
• Oil imports in August 2023 declined 23.76% to $13.2 billion. Gold imports in August 2023 increased 38.75% to $4.93 billion.
• In April-August 2023, exports declined by 11.9% to $172.95 billion.
• In the same period, imports declined by 12% to $271.83 billion. Trade deficit in April-August 2023 contracted to $98.88 billion.

Topic: Reports and Indices

7. As of March 2023, Central Bank Digital Currency (CBDC) or e-rupee worth ₹16.39 crore is in circulation.

• This is according to data from RBI’s Handbook of Statistics on the Indian Economy for FY23.
• The data showed that out of total e-rupee circulation, ₹10.69 crore was wholesale CBDC and ₹5.70 crore was retail CBDC.
• The circulation was highest for ₹500 CBDC notes at ₹2.71 crore. This was followed by ₹200 notes at 1.16%.
• Circulation for all other currency denominations of 50 paise to ₹100 was below 1%. It ranged between 0.01- 0.83%.
• The total flow of resources to the commercial sector increased 31% year-on-year (yoy) in FY23.
• The share of banks increased from 46% in FY22 to 59% of the total flow and the share of non-banks declined from 54% to 41% as per RBI’s Handbook of Statistics on the Indian Economy 2022-23.
• The total flow of resources to the commercial sector stood at ₹29,49,176 crore in FY23 against ₹22,51,703 crore in FY22.
• Under the non-bank category, the resource floe to commercial sector from domestic sources in FY23 was higher at 70%.
• The flow from foreign sources decreased sharply from 52% to 30%.

Topic: Appointments

8. Rahul Navin has been appointed as in-charge director of the Enforcement Directorate.

• The central government has appointed Rahul Navin as in-charge director of the Enforcement Directorate till the name of the regular director is announced or until further orders.
• Rahul Navin is a 1993-batch- IRS officer. He has assumed charge in place of Sanjay Kumar Mishra.
• Earlier, Navin has served as the chief vigilance officer of the ED headquarters.
• With his appointment, Navin has become the most senior officer within the central probe agency.
• In July, the Supreme Court granted an extension of tenure to ED chief Sanjay Mishra till September 15 with no further extension.
• Directorate of Enforcement:
  • It investigates offences of money laundering and violations of foreign exchange laws.
  • It is responsible for the enforcement of the Foreign Exchange Management Act 2019 (FEMA), Fugitive Economic Offenders Act, 2018, and certain provisions under the Prevention of Money Laundering Act.
  • It works under the Union Finance Ministry.
  • Its headquarters is located in New Delhi and is headed by the Director of Enforcement.

Topic: Awards and Prizes

9. CAG received Rajbhasha Kirti Puraskar for better implementation of the Official Language Policy.

• The office of the Comptroller and Auditor General of India (CAG) has bagged ‘Rajbhasha Kirti Puraskar’ by the Home Ministry for the “outstanding implementation” of Official Language Policy.
• The award was presented by Minister of State for Home Ajay Kumar Mishra to the Director General (Rajbhasha) of the CAG office in Pune.
• This award has been given for the outstanding implementation of the Official Language Policy by CAG in 2022-23.
• For the better implementation of ‘rajbhasha policies’, the CAG had formed a committee in ‘Hindi Pakhwada 2022’.
• ‘Hindi Pakhwada 2023 is being organized in the Office of the Comptroller and Auditor General of India from September 14 to September 29.
• The main objective of this initiative is to create awareness about official work through Hindi and to promote the use of Hindi.
• According to Article 343 of the Constitution, the official language of the Union is Hindi and the script is Devanagari.
• Comptroller and Auditor General of India (CAG):
  • CAG is an independent authority established under Article 148 of the Indian Constitution.
  • He is appointed by the President of India. He is the head of the Indian Audit and Accounts Department. G. C. Murmu is the current CAG of India.

Topic: Banking/Financial/Govt Schemes

10. Vishwakarma scheme was launched by PM Modi on September 17.

• The Centre's new scheme for artisans, PM Vishwakarma, was formally launched on the occasion of Vishwakarma Jayanti.
• The scheme was mentioned by PM Modi on Independence Day and the Cabinet Committee on Economic Affairs had recently allotted ₹13,000 crore for the scheme.
• The scheme is available to traditional craftsmen and artisans for five financial years from 2023-24 to 2027-28.
• This scheme's focus is driven to financially support the artisans and craftsmen and keep the age-old tradition, culture, and diverse heritage alive and thriving through local products, arts, and crafts.
• Under the scheme, artisans can register in the PM Vishwakarma portal using biometrics.
• They will be provided recognition through the PM Vishwakarma certificate and ID card and skill upgradation involving basic and advanced training.
• It also includes a toolkit incentive of ₹15,000, collateral-free credit support up to ₹1 lakh (first tranche) and ₹2 lakh (second tranche) at a concessional interest rate of 5%, an incentive for digital transactions, and marketing support.
• PM Vishwakarma scheme was approved by Union Cabinet in August 2023.

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