Topic: Awards and Prizes
1. Fintech start-up TRaiCE has won NASSCOM-NIPP GCC award.
- TRaiCE Inc has won NASSCOM-partnered NIPP GCC Fintech Challenge in the ‘Predictive Analytics for Customer Retention’ category.
- It has won award for using predictive AI to help lenders improve operational efficiencies for faster, safer financing.
- NPAs are a constant problem for banks. TRaiCE uses machine-learning-led predictive analytics to help lenders identify problem accounts early.
- TRaiCE Inc is a no-code AI-augmented early warning and Business Risk Monitoring System. It is a Kochi-based fintech start-up.
- In the NIPP GCC Fintech Challenge, supported by NASSCOM, start-ups can compete by presenting solutions for actual problems faced by businesses in the banking, insurance, and financial services industries.
Topic: Reports and Indices
2. India’s ranking in global crypto adoption index drops by two places.
- India’s ranking declined by two places to fourth place among 20 countries with the highest cryptocurrency adoption rate.
- In 2021, India was ranked at second place in Chainalysis’ Global Crypto Adoption Index.
- The Vietnam (1st), Philippines (2nd) and Ukraine (3rd) are the top three countries.
- The United States rose from eighth place in 2021 and sixth place in 2020 to fifth place in the Top 20 Global Crypto Adoption Index for 2022.
- In actuality, emerging markets made up 18 of the top 20 countries for crypto adoption.
- The United Kingdom is placed at 18th overall. After finishing thirteenth in the index in 2021, China reentered the top ten this year.
- India was ranked first in terms of things like the value of cryptocurrencies received from DeFi (decentralised finance) protocols and retail value received at centralised exchanges.
- Its overall ranking was however affected by a low peer-to-peer (P2P) exchange trade volume score.
- Chainalysis is an American blockchain analysis firm. It measures the grassroots adoption of cryptocurrency.
Topic: Banking System
3. Koo partners with India Post Payments Bank (IPPB) to promote financial inclusion in remote cities.
- Both have signed a MoU, which aims to bring together the synergies of Koo and IPPB to promote 'financial inclusion' and 'literacy' in tier 2, tier 3, and remote cities.
- Indian microblogging platform Koo said the MoU will help in communicating via Koo’s language communities using Multi-Lingual Koo (MLK) features.
- Koo is an Indian microblogging and social networking service. It is based in Bengaluru. Aprameya Radhakrishna is its CEO.
- India Post Payments Bank:
- It was established by the Department of Posts under the Ministry of Communications.
- It was founded on 01 September 2018. Its CEO is J. Venkatramu. Its tagline is Aapka Bank, Aapke Dwaar.
- It is headquartered in New Delhi. It is a division of India Post which is under the ownership of the Department of Post under Ministry of Communications.
Topic: Banking System
4. State Bank of India reached Rs 5 lakh crore market capitalisation on 14 September 2022.
- With market capitalisation of Rs 5 lakh crore, SBI stood on the seventh position in the market capitalisation ranking.
- On 14 September 2022, State Bank of India became seventh Indian company to cross the ₹ 5-trillion market capitalisation on the Indian stock exchanges for the first time.
- SBI is the third lender in the country to surpass the market capitalisation of Rs 5 lakh crore.
- HDFC Bank held first rank in this list of lenders crossing market capitalisation of Rs 5 lakh crore. It was followed by ICICI Bank.
- State Bank of India (SBI):
- In 2017, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore were merged with State Bank of India.
- Its headquarters is in Mumbai, Maharashtra. Its tagline is The Banker to Every Indian. Dinesh Kumar Khara is its chairperson.
Topic: Indian Economy/Financial Market
5. Finance Ministry has released draft guidelines for Regional Rural Banks (RRBs) to raise resources from capital market.
- This paves the way for them to raise funds via rights issue, initial public offerings (IPO) and private placement with certain investors like large banks and insurance companies.
- Under the draft guidelines, before issuing shares through the IPO route, RRBs should issue bonus shares and a Rights Issue in consultation with merchant bankers and the sponsor bank.
- If the shareholding level of the concerned State Government (SG) in the RRB can be decreased to 15%, the Department of Financial Service may consult the concerned SG.
- The parameter for selection of RRBs for capital raising are given below.
- Net worth of at least ₹300 crore in each of the preceding three years
- Minimum Capital to Risk-weighted Assets Ratio above the regulatory requirement of 9% in each of the preceding three years
- Track record of profitability - pre-tax operating profit of minimum ₹15 crore for at least three out of previous five years
- Further, RRBs should have return on equity of minimum 10% in three out of preceding five years.
- They should have return on assets of minimum 0.5% in three out of preceding five years.
- Presently, there are 43 RRBs sponsored by 12 Scheduled Commercial Banks.
- Government of India (GoI), the respective State Governments (SGs), and the Sponsor Banks (SBs) jointly own RRBs, with equity contribution in the ratio (GoI: SG: SB: 50:15:35).
6. Ministry of Corporate Affairs has relaxed the paid up capital threshold for small companies.
- The threshold for paid up capital for small companies would be “not exceeding ₹4 crore”.
- The turnover threshold would be “not exceeding ₹40 crore”.
- Earlier, threshold for paid up capital was “not exceeding ₹2 crore” and turnover threshold was “not exceeding ₹40 crore”.
- This would facilitate Ease of Doing Business and reduced compliance burden for small companies.
- Those companies whose paid-up capital does not exceed ₹4 crore and turnover does not exceed ₹40 crore, will qualify as small companies.
- Hence they will avail the benefits available to small companies. Some of the benefits are given next.
- Filing an abridged annual return
- No mandatory rotation of auditor
- No need to report on the adequacy of the internal financial controls and its operating effectiveness in the auditor’s report
- Holding of only two board meetings in a year
- Annual returns can be signed by the company secretary or by a director of the company
- Lesser penalties
Topic: Indian Economy/Financial Market
7. According to estimates of Ind-Ra, India’s current account deficit increased to $28.4 billion (3.4% of GDP) in April-June quarter (1QFY23).
- This is against a deficit of $13.4 billion (1.5% of GDP) in January-March quarter (4QFY22).
- As per India Ratings & Research (Ind-Ra), India’s merchandise exports reached a record high level of $121.2 billion in 1QFY23.
- They are likely to slow down to $104.2 billion in 2QFY23.
- As per Ind-Ra, merchandise imports are expected to remain robust due to elevated global commodity prices and weak rupee.
- The merchandise imports grew 40.5% during July-August 2022 to $128.2 billion. They are expected to reach at $192.2 billion in 2QFY23.
- The agency highlighted that the volume of telecom instrument exports that increased by four times in the first quarter of FY23 is a positive development.
- India's wheat exports benefited from the conflict between Russia and Ukraine. In 1QFY23, India's wheat export volume quadrupled.
- India Ratings & Research (Ind-Ra):
- It is headquartered in Mumbai. It is a 100% owned subsidiary of the Fitch Group.
- It is recognised by the Securities and Exchange Board of India and Reserve Bank of India.
8. Karnataka had signed MoUs worth ₹1.3-lakh crore in the renewable energy space.
- Karnataka CM made this announcement while speaking at the inauguration of the fifth edition of the Indian Manufacturing Show (IMS).
- He said the government is building industrial parks at Gulbarga, Yadgir, and Mysuru.
- Karnataka aims to be a $1-trillion economy by 2025. It was the first State in India to offer Production Linked Incentives (PLIs) to the semiconductor and FMCG sectors.
- India Manufacturing Show 2022 is being organised by Laghu Udyog Bharati-Karnataka IMS Foundation in Bengaluru.
9. Government has lowered windfall tax on diesel exports, Air Turbine Fuel (ATF) exports and domestically produced crude.
- Ministry of Finance lowered windfall profit tax on diesel export to ₹8.50 per litre and jet fuel exports to ₹5 a litre.
- Earlier, these taxes were ₹13.5 and ₹9 a litre, respectively.
- The tax on domestically-produced crude oil has been lowered from ₹13,300 per tonne to ₹10,500 per tonne.
- New rates have become effective from September 17. India first imposed windfall profit taxes on July 1.
10. Serious Fraud Investigation Office (SFIO) arrested the "mastermind" behind shell firms with Chinese links.
- The Ministry of Corporate Affairs conducted simultaneous search and seizure operations on 8 September 2022 at the offices of Jillian Consultants India Private Limited, a wholly owned subsidiary of Jillian Hong Kong Limited, Gurgaon.
- The Serious Fraud Investigation Office (SFIO) has arrested the mastermind Dortse, a member of the Board of Jillian India Limited.
- He was the mastermind of the entire racket of getting several shell companies with Chinese links to enter India and providing fake directors on their boards.
- It was found that Husys Limited was also acting on behalf of Jilian India Limited.
- Serious Fraud Investigation Office (SFIO):
- It is India's statutory institution for investigating corporate fraud.
- Initially, it was established by a resolution adopted by the Government of India on 2 July 2003.
- SFIO was later accorded statutory status under Section 211 of the Companies Act of 2013.
- It is under the jurisdiction of the Ministry of Corporate Affairs, the Government of India.
- Director of SFIO: Keshav Chandra