Banking Awareness of 17, 18 and 19 February 2022

Topic: Awards and Prizes

1. RailTel wins ICAI financial reporting excellence award.

• RailTel has won the ICAI award for excellence in financial reporting in the Public Sector Entities category for the year 2020-21.
• RailTel has been adjudged as winner in the 'plaque' category.
• The award has been conferred by the Institute of Chartered Accountants of India (ICAI), the country's preeminent accounting body.
• Despite the Covid epidemic, RailTel has recorded its highest-ever consolidated income of Rs 1,411 crore in FY 20-21, with an increase of 21%.
• ICAI award was established to encourage higher standards in the preparation and presentation of financial statements information. The award has been given by ICAI annually.
• RailTel is a "Mini Ratna (Category-I)" Central Public Sector Enterprise. It was founded in 2000.

Topic: RBI

2. The deadline for NBFCs to comply with new NPA recognition norms extended by six months.

• The deadline for Non-Banking Financial Companies (NBFCs) to adhere to new NPA recognition norms has been extended by RBI by six months.
• Earlier, 31 March, 2022 was the deadline for NBFCs to upgrade NPAs only after all arrears and principal dues are paid.
• NBFCs will now have time till 30 September, 2022 to put in place the necessary systems to implement this provision.
• RBI has also issued a clarification that loans classified as NPA will be upgraded to the standard category only if all dues are paid.
• Non-Banking Financial Companies (NBFCs):
  • Non-Banking Financial Companies (NBFCs) are companies registered under the Companies Act, 1956 and regulated by RBI under RBI Act, 1934.
  • NBFCs are not allowed to accept demand deposits. Their depositors do not get a deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation. So, they are different from banks.

Topic: Banking System

3. Six banks announce subscription to the shares of IDRCL.

• Six banks have announced subscription to the shares of India Debt Resolution Company Ltd (IDRCL).
• These banks are State Bank of India, Bank of Baroda, Punjab National Bank, Union Bank of India, Canara Bank, and Bank of Maharashtra.
• State Bank of India, Bank of Baroda, Union Bank of India each have subscribed to 99,000 shares of IDRCL. PNB has subscribed to 90,000 shares.
• Canara Bank has subscribed to 1.20 lakh shares. Bank of Maharashtra has subscribed to 50,000 shares.
• National Asset Reconstruction Company Ltd (NARCL) and IDRCL have been established by public sector and private sector banks and financial institutions.
• Public Sector Banks and financial institutions will hold a maximum of 49% stake in IDRCL. Private sector banks will hold the rest.
• Public Sector Banks will hold 51% ownership in NARCL. Private Sector banks will have the rest.

Topic: Awards and Prizes

4. South Indian Bank wins Best Technology Bank of the Year award.

• South Indian Bank has won Best Technology Bank of the Year award at 17^th edition of the annual IBA Banking Technology Awards.
• It has won total six out of the seven awards in the categories given below.
  • Winner - Best Technology Bank of the Year (Small Banks)
  • Winner - Best IT Risk Management and Cyber Security Initiatives (Small Banks)
  • Winner - Best Fintech Collaboration (Small Banks)
  • Joint winner - Best Use of AI/ML and Data Analytics (Small Banks)
  • Runner Up - Best Cloud Adoption (Small Banks)
  • Joint Runner Up - Best Payments Initiatives (among all private banks)
• South Indian Bank is a private sector bank. It is headquartered in Thrissur, Kerala.

Topic: Infrastructure and Energy

5. Green Hydrogen/ Green Ammonia Policy released by Ministry of Power.

• The policy deals with production of Green Hydrogen/ Green Ammonia using renewable sources of energy.
• Important highlights of the policy are given below:
  • Manufacturers of Green Hydrogen/Ammonia can buy renewable power from the power exchange or establish renewable energy capacity themselves or through any other, developer, anywhere.
  • Green Hydrogen / Ammonia producers can bank their unconsumed renewable power with a distribution firm for up to 30 days and take it back when needed.
  • Manufacturers of Green Hydrogen and Green Ammonia will be allowed waiver of inter-state transmission charges for a period of 25 years for the projects commissioned before 30 June 2025.
  • Ministry of New and Renewable Energy will set up a single portal for carrying out all the activities including statutory clearances in a time bound manner to ensure ease of doing business.
• The policy is a step towards National Hydrogen Mission, which was launched by Hon’ble Prime Minister on 15 August, 2021.
• The mission aims to help government in meeting its climate targets and making India a green hydrogen hub.
• This will help India in meeting the target of production of 5 million tonnes of Green hydrogen by 2030.
• Hydrogen/Ammonia produced by using power from renewable energy is termed as Green Hydrogen/Green Ammonia.

Topic: Reports and Indices

6. CPI-AL&RL continues to decrease in January.

• All-India Consumer Price Index for Agricultural Labourers and Rural Labourers (CPI-AL&RL) continued to decrease in January 2022.
• In comparison with December 2021, CPI-AL&RL decreased by 2 and 1 point to reach at 1,095 and 1,105 points, respectively.
• In case of agricultural labourers, 11 states recorded decrease and 9 states recorded increase. Tamil Nadu was at top with 1,292 points. Himachal Pradesh was at the bottom with 869 points.
• In case of rural labourers, 10 states recorded a decrease and 8 states recorded an increase. There was no change in the index in case of Madhya Pradesh and Odisha.
• The decline in index is mainly due to decrease in prices of pulses, mustard-oil, fresh fish, sugar, gur, onion, vegetables and fruits.
• The base year for CPI (AL) and CPI (RL) is 1986-87. Both are compiled and released by the Labour Bureau in the Ministry of Labour.

Topic: Miscellaneous

7. India and UAE sign CEPA.

• India and UAE have signed Comprehensive Economic Partnership Agreement (CEPA).
• CEPA is expected to increase in bilateral trade between two countries from current $60 billion to $100 billion in the next five years.
• Union Commerce and Industry Minister Piyush Goyal said that the agreement will provide job opportunities to the tune of 1 million for youth.
• India and UAE have started the negotiations for CEPA in September 2021 and now it has been completed.
• UAE is currently India’s third-largest trade partner and the bilateral trade between the two countries is around USD 60 billion.
• UAE is currently India’s second-largest export destination, after the US.
• A Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement between two countries. It covers negotiation on trade in services and investment, and other areas of economic partnership.
• India has signed CEPA with many countries like South Korea and Japan.
• Preferential Trade Agreement (PTA), Free Trade Agreement (FTA), Comprehensive Economic Cooperation Agreement (CECA) and CEPA are different types of trade agreements. 

Topic: RBI

8. RRA 2.0 suggests elimination of paper-based returns.

• Regulations Review Authority (RRA 2.0) has suggested elimination of paper-based returns and recommended withdrawal of additional 100 circulars in its second group of recommendations.
• It has pointed out 65 regulatory returns. They would either be stopped/merged with other returns or be converted into online returns.
• RRA had earlier recommended withdrawal of 150 circulars in first group of recommendations made in November 2021.
• Further, creation of a separate Web page, ‘Regulatory Reporting’ on the RBI website has also been recommended.
• The webpage will consolidate information on regulatory reporting and return submission by regulated entities at a single source. 
• RRA 2.0 was formed in April 2021 with an aim to lower down compliance burden on regulated entities.  

Topic: Awards and Prizes

9. Karnataka Bank wins three banking tech awards.

• Karnataka Bank has won three banking tech awards at the 17^th Annual Banking Technology Conference and Awards: 2020-21 Next Gen Banking.
• Karnataka Bank has won runner up awards under categories of Best Technology Bank of the Year, Best Fintech Adoption and Best Use of AI/ML & Data Analytics.
• Karnataka Bank is a Scheduled Commercial Bank based in Mangaluru in Karnataka. It is a private sector bank.

Topic: Appointments

10. Sanjay Malhotra nominated as a Director on Central Board of RBI.

• Central government has nominated Sanjay Malhotra, Secretary, Department of Financial Services (DFS), Ministry of Finance, as a Director on the Central Board of RBI.
• His nomination has become effective from February 16, 2022 and until further orders.
• He succeeded Debashish Panda, who completed his term on January 31, 2022.
• Central Board of RBI:
  • The RBI Central Board consists of 21 members, including the Governor and four deputy governors.
  • Central board of directors governs RBI’s affairs. Its function is general superintendence and direction of the RBI's affairs.
  • Government of India appoints board in keeping with the Reserve Bank of India Act.

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