Banking, Financial and Economic Awareness

Half Yearly (Jan - June 2021)
2021 Book

Banking Awareness

Topic: Reports and Indices

1. Commerce & Industry Minister Piyush Goyal says that India can be among top 25 in Global Innovation Index.

  • Commerce & Industry Minister Piyush Goyal said that India can be among the top 25 in Global Innovation Index.
  • He said a collaborative model to map best innovation practices will take India to the top 25 countries in Global Innovation Index from the current 48th rank in 2020.
  • He was addressing the industry virtually at the National IP Awards on August 17, 2021 hosted by CII.
  • He announced an 80% lowering of fee for the filing of IPRs for all recognised educational institution in India and abroad.
  • Total fee for an institute will be reduced to ₹84,900. It is ₹4,24,500 now.

Topic: Reports and Indices

2. Value e-commerce segment in India to increase to $40 billion market.

  • Value e-commerce segment in India to increase to $40 billion market as per global consulting firm Kearney’s report titled as ‘Value e-commerce: The next Big Leap in India’s Retail Market’.
  • The report says that the value e-commerce segment in India’s lifestyle retail market will grow from $4 billion in 2019 to $20 billion in 2026 and $40 billion in 2030.
  • The report says that India is likely to have 110 crore Internet users and 35 crore online shoppers by 2026.
  • The e-commerce in value lifestyle retail segment could grow from 4 % to 13 % by 2026.
  • As per the report, India’s growth in mobile internet from 320 million users in 2015 to 600 million users in 2019 has started to affect the way consumers make buying decisions.
  • Only 20%-25% of people with Internet access use online platforms for commerce and this is imbalanced towards metro and tier-1 consumers.
  • But, active Internet use in rural towns and in tier-3 and tier-4 towns is gradually growing.
  • Value e-commerce means offering users good quality merchandise at affordable prices.

Topic: Indian Economy

3. WPI inflation decreases for the second consecutive month to 11.16% in July.

  • Wholesale Price Index (WPI) inflation decreased for the second consecutive month to 11.16% in July.
  • As per the office of the Economic Advisor in the Department for Promotion of Industry and Internal Trade (DPIIT), high rate of inflation in July 2021 is mainly due to the low base effect.
  • Rise in prices of crude petroleum and natural gas, mineral oils, manufactured products like basic metals, food products, textiles, chemicals and chemical products is also the reason for the high inflation rate.
  • According to the experts, the rate of inflation will continue to be in double digits for few months at least.

Topic: RBI

4. RBI implementing PRISM to improve compliance by supervised entities.

  • RBI is implementing a Platform for Regulated Entities for Integrated Supervision and Monitoring (PRISM) to improve compliance by supervised entities.
  • PRISM is a web-based end-to-end workflow automation system to improve compliance by supervised entities.
  • PRISM will have functionalities such as inspection, compliance, incident functionality for cybersecurity, complaints, and returns functionalities.
  • It has built-in remediation workflows, time tracking, notifications and alerts, management information system (MIS) reports and dashboards.

Topic: Banking System

5. RBI allows HDFC Bank to issue new cards.

  • RBI has relaxed restrictions placed on HDFC Bank and allowed it to issue new cards.
  • In December and February, RBI had issued orders to HDFC Bank on incidents of outages in the internet banking /mobile banking/payment utilities of the bank over the past two years.
  • The HDFC Bank said that it will continue to work with RBI and ensure compliance on all parameters.
  • HDFC Bank Limited is headquartered in Mumbai. HDFC Bank is India‘s largest private sector bank. It was founded in 1994. CEO of HDFC Bank is Sashidhar Jagdishan.

Topic: Reports and Indices

6. Global cryptocurrency adoption increased among individual investors in the past year.

  • As per crypto-analysis firm Chainalysis, global cryptocurrency adoption increased among individual investors in the past year.
  • Chainalysis said that global crypto adoption increased 881% in the past 12 months.
  • Chainalysis Global Crypto Adoption Index ranked 154 countries by three main metrics. The ranking of both China and US dropped.
  • Global Crypto Adoption Index 2020 was made up of four metrics. This year it used three metrics.
  • The Bloomberg Galaxy Crypto Index has increased about 380 % in the past year. Bloomberg Galaxy Crypto Index is designed to assess the performance of largest digital assets traded in USD.

Topic: Banking System

7. FRUITS portal launched by KVG Bank.

  • ‘Farmer Registration and Unified Beneficiary Information System’ (FRUITS) portal has been launched by Karnataka Vikas Grameena (KVG) Bank.
  • The Bank has launched the portal in association with the Karnataka government. FRUITS portal is the first of its kind in the country wherein the land and other details of all the farmers in the State are being captured.
  • All the farmers will be registered and given a FRUITS ID (FID) number. With the help of FID number, financial and lending institutions can access the land details of farmers as well as their borrowings.
  • This will help financial and lending institutions in taking a quick decision on lending to them depending on their requirements.

Topic: Reports and Indices

8. RBI introduces Financial Inclusion Index (FI-Index) to capture the extent of financial inclusion across the country.

  • RBI has introduced the Financial Inclusion Index (FI-Index) to capture the extent of financial inclusion across the country.
  • It is a comprehensive index, which incorporates details of banking, investments, insurance, postal as well as the pension sector in consultation with government and respective sectoral regulators.
  • It captures information on different aspects of financial inclusion in a single value, which ranges between 0 and 100. 0 shows complete financial exclusion and 100 shows full financial inclusion.
  • It comprises of three parameters viz., Access (weightage 35%), Usage (weightage 45%) and Quality (weightage 20%). Each of these aspects consists of various dimensions. The dimensions are computed based on a number of indicators.
  • The Index is responsive to ease of access, usage of services, and quality of services, comprising all 97 indicators.
  • Quality parameter is a unique feature of the Index. It captures the quality aspect of financial inclusion.
  • The FI-Index has been constructed without any ‘base year’. The annual FI-Index for the period ending March 2021 is 53.9 as against 43.4 for the period ending March 2017. FI-Index will be published annually in July every year.
  • RBI had made an announcement about the creation of Financial Inclusion Index in the first Bi-monthly Monetary Policy Statement for 2021-2022 on 17 April.

 

 

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