Banking Awareness of 17 and 18 July 2022

By Priyanka Chaudhary | Last Modified: 18 Jul 2022 17:46 PM IST

Main Headlines:

Topic: MoUs/Agreements

1. RBI and Bank Indonesia signed an MoU on 16 July 2022 in Bali, Indonesia.

The Memorandum of Understanding (MoU) aims to improve mutual cooperation between them.
It also aims at strengthening the exchange of information and cooperation in the area of central banking.
It was signed on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting.
Bank Indonesia is the central bank of the Indonesia. Perry Warjiyo is its current governor.

Topic: Reports and Indices

According to the survey, the share is estimated to have declined from over 50% in 2016-17 to about 30% in 2020-21.
Advanced Economies, specifically the UK, the US and Singapore, accounted for 36% of total remittances in 2020-21 as per the survey.
US accounted for 23% of total remittances in 2020-21. It surpassed UAE as top source country.
The share of the traditional remittance recipient States of Kerala, Tamil Nadu and Karnataka has almost halved in 2020-21.
Maharashtra is the top recipient state. It surpassed Kerala.
Migration from states like Uttar Pradesh, Bihar, Orissa, and West Bengal to the Gulf countries has increased in recent years.
However, their share in remittances has remained significantly low.
India remained the top recipient country (with $89.4 billion inward remittances).
It accounted for 12% of total global remittances. A marginal decline of 0.2% was recorded in 2020 and a growth of 8% was recorded in 2021.
Private Banks retained their dominance in the remittances business.
In 2020-21, the share of private sector banks in overall banks' total remittances stood at 52.8%.
The share of public sector banks and foreign banks was at 39.4% and 7.8%, respectively. Public sector banks lost market share in the remittances business.

Topic: Appointments

He will take the position of Vikram Limaye, whose term at National Stock Exchange (NSE) ended on July 16.
Ashish Chauhan was one of the founding team members of NSE in 1992. He is currently the MD and CEO of Bombay Stock Exchange (BSE).
Chauhan’s appointment is subject to acceptance of the offer made to him.
Governing Board of NSE has appointed an Internal Executive Committee to run the affairs of the company. It will be dissolved upon the new MD & CEO assuming office.
National Stock Exchange (NSE):
- It is located in Mumbai, Maharashtra. It was incorporated in 1992.
- It was recognised as a stock exchange by SEBI in April 1993. It commenced operations in 1994.
- It launched NIFTY 50 Index 1996. It is the world’s largest derivatives exchange in 2021 by number of contracts traded.

Topic: Indian Economy/Financial Market

As per the notification of Finance Ministry, ZCZP instrument is an instrument issued by a not-for-profit organization.
This shall be registered with the social stock exchange (SSE) segment of a recognised stock exchange in accordance with the regulations made by SEBI.
The notification also includes ZCZP in the list of securities under Securities Contracts (Regulation) Act, 1956.
This list of securities currently includes shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities, derivative, units or any other instrument issued by any collective investment scheme.
This list of securities also includes security receipts, mutual fund units (excluding ULIPs), units issued by any pooled investment vehicle and government securities.
These securities can be traded on a recognised stock exchange. SEBI can regulate their trading.
In September 2021, SEBI board has approved a framework for social stock exchange (SSE) through which ZCZP can be issued. Neither any interest is paid nor is principal repaid under ZCZP.

Topic: Indian Economy/Financial Market

Agricultural and processed food product exports have increased by 14% in April-June of the financial year 2022-23 compared to the corresponding period of 2021-22.
Fresh fruit and vegetable exports registered an 8.6% growth.
Processed food products like cereals and miscellaneous processed items reported a growth of 36.4%.
Rice exports have shown growth of 13%. The export of meat, dairy and poultry products increased by 9.5%.

Topic: Indian Economy/Financial Market

The Guidance Note was initially issued in 2020 and Institute of Chartered Accountants of India (ICAI) has revised it now.
ICAI’s step to revise Guidance Note is in the wake of amendments made by the Government to Schedule III to the Companies Act, 2013 in March 2021.
Schedule III requires various disclosures to be made by companies in their financial statements.
CARO specifies the format of the auditor report on company financial statements.
Under the Companies Act 2013, there have been three versions of CARO (2015, 2016 and 2020).

Topic: Corporates/Companies

Google has made the investment in Airtel under its $10-billion India Digitization Fund.
Google has invested ₹33,737 crores and bought 7.73% stake in Jio Platforms after making an announcement about the India Digitization Fund.
Bharti Airtel (Airtel) has also successfully tested first 5G private network at Bosch Automotive Electronics India facility in Bengaluru.
India Digitization Fund was announced by Google in July 2020 to help accelerate India’s digital economy.

Topic: Banking System

Yes Bank has signed a binding term sheet with JCF ARC LLC and JC Flowers Asset Reconstruction for strategic partnership for sale of NPAs.
In March 2021, RBI rejected Yes Bank’s proposal to set up an asset reconstruction subsidiary.
There are currently 29 ARCs in the country, including National Asset Reconstruction Company Ltd (NARCL).
Yes Bank was founded in 2004. It is headquartered in Mumbai. Prashant Kumar is its MD and CEO.

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