Banking Awareness of 18, 19 and 20 August 2022

Topic: RBI

1. The licence of Deccan Urban Co-operative Bank, Vijayapur, Karnataka has been cancelled by RBI.

• RBI said the cooperative bank does not have adequate capital and earning prospects.
• The cooperating bank ceased to conduct banking business with effect from the close of business on 18 August 2022.
• RBI also said the ban would not be able to pay its depositors in full.
• More than 99% of the depositors are entitled to receive their full deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC).
• Commissioner for Cooperation and Registrar of Cooperative Societies, Karnataka has been requested by RBI to issue an order for winding up of the bank and appoint a liquidator for the bank.
• RBI has imposed a ₹5,93,000 penalty on Obopay Mobile Technology India Private Limited for non-compliance with provisions of norms on Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC).

Topic: Indian Economy/Financial Market

2. Inflation rate based on the CPI-AL and CPI-RL stood at 6.60% & 6.82% respectively in July, 2022.

• Inflation rate based on the CPI-AL and CPI-RL stood at 6.43% & 6.76% respectively in June, 2022.
• In July 2021, inflation rate based on the CPI-AL and CPI-RL stood at 3.92% and 4.09% respectively.

• Food inflation for agricultural labourers and rural labourers stood at 5.38% & 5.44% in July, 2022.
• It stood at 5.09% & 5.16% respectively in June, 2022. It stood at 2.66% & 2.74% respectively in July 2021.
• All-India Consumer Price Index Number for Agricultural Labourers and Rural Labourers (Base: 1986-87=100) for July, 2022 increased by 6 points each to stand at 1131 and 1143 points respectively.
• Food group was major contributor to the rise in general index of Agricultural Labourers and Rural Labourers.
• The CPI -AL for fuel and light only increased marginally. CPI-RL for fuel and light also increased marginally from June 2022 to July 2022.
• The CPI – AL and RL for the August, 2022 will be released on 20^th September, 2022.

Topic: Banking System

3. Rajasthan accounted for the largest portion of the total cost of projects approved by banks and financial institutions in 2021–2022.

• It retained the top place for two consecutive years. It was followed by Uttar Pradesh and Gujarat.
• As per the article published in RBI bulletin, 56.4% of the projects were taken up in Rajasthan, Uttar Pradesh, Gujarat, Maharashtra and Tamil Nadu during 2021-22.
• The article is titled 'Private Corporate Investment: Growth in 2021-22 and Outlook for 2022-23'.
• The share of top 5 states increased from an average share of 40.7% during 2012-12 and 2019-20 to more than 50% during the last two years.
• The majority of capex projects continued to come from the infrastructure sector, led by 'power' and 'road and bridges' sectors.

Topic: Agriculture

4. Natural rubber production in India increased to a 9 year high level in 2021-22.

• However, imports increased to three year high level of 5.46 lakh tonne (lt) as consumption increased to record level of 12.38 lt.
• The area under rubber during FY22 was record high. The tappable area under rubber was also high.  
• The average yield increased to 1,472 kg/ha in 2021-22. It is measured in terms of production per hectare of the tapped area.
• The Rubber Board has identified vast land in North East region and West Bengal for rubber cultivation.
• "NE-MITRA" (North East Mission of Tyre Industry for Rubber Augmentation) project has been conceived by Rubber Board to develop rubber plantations in those areas.
• Rubber consumption in India is expected to reach 15 lakh tonne by 2025-26.
• Tripura is India’s second largest natural rubber producing state after Kerala.

Topic: Taxation

5. Mobile handset’s display assembly imported with or without back support will attract Basic Customs Duty of 10%.

• The rate of Basic Customs Duty will be 15% if display assembly comes with various components like sim tray, antenna pin, speaker net, power key, slider switch, battery compartment etc.
• If back support frame is imported individually, it will attract a Basic Customs Duty of 15%.
• Central Board of Indirect taxes & Custom (CBIC) said there have been instances of mis-declaration.
• Recently, companies such as Vivo and Oppo were booked by Directorate of Revenue Intelligence (DRI) for mis-declaration of certain items.
• Basic Customs Duty:
  • Basic Customs Duty means the customs duty levied under the Customs Act 1962.
  • All goods imported into India are charged a duty under section 12 of Customs Act, 1962. This duty is popularly known as basic customs duty.

Topic: Banking System

6. Federal Bank will felicitate 75 farmers from Kerala under the campaign, ‘Joy of Freedom’.

• Under the campaign, Federal Bank will give 75 farmers a cash reward of ₹10,000 each.
• The campaign is being launched to celebrate 75 years of independence.
• Department of Agriculture and Farmers’ Welfare, Government of Kerala will select the beneficiaries.
• Federal Bank:
  • It is an Indian private sector bank with headquarters in Aluva, Kochi.
  • Shyam Srinivasan is CEO of Federal Bank. Its tagline is your perfect banking partner.

Topic: Appointments

7. Mohammad Mustafa’s name for the post of NABARD Chairman has been recommended by FSIB.

• The Appointments Committee of the Cabinet will take the final decision on the name recommended by Financial Services Institutions Bureau (FSIB).
• Mohammad Mustafa has served as the Chairman and Managing Director (CMD) of the Small Industries Development Bank of India (SIDBI).
• He had also worked as CMD of the National Housing Bank from 2014-15.
• National Bank for Agriculture and Rural Development (NABARD):
  • It was founded in July 1982 and is headquartered in Mumbai. It is under the jurisdiction of the Ministry of Finance.
  • It is an apex regulatory body for the regulation of regional rural banks and apex cooperative banks in India.
  • It also looks after the development of the cottage industry, small-scale industry and village industry, and other rural industries.

Topic: Regulatory Bodies/Financial Institutions

8. India-registered AIFs and VCFs has been allowed by SEBI to invest in foreign entities without having an India connection.

• The norms on alternate investment fund (AIF) and venture capital fund (VCF) investments in overseas firms has been relaxed by SEBI.
• Earlier, overseas investments by AIFs and VCFs were allowed in only those companies that have a connection to India or at least a back-office in India.
• AIFs and VCFs are still not allowed to invest in companies incorporated in countries not following global money laundering norms.
• They are not allowed to invest in companies incorporated in countries that don’t have bilateral MoU with SEBI.
• They are not allowed to invest in companies incorporated in jurisdictions which are blacklisted or face restrictions by FATF.
• AIFs and VCFs are allowed to invest in a company, which is incorporated in a country whose securities market regulator is a signatory to the International Organization of Securities Commission's Multilateral Memorandum of Understanding.
• AIFs and VCFs are allowed to invest in a company, which is incorporated in a country whose securities market regulator is a signatory to the bilateral pact with SEBI.
• SEBI has asked all AIFs and VCFs to disclose in a specified format all overseas investments sold/divested by them till date, within 30 days.

Topic: Taxation

9. CBIC has increased threshold for launching prosecution and arrest from ₹20 lakh to ₹50 lakh in case of smuggling.

• Central Board of Indirect Taxes and Custom (CBIC) has increased threshold for launching prosecution and arrest from ₹1 crore to ₹2 crore in case of duty evasion.
• In outright smuggling cases, prosecution will be launched if the market value of the goods involved is ₹50 lakh or more.  
• This limit will also apply to high value goods such as precious metal, restricted items or prohibited items or foreign currency.
• Threshold in case of commercial fraud has been increased from ₹10 million to ₹20 million.

Topic: Awards and Prizes

10. Ministry of Corporate Affairs announced National CSR Awards 2020 winners.

• CSR experts and the Grand Jury selected 20 award winners and 17 Honourable Mentions across three categories.
• The National Corporate Social Responsibility (CSR) Awards are given to recognize companies that have positively impacted society through their innovative & sustainable CSR initiatives.
• These awards are the apex level recognition by the Government of India.
• First National CSR Awards were given on 29 October 2019.
• The main categories of the CSR Awards are given below:
  • Corporate Awards for Excellence in CSR:  Given to a company based on total eligible CSR spending.
  • CSR Awards for CSR in Aspirational Districts / Difficult Terrains: Given to a company based on their CSR efforts in Aspirational Districts, difficult terrains/ disturbed areas, challenging circumstances, etc.
  • CSR Awards for contribution in National Priority Areas: Winners are selected based on the contribution of CSR projects in National Priority Areas.

Topic: National News

11. Over 79 lakh children in the 0-5 age group have been enrolled by UIDAI in April to July of FY 23 as part of the Bal Aadhaar initiative.

• 2.64 crore children in the 0-5 age group had Bal Aadhaar by the end of March 31, 2022.
• The number of children in the 0-5 age group having Bal Aadhaar increased to 3.43 crore by the end of July 2022.

• In states like Himachal Pradesh and Haryana, enrollment of children in the 0-5 age group has already reached more than 70% of the targeted age group.

• Overall, Aadhaar saturation at present is around 94%. Aadhaar saturation among adults is almost 100%.
• Bal Aadhaar is issued to children in the age group of 0-5 years. It was introduced by UIDAI in 2018.
• Biometrics (fingerprints and iris) are not collected for Aadhaar enrolment of children in the age group of 0-5 years.

• Children between the ages of 0 and 5 are enrolled in Aadhaar based on a facial image of the child and biometric authentication of the parent or legal guardian (having a valid Aadhaar).
• At the time of enrolment for Bal Aadhaar, a proof of relationship document (preferably birth certificate) is collected.
• Bal Aadhaar is issued in blue colour to differentiate it from normal Aadhaar. 
• Unique Identification Authority Of India (UIDAI):
  • It was established as a statutory authority under the Aadhaar Act 2016.
  • It works under the Ministry of Electronics and Information Technology. Dr. Saurabh Garg is its Chief Executive Officer.

Read Banking Awareness PDF of 18, 19 and 20 August 2022