Banking Awareness of 18, 19 and 20 September 2022

Topic: RBI

1. RBI has permitted Bharat Bill Payment System (BBPS) to process cross-border inbound remittances.

• Foreign inward remittances received under the Rupee Drawing Arrangement (RDA) have been allowed by RBI to be transferred to the KYC compliant bank account of the beneficiary through BBPS.
• Presently, such foreign inward remittances can be transferred to the KYC compliant beneficiary bank accounts through electronic mode, such as, NEFT, IMPS.
• Rupee Drawing Arrangement (RDA) is a channel to receive cross-border remittances from overseas jurisdictions.
• Under RDA, Authorised Category I banks enter into partnerships with the non-resident Exchange Houses in the FATF compliant countries to open and keep their Vostro Account.
• Bharat Bill Payment System (BBPS) is a RBI mandated system. It is an integrated bill payment system offering interoperable and accessible bill payment service.

Topic: Banking System

2. A pilot for instant Kisan Credit Card lending in Tamil Nadu have been launched by Federal Bank.

• Reserve Bank Innovation Hub, a subsidiary of Reserve Bank of India (RBI) has developed the instant KCC.
• Earlier this month (September), RBI announced the pilot for KCC lending in Madhya Pradesh and Tamil Nadu with Union Bank of India and Federal Bank, respectively, as partner banks.
• Federal Bank has been ranked 63^rd in Best Workplaces in Asia 2022 by Great Place to Work.
• It has become the only bank in India to be listed by Great Place to Work.
• This recognition is based on confidential survey data assessing employee experiences. 
• 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: Banking System

3. Union Bank of India has launched end-to-end digitalization of Kisan Credit Card (KCC) product for farmers under its Sambhav project.

• The products aim to overcome the challenges faced by farmers in getting the KCC.
• It seeks to make the KCC lending process more efficient and farmer friendly.
• The digitalization of KCC is the Bank’s Fintech initiative in collaboration with the Reserve Bank Innovation Hub (RBIH).
• Union Bank of India was founded in 1919. Its CEO is A. Manimekhalai. It is headquartered in Mumbai. It is a government-owned bank.

Topic: RBI

4. RBI has said UCBs under Tier 4 category shall put in place a Board-approved policy by April 1, 2023.

• RBI has also said UCBs under Tier 4 category shall put in place a Compliance Function, including the appointment of a Chief Compliance Officer (CCO) by April 1, 2023. 
• According to RBI, the UCBs under Tier 3 category shall implement the same by October 1, 2023.
• UCBs under Tier 4 category are UCBs with deposits more than ₹10,000 crore.
• UCBs under Tier 3 category are UCBs with deposits more than ₹1000 crore and up to ₹10,000 crore.
• As per the RBI framework, the aforementioned categories of UCBs shall lay down Board-approved Compliance Policy, which is to be reviewed at least once a year.
• The CCO should be appointed for a minimum fixed tenure of 3 years.
• The CCO will have direct reporting lines to the MD & CEO and / or Board / Board Committee.
• Compliance risk is the risk of legal or regulatory sanctions, material financial loss or loss of reputation an Urban Cooperative Bank (UCB) may suffer.

Topic: Banking System

5. Public Sector Banks have cleared digital lending of ₹83,091 crore in the financial year ending March 2022.

• Under EASE 4.0 reforms, state-owned banks were to focus on digital lending, technological resilience for 24x7 banking, co-lending with non-banking firms and agriculture financing.
• Launched in 2018, Enhanced Access and Service Excellence (EASE) program sets a common reforms agenda for public-sector banks every year.
• EASE program is driven by Indian Banks' Association (IBA). According to IBA, FM Nirmala Sitharaman felicitated top performing banks on various parameters.
• Bank of Baroda won the first prize among all Public Sector Banks for the best overall performance on PSB Reforms EASE Agenda 4.0.
• Indian Bank emerged as the ‘Top Improver.’ Canara Bank won first prize under the Institutionalizing Prudent Banking category.
• Union Bank of India won first prize under the governance and outcome-centric HR category.

Topic: Banking System

6. Institute for Development and Research in Banking Technology (IDRBT) has developed new technology.

• Due to this technology, it will be possible for people in remote areas without satellite signal to access banking services.
• As per D. Janakiram, Director of IDRBT, a new dedicated low cost financial network has been created.
• This can be used privately by banks to send encrypted texts to conduct financial transactions.
• IDRBT is the first in the world to develop this network based on LoRa (Long Range Radio) technology.
• LoRa is a wireless modulation technique. It allows long-range communication using chirp spread spectrum.
• It uses dedicated radios, not present in end-user devices, thus limiting interferences from other devices.
• This can be used by banks as their own private network instead of a third-party network based either on satellite link or wired.
• The cost of the LoRa financial network is estimated to be 20% cheaper.
• The institute had successfully carried out a pilot for the technology. It is in the process of filing a LoRa based financial network.
• IDRBT is located in Hyderabad, Telangana. It was established in 1996. Its current director is D. Janakiram.

Topic: Regulatory Bodies/Financial Institutions

7. SEBI has put initial public offering (IPO) from Digit Insurance on hold.

• SEBI has said the company's IPO was kept in 'abeyance'. It did not offer explanation for its action.
• The company aimed to raise around $440 million through an initial public offering.
• It is backed by Canadian billionaire Prem Watsa's Fairfax Group.

Topic: Miscellaneous

8. Prime Minister Narendra Modi launched NLP on 17 September in New Delhi.

• Unified Logistics Interface Platform (ULIP) is an important initiative under the National Logistics Policy (NLP).
• ULIP will bring all the digital services related to the transportation sector into a single portal.
• Under the policy, a new digital platform is Ease of Logistics Services (E-Logs).
• It will help industry associations to directly take up matters which are causing problems in their operations with the government agencies.
• The need for a National Logistics Policy was felt because of the high logistics costs in India as compared to other developed countries.
• The National Logistics Policy will assist in lowering India's logistical expenses to increase the competitiveness of Indian goods in the global market.
• PM pointed out we must bring the logistics cost from 13% to a single digit number as soon as possible.
• The growth in exports will increase by 5 to 8%, as a result of the decline in logistics costs.
• National Logistics Policy will address the issues by laying down an interdisciplinary, cross-sectoral and multi-jurisdictional framework for the development of the entire logistics ecosystem.
• The National Logistics Policy will give a boost to the GatiShakti National Master Plan.
• The Policy will be implemented through a Comprehensive Logistics Action Plan (CLAP).
• The interventions proposed under the CLAP are divided into eight key action areas.

Topic: Regulatory Bodies/ Financial Institutions

9. National Financial Reporting Authority (NFRA) has prohibited chartered accountant Rajiv Bengali for five years.

• NFRA has also imposed a penalty of ₹5 lakh on him.
• NFRA has awarded him punishment for his professional misconduct as an engagement partner in the Statutory Audit of Trilogic Digital Media Ltd (TDML) for the financial year 2016-17.
• Rajiv Bengali (of Subramaniam Bengali & Associates) can now not take up the role of a statutory auditor or an internal auditor of any company or body corporate for five years.
• National Financial Reporting Authority (NFRA) is the sole independent regulator for auditors.
• National Financial Reporting Authority (NFRA):
  • The government formed NFRA on 01st October 2018.
  • It supervises the work of auditors, establishes and enforces standards of accounting and auditing.
  • Dr Ajay Bhushan Prasad Pandey is its current chairperson.

Topic: Taxation

10. Gross direct tax collections increased 30% to ₹8.36 lakh crore till September 17 of the current fiscal year (FY 2022-23).

• This growth of 30% over collections of 2021-22 is due to increased advance tax collection.
• The cumulative advance tax collections for April-September is ₹2,95,308 crore as on September 17. This is an increase of 17% over the year-ago period.
• Gross collection of ₹8.36 lakh crore consists of Corporate Income Tax at ₹4.36 lakh crore and Personal Income Tax, including Securities Transaction Tax at ₹3.98 lakh crore.
• After adjusting for refunds, overall net direct tax collection collections grew by 23%.
• People whose estimated tax liability for the year is more than or equal to ₹10,000 shall pay Advance Tax under Section 208 of the Income Tax Act 1961.
• One can pay Advance Tax in four instalments by 15^th June (15% of total), September (45% of total), December (75% of total), and March (100% of total).

Topic: Awards and Prizes

11. Indian industrialist Dr Swati Piramal has been conferred France’s highest civilian honour.

• Dr Swati Piramal has received the Chevalier de la Legion d’Honneur (Knight of the Legion of Honour) for her contributions in the fields of business and industry, science, and medicine, and for strengthening Indo-French ties.
• Dr Swati Piramal is the vice chairperson of the Piramal Group, a business conglomerate spread across pharmaceuticals, financial services, real estate, and glass packaging.
• Catherine Colonna, France's Minister for Europe and Foreign Affairs, conferred the award to Dr Swati Piramal.
• In 2016, Dr Swati Piramal received France's second-highest civilian honour the Knight of the Order of Merit.
• Piramal is also a recipient of the Padma Shri and has served as a member of the Prime Minister of India's Trade Advisory Council and the Scientific Advisory Council.

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