Banking Awareness of 20, 21 and 22 February 2022

Topic: MoUs/Agreements

1. IIFL Home Finance and ADB sign $68-million loan agreement.

• IIFL Home Finance and Asian Development Bank (ADB) have signed $68-million loan agreement.
• The loan agreement has been signed to improve financial access to affordable green housing for lower-income groups in India.
• $68-million loan agreement comprises of up to $58 million from ADB and a $10-million from Canadian Climate Fund for the Private Sector in Asia.
• 80% of ADB’s loan will be allocated to women borrowers or co-borrowers. 20% will be allocated to financing mortgages for green-certified homes.
• Asian Development Bank (ADB):
  • It is a regional development bank established in 1966.
  • Members: 68 countries
  • Headquarters: Mandaluyong, Philippines
  • Current President: Masatsugu Asakawa

Topic: Banking System

2. JP Morgan is the 1st bank to enter metaverse.

• JP Morgan has opened a lounge in blockchain technology based virtual world Decentraland and become 1^st bank to enter metaverse.
• The lounge is named as Onyx. It is the bank’s suite of allowed Ethereum-based services.
• The lounge has a digital image of Jamie Dimon, CEO of the bank. JP Morgan is the largest bank of US.  
• Decentraland is one of the most popular metaverses. Metaverse is defined as a virtual world in which people can create their virtual avatars, interact, attend events and explore.
• As per a report by JP Morgan, economics of metaverse (called metanomics) poses a market opportunity of US$1 trillion annual revenue.

Topic: Committees/ Commissions/ Taskforces

3. Advisory committee on alternative investment policy reconstituted by SEBI.

• The Securities and Exchange Board of India (SEBI) has reconstituted its alternative investment policy advisory committee.
• It will be chaired by Infosys co-founder N R Narayana Murthy. It has 20 members. Earlier, it had 22 members.
• It includes members from SEBI, the Ministry of Finance, and industry associations.
• It will advise SEBI on issues related to the development of the Alternative Investment Fund industry.
• It will also identify hurdles that can hinder the development of the Alternative investment fund industry.
• Earlier, this committee was formed in March 2015. It has till now submitted three reports on the Alternative Investment Fund industry.
• Securities and Exchange Board of India (SEBI):
  • It was set up in 1988.
  • It was given statutory status in 1992.
  • It is headquartered in Mumbai.
  • Ajay Tyagi is its chairman.

Topic: Banking System

4. Government considering ways to ensure anonymity of CBDC users.

• Government is considering ways to ensure anonymity of Central Bank Digital Currency (CBDC) users.
• Anonymity of CBDC means RBI will not keep record of users of particular series of currency.
• Banks will have records regarding value of transaction. They will not have record about specific series of currency with a customer.
• As per RBI, CBDC will be a legal tender in a digital form. It will be same as fiat currency.
• Government is likely to introduce legal provisions for CBDC at the time of passage of Finance Bill.
• Finance Bill contains provisions to amend RBI Act,1934 for introduction of CBDC. Section 2 and 22 of the Act will be amended.
• A new section (Section 22A) will be inserted. This section relates to non-applicability of Sections 24 (denomination of notes), 25 (form of bank notes) of RBI Act.
• New Section 22A also relates to non-applicability of Sections 27 (re-issue of notes), 28 (recovery of notes lost, stolen, mutilated or imperfect) and 39 (obligation to supply different forms of currency) of RBI Act.
• Fiat currency is defined as a currency that is issued by government and is not backed by gold or silver.
• Currency notes and coins are known as fiat money. They are also known as legal tenders. Like a gold or silver coin, they do not have intrinsic value.

Topic: Indian Economy/Financial Market

5. India’s services export expected to reach $325 billion in 2022-23.

• As per Chairman of Service Export Promotion Council (SEPC), India’s services export is expected to reach $325 billion in 2022-23.
• The Chairman said that India’s services export would reach about $250 billion by the end of ongoing fiscal year.
• The estimated value of services export for April-January 2021-22 is $209.83 billion.
• He also said that services exports have been growing at a compound annual growth rate (CAGR) of 8-9% for the last 20 years.
• He further said that India’s services sector is eighth largest in the world and second largest in Asia Pacific region.
• Service Export Promotion Council is an apex trade body which facilitates service exporters of India. It was set up by Ministry of Commerce & Industry. SEPC Chairman: Sunil H Talati

Topic: Indian Economy/Financial Market

6. Outward remittances of Indians reached $13.80 billion during April-December 2021.

• Outward remittances during April-December 2021 exceeded $12.68 billion remittances made during whole of FY21.
• Outward remittances under Liberalised Remittance Scheme (LRS) increased from $1.33 billion in FY15 to $18.76 billion in FY20.
• As per RBI data, outward remittances for education accounted for 32% of total during April-December 2021 at $4.40 billion.
• Travel was the second highest purpose of outward remittances at $4.16 billion during April-December 2021.
• Maintenance of close relatives was third highest purpose of outward remittances at $2.31 billion during April-December 2021.
• Remittances for investment in overseas equity and debt were more than the pre-Covid levels. Indians sent $508 million for overseas investment during April-December 2021.

Topic: Appointments

7. Chetan Ghate: New Director of Institute of Economic Growth.

• He will succeed Ajit Mishra. He was member of RBI’s Monetary Policy Committee from 2016 to 2020.
• He is the winner of 2014 Mahalanobis Memorial gold medal for the best research economist in India within the age of 45 years.
• He is a member of advisory committee of national accounts system (ACNAS) in Ministry of Statistics and Programme Implementation.
• Institute of Economic Growth (IEG):
  • It was founded in 1952 by the eminent economist V.K.R.V. Rao.
  • IEG is an autonomous, multidisciplinary centre for advanced research and training.
  • Tarun Das is its Chairman and Prof. Chetan Ghate is its Director. N.K. Singh is its President.

Topic: Corporates/Companies

8. Coal India Limited gets 'India's Most Trusted Public Sector Company' award.

• Associated Chambers of Commerce & Industry, Kolkata conferred the award on Coal India Limited in “Energy Meet & Excellence Awards function.
• Coal India Chairman Mr. Pramod Agarwal was included in the list of "Top 40 CEOs of India". The list was released by the organization Start-up Lens in January 2022.
• Vinay Ranjan, Director (Personnel & Industrial Relations), Coal India was included in Forbes India's list of "India's 100 Great People Managers, 2021" in January 2022.
• Coal India Limited (CIL):
  • Coal India Limited is a coal mining and refinery company owned by the government of India.
  • It is the world's largest coal producer. It is a Maharatna Public Sector Undertaking.
  • It is headquartered in Kolkata, West Bengal. Pramod Agarwal is its Chairman and MD.

Topic: Awards and Prizes

9. Yohan Poonawalla conferred with “Business Leader of the Year Award” at URJA Awards 2022.

• Chairman and Director of various Poonawalla Group of companies Yohan Poonawalla was awarded with the “Business Leader of the Year Award” at URJA Awards 2022.
• Mrs. Amruta Fadnavis presented this award to Yohan Poonawalla for his remarkable work for society.
• The Poonawalla Group supports several Corporate Social Responsibility activities.
• Along with Yohan Poonawalla, eminent personalities like Farah Khan, Kedar Jadhav, Rinku Rajguru were also awarded. It was the fifth edition of the URJA Awards.
• URJA Award:
  • It is given to leaders of entertainment, sports, business, social activities, and educational sectors for their significant contribution to society.
  • It is a brainchild of Usha Kakade's Gravittus Foundation.

Topic: Corporates/Companies

10. LIC is the largest holder of G-secs.

• Life Insurance Corporation (LIC) is the largest holder of G-secs. It owns 19% of G-secs.
• LIC is also the single largest owner of equities as well as largest fund manager and holder of household savings.
• RBI is the second largest holder of government debt. It holds 17% of over Rs 80.7 lakh crore dated government securities, maturing by 2061.
• Commercial banks collectively own around 40% of government debt. Other insurers collectively own only 5%.
• LIC is the largest institutional investor in around USD 3 trillion domestic equities market.
• As per the analysis by Swiss brokerage UBS Securities, LIC also has the largest share of domestic institutional equity assets under management (AUM).
• LIC has the largest percentage of household savings, with 28 crore policyholders.

Topic: Indian Economy/Financial Market

11. India’s leather and footwear exports expected to reach $6 billion.

• Council for Leather Exports (CLE) Chairman Sanjay Leekha said that India’s leather and footwear exports are expected to reach $6 billion (about Rs 44,800 crore) in 2022-23.
• The export of leather and leather products increased by 33% to $3.6 billion during April-January this fiscal.
• In 2020-21, leather and leather products exports were $3.3 billion, while in 2019-20, they were $4.7 billion.
• Leather and footwear industry is a labor-intensive industry. CLE Chairman said that leather and footwear sector has potential to reach total turnover of $30 billion in next five years.
• Recently, continuation of Indian Footwear and Leather Development Programme (IFLDP) from 2021-22 has been approved with a financial outlay of Rs 1,700 crore.
• Council for Leather Exports (CLE) is an apex trade promotion orgnisation of Indian leather & leather products industry.

Topic: MoUs/Agreements

12. Bank of Baroda and Assam Rifles sign MoU.

• Bank of Baroda has signed MoU with Assam Rifles to provide Central Forces Salary Package.
• As part of MoU, Bank of Baroda will offer Baroda Central Forces Salary Package to all serving and retired personnel of the Assam Rifles.   
• The bank will also provide Personal Accident Insurance and a co-branded credit card.
• The bank will also offer 50% discount on locker rentals and 100% waiver on Demat annual maintenance charges.
• 75% waiver on issuance charges for Gift and Travel cards will also be offered by bank.
• Bank of Baroda:
  • It is the fourth-largest public sector bank in India.
  • Chairman: Hasmukh Adhia
  • Tagline: India’s International Bank

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