Topic: RBI
1. RBI has released Master Direction to the Asset Reconstruction Companies.
- RBI released the Master Direction - Reserve Bank of India (Asset Reconstruction companies) Directions, 2024.
- RBI released them to ensure prudent and efficient functioning of ARCs and to protect the interest of investors.
- According to the directions, an ARC shall have a minimum net owned fund of Rs 300 crore and thereafter, on an ongoing basis to commence the business of securitisation or asset reconstruction.
- ARC shall also apply for registration and get a certificate of registration from the RBI before commencing the business of securitisation or asset reconstruction.
- The directions say that no ARC shall make investment in real estate or buildings, with the exception of up to 10% of its owned funds for its own use.
- It is not permitted for ARCs to raise funds through deposits.
- In addition, they must have their capital adequacy ratio at least 15% of their total risk-weighted assets.
- According to the directions, no one may serve as MD, CEO, or Whole-time Director (WTD) after the age of 70.
- Furthermore, the MD/CEO or WTD's term cannot be longer than five years at a time, with a maximum of fifteen years in a row.
- The Indian Banks Association (IBA) must be notified by ARCs of any chartered accountants, advocates, or valuers who have engaged in irregularities.
- An Asset Reconstruction Company (ARC) is a financial institution. It purchases the Non-Performing Assets (NPA) or bad assets from banks and other financial institutions.
- Finance Minister Nirmala Sitharaman announced the establishment of Asset Reconstruction Companies in India in the Union Budget 2021–2022.
- In India, both state-owned and private sector banks have established ARCs.
Topic: RBI
2. RBI Deputy Governor T Rabi Sankar’s reappointment has been approved by the Appointments Committee of the Cabinet (ACC).
- His reappointment has been approved for one year from May 3, 2024.
- Department of Personnel & Training has issued an order to this effect on 23rd April 2024.
- T Rabi Sankar was appointed as RBI Deputy Governor in May 2021 for three years.
- He was earlier an Executive director of RBI. He was elevated to the post of Deputy Governor in May 2021.
- He currently holds charge of central security cell, and departments of currency management, foreign exchange, internal debt management, information technology, payment and settlement systems, amongst others.
- RBI has four Deputy Governors. They are M.D.Patra, M Rajeshwar Rao, J Swaminathan and T Rabi Sankar.
Topic: Appointments
3. Amitabh Chaudhry has been reappointed as the Managing Director and CEO of Axis Bank by its Board of Directors.
- It has been decided to re-appoint him for an additional three years, beginning on January 1, 2025, and ending on December 31, 2027.
- The Reserve Bank of India's (RBI) and the members' permission are required for this re-appointment.
- He became the MD and CEO of Axis Bank on January 1, 2019.
- The board of the bank also approved Meena Ganesh's reappointment as an independent director for a further four-year term beginning on August 1, 2024, and ending on July 31, 2028.
- The bank’s board also approved re-appointment of Gopalaraman Padmanabhan as Independent Director of the bank for a second term of four years with effect from October 28, 2024 up to October 27, 2028.
- Axis Bank is the third-largest private sector bank in India that is headquartered in Mumbai.
Topic: Appointments
4. The appointment of Rana Ashutosh Kumar Singh for the position of MD in State Bank of India has been recommended by the FSIB.
- Financial Services Institutions Bureau (FSIB) has also recommended the appointment of Asheesh Pandey for the position of MD & CEO in Indian Bank.
- Rana Ashutosh Kumar Singh is currently Deputy Managing Director (Retail- Personal Banking & Real Estate) at SBI.
- Presently, SBI has four MDs. They are Challa Sreenivasulu Setty, Alok Kumar Choudhary, Ashwini Kumar Tewari, and Vinay M Tonse.
- The tenure of Alok Kumar Choudhary as MD will end on June 30, 2024, when he will superannuate.
- Asheesh Pandey is currently Executive Director at Bank of Maharashtra.
- Presently, Shanti Lal Jain is the MD and CEO of Indian Bank.
Topic: Reports and Indices
5. Flash composite Purchasing Managers’ Index (PMI) increased to 62.2 in April.
- It reached to 14-year high level. It was 61.8 in March.
- The manufacturing and service sectors demonstrated strong performance, driven by a rise in new orders.
- This led to the highest composite output index since June 2010.
- Specifically, as new orders increased in both domestic and foreign markets in April, the expansion of services accelerated even more.
- In the last three months, business activity increased most in the service economy.
- In April, private sector sales grew for the thirty-third consecutive month and at the fastest rate in less than 14 years.
- S&P Global compiles the index using data from survey panels of about 400 manufacturers and 400 service providers, based on answers to questionnaires.
Topic: Reports and Indices
6. In 2023, India overtook China as the market leader for electric three-wheelers (3W).
- Almost 25% of three-wheelers in India are electric, per an International Energy Agency (IEA) report.
- In 2023, sales of electric three-wheelers in India exceeded five million units. This is a 65% increase over the levels in 2022.
- Sales of electric three-wheelers in China decreased by 8% to 3.2 lakh units. It grew to be the second-largest market as a result.
- In 2023, the 3W market experienced a 13% global expansion, with 4.5 million sales. Twenty-one percent of this was electric.
- Global sales of electric 3Ws reached about one million in 2023.
- China and India hold a dominant position in the electric 3W market.
- When combined, they represent more than 95% of all-electric and 80 % of conventional 3W sales.
Topic: Banking System
7. NABARD released its Climate Strategy 2030 document.
- On the occasion of Earth Day, the National Bank for Agriculture and Rural Development (NABARD) released its Climate Strategy 2030 document.
- The Climate Strategy 2030 document has been released by Shaji KV, Chairman of NABARD.
- Its main aim is to address India’s need for green financing. As per the NABARD, India requires $170 billion annually to reach a cumulative total of over $2.5 trillion by 2030.
- NABARD’s Climate Strategy 2030 is based on four key pillars: accelerating green lending across sectors, playing a broader market-making role, internal green transformation and strategic resource mobilization.
- Until 2019-20, about $49 billion has been collected by India in green financing. The majority of funds were for mitigation while $5 billion was allocated towards adaptation and resilience.
- This strategy will make NABARD a pivotal player in India’s transition towards a resilient and sustainable economy.
Topic: Corporates/Companies
8. BharatPe One has been launched by BharatPe.
- BharatPe One is all-in-one payment device. It integrates a point of sale, QR code, and speaker into one device.
- In the 1st phase, BharatPe One will be launched in 100 cities and in 450 cities over the next six months.
- BharatPe One offers payment options including QR code, tap-and-pay and traditional card payment.
- BharatPe One is having a high-definition touchscreen display, 4G and Wi-Fi connectivity.
- It is powered by the latest Android operating system.
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