Banking Awareness of 26,27 and 28 March 2023

Topic: Miscellaneous

1. 2^nd G20 Infrastructure Working Group Meeting started at Visakhapatnam in Andhra Pradesh from 28 March 2023.

• The theme of the conference is “Economic Cities of Tomorrow”.
• The meeting will continue for two days starting from 28 March 2023.
• It is being co-chaired by Australia and Brazil. 63 representatives of G-20 countries and other organizations have enrolled for the meeting.
• The first G20 Infrastructure Working Group Meeting was held in Pune, Maharashtra.
• At least 50% of people in almost all the countries of the world live in cities.
• 70% of population is expected to live in urban areas by 2050.
• G20:
  • It is the main forum for international cooperation on financial and economic issues.
  • It comprises 19 countries and the European Union. It was created in 1999.

Topic: Appointments

2. Vikas Muttoo has been appointed as Chief Operating Officer (COO) of Bharat Financial Inclusion.

• IndusInd Bank has appointed him as COO and Head Member Services of wholly-owned subsidiary Bharat Financial Inclusion.
• He will be the bank representative at the company.
• Before this appointment, Muttoo was the MD and CEO of RBL FinServe.
• Bharat Financial Inclusion Limited (BFIL) is a banking & finance company.
• IndusInd Bank:
  • It is a Pune-based bank. It was started in 1994 by Srichand P Hinduja.
  • Sumant Kathpalia is its CEO. Its tagline is we make you feel richer.

Topic: Miscellaneous

3. ICICI Lombard General Insurance has become first to offer ‘Anywhere Cashless’ feature.

• It has launched ‘Anywhere Cashless’ feature for health insurance policyholders.
• Policyholders can avail cashless facilities at any hospital. The facility can be availed at hospitals which are not part of ICICI Lombard’s current network of hospitals.
• The feature will be subject to acceptance of the cashless facility by the hospital.
• Policyholders are required to inform the company 24 hours before the date of admission.
• The facility can be availed through the ‘IL TakeCare’ application across India.

Topic: RBI

4. RBI grants approval to CRIF Connect to start operations as a Non-Banking Financial Company- Account Aggregator (NBFC-AA).

• FinSec AA Solutions, Yodlee Finsoft, CAMSFinServe, NESL Asset Data, Cookiejar Technologies and Perfios Account Aggregation Services are other companies licenced to operate as AAs in India.
• CRIF Connect is a subsidiary of CRIF S.p.A. It provides an end-to-end encrypted platform.
• This platform securely transfers financial data of consumers based on their explicit consent between financial institutions.
• After RBI’s directions in 2016 on AAs (revised in 2021), the AA network was launched in the form of a financial data-sharing system to facilitate credit and investment.
• Till December 2022, the number of financial institutions onboard the AA platform as Financial Information Users (FIU) was 94.
• Till December 2022, 26 financial institutions were onboard as Financial Information Providers (FIP).
• Out of these, 12 were public sector banks (PSBs), 10 were private banks, one was small finance bank (SFB) and 3 were life insurance companies.

Topic: Reports and Indices

5. S&P Global Ratings retained India’s economic growth forecast at 6% in FY24.

• S&P Global Ratings said India’s economic growth will rise to 6.9% in the following year.
• In its quarterly economic update for Asia-Pacific, S&P said inflation rate will ease to 5% in fiscal 2023-24 from 6.8% in this financial year.
• As per S&P, India’s GDP is likely to grow by 7% in financial year 2022-23. It will slow to 6% in the next 2023-24 fiscal.
• S&P expects only 0.7% growth in the US this year and 0.3% in the eurozone.
• According to the United Nations Conference on Trade and Development (UNCTAD), global goods trade is expected to increase by 1% in the first quarter of 2023.
• The trade-in service will grow by 3%. Global trade has reached to more than $32 trillion in 2022 but turned negative in the last quarter.
• UNCTAD predicted trade stagnation for the first quarter of 2023.
• The trade performance in “green goods” or “environmentally friendly goods” was good.
• United Nations Conference on Trade and Development (UNCTAD):
  • It is a UN institution that deals with trade and development. It was founded in December 1964.
  • It is headquartered in Geneva, Switzerland.

Topic: Committees/ Commissions/Taskforces

6. Government constituted a committee to monitor stock disclosure of Tur.

• The chairperson of the committee is Nidhi Khare, Additional Secretary in the Department of Consumer Affairs.
• This committee will monitor the stock of Tur held by entities such as importers, millers, stockists and traders in association with the state governments.
• The decision has been set up to form a panel after the report of not releasing of stocks by market players.
• The formation of the panel shows the government’s intention to deal with hoarders and unscrupulous speculators in the market.
• It also indicates that the government is committed to keeping prices of Tur under control. The government also keeps an eye on the stock position of other pulses in the domestic market.
• In August 2022, the central government had issued an advisory to state governments for stock disclosure in respect of Tur under the Essential Commodities Act, 1955.
• For smooth and seamless import, the government has removed the 10% import duty for Tur from non-LDC countries.
• The import duty creates procedural hurdles even for zero-duty imports from the LDCs.

Topic: Indian Economy/Financial Market

7. EPFO has fixed 8.15% interest rate on employees’ provident fund deposits for 2022-23.

• The decision has been taken by the Employees’ Provident Fund Organisation’s apex decision making body Central Board of Trustees (CBT).
• CBT’s decision requires ratification by Ministry of Finance.
• After ratification, interest rate on EPF for 2022-23 will be credited into the accounts of over 5 crore subscribers of EPFO.
• In March 2022, interest rate on EPF deposits for 2021-22 was lowered to four decade low level of 8.1% from 8.5% in 2020-21.
• This was lowest rate since 1977-78. In 1977-78, EPF interest rate stood at 8%.
• In March 2020, interest rate on provident fund deposits was lowered to a seven year low of 8.5% for 2019-20.
• Employees Provident Fund Organisation (EPFO):
  • EPFO is a statutory body that was established under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
  • The organization works under the aegis of the Ministry of Labour and Employment.
  • It helps the central board of trustees in the administration of the Provident Fund Scheme, Pension Scheme and Insurance scheme for the organized sector workers.

Topic: World Economy

8. First Citizens Bank will buy all deposits and loans of SVB.

• First Citizens Bank & Trust Co will buy all deposits and loans of Silicon Valley Bank from the Federal Deposit Insurance Corporation (FDIC).
• FDIC and First Citizens Bank have signed a purchase and assumption agreement.
• The 17 former branches of Silicon Valley Bridge Bank will open as First–Citizens Bank & Trust Company.
• The depositors of Silicon Valley Bank will automatically become depositors of the First–Citizens Bank. All deposits will continue to be insured by the FDIC up to the insurance limit.
• Till March 10, the Silicon Valley Bank had total assets of $167 billion and about $119 billion in total deposits.
• Around $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC.
• Recently, Silicon Valley Bank was shut down by United States regulators due to irregularities.

Topic: Appointments

9. Dilma Rousseff became the new President of New Development Bank.

• Former Brazilian President Dilma Vana Rousseff has been elected as the new President of the New Development Bank.
• She has taken place of Marcus Troyjo.
• The board of Governors unanimously elected Dilma Vana Rousseff as the President of the Bank.
• Dilma Rousseff was the President of Brazil from January 2011 to August 2016.
• New Development Bank:
  • It is also known as the BRICS bank.
  • It is a financial institution established by the five BRICS countries including Brazil, Russia, India, China and South Africa.
  • It is a multilateral development bank established in 2015. It is headquartered in Shanghai, China.

Topic: Taxation

10. Maximum GST cess ceiling fixed by Center on Pan Masala, Tobacco.

• In order to limit the maximum rate of GST compensation cess on pan masala, cigarettes, the government has made amendments to the Finance Bill.
• Among other items, GST Compensation Cess has been linked to a ceiling rate of their retail selling price.
• This rule issued by the government will be implemented from the 1 April 2023.
• The maximum GST compensation cess rate for pan masala will be 51% of the retail sale price per unit, which is currently levied at 135% ad valorem. [According to the estimated value of the goods being taxed]
• Similarly, the rate for tobacco has been fixed at Rs 4170 per thousand sticks plus 290% ad valorem or 100% of retail sale price per unit.
• The highest rate so far is 290% ad valorem with Rs 4,170 per thousand sticks.
• The cess is levied over the highest GST rate of 28%.
• In February, the GST Council, headed by the Union finance minister and comprising state finance ministers, approved the recommendations of a group of ministers to prevent tax evasion in pan masala and gutkha businesses.

Read Banking Awareness PDF - 26,27 and 28 March 2023