Banking Awareness of 26, 27 and 28 May 2022

Topic: Appointments

1. Anwar Hussain Shaik has been made the chairman of World Trade Organisation’s Committee on Technical Barriers to Trade.

• Mr. Shaik is an Indian Government Officer. Mr. Shaik will succeed Mexico's Elisa Maria Olmeda de Alejandro in this post.
• The aim of the Technical Barriers to Trade (TBT) Agreement is to ensure that technical regulations, standards, and conformity assessment procedures are non-discriminatory.
• The TBT Agreement also aims to ensure that they do not create unnecessary trade barriers.
• The TBT Committee's work is divided into two categories: reviewing specific measures and strengthening the TBT Agreement's implementation.
• This committee is used by WTO members to discuss specific trade concerns, laws, regulations, or procedures. 
• World Trade Organization:
  • It is a 164-member multinational organisation that develops rules for worldwide exports and imports and settles trade disputes between countries.
  • Since 1995, India is a member of the World Trade Organization.
  • It is headquartered in Geneva, Switzerland. It was founded on 1 January 1995.

Topic: Indian Economy/Financial Market

2. Cabinet has given approval to sale of government’s remaining 29.5% stake in Hindustan Zinc.

• Hindustan Zinc was privatized in 2002. Its management was transferred to Vedanta group subsidiary Sterlite.
• Government has withdrawn its decision to sell 53% stake in BPCL.
• The Government has decided to call off the present Expressions of Interest process for the strategic disinvestment of BPCL.
• This is 3rd strategic disinvestment proposal, which has been called off in the current fiscal.
• Earlier, strategic disinvestment of Pawan Hans was put on hold and transaction for Central Electronics (CE) was deferred.
• Bharat Petroleum Corporation Limited (BPCL) is the second-largest oil company in India and it has the third-largest refining capacity.

Topic: RBI

3. Licences of five NBFCs have been cancelled by RBI due to irregular lending practices.

• UMB Securities, Anashri Finvest, Chadha Finance, Alexcy Tracon and Jhuria Financial Services are the NBFCs whose CoRs were cancelled.
• The licences of NBFCs have been cancelled for violating RBI guidelines on outsourcing and Fair Practices Code in their digital lending operations.
• As per RBI, these five NBFCs will not carry out the business of a Non-Banking Financial Institution (NBFI), as defined in clause (a) of Section 45-I of the RBI Act, 1934.
• Section 45-IA of the RBI Act, 1934 makes it mandatory for a company to take Certificate of Registration (CoR) from RBI to carry on business of a non-banking financial institution.
• Non-Banking Financial Companies (NBFCs):
  • NBFCs are companies registered under the Companies Act, 1956 and regulated by RBI under RBI Act, 1934.
  • NBFCs are not allowed to accept demand deposits. They are different from banks.

Topic: Reports and Indices

4. As per RBI’s annual report 2021-22, value and volume of banknotes in circulation grew by 9.9% and 5%, respectively, during 2021-22.

• The value and volume of banknotes in circulation grew by 16.8% and 7.2%, respectively, during 2020-21.
• The value and volume of ₹2,000 banknotes declined. RBI has not printed ₹2,000 banknotes for the fourth year.
• In 2021-22, banknotes in circulation totaled to 13.05 lakh in volume terms and ₹31,05,721 crore in value.
• The report said that in value terms, the share of ₹500 and ₹2,000 banknotes is 87.1% of total value of banknotes in circulation as on March 31, 2022.  
• In terms of volume, the ₹500 denomination accounted for the highest share at 34.9% of the total banknotes in circulation as on March 31, 2022.
• ₹10 denomination banknotes accounted for second highest share at 21.3 % of the total banknotes in circulation as on March 31, 2022.
• RBI conducted a banknote survey of consumers, which found that among banknotes, ₹100 was the most preferred, while ₹2,000 was the least-preferred denomination.
• The report says that among coins, denomination of ₹5 was the most preferred, whereas ₹1 was the least preferred.
• The most recognized security features are Watermark of Mahatma Gandhi’s image followed by windowed security thread.

Topic: RBI

5. Minimum net worth requirement for non-bank BBPOUs has been reduced by RBI from ₹100 crore to ₹25 crore.

• RBI’s step is aimed at encouraging participation of more non-bank Bharat Bill Payment Operating Units (BBPOUs) in BBPS.
• Bharat Bill Payment System (BBPS) is a system that offers interoperable and accessible bill payment service to consumers.
• BBPS offers these services through digital bank channels as well as through a network of agents and bank branches.
• RBI said BBPS will include activities to facilitate collection of repetitive payments for everyday utility services.
• The scope of BBPS will be gradually will extended to cover services such as school / university fees, municipal taxes etc. as decided by RBI.  

Topic: Banking System

6. Indian Bank and Northern Arc Capital has entered into a strategic partnership.

• The partnership will enable them to widen their respective markets and customer base.
• The partnership will also enable them to collaborate, co-operate and co-lend loans.
• Indian Bank would get access to Northern Arc’s n-POS platform.
• Northern Arc Capital is a non-banking finance company (NBFC) focused on under-served households and businesses.
• Indian Bank:
  • It was founded in 1907. Its headquarters are in Chennai. Shanti Lal Jain is its MD & CEO.
  • From 1 April 2020, Allahabad bank has been merged with Indian Bank.

Topic: Miscellaneous

7.  CoinDCX has launched a new feature called ‘Earn’.

• Earn is a feature through which customers can earn interest on their crypto assets.
• It has no lock-in-period. It allows withdrawals at any time. Registration and KYC compliance are needed to use the product.
• Recently, CoinDCX launched its Crypto Investment Plan (CIP). In CIP, one can invest a fixed amount in crypto at regular intervals.
• CoinTracker has started operations in India. It is crypto tax compliance and portfolio tracking firm.

Topic: Banking System

8. Japan's MUFG Bank has received approval to establish a branch at GIFT City.

• The Bank will start lending operations in foreign currencies from the GIFT-IFSC at GIFT City in Gujarat.
• Mitsubishi UFJ Financial Group, Inc. (MUFG)'s MUFG Bank has received approval from International Financial Services Centres Authority (IFSCA).
• The branch is scheduled to open in the first half of fiscal 2022.
• MUFG Bank has five branches in India. GIFT Branch will be its sixth branch in India.
• In March 2022, MUFG Bank has announced setting up of a $300-million investment fund MUFG Ganesha Fund for startups in India.

Topic: Miscellaneous

9. NCDEX Commodities Award 2022 given in Mumbai on 26 May 2022.

• NCDEX recognized The Hindu BusinessLine as the best daily in covering commodities in the print media at the NCDEX Commodities Award 2022.
• In the regional category, Agrowon Sakal and NafaNuksaan were given award for their news coverage in the commodity section.
• Zee Business and CNBC Awaaz won the award in television category.
• At NCDEX Commodities Award 2022, Kotak Bank was awarded for its significant contribution to the exchange business.
• In the electronic negotiable warehouse receipts area, Punjab National Bank and ICICI Bank were recognized as emerging banks.
• ITC, Ruchi Soya and Rajasthan Gums were recognised for their best price risk management policy among corporates.
• Total 58 entities and individuals won awards in different categories.
• Tata Mutual Fund and Alpha Alternatives were the winners for contribution in helping Farmer Producer Organization (FPOs).

Topic: Miscellaneous

10. AAROHAN 4.0 started on 26 May 2022 in Shimla, Himachal Pradesh.

• AAROHAN 4.0 is two day long meet of senior functionaries of Postal Department and India Post Payments Bank (IPPB).
• Ways to further deepen Financial Inclusion drive in the country and to provide banking solutions to every citizen of India were on the agenda of the meeting.
• India Post Payments Bank (IPPB) has been set up under the Department of Posts, Ministry of Communication with 100% equity owned by Government of India.
• IPPB was launched by Prime Minister Shri Narendra Modi on September 1, 2018.

Read Banking Awareness PDF - 26, 27 and 28 May 2022