Banking Awareness of 28, 29 and 30 October 2023

Topic: Indian Economy/Financial Market

1. China has for the first time become largest seller of steel to India during April-September period of FY24.

• According to the report of Ministry of Steel, it has replaced Korea and Japan from the top two positions.
• Nearly 918,000 tonnes of steel came from China. 917,000 tonnes and 427,000 tonnes came from Korea and Japan, respectively.
• Vietnam was earlier a very important export market for Indian mills. It is presently amongst the top seller to India.
• Vietnam (191,000 tonnes) displaced Taiwan (78,000 tonnes).
• Chinese imports increased by 55% YoY. Vietnamese imports increased by 485%. Kore recorded a decline in imports by 16%.
• JSW Steel is India’s largest steel maker by volume.

Topic: Indian Economy/Financial Market 

2. Ministry of Corporate Affairs has mandated private companies to go for dematerialisation of their securities.

• All private companies, excluding small and government companies, can issue new securities only in dematerialised form.
• Ministry of Corporate Affairs said this in its recent amendment to a Rule concerning issuance of securities.
• Private companies are required to facilitate dematerialisation of existing securities.
• The time period to comply with the recent directives is until the end of September 2024.
• After September 30, 2024, no private company will be able to issue or buy back its stocks until all of the promoters', directors', and key managerial employees' securities have been dematerialized.
• Additionally, all holders of private company securities who plan to transfer them on or after September 30, 2024, must first dematerialize the securities. 
• The dematerialization requirement will not apply to small private companies with capital of less than ₹4 crore and turnover of less than ₹40 crore, nor to those that are holding or subsidiary companies.
• In 1996, the National Securities Depository Limited (NSDL) was established, and with it, the dematerialization of shares of public companies (listed in bourses) began.

Topic: Miscellaneous

3. Subscribers to the NPS now have the option to use the Systematic Lumpsum Withdrawal (SLW) facility to automatically take 60% of their pension corpus.

• National Pension System (NPS) subscribers can use SLW facility periodically (monthly, quarterly, half-yearly or annually) for a period till 75 years of age.
• Earlier, the lump sum amount could be withdrawn in a single tranche or could be withdrawn annually.
• In case of annual withdrawal, the NPS subscriber were required to start the withdrawal each time and authorised.
• NPS subscribers can now choose for a one-time request to opt for an automated periodic withdrawal.
• After setting up an SLW, an NPS subscriber can also cancel it anytime to claim the balance of the 60% corpus.
• Once an SLW is created, new contributions to the account are prohibited.
• In the starting, periodic withdrawal facility under SLW is being implemented only for Tier-I accounts. Later, it will be available for Tier II accounts also.
• National Pension System (NPS):
  • It is pension scheme launched by the Pension Fund Regulatory and Development Authority (PFRDA) in India in 2004.
  • It is mandatory for government servants who joined the service on or after January 1, 2004.
  • For others, it is a voluntary scheme. It allows subscribers to contribute towards their retirement savings during their working life.
  • It is open to all Indian citizens between the ages of 18 and 70 years.

Topic: Banking System

4. Fincare Small Finance Bank (SFB) will merge with AU Small Finance Bank (SFB).

• The merged entity should take effect from February 1, 2024.
• The merger scheme is subject to approval from the respective shareholders of the AU SFB and Fincare SFB, the Reserve Bank of India and the Competition Commission of India (CCI).
• The share exchange ratio for the merger has been fixed at 579 shares of AU SFB for 2,000 shares of Fincare SFB.
• Presently, AU's market capitalisation is Rs 46,000 crore. This is the highest among small finance banks.
• The market capitalisation of the merged entity is expected to be slightly more than Rs 50,000 crore.
• Fincare Small Finance Bank commenced banking operations on 21st July 2017.
• In the first quarter of FY20, Fincare Small Finance Bank was included in the 2nd schedule of the RBI Act, 1934.

Topic: Banking System

5.  State Bank of India (SBI) has hired MS Dhoni as its brand ambassador.

• Dhoni’s association with SBI as a satisfied customer makes him a perfect embodiment of its ethos.
• Dinesh Kumar Khara, Chairman of State Bank of India, said this.
• State Bank of India (SBI) is a nationalized public sector bank.
• Its headquarters is in Mumbai, Maharashtra. Its tagline is The Banker to Every Indian.

Topic: RBI

6. Credit information companies (CICs) will be required to pay Rs 100 per day as compensation to customers.

• CICs will be required to pay this amount for delays in updation or rectification of their credit information.
• RBI has given time of six months to credit institutions (CIs) and CICs to put in place the systems and processes to implement the ‘Framework for compensation to customers for delayed updation/rectification of credit information’.
• If a complainant's issue is not resolved within thirty (30) calendar days from the date of filing of the complaint with a CI or CIC, they will be entitled to compensation of the amount of Rs 100 per calendar day.
• If there is wrongful denial of compensation by CIs or CICs, the complainant can approach the RBI Ombudsman.
• Major credit information companies in India are Credit Information Bureau (India) Limited (CIBIL), Equifax, Experian, and CRIF Highmark.

Topic: Miscellaneous

7. Paytm is the official sponsor of National Games being organized in Goa.

• One97 Communications Ltd (OCL), owner of brand Paytm announced this on 27 October 2023.
• PM Modi inaugurated 37th National Games at Jawaharlal Nehru Stadium, Fatorda on 26 October 2023.
• The National Games are being organized in Goa for the first time. They will be held from 26th October to 9th November.
• Over 10 thousand athletes will compete in more than 43 sports disciplines across 28 venues.
• Paytm:
  • Parent organization: One97 Communications
  • Headquarters: Noida
  • Founder and CEO: Vijay Shekhar Sharma

Topic: Regulatory Bodies/Financial Institutions

8. Competition Commission of India (CCI) becomes a member of the International Competition Network (ICN).

• Competition Commission of India (CCI) becomes a member of the prestigious 18-member steering committee of the International Competition Network (ICN).
• The steering committee is the apex body of the International Competition Network (ICN).
• The International Competition Network comprises 140 competition agencies.
• This is the first time that the CCI has become a member of the ICN's steering group and the membership is for two years.
• International Competition Network (ICN):
  • It was established in 2001.
  • It is an informal, virtual network that seeks to facilitate cooperation between competition law authorities globally.
  • It is currently headed by Andreas Mundt of Germany.
• Competition Commission of India (CCI):
  • CCI was formed on 14 October 2003 under the Competition Commission Act, 2002.
  • It aims to eliminate practices that affect competition in the Indian market and protect the interests of the consumers.
  • CCI consists of a Chairperson and 6 members appointed by the Central Government.

Topic: Miscellaneous

9. Rajkumar Rao has been recognized as a National Icon by the Election Commission of India (ECI).

• This step has been taken to create awareness among voters, particularly the youth.
• Actor Rajkumar Rao and the ECI exchanged a MoU at Rang Bhavan in New Delhi.
• The MoU was exchanged in the presence of Chief Election Commissioner (CEC) Rajiv Kumar and other ECI officials.
• CEC Rajiv Kumar said the EC will start a special drive from 27 October 2023 to update the details in the electoral rolls.
• This drive will be carried out across the country except in the five poll- bound states of Rajasthan, Telangana, Madhya Pradesh, Chattisgarh, and Mizoram.
• In August 2023, Sachin Tendulkar was recognized by ECI as a National Icon to promote voter awareness.

Topic: Agriculture

10. Government imposed a minimum export price of $800 per tonne on onion till Dec 31.

• The Government has decided to impose a minimum export price (MEP) of $ 800 per tonne on onion exports. This decision will come into effect from 29 October.
• Government has also announced the procurement of an additional 2 lakh tonnes of onion for the buffer.
• In the retail market, Onion prices have further risen to ₹65-80 per kilogramme.
• The MEP is there for all varieties of onions except Bangalore Rose and Krishnapuram onions.
• The DGFT notification added that certain onion consignments will be allowed to be exported without MEP.

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