Banking Awareness of 28, 29 and 30 September 2024

Topic: Indian Economy/Financial Market

1. Foreign Portfolio Investments (FPIs) reached nine month highest level of ₹57,359 crore in September 2024 (till September 27).

• Foreign Portfolio Investments (FPIs) increased ₹1 lakh-crore in equity inflows.
• This was the highest net monthly Foreign Portfolio Investment (FPI) inflows in this calendar year.
• This took the overall inflows so far in 2024 to 1,00,245 crore (about $12 billion).
• However, FPI inflows received so far is much lower than the ₹ 1.63 lakh crore coming through domestic flows via Systematic Investment Plans (SIPs) in mutual funds.
• FPI net equity inflows (₹57,359 crore) in September 2024 is significantly more than August 2024 inflows of ₹7,322 crore.
• In July 2024, the net FPI inflows was ₹32,359 crore. It was ₹26,565 crore in June 2024.
• India recently replaced China as the largest MSCI Emerging Market per MSCI IMI (Investible Large, Mid and Small cap).
• FPIs net investments in debt markets in September (till 27th) was slightly more than ₹22,000 crore.

Topic: Indian Economy/Financial Market

2. Government proposed 2022-23 as the new base year for GDP computation.

• The Statistics Ministry will publish GDP (Gross Domestic Product) with the new base year of 2022-23 in February 2026.
• The base year will be also changed for retail inflation, based on the Consumer Price Index and factory output growth, based on the Index of Industrial Production.
• At present, the base year is 2011-12 for the GDP calculations.
• The Advisory Committee on National Accounts Statistics (ACNAS) was constituted under the Chairmanship of Biswanath Goldar will complete the exercise by early 2026.
• The government is making several adjustments to improve the GDP calculations.
• The proposed shift in the GDP base year in India is a step towards improving the accuracy and relevance of economic data.
• Last base year revision for GDP was conducted in 2015 at that time it was changed to 2011-12 from 2004-05.
• Gross Domestic Product (GDP) is a key economic indicator that measures the total value of goods and services produced within a country's borders.

Topic: Indian Economy/Financial Market

3. The government is considering of implementing a foreign investment regulatory framework to oversee FDI.

• In April-June of this fiscal year, foreign direct investment in India increased by 47.8% to $16.17 billion.
• To attract foreign investments, the government has implemented a number of initiatives.
• Among these steps is streamlining processes to facilitate corporate transactions.
• In industries like space, e-commerce, pharmaceuticals, civil aviation, contract manufacturing, digital media, coal mining, and defence, the government has also relaxed FDI regulations.
• The Production-Linked Incentive (PLI) program has been implemented for 14 industries, including white goods and electronics.
• On September 25, 2014, the 'Make in India' campaign was introduced.
• This was started in order to promote investment, encourage creativity, and construct top-notch infrastructure.
• This was also started with the goal of making the nation a centre for innovation, design, and manufacturing.
• The amount of FDI inflow has increased by 119% throughout the previous ten fiscal years.
• Over 90% of all FDI received reached through the automatic route.
• This brought the total FDI amount to $667 billion as opposed to $304 billion in the last ten years (2005–14).
• India had a 47.8% increase in foreign direct investment (FDI) between April and June of current fiscal year, totalling $16.17 billion.
• This was due to robust inflows into the computer, telecom, pharmaceutical, and services sectors.
• Mauritius, Singapore, the United States, the Netherlands, the United Arab Emirates, the Cayman Islands, Cyprus, Japan, the United Kingdom, and Germany are the top investors in India.
• Industries that see a strong influx of foreign capital include services, telecommunication, computer hardware and software, pharmaceuticals, and chemicals.

Topic: Indian Economy/Financial Market

4. NSE has postponed ‘Go Live’ in T+0 settlement cycle.

• NSE has postponed ‘Go Live’ trading in T+0 (same day) rolling settlement in the capital market segment for custodial participants.
• This ‘Go Live’ trading has been deferred until further notice.
• The revised date will be communicated via a separate circular.
• The same day (T+0) rolling settlement cycle, in the equity segment on an optional basis was implemented from March 28.
• The T+0 settlement cycle's beta version was implemented for a small number of brokers and a set of 25 scrips.
• NSE and BSE will revise transaction charges with effect from October 1.
• Starting on October 1, the stock exchanges will reduce transaction fees for the cash and derivatives market divisions.
• This will be done to comply with the SEBI circular instructing market infrastructure institutions (MIIs) to remove the slab-wise pricing structure.
• Beginning on October 1, the NSE will charge Rs 3,503 for each side of every crore of premium value in equity options.
• Transaction fees for Bankex and Sensex options contracts would be increased to Rs 3,250 for every crore of premium turnover, according to the BSE.
• The higher securities transaction tax (STT) on futures trading will also take effect on October 1st, the same day as these additional transaction costs.
• The NSE would charge Rs 297 per crore of traded value in the cash market and Rs 173 per crore of traded value in the stock futures market, in accordance with the revised rates.

Topic: Taxation

5. India started anti-dumping probe on Chinese inert gas R-134a.

• India has started anti-dumping investigations on imports of R-134a from China.
• The petition seeking anti-dumping investigation was filed by SRF Limited.
• SRF Limited is the only producer of R-134a in India.
• R-134a is an inert gas also known as Tetrafluoroethane.
• R-134a is primarily used as a high temperature refrigerant for domestic refrigeration and automobile air conditioners.
• It is also useful in plastic foam blowing as a cleaning solvent.
• It is also used as a propellant for the delivery of pharmaceuticals.
• It is also used in air driers for removing the moisture from compressed air.

Topic: Appointments

6. Bhushan Akshikar has been appointed as the President of Organisation of Pharmaceutical Producers of India (OPPI).

• He has been appointed for two years from September 26, 2024.
• He is GlaxosmithKilne Pharmaceuticals Managing Director.
• He assumes charge from Suresh Pattathil, Managing Director and General Manager, AbbVie.
• The OPPI was established in 1965. It is a platform for global pharmaceutical companies in India.

Topic: Banking System

7. Instant SIP has been launched by HDFC Bank via SmartWealth app.

• With the help of Instant SIP, users will be able to take immediate action and invest in mutual funds on the same day when they see an opportunity.
• Instant SIP will help users start investing without delays.
• It will allow them to capitalize on the prevailing favourable market conditions.
• In addition to Instant SIP, the Unified Dashboard has been revamped.
• It has revamped to provide a consolidated view of all investments across mutual funds, demat accounts and fixed deposits.
• HDFC Bank:
  • HDFC Bank is India's largest private sector bank. It is India’s second largest lender after State Bank of India.
  • It is headquartered in Mumbai. It was founded in 1994. The CEO of HDFC Bank is Sashidhar Jagdishan.

Topic: Summits/Conferences/Meetings

8. RBI organized a conference on the governance of small finance banks.

• A day-long conference for the directors of Small Finance Banks (SFB) has been organized in Bengaluru.
• The theme of the conference was ‘Governance in SFBs: Driving Sustainable Growth and Stability’.
• RBI Deputy Governor Mr Swaminathan J to encourage directors to be vigilant and proactive in identifying and mitigating emerging risks.
• He also highlighted the importance of sustainable business models.
• Technical sessions on the ‘Governance and Assurance Functions’, ‘Business Risk – Regulatory and Supervisory Expectations’ and ‘IT Systems and Cybersecurity’ were also part of this conference.

Topic: Miscellaneous

9. CAG of India assumed the chairmanship of the Asian Organisation of Supreme Audit Institutions (ASOSAI).

• The Comptroller and Auditor General (CAG) of India has taken the chairmanship of the Asian Organization of Supreme Audit Institutions (ASOSAI) for 2024-2027.
• ASOSAI has expanded, and 48 Supreme Audit Institutions (SAIs) have become part of it.
• At the 16th Assembly of ASOSAI, 200 delegates from 42 countries, including the heads of 22 SAIs, took part in this event.
• The assembly has focused on enhancing transparency, accountability, and good governance.
• The assembly was preceded by a series of working-level meetings. These included the 5th ASOSAI Grant Committee meeting.
• At this meeting, the mid-term report on ASOSAI’s Strategic Plan 2022-2027 has also been approved.

Topic: Indian Economy/Financial Market

10. Centre has increased minimum wage rates for workers.

• The central government has revised minimum wage rates by adjusting the Variable Dearness Allowance (VDA).
• The purpose of this increase is to assist workers in managing the rising cost of living, especially those in the unorganised sector.
• The previous modification was made in April 2024, and these new wages will take effect on October 1, 2024.
• The skill levels of workers—unskilled, semi-skilled, skilled, and highly skilled—as well as the geographic division of regions into A, B, and C are taken into account when determining minimum wage rates.
• Following the revision, semi-skilled workers will make Rs 868 per day (Rs 22,568 per month), while unskilled workers in area "A" doing construction, sweeping, cleaning, loading, and unloading will get Rs 783 per day (Rs 20,358 per month).
• The salary for clerical and skilled personnel, as well as watch and ward staff without arms, is Rs 954 per day, or Rs 24,804 per month.
• Highly skilled workers would be paid Rs 1,035 per day (Rs 26,910 per month), including watch and ward staff who are armed.
• Two times a year, on April 1 and October 1, the central government updates the VDA based on the average increase in the Consumer Price Index for industrial workers over a six-month period.

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