Banking, Financial and Economic Awareness of 3 and 4 August 2021

Topic: RBI

1. RBI empanels IndusInd Bank as an ‘Agency Bank’.

• RBI has empaneled IndusInd Bank as an ‘Agency Bank’ to facilitate transactions related to government businesses.
• The IndusInd Bank can now be authorized to perform transactions related to government businesses such as income tax, indirect taxes and goods and services tax payments and pension payments.
• It can also be authorized to perform transactions related to government businesses such as work-related to small savings schemes and collection of stamp duty charges.
• Further, it can also be used to perform transactions related to government businesses such as the collection of State taxes such as professional tax, value-added tax and State excise duties.
• In February this year, Finance Minister announced that restrictions on grant of government business to private banks have been removed.
• RBI then issued guidelines for appointing scheduled private sector banks as agency banks.

Topic: RBI

2. Monetary penalty of ₹6 lakh imposed on Hewlett-Packard Financial Services (India) Private Ltd.

• Monetary penalty of ₹6 lakh has been imposed by RBI on Hewlett-Packard Financial Services (India) Private Ltd.  
• RBI has found non-compliance with statutory directions on submission of credit information to Central Repository of Information on Large Credits.
• Non-compliance with statutory directions on submission of credit data to Credit Information Companies was also found.
• RBI has imposed a penalty in exercise of powers vested in it under the provisions of the Reserve Bank of India Act, 1934 and the Credit Information Companies (Regulation) Act, 2005.

Topic: Banking System

3. Health and Wellness Savings Account launched by Suryoday Small Finance Bank.

• Health and Wellness Savings Account has been launched by Suryoday Small Finance Bank.
• The account offers top-up health insurance of ₹25 lakhs, annual healthcare package and on-call emergency ambulance medical care services.
• Top-up health insurance and healthcare package are available free of charge for one year after opening the account.
• Free Ambulance service up to a distance of 20 Kms will be provided at 102 locations across the country till March-end 2022.
• The account can be opened by a resident individual (18 years to 65 years) either jointly or singly.
• Maintenance of an average monthly balance of ₹3 lakh is the criteria for opening a savings account. Other features of the account are given below.
  • “Platinum” RuPay Secure Chip Debit Card variant
  • Daily ATM withdrawal limit of ₹1.50 lakh
  • Daily point of sale (POS) usage limit of ₹3 lakh

Topic: RBI

4. RBI issues framework for outsourcing of payment and settlement-related activities by PSOs.

• RBI has issued a framework for the outsourcing of payment and settlement-related activities by Payment System Operators (PSOs).
• RBI has fixed March 31, 2022 as the deadline and asked PSOs to ensure that all their outsourcing arrangements, including the existing ones, comply with this framework by March 31, 2022.
• The framework is applicable to non-bank PSOs. It applies to service providers, whether located in India or abroad.
• The framework aims to establish minimum criteria to manage risks in outsourcing of payment and settlement-related activities including activities such as onboarding customers and IT-based services.
• As per the framework, core management functions (including risk management and internal audit) and decision-making functions (like determining compliance with KYC norms) will not be outsourced by PSOs.
• Management of payment system operations such as netting and settlement, transaction management like reconciliation, reporting and item processing come under core management functions.
• According sanction to merchants for acquiring, managing customer data, risk management, information technology and information security management are also core management functions.
• Any director or officer of the PSO or their relatives will not own or control service provider unless it is a group company of the PSO.
• As per the framework, PSOs will be required to have a board-approved comprehensive outsourcing policy to outsource any of their payment and settlement-related activities.
• The framework says that PSO will notify RBI about any breach of security and leakage of confidential information related to customers. PSO would be liable to its customers for any damage.
• PSO will also maintain a central record of all outsourcing arrangements.

Topic: Indian Economy

5. India’s goods exports in July 2021 increased 47.91%.

• India’s goods exports in July 2021 increased 47.91% to $ 35.17 billion.
• This is the highest exports recorded in at least nine years. Export growth is mainly led by petroleum products, gems & jewellery and engineering goods.
• India’s goods imports in July 2021 increased 59.38% to $46.40 billion. Imports of petroleum products, gold and pearls, precious and semi-precious stones have shown a sharp rise.
• Trade deficit during July 2021 was $11.23 billion. Exports in July 2021 were higher by 34.06 % than in July 2019.
• US, UAE and Belgium have shown the sharpest increase in exports during July 2021. Sharpest increase in imports during July 2021 was from UAE, Iraq and Switzerland.  
• India’s merchandise exports in July 2021 were $35.17 billion. This is an increase of 34 % over July 2019.

Topic: Indian Economy

6. PM Modi launched digital payment solution e-RUPI on 2nd August.

• PM Modi has launched e-RUPI, a person and purpose specific digital payment solution on 2nd August 2021.
• e-RUPI is a cashless and contactless tool for digital payment. It is a QR code or SMS string-based e-Voucher.
• It is delivered to the mobile of the beneficiaries. The users will be able to redeem the voucher without a card, digital payments app or internet banking access, at the service provider.
• National Payments Corporation of India has developed e-RUPI on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority.
• e-RUPI can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes.
• Private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes.

Topic: Appointments

7. AK Agarwal takes charge as General Manager of Integral Coach Factory.

• AK Agarwal has taken charge as General Manager of Integral Coach Factory from 30 July.
• He succeeds John Thomas. John Thomas is General Manager, Southern Railway.
• John Thomas was looking after the post of GM, Integral Coach Factory (ICF).
• AK Agarwal has earlier worked as Principal Chief Administrative Officer of Central Organisation for Modernisation of Workshops (Indian Railways) at New Delhi.
• Integral Coach Factory (ICF) is a manufacturer of rail coaches. It is headquartered in Perambur, Chennai in Tamil Nadu.

Topic: MoUs/Agreements

8. Indian Bank signs MoU with IIT Bombay for providing credit facility to Startups and MSMEs.

• Indian Bank has signed an MoU with Society for Innovation and Entrepreneurship (SINE) – an initiative of the Indian Institute of Technology, Bombay for providing credit facilities to Startups and MSMEs.
• Society for Innovation and Entrepreneurship (SINE) supports the MSME sector by providing joint research and development arrangements. It also provides technical and financial support for incubation.
• A loan up to 50 crore rupees will be provided by Indian Bank to startups for their working capital or purchase of machinery and equipment.
• This initiative is mutually beneficial for both Bank and IIT Bombay.

Read Banking Awareness PDF -3 and 4 August 2021