Banking Awareness of 4, 5 and 6 October 2023

Topic: RBI

1. RBI has made search facility under its UDGAM portal available for 30 banks.

• According to RBI, this facility now covers around 90% of unclaimed deposits in value terms in Depositor Education and Awareness (DEA) Fund.
• UDGAM (Unclaimed Deposits – Gateway to Access inforMation) is RBI’s Centralised Web Portal.
• In August, the search facility was initially made available on the portal for seven banks.
• It was announced that the search facility for remaining banks on the portal would be made available in a phased manner by October 15, 2023.
• Reserve Bank Information Technology Pvt Ltd (ReBIT), Indian Financial Technology & Allied Services (IFTAS) and participating banks have collaborated for developing the portal.

Topic: Appointments

2. Ramaswamy Narayanan has been appointed as Chairman and Managing Director (CMD) by General Insurance Corporation of India (GIC Re).

• His appointment has become effective from 1 October. He will replace Devesh Srivastava.
• Devesh Srivastava’s four-year term ended on 30 September 2023.
• In June 2023, Financial Services Institution Bureau (FSIB) recommended Narayanan as the head of GIC Re.
• SBI Chairman Dinesh Khara’s tenure has been extended by Centre till August 28, 2024.
• His three year tenure was due to end on October 6.  He was appointed as chairman of SBI on October 7, 2020 for a period of three years.
• As per current norms, a person can hold the post of SBI Chairman up to the age of 63.
• GIC Re is an Indian public sector reinsurance company. It has headquarters in Mumbai. It was incorporated in 1972.

Topic: RBI

3. Indel Money receives licence for forex business.

• RBI has given it an Authorised Dealer (AD) Category-II licence.
• It can now start foreign exchange business, such as conversion of foreign currency bank notes, travel money cards, and outward remittances.
• Under Section 10(1) of the Foreign Exchange Management Act (FEMA), RBI authorizes select entities as AD Category-II to conduct specified non-trade related current account transactions.
• The AD Category-II foreign exchange license is better than the ordinary money exchange license.
• It provides more features such as facilitating outward remittances towards non-trade current account transactions.
• Indel money is a Non-Banking Finance Company (NBFC) regulated by the Reserve Bank of India (RBI).

Topic: Banking System

4. Slice will be merged with North East Small Finance Bank (SFB).

• RBI has approved the merger. Slice is a Fintech unicorn. It will become a SFB.
• It is a first-of-its-kind development in the fintech and banking space.   
• The details of the shareholding of the merged entity is not known.
• In March 2023, slice announced acquiring a 5% stake in NESFB for a value of $3.4 million.
• The merger is yet to get the shareholders’ consent and other regulatory approvals.

Topic: Reports and Indices

5. India’s services PMI increased to 61 in September 2023.

• Services Purchasing Managers’ Index (PMI) stood at 60.1 in August 2023.
• Growth in the output was 13 years high. Job creation was moderate. 
• As per index prepared by S&P Global Market Intelligence, the service sector reached to new heights in September because of the growth in domestic and international demand.
• The services sector has a 54% share in Gross Value Added (GVA).
• The index is based on responses from purchasing managers of 400 companies.
• The companies belong to consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services.
• An index above 50 means expansion.  An index below 50 refers to contraction.

Topic: Regulatory Bodies/Financial Institutions

6. Shell Foundation and SIDBI has launched a $6-million Risk Sharing Facility.

• This facility has been launched to improve access to finance and increase the adoption of electric two- and three- wheelers across India.
• Shell Foundation and SIDBI will contribute $3 million each to provide partial credit guarantee to electric vehicle (EV) ecosystem players who support EVs for commercial use.
• Risk Sharing Facility will compliment EV Mission 30@30 through SIDBI Mission 50KEV4ECO (enabling ecosystem to foster 50,000 EVs).
• UK-based Shell Foundation catalyses clean energy innovation in Africa and India.
• Small Industries Development Bank of India (SIDBI) is India’s principal financial institution for MSMEs.

Topic: RBI

7. RBI has kept the repo rate unchanged at 6.5%.

• Reserve Bank of India (RBI) Governor Shaktikanta Das released the bi-monthly monetary policy for the financial year 2023-24.
• The Monetary Policy Committee (MPC) met on 4th, 5th and 6th October 2023.
• RBI has maintained the repo rate steady at 6.5%. It is the fourth time that RBI has kept the repo rate unchanged.
• The MPC last raised this rate from 6.25% to 6.50% at its meeting in February 2023.
• The standing deposit facility (SDF) rate remains at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.
• The MPC also decided by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation.
• The retail inflation has been projected at 5.4% for 2023-24. Inflation will be 6.4% in the second quarter, Q3 at 5.6% and Q4 at 5.2%.
• Headline inflation had increased due to rise in the prices of tomato and other vegetable.
• It decreased partly in August and is expected to see further easing in September.
• Real GDP growth for 2023-24 is projected at 6.5 per cent. GDP growth in Q2 will be 6.5 per cent; Q3 at 6.0 per cent; and Q4 at 5.7 per cent.
• Limit of gold loan under Bullet Repayment Scheme for UCBs have been doubled to ₹4 lakh.
• Payments Infrastructure Development Fund scheme has been extended by 2 years to December 2025. It will now include beneficiaries of the PM Vishwakarma scheme.
• Next Monetary Policy Committee (MPC) meeting is scheduled for Dec 6-8, 2023.

Topic: Reports and Indices

8. World Bank retained India's GDP growth at 6.3 % for 2023-24.

• For FY 2023-24, the World Bank has decided to retain India’s GDP growth at 6.3%.
• The World Bank in its April report had cut India's growth forecast for 2023-24 to 6.3 per cent from the earlier 6.6 per cent.
• In the latest report, the World Bank highlighted India's remarkable resilience within a demanding global environment.
• India was one of the fastest-growing major economies in 2022-23 at 7.2 per cent despite significant global challenges.
• As per the World Bank report, India's economic resilience is based on several pillars, including robust domestic demand, substantial public infrastructure investments, and a strengthening financial sector.
• World Bank highlighted that bank credit growth has increased to 15.8 percent in the first quarter of FY23/24.
• World Bank predicted that global challenges will persist and potentially intensify due to factors like high global interest rates, geopolitical conflicts, and subdued global demand.
• Global economic growth is expected to decelerate due to these factors.

Topic: RBI

9. Muneesh Kapur has been appointed as executive director of RBI.

• With effect from October 3, the Reserve Bank of India (RBI) has appointed Muneesh Kapur as its executive director.
• Before being promoted to Executive Director, Kapur was Advisor in Charge of the Monetary Policy Department and Secretary of the Monetary Policy Committee.
• Over a period of nearly three decades, Kapoor has worked in the areas of macroeconomic policy and research and monetary policy in the Department of Economic Policy and Research and Monetary Policy Department at the RBI.
• During 2012–15, he also served as an advisor to the Executive Director of the International Monetary Fund.
• As executive director, Kapoor will look after the Department of Economic and Policy Research.

Topic: Banking System

10. SBI launched a ‘Mobile Handheld Device’ to bring financial inclusion to doorstep.

• The State Bank of India has launched a ‘Mobile Handheld Device’ to enhance accessibility and convenience in availing banking services.
• This innovative service has been unveiled by Dinesh Khara.
• Its main aim is to empower financial inclusion and extend essential banking services to the masses.
• It will revolutionize banking accessibility by bringing kiosk banking directly to customer’s doorstep.
• Cash withdrawal, cash deposit, fund transfer, balance inquiry and mini statement services will be provided by this Mobile Handheld Device.
• SBI is also planning to include services such as enrolments under social security schemes, account opening, remittance and card-based services.
• IndusInd bank launched ‘INDIE’. It is a customer-centric digital banking app.
• ‘INDIE’ uses analytics to offer tailored financial insights.
• It introduces industry-first features, which include ultra-flexible products. Users can customize these products to meet their specific requirements.
• It offers an instant line of credit of up to ₹5 lakh.

Read Banking Awareness PDF - 4, 5 and 6 October 2023