Topic: Banking System
1. Max Life Insurance Company and Capital Small Finance Bank (SFB) have entered into a partnership.
- Through the partnership, savings, protection, retirement, and group life insurance plans will be offered to customers of Max Life and Capital SFB.
- Max Life Insurance Company has joined hands with Capital Small Finance Bank as part of its growing Bancassurance network.
- Bancassurance is an insurance distribution model in which an insurance company partners with bank to sell policies.
- Capital Small Finance Bank Ltd started functioning as India’s first Small Finance Bank in 2016. Its headquarters is in Jalandhar, India.
- It was earlier a local area bank, called Capital Local Area Bank.
- Capital Local Area Bank was working as India's largest local area bank since 2000.
2. Government has permitted 22 financial companies to carry out Aadhaar-based authentication of clients.
- As per Finance Ministry’s latest notification, the reporting entities under the Prevention of Money Laundering Act (PMLA) can verify the customers’ identity using their Aadhaar numbers.
- The notification includes companies such as Godrej Finance, Amazon Pay (India) Pvt Ltd, Aditya Birla Housing Finance, Tata Motors Finance Solution, IIFL Finance, and Mahindra Rural Housing Finance Ltd.
- PMLA also prescribes other modes of verification like offline verification under the Aadhaar Act.
- It also prescribes use of a passport and any other officially valid document or modes of identification as may be notified by the Central government.
- Recently, UIDAI launched a feature for residents to verify their email and mobile number linked to their Aadhaar.
- Aadhaar is a 12-digit unique number issued by the Unique Identification Authority of India (UIDAI). It was launched on 28 January 2009.
Topic: Regulatory Bodies/Financial Institutions
3. SEBI has introduced Legal Entity Identifier (LEI) system.
- It has launched LEI system for issuers that have listed non-convertible securities, securitised debt instruments and security receipts.
- LEI system is also for issuers that are planning to list non-convertible securities, securitised debt instruments and security receipts.
- LEI is a unique global identifier for legal entities taking part in financial transactions.
- It is designed to develop a global reference data system which identifies every legal entity in any jurisdiction. The legal entity must be party to a financial transaction.
- It is a unique 20-character coder that can identify legally distinct entities engaged in financial transaction.
- As per RBI mandate, non-individual borrowers having aggregate exposure of more than Rs 25 crore must obtain LEI code.
- SEBI will later specify the requirement of LEI for issuers proposing to list or having outstanding municipal debt securities.
- The LEI code can be obtained from Legal Entity Identifier India Ltd.
- It is a subsidiary of the Clearing Corporation of India Ltd. RBI has recognized it as issuer of LEI.
Requirement as per SEBI circular
Issuers having outstanding listed non-convertible securities as on August 31
Obtain and report the LEI code in the centralised database of corporate bonds by September 1
Issuers having outstanding listed securitised debt instruments and security receipts as on August 31
Obtain and report the LEI code to the depositories by September 1
Issuers proposing to list non-convertible securities and securitised debt instruments as well as security receipts on or after September 1
Report their LEI code to the centralised database of corporate bonds and depositories respectively at the time of allotment of the International Securities Identification Number (ISIN)
- Global Legal Entity Identifier Foundation (GLEIF) accredited it as the local operating unit in India for issuance of LEI code.
Topic: Reports and Indices
4. The demand for gig workers who earn over ₹15,000 per month increased by 21.38% according to RazorpayX Payroll Insights.
- This is despite a 36.45% decline in the hiring rate in past six months.
- Most growth (28.24%) in the headcount of gig workers was seen in the business department.
- Headcount growth of 20.18% was recorded in the finance department.
- In the past six months, hiring full time employees slowed down across all departments as per the data.
- Hiring of full-time CXOs and senior executives declined the most (36.02%) in past six months.
- Within the gig workers’ cohort, total salary payouts increased by 20.94%.
- Gig workers are workers involved in a job that is temporary or freelance and performed on an informal or on-demand basis.
5. BharatPe will rebrand PAYBACK India as Zillion.
- BharatPe is a leading fintech. PAYBACK India is India’s largest multi-brand loyalty program.
- The company aims to target customers across age groups.
- Zillion will provide a wide range of options for customers to earn and redeem at a large number of partners across the country.
- Customers will be able to earn Zillion coins across the network of offline and online partners.
- BharatPe was co-founded by Ashneer Grover and Shashvat Nakrani in 2018.
Topic: Banking System
6. Visa has launched cardholder verification value (CVV)-free payments for tokenised cards.
- With the help of this feature, users can carry out online transactions without entering CVV, if the card has been tokenised.
- The merchants who will adopt CVV free feature will not need to ask customers for their CVV every time they do a transaction.
- They will verify three-digit CVV only once, at the time of tokenizing the card.
- Merchants like Zomato and payment service providers like Razorpay are live with the Visa’s CVV-free solution.
- Visa has earlier paused Visa Safe Click service, launched in 2019 to eliminate the requirement of CVV or OTP for transactions below Rs 2,000.
- Through tokenisation, card details are hidden with a unique code.
- Tokenised transactions are two-factor authenticated, once at the time of tokenisation and again when the OTP is entered.
- Through tokenization, customers are not required to put in details like the 16-digit debit or credit card number, CVV and the expiry date at the time of each transaction.
- Latest RBI data shows total debit and credit transactions totaled 458.8 million in February, worth Rs 1.68 lakh crore.
- National Payments Corporation of India data shows total UPI transactions in February exceeded 7.53 billion, processing payments worth Rs 12.35 lakh crore.
- Visa is an American multinational financial services corporation.
7. Finance Minister Nirmala Sitharaman addressed ADB’s Governors’ Seminar.
- She addressed the seminar on the theme ‘Policies to Support Asia’s Rebound’.
- The seminar was held as part of 56th ADB (Asian Development Bank) Annual Meeting in Incheon, South Korea.
- At the 56th ADB annual meeting in Incheon of South Korea, She emphasized on four ‘I’s for long-term sustainable growth.
- These ‘I’s are Infrastructure, Investment, Innovation and Inclusivity.
- She said World Trade Organisation (WTO) should look at farm subsidies with open mind.
- A WTO member country’s food subsidy bill is not allowed to breach the limit of 10% of the value of production based on the reference price of 1986-88.
- India has asked for inclusion of programmes implemented after 2013 under the ambit of ‘Peace Clause’.
- Under the Peace Clause, WTO Members agree to refrain from challenging breach in ceiling by developing nation at WTO’s dispute settlement forum.
8. GetVantage has obtained a NBFC licence from the RBI.
- Its NBFC arm GetGrowth Capital would manage the lending operations.
- GetVantage will capitalize the NBFC with ₹50 crore.
- It aims to raise ₹200 crore in total to scale up its lending operations.
- GetVantage is supported by investors, which include Chiratae Ventures, Varanium, InCred, DMI, and Japanese investors like Sony and DI.
- Earlier, BharatPe acquired a majority stake of 51% in NBFC Trillion Loans to boost its lending business.
- GetVantage is a revenue-based financing platform. Bhavik Vasa is its founder and CEO.
9. G20 TechSprint competition launched by RBI to improve cross-border payments.
- On 4 May, a global technology competition G20 TechSprint, has been launched by the Reserve Bank of India (RBI) for developing innovative solutions to improve cross-border payments.
- The fourth edition of the G20 TechSprint has jointly been launched by the RBI and the BIS Innovation Hub (BISIH) of the Bank for International Settlements under India’s G20 Presidency.
- The 2023 TechSprint will focus on solutions for three challenges cross-border payments face.
- Anti-Money Laundering and Sanctions technology solutions will be the first focus to reduce illicit finance risk.
- In second aspect, foreign exchange and liquidity technology solutions will be covered to enable settlement in emerging market and developing economy (EMDE) currencies.
- In the third, technical solutions for multilateral cross-border central bank digital currency (CBDC) platforms will be introduced.
- From May 04, 2023 to June 04, 2023, the competition is open to developers from around the world for submitting application and the TechSprint will conclude around August/ September 2023.
- Shortlisted teams will be invited to develop their solutions over a period of six weeks, and each team will be eligible for a stipend of INR 8 lakh, approximately US$10,000.
- For each problem statement, the winners will be awarded 40 lakh rupees approximately US$50,000.
10. Polavarapu Mallikharjuna Prasad will be the next Chairman and Managing Director of Coal India Limited (CIL).
- The Public Enterprises Selection Board (PSEB) recommended the name of Polavarapu Mallikharjuna Prasad as the next Chairman and Managing Director of Coal India Limited (CIL).
- He is currently serving as the chairman cum managing director of the Ranchi-based CIL arm - Central Coalfields Ltd (CCL).
- He joined as CMD of Central Coalfield Ltd in September 2020.
- Coal India Limited (CIL):
- Coal India Limited is a coal mining and refinery company owned by the government of India.
- It is the world's largest coal producer. It is a Maharatna Public Sector Undertaking.
- It is headquartered in Kolkata, West Bengal.