Topic: Banking/Financial/Govt Schemes
1. Union Cabinet has approved ₹1,165-cr funds for Himachal Pradesh and Uttarakhand.
- This funding is for Industrial Development Scheme (IDS), 2017 for these states.
- It will meet committed liabilities under the scheme up to 2028-29.
- It will generate direct employment opportunities for about 48,607 people by 774 registered units.
- This scheme was announced in 2018. The total financial outlay of ₹131.90 crore was allocated.
- This allocated fund has been exhausted during the financial year 2021-22.
- Under the scheme, all eligible and existing industrial units will be given Central Capital Investment Incentive for Access to Credit (CCIIAC) at 30% of the investment in plant and machinery with an upper limit of ₹5 crore.
- They will be provided CCIIAC on their substantial expansion in the manufacturing and service sector located anywhere in Himachal Pradesh and Uttarakhand.
- The units are also eligible for reimbursement of 100% insurance premium on insurance of building and plant & machinery for maximum 5 years from the starting of commercial production/operation.
Topic: Regulatory Bodies/Financial Institutions
2. The acquisition of up to 29.9% equity stake in RHI Magnesita NV by Ignite Luxembourg Holdings has been approved.
- The Competition Commission of India (CCI) has approved the acquisition of stake.
- The proposition combination leads to an indirect acquisition of RHI Magnesita India Limited (RHIM India).
- Ignite Luxembourg is a newly formed company. It is incorporated in Luxembourg.
- It is owned by investment funds that are indirectly sponsored and controlled by Rhône Capital LLC.
Topic: Indian Economy/Financial Market
3. India’s external debt increased by 0.9% to $624 billion in FY23.
- As per Finance Ministry report, India’s current foreign exchange reserve is sufficient to cover around 93% of total debt.
- As on August 25, forex reserve was at $594.86 billion.
- The report highlighted a valuation gain of $20.6 billion as of end-March 2023.
- India’s external debt as a ratio to GDP decreased to 18.9% as of end-March 2023. It decreased to 20% as of end-March 2022.
- The debt service ratio stood at 5.3%. The long-term debt formed 79.4% of the total external debt. The short-term debt was 20.6%.
- As on December 2022, total global debt was $9.32 trillion. For India it was $613.1. India was placed at the 22nd position.
- Sovereign External Debt (SED) accounted for 21.3% of the total external debt. It increased 1.9% to $133.3 billion as of end-March 2023.
- Non-SED accounted for 78.7% of the total external debt. It increased 0.6% to $491.3 billion as of end-March 2023.
- SED and non-SED have increased in absolute terms as of end-March 2023.
- SED and non-SED have reduced in terms of ratio to GDP.
4. Mastercard and KredX have partnered to transform B2B payments.
- As part of the partnership, Mastercard will integrate its commercial card services into the KredX platform.
- The new platform has features like dynamic discounting, early payment options, and price discovery mechanisms.
- These features enable enterprises and vendors to enhance their cash flow management significantly.
- The platform serves as an end-to-end procure-to-pay solution for businesses.
- The aim of this collaborative platform is to address other common challenges encountered in B2B payments like protracted accounting and reconciliation processes, limited vendor acceptance, and frequent chargebacks.
- KredX is a supply chain finance platform. Manish Kumar is its CEO and Founder.
- Mastercard is the world's second-largest payment-processing firm. It is headquartered in New York, USA.
Topic: Banking System
5. RuPay NCMC Prepaid Card has been launched by SBI.
- It has been launched to facilitate easy digital ticketing fare payments in metro, buses, water ferries, parking, etc., through a single card.
- National Common Mobility Card (NCMC) can also be used for making retail and e-commerce payments.
- State Bank of India is also implementing an NCMC-based ticketing solution in MMRC Metro Line 3 and Agra Metro.
- SBI Card has launched ‘SimplySAVE Merchant SBI Card’ for micro, small, and medium enterprises (MSMEs).
- It offers MSMEs interest-free short-term credit. The SimplySAVE Merchant SBI Card can be linked to UPI for payments through UPI-enabled third-party apps.
6. RBI has given approval to the appointment of Dipak Gupta as Kotak Bank interim MD.
- RBI has given approval for a period of two months, effective from September 2, 2023.
- Gupta’s term will last till November 1, 2023. Approved tenure is less than the proposed appointment schedule of four months till December 31, 2023.
- On September 2, Uday Kotak announced that he will step down as the MD and CEO of the bank.
- Kotak will remain as a non-executive director on the board of the bank.
Topic: Banking System
7. NPCI launched new payment options on payment platforms UPI.
- Newly launched payment options include conversational transactions.
- RBI Governor Shaktikanta Das announced the launch of the products by the National Payments Corporation of India (NPCI) at the ongoing Global Fintech Festival in Mumbai on 06 September 2023.
- The products will help UPI achieve the target of 100 billion transactions per month.
- NPCI has partnered with AI4Bharat at IIT Madras to co-develop Hindi and English payment language models.
- Hello! UPI is one of the products. It will make possible voice-enabled UPI payments via apps, telecom calls, and Internet of Thing (IoT) devices in Hindi and English.
- The credit line on UPI facility will allow customers to access pre-sanctioned credit from banks via UPI.
- Users will be able to send and receive money offline using LITE X product.
- The UPI Tap & Pay facility will allow customers to simply tap Near Field Communication- (NFC-) enabled QR codes to complete their payments.
- Global Fintech Fest (GFF) is the largest fintech conference.
- It is jointly organized by the NPCI, the Payments Council of India (PCI), and the Fintech Convergence Council (FCC).
8. Mahavir Lunawat has been appointed as Chairman of Association of Investment Bankers of India (AIBI).
- Mahavir Lunawat, Managing Director of Pantomath Capital Advisors, has been appointed for two years starting this month.
- AIBI chairperson represents Investment Bankers on the Primary Market Advisory Committee of SEBI.
- Arjun Mehra and Prem D’Cunha serve as its Vice Chairmen.
- In 1993 AMBI was incorporated as a Public Limited Company.
- In 2010, the name of AMBI was changed to Association of Investment Bankers of India (AIBI).
- AIBI is the investment banking industry's only representative to all statutory authorities, particularly SEBI.
9. Nasscom has appointed Rajesh Nambiar as its chairperson.
- Rajesh Nambiar is chairman and managing director of Cognizant India.
- Previously, he was the vice chairperson. He succeeds Anant Maheshwari, former president, Microsoft India.
- Debjani Ghosh is the President of Nasscom.
- National Association of Software and Services Companies (Nasscom):
- It was established in 1988 as an association of the software industry.
- It is the premier trade body and chamber of commerce of the Tech industry in India.