Topic: Awards and Prizes
1. Karnataka Vikas Grameena Bank has won the national award for Atal Pension Yojana (APY) enrolment.
- The bank has received the award from Pension Fund Regulatory and Development Authority (PFRDA) for significant enrolment under APY.
- Chairman of KVGB received the award from Secretary, Department of Financial Services, Government of India and Deepak Mohanty, Chairman of PFRDA.
- Shreekant M Bhandiwad is the Chairman of Karnataka Vikas Grameena Bank (KVGB).
- Under APY, KVGB enrolled 3,42,852 (cumulative) accounts.
- 76,569 accounts were enrolled by the bank during 2022-23 against the target of 50,320. It achieved the target ahead of the schedule.
- PFRDA’s target was average 80 accounts per branch. The bank has achieved average 121 accounts per branch.
- APY provides a safety net for informal sector workers for getting pre-defined pension after 60 years.
- Karnataka Vikas Grameena Bank is an Indian Regional Rural Bank sponsored by Canara Bank. It is headquartered in Dharwad, Karnataka.
- Atal Pension Yojana:
- The subscribers of the scheme of this scheme will receive a minimum monthly pension ranging from one thousand to five thousand after 60 years of age.
- The pension will depend on the contributions made by the subscriber.
- It is open to all bank account holders in the age group of 18 to 40 years.
2. The phase-in period for urban co-operative banks (UCBs) to meet priority sector lending (PSL) targets has been increased until March 31, 2026.
- This has been done to ease the implementation challenges faced by the UCBs.
- RBI governor said incentives will be provided to those UCBs that have achieved the targets as on March 31, 2023.
- As of March-end 2023, the priority sector lending (PSL) target was 60% of advances.
- The priority sector lending (PSL) targets for urban co-operative banks (UCBs) were revised in 2020.
- They were required to achieve the revised targets till March 31, 2024.
- As per the revised targets, 75% of advances of UCBs shall comprise priority sector loans, which include loans to micro, small and medium enterprises, export credit, housing, education, and agriculture.
- PSL targets of UCBs were increased by RBI from 40% in March 2020 to 75% by March 2024.
- In Priority Sector Lending, banks give specific portion of their lending to sectors specified by RBI.
- Agriculture, Micro, Small and Medium Enterprises, Export Credit, Education, Housing, Social Infrastructure, Renewable Energyand Others are categories under priority sector.
- Urban Co-operative Banks:
- These are the primary banks that are located in urban and semi-urban areas. They primarily lend to small borrowers and businesses.
- These are classified as scheduled and non-scheduled urban co-operative banks. These are partly regulated by RBI.
Topic: Banking System
3. Bank of Baroda has launched UPI facility in ATMs.
- With the launch of this facility, cash can be withdrawn via the Unified Payments Interface (UPI) in all ATMs of Bank of Baroda.
- The aim of the new facility is to protect bank customers from cloning, impersonation and fraud.
- In this facility, a unique QR code is generated for every transaction.
- ATM UPI service allows customers to avail only two transactions per day per account at a limit of ₹5,000.
- RBI has ordered banks to offer Interoperable Cardless Cash Withdrawal (ICCW) option.
- Interoperable Cardless Cash Withdrawal (ICCW) option allows people to withdraw their money from ATM without using ATM cards.
- Bank of Baroda:
- It is a public sector bank of India. It is headquartered in Vadodara, Gujarat.
- Its chairman is Hasmukh Adhia. Debadatta Chand is its MD&CEO.
- Its tagline is India’s International Bank. It was founded in 1908.
Topic: Banking System
4. Google Pay has launched UPI verification via Aadhaar card.
- With the help of this feature, customers will be able to register for UPI without the need of debit card.
- To activate UPI through Aadhaar, customers need to have a valid phone number linked to their bank.
- The phone number should also be registered with the Unique Identification Authority of India (UIDAI).
- PhonePe has launched account aggregator service after the receipt of RBI NBFC licence.
- With account aggregator service, customers can share their financial data like insurance policies, bank statements for services like loans, and new insurance.
- Google Pay is a mobile payment service. It is developed by Google.
- Unified Payments Interface (UPI):
- It is an instant real-time payment system for transferring money in bank accounts.
- It was launched in 2016. It was developed by the National Payments Corporation of India (NPCI).
5. RBI announced its second bi-monthly policy for this fiscal (2023-24).
- RBI Monetary Policy Committee has decided to keep the policy repo rate unchanged at 6.50 per cent.
- The Standing Deposit Facility (SDF) rate will remain at 6.25% and the marginal standing facility and the bank rates stand at 6.75%.
- According to RBI Governor Shaktikanta Das, the central bank has kept stability as a priority. The fundamentals of the domestic economy are improving.
- RBI has maintained pause for second time in a row. It has also kept repo rate unchanged in the previous monetary policy review of April 2023.
- RBI Governor Shaktikanta Das said Consumer Price Inflation has moved to tolerance band during March-April 2023.
- He said that the CPI headline inflation will remain at 5.1% for 2023-24.
- However, Headline Inflation is above the target of 4 per cent and is expected to remain so during 2023-24.
- RBI MPC has kept the GDP growth projection at 6.5 percent for 2023-24. GDP growth is expected to be 8% in Q1FY 24, 6.5% in Q2 FY24, 6% in Q3FY24, and 5.7% in Q4 FY24.
- Now, banks can issue RuPay pre-paid Forex cards. It will expand the scope of an e-rupee voucher.
- According to RBI, around 50 per cent of the Rs 2000 denomination notes have been deposited or exchanged by citizens.
- There were around total of 3.62 lakh crore 2 thousand notes in circulation. Out of which 1.8 lakh crore have been deposited or exchanged by the customers.
- RBI governor said that under the pilot project Central Bank Digital Currency (CBDC) testing will be done with 1 million customers by the end of June.
- RBI permitted non-bank Prepaid Payment Instrument (PPI) issuers to issue e-RUPI vouchers.
- Next meeting of MPC is scheduled for August 8-10, 2023.
Topic: Banking System
6. Millennia Credit Card has been introduced by HDFC Bank.
- The card has contactless technology. This allows customers to ‘Tap and Pay’ via POS machine.
- The card also provides cashback and reward points on Amazon, Flipkart, and other e-commerce platforms.
- It also offers 1% cashback on offline purchases and smart EMI.
- People can use HDFC Millennia Credit card for Amazon, Flipkart, BookMyShow, Cult.fit, and Myntra to earn 5% cashback points.
- It offers a maximum reward of ₹1000 in every billing.
- The card is available to both self-employed and salaried persons. For this card, minimum age limit is fixed at 21 and maximum age is fixed at 40.
- People who earn ₹35,000 gross salary are eligible and self-employed people with an annual income of ₹6 lakh or above are eligible.
- HDFC Bank:
- HDFC Bank is India's largest private sector bank. It is India’s second largest lender after the State Bank of India.
- It is headquartered in Mumbai. It was founded in 1994. The CEO of HDFC Bank is Sashidhar Jagdishan.
Topic: Banking/Financial Schemes
7. For 2023-24, PFRDA has decided a target of 1.34 crore enrolments for Atal Pension Yojana (APY).
- In 2022-23, the enrolment of 1.2 crore was achieved. This was against the target of 1.13 crore fixed for fiscal 2022-23.
- Pension Fund Regulatory Development Authority (PFRDA) has asked the banks to promote APY by activating their all branches in urban areas.
- Banks have been convinced to go for e-APY. E-APY provides for digital onboarding to the scheme.
- As of 01 June 2023, the number of subscribers to APY is 5.4 crore.
- APY is a pension scheme for informal sector and for people in 18-41 years age bracket.
- Under this scheme, subscriber would get a lifelong minimum guaranteed pension of ₹1,000 to ₹5,000 per month from the age of 60 years. The pension would depend on contributions of subscriber.
8. RBI has permitted all factors to take part as financiers on TReDS platforms.
- RBI has done this to increase the availability of financiers on TReDS (Trade Receivables Discounting System).
- All entities that are allowed to undertake factoring business under the Factoring Regulation Act, 2011 (FRA) have now been permitted to take part as financiers on TReDS platforms.
- TReDS transactions come under the ambit of factoring business.
- Presently only banks, NBFC-Factors and Other financial institutions can be financiers.
- The insurance facility for TReDS transactions has also been allowed by RBI to help financiers to hedge default risk.
- Now insurance players will become the fourth participants on TReDS platforms, along with MSME sellers, buyers and financiers.
- As of now, three entities operate the three TReDS platforms in the country. C2FO Factoring Solutions has been given in-principle authorisation.
- The three entities are A.TREDS (Invoicemart), Receivables Exchange of India (RXIL) and Mynd Solutions (M1 exchange).
- Trade Receivables and Discounting System (TReDS):
- It is an electronic bill discounting platform regulated by RBI. It is endorsed by the central government.
- It is an electronic platform to help in financing/discounting of trade receivables of MSMEs through multiple financiers.
9. The government has approved the third revival package for BSNL.
- The total outlay of the third revival package is 89 thousand 47 crore rupees.
- The authorized capital of BSNL will increase from one lakh 50 thousand crore rupees to two lakh ten thousand crore rupees.
- The revival package includes an allotment of 4G and 5G spectrum for BSNL through equity infusion.
- With this spectrum allotment, BSNL will be able to provide pan India 4G and 5G services.
- It will be able to provide 4G coverage in rural and uncovered villages under various connectivity projects.
- BSNL will also be able to provide Fixed Wireless Access (FWA) services for high-speed internet.
- The first revival package for BSNL and MTNL was approved by the government in 2019. It amounted to 69 thousand crore rupees.
- The second revival package for BSNL and MTNL was approved by the government in 2022. It amounted to 1.64 Lakh Crore rupees.
Topic: World Economy
10. The global economic growth cut to 2.1% from 3.1% by the World Bank due to interest rate hike.
- On 6 June, the World Bank (WB) stated that the global economy is in a precarious state and is heading towards a slowdown.
- It is because sharp interest-rate increases has hit activity and stirred the vulnerabilities in lower-income countries.
- In its latest outlook, the World Bank projects that the international economy will grow by only 2.1% in 2023, after expanding by 3.1% in 2022.
- According to the World Bank's 'Global Economic Prospects' report released on 6 June, the new growth forecast for the year 2023 is slightly better than the previous estimate in January.
- The World Bank had said in January that global growth would be only 1.7% this year.
- To combat rising inflation, the Federal Reserve and other central banks have raised interest rates significantly.
- Apart from this, due to Russia's attack on Ukraine, there is also a crisis of energy and food supply. The effects of the COVID-19 pandemic are also still present.
- Despite this, the World Bank feels that in the year 2024, the global economy will be able to achieve a growth rate of 2.4%.
- The World Bank has projected the Indian economy to grow at 6.3% this year, which is the highest among major countries.
- India's growth rate in the year 2022 was 7.2%.
- The World Bank has predicted a growth rate of 1.1% in the year 2023 for the world's largest economy America.
- The growth rate of the European Union has been projected to be 0.4% for this year.
- The World Bank has raised the growth forecast for China to 5.6%.
- The growth rate in Japan has been estimated to decrease from one percent to 0.8%.