Banking Awareness of 7, 8 and 9 September 2022

Topic: RBI

1. RBI has released an Alert List of 34 entities.

• These entities are not authorized to deal in forex under the FEMA Act,1999 and to operate electronic trading platforms for forex transactions.
• RBI said that the Alert List is not exhaustive. It is based on known entities at the time of publication.
• The Alert List has been uploaded on RBI’s website. Some of the entities include AnyFX, OctaFX (official sponsor of Delhi Capitals), Ava Trade, Binomo, e Toro, Exness, FBS, Forex.com, XTB, etc.
• RBI said if an entity does not appear in the list, it should not be assumed to be authorised by the RBI.

Topic: Appointments

2. S Krishnan has been appointed as Managing Director and CEO of Tamilnad Mercantile Bank.

• Krishnan Sankarasubramaniam has been appointed with effect from September 4, 2022 for three years.
• He earlier served as MD & CEO of Punjab & Sind Bank.
• IDBI Bank’s Board of Directors have approved the re-appointment of Samuel Joseph Jebaraj as Deputy Managing Director (DMD) on the Bank’s board.
• His appointment has been approved for a period of three years with effect from September 20, 2022.
• Tamilnad Mercantile Bank is a Thoothukudi (Tamil Nadu)-based bank.
• In June 2022, it received SEBI’s approval to raise funds through an initial public offering (IPO).
• IDBI Bank:
  • It was set up in 1964. It is headquartered in Mumbai.
  • Life Insurance Corporation of India (LIC) is the promoter of the IDBI Bank. It is having management control, with 49.24% stake.
  • The Government of India is co-promoter of the IDBI Bank without management control, with 45.48% stake.

Topic: Regulatory Bodies/Financial Institutions

3. The licenses of 16 food business operators have been suspended by FSSAI.

• The licenses have been suspended for not displaying the calorie count of food items on their menus.
• The mandatory menu labelling norms for the hospitality industry have become effective from July 1.
• Menu labelling norms are applicable to restaurant and hotel players with central licenses.
• Restaurant chains operating outlets in 10 or more than 10 locations must also comply with these norms.
• E-commerce aggregators selling food products of these restaurants must also declare menu labelling of the food items on their platforms.
• In addition to mentioning calories, serving size and allergen information is also required to be mentioned.
• Food Safety and Standards Authority of India (FSSAI):
  • It was established on 05 September 2008. It is a statutory body.
  • It is headquartered in New Delhi. FSSAI consists of a chairperson and 22 members.

Topic: Indian Economy/Financial Market  

4. Moody’s Investors Service continued to have India’s sovereign rating at Baa3 with a stable outlook.

• Moody’s Investors Service has forecast real GDP growth at 7.6% for the year ending March 2023.
• GDP growth for 2023 has been kept at 6.3%. CPI inflation is projected at 6.8% in this fiscal and at 5% next fiscal.
• It expects current account deficit to widen to 3.9% of GDP in fiscal 2022 from 1.2% in fiscal 2021.
• On 1 September, Moody’s had slashed India’s economic growth projection for 2022 to 7.7% from its previous forecast of 8.8%.
• Moody’s Investors Service said rising challenges to the global economy are unlikely to derail India’s ongoing recovery from the pandemic in 2022 and 2023.
• These challenges are the impact of the Russia-Ukraine war, higher inflation and tightening financial conditions.
• The agency said India’s economy is to be highly exposed to climate change risks.
• A stable outlook shows that there is a low likelihood of a rating change over the medium term.
• Moody’s Investors Service is one of the Big Three credit-rating agencies. It is headquartered in the USA.

Topic: Corporates/Companies

5. Ministry of Corporate Affairs (MCA) has now widened the pool of start-ups that can avail fast track corporate insolvency process.

• The facility of fast track corporate insolvency resolution process (faster winding up of business within 90 days) would be available to start-ups falling under ‘startup’ definition of February 2019.
• Earlier, only those start-ups falling under the ‘startup’ definition of May 2017 were eligible for the fast track corporate insolvency resolution process.
• In February 2019, the definition of startups was widened and the period for which an entity would be considered as a start-up was increased from 7 to 10 years.
• The ceiling turnover limit in any financial year was increased from ₹25 crore to ₹100 crore.
• India recorded 15,400% increase in number of start-ups from 471 in 2016 to 72,993 as of June 30, 2022.
• A fast track corporate insolvency resolution process should be completed within 90 days from insolvency commencement date. 
• Adjudicating Authority can extend it by further 45 days, if a resolution is passed at a meeting of the committee of creditors and supported by a vote of 75% of the voting shares.
• Government initiatives for Startups:
  • Government launched Startup India initiative in 2016.
  • As part of Startup India initiative, the government is implementing Fund of Funds for Startups (FFS) scheme and Startup India Seed Fund Scheme (SISFS).
  • FFS scheme and SISFS are to provide financial assistance to Startups through Alternative Investment Funds and incubators respectively. FFS was set up with a corpus of ₹ 10,000 crore.
  • An Action Plan for Startup India was released on January 16, 2016. It comprised of 19 action items.

Topic: Miscellaneous

6. Union Cabinet has approved PM SHRI Schools (PM ScHools for Rising India) scheme.

• The scheme of PM SHRI schools is to be implemented with a total project cost of Rs. 27360 crores.
• This includes a central share of Rs. 18128 crores for the period of five years from the year 2022-23 to 2026-27.
• PM SHRI School would be implemented through the existing administrative structure available for Samagra Shiksha, KVS & NVS.
• PM SHRI Schools is a new centrally sponsored scheme. This scheme will be for the development of over 14500 schools as PM SHRI Schools.
• Under the scheme, the schools will be developed as PM SHRI Schools by strengthening select existing schools being managed by Central Government/ State/ UT Government/ local bodies.
• PM Shree Schools will showcase all the components of the National Education Policy (NEP) 2020.
• They will act as exemplary schools. They will also provide support and guidance to other schools in their vicinity. 
• The PM SHRI schools will strive to create and nurture holistic and well-rounded individuals equipped with key 21st-century skills.
• Selection of PM SHRI schools will be done through Challenge Mode.
• More than 18 lakh students are expected to be direct beneficiaries of the scheme.

Topic: Miscellaneous

7. PM Modi virtually addressed plenary session of the 7th Eastern Economic Forum (EEF).

• The EEF 2022 took place from 5–8 September 2022 in the Far Eastern Federal University (FEFU) campus in Vladivostok, Russia.
• In his speech, Prime Minister Modi stated that India is prepared to bolster its relationships with Russia on Arctic subjects.
• He said that there is immense scope for enhancing cooperation in the field of energy.
• In the Eastern Economic Forum in 2019, he had announced India's Act Far-East policy.
• As a result, India’s cooperation with the Russian Far East has increased in many fields.
• India was the first country to open a consulate in Vladivostok. The 30th anniversary of the establishment has been completed.
• Russia is the largest investment destination for Indian oil and gas companies.
• Eastern Economic Forum (EEF):
  • It was established by Vladimir Putin in 2015.
  • It is a key international platform for establishing and strengthening ties within the Russian and global investment communities.
  • It is held each year since 2015 in Vladivostok, Russia.

Topic: Miscellaneous  

8. Union Cabinet approved a long-term leasing policy of railway land for implementing the PM Gati Shakti programme.

• The policy includes a reduction in land licensing fee to 1.5% of its market value per annum.
• The land licensing fee for the use of railways-owned land parcels is currently 6%.
• The new policy will provide land leases for up to 35 years, rather than the current five years.
• The new policy will help in increasing the railway’s share in freight transportation and increase the revenue of railways.
• The policy change will help in the construction of 300 PM Gati Shakti cargo terminals and the creation of 1.25 lakh jobs.
• The new land policy of railway land will pave way for privatisation of the Container Corporation of India (Concor).
• Concor is involved in the transportation and handling of containers under the aegis of the Ministry of Railways.
• The new policy will help in the development of public utilities like electricity, gas, water supply, telecom cable, sewage disposal, drains, and optical fibre cables (OFC), pipelines, etc.
• The policy will also allow the use of railway land at a nominal cost for the establishment of solar plants on railway land.

Topic: Banking System

9. Karnataka Bank is now included in the Karnataka Government’s integrated financial management system (IFMS) – Khajane-II.

• Karnataka Bank has now become part of Khajane-II for implementing single nodal agency (SNA) account system for Centrally-sponsored schemes.
• Karnataka Bank is actively engaged in government businesses after the appointment as agency bank by RBI.
• The bank will now strengthen the Government’s efforts in implementing sponsored schemes for disbursal of cash benefits to the targeted beneficiaries through direct credit to their bank account.
• Karnataka Bank is a Scheduled Commercial Bank based in Mangaluru, Karnataka. It is a private sector bank.
• IRDAI has given direct insurance broking licence to Lord’s Mark Insurance Broking for selling life and general insurance products.
• Lord’s Mark Insurance Broking is the insurance division of Lord’s Mark Industries, which manufactures stationery and supplies, LED products, solar power solutions etc.

Topic: Banking/Financial Schemes

10. About 16.32% of the total bank assets in Maharashtra under Pradhan Mantri MUDRA Yojana are unpaid as of June 2022.

• Highest non-performing assets (NPAs) are recorded at 60.54% in Parbhani district in the backward Marathwada region of Maharashtra.
• Parbhani is followed by Hingoli having NPAs of 33.31%. The third highest MUDRA NPA is in Mumbai.
• As of June 2022, over ₹30,019 crore were taken as loan under the MUDRA scheme by more than 53 lakh borrowers in Maharashtra.
• Out of this ₹4,898 crore taken by 6.19 lakh borrowers has been classified as NPAs.
• State-run banks account for a majority ₹4,031 crore of the overall ₹4,898 crore of bad loans.
• The NPAs of private sector banks are at ₹435 crore. Two regional rural banks have ₹325 crore of NPAs.
• Pradhan Mantri MUDRA Yojana was launched in April 2015. It was launched for providing loans to non-corporate and non-farm small/micro enterprises.

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