Banking Awareness of 7 and 8 June 2022

Topic: RBI

1. RBI has issued provisioning norms for standard assets for large NBFCs.

• The provisioning norms for NBFC-Upper Layer (NBFC-UL) will be effective from October 1, 2022.
• For individual housing loans and loans to Small and Micro Enterprises (SMEs), NBFC-UL are required to hold provisions in respect of standard assets at the rate of 0.25%.
• In case of housing loans extended at teaser rates, the rate of provisioning will be 2%.
• As per RBI, the provisioning will be 0.75% and 1% for Commercial Real Estate – Residential Housing (CRE - RH) and Commercial Real Estate (CRE) Sector (other than CRE-RH) sectors, respectively.
• In October 2021, RBI had issued a framework for scale-based regulation for NBFCs.
• RBI has now specified rates of provision for outstanding loans extended by 'NBFC-Upper Layer'.

Topic: Regulatory Bodies/Financial Institutions

2. Tamilnad Mercantile Bank gets SEBI’s approval to raise funds through IPO.

• The bank will use proceeds from initial public offering (IPO) for augmenting Tier-I capital base.
• The bank filed its draft red herring prospectus with SEBI in September 2021. 
• Tamilnad Mercantile Bank is a Thoothukudi (Tamil Nadu)-based private sector lender.

Topic: Banking System

3. PM Modi inaugurated Iconic Week Celebrations of the Ministry of Finance and the Ministry of Corporate Affairs on 6th June, 2022.

• The iconic week of the Ministry of Finance and the Ministry of Corporate Affairs is being celebrated as part of the ‘Azadi Ka Amrit Mahotsav’ (AKAM) from 6th to 11th June, 2022.
• PM Modi also launched Jan Samarth Portal. It is a national portal for credit linked government schemes.
• PM Modi also inaugurated a Digital Exhibition. It traces the journey of the two Ministries over the past eight years.
• He also released special series of ₹1, ₹2, ₹5, ₹10 and ₹20 coins. These coins are not commemorative coins and will be part of circulation.
• This special series of coins have the theme of the logo of AKAM.
• The special series of coins will also be easily identifiable to the visually impaired persons.

Topic: RBI

4. RBI has announced results of HARBINGER 2021.

• HARBINGER 2021 is first global hackathon of RBI. Its theme was ‘Smarter Digital Payments’.
• The Hackathon ran in three phases. Third phase was final evaluation. It was held on May 26-27, 2022 in Bengaluru.  
• In third phase, the 24 finalist teams presented their solutions for the problem statements.
• The winners of Hackathon 2021 are as follows.

Topic: Appointments

5. Alok Kumar Choudhary has been appointed MD of SBI with effect from June 7, 2022.

• Alok Kumar Choudhary replaced Ashwani Bhatia as MD of SBI.
• Ashwani Bhatia recently assumed charge as a whole-time member of SEBI.
• The State Bank of India (SBI) now has four MDs. The other three MDs are CS Setty, Swaminathan Janakiraman and Ashwini Kumar Tewari.
• State Bank of India (SBI):
  • It is a nationalized public sector bank. Dinesh Kumar Khara is its chairperson.
  • Its headquarters is in Mumbai, Maharashtra. Its tagline is The Banker to Every Indian.

Topic: RBI

6. RBI has increased repo rate by 50 basis points from 4.4% to 4.9%.

• Retail inflation projection has been increased from 5.7% to 6.7%.
• Rate on the standing deposit facility and marginal standing facility are now 4.65% (from 4.15% earlier) and 5.15% (4.65% earlier), respectively.
• Other highlights of RBI's third monetary policy review of the current financial year announced by Governor Shaktikanta Das are given below.
  • e-mandates on cards for recurring payments enhanced to ₹15,000 from ₹5,000.
  • Urban Co-op banks have been allowed to offer door-step banking.
  • Rural co-op banks have been permitted to lend to commercial Real Estate - Residential Housing (CRE-RH) sector.
  • Lending limits for housing loans by co-op banks have been doubled.
  • Credit cards will be linked with UPI. RuPay credit cards will be linked first.

Topic: RBI

7. RBI has kept GDP growth projection at 7.2% for current financial year (FY23).

• RBI has projected growth in the first quarter of the current fiscal at 16.2%. It will decline to 4% by the fourth quarter.
• In April, RBI has cut GDP growth projection for 2022-23 from 7.8% to 7.2%.
• On 7 June 2022, World Bank has lowered down India’s economic growth forecast for the current fiscal to 7.5%.
• World Bank has for the second time revised its GDP growth forecast for India in current fiscal 2022-23. In April, World Bank cut the forecast from 8.7% to 8%.

Topic: Indian Economy/Financial Market

8. Third monthly instalment of revenue deficit grant of ₹7,183 crore has been released by finance ministry to 14 states.

• Total Post Devolution Revenue Deficit (PDRD) Grant of ₹86,201 crore to 14 states for FY23 was recommended by 15th Finance Commission.
• This recommended amount is to be released in 12 equated monthly instalments.
• After the release of 3rd instalment for June 2022, total revenue deficit grants released to states in 2022-23 stand at ₹21,550.25 crore.

Topic: Banking System

9. Stashfin launched LiveBoundless.

• LiveBoundless is a credit line card especially for women.
• It offers cashback rewards, welcome credits, and free ATM withdrawals.
• Stashfin is a neobanking platform. Neo Banks are 100% digital (fully digital). They do not have any physical branches.

Read Banking Awareness PDF - 7 and 8 June 2022