Banking Awareness of 9, 10 and 11 November 2022

Topic: Infrastructure and Energy

1. Coal Minister Pralhad Joshi said that domestic per capita power consumption is expected to double by 2040.

• He was speaking at the first investor conclave in Indore. Ministry of Coal held first ever investor conclave on 09 November at Indore.
• Coal Ministry held investor conclave for opportunities in coal sector.
• He said that per capita power consumption is not even one-tenth in comparison to some of the other developed economies.
• India’s per capita electricity consumption increased from 16 units in 1947 to 1,208 units in 2021.

Topic: Appointments

2. Centre has appointed nine Judicial Members and six Technical Members to NCLT.

• The Appointments Committee of the Cabinet (ACC) has approved their appointment to National Company Law Tribunal (NCLT).  
• The appointment of these fifteen members is for a period of five years or until attaining the age of 65 years, whichever is earlier.
• Currently, there are sixteen benches of NCLT all over India.

• National Company Law Tribunal (NCLT):
  • NCLT was formed under the provisions of Companies Act, 2013.
  • NCLT adjudicates cases filed under IBC, 2016.
  • Chief Justice (Retd) Ramalingam Sudhakar is its current chairman.

Topic: Appointments

3. The name of K Satyanarayana Raju has been recommended for the position of Managing Director & CEO in Canara Bank.

• Financial Services Institutions Bureau (FSIB) has recommended his name for the position of MD&CEO in Canara Bank.
• Raju is currently an Executive Director at Canara Bank.
• FSIB was newly created in July 2022. It replaced erstwhile Banks Board Bureau (BBB).
• Canara Bank:
  • It was founded in July 1906. It is headquartered in Bengaluru.
  • Lingam Venkat Prabhakar is its CEO.
  • Recently, the government has merged Syndicate bank with Canara bank.

Topic: RBI

4. Paytm Payments Bank has got RBI-mandated IT auditors report and RBI’s observation on it.

• The report has come after over six months after Paytm Payments Bank was asked to stop onboarding new customers.
• Paytm said that the observation is mainly around the continued strengthening of IT outsourcing processes as well as operational risk management.
• Paytm Payments Bank is a joint venture between Paytm (49% stake) and Vijay Shekhar Sharma (51% stake).

Topic: MoUs/Agreements  

5. A memorandum of understanding (MoU) has been signed between Business Association of Nagaland (BAN) and SBI.

• As part of the MoU, targeting of 1,000 Micro, Small and Medium Enterprises (MSMEs) for financing in the next two years is envisaged.
• Under the MoU, BAN will facilitate identification and preparation of MSMEs through project documentation, screening, and submission to State Bank of India.
• Once the loan is sanctioned, BAN will be responsible in providing training on book keeping, GST filing, etc.
• All beneficiaries have to grow through quarterly performance review.
• The MoU was signed at the concluding day of National Integrate Innovate Expand (NIIE) Trade Fair held at NER Agri Expo.

Topic: Banking System

6. Finance Minister has said that government’s efforts to strengthen PSBs are showing results.

• All the 12 PSBs together declared net profit of ₹25,685 crore in second quarter (Q2) ended September 30.
• The aggregate net profit for the first half this fiscal stood at ₹40,991 crore.
• SBI reported 74% increase in net profit in Q2 to ₹13,265 crore.
• Canara Bank recorded 89% increase in profit to ₹2,525 crore.
• Bank of Baroda reported 58.70% increase in profit at ₹3,312.42 crore.
• In the just-completed September quarter, SBI posted its greatest quarterly profit ever.
• Bank of Baroda reported a 15% increase in domestic advances year over year as of the end of September 2022.
• Punjab & Sind Bank has set its sights on a 15 percent increase in overall lending growth from the 3 to 4 percent reached in the previous fiscal year.
• Retail loans have increased significantly, notably in September 2022.
• Personal loans, which make about 26% of all bank loans to individuals, increased at a quicker rate of roughly 24% as RBI data showed.
• By the end of September 2022, India had approximately 37 lakh crore rupees in retail loans. 

Topic: Regulatory Bodies/Financial Institutions

7. Central Consumer Protection Authority (CCPA) has directed Cloudtail to recall 1,033 units of substandard pressure cookers.

• CCPA also directed Cloudtail to pay a penalty of ₹1 lakh for selling pressure cookers, which violated mandatory standards prescribed under the QCO.
• CCPA has initiated suo-motu action against various e-commerce platforms for selling substandard domestic pressure cookers.
• The pressure cookers were being sold to consumers on Amazon e-commerce platform.
• CCPA said that 1,033 units of pressure cookers not conforming to mandatory standards were sold by Cloudtail through Amazon after notification of the Quality Control Order (QCO).
• Cloudtail India is now a wholly-owned subsidiary of Amazon India.
• Central Consumer Protection Authority (CCPA):
  • It was established with effect from 24^th July 2020. It is headquartered in New Delhi. Nidhi Khare is current Chief Commissioner of CCPA.
  • The objective of CCPA is to promote, protect and enforce the rights of consumers as a class.

Topic: Indian Economy/Financial Market

8. Sovereign Green Bonds framework of India has been approved by Finance Minister Nirmala Sitharaman.

• This approval will help in attracting global and domestic investments in eligible green projects.
• The proceeds generated from the issuance of green bonds will be deployed in Public Sector projects that help in reducing carbon intensity of the economy.
• The Finance Ministry has formed a Green Finance Working Committee (GFWC).
• The committee has representation from relevant Ministries. It will be chaired by Chief Economic Adviser, Government of India.
• It will meet at least twice a year to support Ministry of Finance with selection and evaluation of projects.
• GFWC will review the allocation of proceeds in a time-bound manner to ensure that the allocation of proceeds is completed within 24 months from the date of issuance.
• Green bonds are financial instruments. They generate proceeds for investment in environmentally sustainable and climate-suitable projects.
• Allocation and utilisation of Green Bonds is also under the purview of audit by Comptroller and Auditor General (CAG).

Topic: Indian Economy/Financial Market

9. International Trade Settlements in Indian Rupees have been allowed for export promotion schemes.

• On 9 November, the Union Government allowed international trading bodies to transact in Indian Rupees for export promotion schemes under the Foreign Trade Policy.
• They have been allowed for invoicing, payments, and settlement of exports/imports in Indian Rupees.
• The change under Para 2.53 of the Foreign Trade Policy has been implemented to allow the fulfilment of export profits/export obligations for export receipts in Indian Rupees.
• Under the Foreign Trade Policy, the fulfillment of profits/export obligations has been extended to realization in Indian Rupees as per RBI guidelines dated July 11, 2022.
• Foreign Trade Policy was launched in 2015. Government has recently extended the Foreign Trade Policy 2015-20 time period for second time.

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