Banking Awareness of 9, 10 and 11 May 2023

Topic: RBI

1. RBI has imposed Rs 1.73 crore fine on HSBC for non-compliance with norms.

• RBI carried out the Statutory Inspection for Supervisory Evaluation of the bank with respect to its financial position as of   31 March 2021.
• The bank furnished incorrect credit information with reference to several expired credit cards to all four credit information companies (CICs).
• This was in contravention of the RBI’s rules. RBI concluded that charge of contravention of CIC rules warranted the imposition of a monetary penalty.
• RBI has also issued a penalty of Rs 2 lakh on the Trichur Urban Co-operative Bank Ltd, Thrissur (Kerala).
• RBI has imposed a penalty of Rs 1.25 lakh on Bhilai Nagarik Sahakari Bank Maryadit, Bhilai (Chhattisgarh).
• HSBC is a British multinational universal bank.

Topic: Miscellaneous

2. Max Life Insurance Company (Max Life) and Indian Industries Association (IIA) have entered into a strategic partnership.

• The partnership aims to provide life insurance plans to the MSME sector’s workforce in Uttar Pradesh.
• Max Life is the lead insurer for the Uttar Pradesh under the recently announced IRDAI’s State insurance plan.
• Sana Insurance Brokers Pvt. Ltd. is the enrolment partner to engage with the MSME workforce.
• Under IRDAI’s State insurance plan, Max Life aims to drive affordable insurance penetration across UP.
• Max Life Insurance Company is a private life insurer.
• Indian Industries Association (IIA) is an apex body of Micro, Small & Medium Enterprises.
• IIA’s motto is to create an enabling environment for the development of MSMEs. It was established in 1985.

Topic: Appointments

3. Rajiv Dhar has been appointed Chief Executive Officer & Managing Director of NIIFL.

• He has been appointed as MD and CEO of National Investment and Infrastructure Fund Ltd (NIIFL) on an interim basis, effective 11 May.
• Sujoy Bose held the position of MD and CEO of NIIFL since 2016.
• Dhar has served on the Investment Committee for all funds managed by NIIFL
• NIIFL manages over $4.3 billion of equity capital commitments across its three funds.
• These three funds are Master Fund, Fund of Funds, and Strategic Opportunities Fund.
• National Investment and Infrastructure Fund Ltd (NIIFL):
  • It was founded in February 2015. It is headquartered in Mumbai.
  • It is an investment platform for international and Indian investors anchored by the Government of India.

Topic: Appointments

4. The name of Parminder Chopra has been recommended for the post of next CMD of Power Finance Corporation (PFC).

• The Public Enterprise Selection Board (PESB) has recommended her name for the Chairman and Managing Director (CMD) post of
  PFC.
• Chopra will be the first woman to be appointed as the CMD of the Maharatna Company.
• She will be the first woman to lead India’s largest NBFC.
• Power Finance Corporation (PFC) is India’s largest non-banking financial company (NBFC) by networth (all reserves).
• Power Finance Corporation Ltd (PFC):
  • Power Finance Corporation Ltd (PFC) was formed in 1986. It is headquartered in New Delhi.
  • Rural Electrification Corporation (REC) is its subsidiary.
  • PFC is the largest infrastructure finance company dedicated to the power sector.
  • It is under the administrative control of the Ministry of Power.

Topic: Indian Economy/Financial Market

5. Finance Ministry has included directors of a company as reporting entity under the PMLA for certain activities carried out in the course of business.

• It has also included trustees of an express trust and nominee shareholders of company as reporting entity under the Prevention of Money Laundering Act (PMLA) for certain activities.
• This means that they will be responsible for violation of law.
• As per the Finance Ministry’s notification, five categories of activities, when conducted in the course of business on behalf of or for another person, are included in the ambit of PMLA. These categories are given below:
  • Acting as a formation agent of companies and limited liability partnerships
  • Acting as (or arranging for another person to act as) a director or secretary of a company, a partner of a firm or a similar position in relation to other companies and limited liability partnerships
  • Providing a registered office, business address or accommodation, correspondence or administrative address for a company or a limited liability partnership or a trust 
  • Acting as (or arranging for another person to act as) a trustee of an express trust or performing the equivalent function for another type of trust
  • Acting as (or arranging for another person to act as) a nominee shareholder for another person
• Intermediaries are not included in the new notified categories. There are some exemptions. The exemptions are given below.
  • Any activity that is carried out as part of any agreement of lease, sub-lease, tenancy or any other agreement or arrangement for the use of land or building or any space and the consideration is subjected to deduction of income-tax.
  • Any activity that is carried out by an employee on behalf of his employer in the course of or in relation to his employment
  • Any activity that is carried out by an advocate, a chartered accountant, cost accountant or company secretary in practice, who is engaged in the formation of a company to the extent of filing a declaration as required by Company law
• Last week, practicing chartered accountants, company secretaries and cost accountants were categorized by the centre as a reporting entity for certain activities carried out by them on behalf of their clients.
• CAs, CS and cost accountants are now obligated under PMLA to do know-your-client (KYC) norms of all clients engaging in the specified activities. 
• Prevention of Money Laundering Act, 2002 provides legal framework to combat money laundering. It came into force with effect from July 1, 2005.

Topic: Taxation

6. Businesses with a turnover of Rs 5 crore or more should adopt GST e-invoicing from 01 August 2023 as per Finance Ministry notification.

• The current threshold for e-invoicing stands at Rs 10 crore.
• According to Rule 48(4) of CGST Rules, specified class of registered persons are required to prepare invoice through Invoice Registration Portal (IRP).
• Such persons obtain an Invoice Reference Number (IRN). IRN issued by the notified supplier to buyer is commonly referred to as ‘e-invoice’ in GST.
• E-invoicing facilitates exchange of the invoice document between a supplier and a buyer in an integrated electronic format.
• Advantages of e-invoice are auto-reporting of invoices into GST return, and auto-generation of e-way bill (where required).

Topic: Indian Economy/Financial Market

7. Fitch has kept India’s sovereign rating at ‘BBB-’ with a Stable Outlook.

• BBB- is the last investment grade rating. Fitch has kept India's credit rating unchanged at 'BBB-' since August 2006.
• The agencies cautioned that India’s strengths are offset by its weak public finances and illustrated by high deficits and debt.
• As per IMF estimate, India is expected to grow at 5.9% in Fiscl Uear 2023-24 (FY24).
• World Bank expects India to grow at 6.3% in FY24. As per RBI, India is likely to grow at 6.5%.
• As per Fitch forecasts, India will be one of the fastest growing sovereigns globally at 6% in fiscal year ending March 24 (FY24).
• It said the growth will rebound to 6.7% by FY25. The agency forecasted headline inflation to decline to near 5.8% in FY24.
• Fitch is an American credit rating agency. It is one of the Big Three credit rating agencies. Other two are Moody's and Standard & Poor's.

Topic: Banking/Financial Schemes

8. Enrollment in PM’s social security schemes have crossed 55 crore mark in 8 years.

• PMJJBY, PMSBY and APY have recorded enrolments of 16.2 crore, 34.2 crore and 5.2 crore, respectively in eight years since their start.
• These three schemes were launched by the Modi on May 9, 2015 from Kolkata.
• Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana are insurance schemes for people.
• Atal Pension Yojana was launched to cover the exigencies in old age.
• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
  • It provides life cover of two lakh rupees in case of death due to any reason. The premium for the scheme is 436 rupees per annum.
  • It is a one-year life insurance scheme which has to renew every year.
  • Persons aged between 18-50 years having an individual bank or a post office account are entitled to enroll under the scheme.
  • People who join the scheme before completing 50 can continue to have the risk of life covered up to the age of 55 years upon payment of regular premium.
  • More than 16 crore people have enrolled for Pradhan Mantri Jeevan Jyoti Bima Yojana.
• Pradhan Mantri Suraksha Bima Yojana (PMSBY):
  • It provides accidental death cum disability cover of two lakh rupees (₹1 lakh in case of partial disability).
  • The premium for this scheme is 20 rupees per annum.
  • Persons between 18-70 years having an individual bank or a post office account are entitled to enroll under the scheme.
  • More than 34 crore enrolments have been made under the Pradhan Mantri Suraksha Bima Yojana.
  • More than one lakh 15 thousand families have received claims under this scheme.
• Atal Pension Yojana (APY):
  • 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.
  • More than five crore people have subscribed to Atal Pension Yojana.

Topic: Banking System

9. Union Bank of India will start wealth management vertical in the current financial year.

• This will be done to attract and retain HNI (high networth individual) and NRI (non-resident Indian) customers.
• State Bank of India and Bank of Baroda are among public sector banks that have a wealth management vertical.
• Union Bank of India posted its highest net profit in 30 quarters at Rs 2,782 crore in the fourth quarter of FY23.
• Union Bank of India aims to become the third largest public sector bank in terms of profitability by 2025.
• Union Bank of India was founded in 1919. Its CEO is A. Manimekhalai. It is headquartered in Mumbai. It is a government-owned bank.

Topic: Miscellaneous

10. Amitabh Kant’s new book titled “Made In India: 75 Years of Business and Enterprise” is released.

• “Made In India: 75 Years of Business and Enterprise” is a book authored by Amitabh Kant.
• It is an attempt by Amitabh Kant to shed light on the second-generation reforms which started in 2014.
• Amitabh Kant played a key role in flagship many initiatives like Make In India, Start-up India, Performance-Linked Incentive Scheme (PLI), Aspirational Districts, e-Mobility, Green Hydrogen, etc.
• The first chapter of the book is about how the British destroyed the Indian economy and what was India’s position on independence.
• Kant’s role in developing India’s tourism industry, especially putting Kerala on the global tourist map through the ‘God’s Own Country’ campaign are some key points of the book.
• Amitabh Kant was the second chief executive officer of NITI Aayog.

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