Banking Awareness of 9 and 10 February 2024

Topic: Banking/Financial/Govt Schemes

1. Under the FAME India scheme phase-II, electric vehicle subsidy for electric two-wheelers has been reduced to 15% of the ex-factory price.

• Earlier, the subsidy was 40%. Under phase-II of the scheme, any incentives would not be given to EV manufacturers.
• Consumers (buyers/end-users) will get incentives/concessions. These will be in the form of an upfront reduced purchase price for hybrid vehicles and EVs.
• Government would reimburse the incentives/concessions to the original equipment manufacturers (OEMs)/ EV manufacturers.
• Ministry of Heavy Industries is implementing two production-linked incentive (PLI) schemes to increase manufacture and exports of electric vehicles in India.
• The first PLI scheme is for the ‘National Programme on Advanced Chemistry Cells (ACC) Battery Storage’.
• The budgetary outlay for this scheme is Rs 18,100 crore. This scheme is to establish a cumulative ACC battery manufacturing capacity of 50 GWh.
• The second PLI scheme concerns the automobile and auto component industry. This scheme was approved on 15 September 2021.
• The budgetary outlay for this scheme is Rs 25,938 crore.
• Under this scheme, financial incentives are provided to increase domestic manufacture of Advance Automotive Technologies (AAT) products, which include EVs and their components.
• Ministry of Heavy Industries has increased the outlay on Faster Adoption & Manufacturing of Electric Vehicles (FAME) India scheme phase-II from ₹10,000 crore to ₹11,500 crore.

Topic: Indian Economy/Financial Markets

2. Two more Russian banks have registered as foreign portfolio investors.

• This has increased the total number of FPI registrations from Russia to 10.
• The names of two banks are Tinkoff Bank and CentroCredit Bank.
• Tinkoff Bank is the second largest provider of credit cards in Russia.
• It is world’s largest digital bank in terms of number of customers.
• It has taken a category I and category II licence.
• CentroCredit Bank is a universal bank. It has registered as a category II FPI.
• In October 2023, Russia’s Sberbank has registered as category I FPI. Three Russian banks have taken FPI licences to invest in India.
• Alfa Capital Management, First Asset Management, Asset Managing Corporation Dohod, Igor Noskov and Vsevolod Rozanov are other Russian entities to get an FPI licence in 2023.
• Traditionally, Russia invested through the FDI route. It ranked 28, having inflows of $1.276 billion from April 2000 to September 2023.
• Twenty Russian banks have opened rupee vostro accounts with authorised dealer banks in India.
• These accounts have been opened to enable rupee trade between the two countries.
• In July 2022, the RBI permitted international trade in rupees.

Topic: Indian Economy/Financial Market

3. Finance Minister Nirmala Sitharaman tabled a White Paper in Parliament on 8 February 2024.

• The paper called the tenure of Manmohan Singh, the Prime Minister during UPA regime (2004-14), as a “lost decade”.
• It said the Manmohan Singh’s tenure failed to capitalise on the strong foundational economy.
• The paper reiterated that the Amrit Kaal (25 years period) and next destination is making India a developed nation by 2047.
• According to the white paper, the average annual inflation rate between 2004 and 2014 was around 8.2%.
• It said the average annual inflation rate was in double digits over the five years from FY10 to FY14.
• Over the 10 years, a cumulative ₹94,060 crore of budgeted expenditure was left unspent.
• This amounted to 6.4% of the cumulative budget, compared to the 1% left unspent by NDA government during the last decade.
• According to the white paper, average per capita GDP between FY05-FY14 was $3,889, but average per capita GDP between FY15-FY23 was $6,019.
• As per the white paper, capital expenditure as % of GDP was 1.7 for FY14. However, capex as % of GDP was 3.2 for FY24.
• The white paper says sum of FDI between FY05-14 was $305 billion. On the other hand, sum of FDI between FY15-FY23 was $596.5 billion.
• As reported by the white paper, multidimensional poverty as % of population was 29.2 and 11.3 at the end of FY14 and FY23, respectively.
• Number of start-ups has increased from 350 as of 2014 to 1,17, 257 at end of 2023, according to the white paper.

Topic: RBI

4. RBI has raised the remuneration ceiling of Non-Executive Directors of private sector banks by ₹10 lakh.  

• Earlier, the ceiling was ₹20 lakh. The ceiling has now been raised to ₹30 lakh per annum.
• The ceiling has been raised only in respect of remuneration of Non-Executive Directors (NEDs), other than the Chair of the Board.
• The revised ceiling is applicable to NEDs of private sector banks. It also applies to NEDs of Small Finance Banks (SFBs) and Payment Banks (PBs).
• Additionally, it is applicable to the wholly owned subsidiaries of Foreign Banks.
• RBI’s instructions with regard to revised ceiling have become effective with immediate effect.
• RBI said in their Annual Financial Statements, the banks shall make disclosure on remuneration paid to the directors on an annual basis at a minimum. 

Topic: Banking System

5. Karnataka Bank has launched centenary campaign.

• The campaign is named ‘Bharat Ka Karnataka Bank’. It is jointly executed by Havas Media India and Havas Worldwide India.
• The campaign aims to strengthen Karnataka Bank’s brand awareness.
• It underscores the ability of Karnataka Bank to adapt to the changing times and staying true to its values.
• Srikrishnan H is Managing Director (MD) and Chief Executive Officer (CEO) of Karnataka Bank.
• Karnataka Bank is a Scheduled Commercial Bank based in Mangaluru, Karnataka.
• It is a private sector bank. It was founded on 18 February 1924. Its tagline is "Your Family Bank Across India.”

Topic: Committees/Commissions/Taskforces

6. The formation of a Group Advisory Committee has been announced by the Board of One 97 Communications Ltd.

• The committee is chaired by former SEBI Chairman M Damodaran.
• The committee will work with the Board in further strengthening compliance and regulatory matters.
• The committee includes M.M. Chitale, former president of Institute of Chartered Accountants of India (ICAI) and a former governing Council Member of Banking Codes and Standards Board of India nominated by RBI.
• R. Ramachandran is also part of the Group Advisory Committee.
• He is former Chairman and Managing Director of Andhra Bank.
• The company has taken this step after the RBI took action against Paytm Payments Bank for repeated violations of norms.

Topic: Awards and Prizes

7. Narasimha Rao, Chaudhary Charan Singh, and MS Swaminathan will receive India’s highest civilian award.

• Former Prime Ministers PV Narasimha Rao and Chaudhary Charan Singh, as well as agricultural scientist MS Swaminathan, will receive the Bharat Ratna.
• Chaudhary Charan Singh served as the sixth Prime Minister of India. He was sworn in on July 28, 1979, but stepped down 170 days after his government couldn’t prove his majority.
• He formed the Bharatiya Kranti Dal (BKD), which later merged with the Samyukta (United) Socialist Party to form the Bharatiya Lok Dal (BLD).
• Pamulaparti Venkata Narasimha Rao served as the 10th Prime Minister of India from June 21, 1991, to May 16, 1996. He is known for the economic reforms of 1991.
• The ‘Father of the Green Revolution’, Dr. Swaminathan, played a key role in changes introduced in farming in the 1960s and 1970s.
• Earlier, the government had announced giving Bharat Ratna to LK Advani and socialist icon Karpoori Thakur (former CM Bihar).
• Advani has served as Deputy Prime Minister in the Atal Bihari Vajpayee government.

Topic: Summits/Conferences/Meetings

8. World Sustainable Development Summit has been inaugurated by Vice-President Jagdeep Dhankar in New Delhi.

• It was inaugurated in the presence of Prime Minister of Guyana Mark Phillips and Union Minister for Environment, Forests and Climate Change Bhupender Yadav.
• On the occasion, Vice-President quoted Mahatma Gandhi and said the earth has enough for everyone’s need, but not for everyone’s greed.
• The summit is organised by 'The Energy and Resources Institute (TERI)'.
• The summit was held from 7-9 February 2024 in New Delhi.
• This is the 23rd edition of the annual summit of TERI.
• The theme for this year’s summit is Leadership for Sustainable Development and Climate Justice.

Topic: Banking/Financial/Govt Schemes

9. The sub-plan for PM Matsya Kisan Samriddhi-Yojana approved by the government.

• Pradhan Mantri Matsya Kisan Samriddhi Sah-Yojana, a Central Sector Sub-Scheme under Pradhan Mantri Matsya Sampada for the fisheries sector, has been approved by the Union Cabinet.
• A total of Rs 6000 crore has been earmarked for this scheme in the next 4 years.
• Out of the total, Rs 3,000 crore will come from public finance, including World Bank and AFD external financing, and the remaining 50% will be contributed by private sector beneficiaries.
• This sub-scheme will help in creating a National Fisheries Digital Platform to provide work-based identification to 40 lakh small and micro enterprises.
• This scheme will be implemented in all states and union territories for 4 years, from FY 2023-24 to FY 2026-27.
• In addition, the extension of the Fisheries Infrastructure Development Fund (FIDF) for another 3 years up to 2025-26 has also been approved by the Cabinet.
• The government approved the fund size of 7522.48 crore rupees and budgetary support of 939.48 crore rupees.
• Apart from this, a proposal from the Department of Telecommunications to conduct a spectrum auction was also approved by the Cabinet.
• The auction will be conducted for spectrum in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz frequency bands.
• The spectrum will be offered for a validity period of 20 years, valued at Rs 96,317.65 crore.

Topic: Appointments

10. Naveen Tahilyani appointed as CEO and MD of Tata Digital.

• Naveen Tahilyani has been appointed as the new Chief Executive Officer (CEO) and Managing Director (MD) of Tata Sons' subsidiary Tata Digital.
• On February 19, he will assume the new position.
• Currently, Tahilyani is the CEO and MD of Tata AIA Life Insurance.
• He will replace Pratik Pal, who played a key role in the launch of the company's super app Tata New.
• Earlier, after Tahilyani moved to Tata Digital, Tata AIA's Venkatachalam H was promoted internally and made CEO of the insurance company.
• Ajay Kumar Choudhary was appointed as non-executive chairman of NPCI.
• On 8 February, the appointment of Ajay Kumar Choudhary was announced by the NPCI as non-executive chairman of the Board and independent director.
• He has been appointed for a period of three years, starting February 8, 2024.
• Choudhary has replaced Biswamohan Mahapatra, who was appointed non-executive chairman in 2018.
• National Payments Corporation of India (NPCI):
  • NPCI was founded in 2008, and it is headquartered in Mumbai, Maharashtra.
  • Dilip Asbe is the Managing Director (MD) and Chief Executive Officer (CEO) of NPCI.
  • Venkatraman Srinivasan, Rishikesha Krishnan, D Manjunath, and Padmini Khare Kaicker are independent directors at NPCI.

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