The Hindu-Review-January-March-2024-english Banking and Financial Current Affairs
- The Indian government has granted approval for the release of the 30th tranche of electoral bonds, set to go on sale from January 2 to January 11, 2024. This development precedes the upcoming general elections later this year and coincides with the anticipated Supreme Court verdict on the validity of the electoral bonds scheme.
- In a significant move, the Reserve Bank of India (RBI) has decided to substantially increase the bulk deposit limit for large urban co-operative banks (UCBs). The new limit now stands at ₹1 crore and above, a notable surge from the previous threshold of ₹15 lakh and above. The enhanced bulk deposit limit is specifically applicable to UCBs falling within the Tier 3 category, characterized by deposits ranging from ₹1,000 crore to $₹ 10,000$ crore, and Tier 4 category, encompassing UCBs with deposits exceeding $₹ 10,000$ crore.
- India’s corporate sector investment in the first nine months (9M) of FY24, totaling ₹10.80 lakh crore, has raised concerns as it lags behind expectations, according to Bank of Baroda’s Economic Research Department (ERD). The analysis, relying on CMIE data, indicates a cautious approach among industries, with a particular focus on aviation, chemicals, machinery, and power sectors.
- Tata Pay, the digital payments app under Tata Digital, has been granted a payment aggregator (PA) license by the Reserve Bank of India (RBI). This license positions Tata Pay among industry leaders such as Razorpay, Cashfree, and Google Pay, enabling it to efficiently handle ecommerce transactions within its subsidiary entities.
- The Reserve Bank of India (RBI) released its latest Financial Stability Report (FSR), revealing insights into the state of household financial savings and liabilities in the fiscal year 2022-23 (FY23). Despite a decline in gross household financial savings to $10.9 \%$ of GDP, the report emphasizes a limited risk of defaults by households, attributing it to the manageable exposure to higher mortgage payments and floating interest rates.
- State Bank of India (SBI) has successfully secured $\$ $ 1 billion (approximately Rs 8,300 crore) to address the growing demand in the domestic Environmental, Social, and Governance (ESG) financing market. This syndicated social loan issuance comprises $\$ $ 750 million, with an additional $\$ $ 250 million as a green shoe option, as disclosed in the regulatory filing made by SBI.
- National Payments Corporation of India (NPCI), IndusInd Bank has launched the UPI-enabled ‘Samman RuPay Credit Card,’ exclusively tailored for government sector employees. This initiative aligns with the recent RBI permission allowing RuPay credit cards to integrate with UPI payment applications.
- In a recent regulatory filing, Life Insurance Corporation of India (LIC) announced its board’s approval to acquire up to $10\%$ stake in a new company promoted by the National Housing Bank (NHB). The investment is targeted towards residential mortgage-backed securities and will be made through equity contribution in one or more tranches.
- In a significant move towards fostering rural development and financial inclusion, the Rural Development Ministry and the State Bank of India (SBI) have joined hands through a memorandum of understanding (MoU). The primary objective of this collaboration is to streamline and facilitate enterprise financing for rural self-help groups (SHGs), as announced in an official statement.
- In a significant move, the National Payments Corporation of India (NPCI) has introduced the UPI-PayNow linkage, facilitating direct remittances between India and Singapore. This collaboration, a result of close coordination between the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS), aims to enhance financial inclusion and convenience in cross-border transactions.
- The Indian government has recently announced the extension of the tenure of Michael Debabrata Patra as the Deputy Governor of the Reserve Bank of India (RBI) for an additional year. This marks the second time the government has decided to prolong his tenure, showcasing confidence in his leadership and expertise in steering critical departments within the RBI.
- In a recent announcement on January 12, the Reserve Bank of India (RBI) disclosed monetary penalties imposed on Dhanlaxmi Bank, Punjab and Sind Bank, and ESAF Small Finance Bank. The move is part of the central bank’s enforcement actions against rule violations in the banking sector.
- State Bank of India (SBI), the largest bank in the country, has introduced a special fixed deposit scheme known as the SBI Green Rupee Term Deposit (SGRTD). This initiative aims to gather funds dedicated to supporting environmentally-friendly projects, contributing to the development of a green finance ecosystem in India. The launch aligns with the government’s ambitious goal of achieving net carbon neutrality by 2070.
- FCI marks its 60th anniversary, with Union Minister Piyush Goyal praising India’s food self-sufficiency as a remarkable achievement in human history. On January 14, 2024, Goyal emphasized the FCl’s crucial role in preventing hunger for every citizen in the world’s most populous country.
- In a strategic move to bolster support for Micro, Small, and Medium Enterprises (MSMEs), Yes Bank has introduced SmartFin, an advanced digital Supply Chain Finance (SCF) platform developed in collaboration with Veefin Solutions. The initiative reflects Yes Bank’s commitment to fostering innovation and enhancing its digital offerings, particularly in the realm of working capital efficiencies.
- The Reserve Bank of India (RBI) has unveiled a draft framework for the establishment and recognition of selfregulatory organizations (SROs) in the fintech sector. The draft rules aim to strike a balance between fostering innovation within the industry and ensuring regulatory priorities are met for consumer protection and risk containment.
- In a groundbreaking move, the World Economic Forum (WEF) and the Telangana government are jointly establishing the 19th Centre of the WEF’s Fourth Industrial Revolution Network (4IR) in Hyderabad. The WEFTelangana Centre, slated for launch in February 2024, will be the world’s inaugural thematic center dedicated to health tech and life sciences.
- In a strategic move aligned with Reserve Bank of India guidelines, Karnataka Bank (KBL), a prominent private sector bank, and Clix Capital, a rapidly growing NBFC, have joined forces through the Yubi Co.lend Platform. This digital co-lending partnership targets the Indian MSME sector, a key driver of the country’s GDP and employment growth.
- In a significant turn of events, the Life Insurance Corporation of India (LIC) has not only staged an impressive comeback but has also surpassed the market capitalization of the State Bank of India (SBI). This article explores the recent surge in LIC’s share price, its journey since listing, and the factors contributing to its remarkable revival.
- In a strategic move, HDFC Bank Ltd, India’s largest private sector lender, is actively pursuing its first branch in Singapore. Following its significant merger with Housing Development Finance Corp. last year, HDFC Bank is looking to expand its global footprint.
- ICICI Bank Canada, a wholly-owned subsidiary of ICICI Bank Limited, has introduced its latest mobile banking app, ‘Money2India (Canada),’ providing Canadian customers with a seamless platform for 24/7 fund transfers to any Indian bank without the necessity of opening an account with ICICl Bank Canada.
- In celebration of its silver jubilee year, Central Depository Services (India) Limited (CDSL), Asia’s first listed depository, took a significant step towards inclusivity and accessibility in the capital market landscape. SEBI Chairperson Madhabi Puri Buch launched two groundbreaking multi-lingual initiatives at the silver jubilee function held on January 17.
- Unveiled by LIC Chairman Siddhartha Mohanty, the new Jeevan Dhara II plan offers a non-participating, individual savings, deferred annuity option. The plan provides life cover during the deferment period and boasts a higher annuity rate at advanced ages.
- The Asian Infrastructure Investment Bank (AlIB) has infused INR 4.86 billion (about USD 58.4 million) into Sustainable Energy Infra Trust (SEIT), India’s largest Renewable Energy Infrastructure Investment Trust (InvIT). SEIT, supported by Mahindra Susten Private Limited and Ontario Teachers’ Pension Plan, boasts eight operational solar power assets with a combined capacity of 1.54 gigawatts-peak spread across India. This marks AllB’s second foray into InvITs in India, emphasizing its commitment to innovative infrastructure financing solutions.
- In a groundbreaking move, YES BANK has become the inaugural Indian bank to execute an export finance transaction on RXIL Global IFSC Limited’s International Trade Financing Services Platform (ITFS). The collaboration marks a significant stride in digitization and cross-border business for YES BANK. The platform, registered under the International Financial Services Centres Authority (IFSCA), offers a digital avenue for arranging credit through Factoring, Forfaiting, and other trade financing services at competitive rates with swift processing. This historic transaction is the first of its kind on the ITFS platform in conjunction with any bank in India.
- On October 30, AU Small Finance Bank (AU SFB) announced its merger with Fincare Small Finance Bank, effective from February 1, 2024. The merger awaited approvals from critical stakeholders, including shareholders, the Reserve Bank of India (RBI), and the Competition Commission of India (CCI).
- In a significant milestone, HDFC Bank, India’s largest private sector bank, has emerged as the nation’s first lender to reach 20 million active credit cards. The bank, dominating a quarter of the overall card market, commenced its credit card operations in 2001 and previously attained the 10-million mark in 2017. The subsequent 10 million issuances transpired in just over six years, culminating in this achievement on January 16 , as announced by the bank.
- In a recent press release, the Reserve Bank of India (RBI) disclosed the revision of eligibility norms for the inclusion of urban co-operative banks in the second schedule of the Reserve Bank of India Act, 1934. The objective is to bring these banks under an updated regulatory framework. After the release of the Revised Regulatory Framework for Urban Co-operative Banks (UCBs) on July 19, 2022, with revised categorization norms for UCBs, the criteria for classifying a UCB as Financially Sound and Well Managed (FSWM) were notified. The RBI has now decided to align the eligibility norms for UCBs with the Revised Regulatory Framework.
- The Ministry of Petroleum and Natural Gas has granted approval for the formation of a subsidiary company by the Oil and Natural Gas Corporation Limited (ONGC), dedicated to the green energy and gas sector. This significant move was announced during ONGC’s board meeting on January 23, 2024, reflecting the company’s commitment to diversify its portfolio and contribute to sustainable energy solutions.
- In a significant development, the Reserve Bank of India (RBI) has granted approval to Life Insurance Corporation of India (LIC) for acquiring up to $9.99 \%$ aggregate holding in HDFC Bank, the nation’s largest private sector bank. The approval, based on LIC’s application to RBI, is subject to various conditions.
- Bank of Baroda’s wholly-owned subsidiary for cards, ‘BOB Financial Solutions Limited’, has undergone a rebranding, emerging as ‘BOBCARD Limited’ with the tagline “Credit Reimagined.” The transformation includes a distinctive logo named ‘Baroda Sun,’ featuring dual ‘B’ letterforms enveloping the rays of a rising sun. This initiative signifies a revitalized commitment to reshaping India’s credit landscape by offering innovative and customer-centric credit solutions.
