GK Tornado for ESIC UDC Main Exam 2019
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www.gradeup.co 1 www.gradeup.co GK Tornado for ESIC UDC Main Exam 2019 Dear Aspirants, This GK Tornado is a complete docket of important Banking Awareness & Current Affairs news and events that occurred in last 3.5 months (1 May 2019 – 20 August 2019). This file is important and relevant for all competitive exams like Banking, Insurance, SSC and UPSC Exams. News related to RBI August 1. RBI reduces repo rate by 35 basis points Transfer (NEFT) systems would be available • On 7th August, in its 3rd Bi-monthly Monetary on a 24x7 basis from December 2019. Policy Committee meeting, the Reserve Bank of • At present, the NEFT payment system India has reduced the policy repo rate by 35 operated by the Reserve Bank as a retail basis points (bps). payment system is available to customers from • The repo rate under the liquidity adjustment 8am to 7pm on all working days of the week facility (LAF) was reduced from 5.75% to (except 2nd and 4th Saturdays, and all Sundays 5.40%. of the month). • The reverse repo rate under the LAF stands 3. RBI to set up “Central Payment Fraud Registry” revised to 5.15%. • The Reserve Bank of India (RBI) on 07th • The marginal standing facility (MSF) rate and August proposed to set up a central payment the Bank Rate revised to 5.65%. fraud registry (CPFR), which will monitor • RBI has also reduced the real GDP growth for digital payment frauds in real-time. 2019-20 from 7% to 6.9%. • The move is expected to boost customer • Governor Shaktikanta Das termed the steeper confidence in the payments systems. cut as a “balanced” call given the domestic and • At present, banks report all frauds in the global developments. system to the central fraud monitoring cell of • Four members voted for cut of 35 basis points the RBI. in rate; two members voted for 25 basis points • According to an RBI report, instant payment rate cut. systems such as immediate payment service • Next monetary policy statement on October 4. (IMPS) and unified payments interface (UPI) are expected to have annual growth of over Current rate is as follows: 100%, while national electronic funds transfer • Repo rate - 5.40% (NEFT) will witness 40% growth by 2021. • Reverse repo rate - 5.15% • Besides, the number of digital transactions is • MSF rate - 5.65% expected to increase fourfold to ₹8,707 crore • Bank rate - 5.65% by December 2021. • SLR – 18.75% • The central fraud registry was proposed earlier both in the Nandan Nilekani committee • CRR – 4% report and RBI’s payments vision document 2. NEFT to be available 24x7 from December 2019: 2019 to 2021. RBI 4. RBI alltargetednk of China to offer regular banking • Reserve Bank of India (RBI) on 07th August services in India announced that the National Electronic Funds 2 www.gradeup.co • The Reserve Bank of India (RBI) allowed Bank • Regulatory Sandbox (RS): It refers to live of China to offer regular banking services in testing of new products/services in a secure the country. &controlled regulatory environment, where • Banks falling under this schedule have to the regulators can allow certain regulatory adhere to the norms of the RBI. relaxations for the limited purpose of the 5. Atanu Chakraborty nominated on central board of testing. RBI • Background: The concept of Regulatory • The Union Government has nominated Atanu Sandbox was proposed by a committee headed Chakraborty as a Director on the Central Board by Sudarshan Sen, former executive director of of Directors of Reserve Bank of India (RBI). RBI. • Currently, he is a Secretary in the Department 8. Bank Retail loan growth slips to 5-year low in the of Economic Affairs, Ministry of Finance. first half of 2019 at 7.3 %: RBI • Shri Rajiv Kumar (new Finance Secretary) is • According to the latest monthly data of also a Director on the Central Board of RBI(Reserve Bank of India), the retail personal Directors of Reserve Bank of India. credit disbursement growth in the first half of Note: 2019(January -June) was 7.3%, which is the • The central board of directors is the main slowest rate of disbursement by banks in 5 committee of the central bank. years. • The RBI has four regional representations: 9. RBI Expands biller categories for Bharat Bill North in New Delhi, South in Chennai, East in Payment System Kolkata and West in Mumbai. • On August 7, 2019, the Reserve Bank of India • The headquarters of RBI is in Mumbai. (RBI) has permitted all categories of billers • Current Governor of RBI is Shaktikanta Das (except prepaid recharges), who provide for 6. Banks not to charge for failed transactions, balance recurring bill payments to participate in BBPS enquiry: RBI (Bharat Bill Payment System (BBPS)on a • Every month banks provide certain number of voluntary basis. free transactions at ATMs to their customers • RBI also decided to offer ‘on tap’ authorization and exceeding which charges are imposed. to entities wishing to function as / provide According to the Reserve Bank of India, the following platforms for transactions should not be counted as valid ATM • Bharat Bill Payment Operating Unit (BBPOU) transactions for the customer as the ‘free ATM • Trade Receivables Discounting System transactions’: (TReDS) • White Label ATMs (WLAs). • Transactions failed at ATMs due to technical 10. RBI’s Task Force on Offshore Rupee Markets reasons like hardware and software issues. headed by Usha Thorat recommends extension of • Transactions failed due to non-availability of onshore market hours – The Task Force formed by currency in ATMs. the Reserve Bank of India (RBI) on Offshore Rupee • Use of ATMs for non-cash withdrawal Markets headed by Usha Thorat has recommended the transactions such as balance enquiry, cheque extension of onshore market hours to 9 am to 9 pm, book request, payment of taxes, funds transfer. from 9 am to 5 pm, to improve access of overseas 7. RBI releases the final Regulatory Sandbox users and allow Indian banks to freely offer prices to Framework for Fintech Companies – On August 13, global clients around the clock. 2019, the Reserve Bank of India (RBI) issued the final 11. HFCs will be treated as one category under NBFCs: draft ‘enabling framework for regulatory sandbox RBI (RS)’, for the startups, banks and financial institutions • On August 13, 2019, India’s central bank, the aims at enabling innovations in the financial Reserve Bank of India(RBI) stated that, for technology space. regulatory purposes, Housing Finance • Criteria: RBI will launch the sandbox for Companies (HFCs) will be treated as one of the companies/banks that meet the criteria of the categories of NBFCs (Non-Banking Financial minimum net worth of Rs.25 lakh and the Companies) & it will come under RBI’s promoter/director of the entity should meet fit supervision. and proper framework. 3 www.gradeup.co 12. Residential Asset Price Monitoring Survey – RBI 13. RBI imposes Rs 11 cr fine on 7 PSBs for violating • Reserve Bank of India (RBI) survey has said norms that housing has become less affordable over • The Reserve Bank of India has imposed a the last four years. collective penalty of Rs 11 crore on 7 public • According to the report, Mumbai remains the sector banks. least affordable city in India, while • The penalty has been imposed for non- Bhubaneswar has the cheapest real estate compliance with certain provisions of among the 13 cities that were studied by RBI. directions issued by RBI on ‘Code of Conduct • As per the findings of the survey, the median for Opening and Operating Current Accounts. loan-to-value (LTV) ratio moved from 67.7% The penalties on 7 banks are as follows: to 69.6% between March 2015 and March • Allahabad Bank and Bank of Maharashtra 2019 showing that banks have become have been imposed with a penalty of Rs 2 increasingly risk tolerant. crore each. • The movement of median loan to income (LTI) • Bank of Baroda, Bank of India, Indian ratio also confirms worsening housing Overseas Bank and United Bank of India affordability as it moved from 3.0 in March have been imposed with a penalty of Rs 1.5 2015 to 3.4 in March 2019. crore each. Note: • Oriental Bank of Commerce has been • The Reserve Bank has been conducting a quarterly imposed with a penalty of Rs 1 crore. residential asset price monitoring survey (RAPMS) • RBI has also imposed a fine of Rs 1 crore since July 2010 on housing loans disbursed by on Corporation Bank for non-compliance select banks/ housing finance companies (HFCs) of norms related to cyber security across 13 cities, viz., Mumbai, Chennai, Delhi, framework for banks, frauds classification Bengaluru, Hyderabad, Kolkata, Pune, Jaipur, and reporting. Chandigarh, Ahmedabad, Lucknow, Bhopal and Bhubaneswar. July 1. B.P. Kanungo to run the monetary policy portfolio - Bank of India (RBI) on Comprehensive Review of RBI Market Timings has suggested calibrated extension of • Reserve Bank of India has assigned deputy Currency Market (Foreign Exchange Market) hours, governor B.P. Kanungo to run the monetary from 9 am to 9 pm for both Over the Counter (OTC) policy portfolio and forecasting department. and Exchange Traded. At present the markets close at After the exit of Viral Acharya, Kanungo has 5 pm. become the 6th member of the RBI’s Monetary Key Recommendations Policy Committee. • Bond Market: On account of lack of demand • Now, all the three deputy governors N S from participants group recommended that Vishwanathan, B P Kanungo and M K Jain have the government bond market timing can be been made responsible for 12 departments retained and the market be closed at 5 pm.