CURRENT AFFAIRS & STATIC GK CAPSULE FOR SBI PO, CLERK & Exclusively prepared for RACE students PAGE : 60 | | PRICE : NOT FOR SALE BOB PO MAINS EXAMS TOPIC : CA & STATIC GK CAPSULE BANKING & FINANCIAL AWARENESS ➢ The Reserve Bank of India has chosen ‘customer protection’ as RBI IN NEWS theme for the Financial Literacy Week beginning on June 4 till June 8 will focus on creating awareness among customers of banks about financial products and services, good financial practices and going digital. Second Bi-Monthly Monetary Policy Statement, 2018-19: ➢ The Reserve Bank of India has decided to allow Urban Co-Operative ✓ Resolution of the Monetary Policy Committee (MPC): Reserve Bank of Banks (UCBs) to convert into Small Finance Banks (SFBs). It is a move India aimed at bringing these entities into mainstream banking. The decision is Policy Rate Current Rate Previous Rate based on the recommendations of made by the High-Powered Committee Repo Rate 6. 25% 6. 00% on Urban Cooperative Banks chaired by R Gandhi (Former Deputy Governor Reverse Repo Rate 6. 00% 5. 75% of Reserve Bank) in August 2015. Marginal Standing Facility Rate 6. 50% 6. 25% ➢ RBI had decided to set up Public Credit Registry (PCR) to provide a single-point and real-time source for financial liabilities of a person or Bank Rate 6. 50% 6. 25% entity. The move is based on the recommendations of a committee it set up CRR 4% (Unchanged) 4% last year, headed by Y. M. Deosthalee. SLR 19. 5% (Unchanged) 19. 5% ➢ The Reserve Bank of India has amended the Gold Monetisation Scheme (GMS) 2015, whereby deposits can be placed with banks for ✓ The MPC revised CPI inflation for 2018-19 to 4. 8-4. 9% in the first broken periods such as one year three months, or 13 years four months half and 4. 7% in the second half. The MPC stated that the GDP growth 15 days. The designated banks are free to fix the interest rates on Short- rate for 2018-19 is retained at 7. 4 percent. Term Bank Deposits (STBDs), which are for a short period of one to ➢ As per a central bank directive, security/bond valuation will be based three years (with a facility of roll over). However, any pre-mature on the Weighted Average Price of the last half-an-hour of trading on the redemption of Medium and Long-Term Government Deposit (MLTGD) last trading day of every quarter against the last traded price earlier. The shall be only in rupees. Where the redemption of the deposit is in gold, methodology as to how the bonds are valued is crucial for Mark-To-Market an administrative charge shall be collected from the depositor. (MTM) purposes. ➢ The Reserve Bank came out with draft guidelines on loan system for ➢ The Reserve Bank of India has revised the limits on investment in delivery of bank credit to improve discipline among larger borrowers. It debt instruments by Foreign Portfolio Investors (FPI). The limit for FPI stipulates a minimum level of ‘loan component’ in fund based working investment in Central Government securities (G-secs) is 5.5% for 2018- capital finance and a mandatory Credit Conversion Factor (CCF) for the 2019. And 6% of outstanding stock of securities in 2019-20. For State undrawn portion of cash credit/ overdraft limits availed by large borrowers. Development Loans (SDLs) is 2% and corporate bonds is 9%. Borrowers having aggregate fund based working capital limit of Rs 150 ➢ The Reserve Bank had switched back to the Gross Domestic crore and above from the banking system, a minimum level of ‘loan Product (GDP)-based measure to offer its growth estimates from the component’ of 40 per cent shall be effective from October 1, 2018. It Gross Value Added (GVA) methodology, citing global best practices and will be revised to 60 per cent, with effect from April 1, 2019. had also changed the base year to 2018 from January. ➢ The Reserve Bank has altered priority sector eligibility and ➢ The Reserve Bank has tightened reporting norms for the Liberalised classification norms. The housing loan limits for eligibility under priority Remittance Scheme (LRS) under which an individual can transfer up to sector lending will be revised to Rs 35 lakh in metropolitan centres, Rs $2,50,000 abroad in a year. 25 lakh in other centres. Loans limit to housing projects for home ➢ The Reserve Bank of India (RBI) will buy government bonds worth up to construction economically weaker sections and low-income groups, is Rs10,000 crore. The purchase of securities will be made under the central revised to Rs 3 lakh per annum and Rs 6 lakh per annum respectively bank’s open market operations (OMOs). To bring some relief to the bond under Pradhan Mantri Awas Yojana. market which is reeling under the pressure of rising yields. The 10-year SBI IN NEWS government bond yield rose to 7.75% from 7.74% before the auction result ➢ The State Bank of India (SBI) will be investing a total of Rs 80 billion was announced. in the Arun III hydropower project of Nepal, which has 900 ➢ The Reserve Bank of India (RBI) has imposed a penalty of Rs.5 crore megawatts (MW) electricity production capacities. The Everest Bank on South Indian Bank (SIB) for non-compliance with its directions on Limited also will invest 3.60 Billion Rupees (2.25 Billion INR) in the Income Recognition and Asset Classification (IRAC) norms, Know Arun III. Everest Bank Limited is the Commercial Bank of Nepal, which is Your Customer (KYC) norms and treasury function. Chennai | Puducherry | Madurai | Trichy | Salem | Coimbatore | 7601808080 / 9043303030 www.RACEInstitute.inwww.RACEInstitute.in 9043303030 Erode | Namakkal | Tanjore| Tirunelveli | Trivandrum | Ernakulam| Bengaluru | Chandigarh| Vellore | CA & STATIC GK CAPSULE FOR - SBI PO, CLERK & BOB PO EXAMS 2018 | 2 joint venture of Punjab National Bank, India. The mega project is targeted branches into full-fledged bank branches and will have over 500 to be completed by 2022’s September. banking outlets by end of 2019. ➢ The SBI has announced the launch of its UK subsidiary, SBI (UK) ➢ Private sector lender IndusInd Bank said it has received RBI’s Limited, with an initial capital commitment of 225 million pounds from its approval to buy the securities services arm of IL&FS. parent entity. ➢ Digital payments company PayPal and exporters’ body the Federation of Indian Export Organisations (FIEO) have tied up to OTHER IMPORTANT BANKING & FINANCIAL NEWS promote exports, leveraging the technology platform. ➢ Small Industries Development Bank of India (SIDBI) has planned ➢ SIDBI celebrated its foundation day on April 2, 2018 as day of to promote micro enterprises in 115 aspirational districts across the country Sampark (connect), Sanwad (interaction), Suraksha (security) ‘Bankability to contribute in their development. So, the bank has tied up with Common Kit’ and Sampreshan (disseminate). It also launched ‘Samridhhi- the Service Centre (CSC) to meet this objective. virtual assistant’ on banks revamped universal loan portal ➢ Larsen & Toubro and BEL signed a memorandum of understanding www.udyamimitra.in. for defence products and systems in line with efforts to indigenise ➢ A Memorandum of Undertaking (MoU) was signed between the Indian defence sector under ‘Make in India’ initiative. Army and HDFC Bank on the Defence Salary Package. ➢ State-run Punjab National Bank (PNB) has launched new products ➢ Japan’s SoftBank Group Corp has agreed to launch a $930 million such as pre-approved credit card and UPI solution with “WALNUT” to Indian joint solar energy venture with Chinese firm GCL System mark its 124th foundation day (19th May 2018). Integration Technology Co as part of its India solar investment roadmap. ➢ Private sector lender Yes Bank said that it has received the Reserve ➢ Jio Payments Bank Limited has commenced operations as a Bank of India’s (RBI) approval to open two representative offices in London payments bank with effect from April 3, 2018. It is a joint venture of and Singapore. Reliance Jio and SBI. ➢ KYC norms have been revised following the government’s decision to ➢ The Global financial messaging cooperative SWIFT announced that update the ‘Prevention of Money Laundering’ rules in June last year. RBI ICICI Bank has become its first Indian client to go live with an improved made linking of national biometric ID Aadhaar to bank accounts cross-border payments service. The cross-border payments service refers to mandatory. the GPI (Global Payment Innovation) Tracker. ➢ Indian Overseas Bank (IOB), one of the leading public-sector banks, ➢ Jammu and Kashmir Bank has launched a special financing scheme entered into an agreement for information utility services with the National ‘Add on Working Capital GST’ to help the state industry cope with the E-Governance Services Limited (NeSL). delay in reimbursement of GST under special tax relief. ➢ State-run Bank of India (BoI) said it has entered into an agreement ➢ The Payment and transaction processing solutions provider and a with National E-Governance Services (NeSL) for information utility (IU) wholly owned subsidiary of Euronet Worldwide, Euronet India has arrangement under the Insolvency and Bankruptcy Code (IBC). partnered with Yes Bank to modernise the bank’s core payment ➢ India is poised to remain the fastest growing large economy in the infrastructure. world and its GDP is expected to reach $5 trillion by 2025 said by ➢ National E-Repository Limited (NERL), a group company of Economic Affairs Secretary Subhash Chandra Garg. National Commodity and Derivatives Exchange Limited (NCDEX), has ➢ Tata Consultancy Services (TCS) has become the first Indian $100 brought in ICICI Bank and HDFC Bank on board as the repository billion- dollar company in terms of market capitalisation (market-cap) in participants for pledge finance. They will offer pledge finance against the IT pack, after the stock hit a new high in intra-day trade.