Last 6 Months Banking, Finance & Economy Current Affairs ...

Last 6 Months Banking, Finance & Economy Current Affairs 2019

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1. January 2019 – Banking, Finance & Economy Current Affairs 1 to 18

2. February 2019 – Banking, Finance & Economy Current Affairs 19 to 36

3. March 2019 – Banking, Finance & Economy Current Affairs 37 to 46

4. April 2019 – Banking, Finance & Economy Current Affairs 46 to 57

5. May 2019 – Banking, Finance & Economy Current Affairs 57 to 67

6. June 2019 – Banking, Finance & Economy Current Affairs 68 to 82

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January 2019 – Banking, Finance & Economy Current Affairs

RBI allows lenders to recast debt of MSMEs with loans of up to Rs 25 crore

The Reserve Bank of India (RBI) on Tuesday allowed lenders to recast loans of stressed micro, small and medium

enterprises (MSME) provided that the total fund and non-fund based exposure to such borrowers is up to Rs 25

crore.

Such a debt restructuring, RBI said, will not lead to any downgrade in asset classification. “RBI has decided to

permit a one-time restructuring of existing loans to MSMEs that are in default but ‘standard’ as on January 1,

2019, without an asset classification downgrade,” the central bank said in a statement.

RBI allows Paytm Bank to restart account opening

Paytm Payments Bank, which was asked to halt on-boarding of new customers six months ago, is learnt to have

resumed the process for signing up new customers after receiving the go-ahead by the Reserve Bank of India.

Back in June, after an audit it had done, the RBI had found lapses in the KYC process employed by Paytm

Payments Bank.

RBI sets up UK Sinha panel to suggest measures for MSMEs

The Reserve Bank Wednesday set up an expert committee under former Sebi chairman U K Sinha to suggest long-

term solutions for the economic and financial sustainability of the MSME sector.

The RBI has announced the panel a day after it allowed a one-time restructuring of existing debt up to Rs 25 crore

for the micro, small and medium enterprises (MSMEs) which have defaulted on payment but the loans given to

them have continued to be classified as standard assets.

The eight-member committee will also examine the factors affecting the timely and adequate availability of

finance to the sector, the RBI said in a statement.

Cabinet clears merger of Dena Bank, Vijaya Bank with Bank of Baroda

The government on Wednesday approved the merger of Dena Bank and Vijaya Bank with Bank of Baroda (BoB) to

make it a globally competitive lender.

With the merger, BoB will become the third largest bank after State Bank of India and ICICI Bank.

The merger has been designed to make BoB as merged entity, a globally competitive lender, Prasad added.

Govt greenlights Rs 600 crore subsidy sops to merchant exporters

The government Wednesday decided to provide 3 per cent interest subsidy to merchant exporters, entailing an

expenditure of Rs 600 crore, to enhance liquidity with a view to boosting outbound shipments.

The decision was taken by the Cabinet Committee on Economic Affairs.

RBI licences two more P2P lending startups

Two more fintech players have got the NBFC license from the Reserve Bank of India to operate as peer to peer

lending platforms. One is RupeeCircle and the other is IndiaMoneyMart, both based out of Mumbai.

With this licence the two entities join the list of 11 P2P lending platforms which were registered by the central

bank last year.

India Money Mart which was a digital lending marketplace entered the P2P lending business in 2017.

RBI scales down printing of Rs 2000 note to minimum: Govt source

The printing of Rs 2000 banknote, introduced post-demonetisation in November 2016, has been reduced to the

"minimum" by the Reserve Bank, a top finance ministry official said Thursday.

Soon after the sudden decision to ban old Rs 500/1000 currency notes by the government, the Reserve Bank had







come out with the Rs 2000 currency note along with a new look Rs 500 note as part of its massive remonetisation

exercise.

When the Rs 2000 note was launched, it was decided that the printing would be "scaled down" going forward,

since the new high currency value note was meant for meeting the remonetisation need.

HDFC MF surpasses ICICI Prudential to become India's top asset manager

HDFC Mutual Fund has piped ICICI Prudential MF to become the country's largest asset management company

after a gap of over two years.

As of December-end, HDFC MF manages assets to the tune of Rs 3.35 trillion, while those of ICICI Prudential MF

stood at Rs 3.08 trillion, as per the latest data available with Association of Mutual funds in India (Amfi).

SEBI allows custodial services in commodity market

Markets regulator Securities and Exchange Board of India (SEBI) has allowed custodial services in the commodity

derivatives market.

The move is aimed at enabling the participation of institutional investors such as mutual funds and portfolio

managers in the commodity derivatives market.

Government increases fuel supply to power plants

The government on January 3, 2019 said that coal stock and coal supply to power plants has been increased to

meet the energy demands in the country.

According to the Ministry of Coal, the increase is about 25 per cent as compared to last year.

The Ministry said that with the focus on boosting the domestic Coal Supply, the Coal stock in power plants as on

December 31, 2018 was over 16 million tonne as compared to December 2017 which was around 13 million tonne.

PM Modi inaugurates development projects in Manipur

Prime Minister Narendra Modi on January 4, 2019 inaugurated and laid the foundation stone of 12 development

projects worth Rs 1,500 crore in Manipur.

The Prime Minister unveiled the plaque to mark the inauguration of various projects including Integrated Check

Post at Moreh, the Dolaithabi Barrage project, FCI food storage godown at Sawombung, Eco Tourism Complex at

Thangal Surung and various water supply schemes.

RBI extends customer protection to PPI deals

The Reserve Bank of India (RBI) has extended its customer protection framework in cases of payment frauds or

unauthorised transactions to the users of authorised prepaid payment instruments (PPIs).

Earlier the framework was restricted just to customer frauds in banks and NBFCs.

The users of PPIs now will not be liable for losses incurred due to fraud or discrepancy on part of the issuers.

In cases of third-party interference, there will be no customer liability if the matter is brought to notice within three

working days, and up to Rs 10,000 if reported between four to seven days.

Vijay Mallya becomes first person to be declared a 'fugitive economic offender' under new law

A special court in Mumbai declared absconding liquor baron Vijay Mallya a fugitive economic offender (FEO) on a

plea of the Enforcement Directorate.

Mallya has become the first businessman to be declared EFO under the provisions of the new Fugitive Economic

Offenders Act which came into existence in August last year.

Special judge MS Azmi declared Mallya an FEO under Section 12 of the Act after hearing extensive arguments

from the lawyer of Mallya and the ED counsel. Mallya, accused of defaulting on loan repayments and money







laundering, had left India in March 2016.

Reliance gets RBI nod for merger of subsidiaries

Reliance Industries Ltd (RIL) has received approval from the Reserve Bank of India (RBI) for cross-border merger of

Reliance Holding USA Inc, a wholly owned, step-down subsidiary of RIL with Reliance Energy Generation and

Distribution Ltd (REGDL), the company said in a regulatory filing on Friday.

REGDL is a wholly owned subsidiary of the company and would be subsequently amalgamated with RIL. RIL had in

June 2017 sought RBI’s approval for the proposed amalgamation.

PM lays foundation stone for revival of 6 irrigation projects in Jharkhand

Prime Minister Narendra Modi laid foundation stone of revival of six irrigation projects, including North Koel

(Mandal Dam) project amounting to 2,500 crore rupees and Kanhar Stone Pipeline irrigation system.

The Mandal Dam project will help around one lakh 11 thousand hectares of agricultural land in Jharkhand and Bihar to

get irrigation facilities and 24 MW of electricity will also be produced.

Other projects are irrigation canal from Sone river in Bihar to Garhwa in Jharkhand, Bater Wear reservior for Palamu,

Baini Banki Reservoir for Garhwa, Anjanawa reservoir for Chatra and Brahmani irrigation project for Chakradharpur

in West Singhbhum.

Centre amalgamates three regional rural banks

The Centre has amalgamated three Regional Rural Banks (RRB) -- Punjab Gramin Bank, Malwa Gramin Bank and

Sutlej Gramin Bank -- into a single RRB with effect from January 1.

The sponsor banks of the RRBs are National Bank for Agriculture and Rural Development (NABARD), the

Government of Punjab and Punjab National Bank, State Bank of India and Punjab and Sind Bank, it added.

United Bank of India, Srei Equipment Finance enter pact for MSME sector finance

United Bank of India and Srei Equipment Finance have entered into an agreement for financing the MSME and

agriculture sectors.

Under the pact, UBI would leverage its low-cost loans with Srei to enable purchase of equipment and vehicles in a

seamless manner, a statement by the state-run lender said.

Government revises interest rates on some small savings schemes

Government has recently changed interest rates on some selected small scheme savings scheme.

According to the revised rates, investment in time deposits of one-year, two-year and three-year maturity periods

will now fetch interest at the rate of 7 per cent in the quarter ending March 31, 2019.

Until December quarter, the government paid interest rates of 6.9 per cent, 7 per cent and 7.2 per cent on one-

year, two-year and three-year time deposits respectively.

However, it should also be noted that the interest rates applicable to all other small savings schemes, such as

Public Provident Fund (PPF), Savings Deposit, Kisan Vikas Patra (KVP) and Sukanya Samriddhi, were kept

unchanged.

ICICI Bank, Small Business FinCredit India to finance MSMEs

ICICI Bank has announced that it has signed a memorandum of understanding (MoU) with Small Business FinCredit

India (SBFC), a NBFC (Non-Banking Finance Company) for entrepreneurs, to jointly provide credit to MSMEs (micro,

small and medium enterprises).

The agreement enables MSMEs to obtain loans up to Rs 1 crore for a tenure of 15 years. Under this

arrangement, ICICI Bank will co-originate loan against property with SBFC at a mutually agreed ratio.

Nitin Gadkari lays foundation stone of 6 road projects in Jodhpur







Union Minister Nitin Gadkari inaugurated and laid foundation of six road projects worth 6,000 crore rupees in

border areas of Jodhpur on Saturday.

The minister dedicated works worth 2,000 crore rupees to the nation after their completion and laid foundation

for some projects worth 4,000 crore rupees.

Nepal writes to RBI to declare banned new Indian currency notes legal

Nepal has asked the RBI to declare newly circulated Indian currency notes of denominations higher than Rs 100 legal

tender in the country, according to media report on Sunday.

The Nepal Rastra Bank (NRB), the country's central monetary authority, has written a letter on Friday to the Reserve

Bank of India (RBI), asking it to make Indian bank bills Rs 200, Rs 500 and Rs 2,000 legal tender in Nepal, The

Himalayan Times reported.

The NRB has asked the India's central bank to issue a notification under the Foreign Exchange Management Act

(FEMA), which will make Indian bank notes of denomination more than Rs 100 legal tender in Nepal and to provide

the exchange facilities to get bills of such denominations, it said.

India's GDP estimated to grow at 7.2 per cent in 2018-19

India's GDP (gross domestic product) is estimated to grow at 7.2 per cent in 2018-19 compared to 6.7 per cent

attained during the previous fiscal, official data showed on Monday.

"Real GDP or GDP at Constant Prices (2011-12) in the year 2018-19 is likely to attain a level of Rs 139.52 lakh crore,

as against the 'Provisional Estimate of GDP for the year 2017-18' of Rs 130.11 lakh crore, released on 31st May

2018," the Ministry of Statistics and Programme Implementation said in "First Advance Estimates of National Income,

2018-19".

Bandhan Bank to buy mortgage provider Gruh Finance in share-swap deal

Bandhan Bank Ltd will buy mortgage provider Gruh Finance Ltd in a share-swap deal to build up its housing loan

portfolio, the companies said on Monday.

Under the merger cooperation agreement, shareholders of Gruh Finance will get 568 shares of Bandhan Bank for

every 1,000 shares held.

Kerala to set up country's largest Integrated Startup Complex on 13.5 acres

Kerala is setting up the country’s largest Integrated Startup Complex, which will house a Maker Village, Bionest,

and BRINC, the country's first international accelerator for Hardware startups, among other facilities.

Set up by Kerala Startup Mission (KSUM), the sprawling complex, spread over 180,000 sq ft in Technology

Innovation Zone (TIZ), will house Maker Village, Bionest and BRINC, the country's first international accelerator for

Hardware startups, BRIC, an incubator dedicated for developing solutions for cancer diagnosis care; and a Centre of

Excellence set up by industry majors like UNITY and CERA.

RBI issues guidelines on use of tokenisation to make card payments safer

Reserve Bank of India Tuesday released guidelines on tokenisation for various card transactions, including from

debit and credit cards.

Tokenisation, which aims at improving safety and security of the payment system, refers to replacement of actual

card details with an unique alternate code called the 'token', which shall be unique for a combination of card, token

requestor and identified device.

Instead of using actual card details, this token is used to perform card transactions in contactless mode at point of

sale(POS) terminals, quick response(QR) code payments.

RBI has given permission to offer tokenised card transactions services to all channels such as near field







communication (NFC), magnetic secure transmission (MST) based contactless transactions, in-app payments, QR

code-based payments or token storage mechanisms

RBI forms Nandan Nilekani committee to boost digital payments

Reserve Bank of India (RBI) has constituted a High-Level Committee on Deepening of Digital Payments to

encourage digitisation of payments and enhance financial inclusion.

The five-member committee headed by UIDAI’s former Chairman Nandan Nilekani will include RBI’s former Deputy

Governor Mr. H.R. Khan and Former Secretary, Ministry of Information Technology, Mrs. Aruna Sharma among

others.

In a statement, RBI said the committee will review the existing status of digitisation of payments and suggest ways to

bridge any gaps in the ecosystem, if any.

The Nandan Nilekani led panel will suggest measures to strengthen the safety and security of digital payments;

while also providing a road map for increasing customers’ trust while accessing financial services through digital

modes.

India takes over operations of Chabahar Port; sets up India Ports Global Chabahar Free Zone

India took over the operations of a part of Chabahar Port in Iran during the Chabahar Trilateral Agreement

meeting held on December 24, 2018 in Iran.

The heads of Indian, Iranian and Afghanistan delegation jointly inaugurated the office of the Indian SPV - India Ports

Global Chabahar Free Zone (IPGCFZ) at Chabahar.

The absolute take-over of the terminal area, cargo handling equipment and the office building was completed by

December 29, 2018.

India's GDP to grow at 7.3% in FY19, 7.5 % in next two years: World Bank

India's GDP is expected to grow at 7.3 per cent in the fiscal year 2018-19, and 7.5 per cent in the following two

years, the World Bank has forecast, attributing it to an upswing in consumption and investment.

The bank said India will continue to be the fastest growing major economy in the world.

China's economic growth is projected to slow down to 6.2 each in 2019 and 2020 and 6 per cent in 2021,

according to the January 2019 Global Economic Prospects report released by the World Bank on Tuesday.

In 2018, the Chinese economy is estimated to have grown by 6.5 per cent as against India's 7.3 per cent.

Adani partners Andhra to develop 'world's first green data center parks'

Andhra Pradesh government today signed an MoU with Adani Group to build data center parks up to 5 gigawatt

(gw) capacities in and around Visakhapatnam using 100 percent renewable energy over the next 20 years.

The move also marks the Adani Group's foray into the digital infrastructure sector.

India’s GDP set to eclipse US’ by 2030: StanChart

Seven of the world’s top 10 economies by 2030 will likely be current emerging markets.

The prediction for a shake-up of the world’s gross domestic product (GDP) rankings comes in new long-term

forecasts by Standard Chartered Plc, which includes a projection for China to become the largest economy by 2020,

using purchasing power parity exchange rates and nominal GDP.

India will likely be larger than the US in the same time period while Indonesia will break into the top 5

economies.

They project trend growth for India to accelerate to 7.8% by the 2020s while China’s will moderate to 5% by 2030

reflecting a natural slowdown given the economy’s size.







SEBI constitutes advisory panel to link research to policy making

Market regulator Security and Exchange Board of India (SEBI) has constituted a "Research Advisory" committee

that will assist in formulating policy to undertake research relevant for development and regulation of capital

markets.

The committee, headed by Sankar De, would comprise prominent financial economists and market practitioners.

GST exemption limit for MSMEs doubled

In a major relief to micro, small and medium enterprises (MSMEs), the GST Council chaired by finance minister Arun

Jaitley on January 10, 2019 doubled the GST exemption limit for companies in the sector to those with an annual

turnover of Rs 40 lakh from the current Rs 20 lakh. For North East and hilly states, the limit has been increased to

Rs 20 lakh from Rs 10 lakh.

Bringing about major changes in the composition scheme, the current turnover limit was increased to Rs 1.5 crore

from Rs 1 crore.

RBI makes changes in Gold Monetisation Scheme

The Reserve Bank of India (RBI) Wednesday made some changes in the Gold Monetisation Scheme (GMS) by

including charitable institutions and the central government, among other.

Apart from individual and joint depositors, the scheme could now be availed by charitable institutions, the central

government, the state government or any other entity owned by the central government or the state

government, the RBI said in a notification.

In 2015, the government launched the GMS to mobilise the gold held by households and institutions in the country.

The scheme allows banks’ customers to deposit their idle gold holdings for a fixed period in return for interest in the

range of 2.25-2.50%.

Sri Lanka's Central Bank gets $400 mn swap from RBI

Sri Lanka's Central Bank on Wednesday said that the Reserve Bank of India (RBI) has agreed to provide USD 400

million under a swap arrangement to boost the island nation's reserves.

It said that a further request to the RBI for another SWAP arrangement of USD 1 billion is "under consideration".

These are to be made available under the SAARC SWAP facility.

RBI slaps Rs 3 crore penalty on Citibank India

The Reserve Bank of India (RBI) has imposed a penalty of Rs 3 crore on Citibank India for not complying with

directions regarding the 'fit-and-proper criteria' for directors of the bank.

The RBI in a statement, however, added that the action is based on deficiencies in regulatory compliance and is not

intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its

customers.

Jana Small Finance Bank launches current account with auto-sweep facility

Jana Small Finance Bank has launched a current account with auto-sweep facility.

The facility will enable the bank’s existing and potential new customers to auto sweep-in and sweep-out idle funds

in the current account to the Sweep Fixed Deposit and earn interest on the funds.

For a tenor of 365 days on sweep deposit, customers will be able to earn interest of 8.5 per cent.

YES Bank signs MoU with Kia Motors

YES BANK, India’s fourth largest private sector Bank, signed a Memorandum of Understanding (MoU) with Kia

Motors, world’s eighth largest automaker, to enter into a strategic financing partnership, making it one of the

first Indian banks to become their preferred financier.







The benefits of this partnership will be extended to the entire auto value chain - Auto dealers as well as customers,

covering multiple car models offered by Kia Motors India.

Kia Motors is set to enter Indian market by second half of 2019 with an all-new mid-SUV which was previewed at

2018 Auto Expo.

RBL Bank and Nasscom tie up for customised credit to MSMEs

RBL Bank has signed an MoU with Nasscom to provide customised credit solutions to micro, small and medium

enterprises.

“The two entities will collaborate for various activities, including joint events and knowledge-sharing sessions, and

ensure continuous engagement with various chapters in 10 locations across India,” the bank said on Thursday.

Ashok Chawla resigns as chairman with immediate effect in light of recent legal developments: National Stock Exchange

National Stock Exchange today said Ashok Chawla has resigned as chairman with immediate effect in light of

recent legal developments.

In a statement, NSE said Mr. Chawla has resigned as Chairman of the Board of Directors of the National Stock

Exchange of India Ltd with immediate effect. However, the exchange did not provide specific details.

IDFC Bank re-named as IDFC First Bank

Private sector lender IDFC Bank said its name has been changed to IDFC First Bank Ltd with effect from Saturday.

"The name of the Bank has been changed from IDFC Bank Ltd to 'IDFC First Bank Limited' with effect from January

12, 2019, by virtue of 'Certificate of Incorporation pursuant to a change of name' issued by the Registrar of

Companies, Chennai," it said in a BSE filing.

IDFC Bank and non-banking financial company Capital First had announced the completion of their merger on

December 18, creating a combined loan asset book of Rs 1.03 lakh crore for the merged entity.

Government sets up common facility centres for gems and jewellery sector

With a view to strengthen the gems and jewellery industry, the Government has taken a number of steps,

including the establishment of Special Notified Zone (SNZ) and setting up of common facility centres for gems

and jewellery sector.

The measures include the creation of separate ITC HS Code for lab-grown diamond, reduction of GST rates for cut

and polished diamonds and precious stones, exempting IGST on the import of gold by specified agencies and

banks, official sources said.

VP Naidu inaugurates 25th edition of Partnership Summit 2019 in Mumbai

Vice President M. Venkaiah Naidu inaugurated the 25th edition of Partnership Summit 2019 in Mumbai

today.

Governor of Maharashtra C. Vidyasagar Rao and Union Commerce Minister Suresh Prabhu, and other dignitaries

were present on the occasion. New India Rising to Global Occasions is the theme of inaugural session of the

Summit.

Reserve Bank of India slaps Rs 1-crore penalty on Bajaj Finance

The Reserve Bank of India has imposed a penalty of Rs 1 crore on Bajaj Finance for deficiencies in regulatory

compliance.

According to RBI, the penalty has been imposed, by an order on January 3, for violation of 'fair Practices Code of

Master Direction DNBR'.

RBI to frame rules for bank CEOs’ pay

The Reserve Bank of India (RBI) is working on a set of rules that would link remuneration of banks CEOs to







parameters like balance sheet size of a bank, loan delinquency, profits and governance record.

The proposed framework is expected to provide a broad template to the board of directors of banks while

approving increase in salary, performance bonus and stock options to the senior most executive.

Sushil Modi to head committee to look into GST revenue shortfall faced by states

The Deputy Chief Minister of Bihar, Sushil Modi will be heading the seven-member group of ministers (GoM) that

will look into revenue shortfall being faced by the states after the GST roll-out and suggest steps for augmenting

collections.

As per terms of reference (ToR) of the GoM, the seven-member committee will undertake data analysis using

econometric and statistical tools and suggest suitable measures and policy intervention for course correction for

revenue augmentation, particularly for the states suffering high revenue shortfall.

All time high Rs. 61,084 Crores for MGNREGA

The Centre has allocated an additional 6 thousand 84 crore rupees to Mahatma Gandhi National Rural

Employment Guarantee Scheme, MGNREGA.

With this the total allocation for the scheme has reached an all time high of 61 thousand 84 Crore rupees.

Over the last 4 years, the Ministry of Rural Development has completed major reforms in the MGNREGA to

transform it into a resource for sustainable livelihoods for the poor.

The Ministry said, there has been a remarkable increasing trend in the budget allocation and release for the

programme from nearly 33 thousand crore rupees in 2014-15 to over 55 thousand crore rupees in 2017-18.

RBI announces OMO purchase of government securities on Jan 17

Reserve Bank will inject 10,000 crore rupees into the system through the purchase of government securities

tomorrow to increase liquidity. The central bank said in a statement that the purchase will be made through open

market operations (OMOs).

The statement said the eligible participants should submit their offers in electronic format on the RBI Core

Banking Solution (E-Kuber) system. The result of the auction will be announced tomorrow itself and payment to

successful participants will be made on the following day.

Sovereign Gold Bond Scheme 2018-19 (Series-V) opens

The Sovereign Gold Bond Scheme 2018-19 (Series-V) opened on January 15, 2019 for subion.

The issue price of the Bond during this subion period will be three thousand two hundred and fourteen rupees

per gram with the settlement date of January 22, 2019.

The Centre in consultation with the Reserve Bank of India has decided to allow discount of 50 rupees per gram

from the issue price to those investors who apply on-line and make the payment through digital mode.

PM Modi launches development projects worth over Rs 1500 crore in Odisha

Prime Minister Narendra Modi on January 15, 2019 visited Odisha and launched several development projects

worth over Rs 1,500 crore at Balangir, Odisha.

PM Modi dedicated electrified Jharsuguda-Vizianagaram and Sambalpur-Angul lines spanning 813 kilometres to

the nation. These railway lines were electrified at a cost of around Rs 1,000 crore.

The Prime Minister inaugurated the doubling of Barpali-Dungaripali and Balangir-Deogaon railway lines in the

state.

The 15 km-long Balangir-Bichhupali railway line laid at a cost of Rs 115 crores was also launched. It is part of the

new 289 kilometre Balangir-Khurda road line which connects Howrah-Chennai main line on Khurda Road and

Titlagarh-Sambalpur line at Balangir.







Government launches ‘Womaniya on Government e Marketplace’ initiative

The Union Government on January 14, 2019 launched the ‘Womaniya on Government e Marketplace (GeM)’, an

initiative to enable women entrepreneurs and Women Self-Help Groups (WSHGs) to sell handicrafts, handloom,

accessories, and other products directly to Government departments and institutions.

The Womaniya on GeM initiative aims to develop women entrepreneurship on the margins of society to achieve

gender-inclusive economic growth.

India has approximately 500 million Internet users and nearly 54 percent of them are more than 25 years of age

with higher discretionary income and likely to transact more online. Women constitute 33 percent or 143 million

Internet users and control 44 percent of household spending in India.

Maharashtra Government Signs MoU WITH UKIBC on Ease of doing business between UK and INDIA

UKIBC had yesterday signed a Memorandum of Understanding (MoU) with Govt of Maharashtra. This MOU is

about increasing the connections between UK businesses and Maharashtra that deliver investment, jobs, and

economic growth for both.

The MoU was signed during a UKIBC delegation to the Partnership Summit 2019 in Mumbai where leading UK

Businesses at showcased their commitment toward intensifying strategic investment in Maharashtra.

Cabinet approves Recapitalisation of Export-Import Bank of India

The Union Cabinet, chaired by Prime Minister Narendra Modi, on January 16, 2019 approved the recapitalisation of

the Export-Import Bank of India (EXIM Bank).

The Cabinet also approved an increase in the authorized capital of EXIM Bank from Rs 10,000 crore to Rs. 20,000

crore.

The Government will issue the Recapitalization Bonds to the tune of Rs 6000 crore for capital infusion in the EXIM

Bank.

The equity will be infused in two tranches. First tranche will be of Rs 4,500 crore in FY 2018-19, and then of Rs

1,500 crore in FY 2019-20.

7- Member GoM constituted for boosting Real Estate Sector under GST regime

The Ministry of Finance on January 15, 2019 constituted a Group of Ministers (GoM) for boosting the Real Estate

Sector under the GST regime.

The GoM was constituted in pursuance of the decision of GST Council taken in the 32nd meeting held on January

10, 2019 at New Delhi.

The Secretary of the GoM will be Manish Sinha, Joint Secretary (TRU-II), Central Board of Indirect taxes and

Customs (CBIC).

SBI, other banks agree to finance Nagpur-Mumbai Samruddhi Corridor

A consortium of banks led by State Bank of India has agreed to provide finance for Nagpur-Mumbai

'SamruddhiCorridor' expressway project. Bhushan Gagrani, Principal Secretary in the Chief Minister's Office said,

SBI has agreed to lend the highest amount, 8,500 crore rupees. Other lenders include Punjab National Bank, Bank

of Baroda, Bank of Maharashtra as well as the Life Insurance Corporation (LIC) of India.

The state government was falling short of 3,000 to 4,000 crores to reach the target of 26,000 crore rupees. The

consortium of banks has agreed to share that shortfall too. It has solved the major issue of financial support.

PM Modi to inaugurate Vibrant Gujarat Global Summit 2019 on January 18

Prime Minister Narendra Modi will inaugurate the ninth edition of the Vibrant Gujarat Global Summit 2019 on

January 18, 2019. The summit will be held at the Mahatma Mandir, Gandhinagar, Gujarat.







The Summit will witness presence of Reliance Industries Chairman Mukesh Ambani, Tata Sons Chairman N.

Chandrashekhran, Chairman of Aditya Birla Group Kumar Mangalam Birla, Adani Group Chairman Gautam Adani,

Godrej Group Chairman Adi Godrej, among others.

The theme of the Vibrant Gujarat Global Summit 2019 will be “Youth Connect 2019: Shaping A New India – The

Story of Billion Dreams”.

9th International Micro irrigation conference begins in Aurangabad

The 9th International Micro irrigation conference began on January 16, 2019 in Aurangabad, Maharashtra.

The conference will focus on the theme of “Micro Irrigation and Modern Agriculture”.

MP launches Rs 50000 crore 'Jai Kisan Rin Mukti Yojana'

In Madhya Pradesh, Chief Minister Kamal Nath launched the Rs 50000-crore farm debt-waiver scheme named 'Jai

Kisan Rin Mukti Yojana'.

It would benefit 55 lakh small and marginal farmers.

RBI further simplifies ECB norms

In an attempt to go one step ahead in ease of doing business the overseas borrowing norms have been simplified.

The Reserve Bank of India has rationalised the overseas borrowing norms allowing a uniform borrowing limit of Rs

750 million a year across tenors.

It has also broadened the scope of borrowers by allowing all entities that are eligible for foreign direct investment

(FDI) to borrow through the external commercial borrowing (ECB) route.

The government has been opening up this sector to attract capital flows ever since the rupee started depreciating

steeply vis-a-vis the dollar since April 2018.

RBI slaps Rs 1 crore fine on Bank of Maharashtra

The Reserve Bank of India (RBI) Wednesday imposed a Rs 1-crore penalty on state-owned Bank of Maharashtra

(BoM) for non-compliance of Know Your Customer guidelines and fraud-classification norms.

This penalty has been imposed taking into account the failure of the bank to adhere to directions issued by the RBI,

the central bank said in a statement.

Suresh Prabhu inaugurated the 10th edition of the India Rubber Expo - 2019

Union Minister for Commerce and Industries, Suresh Prabhu inaugurated the 10th edition of the India Rubber Expo -

2019 in Mumbai on January 17, 2019.

The India Rubber Expo is Asia's largest rubber expo. The event offers a unique opportunity for Indian companies

to meet and collaborate with overseas companies.

PMRPY crossed milestone of one crore beneficiaries as on Jan 14

The Pradhan Mantri Rozgar Protsahan Yojana, PMRPY has crossed the milestone of one crore beneficiaries as on

the 14th of this month.

The Centre's flagship scheme launched on 7th August, 2016 incentivises employers to promote employment

generation.

PM Modi inaugurates Vibrant Gujarat Global Summit 2019

Prime Minister Narendra Modi inaugurated the ninth edition of the Vibrant Gujarat Global Summit 2019 on

January 18, 2019. The summit is being held at the Mahatma Mandir, Gandhinagar, Gujarat.

The Summit witnessed the presence of Reliance Industries Chairman Mukesh Ambani, Tata Sons Chairman N.

Chandrashekhran, Chairman of Aditya Birla Group Kumar Mangalam Birla, Adani Group Chairman Gautam Adani,

Godrej Group Chairman Adi Godrej, among others.







The theme of the Vibrant Gujarat Global Summit 2019 was “Youth Connect 2019: Shaping A New India – The Story

of Billion Dreams”.

Fifteen countries including Australia, Canada, France and Japan have agreed to be “partner countries” this year.

Unlike past summits, the United States and United Kingdom will not be associating themselves with the Summit

as `Partner Countries’ this year.

India, JICA sign loan agreements on Japan’s Official Development Assistance Loan to India

India and Japan-India Cooperative Actions (JICA) on January 18, 2019 signed the loan agreements under the

Japanese Official Development Assistance Loan Program.

The Loan Agreements were signed by Dr. C.S. Mohapatra, Additional Secretary, Department of Economic Affairs,

Union Ministry of Finance, and Katsuo Matsumoto, Chief Representative, JICA in New Delhi.

The agreements under the Japanese Official Development Assistance Loan were singed for two projects. These are:

(i) Project for the Construction of Chennai Peripheral Ring Road (Phase 1) for Japanese Yen 40.074 billion

(around Rs 2470 Crore)

(ii) Program for Japan-India Cooperative Actions towards Sustainable Development Goals in India for Japanese

Yen 15.000 billion (around Rs 950 Crore).

BHEL and LIBCOIN in dialogue to build India's first lithium ion factory

Consortium to initially build 1 GWh lithium ion battery plant and capacity will be scaled up to 30GWh in due course.

Bharat Heavy Electricals (BHEL) and Libcoin are in dialogue to form a world class consortium to initially build 1GWh

lithium ion battery plant in India. Its capacity will be scaled up to 30GWh in due course. With this, India has finally

taken steps into its energy security and clean energy commitment to the world.

Two-day Agri Vision concludes in Hyderabad

The 2-day Agri Vision 2019 Conference on envisioning Agro solutions for Smart and Sustainable Agriculture, which

was inaugurated by Vice-President M Venkaiah Naidu on Thursday, has concluded here on Friday.

The two day conference was jointly organized by Professor Jayashankar Telangana State Agricultural University

(PJTSAU), Confederation of Indian Industry(CII) and Cornell University, USA.

RBI starts two quarterly surveys of manufacturing, services, infra sectors

The Reserve Bank of India (RBI) on Monday initiated two quarterly surveys to examine the current situation

including the job scenario in India's manufacturing, services and infrastructure sectors.

Findings of the two surveys -- Industrial Outlook Survey (IOS), and Services and Infrastructure Outlook Survey (SIOS)

-- would be significant for the government and the opposition as the country heads for the Lok Sabha polls in May.

ICICI Bank launches premium savings account for men "The One"

ICICI Bank has launched a new premium savings account for upwardly-mobile male customers, named ‘The ONE’.

It is available in two variants - Magnum and Titanium.

It offers the account holder with a range of benefits including the option of opting for health and term life

insurance. It also waives the processing fees for home loans for account holders.

Nepal's Central Bank bans use of large-denomination Indian currency notes

Nepal's central bank has banned the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations,

a move that could affect Indian tourists visiting the Himalayan nation where Indian currency is widely used.

Nepal Rastra Bank on Sunday issued a circular prohibiting Nepali travellers, banks and financial institutions from

holding or carrying and trading Indian bank notes higher than Rs 100, the Kathmandu Post reported.

LIC completes the acquisition of 51% controlling stake in IDBI Bank







IDBI Bank Monday said Insurance behemoth LIC has completed acquisition of 51 per cent controlling stake in the

bank, making it the lender's majority shareholder.

"The deal, conceptualised in June 2018, is envisaged as a win-win situation for both IDBI Bank and LIC with an

opportunity to create enormous value for shareholders, customers & employees of both entities through mutual

synergies," IDBI Bank said in a BSE filing.

In August last year, the Cabinet approved the acquisition of controlling stake by Life Insurance Corporation (LIC)

as a promoter in the bank through a combination of preferential allotment and open offer of equity.

India will remain one of the fastest growing major economies, says IMF

The International Monetary Fund (IMF) says India's economy is poised to pick up this year. It is projected to grow

at 7.5 per cent this year and 7.7 per cent in 2020, an impressive over one percentage point ahead of China's

estimated growth of 6.2 per cent in these two years. The IMF attributed the pick up to lower oil prices and a slower

pace of monetary tightening.

In its January World Economy Outlook released in Washington today, it said India would remain one of the fastest

growing major economies of the world. Despite the fiscal stimulus that offsets some of the impacts of higher US

tariffs, China's economy will slow down due to the combined influence of needed financial regulatory tightening

and trade tensions with the US.

Tamil Nadu to set up Rs 250 cr fund to assist start-ups

The Tamil Nadu government will set up a start-up fund with a corpus of Rs 250 crore for investments in start-up

businesses, as per the new Tamil Nadu Startup and Innovation policy 2018-2023 unveiled by Chief Minister K.

Palaniswami on Saturday.

According to the policy, the first tranche of Rs 25 crore will be allotted in the financial year 2019-2020.

Called Tamil Nadu Startup Fund of Funds, it will be managed by a professional financial agency like the Small

Industries Development Bank of India.

In addition, a Tamil Nadu Startup Seed Grant Fund (TNSSGF) of Rs 50 crore with an allotment of Rs five crore in the

first year shall be created in partnership with financial institutions and universities for supporting early stage

financing requirements of the start-ups in the form of grants to fill the gap in fund requirement for research and

innovations.

CBDT rejects reports regarding en masse issue of prosecution notices to small companies for TDS default

The Central Board of Direct Taxes (CBDT) has clarified that certain news items regarding en masse issue of

prosecution notices to small companies for TDS default are completely misleading and full of factual inaccuracies.

The CBDT said that Mumbai Income Tax TDS office has issued prosecution show cause notices only in a limited

number of big cases where more than five lakh rupees of tax was collected as TDS from employees but not

deposited with the Income Tax Department in time.

India likely to surpass UK in world's largest economy rankings: PwC

India is likely to surpass the United Kingdom in the world's largest economy rankings in 2019, as per a report by

global consultancy firm PwC.

As per PwC's Global Economy Watch report, while the UK and France have regularly switched places owing to

similar levels of development and equal populations, India's climb up the rankings is likely to be permanent.

The PwC report has projected real GDP growth of 1.6 per cent for the UK, 1.7 per cent for France and 7.6 per cent

for India in 2019.

Yes Bank partners with Maharashtra government for electronic PDS







Private sector lender Yes Bank has partnered with Government of Maharashtra to onboard PDS shops which are

popularly referred to as ration shops onto the electronic PDS initiative through which they can become agents of

the bank.

Under the partnership, Yes Bank will empower more than 20,000 ration shops which can offer last mile basic

banking services to more than seven lakh beneficiaries. The bank will cover almost 40% of all the PDS shops across

locations like Palghar, thane, Kolhapur, Latur, Pune and others.

IBBI organises Insolvency and Bankruptcy Awareness Programme at Vadodara

The Insolvency and Bankruptcy Board of India, in association with the three Insolvency Professional Agencies

-- the Indian Institute of Insolvency Professionals of ICAI (lead partner), the ICSI Institute of Insolvency

Professionals, and the Insolvency Professional Agency of Institute of Cost Accountants of India -- organised an

Insolvency and Bankruptcy Awareness Programme at Vadodara in Gujarat recently.

A large number of stakeholders, including students, professionals, bankers, and business persons participated in the

programme.

India signs 11 MoUs worth $9.5 million with Afghanistan

India has signed 11Mo-Us worth $ 9.5 million with the Afghan government this week.

The MoUs were for infrastructure, public services such as health clinics and governance-related projects.

These projects are part of the 577 development projects funded by India for 2005-2021 worth $120 million.

4th Edition of 'India Steel 2019' Expo to be Held on January 22-24 in Mumbai

The 4th edition of 'India Steel 2019 - Exhibition & Conference' is being organised by the Ministry of Steel,

Government of India along with the Federation of Indian Chambers of Commerce and Industry (FICCI) in Mumbai

on January 22- 24, 2019.

The annual steel exhibition and conference aims at developing a road map for the growth of the industry.

With the theme 'Balancing Steel Demand & Supply Dynamics: Building a New India', the event will highlight the

current trends, developments, challenges and prospects of the steel industry.

Nitin Gadkari inaugurates 39 National Highways Projects in Andhra Pradesh

Union Minister for Road Transport & Highways, Shipping, Water Resources, River Development and Ganga

Rejuvenation, Nitin Gadkari inaugurated and laid the foundation stone of 39 National Highways Projects in

Andhra Pradesh.

These include construction of eleven ROBs under Setu Bhartam programme.

These projects have a length of 1384 kms, and involve investment of Rs 16,878 crore.

Raghubar Das tables Jharkhand Budget 2019-20 worth Rs 85,429 crore

Jharkhand Chief Minister, Raghubar Das who also holds the finance portfolio, on January 22, 2019 tabled the

annual budget for the state for the year 2019-20 worth Rs 85,429 crore.

Out of the Rs 85,429 crore, the state government has set aside Rs 65,803 crore while the institutional expenditure

has been pegged at Rs 19,626 crore.

Cabinet approves setting up of a centralised GST Appellate Authority

The Union Cabinet on Wednesday approved setting up of a centralised Appellate Authority for Advance Ruling

(AAAR) under the goods and services tax that would decide on cases where there are divergent orders at the state

level.

The setting up of a centralised AAAR would require amendments to the GST Acts.

India to surpass China to become 2nd largest oil demand centre in 2019







India will surpass China to become the second largest oil demand growth centre globally in 2019 on back of

buoyant auto fuel and LPG consumption, as per a report by research and consultancy group Wood Mackenzie that

released on January 22, 2019.

In the report, Wood Mackenzie said that India's oil demand growth recovered strongly in 2018, overcoming the

aftermath of the implementation of Goods and Services Tax (GST) and demonetisation and contributed 14 per cent

of the global demand growth or 2,45,000 barrels per day.

Indian Oil signs Rs 16,641 cr MoU with Tamil Nadu at Global Investors Meet

Indian Oil Corporation, is planning to invest as much as Rs 16,641 crore in Tamil Nadu. The PSU company signed a

memorandum of understanding to this effect on Wednesday, with the state government at the Global Investors

Meet in Chennai.

R Sitharthan, Executive Director (I/c) and State Head for Indian Oil (Tamil Nadu & Puducherry) signed an MoU with

Tamil Nadu for an investment of Rs 7,941 crore over the next five years.

Indian economy may grow 7.6% in FY20: UN report

India's economy is expected to grow at 7.4 per cent during 2018-19 and improve to 7.6 per cent in the next fiscal,

said a UN report Wednesday.

The United Nations' World Economic Situation and Prospects (WESP) 2019 report also expects India's gross

domestic product (GDP) to expand by 7.4 per cent in 2020-21.

SBI Card and Etihad Guest tie-up to launch premium card for international travel

SBI Card and Etihad Guest, the loyalty programme of Etihad Airways, have joined hands to launch a travel specific

Visa credit card for members and Indian travellers.

This is the first international co-brand partnership of SBI Card, the country's second largest credit card issuer.

Royal Enfield signs MoU with Tamil Nadu Govt

Royal Enfield, the global leader in the mid-sized motorcycle segment signed a Memorandum of Understanding

with the Government of Tamil Nadu.

The government will extend fiscal and monetary incentives, subject to fulfilment of the conditions of the MoU.

The MoU envisages aggregate investment of Rs 1,500 crore in Tamil Nadu over a period of 5 years beginning May

2016, according to an official statement here.

Gadkari lays foundation stones for two highway projects worth Rs 1,600 cr in Maharashtra

Union minister Nitin Gadkari today laid the foundation stones for two highway projects worth 1,600 crore

rupees in Mumbai metropolitan region of Maharashtra.

The projects include eight-laning the Vadape-Thane bypass and four-laning of the road connecting Shahapur,

Murbad, Karjat and Khopoli.

SBM Bank (India) Ltd becomes first foreign bank to set up wholly owned subsidiary in India

SBM Group, a diversified financial services provider and the second largest listed banking institution on the Stock

Exchange of Mauritius, announced the launch of SBM Bank (India) Limited which will operate as a full- fledged

universal bank.

SBM Bank (India) Limited becomes the first foreign bank in India to obtain a banking licence from the Reserve

Bank of India to operate as a Wholly Owned Subsidiary (WOS), a release said.

SC issues contempt notices to RBI for denying info under RTI on loan defaulters

The Supreme Court on Friday issued contempt notices to the RBI for failing to reveal under the Right to

Information Act intelligence received on loan defaulters and details of action taken against banks in connection







with fraud.

In December 2015, a bench of the top court — comprising Justices MY Eqbal and C Nagappan — had asked

banking sector regulator RBI to reveal such information in the interest of shoring up public confidence in the

banking system and as a deterrent to bank frauds, instead of claiming that it held such information in a “fiduciary

capacity” and revealing it would ruin the economy.

Sarvatra Technologies accredited as Best Banking Technology provider

Sarvatra Technologies, India's leading end-to-end payments and banking solutions provider, has been awarded the

'Best Banking Tech' of the year for its world-class Electronic Funds Transfer (EFT) switch platform that played a

critical role in the effective nationwide participation in National Financial Switch (NFS) network.

Sarvatra Technologies was presented the prestigious award in a grand ceremony at 9th India Digital Awards 2019

organised by Internet and Mobile Association of India (IAMAI).

Supreme Court upholds constitutional validity of Insolvency and Bankruptcy Code

The Supreme Court on January 25, 2019 upheld the constitutional validity of the Insolvency and Bankruptcy Code

(IBC).

A Bench headed by Justice R.F. Nariman upheld the constitutional validity of the code “in its entirety”. However,

the apex court said that related parties in the Act should mean a person connected with the business.

The Bench disposed of a batch of pleas filed by companies challenging various provisions of the IBC.

Consortium of 11 Indian Banks Get Together to Launch India’s 1st Blockchain-linked Funding for SME

A consortium of India’s eleven largest banks to launch the country’s first blockchain-linked funding for small and

medium enterprises (SME).

The 11 big lenders participating in the initiative include ICICI, AXIS, HDFC, Kotak Mahindra, YES Bank, Standard

Chartered, RBL, South Indian Bank, IndusInd Bank, State Bank of India and Bank of Baroda. The meetings among

the participating bank are being organized by a consortium called the Blockchain Infrastructure Company (BIC).

Government empowers PSU banks to seek lookout circulars against wilful defaulters

In a bid to prevent big economic offenders like Vijay Mallya and Nirav Modi from fleeing the country, the government

has empowered PSU banks to request lookout circulars (LOCs) against wilful defaulters and fraudsters, officials said

on Sunday.

The Home Ministry has also authorised the Serious Fraud Investigation Office (SFIO), a statutory corporate fraud

investigation agency, to request LOCs if it feels the suspect may escape from India.

FDI grew 18% in FY18 to Rs 28.25 lakh crore: RBI data

Foreign direct investment (FDI) during the previous fiscal grew 18 per cent to Rs 28.25 lakh crore, data from the

Reserve Bank of India (RBI) showed Monday.

FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600

crore in March 2018 at market value, according to RBI data on 'Census on Foreign Liabilities and Assets of Indian

Direct Investment Companies, 2017-18'.

Overseas direct investment (ODI) by Indian companies increased by 5 per cent to Rs 5.28 lakh crore.

French Development Agency, DEA sign credit facility framework agreement for Pune Metro

The Department of Economic Affairs and the French Development Agency on Monday signed a credit facility

framework agreement for extending bilateral funding to the tune of Euro 245 million towards the Pune Metro

Project.

Maharashtra Metro Rail Corporation Limited (MAHA-METRO), a 50:50 joint venture between the Indian







government and the Maharashtra government, is currently executing the Pune Metro Project.

The estimated project cost is Rs 11,420 crore, of which the loan component is Rs 5,831.5 crore.

NSDC inks pact with Renault-Nissan Alliance to upskill workforce

Renault-Nissan Alliance India has signed an agreement with the National Skill Development Corporation (NSDC)

to train its workforce in the Alliance plant in Chennai for future technologies.

According to the statement, Renault-Nissan Alliance will customise an engagement and skilling action plan along

with NSDC's network for programme design, development and employment sustainability from the demand side.

Assam government launches credit-linked subsidy scheme for farmers

The BJP-led Assam government on Monday launched a credit-linked subsidy scheme for farmers.

The state cabinet recently approved the Assam Farmers’ Credit Subsidy Scheme (AFCSS), 2018, under which the

government will reimburse 25% of the loans taken or repaid by farmers this financial year, with a limit of Rs 25,000.

This scheme will cover 4 lakh farmers and involve a financial outgo of Rs 500 crore.

Doha Bank signs MoU with Stock Holding Corporation of India

Doha Bank has entered into a Memorandum of Understanding (MoU) with Stock Holding Corporation of India Ltd

(StockHolding), India’s premier custodian and depository participant, to facilitate its global customer base to

invest in India.

Under this tie-up, Doha Bank will offer all banking related services while StockHolding will offer compliance,

clearing, settlement and reporting services for all investment activities of customers.

India, China sign protocol for exports of Indian tobacco leaves to China

India and China have signed the protocol for exports of Indian tobacco leaves to China. Quality tobacco on par

with international standards is available in India at competitive prices and there is a good potential for export of

Indian tobacco to China.

According to an official release, the protocol was signed during the recent visit of Commerce Secretary, Dr. Anup

Wadhawan to Beijing

India replaces Japan to be world’s second largest steel producer

India has replaced Japan as the world's second-largest steel producing country, only behind China, which is the

largest producer of crude steel accounting for more than 51 per cent of production, as per the latest report by World

Steel Association.

The report noted that India's crude steel production in 2018 was at 106.5 MT, which is up by 4.9 per cent from 101.5 MT

in 2017.

The rise in India’s crude steel production in 2018 means that India has replaced Japan as the world's second- largest

steel producing country, as Japan produced 104.3 MT in 2018, which is down by 0.3 per cent as compared to 2017.

Induslnd Bank launches co-brandcd credit card with PAYBACK

IndusInd Bank has announced the launch of 'IndusInd Bank PAYBACK Credit Card', a co-branded credit card in

partnership with PAYBACK - the country's largest multi-brand loyalty program.

With the IndusInd Bank PAYBACK Credit Card, the customer will not only earn PAYBACK Points on all transactions

on the co-branded credit card , but will also get additional PAYBACK Points on transactions made at over hundred

PAYBACK partner brands - both in-store and online.

High Level Committee approves Central assistance of Rs 7,214.03 crore to States affected by natural disasters

The High Level Committee, chaired by the Union Home Minister Rajnath Singh, approved the additional Central

assistance from National Disaster Response Fund (NDRF) of Rs 7214.03 crore to 6 States and one Union Territory.







The funds alloted to these states are - Rs 317.44 crore to Himachal Pradesh, Rs 191.73 crore to Uttar Pradesh, Rs.

900.40 crore to Andhra Pradesh, Rs. 127.60 crore to Gujarat, Rs. 949.49 crore to Karnataka, Rs. 4,714.28 crore to

Maharashtra and Rs. 13.09 crore to UT of Puducherry.

Union Steel Ministry announces to set up Safety Directorate

The Union Ministry of Steel on January 28, 2019 announced to set up the 'Safety Directorate'.

The decision, regarding the same, was taken during the Consultative Committee Meeting of the Ministry in Goa.

The meeting was chaired by Union Minister of Steel, Chaudhary Birender Singh.

SEBI proposes relaxed norms for REITs, InvITs to increase access to investors

The Securities and Exchange Board of India (SEBI) on January 30, 2019 proposed a new set of relaxed norms for

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to increase access to investors.

The REITs and InvITs markets have evolved considerably in the global scenario and these investment vehicles have

gained enormously in terms of their market capitalisation. However, the market for REITs and InvITs are still at a

budding stage in India.

SEBI notified the REITs Regulations in 2014, allowing setting up and listing of such trusts which are very popular in

some advanced markets.

However, till date, only three InvITs have issued and listed their units, raising about Rs 10000 crore. On the other

hand, only one REIT is in the process of making a public offer. Despite various relaxations given by SEBI earlier,

these investment vehicles have failed to attract investors.

Asian Infrastructure Investment Bank to provide local currency financing in India, Pakistan

China-based Asian Infrastructure Investment Bank (AIIB), in which India is the second largest shareholder, plans

to launch local currency financing in India and some other Asian nations later this year to reduce cross- border

investment risks caused by exchange-rate fluctuations.

The first group of countries to have this new service could include India, Indonesia and Pakistan, AIIB President

Jin Liqun was quoted as saying by state-run China Daily.

Finance commission forms committee to settle Rs 31,000 crore Punjab food account

The 15th Finance Commission Wednesday announced the formation of a committee headed by finance commission

member Ramesh Chand to find ways to settle the food account of Rs 31,000 crore, which the Congress government

inherited from previous SAD-BJP regime.

Punjab has been consistently seeking the resolution of food account of Rs 31,000 crore from the Centre. The food

account, which the erstwhile SAD-BJP government had taken over in 2017, just before assembly election results, arose

because of the mismatch between cash credit availed for procuring wheat and paddy and the foodgrain stocks in the

account books of the state procurement agencies since 2004.

GST on Haj reduced from 18% to 5%

The Union Minister for Minority Affairs Mukhtar Abbas Naqvi announced on January 28, 2019 that the GST on

Haj has been reduced from 18 per cent to 5 per cent.

The move will significantly lower the airfare thus saving Haj pilgrims’ Rs 113 crore this year. The Minority Affairs

Minister was speaking at the inauguration ceremony of a new conference hall and passport section at the Haj

House in Mumbai.







February 2019 – Banking, Finance & Economy Current Affairs

RBI removes Bank of India, Bank of Maharshtra, OBC from PCA regime

The Reserve Bank of India (RBI) on Thursday removed three public sector banks from the prompt corrective

action (PCA) framework, allowing them to carry on normal business, especially lending. The three banks are

Bank of India (BoI), Bank of Maharashtra (Mahabank), and Oriental Bank of Commerce (OBC).

The central bank took this decision after reviewing the performance of these banks in the October-December

(Q3) 2018-19 (FY19) quarter. The banks will, however, have to meet some norms that will ensure close

monitoring.

GDP growth rate for FY18 revised upward to 7.2% from 6.7% earlier

The government on Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from

the 6.7 per cent estimated earlier.

According to the revised gross domestic product (GDP) data, released by the Central Statistics Office (CSO),

the demonetisation year, 2016-17, saw a growth rate of 8.2 per cent, the highest in the five years of the

Modi government. Earlier, the growth rate was estimated at 7.1 per cent.

HDFC Bank joins hands with IIM-A to launch regional digital summit

The HDFC Bank on Thursday joined hands with the Indian Institute of Management, Ahmedabad (IIM-A) to

launch its first regional DIS Summit, a platform for start-ups to showcase their innovations to power the

bank's growth.

The Centre for Innovation, Incubation and Entrepreneurship (CIIE) at IIM-A will help the bank identify potential

fin-tech ideas in its incubation and entrepreneurship cell in its initial phase. Another partner in the summit is

91springboard, a platform for stakeholders like start-ups, corporates and the government to have successful

ventures.

DAC approves indigenous construction of 6 submarines worth Rs 40000 cr

The Defence Acquisitions Council, DAC chaired by Defence Minister Nirmala Sitharaman approved

indigenous construction of six submarines worth 40 thousand crore rupees.

It is the second project under the Ministry's ambitious strategic partnership model aiming to boost the

government's Make in India' program.

The first project to get the government's nod for implementation under the new model was the acquisition

of 111 utility helicopters for the Navy at a cost of over 21 thousand crore rupees in August last year.

4,78,670 houses sanctioned under Pradhan Mantri Awas Yojana (Urban)

The Ministry of Housing & Urban Affairs approved the construction of another 4,78,670 more affordable

houses for the benefit of urban poor under Pradhan Mantri Awas Yojana (Urban).

The approval was given in the 42nd meeting of the Central Sanctioning and Monitoring Committee.

The cumulative number of houses sanctioned under PMAY (U) now is 72,65,763.

Andhra Pradesh has been sanctioned 1,05,956 houses while the sanction for West Bengal is 1,02,895 houses.

The number of houses sanctioned for Uttar Pradesh is 91,689, while Tamil Nadu has been sanctioned 68,110.

Mphasis and NASSCOM collaborate to recognise Artificial Intelligence (AI) start ups

IT major Mphasis on Thursday today partnered with NASSCOM to felicitate best in class AI start-ups at the

upcoming NASSCOM Technology and Leadership Forum 2019.







In an effort to drive the adoption of futuristic technologies including Deep Learning, Machine Learning,

Artificial Intelligence (AI) and Analytics, the partnership will recognize, nurture and promote bright young

startups to scale the current AI ecosystem in India.

Interim Budget 2019: the highlights

Union Finance Minister Piyush Goyal presented an Interim Budget for 2019 in Parliament on Friday.

An Interim Budget usually doesn't list out new schemes or doesn't unveil any policy measures. The

government will present the vote on account for the next four-to-five months.

A full-fledged Budget will be presented after the House reassembles after the general election.

Here are the highlights from Mr. Goyal's budget speech:

No income tax for earnings up to ₹5 lakh

Individuals with gross income of up to ₹6.5 lakh need not pay any tax if they make investments in provident

funds and prescribed equities

Standard tax deduction for salaried persons raised from ₹40,000 to ₹50,000

TDS threshold on interest on bank and post office deposits raised from ₹10,000 to ₹40,000

TDS threshold on rental income increased from ₹1.8 lakh to ₹2.4 lakh

ESI cover limit increased to ₹ 21,000. Minimum pension also increased to ₹ 1000.

Mega pension scheme for workers in the organised sector with an income of less than ₹15,000. They will be

able to earn ₹ 3000 after the age of 60. The scheme will be called Pradhan Mantri Shramyogi Maan Dhan

Yojana.

Ahmedabad Municipal Corporation signs MOU with World Bank Group's IFC

The Ahmedabad Municipal Corporation and the International Finance Corporation of the World Bank Group

have signed a memorandum of understanding(MoU) for climate change and conservation of the

environment. The Rs 7000 crore MOU was signed on Tuesday.

According to the MOU which was signed, the International Finance corporation will help the AMC to work out

strategy for meeting the challenge of climate change and its management. The IFC will even give its directions

on how to use the funds. The MOU will be operational for five years till 2024.

The IFC will also give its technical support to the AMC for implementing the projects for climate change and

conservation of environment.

Yes Bank senior group president Pralay Mondal resigns

Yes Bank senior group president and head - retail and business banking Pralay Mondal has tendered his

resignation.

On January 31, Rana Kapoor's reign as the Managing Director and Chief Executive of Yes Bank, which was co-

founded by him.

2 RRBs amalgamated, named 'Tamil Nadu Grama Bank'

Three Regional Rural Banks (RRBs) sponsored by the public sector Indian Bank were amalgamated and

renamed as 'Tamil Nadu Grama Bank', with its Head Office in Salem.

The amalgamation will be effective from April one, a release from the Indian Bank said here on Saturday.

The amalgamated RRB namely “Tamil Nadu Grama Bank” will be under the sponsorship of Indian Bank, with

Head Office at Salem.

Odisha Govt signed MoU with KEC, Iran for mutual cooperation







On the 4th day of MSME International Trade Fair-2019, the session on “Promoting Women

Entrepreneurship” received an overwhelming participation from more than 300 women entrepreneurs,

exporters and startups.

On this occasion, an MoU between Odisha Assembly of Small & Medium Enterprises (OASME) and Khazar

Electric Company (KEC) from Iran was also signed for mutual cooperation for transfer of technology and

production of equipments for agriculture, food processing, agriculture and waste management in presence of

ACS, MSME.

FDI Policy on E-Commerce released

To ensure due compliance of the FDI policy on e-Commerce, Press Note 2 (2018) was issued.

As per the policy, an entity having equity participation by e-commerce marketplace entity or its group

companies, or having control on its inventory by e-commerce marketplace entity will not be permitted to sell

its products on the platform run by such marketplace entity.

e-Commerce marketplace entity will not mandate any seller to sell any product exclusively on its platform

only.

This Press Note is effective from February 1, 2019.

The FDI policy on e-Commerce permitted 100 percent FDI in B2B e-commerce activities.

SBI to roll out YONO Krishi and Global apps in April

After receiving overwhelming response to its YONO (You Only Need One) app, the country’s largest lender,

State Bank of India, now plans to launch YONO Krishi and YONO Global apps in April, according to its

chairman Rajnish Kumar.

YONO Krishi, which will have all the retail facilities, will also cater to the specific needs of farmers and create

an ecosystem for them.

The YONO Global will cater to NRI citizens and people on the move, Kumar said.

Govt to launch campaign to saturate farmers for financial inclusion under KCC

Government today decided to launch a campaign to saturate farmers for financial inclusion under Kisan

Credit Cards (KCC). Agriculture Ministry in a statement said, the campaign will be launched through the

Financial Institutions in collaboration with the State Governments.

The Department of Financial Services has already issued directives to the Financial Institutions in this regard.

The Ministry said, there are around seven crore active KCCs and issuing of KCCs in large numbers have helped

increasing the agriculture credit.

Empowering Women Entrepreneurship through MSME Schemes

Ministry of Micro, Small and Medium Enterprises (MSME) is empowering women entrepreneurs through its

different schemes.

1.38 lakh projects have been set up by the women entrepreneurs under Prime Minister’s Employment

Generation Programme (PMEGP) Scheme since inception.

PMEGP, a major credit-linked subsidy scheme since 2008-09, helps set up micro enterprises and generate

employment in rural and urban areas of the country.

MG Motor India Signs Mou With State Bank of India for Electronic Dealer Finance Scheme

MG Motor India has signed a MoU (Memorandum of Understanding) with the country’s largest public sector

lender State Bank of India, for the latter’s Electronic Dealer Finance Scheme (e-DFS).

The strategic tie-up will provide access to wholesale inventory finance to MG partner dealers through SBI’s







electronic lending product.

Yes Bank signs MoU with MG Motor in India

Yes Bank, India’s fourth largest private sector Bank, signed a Memorandum of Understanding (MoU) with MG

Motor India, a British automotive company headquartered in Birmingham, United Kingdom, to enter into a

strategic financing partnership.

ICICI Bank launches FD Xtra, a range of innovative term deposits

ICICI Bank announced today that it has launched a range of fixed deposits (FDs) and recurring deposits (RDs) called FD Xtra.

According to the bank's press release, the new term deposits have been designed to meet life-stage needs

and goals of customers including term-insurance, saving for down-payment of home and car, retirement

planning, child education and fulfilling travel aspirations among others.

India signs MoU with Russia to fast-track North-South corridor

India, eyeing a bigger role in Eurasia and Afghanistan amid prevailing geopolitics, has signed a memorandum

of understanding with Russia for fast-tracking International North South Transport Corridor (INSTC) that will

enable a smoother connectivity to the region via Iran.

Russian Railways Logistics Joint Stock Company (RZD) and Container Corporation of India (CONCOR), the

largest rail container transport operator in India, last week signed the MoU for providing logistics services

on INTSC, the implementation of which has been delayed for years despite a dry run on the corridor in recent

years.

Oppo signs MoU with Telangana to help startups grow

Chinese smartphone player Oppo on Tuesday signed a Memorandum of Understanding (MoU) with the

Telangana government to support and develop the startup ecosystem in the state.

As part of the agreement, Oppo would provide technical expertise and mentoring support to startups helping

the government create a supportive startup ecosystem for working in camera and image processing, battery,

networks (5G), system performance, payments, Artificial Intelligence (AI) and gaming, the company said in a

statement.

RBI cuts repo rate in its maiden policy review under Shaktikanta Das

In a major policy shift, the six-member monetary policy committee (MPC) headed by Governor Shaktikanta

Das on Thursday lower the repo rate by 25 basis points to 6.25 per cent in 4-2 vote. RBI has thus cut rate for

the first time in 17 months. The last rate cut happened in August, 2017.

The MPC also changed the policy stance to ‘neutral’ from ‘calibrated tightening’. This was first money policy

review for former economic affairs secretary Shaktikanta Das, who took over as RBI Governor in the second

week of December, 2018.

RBI MONEY POLICY HIGHLIGHTS

RBI Governor Das voted in favour of rate cut

MPC unanimously voted to change stance to neutral

FY20 GDP seen at 7.4 per cent

CPI seen at 2.4% in Jan-March 2019 and 3.2-3.4% in April-Sept

RBI to withdraw rule on FPI exposure to single corporate entity

To raise limit for collateral free farm loan to Rs 1.6 lakh

FY20 Budget proposals likely to boost aggregate demand







Risk weight on bank exposure to NBFCs linked to ratings

Kerala becomes first state to set up Price Monitoring and Research Unit

Kerala became the first State to set up a Price Monitoring and Research Unit (PMRU) to track violation of

prices of essential drugs and medical devices under the Drugs Price Control Order (DPCO).

The move comes more than five years after the National Pharmaceutical Pricing Authority (NPPA) proposed

such a system for the States and the Union Territories.

Cabinet approves amendments to Banning of Unregulated Deposit Schemes Bill

The Cabinet has approved a proposal for Official Amendments to Banning of Unregulated Deposit Schemes

Bill, 2018.

Briefing media after the Cabinet meeting in New Delhi last night, Union Minister Ravi Shankar Prasad said, the

amendments will further strengthen the bill to effectively tackle illicit deposit-taking activities, and prevent

such schemes from duping the poor.

Government allows export of bio-fuels from special economic zones, EoUs

The government allowed export of bio-fuels from Special Economic Zones (SEZs) and export-oriented units (EoUs) with

certain conditions.

In August 2018, the government imposed restrictions on export of bio-fuels for non-fuel purposes.

Smriti Irani launches India Size project in Mumbai

Union Minister of Textiles Smriti Irani launched the India Size project in Mumbai yesterday.

A first-of-its-kind project in the history of the country, India Size aims to arrive at a standard Indian Size for

the ready-to-wear clothing industry, on the lines of the standardized sizes available in countries such as the

USA and the UK.

Cabinet approves introduction of National Institutes of Food Technology, Enterpreneurship and Management Bill,

2019

The Union Cabinet approved the introduction of National Institutes of Food Technology, Entrepreneurship

and Management Bill, 2019 in the Parliament.

The objective of the bill is to confer the status of Institutions to National Importance to National Institute of

Food Technology, Entrepreneurship and Management (NIFTEM) at Kundli, Haryana, and the Indian Institute

of Food Processing Technology (IIFPT) at Thanjavur, Tamil Nadu.

CCEA approves continuation for the Central Sector Scheme of Exploration of Coal and Lignite

The Cabinet Committee of Economic Affairs approved the proposal for continuation of the Scheme of

"Exploration of Coal and Lignite" with an expected expenditure of Rs.1875 Crore.

The approved scheme is for carrying out 24,41,500 meter of drilling and 3575 line km of surface geophysical

survey for promotional exploration and detailed drilling in Non CIL Block in Coal & Lignite along with Shale gas

studies and associated studies to provide coal resources in 3 years period.

CCEA approves proposal for setting up 12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects

The Cabinet Committee on Economic Affairs (CCEA) approved the proposal of Ministry of New & Renewable

Energy for implementation of the Central Public Sector Undertaking (CPSU) Scheme Phase-ll for setting up

12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects.

The project will be set up by the Government Producers with Viability Gap Funding (VGF) support of Rs. 8,580

crore in 4 years period (2019-20 to 2022-23), as per the terms and conditions specified in Government







Producer Scheme.

CCEA approves creation of Agri-Market infrastructure fund for development and upgradation of Gramin Agriculture

Markets

The Cabinet Committee of Economic Affairs approved creation of a corpus of Rs. 2000 crore for Agri-Market

Infrastructure Fund (AMIF) to be created with NABARD for development and up-gradation of agricultural

marketing infrastructure in Gramin Agricultural Markets and Regulated Wholesale Markets.

AMIF will provide subsidised loan to state and central governments for their proposal for developing marketing

infrastructure in 585 Agriculture Produce Market Committees (APMCs) and 10,000 Grameen Agricultural

Markets (GrAMs).

RBI fines Rs 1 crore on SBI for not monitoring use of funds to borrower

State Bank of India on Thursday said that the Reserve Bank of India has slapped Rs 1 crore penalty on the

country's largest lender for violating norms.

RBI "in exercise of powers conferred under Section 47 A of the Banking Regulation Act, 1949 has levied a

penalty of Rupees one crore on the bank for not monitoring the end use of funds in respect of one of its

borrowers," SBI said in a regulatory filing.

Insurance Regulatory and Development Authority imposes Rs 9 lakh fine on United India Insurance

Insurance Regulatory and Development Authority has imposed a fine of Rs nine lakh on state-owned United India Insurance

Co Ltd for violating certain procedures.

The insurance watchdog had issued a show-cause notice in August last year in connection with the on-site

inspection conducted by the IRDAI during October, 2015.

Avendus launches India's first ESG Fund

The Avendus India ESG Fund made its maiden investment on February 1, marking the first time a fund of

this kind has been launched in India.

ESG stands for environment, social and governance.

The fund will invest $1 billion and takes into account India's top 100 companies by market capitalisation.

Jet Airways signs MoU with SBI, seeks govt nod for open offer exemption

Jet Airways and its biggest lender SBI have finally inked a MoU, pursuant to which the airline has formally

applied to the Ministry of Civil Aviation for exemption from the takeover code and open offer, ET Now learns

from sources.

Sources say as per the MoU, SBI may convert its debt to equity which will be worth almost a 15% stake in Jet

Airways. If SBI infuses more funds into the airline, then its stake may rise to 30%.

Cabinet approves setting up of unified authority for regulating IFSCs in India

The Union Cabinet on February 6, 2019 approved establishment of a unified authority for regulating all

financial services in International Financial Services Centres (IFSCs) in India through the International

Financial Services Centres Authority Bill, 2019.

India’s first International Financial Services Centre (IFSC) became operational on April 11, 2015 at GIFT City in

Gandhinagar, Gujarat.

The International Financial Services Centre is the institution that caters to customers outside the jurisdiction

of the domestic economy. These centres deal with flows of finance, financial products and services across

borders.







Centre sanctions Rs173 cr for 58 NH projects in Himachal Pradesh

Centre has sanctioned 173 crore rupees for 58 national highway projects in Himachal Pradesh.

Chief Minister Jai Ram Thakur told Assembly that the issue of declaring 69 highways and one other road as

national highway has been taken up with the centre.

RBI raises collateral-free farm loan limit to Rs 1.6 lakh

RBI Governor Shaktikanta Das today announced that the limit of collateral free agricultural loans has been

increased from one lakh to 1.6 lakh. Addressing the post monetary policy announcement in Mumbai today,

Mr. Das said the decision has been taken in view of the overall inflation and rise in the agricultural input

costs since 2010 when the limit was last revised.

Mr. Das said this move will enhance coverage of small and marginal farmers in the formal credit system.

Earlier today, in his maiden bi-monthly policy review, the Monetary Policy Committee headed by Mr. Das

reduced the policy repo rate by 25 basis points from 6.5 percent to 6.25 percent and also changed the policy

stance from calibrated tightening to neutral.

The RBI Governor said he expects banks to transmit the rate cut benefit to customers and will have an

interaction with all the banks in this regard within the coming fortnight. On the liquidity front, Mr. Das said

that RBI is constantly and continuously monitoring the liquidity situation and based on the requirement, will

ensure that there is no liquidity scarcity.

Union Minister Suresh Prabhu launches two schemes in Mumbai

Union Minister for Commerce and Industry Suresh Prabhu launched two ambitious schemes, the Hirkani

Maharashtrachi and District Business Plan Competition in Mumbai today.

Addressing the gathering Mr Prabhu said that participation of women is very important for the successful implementation of

the schemes.

Five SHGs at district level will be selected and Rs. 2 lakh will be given to each SHG to take the idea forward.

US-India CEO Forum to be held on February 14; American members of Forum announced

US Commerce Secretary Wilbur Ross on February 7, 2019 announced the names of the American private

sector members of the US-India CEO Forum. MasterCard CEO Ajay Banga and Qualcomm CEO Steve

Mollenkopf are among the members of the US-India CEO Forum.

The first meeting of the US-India CEO Forum under the US President Donald Trump Administration will be

held in New Delhi on February 14, 2019.

The meeting will be co-chaired by US Commerce Secretary, Wilbur Ross and Union Minister of Commerce and

Industry and Civil Aviation, Suresh Prabhu.

Pradhan Mantri Kisan Samman Nidhi Yojana: Guidelines launched for States to implement scheme; PM-Kisan Portal

launched

The Union Ministry of Agriculture and Farmers’ Welfare on February 7, 2019 launched a platform named PM

Kisan, http://pmkisan.nic.in, under the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-KISAN) for

uploading the details of the Small and Marginal Farmers (SMF).

The Pradhan Mantri Kisan Samman Nidhi Yojana was announced in the Union Interim Budget 2019 by Finance

Minister Piyush Goyal.

The Union Minister of Agriculture and Farmers’ Welfare, Radha Mohan Singh on February 8, 2019 wrote to

the Chief Ministers of all States for their support in the effective and speedy implementation of the PM-KISAN




http://pmkisan.nic.in/




Yojana so that the entitled benefits are speedily transferred to the farmers.

Arunachal Pradesh CM Pema Khandu flags off Arunachal leg of Startup India Yatra

Arunachal Pradesh Chief Minister Pema Khandu flagged off the Arunachal leg of the Startup India Yatra from

civil secretariat in Itanagar.

The Startup Yatra van will travel across the state with two Boot camps and 4 van stops to provide a platform

to entrepreneurs at grassroots to pitch their ideas.

PM Narendra Modi inaugurates PETROTECH-2019

Prime Minister Narendra Modi on February 11, 2019 inaugurated the 13th International Oil and Gas

Conference - PETROTECH-2019 at India Expo Centre in Greater Noida, Uttar Pradesh. The Prime Minister also

addressed the inaugural session of the event.

Welcoming the delegates, Union Petroleum and Natural Gas Minister Dharmendra Pradhan said, India is the

third largest consumer of crude oil and petroleum products and the government has taken several measures

to provide energy for all.

Engineers India enters into MoU with Mongol Refinery, Mongolia

Engineers India Ltd (EIL) said that it has signed a Memorandum of Understanding (MOU) with Mongol

Refinery State Owned LLC of Government of Mongolia.

As per MOU, EIL shall provide Project Management Consultancy Services to Mongol Refinery for setting up

of an Oil Refinery in Mongolia for which terms and conditions are being discussed and will be mutually settled

in the form of a contract agreement, company said in a filing with BSE.

Dealer-Owned-Dealer-Operated model for setting up CNG stations by private players launched

The Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship, Dharmendra Pradhan

launched the ‘Dealer Owned Dealer Operated’ (DODO) model for setting up CNG stations.

Under the scheme, 87 Geographical areas serviced by 23 entities authorised will be covered.

More than 1500 CNG stations are presently operational in the country, catering to the demands of over 33

lakh CNG vehicles.

RBI penalises seven banks for violating various norms

Seven Banks were penalised by the Reserve Bank of India for violating various norms. Three banks- HDFC

Bank, Kotak Mahindra Bank and IDBI Bank - were fined Rs 2 million each for non-compliance with various

directions issued by RBI on Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards.

The central banks also penalised four other bank- Allahabad Bank, Andhra Bank, Indian Overseas Bank and

Bank of Maharashtra- for non-compliance with various directions issued by RBI on monitoring of end use of

funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring

of accounts. While Andhra Bank was fined Rs 10 million, the other banks were fined Rs 15 million each.

Kerala government launches online clearance mechanism for entrepreneurs

Kerala government launched an online mechanism that will ensure clearance to proposals within 30 days of

application.

The Kerala single window interface for fast, transparent clearances (K-SWIFT) was launched on Monday by

Kerala chief minister Pinarayi Vijayan at ASCEND Kerala 2019, an initiative of the government to position the

state as an investment hotspot.

Textiles Ministry to organise outreach programme for stakeholders

The Union Ministry of Textiles would be organising an outreach programme for textiles sector MSMEs on







February 13, 2019 in New Delhi to hold interactions with the stakeholders to help them avail the support

and outreach for 100 days programme announced by the Prime Minister.

Minister of Social Justice & Empowerment Thawar Chand Gehlot will be the Chief Guest of the event and

Minister of Textiles, Smriti Zubin Irani will preside over the function. An exhibition showcasing achievements

of the textiles sector MSMEs will also be held on the occasion.

Govt approves extension of CLCS-TUS scheme for MSMEs with 2,900cr outlay

The government Wednesday approved a three-year extension of the Credit Linked Capital Subsidy and

Technology Up-gradation Scheme for MSMEs with total outlay of 2,900 crore.

The scheme has been approved for continuation beyond the 12th five-year Plan for three years from 2017-

18 to 2019-20.

The scheme aims at improving the competitiveness of MSMEs by integrating various ongoing schematic

interventions aimed at up-grading technology through Credit Linked Capital Subsidy (CLCS).

The scheme will facilitate technology up-gradation , improvement in Quality of products by MSMEs,

enhancement in productivity, reduction in waste.

Cabinet approves increase in MSP for Raw Jute for 2019-20 season

The Cabinet Committee on Economic Affairs on Wednesday gave its approval for increase in the Minimum

Support Price (MSP) for Raw Jute, for 2019-20 season.

Briefing media persons after the Cabinet meeting, Railway Minister Piyush Goyal said the MSP for Fair

Average Quality (FAQ) of Raw Jute has been increased to Rs 3950 per quintal for 2019-20 season from Rs

3700 per quintal in 2018-19 season.

The MSP would yield returns of 55.81 per cent over the all India weighted average cost of production.

RBI Imposes Rs 5 Crore Penalty on Four PSU Banks, Including SBI

Four major banks – Bank of Baroda, Corporation bank, State Bank of India and Union Bank of India -- were

on Wednesday penalized to pay a fine of Rs 5 crore by the Reserve bank of India.

The central bank has asked the banks to pay the fine for violating the RBI directions of end use of funds,

exchange of information with other banks, classification and reporting of frauds, and on restructuring of

accounts.

The RBI has imposed the penalty in its order on January 31, this year.

RBI clears Yes Bank of divergence

The Reserve Bank of India (RBI) has cleared Yes Bank of any disparity in reporting bad loans, known as

divergence in market parlance, the private-sector lender said late evening Wednesday.

The banking regulator assesses compliance by banks with extant prudential norms on income recognition,

asset classification and provisioning (IRACP) as part of its supervisory processes.

YES Bank has received the Risk Assessment Report for FY18 as an outcome of the IRACP process.

Bihar Khadi Board signs MoU with Amazon India

The Bihar State Khadi and Village Industries Board signed a memorandum of understanding (MoU) with the

e-commerce giant Amazon to sell their products like saris, shirts and kurtas directly on Amazon India.

Addressing a press conference in the city, state industries minister Jai Kumar Singh pointed out that the MoU

would help create employment opportunities and promote the work of local artisans and weavers outside.

Cabinet approves leasing of land for 'Kisan Mandi'

The Union Cabinet on Wednesday approved the proposal for leasing out 1.61-acre land of the Delhi Milk







Scheme in Delhi's Alipur to Small Farmers Agribusiness Consortium (SFAC) to set up "Kisan Mandi" , said an

official.

The market will provide an additional marketing channel and platform to Farmer Producer Organisations

(FPOs) and Growers Associations (GA) for direct sale of fruits and vegetables to wholesale and retail buyers in

Delhi-NCR, said an official statement.

Cabinet approves continuation of Centre's tribal welfare schemes

Cabinet Committee on Economic Affairs (CCEA) has approved the continuation of sub-schemes under

Umbrella programme for the development of Scheduled Tribes from the period till March 2020.

Briefing reporters after the Cabinet meeting, Finance Minister Piyush Goyal said, over 10 crores Scheduled

Tribe people will benefit from it.

The total layout for the programme is 11,900 crore rupees.

The scheme will also promote efficiency in the delivery of service and enhance the reach of welfare schemes

of government in service deficient tribal areas in the sectors such as livelihood, health, education, through

efforts of Voluntary Organisations.

Cabinet approves proposal for Extension of tenure of NCSK beyond 31st of March,2019

The Union Cabinet has approved the proposal for Extension of tenure of the National Commission for Safai

Karmacharis (NCSK) beyond 31st of March,2019 for three years.

The Union Cabinet approved the signing of Memorandum of Understanding, MoU between India and Saudi

Arabia on cooperation and mutual assistance in Customs Matters.

Indo-US CEO Forum to be held in New Delhi on 14 February

The Indo-US Commercial Dialogue and the Indo-US CEO Forum will be held on February 14, 2019 in New

Delhi.

The Indian side will be headed by Commerce & Industry and Civil Aviation Minister, Suresh Prabhu, and the

US side will be led by Mr. Wilbur Ross, US Commerce Secretary.

The two Ministers will co-chair the India-US Commercial Dialogue.

PM Modi addresses CREDAI YouthCon -19

The Prime Minister Narendra Modi addressed the CREDAI YouthCon -19 on February 13, 2019 at Talkatora

Stadium, New Delhi.

The event was organised by the Confederation of Real Estate Developers' Association of India (CREDAI).

The Prime Minister also visited the exhibition organised by CREDAI.

YouthCon is the annual Youth Conclave of CREDAI which is held to bring together the future of the real estate

Industry in India.

Finance Ministry asks six public sector banks to improve on PCA parameters

The Finance Ministry has asked the six remaining public sector banks, currently under Prompt Corrective

Action (PCA), to improve on seven parameters to get the government's support for coming out of the PCA

framework.

Out of a total of 11 banks put under PCA last year, three have already moved out while another two will merge

with a stronger entity. This leaves six in the list of weak banks that also face restrictions on lending.

The banks under PCA are Allahabad Bank, United Bank of India, Corporation Bank, UCO Bank, Central Bank

of India and Indian Overseas Bank.

India-US CEO Forum and Commercial dialogue held; sets up Working Groups







India and the United States on February 14, 2019 held the India-US CEO Forum and India-US Commercial

Dialogue in New Delhi. The Union Minister for Commerce & Industry and Civil Aviation, Suresh Prabhu chaired

the meeting.

However, Wilbur Ross, the Secretary of Commerce of United States, could not attend the Dialogue and Forum

because of unforeseen flight cancellation. He participated in the most of the sessions remotely through

teleconference.

Anoop Satpathy-led Expert Committee submits report; recommends National Minimum Wage at Rs 375 per day

The Expert Committee led by Anoop Satpathy, Fellow of V. V. Giri National Labour Institute (VVGNLI), on

February 14, 2019 submitted its report on “Determining the Methodology for Fixation of the National

Minimum Wage” to the Government.

The Committee was constituted by the Union Ministry of Labour and Employment January 17, 2017 to review

and recommend methodology for fixation of National Minimum Wage (NMW) and determine the base level

National minimum wage/wages through an evidence-based approach.

The Report has been placed on the Ministry’s website for facilitating the process of consultation and dialogue

among social partners and stakeholders for necessary approval of methodology.

The report recommended a balanced diet approach which is culturally edible for fixation of national

minimum wage. It proposed a particular amount of food items per day per person to constitute a national

level balanced food basket: More or less than 10 percent of 2400 calories + proteins greater than or equal to

50 gm + fats greater than or equal to 30 gm per day per person

RBI warns of mobile data theft by ‘AnyDesk’ app

Amid rising instances of fraud using the Unified Payment Interface (UPI) platform, the Reserve Bank of India

has cautioned all banks and payment system operators about a new modus operandi allegedly used by

scammers to target customer phones.

In an alert dated February 14, the cyber security and IT examination cell of the central bank said that a mobile

application called ‘AnyDesk’ was allegedly being used by fraudsters to access data on mobile devices. Once

the app is installed on customer phones, it seeks permission to access controls of the phone, like all other

applications.

India and Singapore to sign pact for skilling Indians in aviation

India and Singapore will sign an agreement for skilling Indian youths in the aviation sector at the Aero India

Show next week. Academies will be set up in Bengaluru and other places in India that will act as regional hubs

for the training of Indian youths for domestic and overseas jobs in these sectors.

National Skill Development Corporation of India's (NSDC) Aerospace and Aviation Sector Skill Council in

collaboration with Singapore Polytechnic and a Singapore-based private sector firm will signing a

Memorandum of Understanding (MoU) on February 22 to establish skill development centers.

Aero India show 2019 will be held in Bengaluru from February 20-24.

PM Modi launches several development projects including Patna Metro Rail Project in Bihar

Prime Minister Narendra Modi inaugurated and laid the foundation stone of various infrastructure and

development projects worth 33,000 crore rupees at Barauni in Begusarai district of Bihar today. He laid the

foundation stone of Patna Metro Rail Project at a cost of over 13,000 crore rupees via video conferencing. The

project would be completed by 2024.

Mr Modi laid the foundation stone for the first phase of Jagdishpur Haldia and Bokaro Dhamra gas pipeline







project under the Prime Minister's package for Bihar. He also kick started work of several development

projects of civic works, Clean Ganga Mission and Railways also.

India raises customs duty to 200 pc on all goods imported from Pakistan

India has raised the basic customs duty to 200 per cent on all goods imported from Pakistan with immediate

effect following withdrawal the Most Favoured Nation, MFN status in the aftermath of the Pulwama terror

attack.

Finance Minister Arun Jaitley said this in a tweet. The main items which Pakistan exports to India include fresh

fruits, cement, petroleum products, bulk minerals and ores and finished leather.

India withdraws Most Favoured Nation status accorded to Pakistan

India on February 15, 2019 withdrew the ‘Most-Favoured Nation’ status accorded to Pakistan following the

Pulwama terror attack in Jammu and Kashmir that led to the killing of 37 CRPF personnel and injuring of

many others.

The most favoured nation (MFN) status was accorded in 1996 under WTO's General Agreement on Tariffs

and Trade (GATT).

IndianMoney.com unit gets licence for insurance biz

IndianMoneyInsurance.com, a subsidiary of the Bengaluru-based IndianMoney.com Group, has received the

Insurance Regulatory and Development Authority of India’s insurance broking licence to enter the insurance

business.

The company, which will go live in the next few days, plans to hire 2,000 employees by the end of 2019 and

set up insurance purchase centres across 500 taluk centres across India at an investment of ₹40 crore.

IBBI organises first-of-its-kind workshop for financial creditors in Mumbai

The Insolvency and Bankruptcy Board of India (IBBI), jointly with the State Bank of India and the Indian

Institute of Corporate Affairs (IICA), organised a two-day workshop on 'Committee of Creditors: An

Institution of Public Faith' in Mumbai.

The Workshop on February 15 and 16 was unique and the first-of-its-kind, organised for the benefit of

Financial Creditors, who comprise the Committee of Creditors(CoC), under the Insolvency and Bankruptcy

Code, 2016.

SBI launches Nayi Disha for employees to maintain work-life balance

The nations largest lender State Bank has begun a massive employee engagement programme to ensure its

2.6 lakh-strong staff does not work mechanically and is sufficiently motivated to take on newer challenges

that the future will throw up, a top official has said.

The programme christened Nayi Disha or the new path focuses on work-life balance and also involves the

staffs immediate family members, also giving them the ability to inform the bank if an employee is not able

to leave work on time.

RBI to transfer Rs 28,000 cr interim surplus to Centre

The Reserve Bank has announced that it will transfer an interim surplus of Rs 28,000 crore to the central

government for the half-year ended 31st December, 2018.

In a statement issued on Monday evening, the RBI said the decision has been based on a limited audit review

and after applying the extant economic capital framework.







This is the second successive year that the Reserve Bank will be transferring an interim surplus to the

government.

Indian Oil signs USD 1.5 billion deal to buy US crude oil

In the first-ever deal by an Indian company, Indian Oil Corporation (IOC) on Monday said it has signed an

annual deal worth USD 1.5 billion to import 3 million tonnes of crude oil in the fiscal year beginning April 1.

This is the first time any Indian refiner has signed an annual contract since the country in 2017 began

importing crude oil from the US.

Nitin Gadkari to inaugurate upgraded portal for maritime sector

Union Minister Nitin Gadkari will inaugurate on Tuesday an upgraded version of e-commerce portal Port

Community System (PCS) in Mumbai.

The upgraded portal 'PCS1x' has been developed in record time by the Indian Ports Association, based on

feedback from stakeholders using PCS.

The minister would launch "PCS1x" at the Regional Maritime Safety Conference in Mumbai on Tuesday, the

Ministry of Shipping said in a release on Monday.

LIC introduces new micro insurance plan "Micro Bachat"

Life Insurance Corporation (LIC) Monday launched a new microinsurance plan 'Micro Bachat'. It is a regular

premium, non-linked, participating endowment microinsurance plan, which offers a combination of

protection and savings, LIC said in a statement.

For the first time, a microinsurance plan has been launched providing coverage up to Rs 2 lakh, it said.

This plan provides financial support for the family in case of unfortunate death of the policyholder during the

policy term and a lump sum amount at the time of maturity for the surviving policyholders, it said.

Suresh Prabhu clears proposal to encourage investments in Start-Ups

Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu has cleared a proposal aiming at

simplifying the process of exemptions for Start-ups under Section 56 (2) (viib) of Income Tax Act.

The Department for Promotion of Industry and Internal Trade (DPIIT) will be issuing a gazette notification on

February 19, 2019 to this effect.

Similarly, an entity will continue to be recognised as a Start-ups, if its turnover for any of the financial years

since incorporation and registration has not exceeded Rs 100 crore in place of Rs 25 crore earlier.

Govt to infuse Rs 48,239 crore in 12 public sector banks

The government has approved recapitalisation of Rs 48,239 crore in 12 public sector banks in this fiscal to

help them maintain regulatory capital requirements and finance growth plans.

In a tweet, Financial Services Secretary Rajiv Kumar said the recapitalization will help these banks perform

better.

He said, the government will infuse over nine thousand crore rupees in Corporation Bank and six thousand

896 crore rupees in Allahabad Bank.

They are better-performing banks currently under the Prompt Corrective Action (PCA) supervision of the

RBI.

The government will also pump in 12,535 crore rupees in Central Bank of India, United Bank, UCO Bank and

Indian Overseas Bank.

Government clears proposal to encourage investments in Start-Ups; hikes tax exemption cap

Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu on February 19, 2019 cleared







proposals to encourage investments in Start-Ups, aiming at simplifying the process of exemptions for Start-

ups from the ‘Angel Tax’ under Section 56 (2) (viib) of Income Tax Act, 1961.

As per the new norms, registered startups will be exempted from tax on funding of up to Rs 25 crore

compared with the existing limit of Rs 10 crore.

The new norms aim to catalyse entrepreneurship by enabling angel investments by innovators across all

sections of society and all sectors of economy.

Commerce Minister launches ‘SWAYATT’ on GeM

Union Minister of Commerce & Industry and Civil Aviation, Suresh Prabhu launched SWAYATT initiative to

promote Start-ups, Women and Youth Advantage through eTransactions on Government e Marketplace

(GeM).

The SWAYATT would seek to promote inclusiveness by catapulting various categories of sellers and service

providers, take proactive steps to facilitate the training and registrations of such specific category of

manufacturers and sellers.

DPIIT launches second edition of States’ ranking on Startup initiatives

After the successful first edition of States’ Startup Ranking in 2018, the Department for Promotion of Industry

and Internal Trade (DPIIT) released second edition of Startup Ranking for 2019.

The Startup Ranking framework aims to rank the States/UTs for establishing a robust ecosystem for supporting

Startups.

The framework encourages States and UTs to identify, learn and replicate good practices from each other.

Cabinet approves Ahmedabad Metro Rail Project Phase II

The Union Cabinet approved the Ahmedabad Metro Rail Project Phase-II which comprises two corridors of

total length 28.254.

The Corridor 1 is from Motera Stadioum to Mahatma mandir, a length of 22.838 km and Corridor 2 is from

GNLU to GIFT City at a length of 5.416 km.

The project will be completed at a total cost of Rs. 5384.17 crores.

CCEA approves continuation of Khadi Gramodyog Vikas Yojana from 2017-18 to 2019-20

The Cabinet Committee on Economic Affairs approved to continue the existing schemes of MPDA, Khadi

Grant, ISEC and Village Industry Grant, all subsumed under 'Khadi and Gramodyog Vikas Yojana' at the total

cost of Rs. 2800 crore for the period 2017-18 to 2019-20.

It approved to bring in a new component of 'Rozciar Yukt Gaon' to introduce enterprise-based operation in

the Khadi sector and to create employment opportunities for thousands of new artisans.

Rozgar Yukta Gaon (RYG) aims at introducing an 'Enterprise-led Business Model' in place of 'Subsidy-led

model' through partnership among 3 stakeholders- KRDP-assisted Khadi Institution, Artisans and Business

Partner.

Cabinet approves Promulgation of Banning of Unregulated Deposit Schemes Ordinance, 2019

The Union Cabinet, chaired by Prime Minister Narendra Modi, on February 19, 2019 approved the

Promulgation of Unregulated Deposit Schemes Ordinance, 2019.

The proposed Ordinance will immediately tackle the menace of illicit deposit taking activities in the country

which at present are exploiting regulatory gaps and duping poor and gullible people of their hard-earned

savings.

Earlier, the Lok Sabha on February 13, 2019 passed the Banning of Unregulated Deposit Schemes Bill, 2018.







PM Modi’s visit to Korea: India Korea startup hub launched in Seoul

Prime Minister Narendra Modi launched the India-Korea Startup Hub in Seoul during his visit to South Korea

on February 21, 2019 while addressing the India-Korea Business Symposium.

As part of the global celebrations of the 150th birth anniversary of Mahatma Gandhi, Prime Minister unveiled

a bust of Mahatma Gandhi at the Seoul Campus of Yonsei University.

4TH India-Asean Expo Summit on 21 – 23 February 2019 in New Delhi

The 4th India-ASEAN Expo and Summit will be held on February 21-23, 2019 in New Delhi.

This is a flagship event of Department of Commerce, being organised with FICCI to carry forward the

momentum and to further strengthen India-ASEAN relations under the Act-East Policy.

The 4th India-ASEAN Expo and Summit will build upon the success of the previous edition of ASEAN-India

Business and Investment Meet and Expo which was held in 2018 as a precursor to India-ASEAN

Commemorative Summit.

India, Sri Lanka ink MoU to establish business centre for ICT incubators in Jaffna

India and Sri Lanka today signed a Memorandum of Understanding (MoU) to establish a business centre for

ICT incubators in Jaffna through grant of 25 crore Sri Lankan rupees from India.

The centre would provide opportunities and enhance the enabling environment for Information

Communication Technology (ICT) and other professional services in the Northern region inhabited by

minority Tamils.

Merger of Vijaya Bank and Dena Bank with BoB to be effective from April 1

Bank of Baroda on Wednesday said the merger of Dena Bank and Vijaya Bank with itself would be effective

from April 1 as per the scheme of amalgamation approved by the government.

Besides, the board of the bank fixed March 11, 2019, as record date for issuing and allotting equity shares of

the Bank of Baroda to the Shareholders of Vijaya Bank and Dena Bank.

This scheme may be called the Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda Scheme,

2019, BoB said citing the government notification.

NITI Aayog organises ‘Conference on Future of Indian Banking’

NITI Aayog organised the ‘Conference on Future of Indian Banking and role of technology’ on February 22,

2019.

The conference aims to increase and elevate the discourse on the banking sector in India, and help develop

insights to inform the continued evolution of the Indian banking sector.

The panel discussions were held with policy and banking industry experts.

EPF interest rate hiked to 8.65 percent

The Employees’ Provident Fund Organisation (EPFO), the retirement fund manager under the Union Labour

Ministry, raised the interest rate on Employees’ Provident Fund (EPF) accumulations to 8.65 percent for

2018-19.

This is a 10 basis point increase from the 8.55 percent EPF interest rate announced by the retirement fund

for 2017-18.

The Central Board of Trustees (CBT) ratified the amendment in EPF Scheme 1952, as approved in the 141st

meeting of Financial Investment and Audit Committee (FIAC) held on February 12, 2019, to enable accounting

of Investment in Exchange Traded Funds (ETFs) (Equity & Related Investment).

India, South Korea sign 6 pacts; to step-up cooperation in infrastructure, combating global crime







India and South Korea signed six agreements on Friday to enhance cooperation in key areas, including

infrastructure development, media, start-ups and combating trans-border and international crime, during

Prime Minister Narendra Modi's visit to the country.

List of MoUs/Documents signed between India and the Republic of Korea during the State Visit of Prime Minister

to the Republic of Korea

1. MoU on release of commemorative postal stamp on Queen Hur (Suriratna)

2. MOU on Extension of Korea Plus

3. MoU on Start-up Cooperation

4. MoU between Korean National Police Agency and MHA on Combating Transnational Crime And Developing

Police Cooperation

5. MoU between Korean Broadcasting System (KBS) and Prasar Bharti on Cooperation in Broadcasting

6. MoU between National Highways Authority of India and Korea Expressway Corporation

RBI stiffens rules, makes loans costlier for NBFCs to borrow

The Reserve Bank of India (RBI) on Friday intervened, and made it harder for the non banking financial

companies (NBFCs) to borrow from the commercial banks, hence making the credit flow slower, and more

costly, the Financial Express reported.

Now on, any loan to an NBFC which is due to pay to the banks Rs 200 or above, and has no ratings, will now

lure a risk weight of 150 per cent. Even NBFC which was rated previously but later un-rated, and owes Rs

100 or plus, will pull a risk weight of 150 per cent, reported the Financial Express.

Basically, the central bank stiffened risk-weight norms for loans to NBFCs, making them equal to other

companies.

The initiative comes on the middle of liquidity deficit in the money market. Lately, NBFCs and housing finance

companies (HFCs) are facing financing and liquidity issues among issues over asset-liability imbalances and

company administration and control failures at some of the organizations.

RBI to merge three categories of NBFCs to create new category

The Reserve Bank of India (RBI) on February 22 announced that it will merge three categories of Non Banking

Financial Companies (NBFCs) into a new one.

According to a release, NBFCs categorized as Asset Finance Companies (AFC), Loan Companies (LCs) and

Investment Companies (ICs), will be merged into a new category called NBFC - Investment and Credit

Company (NBFC-ICC).

PM-KISAN: PM Modi launches ‘Pradhan Mantri Kisan Samman Nidhi Yojana’ from Gorakhpur, UP

The Prime Minister Narendra Modi on February 24, 2019 launched the Pradhan Mantri Kisan Samman Nidhi

Yojana (PM-KISAN) from Gorakhpur, Uttar Pradesh.

On the launch day itself, the first instalment of Rs 2,000 was directly credited to the bank accounts of

selected beneficiary farmers. Around 12 crore farmers are expected to benefit from PM-KISAN.

The Pradhan Mantri Kisan Samman Nidhi Yojana was announced in the Union Interim Budget 2019 by Finance

Minister Piyush Goyal.

The First Installment of Rs 2,021 crore was directly transferred into the bank accounts of 1,010,6,880 eligible

farmers of 24 States and the Union Territories.

The Direct Benefit Transfer (DBT) under the Scheme PM-KISAN is being done through the System of Public

Finance Management System (PFMS), a web-based payment and MIS IT application of the Government







administered by the Controller General of Accounts (CGA).

RBI extends KYC compliance norms by six months

Reserve Bank of India Monday extended by six months the deadline for compliance with Know Your

Customer (KYC) norms, for prepaid payment instrument (PPI) issuers. The earlier deadline was February 28.

PPIs are instruments that facilitate purchase of goods and services, including financial services and

remittance facilities, against the value stored on such instruments.

E-wallet companies were caught in a bind over looming deadline as companies were apprehensive that they

will not be able to meet the central bank's deadline to complete KYC of all customers by February-end.

GST Council reduces GST Rate on Real Estate projects; approves 5% rate for under-construction houses

The Goods and Services Tax (GST) Council met on February 24, 2019 for its 33rd meeting and slashed GST

rate on under-construction residential properties and the affordable housing projects.

In case of non-affordable houses, the GST rate for under-construction flats and houses has been brought to

5 percent without Input Tax Credit (ITC), down from the present 12 percent.

In case of affordable houses, the GST rate has been reduced to 1 percent without ITC from 8 percent.

The revised rates will be applicable from April 1, 2019.

CBIC constitutes three Working Groups to study and recommend measures to facilitate trade, promote exports

The Central Board of Indirect Taxes and Customs (CBIC) constituted three Working Groups to study and

recommend measures to facilitate trade, promote exports and improve compliance.

The Working Groups will focus on improving the legislative structure of customs tariff and update it to suit the

emerging and future needs of the economy.

IWAI, Indian Oil sign MoU on fuel needs for national waterways

The Inland Waterways Authority of India (IWAI) and Indian Oil Corporation Limited (IOCL) signed a

Memorandum of Understanding on February 26, 2019 for jointly developing infrastructure for fuels,

lubricating oil, LPG, natural gas and any other related fuel and gas for meeting the requirement of national

waterways.

The agreement will provide for an understanding over general modalities of mutual cooperation leading to

addressing futuristic demand of any form of energy for Inland Waterways and associated services.

FAGMIL, Himachal Pradesh Government sign MoU to establish White cement Plant Project

The FCI Aravali Gypsum and Minerals India Limited (FAGMIL) signed MoU with the Himachal Pradesh

Government to establish a white cement plant near village Nohra Dhar in Sirmour district, Himachal Pradesh

at a project cost of approximately Rs. 605 crores.

It will be the 4th white cement plant in the country.

Nitin Gadkari lays foundation stone for Road Project in Phagwara

Union Minister for Road Transport & Highways, Shipping and Water Resources, River Development and Ganga

Rejuvenation, Nitin Gadkari laid the foundation stone for an elevated structure and vehicular underpass

(VUP) on NH-44 at Phagwara City in Kapurthala district of Punjab.

The length of this six lane project is 2.555 Kms, and approximate cost is Rs 165 crore.

This project will bring safety and convenience to local road users.

Allahabad, Corporation, Dhanlaxmi Bank out of PCA

The Reserve Bank of India (RBI) on Tuesday lifted lending curbs on two more public sector banks (PSBs),

namely Allahabad Bank and Corporation Bank, besides also freeing private lender Dhanlaxmi Bank from the







Prompt Corrective Action (PCA) Framework. Last month, Bank of India, Bank of Maharashtra and Oriental

Bank of Commerce were taken out of the PCA Framework.

In a statement, the central bank said that the Board for Financial Supervision (BFS) reviewed the

performance of banks under PCA and noted that the government has infused fresh capital on February 21

into various banks, including some of the banks currently under the PCA framework.

Of these banks, Allahabad Bank and Corporation Bank had received Rs 6,896 crore and Rs 9,086 crore,

respectively. Capital infusion has shored up their capital funds and also increased their loan loss provision to

ensure that the PCA parameters were complied with the regulator said.

With the removal of Allahabad Bank and Corporation Bank, six public sector undertaking (PSU) banks — IDBI

Bank, UCO Bank, Central Bank of India, Indian Overseas Bank, Dena Bank and United Bank of India are still

under the PCA framework.

Brigade Group signs MoU with Technopark to build WTC Thiruvananthapuram

Real estate developer Brigade Group on Wednesday announced signing of a memorandum of understanding

with Technopark, an autonomous organisation fully owned by the Kerala state government, for developing

an iconic World Trade Centre at Technocity in Thiruvananthapuram.

Multinational companies like Nissan and Tata Consultancy Services have already taken land at the 300 acre

Technocity IT campus.

Paytm Payments Bank Launches Zero Balance Current Account

Following a six month ban on starting new accounts by the Reserve Bank of India (RBI), Paytm Payments

Banks has launched a zero balance current account with features such as unlimited free digital transactions

and free debit card etc.

At the end of the day, account balances above INR 1 Lakh will be automatically transferred to a current

account in a partner bank. However, there is no cap on amount deposits and transactions frequency during

the day. Further, the unlimited cash deposits feature will also aid small merchants who receive large chunk of

their payments in cash.

DCB Bank launches Open Banking for next-generation banking solutions

DCB Bank announced the launch of its Open Banking Platform, a significant step towards creating a

collaborative ecosystem with enterprises, fintechs and app developers, and enhancing customer-service

delivery.

Over 20 startups, fintechs, merchants, enterprises and developers will partner with DCB Bank for access to

its Open Banking Platform APIs as well as collaboration on innovation and customer centric products.

ICICI Bank launches new super-premium credit card 'Emeralde'

Private Sector lender ICICI Bank announced the launch of a new addition to its 'Gemstone collection of credit

cards'.

Christened, 'ICICI Bank Emeralde Credit Card', the facility offers best-in-the industry rewards and benefits for

senior professionals and self-employed entrepreneurs who are always on the go.

Petroleum Minister gives Rs 34 cr of IOC for clean Ganga movement

Petroleum Minister Dhramendra Pradhan on February 27, 2019 gave Rs 34 crore of Indian Oil Corporation for

clean Ganga movement.

After receiving the grant, Union Minister Nitin Gadkari said that nearly 40 Ganga tributaries will be cleaned.

The Minister said, government has been able to get rid of paper and pulp industry wastage.







DAC approves acquisition of defence equipment worth Rs 2700 cr

The Defence Acquisition Council has approved the acquisition of defence equipment for about Rs 2700

crores.

The approval includes acquisition of three cadet training ships for the navy, which will provide basic sea

training to officer cadets including women officer under trainees.

March 2019 – Banking, Finance & Economy Current Affairs

Rs 7,951 crore fraud unfolds at State Bank of India during Apr-Dec

Multi-crore rupee fraud has unfolded at the State Bank of India (SBI) after the Mumbai-headquartered PSU

banking giant informed about the fraudulent cases occurred in the nine months from April to December

2018.

According to PTI report, State Bank of India, in a reply to RTI, has said that about 1,885 cases of cheating

have erupted in the first nine months of the financial year 2018-2019.

Bank of Baroda Set To Develop Digital Agri Platform „Baroda Kisan‟

Bank of Baroda has signed an MoU with agriculture services companies to develop an agriculture digital

platform, Baroda Kisan, which will provide solutions for agricultural requirements.

BoB has signed the agreement with Skymet Weather Services, Weather Risk Management Services,

BigHaat, Agrostar India, EM3 Agri Services, and Poorti Agri Services.

The platform intends to make a holistic approach towards solving agricultural plights by means of providing

reliable and customized information, inputs for use, the convenience of renting farm equipment, and market

linkage for sale of agriculture produce.

ADB to invest USD 50 mn in solar project developer Avaada

Asian Development Bank (ADB) has inked an agreement to invest USD 50 million in solar energy project

developer Avaada Energy Pvt Ltd to help the company scale up rapidly.

The investment will come equally from ADB's Ordinary Capital Resources and Leading Asia's Private

Infrastructure Fund (LEAP).

LEAP is a funding arrangement provided by Japan International Cooperation Agency (JICA) which is

administered by ADB.

HDFC Bank crosses Rs. 6 trillion market capital

India's most valued lender HDFC Bank Ltd crossed the Rs. 6 trillion market capitalisation for the first

time, making it only the country's third firm to achieve the milestone.

Tata Consultancy Services Ltd (TCS) and Reliance Industries Ltd (RIL) are the other two companies that

crossed the market capitalisation of Rs. 6 trillion. RIL remained the most-valued company with a market

value of Rs. 8.54 trillion, followed by TCS with a market value of Rs. 7.51 trillion.

Forex reserve swells by over $3.6 billion to $405.6 billion

India's foreign exchange reserves surged by a whopping $3.602 billion to $405.638 billion in the week to

March 15, driven by rise in foreign currency assets,

Forex reserves had increased by $258.8 million to $402.035 billion in the previous week.

RBI to reform WMA system for states







Reserve Bank of India has proposed a rule-based approach in fixing new Ways and Means limits for the

state governments, replacing the previous expenditure-based system.

It will set up a panel to recommend parameters of the new system which is aimed at preventing automatic

monetisation of deficits.

The central bank which acts as debt manager for state governments provides short-term loan to them to

bridge temporary liquidity mismatches. The temporary loan facility is called Ways and Means Advances.

Indian Bank – carrying “Your Own Bank‟ tag with utmost pride!

Indian Bank, with over 9400 touch points across the country, has crossed the milestone business level of Rs.

4.00 lakh crore.

The Bank has featured in the most trusted brands in the Public Sector Bank category and has been

acknowledged as India's Best Bank.

It has many 'Firsts' to its credit when it comes to merging banking and technology for better, safer and more

convenient solutions.The Bank was the first to migrate from Total Bank Computerization (TBC) to 100%

Core Banking Solutions (CBS). Installing the first ATM by any public sector bank in 1989, installing the

first drive-in ATM of the country during 1990, introducing the first ever voice-guided biometric ATM in 2007

to name a few.

The Bank launched an industry-first mobile app to block and manage limits of debit card and credit card, the

'IB Smart Remote'.Because of these factors, carrying the tag 'Your Own Bank', the Bank is looked upon with

pride in India.

On 9th March 2019, the Bank celebrated ‗International Women's Day„and felicitated twelve women

achievers. On that day, the Bank also launched ‗IB- Surabhi„, a Savings bank Account exclusively for

women.

HDFC Bank plans to acquire 9% stake in CSC E-Governance for 14.6 crore

Private sector lender HDFC Bank will buy a 9.11 per cent stake in CSC E-Governance Services. The

acquisition, for Rs. 14.62 crore, which HDFC Bank termed as a ―strategic investment‖, will be on cash basis.

HDFC Bank has executed an agreement for subscribing to 37,993 equity shares of face value of Rs. 1,000

each to be issued by CSC E-Governance Services India Limited at Rs. 3,848 per equity share

Hitachi arm & SBI to roll out digital payments platform

State Bank of India (SBI) and Hitachi Payment Services Pvt Ltd, a wholly-owned subsidiary of Hitachi Ltd

has launched their merchant-acquiring joint venture, SBI Payment Services Pvt Ltd (SBIPSPL) in

Mumbai for establishing a digital payments platform for India and other countries in the region.

The joint venture (SBI) has a 74 percent stake, and the balance is with Hitachi Payment Services) will

facilitate expansion of the digital payments landscape in India via its digital payments platform.

ADB to provide USD 26 mn to improve Dibrugarh's drainage

The Asian Development Bank (ADB) will provide a USD 26-million loan as additional financing for

improving drainage infrastructure in Dibrugarh town of Assam under the ongoing Assam Urban

Infrastructure Investment Program.

An agreement in this regard was signed between the ADB and the government

RBI imposes Rs 2-cr penalty on PNB for non-compliance of SWIFT operations







The RBI has slapped a penalty of Rs 2 crore on Punjab National Bank (PNB) for non-compliance of

regulatory directions with regard to SWIFT operations, the state-run lender.

SWIFT is a global messaging software used for transactions by financial entities. The massive Rs 14,000-

crore fraud perpetrated by billionaire jeweller Nirav Modi and his uncle Mehul Choksi at the PNB was a

case of misuse of this messaging software.

ICICI Lombard partners with Mobikwik for Cyber Insurance Cover

ICICI Lombard General Insurance, a leading non-life insurance company, has entered into a strategic

partnership with MobiKwik, a digital financial services platform, to provide cyber insurance cover for the

latter‗s mobile wallet users.

The relationship aims to provide protection against unauthorised and fraudulent transactions online, across

bank accounts, debit/credit cards and mobile wallets.The cyber-insurance can be availed digitally through the

app at only Rs. 99 per month and with a sum insured of Rs. 50,000.

The policy‗s validity is only for one month. MobiKwik users can enroll under this insurance product at the

time of loading money into their wallet or in a standalone format.

State Bank of India to join SWIFT's global payment interface

State Bank of India will soon sign up with the Society for Worldwide Interbank Financial Transactions„

(SWIFT) Global Payment Interface (GPI) which is set to make cross-border transactions much more secure

and transparent

India‗s largest lender will join 11 of its counterpart banks that will have subscribed to this payments platform

SWIFT gpi is being used by 3500 banks across the globe carrying transactions worth over $300 billion

daily.

The gpi-enabled banks can also opt for an additional feature called Payment Control Service (PCS) where in

case of any irregularities during the payments' transaction such as higher-than-usual fund size or uncommon

transaction timeframe, the channel can block the transaction and notify the bank

DBS to operate as wholly-owned subsidiary in India from March 1

The RBI approved merger of Singapore-based DBS Bank's Indian unit with its wholly owned local

subsidiary, DBS Bank India. The merger will be effective from March 1.

The wholly-owned subsidiary model allows foreign lenders to be treated as a local bank, removing certain

restrictions they face such as those on opening new branches.

PNB to sell part stake in housing finance arm for Rs 1,852 crore

State-run Punjab National Bank (PNB) is selling part of its stake in PNB Housing Finance to global private

equity firm General Atlantic Group and alternative investment firm Varde Partners for Rs 1,851.60

crore.

After the transaction, PNB will continue to hold a 19.78 per cent stake in the housing finance arm, and will

remain the promoter and strategic shareholder of the company, the lender informed the stock exchanges As of

December 31, 2018, PNB held 32.79 per cent in PNB Housing Finance.

Bandhan Bank gets RBI approval for acquisition of Gruh Finance

Bandhan Bank has received no objection from the Reserve Bank of India (RBI) for the proposed

acquisition of Gruh Finance.Gruh Finance, the affordable housing finance arm of HDFC Ltd, was taken

over in January by Kolkata-based Bandhan Bank in a share-swap deal.







As part of the deal, Bandhan Bank has to transfer 14.9 per cent stake to HDFC for merging Gruh with

itself.The deal will allow Bandhan Bank's promoter Bandhan Financial Holdings to come down to about 61

per cent from about 82 per cent, and HDFC to hold around 15 per cent in the merged entity from about 57 per

cent in Gruh.

The swap ratio for the amalgamation will be 568 shares of Bandhan Bank for every 1,000 shares of Gruh

Finance.

Govt and ADB sign US$ 926 million loan agreement for Mumbai Metro Rail Project

The Asian Development Bank (ADB) and the Government of India signed a $926 Million Loan Agreement to

operationalize two lines for the Mumbai Metro Rail System that will ease the distress of millions of

commuters each day and help provide a cleaner, less congested city.

The Single Largest Infrastructure Project Loan in ADB history approved by the ADB Board on 26 February

2019 - will help fund lines 2A (Dahisar to D.N. Nagar), 2B (D.N. Nagar-Bandra-Mandale), and 7 (Dahisar

[East] to Andheri [East]), totaling about 58 kilometers (km).

The project will fund 63 six-car trains, signaling and safety systems, and help establish a new dedicated metro

operations organization to manage the entire metro network in Mumbai. The Mumbai Metropolitan Region

Development Authority (MMRDA) will implement the project.

SBI Links Interest On Most Savings Account Deposits To RBI Repo Rate

State Bank of India has become the first domestic bank to link the interest rate it offers on savings account

deposits to an external benchmark — the Reserve Bank of India‘s repo rate.

By doing so, the bank will effectively link all loan rates to an external benchmark either directly or

indirectly, thereby attempting to speed up the transmission of any changes in the benchmark monetary

policy rate to depositors and borrowers

SBI announced the following changes:

Savings accounts with deposits above Rs 1 lakh would be priced at 2.75% below the prevailing repo

rate of 6.25%. The effective rate works out to be 3.5%, which is unchanged from the prevailing rate on

savings accounts.

Cash credit accounts and overdraft facilities over Rs 1 lakh would be priced at 2.25% over the repo

rate. At the prevailing repo rate of 6.25%, this would mean a floor price of 8.5%.

For all other floating rate products, including retail and corporate loans, the impact of SBI‘s decision

to link savings account deposit rates to the repo rate will be felt indirectly. These loans will continue to

be linked to the 1-year MCLR (marginal cost lending rate).

For savings account holders with balances up to Rs 1 lakh and borrowers with cash credit and

overdraft limits up to Rs 1 lakh, interest rates will remain fixed.

Karur Vysya Bank raises Rs. 487 crore through private placement of Tier II bonds

Karur Vysya Bank announced that the Capital Raising Committee of the Board has allotted 48,700 Basel

III compliant unsecured, redeemable, non-convertible Tier II Bonds in the nature of debentures of Rs 1 lakh

each aggregating Rs 487 crore on private placement basis.

SBI Launched Doorstep Banking Service For Senior Citizens Over 70







State Bank of India (SBI) has launched doorstep banking service for senior citizens over 70 years of age

and differently-abled customers. Eligible customers can avail this service at a nominal fee of 100 rupees per

transaction for financial transactions and 60 rupees for non-financial transactions.

Doorstep banking services are available to KYC- compliant account holders, with a valid mobile number

registered with the bank and residing within 5 kilometers radius from their home branch. This service will not

be available for accounts operated jointly, minor accounts, and accounts of non-personal nature.

RBI to swap $5 billion with banks to aid system liquidity

The Reserve Bank of India (RBI) offered a $5-billion swap facility to banks to aid liquidity before the end

of the financial year.

The auction will happen on March 26 and the buy/sell swap will run up to March 28, 2022, or for a three-

year duration.

The system liquidity is dry to the tune of little more than Rs 1 trillion, but it will be acute in the coming days

as advanced tax outflow (estimated at Rs 1.5 trillion) and the goods and services tax (GST), which is

estimated at Rs 1 trillion, will suck out liquidity from the system.

Corporation Bank celebrates 114th Foundation Day

Corporation Bank observed its 114th Foundation Day. The bank started operating on March 12, 1906, in

Udupi under the leadership of Khan Bahadur Haji Abdullah Haji Kasim Saheb Bahadur with a first day

business of Rs. 38, 13 Annas and two Paisa.To commemorate the 114th Foundation Day, 114 CSR activities

were undertaken by the bank across the country.

Bank Managing Director and CEO P.V. Bharathi, Executive Directors Gopal Murli Bhagat and Birupaksha

Mishra and other senior officials were present at the occasion

Paytm Payments Bank launches mobile banking app

The mobile app will enable customers to check their balances, raise request for physical debits cards,

access digital debit cards, etc., with 24x7 help and support.

The new app is latest addition to PPB‘s digital banking inclusion effort of a large part of Indian customers.

Launched in May 2017, the bank has enrolled over 43 Million saving bank customers and has issued over 2

Million physical debit cards and virtual debit card with the inbuilt security feature of single click enabling

/disabling.

Currently, the number of digital transactions through PPBL debit cards are twice than that of cash

transactions.

India Signs Loan Agreement with the World Bank for USD 25.2 Million

The Government of India, the State Government of Chhattisgarh and the World Bank signed a $25.2

Million Loan Agreement to support the State‘s Reforms in Expenditure Management. This support will

cover Expenditure Planning, Investment Management, Budget Execution, Public Procurement, and

Accountability.

The Chhattisgarh Public Financial Management and Accountability Program, which is the First Bank-

Financed State-Level Project in Chhattisgarh in nearly a decade, will also help the State strengthen its

Direct Benefit Transfer (DBT) and Tax Administration Systems.

RBI identifies SBI, ICICI and HDFC Bank as Domestic Systemically Important Banks (D-SIBs)







The Reserve Bank of India has released the list of Domestic Systemically Important Banks (D-SIBs).The

Reserve Bank had issued the Framework for dealing with D-SIBs in July 22, 2014.

Domestic Systemically Important Banks are those banks which if fails would have a significant impact on the

economy.

RBI has a various set of criteria to add a bank to this list. The basic condition is that a bank size should be

more than 2% of Indian GDP.

The D-SIBs banks are classified into 5 buckets. Bucket 1, Bucket 2, Bucket 3, Bucket 4 and Bucket 5. With

Bucket 5 being the most important followed by rest in decreasing order.

State Bank of India is in Bucket 3, while HDFC and ICICI Bank both are in Bucket 1. Rest all buckets are

empty. These three banks are in the D-SIBs list since Sep 04, 2017. No new bank has been added after the

revised list is released on March 14, 2019

SBI Launches Cardless ATM Withdrawal With YONO Cash

The State Bank of India has launched a new service called „YONO Cash‟ for its customers using which

customers can withdraw money from ATMs without using debit cards.

This facility is available over 16,500 of its ATMs through the You Only Need One (YONO), mobile app

platform for the first time in the country. The ATMs enabled for this service will be called as YONO Cash

Point.

RBI categorises IDBI as private bank

The Reserve Bank of India (RBI) has re-categorised IDBI Bank as a private sector lender.

This comes after LIC acquired a 51% stake in the bank on January 21, becoming its majority shareholder.

IDBI Bank has been under the RBI's Prompt Corrective Action (PCA) framework which bans it from

activities including corporate lending and branch expansion.

The bank's gross non-performing assets (NPAs) shot up to 29.67 per cent of gross advances as at December

31, 2018 against 24.72 per cent in the year-ago period.

India signs loan agreement with World Bank Uttarakhand Disaster Recovery Project

India has signed a loan agreement with the World Bank for 96 Million US dollars for additional financing

of Uttarakhand Disaster Recovery Project.

Finance Ministry in a release stated the World Bank has been supporting the State Government since 2014 to

restore housing and rural connectivity and to build the resilience of communities.

Schemes Interest Rates

Savings Deposit : 4%

Senior Citizen Savings Scheme (SCSS) : 8.7%

Public Provident Fund Account (PPF ) : 8.0%

National Savings Certificates (NSC) : 8.0%

Kisan Vikas Patra (KVP ): 7.7% (maturity- 112 months)

Sukanya Samriddhi Accounts : 8.5%

RBI to infuse Rs 12,500 crore via OMOs

The Reserve Bank of India (RBI) said it would infuse Rs 12,500 crore into the system through open

market operations .







Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going

forward, the RBI has decided to conduct purchase of the government securities under open market operations

(OMOs) for Rs 12,500 crore.

The purchase will happen through multi-security auction using the multiple price method. There is an overall

aggregate ceiling of Rs 12,500 crore for all the securities in the basket put together. There is no security-wise

notified amount.

Axis Bank opens its 4,000th branch in Pune

The country‗s 3rd largest private bank, Axis Bank, has opened its 4,000th branch in the country in Pune at

Eon, Kharadi. The new branch was inaugurated by Amitabh Chaudhry, Managing Director and CEO, Axis

Bank, and Ravi Narayanan, President and Head Branch Banking, Axis Bank.

The bank has added 297 branches in the current fiscal across India

White label ATM allowed to get Source cash directly from RBI

The Reserve Bank relaxed norms for white label ATM (WLA) operators and allowed them to buy wholesale

cash directly from the central bank to enhance the viability of white-label ATMs (WLAs)

It has been decided to allow them to buy wholesale cash, above a threshold of 1 lakh pieces (and in multiples

thereof) of any denomination, directly from the Reserve Bank and currency chests against full payment

RBI imposes Rs 8 crore fine on 3 banks for non-compliance in Swift operations

The Reserve Bank of India has imposed a total monetary fine of Rs 8 crore on three banks - Karnataka

BankNSE 0.88 %, United Bank of India and Karur Vysya BankNSE -0.42 % - for non-compliance of

directions on Swift messaging software.

While the RBI imposed a Rs 4 crore fine on Karnataka Bank, United Bank is facing a penalty of Rs 3 crore.

The regulator has levied Rs one crore fine on Karur Vysya Bank.

The RBI has levied an aggregate penalty of Rs 40 million on the bank for delayed implementation of four of

the Swift related operational controls

SBI raises Rs 1,251 cr by issuing Basel III-compliant bonds

The country's largest lender State Bank of India (SBI) has raised Rs 1,251.30 crore by issuing Basel III-

compliant bonds.

"The Committee of Directors for Capital Raising at its meeting deliberated and accorded approval to allot

12,513 non-convertible, taxable, perpetual, subordinated, unsecured Basel lll-compliant additional tier-I

bonds, for inclusion in additional tier-I capital of the bank...aggregating to Rs 1,251.30 crore

RBI forms task force to see overseas Rupee

A central bank group seeking to enhance India‟s appeal for rupee traders would study the effects of

overseas deals on the pricing of the local unit as part of the broader objective to move the currency market

nerve-centre back home from overseas.

The Reserve Bank of India (RBI) task force would likely also suggest policy measures to strengthen the local

markets, helping avoid wild swings in exchange rates for the rupee.

India, World Bank And Representatives Of 5 States Signed Loan Agreement For DRIP

The World Bank, the Government of India and representatives of 5 States of Government of India and

Implementing Agencies signed in New Delhi the Loan Agreement for Additional Financing of $137

Million for the Dam Rehabilitation and Improvement Project (DRIP).







This agreement will help rehabilitate and modernize over 220 selected large dams in the States of Karnataka,

Kerala, Madhya Pradesh, Odisha, Tamil Nadu and Uttarakhand. The $137 Million Loan from the

International Bank for Reconstruction and Development (IBRD), has a 3-year grace period, and a final

maturity of 16 years.

United Bank, HDFC Life Sign Bancassurance Deal

United Bank of India has signed a bancassurance deal with private life insurer HDFC Life Insurance

Company. Through this partnership, United Bank‘s customers will be able to take advantage of HDFC Life‘s

expertise in life insurance products, distribution and customer service.

United Bank has a strong presence in rural and semi-urban areas, with over 2,000 branches and offices, while

HDFC Life is India‘s largest non-bank-promoted private life insurer.

RBI, Bank of Japan Sign Bilateral Swap Arrangement

Reserve Bank of India and Bank of Japan have signed a Bilateral Swap Arrangement (BSA). The BSA was

negotiated between India and Japan during the visit of Prime Minister Narendra Modi to Tokyo in October

2018. The BSA provides for India to access 75 billion US dollars whereas the earlier BSA had provided for

50 billion dollars.

The BSA was approved by the Union Cabinet in January. India can access the agreed amount of 75 billion

dollars for its domestic currency, for the purpose of maintaining an appropriate level of balance of payments

or short-term liquidity.

IDBI Bank receives nod to handle import, exports transactions with Iran

The IDBI has received government nod to handle import and export transactions with Iran, a move which

would help in promoting two-way trade amid US sanctions on the Persian Gulf nation

IDBI Bank has been identified to route the payments. UCO Bankhad in the previous round of sanctions

handled rupee payments.Iran is India's third-largest oil supplier after Iraq and Saudi Arabia.

It was India's second biggest supplier of crude oil after Saudi Arabia. Bilateral trade between India and Iran

increased to USD 13.8 billion in 2017- 18 from USD 12.9 billion in the previous fiscal. However, India's

exports were only worth USD 2.5 billion to that country.

Government To Infuse Rs 5,042 crore Into Bank of Baroda

The Finance Ministry has decided to infuse Rs 5,042 crore into state-owned Bank of Baroda (BoB) ahead

of the merger of two other public sector lenders Dena Bank and Vijaya Bank with BoB. The merger of Dena

Bank and Vijaya Bank with BoB would be effective from April 1.

Hyundai and Kia to invest $300 million in Ola, focus on smart mobility solutions

Hyundai Motor Group and Kia Motors Corporation announced a strategic partnership to invest 300 million

dollars (about Rs 2,000 crore) in ride-hailing platform Ola for providing smart mobility solutions.

It will be Hyundai's and Kia's biggest combined investment to date.

The agreement will see the three companies extensively collaborate on developing unique fleet and mobility

solutions, build India-specific electric vehicles and infrastructure, as well as nurture opportunities for driver

partners with customised vehicles on the Ola platform.

GST collection drops to Rs 97,247 cr in Feb

GST collections in February dropped to Rs 97,247 crore in February from Rs 1.02 lakh crore in the previous

month, the Finance Ministry.







The number of sales return or GSTR-3B filed for the month of January up to February 28, 2019 is 73.48 lakh.

"The total gross GST revenue collected in February 2019 is Rs 97,247 crore of which Central GST is Rs

17,626 crore, State GST (SGST) is Rs 24,192 crore, Integrated GST (IGST) is Rs 46,953 crore and Cess is Rs

8,476 crore,"

Tata Communications partners with China Telecom for IoT devices

Tata Communications announced that it is working with China Telecom Global to launch Internet of Things

(IoT) service in the Chinese market

The partnership will allow companies to deploy and manage IoT devices easily and cost-effectively within

China and internationally across multiple industries, including consumer and industrial electronics

manufacturing, automotive, transport and logistics

China Telecom Global and Tata Communications will cooperate to support global IoT opportunities.

The Tata Communications MOVE service leverages the company's relationships with more than 600 mobile

network operators worldwide.

Through this partnership, China Telecom Global also provides Tata Communications with connectivity for

Mainland China, Hong Kong and Macau.

Government extends IGST, compensation cess exemption till March 2020

The directorate general of foreign trade (DGFT) has extended integrated GST (IGST) and compensation cess

exemptions for goods procurement under advance authorisation scheme, export oriented unit (EOU) scheme

and export promotion capital goods (EPCG) scheme of foreign trade policy 2015-20 to 31 March 2020.

This decision is aimed at giving relief to exporters as they do not have to pay IGST at initial point itself.In the

GST regime, exporters have to pay the indirect tax and then seek refund, which is cumbersome process.

Fitch cuts India GDP growth forecast for FY20 to 6.8% from previous 7%

Fitch Ratings Friday cut India's economic growth forecast for the next financial year starting April 1, to 6.8

per cent from its previous estimate of 7 per cent, on weaker than expected momentum in the economy.

While we have cut our growth forecasts for the next fiscal year (FY20, ending in March 2020) on weaker-

than-expected momentum, we still see Indian GDP growth to hold up reasonably well, at 6.8 per cent,

followed by 7.1 per cent in FY21,"

OECD cuts global growth forecast over trade, Brexit uncertainty.

Trade tensions and political uncertainty including Brexit are weighing on the world's economy, the OECD

warned Wednesday as it again cut its 2019 forecast for global economic growth.

The Organisation for Economic Co-operation and Development lowered its forecast to 3.3 per cent for this

year, down from the 3.5 per cent it predicted in November, which was itself a downgrade from a previous 3.7

per cent.

Sebi lifts foreign investment cap in corporate bonds:

Markets regulator Sebi on Tuesday withdrew the 20 per cent limit on investments by Foreign Portfolio

Investors in corporate bonds of an entity.

In a notification, the regulator said the restriction is being withdrawn in accordance with a circular issued by

the Reserve Bank of India (RBI).







In June last year, the Securities and Exchange Board of India (Sebi) had mandated that no Foreign Portfolio

Investors (FPIs) shall have an exposure of more than 20 per cent of its corporate bond portfolio to a single

corporate.

NSE subsidiary buys cybersecurity company Aujas for undisclosed sum:

NSEIT, a wholly-owned subsidiary of National Stock Exchange of India (NSE) has acquired Aujas Networks,

a cybersecurity firm whose customers include Japanese financial services group Mitsubishi UFJ and a

domestic national identity programme. Financial terms of the private transaction were not disclosed.

NSEIT which provides IT services said the acquisition will help it to strengthen its cybersecurity offerings.

The firm would also help to scale the services and capabilities Aujas which will continue to run as a separate

entity. It has 400 skilled cybersecurity professionals and over 390 customers globally.

India's April-February fiscal deficit at 134% of FY target: Govt data

The country's fiscal deficit touched 134.2 per cent of the full-year revised budgeted estimate at the end of

February 2019, mainly due to tepid growth in revenue collections,

In absolute terms, the fiscal deficit for April-February 2018-19 was Rs 8.51 lakh crore as against the revised

estimate (RE) of Rs 6.34 trillion for the entire year, according to Controller General of Accounts (CGA) data.

April 2019 – Banking, Finance & Economy Current Affairs

First Bi-Monthly Monetary Policy Statement 2019-20:

The three-day policy review meeting by the Monetary Policy Committee (MPC) headed by RBI Governor

Shaktikanta Das in Mumbai.

The Reserve Bank of India in its first Bi-Monthly statement 2019-20 has made the following announcements -

The RBI reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.0

per cent from 6.25 per cent with immediate effect.

The reverse repo rate under the LAF stands adjusted to 5.75 per cent.

The marginal standing facility (MSF) rate and the Bank Rate to 6.25 per cent

The MPC also decided to maintain the neutral monetary policy stance

Second Bi-monthly Monetary Policy Statement for 2019-20: 6th June 2019

Current Policy Rates:

Policy Repo Rate 6.0%

Reverse Repo Rate 5.75 %

Marginal Standing Facility Rate 6.25%

Bank Rate 6.25%

CRR 4%

SLR 19.25%

RBI sells entire stake in NHB, Nabard to government for Rs 1,470 cr:







The Reserve Bank has exited the National Housing Bank (NHB) and the National Bank for Agriculture &

Rural Development (Nabard), by selling its entire stakes to government for Rs 1,450 crore and Rs 20

crore, respectively, making them fully government-owned

The central bank has sold its stake in NHB on March 19, while it sold the stake in Nabard

RBI extends ombudsman scheme to non-deposit taking NBFCs:

Also Provides a cost-free and expeditious complaint redressal mechanism relating to deficiency in the

services by NBFCs covered under the Scheme

All Non-Deposit Taking Non-Banking Financial Companies having customer interface, with assets size of

Rupees 100 crore or above will come within the ambit, and shall comply with the provisions of the

Ombudsman Scheme for Non- Banking Financial Companies.

RBI may have ₹3 lakh cr. excess capital : BofAML:

As the Bimal Jalan Committee prepares to submit its report on RBI‘s economic capital framework, a report by

Bank of America Merrill Lynch (BofAML) has said the excess reserves that the central bank holds could be

up to ₹3 lakh crore or 1.5% of the GDP.

Capping overall reserves at 20% from 25.5% will release Rs. 1.96 lakh crore.

There's no restriction which prevents RBI from transferring the money to government

RBI issues norms for banks to set up currency chests:

Area of the strong room/ vault of at least 1,500 sq ft. For those situated in hilly/ inaccessible places, the strong

room/ vault area of at least 600 sq ft," the RBI said while specifying minimum standards for setting up new

currency chests.

the new chests should have a processing capacity of 6.6 lakh pieces of banknotes per day. For those situated

in the hilly/ inaccessible places, capacity of 2.1 lakh pieces of banknotes per day.

RBI Places NBFC-MFIs' Average Base Rate At 9.21% For Current Quarter:

The Reserve Bank of India (RBI) has communicated that the applicable average base rate to be charged by

Non-Banking Financial Company - Micro Finance Institutions (NBFC-MFIs) to their borrowers for the

quarter beginning April 01, 2019 will be 9.21%

RBI first APAC central bank to begin interest rate easing cycle: Fitch:

The Reserve Bank of India is the first central bank in the Asia-Pacific region to begin an explicit interest rate

easing cycle buoyed by benign food inflation and easier global financial condition, Fitch Ratings

The Monetary Policy Committee (MPC), headed by RBI Govenor Shaktikanta Das, cut rates in February and

April citing prospects of benign inflation. In the four months of 2019, the RBI has cut policy interest rates

twice by 0.25 per cent each to one-year low of 6 per cent.

This is the first back-to-back rate cut since the MPC was formed in late 2016.

Fitch has a 'BBB-', the lowest investment grade, rating on India, with a stable outlook:

Fitch estimates India to grow at 6.8 per cent in current fiscal 2019 and 7.1 per cent in 2020.

RBI Tweaks LCR Norms To Boost Liquidity:

In a bid to further improve the cash position of banks, RBI has tweaked Liquidity Coverage Ratio (LCR)

norms to provide an additional 2% window to lenders. As per RBI Governor Shaktikanta Das, this move

will harmonise the liquidity requirements of banks and release additional money for lending.







LCR indicates the proportion of highly liquid assets held by banks to ensure their ability to meet short-term

obligations

RBI to soon release new Rs 20 bank note:

The Reserve Bank of India (RBI) announced that it will shortly issue Rs 20 denomination banknotes, in the

Mahatma Gandhi (New) series, bearing the signature of the central bank's governor Shaktikanta Das. These

are different in size and design compared to the notes issued earlier.

The Rs 20 note will be greenish-yellow in colour. The new banknote has a motif of Ellora Caves on the

reverse, depicting the country's cultural heritage,"

A few features of the new Rs 20 (Back)

Motif of Ellora Caves

Dimension of the banknote will be 63 mm x 129 mm

RBI extends deadline for legal entity identification:

The RBI extended the deadline for Legal Entity Identifier (LEI) codes for participation in non-derivative

markets.

Now, the deadline for entities with net worth of over ₹1,000 crore to get the code is December 31, 2019,

against the earlier deadline of April 30 this year

This is also the deadline for those with net worth between ₹200 crore and ₹1,000 crore, while for entities with

net worth of less than ₹200 crore, the deadline has been extended to March 31, 2020.

RBI to inject USD 5 bn more liquidity through 2nd dollar-rupee swap auction:

The Reserve Bank of India (RBI) said it will inject long-term liquidity worth USD 5 billion into the banking

system through dollar-rupee buy-sell swap for a tenure of three years on April 23, the second such auction

within a month.

The RBI has signed a Statement of Commitment (SoC) to the FX Global Code.:

The code, launched a compilation of best market practices, formulated by central banks and market

participants, developed under the auspices of the Bank for International Settlements (BIS), Basel.







The RBI said the code is applicable to the wholesale FX market participants covering sell-side, buy-side and

financial intermediaries, and is voluntary in nature.

It does not impose any legal or regulatory obligations, and is intended to be a supplement to the local laws,

rules and regulations.

It is currently being implemented globally by the Global FX Committee (GFXC) in co-ordination with the

Local FX Committee (LFXC) in each jurisdiction.

RBI sets WMA Limit for Government at Rs 75000 crore for H1 of 2019-20:

The Reserve Bank of India, in consultation with the Government of India, has decided that the limits for

Ways and Means Advances (WMA) for the first half of the financial year 2019-20 (April 2019 to September

2019) will be Rs 75000 crore.

The Reserve Bank may trigger fresh floatation of market loans when the Government of India utilises 75% of

the WMA limit.

ADB committed highest-ever USD 3 bn in sovereign loans to India in 2018:

ADB committed to provide USD 3 billion in sovereign loans to India in 2018, the highest level of assistance

since sovereign operations began in the country in 1986, said the annual report of multilateral lending agency.

In all, the Asian Development Bank (ADB), owned by 68 member countries, committed a total of USD 3.88

billion, including sovereign loans and co-financing during the year ended December 2018.

State Bank of India cuts MCLR by 5 bps, home loans cheaper by 10 bps:

State Bank of India (SBI) reduced its MCLR by 5 bps across all tenors and slashed interest rate on home

loans up to Rs 30 lakh by 10 basis points.

One-year MCLR will be 8.50% per annum (pa). The interest rates on all loans linked to MCLR stand reduced

by 5 bps from April 10, 2019, India‘s largest lender said in statement.

SBI Launches first Green Car Loan

State Bank of India announced the country‗s first ‗Green Car Loan‗ (Electric Vehicle) to encourage

customers to buy electric vehicles.The new scheme will offer loan at 20 basis points lesser than the interest

rate on the existing car loan schemes.

The EMI perRs. 1 lakh will be lower at Rs. 1,468 for 96 months against Rs. 1,622 for 84 months, based on the

maximum tenor, in line with the existing scheme.

SBI General launches cyber defence insurance for businesses:

SBI General Insurance Monday said it has launched a product to protect businesses from financial and

reputational losses due to cyber attacks.

In the initial phase, the focus will be on SMEs and mid-market businesses, but later the product can cater to

larger business conglomerates as well, the insurer said in a statement.

Exim Bank Funds Projects Worth USD 267 mn In Rwanda:

Exim Bank has provided soft loans of USD 266.60 million to Rwanda for various projects.

The funding, done in three separate tranches to Rwanda, is to support agricultural projects, development of

special economic zones (SEZs) and for financing a road project in the African nation.

Kotak Bank Launches Debit Card-Based e-mandate On NPCI‟s API Platform:







Kotak Mahindra Bank (Kotak) has launched the first debit card-based authentication solution on NPCI‘s

(National Payments Corporation of India) e-Mandate (electronic mandate) API (Application Program

Interface) platform.

With this, it has become the first ever Destination Bank to go live with both Net Banking and Debit Card-

based e-mandate authentication. The objective of this initiative is to enable Kotak customers to create

electronic mandates, similar to the former e-NACH with Aadhaar + OTP via both debit card and net banking

provision.

IMF & World Bank Launched „Learning Coin‟ For In-House Purposes:

The International Monetary Fund (IMF) and the World Bank have together launched a private blockchain

with a pseudo-token. The new token, called ―Learning Coin‖ and only accessible within the IMF and World

Bank, has a purpose to teach relevant individuals within the organizations about blockchain.

Though the coin has no real value – hence the description pseudo-token – staff members who pass educational

milestones will receive the tokens which can then be redeemed for certain rewards.

The purpose is to get employees to understand the applications of blockchain technology in the real world.

IndusInd Bank Receives NCLT Approval For Merger With Bharat Financial Inclusion:

National Company Law Tribunal (NCLT) approved the merger of private sector lender IndusInd Bank with

Bharat Financial Inclusion (BFIL), a microfinance company.

Earlier, IndusInd Bank had received ‗No Objection‘ from Reserve Bank of India, National Stock Exchange

and Bombay Stock Exchange. Bharat Financial will become a subsidiary of the private lender.

Canara Bank, Canara HSBC OBC Life launch „Webassurance‟:

Canara Bank and its life insurance partner Canara HSBC Oriental Bank of Commerce Life Insurance

launched ‘Webassurance‘ to enable its customers to purchase life insurance in a convenient and hassle-free

way.

This Life Insurance is jointly owned by Canara Bank (51%) and Oriental Bank of Commerce (23%) and

HSBC Insurance Holdings (26%), the Asian insurance arm of HSBC.

Canara Bank Becomes The First Public Sector Bank In India To Meet RBI‟s EMV Mandate:

ACI Worldwide, a global provider of real-time electronic payment and banking solutions, announced that

Canara Bank has successfully rolled out major new functionality to support EMV card acquiring across its

ATM network and Aadhaar Authentication, leveraging ACI‘s UP Retail Payments solution to achieve

market firsts.

Canara Bank, with nearly 6,300 branches and a network of more than 10,000 ATMs, is the first public sector

bank to shift to EMV chip and PIN for card present transactions across the country‘s vast ATM network.

Vijaya Bank, Dena Bank merger with BoB to be effective from April:

State-owned Bank of Baroda's proposed merger with Dena and Vijaya Bank will be affected from April 1.

The government's amalgamation plan for these state-owned banks has already got all the necessary approvals

from the regulators concerned. The Bank of Baroda board in a recent meeting also decided to issue and allot

equity shares to Vijaya Bank and Dena Bank on March 11.

IDRBT Sets Up 5G Lab For Banking, Financial Sector:

The Institute for Development and Research in Banking Technology (IDRBT), an arm of Reserve Bank of

India, has launched a 5G Use Cases Lab for banking and financial sector.







The 5G technology, along with blockchain, will be progressively adopted by banks. Department Of

Telecommunications had already launched test beds for 5G use in the academia in Hyderabad, Chennai and

Bangalore to develop 5G for Indian use.

Government Raises Authorised Capital of Allahabad Bank To Rs 8,000 Crore:

State-owned Allahabad Bank stated that the government has increased its authorised capital by Rs 5,000

crore to Rs 8,000 crore. The central government after consultation with the Reserve Bank of India increased

the authorised capital of the bank.

The increase in authorised capital will help enable the bank to raise further fund up to a maximum ceiling of

Rs 8,000 crore.

Priority Sector Lending Certificates volume crosses Rs 3-trillion mark:

The priority sector lending certificates (PSLCs) volume rocketed to Rs 3.3 trillion in FY19,up from Rs 1.9

trillion in the last financial year and Rs 50,000 crore in FY17.

PSLCs relating to the small and marginal farmers segment continued to be in most demand, according to

rating agency CRISIL.

Bank of India to sell 25% stake in life insurance JV SUD Life Insurance for Rs. 1,106 crore:

Public sector lender Bank of India offered to sell a 25 per cent stake in its joint venture company Star Union

Dai-ichi Life Insurance Co Ltd for approximately Rs. 1,106 crore($159.87 million).

Star Union Dai-ichi Life Insurance Co. Ltd. (SUD Life) is a joint venture (JV) of Bank of India, Union Bank

of India and Dai-ichi Life, a leading life insurance company of Japan

Bank of India to sell 6.49 crore shares, or 25.02 per cent stake, in Star Union Dai-ichi Life Insurance Co at a

floor price of 170.50 per share.

Bank of Maharashtra gets Rs 205 crore capital from govt:

State-owned Bank of Maharashtra said thatgovernment has infused Rs 205 crore into the bank in lieu of

preferential allotment of shares.

The capital infusion was done on March 30, 2019.

The issue committee of the bank in its meeting held on March 30, 2019 issued and allotted 15,47,16,981

equity shares of the bank for cash at an issue price of Rs 13.25 per share aggregating to Rs 205 crore on

preferential basis to the government, Bank of Maharasthra said in a regulatory filing. ..

Bank of Baroda, Srei Equipment Finance tie up for infra equipment loans:

Srei Equipment Finance Ltd (SEFL) and India‗s second largest state-run lender Bank of Baroda have entered

in to aco-lending arrangement for infrastructure equipment. The offerings would include both business to

business (B2B) and business to customer (B2C) propositions

The partnership will allow Kolkata-based Srei Infrastructure Finance Ltd‗s equipment finance arm and Bank

of Baroda to collaborate and widen their respective customer base.

As part of the arrangement, the companies will use iQuippo, a digital marketplace for origination of loans,

collection of loan dues, and auction and valuation of equipment

Karnataka Bank Signs Pact With Bharti AXA For Insurance Products:







Karnataka Bank has entered into an MoU with Bharti AXA Life Insurance Company to distribute the latter‘s

life insurance products. The bank will be able to provide a wide choice of life insurance products to its

customers across 836 branches, supported by the products of Bharti AXA Life Insurance Company.

This is the third such tie-up by the bank after PNB MetLife Life Insurance Company and LIC of India, both of

which continue to provide insurance solutions to the customers of Karnataka Bank.

IDBI Bank Launches „NRI-Insta-Online‟ Paperless Account Facility:

IDBI Bank has launched ‗NRI-Insta-Online‘ account opening process for NRIs residing in the Financial

Action Task Force (FATF) member countries. The person will not be required to furnish physical documents

as well as KYC proofs for opening an account with the bank.

Kotak Mahindra Bank Becomes First Lender To Charge For UPI Use:

Kotak Mahindra Bank (Kotak) stated that it will charge customers for UPI transactions starting 1st of May

2019.

For each Kotak Bank account, the first 30 UPI fund transfers will be free, after which a charge will be levied

on all fund transfers from the bank account.

This will be applicable across all platforms, including Paytm, PhonePe, Google Pay or Truecaller Pay

among others. The bank will charge Rs 2.50 per transaction for an amount value below or equal to Rs 1,000,

and Rs 5 per transaction will be levied for a payment value above Rs 1,000.

SEBI Reduces Minimum Subscription Requirement For REITs, InvITs:

Markets regulator SEBI (Securities and Exchange Board of India) has reduced the minimum subscription

requirement as well as defined trading lots for Real Estate Investment Trusts (REITs) and Infrastructure

Investment Trusts (InvITs). SEBI has also increased the leverage limit for InvITs from 49% to 70%.

While making an initial public offer and follow-on offer, the minimum subscription shall not be less than Rs 1

lakh for InvITs and Rs 50,000 for REITs. Currently, in the case of a REIT issue, the minimum subscription

from any investor in an initial offer and follow-on public offer is not less than Rs 2 lakh, while the same is Rs

10 lakh in case of InvIT.

GST mop up hits a record ₹1.06-lakh crore in March:

The GST collection for the month of March reached Rs 1.06 lakh crore, marking the highest ever mop-up

recorded under the unified tax regime since its introduction.

The record high came on the back of higher compliance and increase in GST returns filed.

The total number of GSTR-3B filed till March 31 for the month of February stood at 75.95 lakh.

CRISIL Board Gives Nod For Transfer Of Ratings Business To New Subsidiary:

CRISIL Ltd, a diversified global analytics company, will transfer its rating business to its proposed new

wholly-owned subsidiary.

The board of CRISIL gave the nod for the transfer, which is being done to comply with SEBI norms of

2018.Earlier, SEBI had modified its regulations for credit rating agencies and mandated the segregation of

rating and non-ratings businesses of credit-rating agencies.

CRISIL proposes to undertake the transfer of its ratings business through a scheme of arrangement in terms of

Section 230 to 232 of the Companies Act, 2013, to be approved by the stock exchanges and the National

Company Law Tribunal.







Deposits In Jan Dhan Accounts Are Set To Cross Rs 1 Lakh Crore Mark:

The total deposits in Jan Dhan Account are set to cross Rs 1 lakh crore soon. The scheme was launched on

28th August 2014 by the Modi-government with an aim to provide universal access to banking facilities to all

households

On 3rd April, the total balance in the Jan Dhan accounts was at Rs 97,665.66 and the total number of Jan

Dhan accounts crossed 35.39 crores. Also, more than 27.89 crores account holders have been issued the

Rupay debit cards.

Reliance Jio acquires chatbot making startup Haptik for Rs. 700 crore

Reliance Industries (RIL) subsidiary Reliance Jio Digital has acquired a majority stake in Mumbai based

Artificial Intelligence-based conversational platform Haptik for Rs. 700 crore.

In the Rs. 700-crore deal, Rs. 230 crore will go for business transfer and Rs. 470 crore will go towards

expansion.

Reliance will hold about 87% of Haptik while the company's founders and employees will own the rest of the

shares through stock option grants.

All of Haptik‗s business and holdings will be transferred to Reliance Jio Digital Services.

Eight core industries show 2.1% growth in February 2019:

The combined index of eight core industries stood at 125.8 in February 2019, which indicates a marginal

increase of 2.1 per cent during the month.

The eight core industries, including coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and

electricity, are responsible for almost 41 per cent of the weight of items included in the Index of Industrial

Production (IIP).

The dismal show in February was on account of fall in output registered in the crude oil and refinery products.

Coal production: It grew by 7.3% in February 2019 against 1.3% growth in the same period a year ago.

Steel production: It recorded 17.92% growth as against 5% growth in the same period a year ago.

Natural gas production: It grew by 3.8%.

Fertilizers Sector: It grew by 2.5%.

Cement production: It grew by 8%.

Electricity production: It grew by 0.7%, falling from 4.6% growth in February 2018.

Production of crude oil: It recorded -6.1% growth.

Refinery products: It recorded -0.8% growth

Bandhan Bank Gets CCI Nod For Merger With Gruh Finance:

Bandhan Bank has received approval from the Competition Commission of India (CCI) for the proposed

scheme of amalgamation of Gruh Finance with the bank. The approval has been made under sub-section (1)

of Section 31 of the Competition Act, 2002.

Bandhan Bank had, in January 2019, announced the merger of Gruh Finance with it. The move was taken to

bring down promoter holding in the bank to 61% from 82.3%.

Sebi fixes minimum net worth for clearing corporations at IFSC:







The Securities and Exchange Board of India (Sebi) has prescribed that all recognised clearing corporations in

International Financial Services Centre (IFSC), need to maintain Rs 50 crore net worth in the form of liquid

assets on commencement of operations.

Also, every such clearing corporation will raise over a period of three years from commencement of

operations, its net worth, to be maintained in the form of liquid assets, to a minimum of Rs 100 crore or

capital as determined in accordance with the aforementioned Sebi circular.

Paytm Money Receives SEBI Approval To Start Stock Broking Services:

The Securities and Exchange Board of India (SEBI) has given approval to Paytm Money the investment and

wealth management platform of the mobile payments company to start offering broking services.

It had applied for the licence in October 2018. Paytm Money has also received membership of NSE and BSE.

BuyUcoin Introduces First Indian Platform for Wholesale Cryptocurrency Trading:

BuyUcoin, second oldest Cryptocurrency Exchange in India, has introduced a new and unique platform for

wholesale cryptocurrency trading.

This platform works on ‗free trading model‘ which means it charges zero fee on any trade. It is also known as

OTC (Over-the-counter) Desk that allows users to trade on a large scale with low price fluctuations.

ETMONEY Becomes India‟s First Comprehensive Financial Services App to Integrate with UPI:

ETMONEY India‘s largest app for financial services has integrated with Unified Payment Interface (UPI) as a

payment method. The reason for this is to double its monthly user base by the end of 2019.

This integration will simplify the mutual fund payment for millions of ETMONEY users. ETMONEY is

owned by Times Internet which is a part of the Times Group.

Sebi extends phase 1 deadline of UPI for retail IPO investors till June 30:

Markets regulator Sebi Wednesday extended the timeline for the implementation of phase 1 of Unified

Payments Interface (UPI) as an alternative payment mechanism for retail investors buying shares in a public

issue.

To ensure smooth transition to UPI in ASBA (Application Supported by Block Amount) and in the back drop

of the representation received from various stakeholders, Sebi said, "it has been decided to extend the timeline

for implementation of Phase I... by 3 months i.e. till June 30, 2019"

IMF cuts India GDP growth forecast to 7.3% for 2019-20:

The International Monetary Fund (IMF) cut India‗s GDP growth forecast for 2019-20, following similar

action by the Asian Development Bank (ADB) and the Reserve Bank of India (RBI).

In India, growth is projected to pick up to 7.3% in 2019 (2019-20) and 7.5% in 2020 IMF said in its World

Economic Outlook report.

Both ADB and RBI last week cut their 2019-20 growth projection for India to 7.2% from 7.4% earlier.

The Central Statistics Office (CSO) to trim its 2018-19 forecast to 7% in February from 7.2% estimated in the

previous month.

HDFC Bank and Max Bupa launch AnyTimeHealth machines to distribute health insurance products

HDFC Bank and Max Bupa (insurance company) have launched a ‗AnyTimeHealth (ATH)‘ machines.

ATH machine is completely automated, technology-based model which allows customers to avail health

assessment and buy a policy instantly, without any manual intervention.







In the phase-1, 15-20 ATH machines will be installed at HDFC Bank branches across multiple cities.

Lakshmi Vilas Bank To Merge With Indiabulls Housing Finance:

The board of Lakshmi Vilas Bank (LVB) approved the merger of the private sector lender with Indiabulls

Housing Finance (IBH) through a share swap deal. The merger will help Indiabulls get access to low-cost

stable funds and entry into banking.

The merger will also enable Tamil Nadu-based LVB to obtain a larger geographical presence. The merged

entity will have a net worth Rs19,472 crore and a loan book Rs1,23,393 crore for the nine months of FY19.

IBH‘s board has constituted a reorganisation committee headed by independent director and former RBI

Deputy Governor SS Mundra.

BSNL gets license for in-flight connectivity

Bharat Sanchar Nigam Limited (BSNL) has received the In-Flight Connectivity license from the Department

of Telecommunications (DoT) for enabling in-flight and maritime connectivity (IFMC) within Indian

airspace.

BSNL and Inmarsat, which is the satellite partner of BSNL, also operates the GX Aviation service will be

able to offer in-flight connectivity to airlines. With this facility users can send messages, surf the internet

and/or tweet, when a flight is at a minimum height of 3,000m in Indian airspace.

Presently any form of internet connectivity for both domestic and international flights is not available on

Indian flights.After, this facility enabled, users will still have restricted amounts of data available for their

uses, applicable for all airlines.

Microsoft Becomes World‟s Third Company To Be Worth $1 Trillion:

Microsoft has reached a valuation of one trillion dollars for the first time after posting an increase in profits. It

makes the software giant only the third publicly-traded company in history to reach the threshold after Apple

and Amazon passed it in 2018.

Microsoft‘s current valuation also means that it has again taken over Apple as the world‘s most valuable

company.

Infosys arm to buy 75% stake in Dutch bank subsidiary:

Global software major Infosys stated that its consulting arm would buy 75 per cent equity stake in Starter

N.V., a subsidiary of the Dutch-based ANN AMRO Bank for Rs. 999 crore ($144 million) for strategic

partnership in The Netherlands.

WTO trims global trade growth forecast for 2019 to 2.6% from 3.7% :

Global trade growth is expected to be lower in 2019 than it was last year, the World Trade Organization

forecast on Tuesday. This could have a major impact on the outbound shipment from India.

The WTO revised growth to 2.6 per cent from its earlier estimates of 3.7 per cent. This is lower than the 3 per

cent growth recorded in 2018. It attributed its dismal outlook to widespread ―tensions‖ and economic

uncertainty.

PayU acquires digital financial security firm Wibmo for USD 70 mn:

Digital payments facilitator PayU has acquired US-based financial technology firm Wibmo for USD 70

million (about Rs. 484 crore), that will help the company scale-up its business.Under the agreement, PayU

and Wibmo businesses will continue to run separately.







Wibmo, a digital payment security and mobile payment technologies firm, will continue to operate and serve

all of its clients as a wholly-owned subsidiary of PayU.

ADB cuts India‟s growth rate to 7.2% in 2019-20:

Asian Development Bank (ADB) on Wednesday lowered India‘s growth by 40 basis points to 7.2 per cent in

fiscal year 2019-20. Still. It will be fastest growing economy in the world. The growth rate in FY 2020-21

likely to be 7.3 per cent.

Govt manages to meet revised fiscal deficit target of 3.4% of GDP:

The government has managed to meet the revised fiscal deficit target of 3.4 per cent of the GDP after it cut

last minute expenditure and rolled over fuel subsidies to make up for the shortfall in tax collection.

The interim Budget presented in February revised upward the fiscal deficit target to 3.4 per cent from 3.3 per

cent of GDP estimated earlier for 2018-19.

World Bank Projects India‟s GDP to Expand 7.5% in FY20:

India's GDP growth is expected to accelerate moderately to 7.5 percent in fiscal year 2019-20.

The Economy driven by continued investment strengthening, particularly private-improved export

performance andresilient consumption.

The real GDP growth is estimated at 7.2 percent in financial year 2018-19, Meanwhile, agriculture growth

was robust at 4 per cent

IMF Cuts India‟s GDP Growth Forecast To 7.3% For FY20:

The International Monetary Fund (IMF) cut its economic growth forecasts for India by 20 basis points (bps)

each from its January predictions to 7.3% for FY20 and 7.5% for the next fiscal.

Citing persistent risks from the trade war, it lowered 2019 global growth forecast by 20 basis points to 3.3%,

the weakest since 2009 when the subprime crisis had flared up

Wipro acquires Philippines largest personal care company Splash Corporation:

Wipro Consumer Care signed an agreement to acquire Splash Corporation, a Philippines-based personal care

company.

Wipro stated that this is the company‗s 11th acquisition in the consumer line business, and the 9th

acquisition

in the personal care segment overall.

Splash is the largest Philippine personal care player and among the top five in the Philippines market. It

recorded revenue of $80 million last year.

IRDAI Forms Panel to Review Microinsurance Framework:

Insurance Regulatory & Development Authority of India (IRDAI) has set up a 13 member committee under

IRDAI Executive Director Suresh Mathur to review the regulatory framework on microinsurance &

recommend measures to increase the demand for such products.

The committee has been formed in the backdrop of a less-than-desired offtake of microinsurance products

despite their inherent benefits.

Government Retains Interest Rate For General Provident Fund at 8%:

The government has retained the interest rate for General Provident Fund (GPF), Contributory Provident Fund

and other related schemes at 8 per cent for the first quarter of the current financial year.







The interest rate on these funds was at 8% in January-March quarter of 2018-19 and government kept it

unchanged for April to June for 2019-20. The interest rate will be applicable on provident funds of central

government employees, railways and defence forces.

HDFC AMC ranked 1st in terms of Assets:

India‗s asset management companies (AMCs) own assets under management (AUM) worth Rs24.46 trillion,

according to data released by the Association of Mutual Funds in India (Amfi).

HDFC Asset Management Co. Ltd has claimed the top spot with an average AUM of Rs3.42 trillion,

overtaking ICICI Prudential Asset Management Co. Ltd with an average AUM of at Rs3.20 trillion.

Out of the total industry assets, a huge 82.7% is owned by the top 10 AMCs, who have owned around 80% of

the industry assets over at least three years now.

May 2019 – Banking, Finance & Economy Current Affairs

PayPal India introduces 'OneTouch' to enhance user experience

PayPal India has introduced 'OneTouch' experience using Google Smart Lock for its users in India that

will allow them to stay logged onto the digital payments platform in a secure manner.

India is the first market where the feature will be integrated with Google Smart Lock, Paypal India

Talocity to enable AI-backed hiring in Yes Bank

Artificial Intelligence (AI)-based HR solutions provider Talocity would provide Yes Bank its AI-supported

"touchless" technology for the bank's hiring process and human resource (HR) operations.

"Talocity, which provides 'touchless hiring' with unbiased HR outcomes to its clients, on-boarded Yes Bank

as a client recently. Talocity's blend of automation enables Yes Bank to further enhance their hiring process

and HR operations, to attain high quality talent," read a company statement.

ICICI Bank along with online travel booking portal Goibibo launched co-branded multi-currency card

Industrial Credit and Investment Corporation of India (ICICI) Bank along with online travel booking portal

Goibibo launched co-branded multi-currency card- Goibibo ICICI Bank Travel Card.

Customers can use one card for multiple currencies and enjoy discounts on flights and hotel bookings.

Debit card PoS swipes rise 27% as per RBI data

Indians are increasingly using their debit cards to pay merchants directly. As per data from the Reserve Bank

of India, debit card swipes on Point of Sales (PoS) terminals jumped more than 27% in March 2019

compared to corresponding period last year. In contrast, ATM withdrawals grew at a slower pace of 15%.

In absolute terms, debit card swipes for March stood at 407 million almost half of ATM withdrawals at 891

million. At a lower base, debit card payments for merchant transactions have gone up more than 250%

between March 2019 and 2016.

RBI directs banks to enhance housing loan limits for eligibility under priority sector lending

Reserve Bank of India (RBI) has directed banks to enhance the housing loan limits for eligibility under

priority sector lending (PSL) to Rs 35 lakh in metropolitan centres (with population of ten lakh and above)

and Rs 25 lakh in other centres.







In order to bring the RRBs and SFBs at a level playing field with other Scheduled Commercial Banks, it has

now been decided to enhance the housing loan limits for eligibility under PSL.

RBI asks NBFCs with over Rs 5,000 cr assets to appoint chief risk officer

With crisis engulfing the non-banking financial company (NBFC) sector, the Reserve Bank of India (RBI)

asked finance companies with asset size more than Rs 5,000 crore to appoint a chief risk officer (CRO),

who will function ‗independently to ensure the highest standards of risk management‘.

RBI publicized draft circular on “liquidity risk management for NBFCs “

The Reserve Bank of India (RBI) has introduced the “Liquidity Risk Management Framework for Non-

Banking Financial Companies and Core Investment Companies” for public comments by June 14, 2019.

The eligible entities for this draft framework are all deposit-taking NBFCs; non-deposit taking non-banking

financial companies (NBFCs) with an asset size of over Rs 100 crore and all core investment companies

(CICs) registered with RBI.

The 15th Finance Commission Held A 2-Day Meeting With RBI And Banks & Financial Institutions And

Renowned Economists

The 15th Finance Commission will have meetings with the Reserve Bank of India (RBI), banks and financial

institutions in Mumbai.

The Commission headed by Chairman N K Singh will include all members and senior officials.

Bank credit to infra sector grows 18.5% in FY19: RBI data

Bank credit to infrastructure sector grew by 18.5 per cent to Rs 10.55 lakh crore as of 2018-19, the highest

since 2012-13 fiscal, RBI data showed.

Outstanding bank credit to the sector was Rs 8.91 lakh crore as at March 2018.

Nandan Nilekani-led panel on digital payments submits report to RBI

A Reserve Bank-appointed committee headed by Aadhaar architect Nandan Nilekani submitted its

suggestions on promoting digital payments to Governor Shaktikanta Das.

In January, the Reserve Bank of India had set up the five-member panel on deepening digital payments with

a view to encouraging digitisation of payments and enhance financial inclusion through digitisation.

RBI formed two separate 6 member panels to strengthen the sale of stressed corporate assets and housing loan

portfolios

Reserve Bank of India(RBI) has formed two separate 6 member panels to strengthen the sale of stressed

corporate assets and housing loan portfolios.

The six-member task force on the development of the secondary market is headed by its chairperson, T. N.

Manoharan, Chairman of Canara Bank and will submit its report by the end of August 2019.

Panel for housing loan securitization is headed by Bains and Co. advisor, Harsh Vardhan.

RBI Central Board meets at Chennai: Board decides to create a specialised supervisory and regulatory cadre

within the RBI

The Reserve Bank of India's (RBI) Central Board met today in Chennai under the Chairmanship of

Shaktikanta Das, Governor, Reserve Bank of India. This was the 576th meeting of the Central Board.

The Board reviewed the current economic situation, global and domestic challenges and various areas of

operations of the Reserve Bank.







Among other important matters, the Board discussed the Medium Term Strategy document, covering, inter-

alia, the Mission Statement and the Vision Statement.

RBI has published „Payment and Settlement Systems in India: Vision 2019 – 2021‟ to promote innovation,

cyber-security, financial inclusion

The Reserve Bank of India (RBI) released its statement on „Payment and Settlement Systems in India:

Vision 2019–2021‟, which outlined the measures that the central bank will undertake to foster innovation,

cybersecurity, financial inclusion, customer protection, and competition.

The Payment Systems Vision 2021 envisages achieving a „highly digital‟ and „cash-lite‟ society through the

goalposts of competition, cost-effectiveness, convenience, and confidence,

Banks can use Aadhaar for KYC with customer's consent, says RBI

Banks can use Aadhaar for KYC verification with the customer's consent, the Reserve Bank said as it

updated its list of documents eligible for identification of individuals.

The RBI specifies Know Your Customer (KYC) norms to be followed by banks and other entities regulated

by it for various customer services, including opening of bank accounts.

RBI tweaks norms on VRR investment by FPIs

The Reserve Bank of India fixed the investment limit at Rs 54,606.55 crore for foreign portfolio investors

(FPIs) under the voluntary retention route (VRR), which allows to park funds in both government securities as

well as corporate debt.

VRR for investments by FPIs was introduced on March 1. Limits for investment in debt by FPIs were offered

for allotment 'on tap' during the March 11-April 30 period.

RBI extends timing for fund transfer through RTGS till 6 pm from Jun 1: RBI

Timings for fund transfer through RTGS have been extended by one-and-a-half hours to 1800 hrs for the

general public from June 1.

Under Real Time Gross Settlement (RTGS) System, there is a continuous and real-time settlement of fund-

transfers, individually on a transaction by transaction basis (without netting).

The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted

through RTGS is Rs 2 lakh with no upper or maximum ceiling.

It has been decided to extend the timings for customer transactions (initial cut-off) in RTGS from 4:30 pm to

6:00 pm. The extended window for RTGS will be applicable from June 1.

Paytm collaborated with Citibank to launch its 1st credit card called „Paytm First Card‟

The digital payments company Paytm has collaborated with Citibank and launched its 1st credit card called

„Paytm First Card„.

This is the first card of its kind launched in India by the American card company, which has similar exclusive

partnerships across sectors in the US.

SBI‟s new rules on saving accounts and short-term loans effective from May 1

India‘s largest bank State Bank of India (SBI) has moved to a new interest rate regime on large savings

account deposits with balance above Rs 1 lakh as well as short-term loans like overdraft and cash credit.

In March 2019, SBI has announced that it will link its interest rate on large savings account deposits and short

term loans to RBI‘s repo rate which would be effective from May 1, 2019.







LIC HFL launches UDYAM-a skilling centre for marginalized youth in Bangalore

With an objective to empower youths of this country, LIC Housing Finance Ltd (LIC HFL) has launched

„UDYAM‟, a skilling centre in Bangalore for marginalized youth. It has been launched in association with

Lok Bharti Education Society, the implementing partner.

Commenting on UDYAM, Managing Director & CEO of LIC Housing Finance Ltd, Vinay Sah said "It is an

important part of our Corporate Social Responsibility (CSR) whereby along with our implementing partner

we will skill the youth to be enterprising for livelihood.

Under UDYAM, Centres of Excellence (COE) has been started in Delhi and Bangalore and later on be

expanded to other cities."

The Asian Development Bank (ADB) today launched the Action Plan for Healthy Oceans and Sustainable Blue

Economies for the Asia and Pacific region.

ADB President Takehiko Nakao said at the launching programme of the action plan on the sidelines of the

52nd

Annual Meeting of ADB‘s Board of Governors in Fiji.

―The prosperity of our region depends on healthy oceans and sustainable development,‖ Takehiko Nakao said.

The action plan will support the efforts of ADB‘s developing member countries to achieve the Sustainable

Development Goals (SDGs), including SDG 14 Life Below Water.

Financing and technical assistance will be expanded for ocean health and marine economy projects to $5

billion from 2019 to 2024, including co-financing from partners.

YES Bank slips to 10th position in league table for most-valued banks

Private sector lender YES Bank has slipped to the 10th

position in the league table for most-valued banks. At

the start of the year, the bank was ranked 7th.

State-owned lenders Punjab National Bank (PNB), and Bank of Baroda (BoB) have managed to overtake

YES Bank, which shares tanked nearly 30 per cent on April 30 after posting an unexpected loss for the March

quarter.

SBI Card raised Rs. 700 crore from banks and financial institutions to grow above industry average

SBI Card raised Rs. 700 crore from various financial institutions including its parent SBI (State Bank of

India) in the 2nd half of FY19 (Financial Year) to grow above the industry average.

SBI Cards and Payment Services Pvt. Ltd (SBI Card) raised Rs. 100 crore from ICICI Securities Primary

Dealership Ltd, Rs. 250 crore from State Bank of India and Rs. 50 crore each from Canara Bank and Axis

Bank by issuing NCDs (Non Convertible Debentures) at 9.15% coupon.

SBI Card also raised additional Rs. 250 crore from Axis Bank through a coupon of 9.55%.

Max Life Insurance to mark 6th

of every month as Protection Day

Max Life Insurance Co Ltd ("Max Life"/"Company"), one of industry's foremost life insurance companies,

today announced that it will dedicate 6th

day of every calendar month as 'Protection Day' towards driving

awareness around the concept of financial protection.

Banks close FY19 with 13.24% credit growth, deposits up 10.03%

Banks closed fiscal 2019 with robust disbursals that rose in double-digits for the second year in row, after the

sub-5 per cent in FY17, which was the lowest in five decades.







According to the Reserve Bank data released Thursday, bank credit rose 13.24 per cent to Rs 97.67 lakh

crore for the fortnight to March 29, while deposits grew by 10.03 per cent to Rs 125.72 lakh crore during the

same period.

Nabventures launches maiden fund to back agri, food and rural start-ups

Nabventures, a subsidiary of NABARD, Monday announced its maiden fund to back agriculture, food and

rural start-ups.

The fund -- NABVENTURES Fund I -- with a proposed corpus of Rs 500 crore has a greenshoe option of Rs

200 crore and has received an anchor commitment from NABARD, Nabventures said in a release.

HDFC ERGO launches cover for vector borne diseases

HDFC ERGO General Insurance Company, India's third-largest non-life insurance provider in the private

sector, today announced the launch of 'Mosquito Disease Protection Policy'.

This new policy will cover an individual against common mosquito-borne diseases like Dengue Fever,

Malaria, Chikungunya, Japanese Encephalitis, Kala-azar, Lymphatic Filariasis and Zika Virus.

Airtel ties with HDFC Life, offers insurance with prepaid plan

Telecom operator Airtel on Monday said it has partnered with HDFC Life Insurance to introduce a prepaid

scheme with in-built life insurance term plan cover.

The new plan will come with Rs 4 lakh life cover from HDFC Life, Airtel said in a statement.

Airtel's new Rs 249 prepaid bundle will come with Rs 4 lakh life cover from HDFC Life along with 2GB

data, unlimited calls to any network and 100 SMS/day," the statement said.

HDFC ties up with IMGC for mortgage guarantee-backed home loan

HDFC Wednesday said it has partnered with India Mortgage Guarantee Corporation (IMGC) for a

mortgage guarantee-backed home loan.

Mortgage guarantee is a financial product which compensates lending institutions for losses that may arise if a

home owner defaults on a mortgage loan.

The risk of the home loan gets transferred from the bank/FIs to the mortgage guarantee company.

RBI slaps ₹1-cr fine on Nainital Bank

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1 crore on Nainital Bank for its

failure to fully automate the non-performing asset (NPA) identification process, despite specific directions

issued in this regard.

This penalty has been imposed in exercise of powers vested in the RBI under the provisions of the Banking

Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid direction issued

by the RBI.

This action is based on the deficiencies in regulatory compliance, and is not intended to pronounce upon the

validity of any transaction or agreement entered into by the bank with its customers,‖ the central bank said in

a statement.

SIDBI‟s pilot scheme for fintech NBFCs to boost digital lending







To give a fillip to digital lending, Small Industries Development Bank of India (SIDBI) has put together a

pilot scheme to extend financial assistance of up to ₹10 crore to new-age fintech non-banking finance

companies (NBFCs) engaged in financing small businesses and other income-generating activities.

HDFC Ergo and IBM to jointly setup data lab in India

To develop an automated real-time email-communication solution for customer queries and reduce turn-

around time on redressal.

General insurance company HDFC Ergo and technology major IBM have jointly set up a lab in India to run

deep analytics on customer data and subsequently develop customised solutions to improve business

efficiency and profitability.

IBC process helps recover Rs 70,000-crore bad loans in FY19: CRISIL

Not only is the recovery rate of the 94 cases resolved so far under the insolvency and bankruptcy code (IBC)

higher than the recoveries made through other mechanisms, the recovery rate is twice the liquidation value of

the all the 94 cases resolved, said a report by credit rating agency CRISIL.

The recovery rate for the 94 cases resolved through IBC by 2018-19 (FY19) is 43 per cent, compared with

26.5 per cent through earlier mechanisms. Moreover, Rs 70,000 crore has been recovered in FY19, which is

almost twice the figure recovered through the debt recovery tribunal, Securitisation and Reconstruction of

Financial Assets and Enforcement of Securities Interest Act, and Lok Adalat in 2017-18.

Bajaj Finserv offers insurance cover to local train passengers

Bajaj Finserv Friday said it has launched a specialised insurance cover for passengers travelling in local

trains in country's financial capital Mumbai.

The travellers will get an insurance cover of Rs 1 lakh against a payment of Rs 399 per annum, an official

statement said.

The 'Mumbai Local Train Cover' insurance policy was introduced through lending arm Bajaj Finance, and

will provide coverage in case of mishap during a train journey, it said.

HDFC Capital Advisors launches HeART initiative

HDFC Capital Advisors Ltd, a wholly owned subsidiary of HDFC, has announced the launch of its new

initiative termed 'HeART' that seek to promote technologies to make affordable housing more affordable.

The HDFC Affordable Real Estate and Technology (HeART) programme seeks to mentor, partner and invest

in real estate technology companies that drive innovation and efficiencies within the affordable housing

ecosystem, the company said in a statement

Tripura Gramin Bank tops in business among regional rural banks

The Tripura Gramin Bank (TGB), which has posted a net profit of Rs 56.89 crore in last fiscal (2016-17),

topped in business among the 56 regional rural banks (RRBs) in the country, the bank's chairman said here on

Thursday.

Supervised by United Bank of India (UBI), the TGB, one of India's 56 RRBs, has declared profit for the fifth

consecutive year, and the bank's current business volume rose to Rs 7,370 crore.

The TGB's per branch business has gone up to Rs 51.18 crore in the last fiscal against Rs 46.43 crore in the

previous period. Per employee business has also gone up to Rs 9.76 crore in 2016-17 against Rs 8.67 crore in

the previous period," TGB chairman Upendra Sabar told reporters.

Ola launches Ola Money SBI Credit Card







In a move to enrich the customer experience of millions of the homegrown ride hailing platform's users, Ola

has partnered the state-run SBI cards to launch Ola Money SBI Credit Card for the country's first such co-

branding initiative in the segment.

The card, which is powered by Visa, will be without any joining fees and provide seamless, flexible and

convenient payments to the car hailing platform's customers.

Ola is targeting 10 million Ola Money-SBI Credit Cards to be issued by 2022.

World Bank and CBA joined hands for World‟s first Blockchain Bond Transaction

The World Bank and the Commonwealth Bank of Australia (CommBank) have teamed up to enable recording

of secondary market bond trading using blockchain tech.

The institutions announced Wednesday that their successful recording of a secondary transaction for bond-i, a

blockchain-operated debt instrument, on a distributed ledger shows the ―vast potential‖ of the technology, and

marks the first bond to have both issuance and trading recorded on a blockchain platform.

Sebi allows mutual funds to invest in exchange traded commodity derivatives

Mutual funds can now invest in exchange traded commodity derivatives, except those on sensitive

commodities, according to SEBIi.

To boost participation of mutual funds in the commodities market, the watchdog has allowed them to invest in

Exchange Traded Commodity Derivatives (ETCDs) with certain restrictions.

In a circular, the regulator said that no mutual fund schemes can invest in physical goods except in 'gold'

through Gold Exchange Traded Funds (ETFs).

Karnataka Bank launches savings bank product for salaried class

Private sector lender Karnataka Bank launched a new savings bank product called “KBL SB Salary” for

salaried class with three variants of Executive, Prime and Classic.

―All these 3 variants of our KBL SB Salary Scheme are available for the Salaried People with a host of

Digitally Powered features and without any Minimum Balance Criteria

SBI ties up with FMCG arm of The Art of Living

The State Bank of India (SBI) has announced a strategic partnership with the FMCG arm of The Art of

Living — Sri Sri Tattva.

Under this partnership, YONO users can avail a discount of 15 per cent on the entire range of products

offered by Sri Sri Tattva such as food, personal care, healthcare, homecare, BYOGI apparels and Shankara

skincare products.

Sebi proposes framework for 'regulatory sandbox' for financial institutions

The Securities and Exchange Board of India (Sebi) on Tuesday proposed a framework for „regulatory

sandbox‟. The term is used to define live testing of new products and services on a small set of customers for

a limited period of time.

Typically, the regulatory provisions are relaxed during the testing period. The proposal on regulatory sandbox

comes days after the market regulator issued a framework for „innovation sandbox‟, which allows fintech

firms not regulated by Sebi to test their products and offerings.

ADB to provide USD 750 mn loan to India for railway track electrification project







Multilateral funding agency Asian Development Bank (ADB) has signed an agreement to provide USD 750

million equivalent in Indian rupee long-term financing to electrify railway tracks in India.

It is the largest single non-sovereign loan ever committed by ADB to Indian Railway Finance Corporation

(IRFC) to fund the railways track electrification project, ADB said in a release.

Corporation Bank launches „Corp SME Suvidha‟ for MSMEs

Corporation Bank recently launched „Corp SME Suvidha‟, a unique product for GST registered MSMEs at

its corporate office in Mangaluru. It was launched by PV Bharathi, Managing Director and CEO of

Corporation Bank, in the presence of Gopal Murli Bhagat, Executive Director and General Manager,

according to a press release.

According to the bank, the product offers a competitive interest rate structure in the industry and also has

various concessions beneficial for a developing entrepreneur. The product is said to have been designed as a

part of the bank‘s efforts to improve the services offered to MSMEs.

Standard Chartered partners with IBM to launch Trade AI Engine

Standard Chartered in partnership with IBM has launched the Trade AI Engine which will automate the

high-risk process of trade documentation.

It will enhance client experience through increased operational efficiency and strengthened operational

control.

This newly launched Trade AI Engine will replace the Traditional documentary trade consisting of millions of

data elements in paper-based that are reviewed through a largely manual process.

Srei Equipment Finance ties up with Oriental Bank of Commerce

Srei Equipment Finance, a wholly-owned subsidiary of Srei Infrastructure Finance, Monday said it has tied-

up with Oriental Bank of Commerce to offer loans for purchase of equipment under a co-lending

arrangement.

Under the arrangement, financing of construction, mining and allied equipment, medical equipment,

commercial vehicles and farm equipment will be covered.

Indian Overseas Bank bets big on „bank on wheels‟

Chennai-based public-sector lender Indian Overseas Bank (IOB) has launched „bank on wheels‟ in 14

districts spread across Tamil Nadu, Kerala and the Vijayawada region of Andhra Pradesh.

The facility will enable the public, especially senior citizens, to conveniently get doorstep banking facility

available at identified locations of the bank‘s lead districts.

The van will be accompanied by banking correspondent with a micro ATM inside to take care of services

such as account opening, enrollment of customers in Social Security Scheme, passbook printing, and other

financial inclusion activities.

HMSI partners with IDFC FIRST Bank to offer financing solutions

Honda Motorcycle & Scooter India (HMSI) has partnered with IDFC FIRST Bank to provide financing

solutions across the country.

The two partner have signed a memorandum of understanding (MoU) under which facilities like loans up to

100 per cent of vehicle cost, zero processing fee, down payment of Rs 999 and extended loan tenure of 48

months, among others will be offered to the two-wheeler maker's customers, HMSI said in a statement.

Facebook plans cryptocurrency 'GlobalCoin' launch next year







Facebook plans to launch its cryptocurrency by the first quarter of next year

The currency, which is being referred to internally as “GlobalCoin,” will reportedly be available in around a

dozen countries at launch, where it‘s expected to offer people affordable and secure payments without the

need for a bank account.

The world's first rideshare submarine by Uber

Uber has partnered with Australian tourist group Tourism Queensland to offer what it calls the world's first

rideshare submarine, scUber that promises to give you a memorable tour of the underwaters.

As explained on the official website, scUber will offer riders the opportunity to explore the Great Barrier Reef

in the shared vehicle. Each scUber ride is priced at USD 3,000 for two passengers.

Infosys completes acquisition of 75% in ABN AMRO Bank subsidiary Stater

IT services major Infosys has completed the acquisition of 75 per cent shareholding in ABN AMRO Bank's

wholly-owned Stater NV.

The country's second largest IT services firm had said it will acquire 75 per cent stake in Stater for 127.5

million euros (about Rs 989 crore). ABN AMRO continues to hold the remaining 25 per cent.

"This partnership strengthens Infosys' position as a leading technology and business process management

provider across the mortgage services value chain, improving experience and operational efficiencies..."

Infosys said in a statement Friday.

HDFC group most valuable domestic biz house, overtakes Tatas in m-cap

Financial services conglomerate HDFC group has become the most valuable business house in the country,

surpassing Tatas, with the cumulative market valuation of its five listed companies surging Rs 10.40 trillion.

While HDFC group has five listed firms - HDFC Ltd, HDFC Bank, HDFC Standard Life Insurance Company,

Gruh Finance Ltd and HDFC Asset Management Company- Tatas have nearly 30 listed companies on the

bourses.

HDFC Bank with a market capitalisation of Rs 5.72 trillion is the country's third most valuable firm after TCS

(Rs 7.16 trillion) and RIL (Rs 7.09 trillion).

Doordarshan souvenir store available on Amazon

As part of its efforts to re-establish Doordarshan as "the channel of India" and to help viewers savour the

nostalgia of its famous shows and serials, the national broadcaster on Monday launched its souvenir store on

an e-commerce portal Amazon India.

"Doordarshan has always been the 'home' for Indian television viewers. With modest beginnings in Delhi on

September 15, 1959, Doordarshan continues to be the channel for and of the citizens of India," an official

release said.

Standard Life plans to sell 1.78% stake in HDFC Life Insurance

Standard Life, the joint-venture partner in HDFC Life Insurance, plans to sell 1.78 per cent stake (36 million

shares) in the life insurance firm, at a floor price of Rs 390 via an offer for sale (OFS). The stake sale could

fetch the JV partner Rs 1,400 crore on full subscription.

Co-location: NSE moves Securities Appellate Tribunal against Sebi rulings

The National Stock Exchange moved the Securities Appellate Tribunal challenging Sebi's rulings against it

in the co-location case, according to an official.







A total of three petitions have been filed against the rulings of the market regulator, which had also directed

the bourse to disgorge profits worth over Rs 1,000 crore.

The capital markets regulator has further ordered the exchange to disgorge around Rs. 1,000 crore that is, Rs.

624.89 crore plus 12% interest from April 1, 2014 for its alleged failure to exercise proper due diligence while

offering collocation facility thereby affecting market fairness and integrity.

Bharti AXA General to sell two-wheeler policies via WhatsApp

Bharti AXA General Insurance will sell policies through social media messaging platform WhatsApp and

has tied up with web aggregator Wishfin Insurance for speedy delivery of two-wheeler cover.

Bharti AXA General Insurance, a joint venture between Bharti Enterprises and global insurance firm AXA,

will sell the policies on the website of Wishfin's insurance arm Wishpolicy.

Paytm launches recurring payments service for merchants

In order to take care of the requirement of the businesses, Paytm Payment Gateway offers the Software

Development Kits (SDKs), Developer APIs and secure checkout solutions Paytm has launched recurring

payment (auto pay) service for merchants that are working on a digital subscription model. The move will

allow the subscription-based businesses to collect payments from their subscribers effortlessly.

The auto pay service is targeted at people who use Paytm for bill payments, content subscription, grocery

purchases, membership fees, housing society payments etc. The service is being offered as an additional mode

of payment other than credit/debit cards, internet banking and other Paytm proprietary instruments.

PNB Housing to raise $1 bn from foreign mkts in one or more tranches

PNB Housing Finance will raise up to USD 1 billion (around Rs 6,954 crore) from foreign markets, and

additional Rs 10,000 crore by issuing bonds.

The board meeting scheduled for May 9 will consider approval of "fund raising by way of external

commercial borrowings up to USD 1 billion in one or more tranches", PNB Housing Finance said in a

regulatory filing.

The board will also consider the issuance of secured and unsecured non-convertible debentures aggregating

up to Rs 10,000 crore in tranches.

BSNL launches 'Bharat Fibre' broadband service in Pulwama

State-owned telecom firm BSNL has become the first operator to start optical fibre-based high-speed

broadband service in Pulwama with launch of 'Bharat Fibre'.

"This is the first such FTTH (fibre-to-the-home) service deployment in the (Kashmir) Valley under this

unique revenue share model. Since the Bharat Fibre services are provided on the optical fibre right up to the

customer premises, reliable and high-speed internet services are delivered to the customers," BSNL Director

(Consumer Fixed Access) Vivek Banzal said in a statement.

Huawei overtakes Apple, becomes 2nd biggest smartphone maker in the world

Huawei Technologies Co. overtook Apple Inc. to claim the No. 2 spot in smartphones in the first quarter,

moving a step closer to its avowed ambition of displacing Samsung at the top of the market.

The networking giant, shrugging off a barrage of accusations that it aids Chinese espionage (which it‘s

repeatedly denied), grew shipments 50 percent from a year earlier, research firm IDC estimates. It was the







only name in the top 4 that managed to expand volumes as the overall market slid for the sixth consecutive

quarter.

BSNL partners with Google to expand WiFi footprint

On the occasion of World Telecom Day , state-run telecom major BSNL has partnered with Google to

increase access to its WiFi footprint in the country.

With the launch of this service, people across the country will be able to enjoy BSNL's free WiFi services.

This initiative will allow customers use BSNL's high speed internet services on WiFi.

FSSAI allows small organic growers to sell produce without certification till 2020

Food safety regulator FSSAI has permitted small organic producers, having an annual turnover of over Rs 12

lakh, to sell their produce directly to end consumers without certification till April 2020, but will not be able

to use 'Jaivik Bharat logo' on their products, a latest report says.

National artificial intelligence unit stuck for lack of anchor department

It was reported that the NITI Aayog had circulated a Cabinet note, asking for Rs 7,500 crore for three years to

set up an AI framework. Last year, four panels set up by MeitY evaluated the use of AI for citizens, such as

setting up a data platform, skilling and reskilling, research and development, and examining the challenges

involving legal, regulatory, ethical and cybersecurity aspects.

According to the proposal, the funding would be used to set up five institutes or centres of research excellence

(CORE), 20 international centres for transformational AI (ICTAI), along with AIRAWAT, a cloud computing

platform that can be accessed by anyone. It is estimated that AI will add $957 billion to India's GDP by 2035,

boosting India's annual growth by 1.3 percentage points.

Facebook chooses London as base for WhatsApp payments: Report

Facebook will launch WhatsApp Pay from London before it rolls out digital payments in India.

WhatsApp, which has1.5 billion users globally, will hire nearly 100 people in London to focus on the digital

payments service and additional operations staff would be hired in Dublin.

Reliance Industries buys British toy retailer Hamleys for about Rs 620 cr

Mukesh Ambani-led Reliance Industries (RIL) will acquire British toy retailer Hamleys for a cash

consideration of £67.96 million (about Rs 620 crore).

It is currently owned by Chinese fashion conglomerate C Banner International, which had acquired it for 100

million pounds in 2015. Hamleys started with a single-store shop, Noah's Ark, in 1760. It now has 167 stores

across 18 countries. Besides the UK, it has stores in China, Germany, Russia, India, South Africa and West

Asia.

NHB gives nod to DHFL to divest stake in Aadhar Housing Finance

Dewan Housing Finance (DHFL), has received approval from the National Housing Bank to sell its entire

stake of 9.15% in Aadhar Housing Finance to Blackstone‘s arm.

Mastercard to invest $1 billion in India over five years

Mastercard announced a $1 billion investment in India over the next five years aimed at converting India

into a vital node in the company‘s infrastructure, and also to continue business expansion.

About $350 million of the total amount would be invested in setting up a local payments processing center as

per the Reserve Bank of India‘s mandate to store all payments data locally.







June 2019 – Banking, Finance & Economy Current Affairs

MAX LIFE INSURANCE LAUNCHED „MAX LIFE SMART TERM PLAN‟

Max Life Insurance Company Limited, one of the country‘s leading life insurance companies, launched customizable

‗Max Life Smart Term Plan‘. It will offer customers the flexibility to customize their own protection solution through

the selection from a wide range of benefits and features.

It will provide options of choosing from multiple premium payment term- Single payment, payment for limited term of

5, 10, 12 and 15 years in addition to the ‗pay till 60‘ and regular pay options.

IDBI BANK AND TATA AIG SIGNED BANCASSURANCE CORPORATE AGENCY AGREEMENT

Industrial Development Bank of India (IDBI) has signed a bancassurance agreement with Tata AIG General Insurance

Company Ltd to provide Tata AIG‘s suite of P&C (Property and Casualty (insurance) products to its customers.

Tata AIG‘s products will now be available in IDBI bank‘s 20 million customer base spread across its 1,850-plus

branches.

FLIPKART REVAMPS MSME SELLER FINANCING PROGRAMME „GROWTH CAPITAL‟

E-commerce firm Flipkart has revamped its Micro, Small and Medium Enterprises (MSME) seller financing programme

‗Growth Capital‘ in order to empower MSMEs across the country. The program enables financial inclusion and

independence for MSMEs who operate online.

The changes will allow more than one lakh sellers to avail credit at competitive interest rates from 10 Non-Banking

Financial Companies (NBFCs) and banks with an approval time of one day and disbursal into the sellers bank accounts

within 48 hours.

NHB ISSUED STRICTER NORMS ON HFCS‟ CAPITAL ADEQUACY RATIOS

The National Housing Bank (NHB) has tightened the norms on leverage and capital adequacy ratio for Housing Finance

Companies (HFCs). It mandated the HFCs to reduce their total borrowings in a phased manner to not more than 12

times( at present 16 times) of their Net-Owned Funds (NOF) as on March 31, 2022.

Life Insurance Corporation (LIC) Housing Finance is the only HFC to have the highest leverage ratio of 14 times of

NOF.

CANARA BANK UPDATED THE RULES FOR CASH DEPOSITS AND WITHDRAWALS

Canara Bank has issued new rules for its customers regarding cash deposits and withdrawals effective from July 1,

2019. The customers of the bank can deposit cash in Savings bank account up to Rs 50,000 for free only thrice a month

and the fourth transaction will be charged.

This is done to encourage digital transactions and it coincides with transaction charges on National Electronic Funds

Transfer (NEFT) and Real Time Gross Settlement (RTGS) being waived off complying with Reserve Bank of India‘s

guidelines from July 1, 2019.

FEDERAL BANK RAISES RS 300 CRORE THROUGH A PRIVATE PLACEMENT OF BASEL III COMPLIANT

TIER II BONDS

Kochi based Federal Bank announced that it has raised Rs 300 crore through Basel-III compliant bonds for improving

their risk management techniques and to address the growing risks.

PAYMENTS RELATED DATA TO BE STORED ONLY IN INDIA: RBI

The Reserve Bank of India (RBI) in its frequently asked questions (FAQ) section stated that the data related to payment

transactions must be stored in systems of the country and if any information is processed abroad, it should be deleted

from their systems and brought back to India not later than one business day or 24 hours from the payment processing,

whichever is earlier.

The clarification was sought by the Payment System Operators (PSOs) on the issue of data localization.







GOVERNMENT LOWERS INTEREST RATES ON SMALL SAVING SCHEMES BY 0.1% FOR SEPTEMBER

QUARTER

The schemes include Public provident fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra(KVP),

Sukanya Samriddhi Account, Senior Citizens Savings Scheme (SCSS).

PPF&NSC: For the July-September quarter, PPF and National Savings Certificate will fetch an annual interest rate of

7.9% as compared to 8% earlier.

KVP: Kisan Vikas Patra will yield 7.6 percent with a maturity of 113 months. At present, the interest rate on KVP is 7.7

percent and maturity is 112 months.

The girl child savings scheme: Sukanya Samriddhi Account will offer 8.4 percent from 8.5 percent.

SCSS: Senior Citizens Savings Scheme will offer 8.6 percent from 8.7percent.

Term deposits of 1- 3 years will offer an interest rate of 6.9 percent will be paid quarterly, while the five-year quarterly

pegged at 7.7 percent and for recurring 7.2 percent from the existing rate of 7.3 percent.

RBI RELAXED THE LEVERAGE RATIO (LR) FOR BANKS TO HELP BANKS EXPAND LENDING

The RBI (Reserve Bank of India) relaxed the leverage ratio (LR) for banks in a bid to help them expand their lending

activities. The leverage ratio (LR) reduced to 4% for Domestic Systemically Important Banks (DSIBs) and 3.5% for

other banks with effective from October 1, 2019.

$250-M LOAN PACT SIGNED BY INDIA AND WORLD BANK FOR REBUILD KERALA INITIATIVE

The Government of India, State Government of Kerala and World Bank signed a loan agreement of $250 million (Rs

1,725 crore) for the Kerala Resilient Programme.

INDIA SIGNS $250 MILLION WORLD BANK LOAN TO DEVELOP RAJASTHAN‟S ROADS AND HIGHWAYS

The Government of India, Government of Rajasthan and the World Bank signed a $ 250 Million Loan Agreement for

Phase II of Rajasthan State Highways Development Project.

FOREX RESERVES OF INDIA INCREASED TO A RECORD HIGH OF $426.42 BILLION

As per the data from the apex bank, the Reserve Bank of India (RBI), Foreign Exchange Reserves (Forex/ FX Reserves)

of India reached a lifetime high of $426.42 billion after it was increased by $4.215 billion in the week to June 21, 2019.

The reason for the hike in reserve was due to an increase in Foreign Currency Assets (FCA).

Till date, the highest Forex reserves were recorded in the week to April 13, 2018, accounting to $426.028 billion.

INDIA AND WORLD BANK SIGN USD 400M LOAN AGREEMENT TO ELIMINATE TB

The World Bank and the Government of India signed a loan agreement of $400 Million for the Program Towards

Elimination of Tuberculosis(TB), which kills approximately half a million people in India every year. The program will

cover nine States of India.

It will also support the government‘s National Strategic Plan to end TB in India by 2025.

INDIA INKS LOAN PACT WORTH OF $328M WITH WORLD BANK FOR ANDHRA PRADESH

The World Bank, Government of India and State Government of Andra Pradesh signed a loan agreement worth of $328

million with the World Bank (WB) for improving health services of Andhra Pradesh.

RBI SETS AVERAGE BASE RATE AT 9.18% FOR NBFC-MFI BORROWERS FOR THE QUARTER BEGINNING

JULY 1, 2019

The Reserve Bank of India set an average base rate of 9.18% for Non-Banking Financial Companies (NBFCs) and

Micro Finance Institutions (MFIs) to be charged from their customers. It will be charged for the quarter beginning July

1, 2019.

INDIAN CRYPTO EXCHANGE KOINEX SHUTS DOWN ITS OPERATION

India‘s Largest Cryptocurrency Exchange, Koinex (Mumbai) Terminating Its Digital Asset Trading Services And Other

Crypto-Related Operations Citing Regulatory Uncertainty And Disruption.







RBI ISSUED GUIDELINES FOR SETTING UP OF AN FBAS FOR ADMINISTERING “SIGNIFICANT

BENCHMARKS”

The Reserve Bank of India (RBI) has issued a regulatory framework for setting up of financial benchmark administrator

(FBA) for administering ‗significant benchmarks‘ in the markets for financial instruments.

It means any benchmark notified by the central bank taking into consideration its use, efficiency, and relevance in

domestic financial markets and the benchmarks administered outside India do not fall under the norms

RBI RECOMMENDS COMMERCIAL BANKS TO ADOPT EDUCATION LOAN SCHEME

India‘s central banking institution, The Reserve Bank of India (RBI) has advised all Scheduled Commercial Banks to adopt

Education Loan Scheme which is formulated by Indian Banks‘ Association (IBA).

. Loan up to Rs 10 lakh for study in India and upto Rs 20 lakh for study abroad.

Collateral free loans upto Rs 7.5 Lakh under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).

No Margin for a loan up to Rs 7.50 Lakh.

Repayment period of 15 years.

MOBIKWIK PARTNERED WITH MAX BUPA TO LAUNCH „SHAMPOO-SACHET‟ HEALTH PLAN

MobiKwik, a mobile payments service provider, partnered with health insurer Max Bupa to launch ―shampoo-sachet‖

concept in the insurance sector. It will offer mini medical insurance products with premiums as low as Rs 20. The

partnership enables financial inclusion by making pocket size health insurance solutions available through the

Mobikwik platform.

ORACLE LAUNCHES CRIME MITIGATION SOLUTION FOR SMALLER BANKS

A multinational software firm based in the United States, Oracle has introduced a new tool that will help small & mid-

sized banks to tackle fraud.

The Oracle Financial Services ―Anti Money Laundering Express Edition(AMLXE)‖ is designed to detect, investigate,

and report suspected money laundering and terrorist financing activity.

RBI PANEL LED BY U.K. SINHA SUGGESTS RS.5,000 CRORE STRESSED ASSET FUND FOR MSMES

The Reserve Bank released the report of the expert committee under former SEBI (Securities and Exchange Board of

India) chairman U K Sinha on measures for the economic and financial sustainability of the MSMEs (Micro, Small and

Medium Enterprises).

WILFUL DEFAULTERS IN STATE-RUN BANKS INCREASED BY 60% IN 5YEARS

Finance Minister Nirmala Sitharaman stated that the number of wilful defaulters in nationalized banks has risen 60% in

five years to March 2019.

The figure stood at 8,582 at the end of FY19(fiscal year) against 5,349 at the end of FY15.The silver lining is about

Rs.7,600 crore has been recovered from those defaulters.

WORLD BANK COMMITS $31.58 MN LOAN FOR UTTARAKHAND PUBLIC FINANCIAL MANAGEMENT

STRENGTHENING PROJECT

The Government of India, the State Government of Uttarakhand and the World Bank signed a tripartite Loan Agreement

of $31.58 million (about Rs 221 crore) for Uttarakhand Public Financial Management Strengthening Project. This will

help improve the State‘s ability to manage its Financial Systems and lead to Better Utilization of Development

Resources.

RBI LAUNCHES NEW COMPLAINTS PORTAL FOR FILING ONLINE COMPLAINTS AGAINST BANKS, NBFCS

The Reserve Bank of India Governor Shaktikanta Das has launched a Complaint Management System (CMS) for

lodging complaints against banks and NBFCs (Non-Banking Financial Companies) on its website. The online portal

aims at improving customer experience in timely redressal of grievances.

GOVERNMENT OF JHARKHAND TO GET $147 MILLION LOAN FROM WORLD BANK







To provide basic urban services to the people and help improve the management capacity of the urban local bodies

(ULBs) in Jharkhand, the World Bank approved a $147 million loan agreement to the state.

MARUTI SUZUKI INKS PARTNERSHIP WITH BOB FOR DEALER FINANCING

Automobile manufacturer in India, Maruti Suzuki signed ‗Preferred Financier‘ MoU (Memorandum of understanding)

with public sector Bank, Bank of Baroda (BOB) to improve credit for dealership inventory financing.

TWO-WHEELER LOAN NAMED 'SABSE KHAAS LOAN' LAUNCHED BY L&T FINANCE

Indian multinational conglomerate, L&T Finance, a subsidiary of L&T Finance Holdings, launched 'Sabse Khaas Loan'

for two-wheeler customers. Borrowers can choose 3different EMI periods– 6, 12 and 18 months with the interest rates

between 7.99 percent and 8.99 percent.

ADB APPROVED $350 MILLION LOAN FOR CHHATTISGARH ROAD IMPROVEMENT PROJECT

Asian Development Bank (ADB) approved $350 million loan to rehabilitate and upgrade two state highways and 23

major district roads totaling about 850 kilometers in Chhattisgarh. It will improve the connectivity and access to basic

services and livelihood opportunities in the state. The total cost of the project is $521.69 million

FITCH CERTIFIED LONG-TERM RATINGS TO SIX BANKS AT 'BBB-' WITH STABLE OUTLOOK

International rating agency Fitch Ratings certified long-term Issuer Default Ratings (IDRs) to six banks namely State

Bank of India(SBI), Bank of Baroda(BOB), Punjab National Bank(PNB), Bank of Baroda (BOB), Canara Bank and

Bank of India(BOI) with 'BBB-' a stable outlook. The rating of IDBI Bank's long-term IDR was certified at 'BB+'.

PRICES OF SGBS FOR 2019-20 FIXED AT RS 3,196 PER GRAM

The Government has fixed the price of Sovereign Gold Bonds (SGBs)-Series I for 2019-20 at Rs 3,196 per gram with

settlement date June 11, 2019.

They will be opened for subscription from June 03 to June 07, 2019. In consultation with RBI, the Government has

decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment

is made through digital mode.

BANK FRAUDS REACHED UNPRECEDENTED RS 71,500 CRORE IN 2018-19

The Reserve Bank of India (RBI) has reported that bank frauds have been reached to Rs 71,500 crore in 2018-19 with

over 6,800 cases. In 2017-18, 5,916 cases were reported by banks which involved Rs 41,167.03 crore.

RBI's data reported that in last 11 fiscal years, 53,334 cases of fraud were reported by banks involving the amount of Rs

2.05 lakh crore.

ICICI BANK LAUNCHES CENTER IN BENGALURU EXCLUSIVE FOR MSME

Industrial Credit and Investment Corporation of India (ICICI) launched a dedicated center in Bengaluru to provide hazel

free services to small business owners and startups.

The center provides various services which include working capital loans of up to Rs. 20 crore, business loans (based on

GST returns) of up to Rs. 1 crore, instant overdraft facility of up to Rs. 15 lakh, extensive trade solutions and cash

management services, and others.

AN EDUCATIONAL PROGRAMME “DIGITAL SAKHI” LAUNCHED BY L&T FINANCIAL SERVICES IN

TAMILNADU

A non-banking financial institution L&T Finance Services Ltd. (Larsen & Toubro Financial Services) recently launched

―Digital Sakhi‖, an educational program aimed at financial inclusion of rural women in Villupuram District, Tamilnadu.

RBI FORMED PANEL LED BY NANDAN NILEKANI RECOMMENDED TO ROPE IN LOCAL RETAILERS TO

ACT AS CASH POINTS

The Reserve bank of India (RBI) formed panel led by Nandan Nilekani has recommended to rope in local retailers and

business correspondents to act as cash points in semi-urban centers.







These will act as the primary source of cash in semi-urban centers and will replace ATMs (Automated Teller

Machines).

TAMIL NADU GETS $287 MN LOAN FROM WORLD BANK FOR THE STATE‟S HEALTH SYSTEM REFORM

PROGRAMME

The Government of India, Tamil Nadu, and the World Bank signed a $287 million loan agreement for the state‘s Health

System Reform Programme in New Delhi. It is aimed to improve the quality of health care, reduce the burden of non-

communicable diseases (NCDs) and fill equity gaps in reproductive and child health services.

RBI AMENDED ITS NORMS ON BANKS' EXPOSURE TO LARGE BORROWERS

The Reserve Bank of India (RBI) amended its norms on banks' exposure to large borrowers with a view to reduce the

concentration of risk and align them with the global norms.

It will help in lending to Non-Banking Financial Companies (NBFC) in an effective way and invite scrutiny on the

structure of these entities.

NILEKANI-LED COMMITTEE RECOMMENDED 24×7 RTGS & NEFT, ELIMINATION OF ALL CHARGES

The Reserve Bank of India (RBI) appointed 5-member panel led by Nandan Nilekani recommended measures like

24×7 Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) facility, duty-free import of

Point-of-sales(POS) machines and elimination of all charges in order to promote digital payments in India

ASHOK LEYLAND PARTNERED WITH SURYODAY SMALL FINANCE BANK FOR VEHICLE LOANS

Ashok Leyland, Hinduja Group flagship firm, partnered with Suryoday Small Finance Bank to provide vehicle loans to

the customers of Ashok Leyland. The financing partnership agreement was signed for 3 years.

RBI REMOVED CHARGES FOR RTGS AND NEFT TRANSACTIONS

The Reserve Bank of India (RBI) has removed the charges levied on Real Time Gross Settlement (RTGS) and National

Electronic Funds Transfer (NEFT) transactions to boost digital payments.

At present, the banks levy minimum charges for transactions done through RTGS system for large-value (Rs 2 lakh and

above) instantaneous fund transfers and NEFT System for other fund transfers (below Rs 2 lakh).

RBI RAISED THE RETAIL INFLATION FORECAST FOR APRIL-SEPTEMBER FY20 TO 3-3.1%

RBI raised the Retail Inflation Forecast marginally to 3-3.1% for the first half of the current fiscal due to a rise in food

prices mainly vegetables.

It forecasted risks to inflation trajectory from monsoon uncertainties, an unseasonal spike in vegetable prices, crude oil

prices, financial market volatility, and fiscal scenario.

RBI RELEASES REPORT ON BENCHMARKING INDIA‟S PAYMENT SYSTEMS

The Reserve Bank of India (RBI) released a report on ―Benchmarking India‘s Payment Systems‖. It provides a

comparative position of the payment ecosystem in India.

RBI had undertaken an exercise of benchmarking India‘s Payment‘s system compared to the payment systems of

advanced economies, Asian economies and the BRICS nations

SECOND BI-MONTHLY MONETARY POLICY OF RBI 2019-20

The Reserve Bank of India (RBI) announced its second Bi-Monthly Monetary Policy Rates for 2019-20 in Mumbai on

June 6, 2019.

The three-day policy review meeting by the six members of Monetary Policy Committee (MPC) was headed by RBI

Governor Shaktikanta Das with the members Dr Chetan Ghate, Dr Pami Dua, Dr Ravindra H. Dholakia, Dr Michael

Debabrata Patra, Dr Viral V Acharya. In a rare 6-0 majority, Repo rate was reduced by 25 bps under the liquidity

adjustment facility (LAF) to 5.75 percent for third time in a row.

E-MONEY SHARE IN INDIA‟S PAYMENT SYSTEMS REACHES 21.5%: RBI







According to a new report ―Benchmarking India‘s Payment Systems‖, released by Reserve Bank of India(RBI) stated

that the share of e-Money in India‘s payment systems raise to 21.5 percent in 2017 from 0.8 percent in 2012.

India was next to Japan and the US in 2017 with respect to e-Money transactions of Rs 3,459 million.

TATA MUTUAL FUND LAUNCHED INDIA‟S FIRST MUTUAL FUND SIDE POCKET

Tata Mutual Fund launched the side-pocketing (segregated portfolio) option to set aside its troubled investment in

Dewan Housing Finance Limited (DHFL). They were created for 3 schemes namely Tata Corporate Bond Fund, Tata

Medium Term Fund, and Tata Treasury Advantage Fund.

This is India‘s first formal use of the side pocketing provisions which was introduced by the Securities and Exchange

Board of India (SEBI) in December 2018.

RBI TO CREATE FOREIGN EXCHANGE TRADING PLATFORM FOR RETAIL PARTICIPANTS

The Reserve Bank of India (RBI) announced to set up a foreign exchange trading platform for retail participants. This is

to create a market infrastructure that ensures fair and transparent pricing for users of foreign exchange like Small and

Medium Enterprises (SME) exporters & importers and individuals.

The trading platforms are developed by the Clearing Corporation of India Limited (CCIL) and are tested by the users

YES BANK CONDUCTS E-AUCTION FOR FOREST PRODUCE

Yes Bank has conducted the first e-auction of forest produce in Dhanora Mahasangh in Maharashtra under its Tech for

Change initiative where the bank work with the government and corporate to create technology-based solutions which

have a social impact. It is a joint effort of Yes Bank with its fintech partner, Sparsh Technologies.

FINCARE SFB, KOOKMIN BANK ADDED IN THE SECOND SCHEDULE OF RBI ACT

Fincare Small Finance Bank and Kookmin Bank have been included in the second schedule of the Reserve Bank of

India Act, 1934. Both banks can now broad-base its lines of funding and liquidity facilities.

They can issue certificates of deposits and get access to interbank borrowings at competitive interest rates.

BAJAJ FINSERV &MOTHERHOOD HOSPITALS INK PARTNERSHIP TO PROVIDE LIFE CARE FINANCE

FACILITY

Indian financial services company Bajaj Finserv inked partnership with Motherhood hospitals, a national network of

women &child hospital to provide Lifecare finance facility.

Through this partnership, patients at all motherhood hospitals can avail Life Care Finance (LCF) from Bajaj Finserv that

converts their medical bills into an EMI loan without interest.

RBI ISSUED FRESH PRUDENTIAL FRAMEWORK FOR RESOLUTION OF STRESSED ASSETS

The Reserve Bank of India (RBI) has issued new NPA guidelines ―Prudential framework for resolution of stressed

assets‖ to deal with bad loans, as the previous circular that was issued by RBI on Feb 12, 2019 rejected by Supreme

Court.The new framework will replace all the previous models.

The directions have been issued in terms of the provisions of Section 35AA of the Banking Regulation Act, 1949, for

initiation of insolvency proceedings against specific borrowers under the Insolvency and Bankruptcy Code, 2016 (IBC

FOREIGN EXCHANGE RESERVES OF INDIA INCREASED BY $1.8 BILLION TO $421.8 BILLION

As per the data of the Reserve Bank of India (RBI), the Foreign Exchange (Forex) Reserves of India increased by

$1.875 billion to $421.867 billion in the week ending May 31, 2019.

In the previous week, the forex reserves rose by $1.99 billion to $ 419.99 billion. The foreign currency assets rose by

$1.946 billion to $394.134 billion.

STATE BANK OF INDIA TO INTRODUCE REPO-LINKED HOME LOAN PRODUCT FROM JULY 1

State Bank of India (SBI) announced to introduce repo-linked home loan product from July 1, 2019. It has become the

first bank to offer this facility. It means any changes in the key interest rate by the central bank would be passed on

directly to the customers.







The home loans up to Rs 75 lakh will be priced at 2.65% over the repo rate of 5.75% resulting in the interest rate of

8.40%.

PAYTM PAYMENTS BANK AHEAD OF MAJOR BANKS IN DIGITAL TRANSACTION TARGET WITH 501.16

CRORE DIGITAL TRANSACTIONS

Paytm Payments Bank with 501.16 crore digital transactions for the financial year 2019-20 is ahead of major banks

including HDFC Bank, Industrial Credit, and Investment Corporation of India (ICICI) Bank and Punjab National Bank

(PNB) in digital transaction target set by the Ministry of Electronics and Information Technology (MeitY).

KOTAK MAHINDRA BANK WAS PENALIZED WITH RS 2 CRORE BY RESERVE BANK OF INDIA FOR NOT

MEETING OWNERSHIP RULES

Reserve Bank of India has penalized Kotak Mahindra Bank with Rs. 2 crores for not furnishing details about the

shareholding of its promoter and its plans for complying with stake dilution norms.

RBI has mandated the bank to reduce its promoter shareholding to 20 percent by December 31, 2018, and to 15 percent

by March 2022.

MAX LIFE INSURANCE COMPANY LAUNCHED 'MY PROTECTION QUOTIENT' TOOL

Max Life Insurance Company launched a unique proprietary tool named 'My Protection Quotient' (MyPQ) to ensure

financial protection in the country.

It had earlier launched 'India Protection Quotient' survey in association with Kantar IMRB to understand where India

stands with regards to life and term insurance ownership. It also has dedicated 6th of every month as ‗Protection day‘

and MyPQ was launched on Second protection day.

RBI EASED REGULATIONS FOR BSBD ACCOUNTS

Nation's apex bank Reserve Bank of India (RBI) has relaxed the regulations for Basic Savings Bank Deposit (BSBD)

Accounts aka "no-frills" accounts as a part of the financial inclusion drive.

BSBDA holders will get certain minimum facilities, free of charge.

SASHAKT COMMITTEE RECOMMENDS RBI'S CHANGES IN INTER-CREDITOR AGREEMENT (ICA)

FRAMEWORK

Sashakt Committee headed by Punjab National Bank non-executive Chairman Sunil Mehta has stated that the new

guidelines of RBI regarding the mandation of Inter-Creditor Agreement (ICA) framework is a right move to resolve

non-performing assets (NPAs or bad loans).

In the first week of June 2019, RBI has issued revised guidelines for resolution of stressed assets named "Prudential

framework for resolution of stressed assets", which has mandated the lenders to review the accounts within 30 days of

default and initiate a resolution plan or Insolvency and Bankruptcy Code (IBC) process before the default, among

others.

CENTRE HAS EXTENDED THE RS 1.6 BILLION AID TO NEPAL FOR REBUILDING EARTHQUAKE-HIT

HOUSES

The Indian government has extended the financial aid of 1.6 billion Nepalese rupees to Nepal for the rebuilding of

houses in Nuwakot and Gorkha districts, which were damaged in the devastating earthquake in 2015.

The cheque for the same was handed over by India‘s ambassador to Nepal Manjeev Singh Puri to Finance Secretary of

Nepal Rajan Khanal.

NPAS PLUNGED TO 9.30% IN FY'19, BELOW RBI ESTIMATE

As per the Crisil report, the overall non-performing assets (NPAs) stock has declined at a great pace to 9.3% in March

2019 in comparison to the 11.5% in March 2018.







This decline is more than the RBI's (Reserve Bank of India) estimate. This shows a positive sign of recovery from the

Non-performing asset load as the NPA ratio of both public and private sector banks showed a half-yearly decline, for

the first time since March 2015.

RBI FORMED A COMMITTEE HEADED BY VG KANNAN, IBA CHIEF TO REVIEW ATM PRICING

The Reserve Bank of India (RBI) constituted 6-member committee headed by VG Kannan, Chief Executive of Indian

Banks‘ Association (IBA) to review ATM pricing.

It will review the existing interchange fee and pricing structures to reduce prices for customers on Automated Teller

Machines (ATM) transactions with a broader objective to improve rural penetration of teller machines

A PENALTY OF RS.11.25 LAKH IMPOSED ON ZIPCASH, YES BANK BY RBI

The Reserve Bank of India slapped a monetary penalty Rs. 11.25 lakh each on Private sector lender ‗Yes Bank‘ and

Online Wallet Service, ‘ZipCash Card Services‘ for violating PPI (prepaid payment instrument) norms pertaining to

issuance and operation of PPIs.

IDBI BANK AND MAX BUPA SIGN BANCASSURANCE CORPORATE AGENCY AGREEMENT

Industrial Development Bank of India (IDBI) Bank and Max Bupa, a Standalone Health Insurer (SAHI) signed a

Bancassurance corporate agency agreement. For the first time, IDBI Bank became an on-boarded corporate agent for

Max Bupa under open architecture. It will also install ‗Infinity‘, a proprietary digital platform.

Through this, the customers of IDBI Bank can purchase the product of their choice instantly and access their policy

documents at the bank branch

EXIM BANK SIGNED $245 MILLION LOAN AGREEMENT WITH GHANA & MOZAMBIQUE FOR

AGRICULTURAL AND RAILWAY PROJECTS

The central bank of the country, the Reserve Bank of India (RBI) notified that Export-Import Bank of India (Exim

Bank) will provide Line of Credit (LoC) worth $245 million to Ghana and Mozambique for agricultural and railway

projects. The agreement is effective from June 3, 2019.

Under the LoC, the terminal utilisation period is 60 months after the scheduled completion date of the project.

ZESTMONEY IN PARTNERSHIP WITH DIGIT INSURANCE TO OFFER EMI INSURANCE

ZestMoney, a Bengaluru based digital lending startup, in partnership with Digit Insurance announced to offer EMI

(Equated Monthly Installment) insurance to the company's five million customers.

The aim of the partnership is to relieve its customers of debt in case of unforeseen circumstances.

EDELWEISS AND BANK OF BARODA TIED UP FOR MSME LOANS

Bank of Baroda (BoB) and ECL Finance, the flagship non-banking financial company of Edelweiss Group, signed an

agreement to form a strategic partnership to explore co-lending opportunities.

They will provide timely delivery of credit to customers at a significantly lower cost.

FUNDZBAZAR LAUNCHED 'SELFIEWALA KYC' FEATURE FOR FIRST-TIME MUTUAL FUND INVESTORS

FundzBazar, an online mutual fund investment platform launched by Prudent, has initiated 'Selfiewala KYC' feature for

the first-time mutual fund investors.

This feature allows the investors to carry out the IPV (In-Person Verification) by uploading a video and a selfie which in

turn speeds up the KYC process and saves time.

IRDAI HIKED THIRD PARTY INSURANCE PREMIUM FOR SMALL-MEDIUM CARS FROM JUNE 16, 2019

The Insurance Regulatory and Development Authority of India (IRDAI) hiked the Third Party (TP) motor insurance

premium for small and medium private cars by 12-12.5% for 2019-20. The rates are applicable from June 16, 2019.

TP premium for two-wheelers and heavy vehicles was also increased. These powers which are provided to IRDAI are

mentioned under Section 14 (2) (i) of the IRDA Act, 1999.







RBI ASKED BANKS TO GROUT ATMS TO A WALL, PILLAR, OR FLOOR IN ORDER TO INCREASE

SECURITY

The Reserve Bank of India (RBI) asked the banks to grout Automated Teller Machines (ATMs) to a wall, pillar, or floor

by September 30, 2019 in order to mitigate risks in ATM operations and increase security.

Exceptions were given to the ATMs installed in high secured premises. The measure was adopted by the RBI after the

recommendations made by the Committee on Currency Movement (CCM) under the chairmanship of DK Mohanty

which was formed in 2016.

AS PER RBI, BANK FRAUDS WORTH RS. 2.05 LAKH CRORE REPORTED IN THE LAST 11 YEARS

The central bank of the country, the Reserve Bank of India‘s (RBI) data revealed that 53,334 fraud cases worth Rs. 2.05

lakh crore hit the banks in India in the last 11 fiscal years i.e, between 2008-09 and 2018-19.

SEBI TIGHTENED RATING GUIDELINES TO ENHANCE STANDARDS

The Securities and Exchange Board of India (SEBI) issued stricter norms for rating agencies to enhance standards. This

move comes after a series of defaults at Infrastructure Leasing & Financial Services Limited (IL & FS) in 2018.

It introduced disclosure of rating sensitivities in its press releases. It will help the end-users to understand the factors

that would have the potential to impact the creditworthiness of the entity.

ADB SANCTIONS RS 1,650CR INFRA PROJECTS IN TRIPURA

The Asian Development Bank (ADB) has approved a project submitted by the Urban Development Department (UDD)

of Tripura amounting to Rs. 1650 crore for overall infrastructure development of seven districts headquarter towns of

Tripura.

The ADB will give 80 percent of 1650 crore as grant-in-aid and the State Government of Tripura will have to repay

back only 20 percent loan in due course of time.

AS PER RBI, DIGITAL TRANSACTIONS WILL RISE FOUR TIMES BY 2021

The Reserve Bank of India in its report "Payment and Settlement: The Plumbing in the Architecture of India‘s Financial

System", stated that the digital transactions till March 2019 witnessed tremendous growth and they will rise by four

times from Rs 2,069 crore in December 2018 to Rs 8,707 crore in December 2021. In 2018-19, total digital transactions

in volume terms recorded a growth rate of 58.8%.

JAMMU AND KASHMIR BANK BROUGHT UNDER RTI, CVC GUIDELINES

The Board of Directors (BoD) of Jammu & Kashmir Bank under the chairmanship of the bank's Interim Chairman and

Managing Director (MD) R.S.

Chhibber decided to bring the bank under Jammu and Kashmir (J&K) Right to Information (RTI) Act, 2009 and the

Central Vigilance Commission (CVC) guidelines with effect from June 17, 2019. The decision was taken after receiving

directions from the State Government, which owns 59% of the bank's shares.

NHA AND ICICI FOUNDATION SIGNED A MOU TO TRAIN 15,000 PERSONNEL UNDER AYUSHMAN BHARAT

SCHEME

The National Health Authority (NHA) and ICICI Foundation for Inclusive Growth signed a Memorandum of

Understanding (MoU) to train 15,000 state and district personnel and Pradhan Mantri Arogya Mitras to provide the

delivery of health services under Ayushman Bharat Scheme over a period of one year. It is aimed at capacity building of

health personnel at state.

RBI PANEL ON MSMES HEADED BY U K SINHA RECOMMENDED TO DOUBLE COLLATERAL-FREE LOANS

LIMIT TO RS 20 LAKH

The 8 member panel on Micro, Small and Medium Enterprises (MSMEs), constituted by the Reserve Bank of India

(RBI) in January 2019, headed by the former Securities and Exchange Board of India (SEBI) Chairman U K Sinha







submitted its report to RBI Governor Shaktikanta Das suggested doubling collateral-free loans for MSMEs to Rs 20

lakh from Rs 10 lakh.

The panel was formed to suggest long-term measures for the economic and financial sustainability of the MSME sector.

NHB ISSUED STRICTER NORMS ON HFCS‟ CAPITAL ADEQUACY RATIOS

The National Housing Bank (NHB) has tightened the norms on leverage and capital adequacy ratio for Housing Finance

Companies (HFCs). It mandated the HFCs to reduce their total borrowings in a phased manner to not more than 12

times( at present 16 times) of their Net-Owned Funds (NOF) as on March 31, 2022.

Life Insurance Corporation (LIC) Housing Finance is the only HFC to have the highest leverage ratio of 14 times of

NOF.

FLIPKART REVAMPS MSME SELLER FINANCING PROGRAMME „GROWTH CAPITAL‟

E-commerce firm Flipkart has revamped its Micro, Small and Medium Enterprises (MSME) seller financing programme

‗Growth Capital‘ in order to empower MSMEs across the country.

The program enables financial inclusion and independence for MSMEs who operate online.

MAX LIFE INSURANCE LAUNCHED 'MAX LIFE SMART TERM PLAN'

Max Life Insurance Company Limited, one of the country's leading life insurance companies, launched customizable

'Max Life Smart Term Plan'.

It will offer customers the flexibility to customize their own protection solution through the selection from a wide range

of benefits and features. It offers seven types of death benefits to customers to choose for their protection needs.

FEDERAL BANK RAISES RS 300 CRORE THROUGH A PRIVATE PLACEMENT OF BASEL III COMPLIANT

TIER II BONDS

Kochi based Federal Bank announced that it has raised Rs 300 crore through Basel-III compliant bonds for improving

their risk management techniques and to address the growing risks.

The bonds have the tenure of ten years with the coupon rate of 9.75 percent per annum.

THE US OVERTOOK CHINA AS INDIA‟S LARGEST GOODS TRADING PARTNER IN 2018-19

The United States (US) overtook China to become India‘s largest goods trading partner in 2018-19. Trade surplus of

India with the US declined to $16.8 billion from $21.2 billion for 2017-18.

DBS BANK REVISED INDIA‟S GDP FORECAST FOR FY20 TO 6.8% FROM 7%

DBS Bank in its report on the Indian economy revised India‘s Gross Domestic Product (GDP) forecast for the fiscal

year 2020 to 6.8% year-on-year (YoY) from 7% due to headwinds for exports amidst challenging trade outlook.

Inflation rate was estimated at 3.8% for FY20 against 3.4% of FY19.

SEBI SETS UP A WORKING GROUP HEADED BY NSE CLEARING LTD TO REVIEW MARGINS ON

DERIVATIVES

The Securities and Exchange Board of India (SEBI) framed a working group headed by NSE Clearing Ltd to review the

current framework of margins in the futures and options segment.

It will submit its recommendations to the Secondary Market Advisory Committee.

SKYLARK DRONES AND THROTTLE AEROSPACE SYSTEMS GET DGCA NOD TO FLY

The Directorate General of Civil Aviation (DGCA) gave its approval to Skylark Drones and Throttle Aerospace

Systems (TAS) of Bengaluru to launch its drones as they are compliant with the NP-NT (No permission – No take-off)

protocol under the ―Digital Sky‖ regulatory framework for drones, which came into effect on December 1, 2018.

NABCB GETS APAC CERTIFICATE FOR PERSONNEL CERTIFICATION BODIES IN SINGAPORE

The National Accreditation Board for Certification Bodies (NABCB), has got its international recognition for its

accreditation programme for personnel certification bodies.







It was held in Asia Pacific Accreditation Cooperation (APAC) Annual Meetings 2019 in Singapore.

NITI AAYOG PLANS TO CONVERT THREE-WHEELERS TO EVS BY 2023 AND 2-WHEELERS BELOW 150CC

BY 2025

National Institution for Transforming India (NITI) Aayog organized the first meeting with manufacturers and start-up

Electric Vehicle (EV) makers, during which NITI Aayog planned for the transition of three-wheelers by 2023 and two-

wheelers with an engine capacity less than 150 cc (Cubic Centimeter) by 2025 to full Electric Vehicles (EVs).

It asked the conventional two and three-wheeler makers to suggest concrete steps towards transition to electric mobility

keeping in mind 2025 deadline, within two weeks.

IRSDC SIGNED 2 MOAS TO RENOVATE 22 RAILWAY STATIONS

Indian Railway Stations Development Corporation (IRSDC) signed 2 Memorandum of Agreements (MoAs) on

‗Railway Station Redevelopment‘ for the renovation of 22 railway stations.

NATIONAL FREIGHT INDEX (NFI) LAUNCHED BY RIVIGO LOGISTICS

In order to bring transparency in the road-freight marketplace, an Indian technology company based in Gurgaon, Rivigo

which owns 3,000 trucks 5,000 drivers launched the National Freight Index (NFI) which will provide unrestricted

access of live freight rates for different lanes and vehicles across the country. Logistics account for nearly 14% of

India‘s GDP.

NTPC AND PGCIL SIGN MOU TO FORM A JOINT VENTURE TO ENTER POWER DISTRIBUTION BUSINESS

National Thermal Power Corporation (NTPC) and PowerGrid Corporation of India Limited (PGCIL) signed a

Memorandum of Understanding (MOU) to set up a Joint Venture (JV) the National Electricity Distribution Company

Limited (NEDCL).

It will undertake the business for distribution of electricity in distribution circles in various states and Union Territories

(UTs) and other related activities.

TECH MAHINDRA SIGNED A CONTRACT WITH AIRBUS FOR CABIN AND CARGO DESIGN ENGINEERING

Tech Mahindra, an information technology firm, entered into a multi-year contract with Airbus for cabin and cargo

design engineering.

The contract is aimed to capitalise on the specialised skills and competencies in growing cabin engineering business

over the next few years.

ACCORDING TO FIEO, IMPROVEMENT IN LOGISTICS, INFRASTRUCTURE WILL BOOST EXPORTS TO $1

TRILLION IN NEXT 3 YEARS

Federation of Indian Export Organisations (FIEO) has estimated that the focus of the government to improve logistics,

ease of doing business and modern trade infrastructure will boost exports of the country from current $535 billion to $1

trillion in the next 3 years.

INDIA THE LOWEST COST PRODUCER OF SOLAR POWER; BEATS CHINA, UK, US AMONG OTHERS

According to a report, ―Renewable Power Generation Costs in 2018‖ by the International Renewable Energy Agency

(IRENA), India leads in producing solar power at lowest cost globally and is far ahead of other nations in low average

production costs.

NAGALAND OCCUPIES THE TOP POSITION IN THE UNEMPLOYMENT RATE: NSSO SURVEY

According to the survey, ―The Periodic Labour Force Survey (PLFS) for 2017-18‖ by National Sample Survey

Organization (NSSO), there are huge variations among the states in terms of the unemployment rate. The overall

unemployment rate pegs at 6.1%.

CAD INCREASED TO 2.1% OF GDP

The Reserve Bank of India (RBI) stated that India‘s Current Account Deficit (CAD) increased to $57.2 billion or 2.1%

of the Gross Domestic Product (GDP) in FY19 as against 1.8% of 2018 which stood at $48.7 billion.







It was the highest in 6 years on due to higher trade deficit caused by high crude oil imports.

SUNDARAM FINANCE TO ACQUIRE STAKES OF ITS PARTNER BNP PARIBAS HELD IN TWO JVS

India‘s leading Non-Banking Financial Company(NBFC) Sundaram Finance Ltd (SFL) has announced that it set to

acquire the stakes held by BNP Paribas in their two joint venture (JV) companies for a total of around Rs 1,000 Cr.

INDIAN ECONOMY LOST ITS SPOT AS WORLD'S FASTEST GROWING ECONOMY TO CHINA

Indian economy lost its spot as the world's fastest-growing economy to China. As per Reuters survey, it registered 6.3%

annual growth in the January-March quarter, its slowest pace in six quarters.

China recorded a growth of 6.4% in the March Quarter. Indicators like automobile sales, rail freight, petroleum product

consumption, domestic air traffic and imports registered a slowdown in domestic consumption.

GOVERNMENT MET THE FISCAL DEFICIT TARGET OF 3.4% FOR FY 2018-19

Government has met the fiscal deficit target of 3.4% for the Financial Year 2018-19. The fiscal deficit stood at 3.39%

against the estimated rate of 3.4%. The data was released by the Controller General of Accounts (CGA).

It was met through a reduction in government spending, which also contributed to GDP growth slowing to 5.8% in the

fourth quarter of FY19

HORTICULTURE PRODUCTION REGISTERED AN UPWARD GROWTH AT 314.87 MILLION TONNE IN 2018-

19

Horticulture production registered a rise to 314.87 million tonne in 2018-19 which was 1.01% higher than horticulture

production in 2017-18. In the previous year, the output was 311.71 million tonnes.

The crop year in India is from July-June. The data was released by the Ministry of Agriculture in the Second Advanced

Estimate (2018-19) of area and production of various horticulture crops on May 31, 2019.

CSO-GDP GROWTH SLIPS TO 5.8% IN Q4 IN 2018-19

As per the data released by the Central Statistics Office (CSO), the rate of gross domestic product (GDP) growth in the

January-March quarter of 2018-19 decreased to 5.8% as compared to the forecast of 6.5%.

The economic growth rate for the full 2018-19 financial year stood at a 5-year low of 6.8% in comparison to 7.1%.

ONGC OVERTAKES IOC TO BECOME A MOST PROFITABLE PSU

India‘s top oil and gas producer, ONGC (Oil and Natural Gas Corporation) has become India‘s most profitable Public

sector undertaking after surpassing Indian Oil Corp (IOC) while Reliance has been India's most profitable company for

the fourth year in a row with its net profit of Rs 39,588 crore in FY19.

AS PER THE GFI STUDY, INDIA LOST $13 BILLION IN REVENUE COLLECTIONS DUE TO TRADE

MISINVOICING

According to a study by think-tank Global Financial Integrity (GFI), India lost $13 billion in revenue collections due to

trade misinvoicing in 2016. It amounted to 5.5% of total revenue collections.

The study estimated that the value of the trade gap for misinvoiced goods equaled to $74 billion or 12% of the country's

total trade of $617 billion in 2016

FDI IN SERVICES SECTOR ROSE BY 36.5% IN 2018-19

According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Foreign Direct Investment

(FDI) grew at 36.5% amounting to $9.15 billion in 2018-19.

Services sector comprises of finance, banking, insurance, outsourcing, R&D, courier, tech testing and analysis. In 2017-

18, FDI of the service sector was $6.7 billion.

WORLD BANK CUTS GLOBAL GROWTH FORECAST FOR 2019 TO 2.6% AND IT RETAINS INDIA‟S FY19

GROWTH FORECAST AT 7.5%

World Bank in its semiannual report ―Global Economic Prospect (GEP)‖ slashed global forecast for 2019 to 2.6% as

compared to 2.9% in January this year.







World Bank in its report ―Global Economic Prospects report‖ retained India‘s growth forecast at 7.5% for the next two

Fiscal years , FY2019 and FY20 (April 1, 2019 to March 31, 2020) as it also cuts the global economic expansion by

0.3%.

AAI (AIRPORTS AUTHORITY OF INDIA) SIGNS TECHNICAL ASSISTANCE PACT WITH BOEING

The National Airports body Airports Authority of India (AAI) signed technical assistance agreement with American

multinational corporate, Boeing to jointly develop a 10-year roadmap which will improve flexible use of airspace,

enhance communication, surveillance and help to maintain efficient aircraft operations.

IOCL, BPCL AND HPCL TO FORM A JOINT VENTURE FOR KANDLA-GORAKHPUR LPG PIPELINE

PROJECT

Indian Oil Corporation Limited(IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum

Corporation Limited(HPCL) signed an agreement to form a Joint Venture(JV) in New Delhi for laying the world‘s

longest Liquefied petroleum gas(LPG) pipeline ie 2757 Km from Kandla, Gujarat to Gorakhpur, Uttar Pradesh. IOCL

BPCL and HPCL will hold 50%, 25% and 25% equity holding in the JV Company respectively.

USA TERMINATED GSP BENEFITS FROM INDIA

US President Donald Trump signed a proclamation to withdraw Generalized System of Preferences(GSP) scheme on

$5.6 billion exports from India, effective from June 5, 2019.

GST COLLECTIONS CROSSED RS 1 LAKH CRORE MARK FOR THREE CONSECUTIVE MONTH

The Goods And Services tax collection for May 2019 is Rs 1,00,289 crore, however, this is lesser than Rs 1,13,865

crore collected in April, an all-time high since the rollout of GST in July 2017.

This is the third consecutive time for GST to cross Rs 1 Lakh. The revenue in May 2019 is 2.21% greater than the

monthly average of GST revenue in fiscal 2018-19.

DELHI METRO IS INDIA'S FIRST PROJECT TO RECEIVE POWER FROM WASTE-TO-ENERGY

Delhi Metro became India's the first ever project to receive power from a waste-to-energy plant.

The Delhi Metro Rail Corporation (DMRC) started receiving 2 MW power from a 12 MW capacity waste-to-energy

plant set up in Ghazipur, Uttar Pradesh.

CII UNVEILED NEW INDEX TO MEASURE FISCAL PERFORMANCE

Confederation of Indian Industry (CII) has launched a new Index to measure fiscal performance titled ‗Fiscal

Performance Index‘ (FPI).

It uses multiple indicators to assess the quality of budgets presented by the Centre and state governments. FPI has been

constructed using the United Nations Development Programme‘s (UNDP) Human Development Index methodology. It

comprises of 6 components. Read full details here:

INDIA SIGNED RS 300-CRORE DEAL WITH ISRAEL TO BUY MORE 100 SPICE BOMBS

The Indian Air Force (IAF) inked Rs 300-crore deal with the Israeli government to buy more than 100 SPICE bombs

(Balakot bombs).

The bombs were used to attack the Madrasa of Jaish-e-Mohammed in Balakot, Pakistan, on February 26, 2019. They

will be delivered in the next 3 months as the deal has been signed under emergency powers.

MOU SIGNED BETWEEN MCA AND SEBI FOR DATA EXCHANGE

A Memorandum of Understanding (MOU) was signed between Ministry of Corporate Affairs (MCA) and Securities and

Exchange Board of India (SEBI) for automatic data exchange in order to tackle the rising instances of fraud.

Along with this, SEBI and MCA will share any information available in their respective databases on request for the

purpose of carrying out scrutiny, investigation, inspection, and prosecution.

INDIA‟S GDP GROWTH MAY EXPAND TO 7.2 PERCENT IN 2019-20: GOLDMAN SACHS







According to American multinational banking firm, Goldman Sachs, India‘s economic growth is estimated to rise to 7.2

percent in 2019-20.

It will be driven by lower oil prices, political stability, and removal of infrastructure bottlenecks. The report came a day

after the policy review by RBI, in which policy rates were cut by 0.25 percent to increase growth.

BUSINESS CONFIDENCE INDEX DROPS 9.1% IN Q4 OF 2018-19: NCAER

According to a recent survey by the National Council of Applied Economic Research (NCAER), Business confidence

index (BCI) of India Inc slipped 9.1 percent in the fourth quarter Q4 of the financial year 2018-19. Meanwhile, the

Political Confidence Index (PCI) of businesses has increased by 12.1% on a quarterly basis in Q4.

FACEBOOK LAUNCHED ITS FIRST INTERACTIVE GAME SHOW “CONFETTI” IN INDIA

Facebook launched its first interactive Game Show ―Confetti‖ in India. It was first launched in the United States. It will

challenge participants to answer pop culture trivia questions for a chance to win Rs 3 lakh as cash prize every day.

The interactive game is exclusive to Facebook Watch. he announcement on the launch of the interactive game was made

on side-lines of Facebook‘s Social Entertainment Summit held in Mumbai, Maharashtra.

CERTIFICATION FOR BS-VI NORMS RELEASED FOR TWO-WHEELERS; HERO MOTOCORP BECOMES

THE FIRST TWO-WHEELER MANUFACTURER TO RECEIVE IT

India‘s first Type Approval Certificate (TAC) for Bharat Stage – VI (BS-VI) norms for the two-wheeler segment has

been released by International Centre for Automotive Technology (ICAT).

BS – VI norms are the latest emission norms notified by the Government of India, which have to be followed by the

automotive manufacturers to sell their vehicles in India. Recently, Hero MotoCorp becomes the first two-wheeler

manufacturer to receive BS6 Certification for its Hero Splendor iSmart.

IMPORTS FROM PAKISTAN TO INDIA DECLINED BY 92% IN MARCH 2019 TO $2.84 MILLION

Imports from Pakistan to India declined by 92% in March 2019 to $2.84 million due to the imposition of 200% customs

duties on all products after Pulwama terror attack.

India had hiked the customs duty to 200% on all goods imported from Pakistan including cotton, fresh fruits, cement,

petroleum products and mineral ore on February 16, 2019. It had also revoked the MFN (Most Favoured Nation) status

which was given to Pakistan in 1996.

SEBI RELEASED A DISCUSSION PAPER FOR INFORMANT MECHANISM RELATED TO INSIDER TRADING

Securities and Exchange Board of India (SEBI) released a discussion paper for informant mechanism related to insider

trading.

The proposed amendments to the SEBI (Prohibition of Insider Trading) Regulations, 2015 will provide absolute

confidentiality with appropriate safeguards.

Capital market regulator announced that genuine whistleblowers could get monetary reward up to Rs 1 crore as well as

amnesty from regulatory action

DCC APPROVED TO IMPOSE PENALTY ON AIRTEL, VODAFONE IDEA

The highest decision-making body of the Department of Telecom (DoT), Digital Communications Commission (DCC)

approved to levy penalties on Bharti Airtel Ltd and Vodafone Idea Ltd for denial of interconnection to Reliance Jio Infocomm

Ltd when it had entered the market in 2016. Reliance Jio had complained that its subscribers were unable to call other networks

as its rivals did not release sufficient number of Points of Interconnect (PoI).

Fitch Reduces India Growth Forecast for Fy20 From 6.8% To 6.6%

Fitch reduced India‘s growth forecast for the current fiscal year (FY20) from 6.8% to 6.6% due to the slowdown of

manufacturing and agriculture sectors over the past years.

Indian Railways and Rel Signed Mou for Modernisation Of Signaling System On Four Sections







Indian Railways signed a Memorandum of Understanding (MoU) with RailTel Enterprises Limited (REL), a wholly-

owned subsidiary company of RailTel Corporation of India Ltd, to upgrade its signalling system on 4 busiest sections.

It includes Automatic Train Protection System with Long Term Evolution (LTE) based Mobile Train Radio

Communication System (MTRC) along with the provision of Electronic Interlocking (indoor) wherever required.

India Constitutes 6.3 Percent of The Global Fish Production: Fisheries Department

According to the report released by the Fisheries Department, India is the second largest fish producing country in the

world after China as it accounts for 6.3 percent of the global fish production.

It also states that the fisheries sector registers a 7 percent growth rate, sustaining 14.5 million fishermen.

Bangladesh Emerged as the Fastest Economy In Asia-Pacific: Asian Development Bank

Asian Development Bank (ADB) in it's Asian Development Outlook (ADO) stated that Bangladesh emerged as the

fastest growing economy among the 45 countries of the Asia-Pacific region.

Higher public sector investment, stronger consumption demand, revival in exports, improved power supply and higher

growth in private sector credit were the key factors of the high growth performance of Bangladesh.

Icann, Nasscom to Collaborate on Internet Innovation Research

Global internet body, The Internet Corporation for Assigned Names and Numbers (ICANN) and India's National

Association of Software and Services Companies (NASSCOM) signed a Memorandum of Understanding (MoU) for a

joint collaboration on research and engagement activities that will foster innovation in Internet identifier technologies.

This will help both bodies to jointly identify research projects, predominantly in new technologies related to the

Internet's system of unique identifiers.

Sebi Permits Stock Exchanges To Introduce Futures On Commodity Indices

The Securities and Exchange Board of India (SEBI) allowed the stock exchanges with Commodity Derivative Segment

(CDS) to introduce futures on commodity indices.

This will facilitate mutual fund and institutional participation in commodity exchanges. The stock exchanges are

required take prior approval from SEBI to launch such contracts

Sebi Sets Up a Working Group Headed By Nse Clearing Ltd to Review Margins On Derivatives

The Securities and Exchange Board of India (SEBI) framed a working group headed by NSE Clearing Ltd to review the

current framework of margins in the futures and options segment.

It will submit its recommendations to the Secondary Market Advisory Committee.

Dbs Bank Revised India‟s Gdp Forecast for Fy20 To 6.8% From 7%

DBS Bank in its report on the Indian economy revised India‘s Gross Domestic Product (GDP) forecast for the fiscal

year 2020 to 6.8% year-on-year (YoY) from 7% due to headwinds for exports amidst challenging trade outlook.

Inflation rate was estimated at 3.8% for FY20 against 3.4% of FY19.




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Last 6 Months Banking, Finance & Economy Current Affairs ...

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