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2019 Banking & Economy

Table of Contents
2019 Banking & Economy – JANUARY .......................................................................................................................... 3
2019 Banking & Economy – FEBRUARY...................................................................................................................... 14
2019 Banking & Economy – MARCH............................................................................................................................ 20
2019 Banking & Economy – APRIL .............................................................................................................................. 30
2019 Banking & Economy – MAY ................................................................................................................................. 42
2019 Banking & Economy – JUNE ................................................................................................................................ 54
2019 Banking & Economy – JULY ................................................................................................................................ 68
2019 Banking & Economy – AUGUST .......................................................................................................................... 78
2019 Banking & Economy – SEPTEMBER ................................................................................................................... 91
2019 Banking & Economy – OCTOBER ...................................................................................................................... 103
2019 Banking & Economy – NOVEMBER .................................................................................................................. 113
2019 Banking & Economy – DECEMBER ................................................................................................................... 121
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2019 Banking & Economy – JANUARY

RBI in News
18th edition of India’s Fiscal Stability Report was released by RBI
• On December 31, 2018, the central bank of India, Reserve Bank of India (RBI) released 18th Fiscal
Stability Report of India. This report has been prepared by the Sub-Committee of the Financial Stability
and Development Council (FSDC) on the risks to financial stability, the strength of the financial system
and the development and regulation of the financial sector.For a detailed read, refer the link
given: Click Here.
One-time relief to MSMEs allowed by restructuring debt up to Rs 25 crore by 31st March 2020: RBI
• On January 2, 2019, Reserve Bank allowed a one-time restructuring of existing debt of up to 25 crore
rupees to micro, small and medium enterprises (MSMEs) which are facing cash crunch in the wake of
demonetisation and GST implementation.The restructuring has to be implemented by 31st of March
2020.
RBI Forms Expert Panel On MSMEs under Ex-SEBI Chief UK Sinha

• On 2nd January 2019, the Reserve Bank 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 eight-member committee will also examine the factors affecting the timely and adequate
availability of finance to the sector.
RBI limits customer liability in fraudulent PPI transactions

• On 4th January 2019, the Reserve Bank of India (RBI) issued a notification for all authorised non-
bank Prepaid Payment Instrument (PPI) Issuers in order to limit the liability of Customers in
unauthorised electronic payment transactions in Prepaid Payment Instruments (PPIs) comprising
mobile wallets, prepaid payments cards, and paper vouchers such as Sodexo.
Nepal’s central bank asked RBI to declare new Indian currency notes legal in a written plea
• On January 6, 2019, the Nepal Rastra Bank (NRB), Nepal’s central monetary authority, wrote to
the Reserve Bank of India (RBI) to legalize Indian currency notes of denominations higher than Rs
100 in Nepal.
RBI set up 5-member panel under Nandan Nilekani to boost digital payments
• On January 8, 2019, the Reserve Bank of India constituted a 5-member high-level committee under
Aadhaar architect Nandan Nilekani to suggest measures to strengthen the safety and security of digital
payments in the country.
IndiaMoneyMart Receives NBFC -P2P Certification from RBI

• Reserve Bank of India (RBI) has granted NBFC – P2P (Non-Banking Financial Company – Peer to Peer)
Certificate to IndiaMoneyMart and this certification will enable IndiaMoneyMart to expand operations
and target loan disbursals worth INR 100 Crore by the end of financial year 2018-19.
RBI allows ‘tokenisation’ for more secure card transactions

• On 08th January 2019, the Reserve Bank of India has allowed tokenization of debit, credit and prepaid
card transactions to enhance the safety of the digital payments ecosystem in the country.
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Gold Monetisation Scheme 2015 met with a few changes

• On January 9, 2019, Reserve Bank of India (RBI) made a few changes in the Gold Monetisation Scheme
(GMS) 2015. According to the changes, it included charitable institutions and the central
government under the ambit of the scheme. It also allowed joint deposits of two or more eligible
depositors in which deposit in such cases shall be credited to the joint deposit account.
RBI-Govt to jointly relax PCA norms for some better-off lenders

• On January 14, 2019, the finance ministry and the Reserve Bank of India will work towards the prompt
corrective action (PCA) framework for stressed banks. This would only be availed by those lenders that
have shown considerable improvement in addressing bad loans.
RBI injected 10,000 crore rupees into the system through the purchase of government securities
• On January 16, 2019, the Reserve Bank of India announced that it will inject 10,000 crore rupees into
the system to increase liquidity through open market operations (OMOs).
RBI eased norms for external commercial borrowings by launching new Framework
• On January 16, 2019, RBI announced the New External Commercial Borrowings (ECB) Framework to
promote ease of doing business. According to the announcement, a few changes has been made. For
more information: Click Here
RBI fined Bank of Maharashtra with 1 Crore

• On January 16, 2019, Reserve Bank of India (RBI),imposed a Rs 1-crore penalty on state-owned Bank of
Maharashtra (BoM) for non-compliance of Know Your Customer (KYC)guidelines and fraud-
classification norms.
RBI Initiates Industrial Outlook Survey (IOS) and Services and infrastructure Outlook Survey (SIOS)
• On 21st January 2019, The Reserve Bank of India has initiated two quarterly surveys named as
Industrial Outlook Survey (IOS) and Services and Infrastructure Outlook Survey (SIOS) to examine the
Indian Manufacturing, services and infrastructure sector and business situation for the quarter January-
March 2019.
Loans issued by banks/others

Loan issued Received Amount Points to be noted
by by
Reserve bank Sri lanka USD 400 To boost the nation’s reserve.RBI has agreed to issue the fund under the
of India million SAARC(South Asian Association for Regional Cooperation) SWAP facility system.
Agreements/MoU’s Signed
Allahabad Bank, SBI Life join hand for bancassurance partnership
• On 31st December 2018, a ‘bancassurance’ pact was signed between State-owned Allahabad
Bank and SBI Life Insurance to sell the policies of the insurer from over 3,238 branches of the Allahabad
Bank.The agreement is considered as one of the largest Bancassurance partnerships in the country.
Bancassurance pact was signed between Syndicate Bank and SBI Life Insurance
• On January 2, 2019, Syndicate Bank and SBI Life Insurance signed a bancassurance pact aiming to offer
a comprehensive financial planning solution to its customers.
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UBI, Srei Equipment Finance enter pact for MSME sector finance
• The United Bank of India (UBI) and Srei Equipment Finance have entered into an agreement for
financing the Micro, Small and Medium enterprises (MSME) and agriculture sector. Under the
agreement UBI plans to leverage the co-lending model to offer credit at blended interest rate of 11-12
per cent.
Indian Army and PNB singed MOU for updated salary packages
• On January 8, 2019, Indian Army and Punjab National Bank (PNB) signed a Memorandum of
Understanding (MoU) on the Defence Salary Package.
Government of India and JICA signs Loan Agreements in New Delhi

• On 18th January 2019, Dr. C.S. Mohapatra, Additional Secretary, Department of Economic
affairs, Government of India and Mr. Katsuo Matsumoto, Chief Representative, Japan International
Cooperation Agency (JICA) signed the Loan Agreement under Japan’s Official Development Assistance
Loan Program in New Delhi.
Other Important Banking & Finance News

Paytm Payments Bank to add new customers after 6 months
• On January 1, 2019, Reserve Bank of India granted permission to Paytm Payment Bank to add new
customers after it initially barred Paytm from opening bank accounts in June 2018.
Govt infuses nearly Rs 11,000 cr capital in public sector banks

• On 31st December 2018, The government has infused 10,882 crore rupees in four public sector banks,
including UCO Bank and Syndicate Bank.State-run lender UCO bank, formerly United Commercial Bank,
announced that Government of India has infused Rs 3074 crore of capital into it by the way
of preferential allotment.
Complaints with bank ombudsman surge 25% in FY18

• On December 31, 2018, according to the RBI Report on Trend and Progress of Banking in India, number
of complaints registered at banking ombudsman offices has increased to 25% owing to increased
awareness and poor internal redressal mechanisms of banks. For a detailed read, refer: Click Here.
Bharti AXA Life uses WhatsApp to deliver policy, renewal premium

• On 02nd January 2019, private sector insurer Bharti AXA Life Insurance started delivering policies and
renewal premium receipt to customers via instant messaging platform WhatsApp as a part of its
alternative service option to the policy holders.
HDFC MF surpassed ICICI Prudential MF to become largest AMC in India

• On January 3, 2019, as per the latest data of Association of Mutual funds in India (AMFI), HDFC Mutual
Fund has surpassed ICICI Prudential MF to become the country’s largest asset management
company (AMC) after a gap of over two years.
IRDAI slapped a penalty of Rs 5 lakh on United India Insurance Co

• On January 4, 2019, the Insurance Regulatory and Development Authority of India (IRDAI) slapped a
penalty of Rs 5 lakh on United India Insurance Co for violating norms regarding settlement of motor
claims.
5|Page
Cyber frauds in Indian banking sector hiked over 50% in FY18; it is one-third of the overall amount of
frauds in India
• On December 28, 2018, according to the Reserve Bank of India’s Report on Trend and Progress of
Banking in India 2017-18, India witnessed a jump of 159 per cent to almost Rs.110 crore, from Rs.42.3
crore in 2017-18. This would address cybersecurity complaints from all regulated entities
including Prepaid Payment Instruments (PPIs) and mobile banking interfaces.
ICICI Bank, Small Business FinCredit joined hands to provide loans worth Rs. 1 crore to MSMEs for 15-
year tenure
• On January 4, 2019, ICICI Bank, in a first-of-its-kind programme, signed a Memorandum of
Understanding (MoU) with Small Business FinCredit India Pvt. Ltd. (SBFC), a systemically important
Non-Banking Finance Company for entrepreneurs, to jointly provide credit worth up to Rs 1 crore to
MSMEs for a tenure of 15 years.
Regional Rural Banks-Punjab Gramin Bank, Malwa Gramin Bank and Sutlej Gramin Bank amalgamated
into a single Bank
• With the effect from 1st January 2019, the three Regional Rural Banks (RRBs) – Punjab Gramin
Bank, Malwa Gramin Bank and Sutlej Gramin Bank has been amalgamated into a single RRB by the
Government.
Government Revises Interest Rate on Time Deposit Small Savings Scheme

• The Ministry of Finance, Government of India has revised the interest rates on select Time Deposit
Small Saving Scheme for the quarter ending on 31st March 2019. The Interest rates on one-year time
deposit is hiked from 6.9% to 7% whereas the interest rate on three-year time deposit has been
changed from 7.2% to 7%.
Jana Small Finance Bank Launches Current Account with Unique Auto-Sweep Facility
• On 8th January 2019, the private sector Jana Small Finance Bank has launched a new Current
Account with Auto-Sweep facility that will enable bank’s existing and potential new customers to auto
sweep-in and sweep-out the idle funds in the current account to Sweep Fixed Deposit and earn high
interest.
CAG report on the Fiscal Responsibility and Budget Management

• On 8th January 2019, The Comptroller and Auditor General of India (CAG) released a report on the
“Fiscal Responsibility and Budget Management (FRBM)” reveals that the government should frame a
policy on off- budget financing and sources of such funding in view of its fiscal implication.
NABARD through its venture capital entity Nabventures Ltd will provide early stage capital to
agriculture and rural enterprises
• On January 8, 2019, Nabventures Ltd, the venture capital entity incorporated by NABARD under
the Companies Act, will launch its maiden early stage capital fund offer to agriculture and rural
enterprises. It would also promote various enterprises to create more sustainable employment.
Fresh CLSS Subsidy of Rs 175.56 cr from NHB given

• On January 8, 2019, National Housing Bank (NHB) gave fresh subsidy worth Rs 175.56
crore under Credit Linked Subsidy Scheme (CLSS) to housing finance company, Aadhar Housing
finance. This will reduce their monthly payable instalments.
6|Page
IRCTC tied up with Bharti AXA General insurance company to offer free travel insurance for air
travellers
• On 9th January 2019, IRCTC tied up with Bharti AXA General insurance company to provide free travel
insurance to the air travellers. This insurance is applicable to only those who book ticket in the official
website of air ticketing irctc,IRCTC Air – air.irctc.co.in.
Iran’s Pasargad Bank received RBI’s nod to open its branch in Mumbai
• On January 8, 2019, the Union Road Minister Nitin Gadkari, on successful meeting with Iran’s Minister
of Foreign Affairs Mohammad Javad Zarif, announced that Reserve Bank of India (RBI) has
approved Iran’s Pasargad Bank to open branches in Mumbai for easing trade related transactions.
Rs 3 crore penalty slapped on Citibank India

• On January 11, 2019, the Reserve Bank of India (RBI), under the relevant provisions of the Banking
Regulation Act, 1949, imposed a penalty of Rs 3 crore on Citibank India for non-compliance in criteria
for directors of the bank.
IDFC Bank re-named IDFC First Bank: Registrar of Companies, Chennai

• On January 13, 2019, private sector lender IDFC Bank changed its name to IDFC First Bank Ltd owing to
the merge of the bank with Non-Banking Finance Company (NBFC) Capital First on December 2018. The
change was effective from January 12, 2019 by virtue of ‘Certificate of Incorporation pursuant to change
of name issued by the Registrar of Companies, Chennai.
Sovereign gold bonds on sale at Rs 3,214 a gram during Jan 14-18,2019

• On 12th January 2019, ministry of finance announced that a new series of sovereign gold bonds will be
available at Rs 3,214 per gram from 14th January to 18th January 2019.A discount of Rs 50 per gram will
be given to the Investors who apply online for the Sovereign Gold Bond Scheme 2018-19 – Series V.
PSU banks to bring down govt equity to 52%

• On January 16, 2019, Finance Ministry asked the public sector banks to bring down the government’s
equity to at least 52 per cent in the first phase to align with the best corporate practices.
Banks led by SBI agreed to finance Nagpur-Mumbai Samruddhi Corridor

• On January 17, 2019, the Maharashtra Chief Minister’s Office in Mumbai announced that SBI along with
others banks agreed to provide finance for Nagpur-Mumbai ‘Samruddhi Corridor’ expressway project.
Among the consortium of banks, SBI will be providing the highest amount which is Rs. 8,500 crore.
HDFC Standard Life Insurance renamed

• On January 16, 2019, HDFC Standard Life Insurance renamed itself to HDFC Life Insurance.
Group insolvency: UK Sinha-headed working group to suggest suitable framework

• Former Chairman of Securities and Exchange Board of India (SEBI), U.K. Sinha will head an 11-member
working group constituted by the Insolvency and Bankruptcy board of India (IBBI) to study the concept
of ‘Group Insolvency’ and suggest a suitable framework.
Nepal ‘s Central bank announces to ban the use of Indian rupee notes above 100
• On January 20, 2019, 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.
7|Page
IBBI organised Insolvency and Bankruptcy Awareness Programme at Gujarat

• On January 19, 2019, The Insolvency and Bankruptcy Board of India(IBBI) organised an Insolvency and
Bankruptcy Awareness Programme at Vadodara, Gujarat.
Anushree Jindal launches maiden biz venture Svamaan Financial Services

• Anushree Jindal, daughter-in-law of JSW Group Chairman Sajjan Jindal has launched her maiden
business venture –Svamaan Financial Services, a microfinance company with Rs. 10 Crore “Personal
Family Money” as seed capital and RBI approved the application of Svamaan Financial Services as an
RBI Registered Non-Banking Financial Company – Micro Finance Institution (NBFC – MFI).
Health research money increased by Rs 147 crore in India

• On January 23,2019, G-Finder a project tracked on global investments into research and development
(R&D) for neglected diseases by Indian Council of Medical Research was (ICMR) increased by Rs 147
crore. India attained 4th position, US become the largest funder, on research and development.
IRDAI sets panel headed by Praveen Kutumbe to identify systematically important insurers
• A panel is all set by Insurance Regulatory Development Authority of India (IRDAI) headed by Praveen
Kutumbe, to identify domestically systematically important insurers (SIIs) and an augmented
regulatory framework is logically established in this regard.
SBI Card & Etihad Guest tie-up to launch premium card for international travel
• On 24th January 2019, SBI Card, the country’s second largest credit card issuer and Etihad Guest,
the loyalty programme of Etihad Airways have weld their hand together for a specific visa credit card
to come into play for members and Indian travellers.The card will be available in two variants, Etihad
Guest SBI Card and Etihad Guest SBI Premier Card.
IndiaFirst Life Insurance buys stake in CSC e-Governance services

• On 28th January 2019 Life insurance firm IndiaFirst buys 9% stake in CSC e-Governance services India
Limited. This stake purchase demonstrates bringing personal risk protection to all sections of the
society in the four year association with Common Services Centre (CSC).
UAE, Saudi Central banks launch common digital currency called ‘Aber’
• On 26th January 2019, Central banks of UAE and Saudi Arabia launched common digital currency called
‘Aber ‘. UAE central bank will establish an additional means for the central financial transfer systems of
the two countries and enable bankers to directly deal with each other. It was announced during their
Executive Committee’s First Meeting, which held in Abu Dhabi.
India to grow by 7.5% in 2019; Settled GST, credit flows had a positive effect
• On December 31, 2018, in its report titled ‘Growth Outlook for 2019’, Confederation of Indian Industry
(CII) stated that India will remain the fastest growing major economy with GDP growth estimated to
be 7.5% in FY19.
France introduced GAFA tax on global internet,technology firms

• From 1st January 2019, France introduced a new “GAFA tax” named after the large internet and
technology companies Google, Apple, Facebook and Amazon to ensure the global giants pay a fair share
of taxes on their massive businesses in Europe.
8|Page
Minimum Support Price for 17 new items of Minor Forest Produce introduced on recommendations of
Pricing Cell, TRIFED ;Ministry of Tribal Affairs
• On December 27, 2018, the Government introduced the Minimum Support Price (MSP) for 17 items
of Minor Forest Produce (MFP) items after revising 23 items. These changes have been done under the
recommendations of the MFP Pricing Cell constituted by the Tribal Cooperative Marketing
Development Federation of India Ltd. (TRIFED).
Govt may impose anti-dumping duty on Chinese synthetic rubber

• The Ministry of Commerce and Industry, Government of India, is mulling to impose anti-dumping
duty for 18 months on a Chinese synthetic rubber ‘fluoroelastomers’ used in automobile and other
industries in order to minimize the impact of dumped imports.
India cuts duty on refined, crude palm oil from ASEAN to 40 and 45 percent respectively
• On December 31, 2018, the ministry of finance announced that the government has cut import duties
on crude and refined palm oil from Southeast Asian countries or ASEAN countries. This move was taken
under the India-ASEAN Free Trade Agreement and Malaysia under the India-Malaysia Comprehensive
Economic Cooperation Agreement (IMCECA).
India will not impose anti-dumping duty on coated paper imported from China, EU, US
• On January 3, 2019, after the conclusion of its anti-dumping probe, the Directorate General of Trade
Remedies (DGTR), under Commerce Ministry suggested that India will not impose anti-dumping duty
on coated paper from China, European Union and the US. The probe conducted by the DGTR.
Defence industries received Rs 1.21 cr FDI during 2014-18: Commerce Min

• On January 2, 2019, Minister of State for Commerce and Industry C R Chaudhary announced that India’s
defence sector received Rs 1.21 crore (Rs 12,146,180) foreign direct investment during 2014-18.
First LNG import terminal of IOC commissioned in Ennore, Tamil Nadu

• On January 2, 2019, Indian Oil Corp (IOC), the nation’s biggest oil firm, announced commission of its
first Rs 5,151-crore worth Liquefied Natural Gas (LNG) import terminal in Ennore, Tamil Nadu.
7 Oil PSUs signed to set up centre of excellence

• On January 2, 2019, IIT Bombay and 7 public sector oil companies inked a memorandum of
understanding (MoU) for setting up Centre of Excellence in Oil, Gas and Energy.
SEBI allows custodial services in commodity market, paves way for MF entry
• On 1st January 2019, Securities and Exchange Board of India (SEBI), the market regulator has allowed
custodial services in the commodity derivatives market enabling participation of institutional investors,
including mutual funds, in the segment.
Govt exempts rupee payments for Iran oil from taxes

• On January 2, 2019, the finance ministry in it’s notification exempted rupee payments to the National
Iranian Oil Company (NIOC) that it gets from Indian refiners, from a withholding tax.
Vijay Mallya first person to be named ‘fugitive economic offender’, under ED’s plea
• On January 4, 2019, Vijay Mallya became the first person to be declared a ‘fugitive economic offender’
under Section 12 of the Fugitive Economic Offenders’ Act, 2018 by a special Prevention of Money
Laundering Act (PMLA) Court in Mumbai.
9|Page
SoftBank renames early venture arm with focus on Asia

• On 2nd January 2019, SoftBank Ventures Korea, the early-stage investment vehicle of Japanese internet
conglomerate SoftBank Group, has renamed itself SoftBank Ventures Asia and will focus on finding
artificial intelligence-related startups globally, with an emphasis on Asia.
GST panel headed by Dy. CM of Bihar approved Kerala levying 1% calamity cess for 2 yrs
• On January 7, 2019, the Group of States’ Finance Ministers (GoFM) led by Deputy Chief Minister of
Bihar, Sushil Kumar Modi approved levy of 1%‘calamity cess’ by Kerala for a period of two years to fund
rehabilitation work in the state of Kerala. It will recommend the same to the GST council meeting which
will be held in January 10, 2019.
AAI banned single-use plastic items at 16 out of 34 airports in the first phase of the implementation
• On January 7, 2019, Airport Authority of India (AAI) banned single-use plastic items at 16 airports. The
first batch of 16 airports was selected on the basis of third-party assessment carried out by Quality
Council of India.Furthermore, Quality Council of India will assess/check the implementation of the ban
of single-use plastic items at 34 airports handling 10 lakh passengers per annum.
NHAI collaborate with Oil Marketing Companies for issuance of FASTags

• On 7th january 2019, Indian Highways Management Company Ltd. (IHMCL), a company promoted by
NHAI, has signed MOUs with state-run Oil Marketing Companies (IOCL, BPC, and HPC). It will ensure
availability of FASTags at petroleum outlets across India.
New national policy for domestic workers being drafted, about 40 lakh to benefit
• On January 7, 2019, labour minister Santosh Gangwar announced that the ministry of labour &
employment will formulate a National Policy on Domestic Workers to give recognition to them and to
make them eligible for minimum wages, social security and safe working conditions. This has been
worked on by the ministry for over past three years.
Business & Economy News

India’s GDP expected to grow at 7.3% in 2018-19
• On 9th January 2019, World Bank projected India’ GDP, expected to grow at 7.3% in the fiscal year 2018-
19, and 7.5% in the following two years. The Bank said India will continue to be the fastest growing
major economy in the world. In India, the growth has accelerated, driven by an upswing in
consumption, and investment growth has firmed as the effects of temporary factors wane, the World
Bank said in its latest report.
India is set to become world’s third largest consumer market after US and China in 2030
• On 9th January 2019, a report by World Economic Forum today said that India is set to become the
world’s third largest consumer market behind only USA and China by 2030.The report titled “Future of
Consumption in Fast- Growth Consumer Market- India” also noted growth of the middle class will lift
nearly 25 million household out of poverty.
India’s GDP set to eclipse US’ by 2030

• On 08th January 2019, Standard Chartered released its long term forcast which states that India will
surpass the U.S to become the world’s second largest economy by 2030 while China will be
at First Position.China will become the largest economy by 2020.
10 | P a g e
I&B Ministry Hikes Advertisment Rates For Print Media By 25%

• On 8th January 2019, Ministry of informaion and broadcasting decided to increase the advertisment
rates by 25% to the small and medium sized newspaper agencies.This new price is valid upto three
years.
Trishna Gas Project of ONGC in Trishna Wildlife Sanctuary approved by National Wildlife Board
• On January 12, 2019, the National Wildlife Board after receiving recommendations from the
state Wildlife Board, approved extraction of natural gas from Trishna Wildlife Sanctuary by state-
owned ONGC Tripura Asset.Under the project, 10-12 gas bearing wells had been discovered by ONGC
Tripura Asset.
Consumer retail inflation fell 18-month-low to 2.19% in December 2018

• On January 14, 2019, according to an official release by Central Statistics Office (CSO), citing cooling
food and fuel prices as the reasons, it stated that wholesale and retail inflation reduced to a multi month
low with CPI falling to an 18-month low in December,2018. India’s headline inflation rate based on
the consumer price index (combined) reduced to an 18-month low of 2.19% in December, down from
2.33% in November, 2018.
India to buy $5 billion oil, gas from US & spend $18 billion in defence
• On 16th January 2019, India has decided to purchase $5 billion worth of oil and gas from the US per
annum and $18 billion worth for defence equipment. India-US bilateral trade has increased from $119
billion to $140 billion in past two years.
SEBI issues draft norms for commodity indices

• On 16th January 2019, Securities and Exchange Board of India (SEBI) issued drafts norm for
commodity indices allowing trading in commodity-index-based futures.Earlier only individual
commodity futures and options on it were allowed.
Only contracts that are compliant with certain conditions would be allowed to be part of the indices.
SEBI issued norms for mutual fund investments in derivatives

• On January 16, 2019, Markets regulator SEBI allowed mutual fund schemes (except Index Funds and
ETFs) to write call options only under a covered call strategy for constituent stocks of Nifty
50 and Sensex indices.
GDP growth likely to be tad higher at 7.5% in FY20: India Ratings and Research
• On 17th January 2019, a Fitch group company India ratings and research estimated that India’s GDP
growth to be a “tad higher” at 7.5% in financial year 2019-20. Earlier it was 7.2% during fiscal
year 2018-19.
BHEL and LIBCOIN to Build India’s First Lithium Ion Giga Factory
• On 18th January 2019, Government announced that Bharat Heavy Electricals Limited
(BHEL) and Libcoin are in dialogue to form a world class consortium to initially build the first lithium
Ion battery plant in India. The Initial capacity of the plant will be 1GWh and it will be scaled up to 30
GWh in due course.
Centre to make Euro 6 mandatory for initial launch from April 1, 2020
• On 18th January 2019 Government has taken decision to make Euro 6 Emission standards necessary for
the initial launch of vehicles from 1 April 2020. Union Minister for Transport Nitin Gadkari made the
announcement while addressing Symposium of International Automotive Technology 2019 in Pune.
11 | P a g e
Outbreak Readiness and Business impact released by WEF

• The World Economic Forum released “The Outbreak Readiness and Business impact white paper” in
collaboration with the Harvard Global Health Institute. As per report, the Pandemics will cause annual
economic losses of 0.7 per cent of global GDP.
Dell Launches India’s First PolicyHack for Teachers

• On January 18 2019, Dell, as a part of its three-city PolicyHack series, hosted an interactive hackathon,
where teachers focused on their learning journey in New Delhi. Dell has ALSO partnered with
the UNESCO, Mahatma Gandhi Institute of Education for Peace and Sustainable Development (MGIEP)
and Ignus.
India to knock Down UK In Largest Economy Rankings:PwC

• On January 20, 2019, According to British consultancy multinational PwC,India surpassed the UK in the
2019 rankings of world’s largest economies to become the World’s Fifth Largest Economy.GDP growth
of India in 2019 is 7.6 per cent whereas 1.6 per cent for the UK, and 1.7 per cent for France.
States’ fiscal deficit to breach target, may go up to 3.2% in FY20: India Ratings
• According to a report released by India Rating, India’s fiscal deficit may go up to 3.2 per cent in
Financial Year 2020 due to populist schemes like farm loan waivers and other financial support
schemes which may be announced before the forthcoming general elections.
Bihar State GDP Growth outshines nation’s growth: CRISIL

• As per a report published by CRISIL (Credit Rating Information Services of India Limited), Bihar has
been ranked the Top State in terms of Gross State Domestic Product (GSDP) by clocking a growth rate
of 11.3 per cent in financial year 2017-2018.
India 4th Most Attractive Investment Market for Global CEO’s: PwC Survey
• On 21st January 2019, India became 4th most attractive investment market for global CEO’s as per PwC
Survey conducted over more than 1300 CEOs in 91 countries. The report was released on the first day
of the World Economic Forum (WEF) annual meeting held in Davos, Switzerland.
GST exemption limit doubled to give relief to small businesses

• On 10th January, Finance Minister Arun Jaitley raised the annual turnover for availing composition
scheme to Rs 1.5 crore from Rs 1 crore effective from April 1, 2019 to provide relief to small businesses
under Goods and Services (GST) regime.
India Manufacturing Barometer 2019 Report: Released by Federation of Indian Chamber of Commerce
and Industry (FICCI) in association with PwC
• The global consulting firm PwC and industry body Federation of Indian Chambers of Commerce and
Industry (FICCI) held a new survey of manufacturers and released a report titled “The India
Manufacturing Barometer 2019”. The report projected that India’s economy is expected to grow
anywhere between 7.3 – 7.7 per cent.
US launches new innovation initiative at Raisina Dialogue, 2019

• On 11th January 2019, the Global Innovation Policy Center (GIPC) of United States Chamber of
Commerce launched a new innovation strategy at Raisina Dialogue, 2019 in New Delhi. The Initiative is
titled as “Fair Value for Innovation”. Theme:“A World Reorder: New Geometries; Fluid Partnerships;
Uncertain Outcomes”.
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Indian economy may grow 7.4% in FY19, 7.6% in FY20

• On 23rd January 2019, the United Nations released the World Economic Situation and Prospects
(WESP) report which projected India’s gross domestic product (GDP) to grow at 7.4 per
cent during 2018-19 and improve to 7.6 per cent in the next fiscal. Besides the report projected that the
gross domestic product (GDP) of India in 2020-21 will grow at 7.4 per cent.
United Nations released World Economic Situation and Prospects 2019 report
• On 21st January 2019, the United Nations released the World Economic Situation and Prospects 2019
(WESP) report which projected the Global growth to remain at 3.0 per cent in 2019 and 2020.The
report was produced by the UN Department of Economic and Social Affairs(UN/DESA), the UN
Conference on Trade and Development(UNCTAD) and the UN's five regional economic
commissions((ECA),(ECE),(ECLAC),(ESCAP) and (ESCWA).The full report has available in UN/DESA
website : https://www.un.org/development/desa/publications/publication/world-economic-
situation-and-prospects-2019.
BIS in Collaboration with IAF Releases New Standard for Bio-Jet Fuel
• On 24th January 2019, the Bureau of Indian Standards (BIS) in collaboration with Indian Air Force
(IAF) released a new standard for Aviation Turbine Fuels (ATF) which can be used as bio-jet fuel on all
military and civilian aircraft.
China to become world’s biggest retail market in 2019: Research firms eMarket
• On 24th January 2019, Research firm eMarket predicted that China will become world’s biggest retail
market in 2019. According to the report, the sale boom is a result of China’s rising incomes and thriving
e-commerce.
India to grow at 7-7.5% over next few years: PM’s Economic Advisory Council
• On 25th January 2019, Economic Advisory Council of Prime Minister (EAC-PM) headed by NITI Aayog
Member Bibek Debroy said in a report that India will continue to grow in the 7 to 7.5 percent range in
the next few years despite global and structural challenges.
GST on Haj Reduced from to 5%

• On January 29, 2019, Union Minister for Minority Affairs Mukhtar Abbas Naqvi annouced that GST on
Haj has been reduced from 18% to 5% and this will reduce the airfare spend on Haj pilgrims’
by Rs.113crore in 2019.
FDI grew 18% in FY18 to Rs. 28.25 lakh crore: RBI data
• On 28th January 2019, Reserve Bank of India released a data on “Census on Foreign Liabilities and
Assets of Indian Direct Investment Companies, 2017-18”which shows that the Foreign Direct
Investment (FDI) has been increased by 18 per cent to Rs. 28.25 lakh crore.
Anti-dumping duty imposed on Chinese chemical import

• On January 27, 2019, The Government imposed an anti-dumping duty on a chemical imports from
China,which is used in photography and manufacturing of dyes, for five years to protect domestic
producers of the chemical intermediate from cheap shipments .
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2019 Banking & Economy – FEBRUARY

RBI in News
RBI Lifted up the restrictions on BoI, Bank of Maharashtra, Oriental Bank of Commerce
• The Reserve Bank of India eased out the operational curbs on three banks, Bank of India (BoI),Bank of
Maharashtra (BoM) and Oriental Bank of Commerce (OBC) and also allowed them to have a exit from
the Prompt Corrective Action ( PCA) framework fully.
RBI penalized Rs 1 crore on State Bank of India

• Reserve Bank of India has slapped Rs 1 crore penalty on SBI for not monitoring the end use of funds in
respect of one of its borrowers, by exercising its powers under Section 47 A of the Banking Regulation
Act, 1949.
6th Bi-Monthly Monetary Policy Released By Reserve Bank Of India (RBI)

• Reserve Bank of India(RBI)’s six-member monetary policy committee chaired by RBI Governor
Shaktikanta Das released its 6th Bi-Monthly Monetary Policy.This is the First Bi-Monthly Policy for
Shaktikanta Das after he took charge as the RBI Governor. RBI had reduced 0.25 basis points in the
Policy Rates with immediate effect.
The limit on collateral-free agriculture loans is increased to Rs. 1.6 lakh by RBI
• RBI has announced to increase the limit on collateral-free agriculture loans to Rs.1.6 lakh from Rs.1
lakh. It will help to boost liquidity particularly among small and marginal farmers in the farming
sectors.
RBI penalized a total of Rs.5.2 Crore on Axis Bank, UCO Bank and Syndicate Bank for violation of norms
• Axis Bank, UCO Bank and Syndicate Bank are penalized with Rs 2.2 crore, Rs 2 crore and Rs 1 crore
respectively by RBI Bank for violating the guidelines in regulatory compliance.
RBI MSME package to help recast 1 lakh crore loan for 700k accounts
• RBI restructuring package for small businesses will help recast Rs 1 lakh crore of loans to 7 lakh MSME
s account holders.
RBI Doubles the limit of bulk deposits from Rs. 1 crore to Rs 2 Crore
• Reserve Bank of India decided to treat deposits to over Rs.2 crore as "bulk" as they doubled the limit for
the same from the earlier Rs.1crore. This move will enhance operational freedom of Banks. It was
suggested by National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB).
RBI slaps Rs 1.5 crore fine on Allahabad Bank for fraud reporting delay
• Allahabad Bank said the Reserve Bank of India (RBI) has imposed a penalty of Rs 1.5 crore on them for
not monitoring end use of funds, delay in classification and reporting of fraud and non-adherence with
RBI guidelines during restructuring of accounts in respect of one of its borrowers.
Yes Bank cleared of Divergence charges imposed by RBI

• The Reserve Bank of India cleared Yes Bank of Divergence charges i.e. disparity in reporting bad loans
and provisioning numbers for the year ended March 2018.
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RBI imposes penalties on Seven Banks for violating various norms

• The Reserve Bank of India (RBI) has penalised seven banks for not including public and private sector
banks for not complying with various norms. The banks are HDFC Bank, Kotak Mahindra Band, IDBI
Bank, Allahabad Bank, Andhra Bank, Indian Overseas bank and Bank of Maharashtra.
FPI investment cap on corporate bonds lifted by RBI

• Reserve Bank of India lifted the limit on Corporate bonds. RBI withdrew 20% limit on investment by
Foreign Portfolio Investors (FPIs) in corporate bonds of an entity. The move will encourage more
foreign investors to invest in corporate bonds in the country.
A Penalty of Rs 3.5 crore imposed on PNB, OBC and Bank of India by RBI
• The Reserve Bank of India (RBI) imposed monetary penalty on three Public Sector Undertaking (PSU)
banks due to deficiencies in regulatory compliance with the directions issued by RBI on monitoring end
use of funds, information exchange with other banks and on restructuring of accounts.
RBI approved transfer of Rs 28,000 crore as interim dividend to the Government of India
• The Reserve Bank of India (RBI) decided to transfer Rs. 28,000 crore as interim dividend to the
Government of India in the current Financial Year (FY) 2018-19, in order to enable the Centre to meet
its revised fiscal deficit target of 3.4% of the GDP for FY19.Now, GoI have Rs 68,000 crore as dividend
for the 2018-19 fiscal, as Rs 40,000 crore dividend was transferred to govt in August 2018.
RBI bundles NBFCs into a single type to offer operational flexibility

• Reserve Bank of India (RBI), in accordance with an announcement made during the last bi-monthly
policy, decided to create a single category for the NBFCs (non-banking financial companies) by bundling
their present three-tier structure. It was also decided that exposures to all NBFCs, excluding core
investment companies, will be risk weighted as per credit ratings.
RBI formalised USD 75-billion swap pact with Bank of Japan

• The Reserve Bank of India (RBI) and the Bank of Japan formalised the USD 75- billion swap agreement,
which would act as a cushion against any sharp swings in the local currency whenever the international
financial markets turn volatile.
RBI extends KYC deadline for digital wallets by six months

• The Reserve Bank of India extended the deadline for prepaid payment instrument (PPI) issuers to
complete their Know Your Customer (KYC) norms by six months.

Loan Received by Amount Points to be noted
issued by
World Bank Himachal Pradesh,Government $40 million (4 For bringing clean and reliable drinking water to the
of India crore INR) citizens of Greater Shimla area
Bank Signed with Points to be noted
State Bank of National Thermal It was signed by NTPC’s General Manager (Finance), Masood A.
India (SBI) Power Corporation Ansari, and Deputy General Manager of SBI, Neelabh Sinha worth Rs.
(NTPC) 5,000 Crore
Bank of Edelweiss In order to form a strategic partnership
Singapore
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Syndicate Srei Equipment To provide equipment financing under co-lending arrangement for
Bank Finance various equipment categories like construction, mining, material
handling, commercial vehicles, medical and farm equipment.
IIFL Home Maharashtra For building affordable houses through credit-linked subsidy scheme
Finance government (CLSS) under Pradhan Mantri Awas Yojana (PMAY).
Bank of Germany’s KfW To refinance solar projects at a cost of 113 million USD. The tie-up is
Baroda Development Bank part of an Indo-German Solar Energy Partnership signed in 2015.

Pallavan Grama Bank and Pandyan Grama Bank merged to form TN Grama Bank
• Under the sponsorship of Indian Bank, two regional rural bank – Pallavan Grama Bank and Pandyan
Grama Bank will be amalgamated to form a single RRB i.e. Tamil Nadu Grama Bank in Tamil Nadu. The
consolidation will be effective from April 1, 2019.
IBA issued advisory to waive off various charges for Kisan Credit Card
• Indian Banking Association (IBA) has recommended banks to exempt farmers from processing,
documentation, inspection, ledger folio charge and various service charges for Kisan Credit Card loans
upto Rs. 3 Lakhs.
Fino Payments Bank and Suryoday Small Finance Bank come together to offer sweep account facility
• Fino Payments Bank (FPB) has joined hands with Suryoday Small Finance Bank (SSFB) in order to
initiate sweep account facility, enabling customer to transfer excess amount to SSFB account.
Asian Development Bank raised $100 million in international market

• The Asian Development Bank raised $100 million from peso-linked bonds in the international market. It
was their maiden issue of Philippine peso.
Fiscal Deficit of April-December raised to 112% of FY19 budget target

• India’s fiscal deficit has touched 112% of the FY19 Budget target of Rs. 6.24 lakh crore during the
period of 9 months from April to December 2018. It is the gap between income and expenditure of the
government.
Ujjivan Small Finance Bank launches Kisan Suvidha loan product for small and marginal farmers
• The ‘Kisan Suvidha loan’ for small and marginal farmers launched by Ujjivan Small Finance Bank. The
scheme will attempt to reach the bottom of the pyramid with products and services.
India’s export growth may diminish to 7.3% in FY19

• As per a statement released by Government, India’s export may slow down to 7.3% in 2018-19 from
earlier growth rate of 9.8% of 2017-18 due to poor growth of traditional exports like gems and
jewellary, marine, farm and engineering.
IRDAI imposes Rs 9 lakh fine on United India Insurance

• Insurance Regulatory and Development Authority has imposed a fine of Rs 9 lakh on state-owned
United India Insurance. It imposed a sum of Rs 5 lakh for violation of regulations and Rs 4 lakh for
violations of circular and guidelines on rates and discounts.
16 | P a g e
Centre has revised disclosure limit of Stock investment and Mutual funds
• The government has revised an old cap on investment in the stock markets and mutual funds by
Government Officials to 6 months of their basic pay.
Forex reserves rises USD 2.06 billion

• According to RBI’s report,country’s foreign exchange reserves increased by USD 2.063 billion to USD
400.24 billion. The data reveals that country’s reserve position with the IMF also increased by USD 11.2
million to USD 2.654 billion.
J P Morgan became First US Bank with Cryptocurrency

• JP Morgan rolled out as the first US bank with cryptocurrency. The change in opinion of JP Morgan is the
first step in the program of making it more competitive. The currency is designed to be decentralized so
that no one has control over transactions being sent over the network.
Indianmoney.com Group acquired broking license to enter Insurance Business

• Indianmoneyinsurance.com, a subsidiary of the Indianmoney.com Group has acquired a broking license
from Insurance Regulatory and Development Authority of India (IRDAI) to enter Insurance Business.
Introductory “Trip Protector” policy launched by HDFC ERGO

• The first-of-its kind ‘Trip Protector’ insurance policy was launched by HDFC ERGO General Insurance
Company for non-life insurance segment in India.It is the third-largest non-life insurance provider in
the private sector in India.
Life Insurance Corporation (LIC) launched a new micro insurance plan ‘Micro Bachat’
• A new micro insurance plan ‘Micro Bachat’ was launched by the Life Insurance Corporation (LIC) of
India. It provides coverage of up to 2 lakhs and is the first micro-insurance plan to do so.
Draft guidelines for standard health product issued by IRDAI

• Insurance Regulatory and Development Authority of India(IRDAI) had issued the draft guidelines for
Standard Health Product.The Guidelines on Standard Health Product are issued under the provisions of
Section 34 (1) (a) of Insurance Act, 1938.
Capital Infusion of Rs. 48,239 Crore into 12 State-Run Banks

• The Finance Ministry announced a capital infusion of Rs 48,239 crore in 12 public sector banks (PSBs).
This has been done to enable them to meet their regulatory capital requirements and to increase the
availability of credit for stronger lenders.
EPFO recommended to raise interest rate to 8.65% from 8.55%

• Employees’ Provident Fund Organisation (EPFO) has recommended to increase the interest rate on
Employees’ Provident Fund for 2018-19 to 8.65% from 8.55% benefitting 6 crore EPFO subscribers.
Merger of Vijaya Bank and Dena Bank with BoB (Bank of Baroda) to be effective from April 1
• According to a statement by Bank of Baroda, its merger with Vijaya Bank and Dena Bank shall come into
force from 1st April 2019. This scheme has been named as ‘Amalgamation of Vijaya Bank and Dena
Bank with Bank of Baroda Scheme, 2019’.
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Zimbabwe Starts Trading New Currency RTGS dollar

• Zimbabwe’s central bank announced the discontinuation of its official currency; quasi-currency bond
note officially pegged at parity with the U.S. dollar and launched a new currency called RTGS dollars, to
resolve a long-term monetary crisis. The currency was launched at an initial rate of 2.5 RTGS dollars per
US dollar.
Rs 300 crore Women’s Livelihood Bond launched by World Bank, UN and SIDBI
• World Bank, United Nations Entity for Gender Equality and the Empowerment of Women (UN Women),
and Small Industries Development Bank of India (SIDBI) launched new social impact bonds exclusively
for women, called Women’s Livelihood Bonds (WLBs), with an initial corpus of Rs 300 crore to provide
funds at an annual interest rate of around 13% to 14% annual interest rate of around 13% to 14%.
Corporation bank, Allahabad Bank and Dhanlaxmi bank are out of PCA framework
• The Board for Financial Supervision (BFS) of the Reserve Bank of India has removed 2 public sector
banks- Corporation Bank and Allahabad Bank and 1 private sector bank – Dhanlaxmi Bank from PCA
(Prompt Corrective Action) framework.

GROWTH RATE:
Organization Year Rate
Central Statistical Office (CSO) 2019 7.2% from earlier estimate of 6.7%.
Finance ministry 2019-20 7.5 per cent
Himachal’s growth rate projected at 7.3% in current financial year

• Economic Survey Report for 2018-19 has projected the growth rate in Himachal Pradesh to be around
7.3% for the current financial year, 2018-19, while the per capita income is estimated at Rs 1,76,968.
Economic growth was 6.5% in the last fiscal, highest in last 3 years.
FMCG sector to clock double digit growth

• As per Nielsen study the Fast Moving Consumer Goods (FMCG) industry is likely to grow between 11%
and 12% in 2019 which is a little lower than 13.8% in 2018.
India gets its 4 Chinook heavy lift helicopters from US

• On the lines of Indo-US $2.5 billion deal in 2015, stating the purchase of 22 Apaches and 15 Chinook
helicopters for IAF, India received a batch of first four, Boeing Co’s, CH-47F Chinook military
helicopters, from US which arrived at the Mundra Port in Gujarat.
Government panel recommended reducing GST on under-construction flats from 12% to 5%

• Government panel headed by Nitin Patel, recommended lowering GST on under-construction
residential properties to 5%. The GST rate for under-construction flats earlier was 12%.
NITI Aayog signs SoI with MSDF to document Systematic Transformation in Education
• A Statement of Intent (SoI) was signed between the NITI Aayog and the Michael & Susan Dell
Foundation (MSDF) to codify, document and share best practices to improve learning outcomes in
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public school education through systematic reforms, based on their collective experiences of working
with various State Governments.
India signed a deal with US to procure 72,400 Assault Rifles

• The Indian Government has signed a deal with the US under Fast Track Procurement (FTP) to avail the
Indian Army with 72,400 new ‘Sig Sauer Assault Rifles’ which will overhaul the army’s inventory of
frontline rifles.
Govt lowers import duty on parts and components of electric vehicles to 10-15%
• The Government reduced the import duty on parts and components of electric vehicles to 10-15 per
cent from 15-30 per cent in order to promote domestic assembling of electric vehicles. The new rates
will come into effect from 30th January 2019.
NBHC releases kharif crop estimates for the year 2018-19

• National Bulk Handling Corporation (NBHC), released Kharif Crop estimation for the year 2018-2019,
stating, pulses production projection to be dropped to 9.10 million tonnes.
INSTEX: Iran Trade Promotion Plan

• In order to save Iran from the US (United States) sanctions, Project INSTEX (Instrument in Support of
Trade Exercises) was launched by the governments of United Kingdom, France and Germany.
New set of E-commerce Policy rules comes into effect

• The new E-commerce Policy has comes into effect which was notified in December 2018 by Department
for Promotion of Industry and Internal Trade (DPIIT) headed by the ministry of Commerce and
Industry.
Government raised Rs.10000 crore from Bharat-22 ETF offering

• Government of India gets Rs.10000crore from Bharat-22 Exchange Traded Fund (ETF) by additional
offering. The government has absorbed approximately Rs.46000crore by way of disinvestment with the
successful offering of Bharat-22 ETF.
Centre has increased Minimum Selling Price of Sugar by Rs 2/kg

• Worried over mounting sugarcane arrears, summing up to nearly Rs 20,000 crore at the end of January,
the government on 14th February 2019 increased the minimum selling price of sugar by Rs 2 per kg,
from Rs 29 to Rs 31 to facilitate millers in timely payment of dues of the sugarcane growers.
NPA under Mudra Yojana stands at Rs 7,277 crore

• The Parliament was informed by the government that loans by PSBs (Public Sector Banks) amounting
to Rs 7,277.31crore under Pradhan Mantri Mudra Yojana (PMMY) had turned into non-performing
assets(NPAs) by the end of March 2018.
India boosts Customs Duty to 200% on goods imported from Pakistan

• India, with immediate effect has boosted the Customs Duty on all the goods imported from Pakistan to
200%, has followed day after India repealed Most Famous Nation (MFN) status from Pakistan.
A deal of USD 1.5 billion signed by IOC to buy US crude oil

• Indian Oil Corporation (IOC), has signed its very first annual deal to buy U.S. crude oil, paying USD 1.5
billion for 60,000 barrels a day beginning April 2019 to March 2020 to diversify its crude sources.
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FDI reduced by 7% to USD 33.49 bn during Apr-Dec 2018-19

• According to the Ministry of Commerce and Industry, Foreign direct investment (FDI) into India fell by
7% to USD 33.49 billion during April-December in the current fiscal as Foreign Fund Inflows during this
period stood at USD 35.94 billion.
HAL places order with Thales for 2.75-inch rocket launchers to equip Indian armed forces
• HAL (Hindustan Aeronautics Limited) has signed a contract with Thales, a French aerospace and
defence company for supplying “135 2.75-inch (70-mm) rocket launchers, to improve the tactical
capabilities of the Indian armed forces.
Government released draft e-commerce policy

• Department for Promotion of Industry and Internal Trade (DPIIT) released a new 41-page "Draft
National e-Commerce Policy-India’s Data for India’s Development" that provides setting
up a legal and technological framework for restrictions on cross-border data flow.
Iran buys Indian raw sugar for the first time in five years
• For the first time in 5 years, Indian traders will export raw sugar to Iran. It’ll be exported in March and
April. The delivery is happening after so many years owing to Iran’s struggles to secure food supplies
due to sanctions imposed by the United States.
Government relaxes Angel Tax norms for start-ups

• Under the IT Act, Section 56 (2) (viib) money invested by angels in a company is treated as income from
other sources. Exemption under Section 56 (2) (viib) for startup recognized by the DPIIT is as follows:
 Investments by listed companies with a net worth of Rs 100 crore or turnover of Rs 250 crore will
be exempted up to Rs 25 crore.
 Investments of up to Rs 25 crore in eligible startups by Non-Residents, and Alternate Investment
Funds – Category I will also be exempt under Section 56 (2) (viib) of the Income Tax Act.
2019 Banking & Economy – MARCH

RBI in News
RBI notifies 2% interest subsidy through “Interest subvention scheme” for short-term crop loans
• The Reserve Bank of India notified a 2% interest subvention or Subsidy for short-term crop loans upto
Rs.3 lakhs for farmers at an interest rate of 7% during 2018-19 and 2019-20. For those farmers who are
repaying loans promptly will get an additional 2% interest subvention under the scheme.
RBI relax rules for White – label ATM providers

• The Reserve Bank of India has eased business guidelines for white label ATMs by allowing companies
that manage these machines to source cash directly from the central bank. RBI allowed White Label
ATM Operators (WLAO) to offer bill payment and deposit services depending on the technical feasibility
of the device as determined by NPCI.
Norms for trade credit relaxed by RBI

• RBI announced the modified revised framework for Trade Credit Policy. The norms for imports of
capital and non-capital goods were relaxed by the Reserve Bank of India (RBI), by raising the trade
credit limit to $150 million under the automatic route.
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Fresh Liquidity Infusion Through Forex Swaps announced by RBI

• The Reserve Bank of India (RBI) has decided to use a new tool for the first time to enhance liquidity in
the system using which it will buy $5 billion from the banks in a swap deal that is capable of injecting
around Rs. 35,000 crores into the system.
IDBI Bank categorized as Private Sector Lender by RBI

• The Reserve Bank of India categorized IDBI Bank as a Private Sector Bank following Life Insurance
Corporation of India (LIC) has acquired acquiring 51 per cent of the total paid-up equity share capital of
the bank.
RBI: No dilution on February 12 circular over stressed assets

• Reserve Bank of India maintained that there is no dilution in its stand regarding February 12 circular on
stressed assets recognition and resolution. The circular directed lenders to refer any loan account more
than Rs 2,000 crore under the Insolvency and Bankruptcy Code (IBC) if the loan amount is not resolved
within 180 days of default. Also it underscored IBC’s status as the cornerstone of the bad loan
resolution framework, scrapping all previous mechanisms.
RBI issues guidelines to prevent market abuse

• The Reserve Bank of India has declared some guidelines to stop misuse of price-sensitive information
by the participants in markets for financial instruments. market participants indulging in any such
activity are liable to be denied access to markets in one or more instruments for a period that may not
exceed one month at a time.
SBI, ICICI and HDFC named as Systemically Important Banks by RBI

• Reserve Bank of India named State Bank of India, ICICI Bank and HDFC Bank as Domestic Systemically
Important Banks (D-SIBs). The banks which are too big to fail are named by the RBI. These banks are
required to set aside more capital for their continued operation as per the norms by April 1.
A new Ways and Means limits for the state governments has been fixed by Reserve Bank of India
• Reserve Bank of India proposed to replace the previous expenditure-based system with a rule-based
approach in fixing new Ways and Means limits for the state governments and set up a panel to
recommend the parameters of the new system.
RBI limits HDFC to hold more than 9.9% stake in Bandhan Bank
• The Reserve Bank of India (RBI) has prohibited India’s largest mortgage lender HDFC from owning
more than the regulatory limit in Bandhan Bank. HDFC can hold 9.9% in the bank which is the
maximum a non-banking finance company can own in a private bank.
Implementation of Indian Accounting Standards deferred by RBI

• Reserve Bank of India postponed the implementation of the Indian Accounting Standards (Ind AS) by
banks until further notice for the reason of requisite legislative amendments, which are still under
consideration of the government. Ind-AS are the norms which are required to be implemented for
Scheduled Commercial Banks (SCBs), excluding Regional Rural Banks (RRBs).
RBI slaps Rs 2 crore penalty on PNB for violation of SWIFT norms

• The Reserve Bank of India slapped Rs.2crore as penalty for non-compliance of regulatory directions
regarding SWIFT operations in Punjab National Bank. The misuse of SWIFT messaging software has
lead to the massive Rs.14000 Cr fraud in the PNB which attracted the penalty.
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RBI got a huge response for its rupee-dollar swap auction to ease liquidity
• Reserve Bank of India received a huge response for introducing a $5-billion swap facility for the banks
to facilitate permanent liquidity support. Banks offered $16.31 billion at the auction against the notified
amount of $5 billion for the rupee-dollar swaps and out of this $16.31 billion received via 240 offers by
market participants, the RBI accepted $5.02 billion via 89 offers.

Loan issued by Received by Amount Points to be noted
Asian Government of India USD 455 million For financing the Andhra Pradesh Rural
Infrastructure Roads Project, which will connect 3,300
Investment Bank habitations with a population of more
(AIIB) than 250, and benefit around 2 million
people in New Delhi.
Asian Government of India USD 926 Million To operationalize two lines for the
Development Mumbai Metro Rail System and is the
Bank (ADB) Single Largest Infrastructure Project Loan
in ADB history.
Government of India USD 26 Million The loan provided is additional financing
under the ongoing loan of USD 51 million
under Assam Urban Infrastructure
Investment Program (AUIIP).
Avaada Energy Private USD50 million The investment will be done through
Limited (AEPL) ADB’s Ordinary Capital Resources and
Leading Asia’s Private Infrastructure
Fund (LEAP), a funding arm of Japan
International Cooperation Agency (JICA)
administered by ADB.
World Bank Chhattisgarh state $25.2 Million To provide support to reforms for
government expenditure management.
Government of $96 Million To provide financial support to
Uttarakhand Uttarakhand for adopting post-disaster
recovery plans.
13 states in India $250 million To provide a boost to rural income and
(Assam, Bihar, support to the National Rural Economic
Chhattisgarh, Jharkhand, Transformation Project (NRETP)
Gujarat, Maharashtra,
Madhya Pradesh, Orissa,
Rajasthan, Uttar Pradesh,
West Bengal, Karnataka
and Tamil Nadu)
Andhra Pradesh Rs. 2200 crores For implementation of the AP Health
($328-million) Systems Strengthening Project (APHSSP).
Government of India $137 million For the Additional Financing of the Dam
Rehabilitation and Improvement Project
(DRIP). The project involves more than
220 selected large dams in Karnataka,
Kerala, Madhya Pradesh, Odisha, Tamil
Nadu and Uttarakhand.
Export-Import Democratic Republic of the USD 83.11 million For financing three solar power projects
Bank of India Congo (approx in the central African country. It aims to
(Exim Bank) Rs.5,72,08,76,850) provide support for financing three solar
photovoltaic power projects with a total
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capacity of 35 megawatts in the three

provinces — Karawa, Mbandaka, and
Lusambo.
Government of Nepal 35.5 million For the construction of an educational
India Nepalese rupees campus to boost the learning
environment of the students. It was made
under the Development Partnership
Programme which is administered by the
Development Administration Partnership
division of the Ministry of External
Affairs.
IDBI Bank Life Insurance As part of the agreement, IDBI Bank will become the preferred
Corporation of India bank for LIC premium payments.
(LIC)
ICICI Lombard AnyTimeLoan.in To provide insurance cover for its lenders and borrowers.
(ATL)
Life Insurance India Mortgage To offer home buyers enhanced loan eligibility and easy loans
Corporation Housing Guarantee
Finance Ltd (LICHFL) Corporation (IMGC)
CRIF Highmark CreditVidya– data The collaborated-entity aims combine the past data of the
analytics firm customer with additional data from the other digital sources to
prepare a credit report on the basis of which lenders can decide
whom to lend.
United Bank of India HDFC Life To provide the facilities of life insurance products to its
customers through HDFC Life.
AU Small Finance Acko General To provide customized insurance products to its customers.
Bank Ltd. Insurance Ltd.
Insolvency and International Finance IFC is a member of the World Bank Group. The cooperation
Bankruptcy Board of Corporation (IFC) agreement provides a technical assistance by IFC to IBBI until
India (IBBI) 30th June; 2021.
ICICI Lombard MobiKwik To provide cyber insurance cover of Rs. 50000. It aims to
provide protection against unauthorised and fraudulent
transactions online across debit/credit cards, bank accounts
and mobile wallets.
Insolvency and Securities and For effective implementation of the Insolvency and Bankruptcy
Bankruptcy Board of Exchange Board of Code, 2016 (Code) and its allied rules and regulations, which
India (IBBI) India (SEBI) have redefined the debt-equity relationship and aims to
promote entrepreneurship and debt market,at Mumbai.
State Bank of India Bank of China (BoC) To boost business opportunities.
(SBI)
23 | P a g e

PNB ranks highest in implementation of ‘Reforms agenda’
• According to BCG-IBA Report on EASE (Enhanced Access and Service Excellence) Reforms index
released by Union Minister of Finance & Corporate Affairs, Punjab National Bank (PNB) which is fraud
hit bank, secured the top spot among all public sector banks in the implementation of ‘Reforms agenda’.
Commemorative notes to be released to mark Gandhi’s 150th birth anniversary
• A UAE based company will release 12 bank notes of zero value which is the first ever limited edition
commemorative series to mark the 150th birth anniversary of Mahatma Gandhi. Dubai based Indian
artist Akbar Saheb has designed these special notes.
DCB Bank launches Open Banking Platform for next generation banking solutions
• As part of efforts towards creating a collaborative ecosystem with enterprises, fintechs and app
developers, and enhancing customer-service delivery, DCB (Development Credit Bank) announced the
launch of its Open Banking Platform.
India’s first policy to protect bank locker launched by IFFCO Tokio General Insurance
• IFFCO Tokio General Insurance launched ‘bank locker protector policy’, the first stand-alone bank
locker cover offered by any insurance company with a plan to protect the contents of a bank locker such
as jewelry, title documents, and other valuables.
PSBloansin59minutes.com becomes largest fintech lending platform
• PSBloansin59minutes.com has become the largest fintech online lending platform, as quoted by a
report from Credit Suisse. The portal was launched in November 2018 by Prime Minister Narendra
Modi. It provides loans amounting up to Rs 1 crore to micro, small and medium enterprises (MSMEs) in
just 59 minutes.
IDBI Bank gets a nod by government to handle import and export transactions with Iran
• The government has given a nod to the IDBI Bank to handle import and export transactions with Iran.
This has been done to boost the trade between India and Iran amidst US sanctions on Iran. Iran is the
third largest supplier of oil to India, after Iraq and Saudi Arabia.
SBI and Hitachi Payment Services launched SBIPSPL to establish digital payments platform in India
• State Bank of India (SBI) and Hitachi Payment Services Pvt Ltd, a wholly-owned subsidiary of Hitachi
Ltd, launched their merchant-acquiring joint venture, SBI Payment Services Pvt Ltd (SBIPSPL), for
establishing a digital payments platform for India and other countries in the region, in Mumbai.
National Housing Bank proposes stricter regulations for Housing Finance Companies
• National Housing Bank (NHB), a mortgage sector regulator and a fully owned subsidiary of the Reserve
Bank of India (RBI) has decided to impose stricter regulations on the Housing Finance Companies
(HFCs) to prevent them from falling prey to liquidity and credit risks. One of the regulations is
increasing the capital adequacy ratio (CAR) of these companies from 12%to 15%, in a phased manner
by 31st March 2022.
Korea Exim Bank extends loan worth Rs. 4,100 crores for Vizag Metro
• The Export-Import Bank of Korea (KEXIM) proposed to provide a soft loan worth Rs.4,100 crore for the
Visakhapatnam (Vizag) metro rail project. The State government had sent a proposal to Central
government for asking KEXIM Bank to provide loan at 8-10% rate of interest. No firm decision has been
taken on this yet.
SBI links savings account, short-term loan interest rates to RBI repo rate
• State Bank of India (SBI) became the first bank to link its interest rate on savings account with balance
above Rs. 1 lakh and short-term loans to the repo rate of the Reserve Bank of India. This shall be
24 | P a g e
effective from 1st May 2019.This means that savings account interest rates and interest rate on a few
loans will change as and when the regulator changes its repo rate.
Loans worth Rs. 689 crores sanctioned by Punjab National Bank to 1,600 MSMEs via
psbloansin59minutes.com
• The Punjab National Bank (PNB) has sanctioned loans amounting to Rs. 689 crore, to over 1,600 Micro,
Small and Medium Enterprises (MSMEs) via the psbloansin59minutes.com portal. Under the Pradhan
Mantri Mudra Yojana, the bank has sanctioned loan to over 17.16 lakh accounts with total amount of Rs.
21,019 crores from the starting of the scheme till December 31, 2018.
Marshall Islands’ digital currency “SOV” to be released in 2019

• The Marshall Islands is planning to release a digital currency called “SOV” (Sovereign) in 2019,
however, the launch date of the currency has not been decided. Neema, an Israel-based company, is
partnering with the Marshall Islands government to develop the digital currency.
Rise in Banks’ reliance on bulk deposits predicted by India Ratings and Research
• India Ratings and Research (Ind-Ra) predicted that the dependence of Scheduled commercial banks on
bulk deposits shall witness an increase if credit growth is higher than deposit growth. The system level
credit growth of 12.9% year-on-year continues to be greater than 9.3% deposit growth and thus banks
are keen on harnessing more deposits.
Bank of Baroda becomes one of the first PSBs to launch creche/day-care facility for employees’ children
• Bank of Baroda has become one of the first public sector banks to launch a crèche/child day-care facility
for children of its employees. The day-care facility has been launched at its Mumbai corporate office in
Bandra Kurla Complex.
114th Foundation Day celebrated by Corporation Bank

• Corporation Bank celebrated its 114th Foundation Day at various centres of the bank across the nation
and undertook 114 Corporate Social Responsibility (CSR) activities to mark the day. Corp Ease, which is
a mobile banking app in 10regional languages, was launched by CEO P.V Bharathi.
HDFC becomes the third Indian company to achieve a market value of more than Rs.6 trillion
• HDFC Bank became the third Indian company after Reliance Industries (Rs. 8.52 trillion) and TCS (Rs.
7.49 trillion) to achieve a market value of Rs. 6 trillion, owing to a sudden upsurge in its share prices.
A new 50p ‘black hole’ coin in honour of Stephen Hawking’s work unveiled by Royal Mint
• The Royal Mint has honoured Stephen Hawking’s legacy by issuing a new 50 pence piece. The coin has
drawn its inspiration from Hawking’s work on black holes discussed in his bestselling book- A Brief
History of Time.
Russia releases coin commemorating annexation of Crimea
• A new coin that features the Crimea or Kerch Strait Bridge has been released by Russia’s central bank,
to mark Crimea’s reunification with Russia. Two million new five ruble (about $0.08, €0.07) coins were
pressed which depict an outline of the peninsula which was annexed by Russia in 2014.
India provides financial support of USD 250 million to Nepal for reconstruction of infrastructures after
earthquake
• India has provided a financial support worth USD 250 million to Nepal, to reconstruct infrastructure in
fields of housing, education, health and cultural heritage, which had been ruined by the earthquake that
25 | P a g e
took place on April 2015. The decision of providing grant was a part of an agreement signed between
Indian Embassy in Kathmandu and the Central Building Research Institute (CBRI), Rourkee.
Bank of India raises Rs. 660 crores via sale of shares to employees
• Bank of India (BoI) declared that it has raised an amount of Rs 660.80 crore by issuing shares to
employees under Employee Share Purchase Scheme (ESPS). 6,25,52,188 shares worth Rs 10 each were
issued by the bank to its eligible employees.
Small finance banks may clip at 30%, needs Rs. 6,000 crore capital by FY23: ICRA
• A report by ICRA (formerly known as Investment Information and Credit Rating Agency of India
Limited) has stated that Small finance banks (SFBS) are expected to witness a growth rate of 25-30%
over the medium-term if they arrange an additional external capital in the range of Rs 4,000-6,000
crore till FY23.
Doorstep Banking for Senior Citizens, Differently-Abled And Infirm Persons introduced by SBI
• The State Bank of India has initiated a new ‘doorstep banking’ service for senior citizens, differently-
abled and infirm account holders as well as visually impaired customers. Cost for availing these services
would be Rs 100 for each financial transaction and Rs 60 for each non-financial transaction.
ICRA states that fresh NPAs will moderate in FY 2020

• According to ICRA, fresh NPAs in the banking sector are expected to come down 1.9-2.4 % in FY’20 from
3.7% in FY 19, owing to a dedicated NPA recovery mechanism and write offs by banks. Public sector
banks (PSBs) will earn profit after 4 continuous years of losses.
Karur Vysya Bank raises Rs 487 crore through private placement of Tier II bonds
• Karur Vysya Bank announced that it has raised Rs 487 crore through Basel-III compliant bonds for
funding its growth plans. The decision was taken in the Capital Raising Committee of the board.
Aviva Life Insurance launches special mentorship programme ‘Wings’

• Aviva Life Insurance announced the launch of ‘Wings’, a specially designed mentorship program to
empower the female workforce. Wings program is an initiative of the SHE division of Aviva Life
Insurance for mentoring all the women employees in Aviva.
ICICI Prudential Bharat Consumption Scheme was launched by ICICI Prudential Mutual Fund
• ICICI Prudential Mutual Fund launched ICICI Prudential Bharat Consumption Scheme to get advantage
from the Indian consumption market, which is considered as one of the fastest growing consumption
markets globally. Nifty India Consumption Index is the benchmark for the Scheme. It will be managed
by Rajat Chandak, Dharmesh Kakkad.
Bank of Baroda inked MoU with 6 firms to develop “Baroda Kisan”

• Bank of Baroda has signed memorandum of understanding (MoU) with six firms namely Skymet
Weather Services, Weather Risk Management Services, BigHaat, Agrostar India, EM3 Agri Services and
Poorti Agri Services to develop “Baroda Kisan”. It will provide solutions for all major agricultural
requirements through its holistic approach.
Govt decides to infuse Rs 5042 Cr into Bank Of Baroda ahead of the merger
• The government has decided to infuse a capital of 5,042 crore rupees into state-owned Bank of Baroda
ahead of its merger with two other public sector lenders Dena Bank and Vijaya Bank, which would be
effective from 1st April 2019. According to the Scheme of Amalgamation, shareholders of Vijaya Bank
26 | P a g e
and Dena Bank will get 402 equity shares and 110 equity shares of BoB respectively for every 1,000
shares held.
India’s CAD widens to 2.5% of GDP in 3rd Quarter

• Current account deficit (CAD) of India has widened to 2.5% of GDP in the 3rd quarter of the current
fiscal year primarily on account of a higher trade deficit though the foreign exchange reserves which
continued to soar.
Manappuram Finance withdrew a release which had issued earlier regarding securing debt funding
from NABARD
• Manappuram Finance, a Non-banking finance company withdrew a release which had issued earlier
regarding securing Rs 695 crore debt funding from NABARD. The release titled 'Manappuram Finance
secures Rs 695 crore debt funding from NABARD' is being "retracted with immediate effect due to
factual inaccuracies in statement as well as transaction.
The interest rate on small-saving schemes are kept unchanged by the Government
• The interest rates on small-saving schemes including Public Provident Fund (PPF) and National Savings
Certificate (NSC) have been kept unchanged by the Government for the April-June quarter of the
financial year 2019-20. The interest rate PPF and NSC will continue at 8 percent, while the interest rate
of Kisan Vikas Patra (KVP) will be at 7.7 percent as against 7.3% earlier and mature in 112 months.
Average base rate to be charged by NBFC and MFI is set at 9.21% by RBI
• Reserve Bank of India set the average base rate to be charged from borrowers by Non- Banking
Financial Companies (NBFC) and Micro Finance institutions (MFI) at9.21% for the first quarter (April to
June).

GROWTH RATE:
Moody In 2019 and 2020 7.3 per cent
Central Statistics Office (CSO) 2018-19 Revised to 7% from 7.2%
Fitch rating in its Global Economic Outlook FY19-20 6.8%. FY21 -7.1%
India’s Unemployment Rate shot up to 7.2% in Feb’19: CMIE

• The unemployment rate in India rose to 7.2% in February 2019, the highest since September
2016, and up from 5.9% in February 2018, according to data compiled by the Centre for
Monitoring Indian Economy (CMIE).
OECD cuts global growth forecast over trade

• The Organisation for Economic Co-Operation & Development (OECD) has cut the growth
forecasts for the global economy to 3.3% in 2019 and 3.4% in 2020, owing to trade disputes
and uncertainty over Brexit that would largely affect the world commerce and businesses.
Import of Solid Plastic Waste banned by India

• The government has put a complete ban on import of solid plastic waste/scrap into the country after
amending the Hazardous Waste (Management & Trans-boundary Movement) Rules on March 1. Import
27 | P a g e
of plastic was earlier partly banned as it was prohibited in special economic zones (SEZ) but allowed by
Export-Oriented units (EOUs) who would obtain it from other countries in the form of post-recycling
resources.
Govt increased the income tax exemption for gratuity from Rs 10 lakh to Rs 20 lakh
• Union Labour Ministry decided to double the income tax exemption to Rs.20lakh from the existing
Rs.10lakh for gratuity. The enhancement of gratuity under section 10 (10) (iii) of the Income Tax Act,
1961 to Rs.20lakh will benefit employees who are not covered under the Payment of Gratuity Act, 1972
and the employees of Public Sector Undertakings (PSUs).
CII released ‘Suggested Election Manifesto’ for political parties

• Confederation of Indian Industry (CII) released a ‘Suggested Election Manifesto for political parties to
achieve an average growth rate of 8% per annum in the next 5 years. The industry grouping has called
for compressing Goods and Services Tax (GST) rate slabs to 2% or 3% and lowering corporate income
tax to 18% with no exemptions to make Indian tax rates globally competitive.
India’s Data Usage forecasted to rise at 73% CAGR by 2022

• According to the Assocham – PwC Study, India’s data consumption is expected to grow at a
Compounded Annual Growth Rate (CAGR) of about 72.6% by 2022. In 2013 the average monthly spend
on voice services was Rs.214 compared to Rs.173 spend on data which became Rs.124 on voice and
Rs.225 on data in 2016.
Total liabilities of govt mounted to Rs 83.40 lakh crore in Q3

• According to Finance Ministry Report during the period October to December 2018, the total liabilities
of the government increased to Rs.83.40 lakh crore from 82.03 lakh crore in the previous quarter of the
current fiscal.
Saudi Arabia became the world’s largest importer of weapons, the position held by India for a decade:
SIPRI
• India lost its position as the world’s largest importer of weapons, which it held for over a decade, with
Saudi Arabia topping the global share of arms imports between 2014 and 2018, as per the data
published by the Stockholm International Peace Research Institute (Sipri), the leading Stockholm-based
think tank that measures weapons imports over five-year periods.
India sets ‘aspirational’ target for engineering exports by 2025

• According to an EEPC India-Deloitte strategy paper, India can achieve a three-fold
“aspirational” increase in its engineering export to reach USD 200 billion by 2025, if concerted
efforts are made by the government and Industry to develop a conducive ecosystem, and
ensuring inputs at competitive prices.
First TIR shipment from Afghanistan arrived in India via Chabahar Port
• The first shipment under the United Nations ‘Transports Internationaux Routiers’ (TIR)
convention arrived in India from Afghanistan through Iran’s Chabahar Port. India had joined
the TIR Convention (the United Nations Customs Convention on International Transport of
Goods under cover of TIR Carnets) on June 15, 2017.
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Microsoft launched Project ‘Sangam’ to boost India’s Swachh Bharat Mission

• Microsoft has announced that it has partnered with The Ministry of Housing and Urban Affairs
(MoHUA) to promote its Project ‘Sangam’ which is developed to accelerate Swachh Bharat
Mission (SBM) in India. It is one of the world’s largest Cleanliness Programme. Project Sangam
is a cloud-hosted, mobile-first community learning platform.
India posts highest growth in patent applications in WIPO during 2018

• India registered the highest growth of 27% among countries in patent applications in 2018
with the World Intellectual Property Organization (WIPO). India filed 2013 international
patent applications during the year. The list has been topped by United States.
SpiceJet get IATA membership becoming first Indian low-cost carrier to receive
• SpiceJet received the International Air Transport Association (IATA) membership, becoming the first
among the Indian low-cost carriers. The membership will be helpful for SpiceJet for its expansion plans
by to have code shares and agreements with other carriers.
Integral Coach Factory of Chennai became the world’s largest rail coach manufacturer
• Indian Railways Integral Coach Factory (ICF) has surpassed the top Chinese manufacturers
after creating a 40% record increase in its production. With this, Indian Railway’s oldest and
premier coach manufacturing unit becomes the single largest rail coach manufacturer in the
world.
Government clears proposal to buy 10 lakh hand grenades for Indian Army
• Union Defence Minister cleared the proposal to purchase 10 lakh hand grenades for Indian
Army under ‘Make in India’ programme. It costs around Rs. 500 crores which will replace the
existing HE-36 grenades manufactured by the Ordnance Factory Board (OFB).
Government outreached divestment target of Rs 80,000 crore for 2018-19

• Government outreached its disinvestment target of Rs 80,000 crore for the current financial
year (2018-19) by Rs 5,000 crore. The disinvestment target has been fixed at Rs 90,000 crore
for the next financial year (i.e. FY 2020).
Adani Port becomes the first Indian port operator to achieve a new record of handling 200 million
tonnes (MT) cargo movement
• Adani Port and Special Economic Zone (APSEZ), a part of Gautam Adani-led Adani Group
becomes the first Indian port operator to achieve a new record of handle 200 million tonnes
(MT) cargo movement in 2018-19. It has set an aim to double growth up to 400 MT by 2025.
Commerce Ministry unveils Blockchain-based app for Coffee farmers

• The commerce ministry has unveiled a blockchain-based coffee e-marketplace which will facilitate
farmers to integrate with markets to get aware of fair prices for the commodity.
GRSE becomes 1st Indian Shipyard to deliver 100 Warships

• Garden Reach Shipbuilders & Engineers Limited has delivered its 100th Warship which is a
Landing Craft Utility, L-56, to the Indian Navy. This has made GRSE the first Indian Shipyard to
make and deliver 100 warships to the Indian Navy, Indian Coast Guard and Mauritius Coast
Guard.
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Laurus Labs signed pact with Global Fund to supply ARV drugs
• Pharma Laurus Labs of Hyderabad has signed an agreement with Global Fund, an organization
working towards ending AIDS, tuberculosis and malaria as epidemics, for a period of three-
and-a-half years.
2019 Banking & Economy – APRIL

RBI in News
RBI makes NPA divergence rule easier for banks
• The RBI brought leniency in its rule on 1st April, 2019 by asking banks to disclose bad loan divergences
in their financial statements on the condition if divergence exceeds 10% of profit prior to provision and
contingencies.
RBI Sets WMA Limit For Government At Rs 75000 Crore For The First Half Of The FY 2019-20
• The Reserve Bank of India has set the limits for Ways and Means Advances (WMA) to Rs. 75000 crore
for the first half of the financial year 2019-20. As and when the government of India utilises 75% of the
WMA limit, the central bank would activate fresh floatation of market loans. The rate of interest issued
on the Ways and Means Advances (WMA) will be Repo Rate while the overdraft will exceed the Repo
Rate by flat 2%.
First Bi-monthly Monetary Policy Statement for 2019-20-RBI cuts repo rate by 25 basis points
• Reserve Bank of India’s six-member monetary policy committee chaired by RBI Governor Shaktikanta
Das released its 1st Bi-Monthly Monetary Policy for 2019-20. RBI has reduced 0.25 basis points in the
Policy Rates under liquidity adjustment facility (LAF) with immediate effect. The Change in Policy rates
are as follows:
 Repo Rate 6.00 %
 Reverse Repo Rate 5.75 %
 Marginal Standing Facility Rate 6.25 %
 Bank Rate 6.25 %
RBI alters LCR norms to enhance cash position of banks

• RBI has altered the LCR (Liquidity Coverage Ratio) norms to offer an additional 2% window to lenders.
The central bank has brought in this alteration in order to improve the cash position of banks by
harmonising liquidity requirements and giving away extra money to lenders.
Reserve Bank of India gave some guidelines for banks to set up new currency chests
• The Reserve Bank of India gave some guidelines for banks to set up new currency chests, including a
minimum area of 1,500 square feet for strong room and should have a processing capacity of 6.6 lakh
pieces of banknotes per day. The guidelines are based upon the recommendations of the "Committee on
Currency Movement" (CCM) chaired by DK Mohanty, which was constituted by RBI in 2016.
RBI grants 12 years to LIC for reducing stake in IDBI Bank

• Life Insurance Corporation (LIC), the largest insurance company in India, got 12 years from RBI for cut
down stake in IDBI Bank. LIC is the lender’s major shareholder, and it has a 51 per cent stake in the
Bank. After 12 years LIC has to decrease stake in IDBI Bank by 10 per cent to 40 per cent.
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RBI Permitted Reinsurance Brokers to Open Foreign Currency Accounts

• The Reserve Bank of India sanctioned reinsurance brokers to initiate non-interest bearing foreign
currency accounts with banks for undertaking transactions. The Insurance Regulatory and
Development Authority of India (IRDA) had issued notification and following this he RBI declared
Foreign Exchange Management (Foreign Currency Accounts by a resident person in India) Regulations,
2015 – Opening of Foreign Currency Accounts by Re-insurance and Composite Insurance brokers.
The RBI issued Rs. 50 denomination banknotes in Mahatma Gandhi (New) Series bearing the
Governor’s signature
• The Reserve Bank of India (RBI) issued Rs. 50 denomination banknotes in Mahatma Gandhi (New)
Series that bore Shri Shaktikanta Das’ (Governor of RBI) signature. The design of these notes is exactly
similar to the ‘Rs 50 banknotes’ in Mahatma Gandhi (New) Series.
RBI becomes the first APAC (Asia-Pacific) central bank to begin interest rate easing cycle
• The Fitch ratings notified that the RBI becomes the first central bank in the Asia-Pacific region (APAC)
to begin an interest rate easing cycle floated by benign food inflation and easier global financial
condition. In the 4 months of 2019, the RBI has cut policy interest rates 2 times by 0.25% each to one-
year low of 6%. This is the 1st back-to-back rate cut since the MPC was formed in 2016.
RBI gives HDFC’s proposal for holding 9.9% stake in Bandhan Bank
• The RBI has granted approval to HDFC Ltd for holding up to 9.9% stake in Bandhan Bank following the
Gruh Finance deal. Gruh Finance is the housing finance arm of HDFC Ltd and was taken over in January
by Bandhan Bank in a share-swap deal.
RBI divests entire stake in NHB and NABARD to the central government
• On the recommendations of the second Narasimham Committee report and the discussion paper by RBI
titled “Harmonizing the Role and Operations of Development Financial Institutions and Banks” stated
that RBI has divested its entire stake in National Housing Bank (NHB) and National Bank for Agriculture
and Rural Development (NABARD) to the central government for Rs 1,450 crore and Rs 20 crore
respectively. Now the central government holds a 100 percent stake in both these financial institutions.
Fintech Start-Ups Allowed to Test Regulatory Sandbox: RBI

• Recently, Reserve Bank of India (RBI) released a 14page draft document named "Enabling Framework
for Regulatory Sandbox" in which RBI proposes that Fintech start-ups can set up regulatory sandbox or
live-testing of innovative products and services in segments such as digital KYC, retail payments and
data analytics among others in the financial sector. The concept of Regulatory Sandbox (RS) was
proposed by a committee headed by RBI Executive Director Sudarshan Sen.
RBI (Reserve Bank of India) gives approval for e-mandates to facilitate Internet Banking, Debit Cards
• The National Payments Corporation of India (NPCI) has received approval from the Reserve Bank of
India (RBI) to implement e-mandates (electronic mandates) for internet banking and debit cards, which
will allow the users to automatically deal with their recurring payments. The limit for each mandate is
set at Rs 1 Lakh, and depending on the usage, the organisation will review the limit from time to time.
RBI is going to issue new Rs 20 denomination banknote with greenish-yellow colour

• The Reserve Bank of India (RBI) will issue new Rs 20 denomination banknotes having a base colour of
greenish -yellow with size of 63 X 129 mm. The first Rs 20 notes were issued in the Mahatma Gandhi
Series in August 2001. The new note will have a motif of Ellora caves on the dorsal side.
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RBI notified that banking ombudsman saw 25% rise in customer complaints in FY18 over FY17
• The Reserve Bank of India (RBI) notified that the banking ombudsman received 24.9% more customer
complaints in FY18 over FY17, with 21 offices of the banking ombudsman receiving 1,63,590
complaints in 2017-18, thus marking a hike of 24.9% over 2016-2017. Overall, the complaint disposal
rate was 96.5% in FY18 and 92% in FY17.
RBI extends the previous ombudsman scheme to non-deposit taking NBFCs having asset size of Rs.100
crore or higher
• The objective of this was to provide a cost-free and swift complaint-redressal mechanism relating to
shortage in the services, concerning loan and other issues by NBFCs under the scheme.
Reserve Bank of India (RBI) has proposed strict rules on opening and running of current accounts of
corporate borrowers in order to tackle fund diversion.
• RBI had notified that the banks with collection accounts will have to transfer funds to the current
account and the current accounts could be opened only with the lead bank of a lending association. The
rules would be applicable to corporates who have borrowed and used credit facilities of more than Rs
50 crore from the banking system.

Loan issued by Received Amount Points to be noted
by
Asian Development India USD 3.88 It is the highest ever loan amount since sovereign operations began
Bank (ADB) billion in the country in 1986. ADB committed several projects like a USD
100-million loan to Ostro Kutch Wind in Gujarat.
Reserve Bank of India Rwanda 266.6$ The funding for the projects has been done in 3 distinct
(RBI)’s Exim Bank million tranches.The names of the projects are as follows:
ØFor supporting agricultural projects
ØFor the development of Special Economic Zones (SEZs)
ØFor financing road projects in Rwanda.
UNSG India USD 38 Till now, the total amount which has to be paid to troops and police-
million contributing countries (TCCs/PCCs) with respect to active
peacekeeping missions was USD 265 million.
Karnataka Bank Bharti Axa Life To distribute the latter’s life insurance products to provide
Insurance Company insurance solutions to the customers of Karnataka Bank
Canara Bank National Thermal Power The Loan facility prolonged at an interest rate linked to 3-
Corporation(NPTC) Month MCLR of Bank. The lent amount would be utilized to
part finance company’s capital expenditure. The tenure for
the loan is 15 years.
HDFC Bank Bombay Stock Exchange To spread more awareness about the benefits of listing
(BSE) startups as well as to strengthen BSE startup platform.
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State Bank of PAISALO Digital Limited With the profound vision of empowering the ‘Agri’, ‘MSME
India (SBI) segment’ and small businesses, PAISALO Digital Limited
signed the first co-origination loan agreement (designed at
Rs.10,000 to 2 lakh) with State Bank of India (SBI).
Bank of M1Xchange Trade Receivables Discounting System (TreDS) is a digital
Maharashtra TReDSplatform platform to assist MSMEs to get their bills financed at a
(BoM) competitive rate through a vendue where multiple registered
financiers can participate.
Bank of Baroda Srei Equipment Finance To offer joint loans for infrastructure equipment under a new
Ltd agreement. Sourcing of loans will be facilitated through
iQuippo, which is a Kanoria Foundation initiative.
Airtel Payments Bharti AXA General For a two-wheeler insurance product offering which is
Bank Insurance available on MyAirtel App
Bajaj Allianz Bajaj Allianz Life To launch their 1st product titled 'Total Health Secure Goal'.
General Insurance The product is a combination of 2 existing plans, namely,
Insurance Health Guard policy by Bajaj Allianz General Insurance and
iSecure policy by Bajaj Allianz Life Insurance.
Syndicate Bank BEML (Bharat Earth For financing Earth Moving and Construction Equipment
Movers Limited) which is manufactured by BEML
Aegon Life Mobikwik The insurance product launched is termed as the Aegon Life
Insurance Group Term Plus Plan.To launch a Rs 20 smartdigital
insurance product in order to protect its wallet users from
death and accident related disability cover for up to Rs 2 lakh.
RBL Bank Wirecard To promote financial inclusion in India. Also, SoftBank
invested EUR 900 million in Wirecard. Wirecard will issue
convertible bonds to SoftBank with terms of five years.

Bank of Baroda becomes the 3rd largest bank after its merger with Dena Bank & Vijaya Bank
• On April 1, 2019, the merger of Dena Bank and Vijaya Bank into Bank of Baroda has come into effect.
With this amalgamation, Bank of Baroda becomes the India’s second largest public sector bank and
third largest commercial bank after State Bank of India (SBI) and HDFC Bank. It was India’s first ever
three-way merger of banks.
Reliance Mutual Fund partnering with Google, becomes the first Indian company to launch voice-based
financial transactions
• Reliance Nippon Life Asset Management (RNAM) has joined hands with Google to enable the customers
of Reliance Mutual Fund to carry out voice-based financial transactions. With this, RNAM becomes the
first company in India, to provide conversational interface.
Government infused Rs 205 crore into Bank of Maharashtra

• Government infused a capital of Rs. 205crore into the state owned Bank of Maharashtra in lieu of
preferential allotment of shares. In this regard, the bank has issued and allotted its 15,47,16,981 equity
shares at an issue price of Rs 13.25 per share to the govt.
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One97 Communications-owned Paytm Money Gets SEBI Approval for Stock Broking
• One97 Communications-owned Paytm Money, the wealth management arm of Paytm, has got approval
from the Securities and Exchange Board of India (SEBI) to start offering a stock broking service such as
the ability to trade in equities and cash segments, derivatives, and exchange-traded funds (ETFs) among
other exchange-traded products.
Kotak Mahindra Bank Becomes The First Lender To Impose Charges On UPI Transactions, Namely,
Paytm, Google Pay, PhonePe among others
• For Kotak Mahindra Bank’s account holders, the first 30 peer-to-peer UPI fund transfer would be free of
cost. Once a person exceeds 30 UPI transactions, he will be charged Rs. 2.50 per transaction for of Rs.
1000 or less. For transfers exceeding Rs. 1000, the bank will charge Rs. 5 plus 18% GST. Read full detail
here
UPI transaction charges have been reduced by NPCI for promoting the uses
• For promoting the adoption of Unified Payments Interface (UPI), the National Payments Corporation of
India (NPCI) has reduced the transaction fees up to Rs 1,000 by 60%. For UPI transactions up to
Rs.1000, the charge has been cut to 10 paise from 25 paise, and for transactions above Rs.1,000 has
been retained at 50 paise.
For the first time, SEBI agrees to create ‘Airport Specific Fund’ worth Rs. 10,000 crore
• Under "Category II Alternate Investment Fund" (AIF), for the first time SEBI (Securities and Exchange
Board of India) has approved an "airport' specific fund". The name of the fund is "Taking Off To the
Future Airport Fund". It can raise a capital amounting to 1.5$bn (Rs. 10,000 crore). The Sponsor and
Investment Manager of the fund is based in Chennai and is termed as 'Taking Off To The Future
Investment Management LLP'.
Emirates Islamic, a bank in Dubai, becomes the world’s first Islamic bank to launch banking via
WhatsApp
Emirates Islamic bank launched a chat banking facility for its customer via Whatsapp and become the
world’s 1st bank in the Islamic banking sector to give such facility. It was supported by Infobip.
HDFC AMC claims first position in terms of Assets

According to data released by the AMFI (Association of Mutual Funds in India), India’s asset
management companies have owned assets under management worth Rs. 24.46 trillion. HDFC Asset
Management Co. Ltd has achieved the top position with an average AUM of Rs. 3.42 trillion.
RBL Bank partners with CreditVidya to leverage customer experience

• RBL Bank has partnered with CreditVidya to enhance the lender’s customer experience (by offering
them relevant credit products) and construct customised offerings for over 15 lakh customers. It had
first partnered with CreditVidya in 2018 for instant and automated verification of employment details
of salaried card applicants.
Govt keeps interest rate unchanged for General Provident Fund at 8% for April-June, 2019-20
• For the first quarter of current financial year, the government has stuck to the previous (January-March
quarter of 2018-2019) interest rate for (GPF) General Provident Fund, Contributory Provident Fund
(CPF) and other schemes at 8%. According to the new rule, only after the completion of 10 years of
service (as against 15 years of service previously), employees can withdraw the fund for selected
purposes.
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A unique proposition to pay electricity bill on EMIs launched by Bajaj Finserv

• A unique proposition to pay electricity bill on EMIs has been launched by Bajaj Finserv through its
lending arm Bajaj Finance Ltd. through the campaign of #BijliOnEMI. Customers can avail an Insta
Credit loan in their Bajaj Finserv Wallet to pay their electricity bills on EMI.
IDBI Bank launches NRI-Insta Online, A paperless account opening facility for NRIs
• IDBI Bank has launched ‘NRI-Insta Online’ account opening process for NRIs residing in Financial
Action Task Force (FATF) member countries to open an account in the Bank without visiting the branch
or submitting paper documents such as physical documents as well as KYC proofs. This online facility is
available in IDBI Bank’s website.
A quasi-cryptocurrency called as “Learning Coin,” launched by The World Bank and the International
Monetary Fund (IMF)
• Two international financial institutions the World Bank and the International Monetary Fund (IMF)
have launched a private blockchain and quasi-crypto currency called as “Learning Coin” for better
understanding of blockchain technology and the function of crypto assets. The asset will only be
available for use within the IMF and the World Bank. It has no monetary value, means it is not a true
cryptocurrency.
Cholamandalam MS General Insurance receives ISO 31000:2018 Certification

• An insurance giant Cholamandalam MS General Insurance Company Limited has received ISO
31000:2018 certification by TUV India for applying risk management system which conforms to the
prescribed standards. ISO 31000:2018 is an international risk management standard developed by
International Organisation for Standardization (ISO).
Indiabulls General gets preliminary nod to foray into non-life business

• Indiabulls General Insurance has receivedR1 approval to its proposed general insurance business and
preliminary toapproval foray into the non-life businessfrom the Insurance Regulatory and Development
Authority of India (IRDAI) respectively.
Life and Non-life insurers witness 11% and 13% rise in premium respectively
• According to the Insurance Regulatory and Development Authority of India (IRDAI) data, after a very
low growth phase, life and non-life premium income of insurance companies have registered
substantial growth in financial year 2019. Life insurer’s premium income grew 11% in FY19 over 2018
and non-life insurance firms witnessed a 13% rise in their total premium income to Rs 1.70 lakh crore
in the financial year ended March 2019.
Canara Bank: India’s First Public Sector Bank To Meet RBI’s EMV Mandate
• Global provider of real-time electronic payment and banking solutions, ACI Worldwide, notified that
India’s public sector bank, Canara Bank has successfully rolled out new functionality that supports EMV
(Europay, MasterCard and Visa) card acquiring across its ATM (Automated Teller Machine) network
and Aadhaar Authentication, thus becoming the 1st in the market to leverage ACI’s UP Retail Payments
solution and the 1st public sector bank to shift to EMV chip and PIN for card based transactions across
the country’s vast ATM network.
SBI General launched cyber defence insurance

• SBI General Insurance has launched its new product – cyber defence insurance to protect businesses
from financial and reputational losses due to cyber attacks. Its Cyber Defense comes with CyRUSS
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(Cyber Risk Underwriting & Solution Suite) which is a cloud-based tool for Commercial Cyber polices
including risk assessment, ongoing risk management, and claim management.
Deposits in Jan Dhan accounts are set to cross Rs 1 lakh crore mark
On 21st April 2019, the total deposits in Jan Dhan Account are set to cross Rs 1 lakh crore soon. On 3rd
April, the total balance in the Jan Dhan accounts was at Rs 97,665.66 cr. Recently, the government
increased the accident insurance cover to Rs 2 lakh from Rs 1 lakh for new accounts opened after 28th
August 2018.
The Authorised capital of Allahabad Bank raised to Rs. 8000 crore by the government
The central government has increased the authorized capital of state-owned Allahabad Bank from Rs.
3,000crore to Rs. 8,000crore after consultation with the Reserve Bank of India.
Kotak Mahindra Bank becomes the first Destination Bank to launch debit card based e-mandates On
NPCI’s E-Mandate 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, thus being the first ever Destination Bank to go live with both Net Banking and
Debit Card-based e-mandate authentication.
State Bank of India (SBI) launched India’s first ‘Green Car Loan’ (Electric Vehicle) to encourage
customers to buy electric vehicles
• On World Earth Day- April 22, 2019 the State Bank of India (SBI) has launched India’s first ‘Green Car
Loan’ (Electric Vehicle) to encourage customers to buy electric vehicles. The new scheme ‘Green Car
Loan’ will offer loan at 20 basis points lower than the interest rate on the existing car loan schemes. The
scheme comes with the longest repayment period of up to 8 years.
Finance Ministry approves EPF interest rate hike to 8.65% for 2018-19
• The Department of Financial Services, a wing of the Ministry of Finance, has approved an Employee’s
Provident Fund (EPF) interest rate hike of 10 basis point to 8.65 percent for 2018-19, as decided by the
retirement fund body Employee’s Provident Fund Organisation (EPFO).
HDFC Bank and Max Bupa launch AnyTimeHealth machines to distribute health insurance products
• Max Bupa, India’s health insurance company collaborated with HDFC Bank, India’s leading private
sector banks, and launched ‘AnyTimeHealth (ATH) machines. The machine is an automated, web-based
model that permits customers to avail health assessment, namely, Body Mass Index’, ‘Blood Pressure’,
‘Body Type & Fat percentage’, ‘Muscle percentage’, ‘Bone Mass’, ‘Body Temperature’.
Real-Time Voice Banking Platform Launched named FSS Voice Commerce

• Financial Software Services (FSS) has launched FSS Voice Commerce which is a real-time voice banking
platform to provide customers with personalized banking interactions. It uses machine-learning
language processing techniques for analysis and synthesis of language and speech to deliver the service.
Canara Bank and its life insurance partner Canara HSBC OBC Life launched ’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 percent) and Oriental Bank of
Commerce (23 percent) and HSBC Insurance Holdings (26 percent), the Asian insurance arm of HSBC.
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SC gave ultimatum to RBI to disclose information under RTI Act

• Recently, Supreme Court bench headed by Justice L Nageswara Rao has directed the Reserve Bank of
India (RBI) to disclose information related to its annual inspection report of banks under the Right to
Information (RTI) Act until and unless they are exempted under law. The bench has also directed the
RBI to review its policy to disclose information relating to banks under RTI.
Bharti AXA General Insurance, the 1st company to sell 2-wheeler policies via WhatsApp, by partnering
with Wishfin
• Bharti AXA General Insurance, the first company in the domestic non-life insurance industry has
collaborated with web aggregator, Wishfin Insurance to sell 2-wheeler policies via social WhatsApp
named ‘Buy Two-Wheeler Insurance on WhatsApp’. This policy is an instant, effortless and additional
customer service option avaiable for the policyholders.
Paytm Launches Recurring Payment Options for startups

• Noida-based e-commerce payment system and digital wallet company, Paytm launched a new option of
recurring payments for its merchants to enable recurring payments. Recently it also started its own
subscription business at an annual fee of Rs 750 where consumers pay at regular intervals.
BUSINESS & ECONOMY NEWS

GROWTH RATE:
Fitch 2019-20 6.8%. and 7.1% in FY 2020-21.
Asia Development Bank 2019-20 7.20%
World Economic Outlook (WEO) released by 2019 7.3% . 7.5% in 2020.
International Monetary Fund (IMF)
World Bank 2019-20 7.5 %.The real GDP growth is estimated at 7.2
per cent in FY18/19.
India Ratings and Research 2019-20 7.3 %
Fitch kept India’s rating unchanged at BBB- with Stable outlook

• Fitch Rating affirms India’s sovereign rating at the lowest investment grade of BBB-with a stable
outlook. The growth rate of India forecasted by Fitch is 6.8% in financial year 2019-20 and 7.1% in FY
2020-21. Since 2006, this is the 13th year in a row that India is getting "BBB" ranking from Fitch.
Anti-Dumping Duty has been imposed on the import of Solar Components from four nations
• In order to safeguard domestic players against cheap shipments, Department of Revenue, Government
of India has imposed anti-dumping duty up to USD 1559 (Rs 1,07,844) per tonne on the import of
certain solar cell components (Ethylene Vinyl Acetate Sheet for Solar Module) from China, Malaysia,
Saudia Arabia and Thailand for a period of 5 years.
GST Revenue collection for March, 2019 recorded Highest Collection in the FY 2018-19
• Total Gross GST revenue collected in the month of March, 2019 has crossed the Rupees One Lakh Crore
mark as it has recorded the collection of Rs.1,06,577 crore of which CGST is Rs. 20,353 crore, SGST is
Rs.27,520 crore, IGST is Rs.50,418 crore (including Rs. 23,521crore collected on imports) and Cess is
Rs. 8,286 crore (including Rs. 891crore collected on imports).
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BNP Paribas Cardif sold 5 crore shares in SBI Life Insurance for 2,889 crore
• The foreign partner of SBI Life Insurance, BNP Paribas Cardif has sold 5 crore shares of the company for
Rs 2,889 crore to increase its public shareholding to 25% of its paid-up equity share capital on or before
October 2, 2020. The average price of equity share during the sale was Rs 577.93 per equity share.
Micromax Co-founder unveils India’s first AI-enabled e-motorcycle brand

• Micromax co-founder Rahul Sharma has announced his incursion into smart mobility with the
launching of an AI (Artificial intelligence) enabled electric motorcycle. This launch is expected to hit the
roads by June this year. He has set up Revolt Intellicorp Pvt Ltd, headquartered at Gurugram.
BSNL has received the In-Flight Connectivity License from the Department of Telecommunications
(DoT)
• 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.
Indian APA regime steps forward as CBDT signs 18 APAs in March 2019
• The Central Board of Direct Taxes (CBDT) has entered into 18 APAs (Advance Pricing Agreements)
inclusive of 03 Bilateral APAs (BAPAs) during the month of March 2019. The total number of APAs
entered into by the CBDT in 2018-19 is 52, which is inclusive of 11 BAPAs. As of now, the number of
APAs entered into by the CBDT is 271, which includes 31 BAPAs.
A new seller-funding programme named "Amazon Wings" was launched by Amazon India
• A new seller-funding programme named "Amazon Wings" has been launched by Amazon India in
partnership with Mumbai based Ketto, a crowd-funding platform to help the small businesses and
entrepreneurs to raise funds through latter. Also, it launches a dedicated microsite to feature
fundraisers initiated by sellers by which they can raise small ticket funds starting from as little as Rs
50,000
NIIF and ROADIS on a joint venture to invest $2 billion in Road Projects

• The National Investment and Infrastructure Fund (NIIF) and global private infrastructure operator
ROADIS (owned by Public Sector Pension Investment board abbreviated as PSP investment) have
jointly set up a platform for investing up to $2 billion in road projects in India. ROADIS is the largest
European highway concession manager in India with 710 km of highways within its ownership and
management.
PFS in a joint venture with USICEF finances solar projects in India

• PTC India Financial Services (PFS) an Infrastructure finance company has partnered with
(USICEF) the US-India Clean Energy Finance to leverage funds for solar projects in India. This
innovative venture can contribute to achieve India’s distributed energy target of 40 GW
(gigawatt) by 2022.
Centre meets Fiscal Deficit of 3.4% in 2018-2019

• India has met the revised fiscal deficit target of 3.4% of gross domestic product in fiscal year 2018-
2019. Target has been achieved by cuts in state spending and higher borrowings from small savings
funds. Centre has missed the tax collections target by over 1 trillion rupees which includes around 500
billion rupees shortfall in income tax receipts.
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India’s steel demand to grow by over 7% in FY19, FY20

• As per the Indian Steel Association, India’s steel demand is grown by over 7 percent in 2019 and 2020,
due to the sectors like construction, capital goods, and railways. The forecast for steel demand growth is
7.1 percent in 2019 and by 7.2 percent in 2020. The consumption of steel in India is likely to cross 100
million tonnes (MT) mark in 2019.
RailWire Wi-Fi is live at 1600 railway stations in India

• Railtel, neutral telecom infrastructure providers in India, turned 1600 railway stations in India into
RailWire WiFi zone. Santacruz railway station in Mumbai is the 1600th station to become a RailWire
Wi-Fi zone. RailWire is a retail Broadband initiative of the RailTel.
Indian Government clears procurement of 464 Russian tanks under the T-90 Project
• The Cabinet Committee of Security has cleared the procurement of 464 Russian tanks from Russia
under T-90 project in a deal worth over Rs 13,500 crore. The tanks would be given to the Armoured
Corps of the force which will be furthered used by them for deployment along the India-Pakistan
border.
IMO launches new rules on electronic information exchange

• IMO (International Maritime Organisation) has mandated a new rule for national governments to
launch electronic information exchange between ships and ports. This mandatory requirement came
into effect from April 8, 2019 is part of a package of amendments under the revised Annex to the FAL
Convention, adopted in 2016.
Google Pay partners with MMTC-PAMP to introduce buying and selling of Gold
• Google Pay has partnered with Bullion refiner MMTC-PAMP India to initiate buying and selling of gold
through the app to make Google Pay more useful for Indian customers. Through this pact, Google Pay
users will be able to buy 99.99 per cent 24-karat gold for any value, which will be stored on behalf of
the user in secure vaults by MMTC-PAMP.
Google opens its 1st African Lab in Ghana

• Google has launched its first African artificial Intelligence (AI) laboratory in Accra, capital city of Ghana,
to tackle Africa’s challenges. The lab will collaborate with researchers in Ghana and across Africa to
create the need impact in the country.
India turns to net steel importer in Fiscal year 2018-2019

• India has became a net importer of steel in the fiscal year 2018-2019 that ended on 31 March for the
first time in 3 years, as the 25% import duty on steel products imposed by the US diverted
supplementary supplies to India.
ETMONEY becomes India’s first comprehensive financial services app to integrate with Unified Payment
Interface (UPI)
• ETMONEY India’s largest app for financial services has integrated with 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.
Non-Core assets needed to be sold by CPSEs in a notice period of 12 months

• The Department of Investment and Public Asset Management (DIPAM) stated guidelines for
monetisation of non-core assets of Central Public Sector Enterprises (CPSEs) and immovable enemy
properties. An Inter Ministerial Group (IMG) headed by the secretary of DIPAM will identify the non-
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core assets of the CPSEs. It could identify the assets on the basis of recommendations of the Niti Aayog.
The final decision would be taken by the panel chaired by the Finance minister. After the final approval
of the assets, the monetisation should be strictly completed within 12 months.
D&B report cited Business Sentiments down by 7.7% for Q2 in 2019

• According to Dun & Bradstreet (D&B) report, business sentiments on the country’s financial and
macroeconomic conditions continue to decline in the second quarter of 2019 as compared to the second
quarter in 2018. D&B Composite Business Optimism Index conclude 78.4 scores during Q2 2019 as
compared to 85.0 during Q2 2018, a decline of 7.7%.
CRISIL board gives nod for transfer of ratings business to new subsidiary
• A diversified global analytics company, CRISIL, will transfer its ratings business to its proposed new
wholly owned subsidiary. The transfer of rating business through the 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.
Asian Tea Alliance launched in China

• To boost tea trade,cultural and technical exchanges as well as global promotion of tea,the Asian Tea
Alliance (ATA),a union of five tea-growing and consuming countries,was opened in Guizhou,China. The
alliance was constituted with Indian Tea Association, Indonesian tea Marketing Association,China tea
marketing Association,Sri Lanka Tea Board and tea Association.
FAME II scheme has made compulsory for electric vehicles to feature 50% localisation for receiving
subsidies
• Under the FAME II scheme, the Central Government has made compulsory for Electric Vehicle (EV)
manufactures in India to locally source at least 50% components for the provision of receiving
subsidies. The conditions under FAME II scheme were decided by the Inter-Ministerial Steering
Committee of National Mission for Transformative Mobility headed by Amitabh Kant, (Chief executive
Officer) CEO of NITI Aayog.
India Post collaborates with TCS to digitalize 1.5 lakh post offices & creating world’s largest EPostal
network by deploying largest SAP implementation
• Both the companies had struck a deal of over Rs. 1,100 crore in 2013 for an end-to-end IT
modernization program. For accomplishing this objective, TCS has over 1.3 lakh DARPAN 1 for remote
villages. DARPAN 1 is a hand-held device that the Gramin Dak Sevaks can use to give postal services
even without any Internet or network connectivity.
Stanford study revealed that Global warming shrank Indian Economy by 31 percent
• As per the Stanford study, changes in the earth’s temperature have increased inequalities which
resulted in the shrinking of the Indian economy by 31 percent due to global warming. The study
published in the journal titled ‘Proceedings of the National Academy of Sciences’.
Food regulator FSSAI has extended ban on import milk products from China, until all labs at ports are
upgraded to test the toxic chemical Melamine
• The government has extended the ban on import of milk and milk products from China (including
chocolates, chocolate products, candies, confectionary, food preparations with milk or milk solids as an
ingredient). Melamine is an extremely toxic chemical that is used for making plastics and fertilisers.
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Minimum subscription requirement for REITs and InvITs has reduced by SEBI
• Recently, SEBI in his guidelines titled “Guidelines for Determination of Allotment and Trading Lot Size
for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)” has reduced
the minimum subscription requirement as well as defined trading lots for REITs and InvITs. For
determining the allotment in an initial offer and follow on public offers, REITs have to offer their units
in lots worth at least Rs 50,000 and in case of InvITs, the minimum value of a single lot should be Rs 1
lakh.
India’s Pharmaceuticals export increases 11% to USD 19.2 billion in 2018-19

• This is mainly due to increase demand in regions such as North America and Europe. The
pharmaceuticals export in 2017-18 was USD 17.3 billion. India is the largest provider of generic
medicines globally as 20 percent (in terms of volume) of generic medicines requirement was supplied
by India globally.
First Indian Platform for Wholesale Cryptocurrency Trading has introduced by BuyUcoin
• 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. This wholesale platform also known as OTC (Over-the-counter) Desk
allows users to trade on a large scale with low price fluctuations.
DPIIT proposes Startup India Vision 2024 tax sops for new ventures by planning to set up 50,000 new
start-ups in India by 2024 and create 20 lakh job opportunities
• The Commerce and Industry Ministry has proposed measures such as tax incentives to promote
entrepreneurs as part of the ‘Startup India Vision 2024’. The vision document has been prepared by the
Department for Promotion of Industry and Internal Trade (DPIIT) which is under the Commerce and
Industry Ministry.
Microsoft becomes world’s third company to be worth $1 trillion

• Seattle-based tech giant Microsoft has reached a valuation of $1 trillion for the first time after a jump in
stock valuation that followed a qualitative-laden third fiscal quarter and has again taken over Apple as
the world’s most valuable company.
HCL Technologies sets up cybersecurity centre in Texas to enhance business growth

• IT services HCL Technologies has set up a CyberSecurity Fusion Centre (CSFC) in Frisco, Texas, US. The
main objective of the setting up of the CSFC by HCL Technologies' is to boost business growth by
providing customers with a single point of contact for the business security lifecycle - from detection to
repairment.
IEPF Authority recovers Rs 1514 Cr of Depositors Money from Kolkata-based Peerless General Finance
and Investment Company
• The Investor Education and Protection Fund (IEPF) Authority has recovered deposits worth Rs 1,514
crore that was pending with the company for the last 15 years, from Kolkata-based Peerless General
Finance and Investment Company. Investor Education and Protection Fund (IEPF) is a statutory body
under the Ministry of Corporate Affairs and was established by the central government under Section
125 of Companies Act 2013.
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Economist Intelligence Unit set to bring down India’s growth outlook for 2019-20
• Economist Intelligence Unit (EIU) in its report said that in 2019-20 India’s economy will grow below its
potential due to a generally weaker global economy and structural challenges such as high
unemployment. EIU will make a downward revision to its current forecast of 7.2 percent.
Govt. forms committee to examine the introduction of e-invoices under GST

• The government of India has formed a 13-member committee having representatives from GST
Network (GSTN), central and state governments to examine the electronic tax invoice system of various
countries like South Korea, Latin America and suggest a model for India. The introduction of electronic
invoices (e-invoices) through the Goods and Services Tax (GST) portal which will help the indirect tax
system and keep a check on tax evasion.
Central Government hikes customs duty on wheat to 40 percent

• The Central Board of Indirect Taxes and Customs (CBIC) hiked the basic customs duty (BCD) on wheat
to 40% from 30%. The objective is to restrict imports so that domestic prices of wheat do not come
under pressure as the country’s wheat production in this season might cross 100 million tonnes.
Indian cyber insurance market grows 40% with 350 cyber insurance policies bought in 2018 against
250 in 2017
• A report titled 'Cyber Insurance in India- Mitigating Risks amid Changing Regulations and Uncertainties'
by Data Security Council of India (DSCI) stated that cyber insurance market is gradually gaining
momentum in India as cyber-theft has increased substantially to become one of the most prominent
threats to the corporates' operations. The report broadly offers market insights on the stances in cyber
insurance.
2019 Banking & Economy – MAY

RBI in News
RBI directs banks to enhance housing loan limits for eligibility under priority sector lending
• To include the RRBs (Regional Rural Banks) and SFBs (Small Finance Banks) in the same level as the
other Scheduled Commercial Banks, RBI has notified them to enhance housing loan limits to individuals
up to Rs 35 lakh in metropolitan centres (which would have a population of over 10 lakhs) and Rs 25
lakh in other centres, under Priority sector Lending (PSL).
Nanital Bank fined Rs 1 crore by RBI

• Mumbai-based Reserve Bank of India (RBI) has imposed Rs 1 crore fine to Nanital Bank. The reason
behind this monetary penalty was because of Nanital Bank’s failure to fully automate the non-
performing asset (NPA) identification process, despite specific directions issued in this regard.
Bank Credit up by 13.24% and Deposit up by 10.03% in FY19

• According to Reserve Bank of India data, the bank credit grew by 13.24 percent in financial year 2019
(FY19) to Rs 97.67 lakh crore as compared to 10.3 percent in FY18 and the deposits up by 10.03
percent in FY19 to Rs 125.72 lakh crore as compare to 6.7 percent in FY18.
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 notifies the steps that RBI will take to promote innovation, cyber-security,
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financial inclusion, customer protection, and competition through which the vision looks forward to
achieve a ‘highly digital’ and ‘cash-lite’ society.Click here to read the detailed article.
Nandan Nilekani-led panel submitted report to RBI regarding the promotion of digital payments
• RBI-appointed committee chaired by Nandan Nilekani, Aadhaar architect, submitted the panel’s
suggestions on promoting digital payments to Shaktikanta Das, the Governor of RBI. RBI will examine
the recommendations of the committee and will link the action points in its 'Payment and Settlement
Systems in India: Vision 2019 - 2021'.
RBI directed bigger NBFCs to appoint Chief Risk Officer

• The Reserve Bank of India (RBI) has directed Non-Banking Finance Companies (NBFCs) which have
assets over Rs 5000 crore to appoint a chief risk officer (CRO). The rationale behind this direction is to
improve standards of risk management practices of NBFCs. The primary role of the CRO is to identify,
measure and mitigate risk and all credit products shall be assessed by CRO with an objective to control
risks.
RBI data marked 27% rise in Debit card PoS swipes

• In accordance with the Reserve Bank of India (RBI) data, debit card swipes on Point of Sales (PoS)
terminals have been increased over 27% in March 2019 in comparison to the same period of 2018.
While, withdrawals from ATM hiked at a low rate of 15%. People using their debit cards not only for
merchant payments directly, but they are also not withdrawing cash to pay each other. This results in
the acceleration of digitization.
RBI permitted modern currency chests to hike service charges

• The Reserve Bank of India (RBI) permitted the modern Currency Chests (CC) to hike service charges on
the cash deposited by non-chest bank branches from Rs.5 per packet of 100 pieces to a higher rate
subject to a maximum of Rs.8 per packet.
RBI modified the norms on VRR investment by FPIs

• Reserve Bank of India has modified the norms on Voluntary Retention Route (VRR) investment by
Foreign Portfolio Investors (FPIs) by fixing the investment limit at Rs. 54,606.55 crores. Now FPIs can
invest up to Rs 54,606.55 crore under the VRR, which allows parking funds in both government
securities as well as corporate debt.
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.
RBI has increased the transfer timings of RTGS from 4.30 pm to 6 pm

• The Reserve Bank of India (RBI) has extended the time window of Real Time Gross Settlement (RTGS)
for customer transactions from 4.30 pm to 6 pm. The move has been taken due to the increase in the
number of transactions by 8% to Rs 1,335 crore in March 2019. There has been 12% rise in an
aggregate amount of transactions, year-on-year, which amounted to Rs 1,255.51 crore. It will come into
effect from June 1.
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RBI permitted Banks to use Aadhaar only for DBT accounts for KYC requirements
• The Reserve Bank of India has permitted banks to accept Aadhaar number (Offline verification) for
Know Your Customer(KYC) verification with the consent of the customers. RBI has added the 'Proof of
possession of Aadhaar number' to the list of Officially Valid Documents (OVD).This was notified by the
RBI in its amended Master Direction on KYC. RBI's Master Direction is a rule book that the regulated
entities need to follow.

Asian Indian Railway USD 750 For long-term financing for the Railways Track Electrification
Development Finance million Project, as part of a broad modernization program to reduce
Bank (ADB) Corporation the dependence India’s railway sector on fossil fuels. It is the
(IRFC) largest single non-sovereign loan ever.
Citibank Paytm Launched its 1st credit card called 'Paytm First Card'.
Industrial Credit and Goibibo Launched co-branded multi-currency card- Goibibo ICICI Bank
Investment Corporation Travel Card.
of India (ICICI) Bank
Housing Development Bharti Airtel To offer life cover for customers at a prepaid recharge of Rs
Finance Cooperation 249 with an insurance cover of the worth of Rs 4 lakh from
(HDFC) Life HDFC Life.
Housing Development IMGC (India For a mortgage guarantee-backed home loan
Finance Cooperation Mortgage Guarantee
(HDFC) Corporation)
HDFC ERGO IBM To jointly setup data lab in India to improve business efficiency
and profitability. It will analyze the customer data and develop
customized solutions. The experts from HDFC ERGO and a team
of 25 experts from IBM Garage are working together to
improve customer experience by working on different test
cases.
International Bank for Commonwealth Enabled recording of secondary market bond trading using
Reconstruction and Bank of Australia blockchain technology. With this, Bond-i become the first bond
Development (IBRD, (CBA) whose issuance and trading is recorded on a blockchain
World Bank) platform. Bond-i, first issued in August 2018 by World Bank, is
the world's first bond entirely based on blockchain, a type of
Distributed Ledger Technology (DLT).
State Bank of India (SBI) FMCG arm of The SBI's YONO users can avail a discount of 15% on the entire
Art of Living, Sri Sri range of products offered by Sri Sri Tattva such as food,
Tattva personal care, healthcare, homecare, BYOGI apparels and
Shankara skincare products. YONO is an integrated digital
banking platform of SBI.
Standard Chartered IBM They 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
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reviewed through a largely manual process.

IDFC FIRST Bank Honda Motorcycle & To provide financing solutions for vehicles across the
Scooter India country.MOU will alsoprovide loan facility up to 100% of
(HMSI) vehicle cost, zero processing fee, down payment Rs.999.
Oriental Bank of Srei Equipment To offer loans for the purchase of equipment under a co-
Commerce Finance lending arrangement.

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.
PayPal India launched One Touch with the help of Google Smart Lock for seamless transactions
• PayPal India used Google Smart Lock and launched its OneTouch experience in India. The launch of the
OneTouch feature permits Indian consumers to register their android device with PayPal and stay
logged into PayPal for further PayPal purchases on that device, thus removing the issue of repeated log-
ins and enabling a seamless payments experience.
LIC HFL initiated UDYAM-a skill development centre for marginalized youth in Bangalore
• As a part of Corporate Social Responsibility (CSR), LIC Housing Finance Ltd (LIC HFL) in association
with Lok Bharti Education Society has unveiled a skilling centre named “UDYAM” in Bangalore, which
will provide skill development training to marginalized youth in the sectors of BFSI, Retail and IT/ITES.
ADB (Asian Development Bank) launched $5 Billion Healthy Oceans Action Plan at its 52nd Annual
Meeting
• Asian Development Bank (ADB) launched 5$ billion Action Plan for Healthy Oceans and Sustainable
Blue Economies for the Asia and Pacific region. This will support ADB’s developing member countries’
efforts for achieving the Sustainable Development Goals (SDGs), inclusive of the SDG 14: Life Below
Water. The Healthy Oceans Action Plan was launched at the 52nd Annual Meeting of ADB’s Board of
Governors, Fiji.
SBI Card raised Rs. 700 crore from banks and financial institutions to grow above industry average
• SBI Card raised Rs. 700crore 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. 100crore from ICICI Securities Primary Dealership Ltd,
Rs. 250crore from State Bank of India and Rs. 50crore each from Canara Bank and Axis Bank by issuing
NCDs (Non Convertible Debentures) at 9.15% coupon.
Max Life Insurance Co Ltd dedicated the 6th day of each month as ‘Protection Day’ to raise awareness
on financial protection
• The objective of this initiative was to raise awareness on financial protection. This date of the calendar
month was selected, because, generally, number 6 indicates love, harmony and is also a symbol of
secured financial future. The decision came in line with the Company’s launch of Max Life India
Protection Quotient survey conducted in collaboration with Kantar IMRB.
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HDFC ERGO General Insurance Company launched ‘Mosquito Disease ProtectionPolicy’ which will cover
people against common mosquito-borne diseases
• India’s 3rd-largest non-life insurance provider in the private sector, HDFC ERGO General Insurance
Company launched a scheme termed ‘Mosquito Disease Protection Policy’ which will cover a person
against common mosquito-borne diseases, namely, Dengue Fever, Malaria, Chikungunya, Japanese
Encephalitis, Kala-azar, Lymphatic Filariasis and Zika Virus. The policy cover will be available for
people between the age of 91 days to 65 years.
NABARD launched Nabventures- its maiden fund to give support to agriculture, food, rural start-ups
• A subsidiary of NABARD (The National Bank for Agriculture and Rural Development), Nabventures
notified its first time funding termed ‘NABVENTURES Fund I which is a Rs 700-crore venture capital
fund for equity investments to provide support for agriculture, food and rural start-ups (which would
help improve rural livelihoods).
Talocity to enable Touchless hiring for Yes Bank

• Artificial Intelligence based HR solutions provider, Talocity will provide Yes Bank its touchless
technology in hiring process for Yes bank. This is done to enhance the hiring process with unbiased HR
outcomes and to attain high-quality talent.
SIDBI’s pilot scheme for fintech NBFCs to give financial assistance up to Rs. 10 crore to boost digital
lending
• Small Industries Development Bank of India (SIDBI) has launched a pilot scheme for fintech Non
Banking Financing Companies (NBFCs) to give financial assistance up to Rs. 10crore in order to boost
digital lending. SIDBI has set the credit exposure limit to a new fintech NBFC to 30% of the Net-Owned
Fund(NOF) of the new fintech NBFC, with the maximum capital of Rs. 10 crores. The minimum fee of
0.075% to 0.25% of the sanctioned amount along with applicable taxes is charged by the development
bank.
Rs 70,000 crore NPA recovered via IBC in FY19

• According to Crisil Ratings report, in year 2018-19, Rs 70,000 crore bad loans were recovered through
the Insolvency and Bankruptcy Code (IBC) with a recovery rate of 43 percent in 94 cases. The IBC has
recovered bad loans two times the Rs 35,500 crore through previous resolution mechanisms like Debt
Recovery Tribunal and Lok Adalat.
HDFC Capital Advisors launched an initiative termed as HDFC Affordable Real Estate and Technology
Programme (HeART)
• HDFC Capital Advisors, (a wholly-owned subsidiary of HDFC Ltd) launched an initiative termed as
HDFC Affordable Real Estate and Technology Programme (HeART), the objective of which is to mentor,
partner and invest in real estate technology companies which produce innovative products that aim at
lowering costs and creating efficiencies in every stage of the development cycle of the affordable
housing system.
Bajaj Finserv, through its lending arm Bajaj Finance Ltd launched ‘Mumbai Local Train Cover’
• Bajaj Finserv, through its lending arm Bajaj Finance Ltd has launched a specialised insurance cover
titled “Mumbai Local Train Cover” for passengers travelling in local trains in Mumbai. The passengers
will get an insurance cover of Rs 1 lakh against a payment of Rs 399 per annum. Local train travellers
who are eligible for this insurance cover are persons above 18 years of age and below 70 years of age.
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Tripura Gramin Bank among top RRB performer in the country

• Tripura Gramin Bank has posted a profit for 7 successive years to Rs 125.45 crore in fiscal 2018-19. The
Bank also registered the business of Rs. 9,000 crores, with net Non-Performing Asset (NPA) of zero
percent and gross NPA of 8.94 percent.
Ola launches Ola Money SBI Credit Card

• Transport Company, Ola Cabs has launched Ola Money SBI Credit Card in partnership with SBI Card to
provide a flexible and convenient payment system to its customers. The credit card is powered by Visa.
This partnership will enhance the co-brand card portfolio and also enable SBI Card to access Ola’s vast
customer base to make new acquisitions.
Bank credit has increased by 18.5% to infrastructure sector in FY19

• In accordance with the data compiled by Reserve Bank of India (RBI), the bank credit has been mounted
by 18.5% to Rs 10.55 lakh crore for infrastructure in financial year 2018-19. It is highest since 2012-13
fiscal. Loans to the power sector had increased by 5% to Rs 5.69 lakh crore compared to Rs 5.19 lakh
crore in FY18. Also, credit growth to roads sector mounted 2% to Rs 1.86 lakh crore as of end-March
2019.
Karnataka Bank introduced Savings Bank product named "KBL SB Salary" for salaried class
• Karnataka Bank has launched a customized product for the salaried class. The new savings bank
product, KBL SB Salary has been designed with three variants namely SB Salary Executive, SB Salary
Prime, and SB Salary Classic to cater the financial needs of the ‘employer-employee ecosystem’. All
three variants do not have the minimum balance criteria instead they have Digitally Powered features.
Mutual funds gets SEBI nod to invest in exchange traded commodity derivatives
• The Securities and Exchange Board of India (SEBI) has given its consent for the participation of mutual
funds (MF) in exchange-traded commodity derivatives (ETCD) except sensitive commodities. The
participation of MFs is allowed through hybrid schemes, which include multi-asset scheme and gold
ETFs (Exchange-traded fund).
SEBI & IRDAI to introduce Regulatory Sandbox Framework for Fintech Startups
• On the lines of the initiative taken by Reserve Bank of India (RBI), regarding the setting up of the
regulatory sandbox (RS) in its draft “Enabling Framework for Regulatory Sandbox” in April for fintech
innovations; the market watchdog Securities and Exchange Board of India (SEBI) and insurance
watchdog Insurance Regulatory and Development Authority of India (IRDAI) have also introduced the
similar RS. SEBI has released a testing environment, “Innovation Sandbox”, for firms not regulated by
SEBI and also for individuals. On the other hand, for the IRDAI sandbox, an applicant should have a net
worth of Rs 10 lakh with proven financial record of at least one year.
Corporation Bank launches ‘Corp SME Suvidha’ for GST- registered MSMEs
• Corporation Bank has launched a new product named ‘Corp SME Suvidha’ for GST- registered Micro,
Small and Medium Enterprises (MSME). The newly designed product is a part of a bank's efforts to
provide the best products to the MSME sector. During the Financial Year 2018-19, the bank had settled
altogether 987 claims under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan
Mantri Suraksha Bima Yojana (PMSBY).
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Indian Overseas Bank introduced "Bank on Wheels" for door-step banking facility
• Indian Overseas Bank (IOB) has launched a mobile van facility named "Bank on Wheels" in 14 districts
of Tamil Nadu, Kerala and the Vijayawada region of Andhra Pradesh to provide door-step banking
facility, especially for senior citizens.
GROWTH RATE:
ADB’s Asian Development 2019 5.7%(Asia Pacific region)
Outlook 2019
United Nations 2020 7.1%. It is a downward revision from 7.4% which was estimated in
January 2019.
Organisation for Economic 2019 3.20%
Cooperation and
Development (OECD)
Organisation for Economic 2019 7.25, 7.5 percent in FY20.
Cooperation and
Development (OECD)
United Nations (UN) 2019 2.7%,2020 to 2.9%. As per the report World Economic Situation
and Prospects (WESP) 2019 Mid-year Update". For India, UN has
cut the growth rate by 0.6% to be at 7% for 2019 from the earlier
prediction of 7.6% in the January edition.
India Ratings and Research FY19 6.90%
(Ind-Ra)
Ecowrap Report of State Quarter 6.1-5.9%
Bank of India (Q4),March
2019
FICCI's (Federation of FY20 7.1% & 7.2% for FY21.
Indian Chambers of
Commerce and Industry)
NASSCOM, GE Healthcare became strategic partner for health-tech innovation

• IT industry body, The National Association of Software and Services Companies (NASSCOM)
has entered a strategic partnership with GE Healthcare. The objective is to bring digital
healthcare solutions to the market. NASSCOM has announced this partnership through its
Centre of Excellence-Internet of Things (CoE-IoT).
Netherlands emerges as the 3rd largest source of FDI in India

• The Netherlands, a country in north-western Europe, became the third largest source of
Foreign Direct Investment (FDI) in India during 2017-18, with an investment of United States
Dollar (USD) 2.67 billion across all sectors. Mauritius and Singapore are the top two countries
for FDI in India during 2017-18 with an investment of USD 13.41 billion and USD 9.27 billion
respectively.
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SEBI has banned NSE from securities market for 6 months owing to the Co-Location Case
• Market regulator, Securities and Exchange Board of India (SEBI) has banned NSE, National
Stock Exchange from gaining access to the securities market for a period of 6 months.S EBI also
fined NSE a sum of Rs.1,000 crore, that is, Rs. 624.89 crore and an additional 12% interest,
from 1st April 2014 for NSE's failure to exercise effective due diligence during co-location
facility.
DPIIT recommends relaxation in Income Tax rules to facilitate fundraising by start-ups

• The Department for Promotion of Industry and Internal Trade (DPIIT) has brought relaxation
in the income tax rules related to residential properties’ sale and carry-forward of losses, in
order to facilitate fundraising by start-ups. The DPIIT recommended amendments in Section
54GB of the Income Tax Act, that is, capital gain on transfer of residential property not to be
charged in certain cases and Section 79 that states, carry forward and set off of losses would be
done for specific companies.
London tops cities like Dubai, Singapore for Indian investments with an all-time high record of 52
investment projects in 2018
• London & Partners (L&P), the Mayor of London’s promotional agency, in the new report
analysis, based on FDI (Foreign Direct Investments) Markets and FDI Intelligence data stated
that in 2018, the UK became the top-most nation to attract Indian FDI with 52 projects. US
attracted Indian FDI with 51 projects while the UAE with 32 projects.
Vodafone Idea collaborates with IBM and signs a multi-million dollar IT deal
• Vodafone Idea Ltd, India’s largest telecom operator notified a 5-year multi-million-dollar IT
outsourcing deal with IBM (International Business Machines Corporation). The collaboration
will contribute to Vodafone Idea’s merger synergy objectives by decreasing its IT related costs.
Income tax e-filers drop by over 6.6 lakh in 2018-19

• According to Income Tax Department’s e-filling website, income tax e-filings in 2018-19 have
dropped by over 6.6 lakh. In 2017-18 the income tax e-filings was 6.74 crore and in 2018-19 it
was 6.68 crore, decrement of 6.6 lakh. According to the data, registered filers have grown by
15% to 8.45 crore as on March 31, 2019.
Anti-dumping duty of 1,633.17 $ per tonne imposed on saccharin imports from Indonesia
• Based on the recommendation of the Designated Authority in the Commerce Ministry in March
2019, the revenue department under the Ministry of Finance has imposed anti-dumping duty
of 1,633.17 $ per tonne on saccharin imports from Indonesia. This duty, unless withdrawn
earlier, will be valid for a period of 5 years.
Direct tax collections fall short of Rs 82,000 crore in 2018-19 due to shortage in corporate tax
collections
• Direct tax collections fell short by Rs. 82,000crore at 11.18 crore in FY2019 (financial year),
and one of the major reasons for this shortage is low corporate tax collections. The collections
from some regions were much lesser than the last year. Rs.12 lakh crore was the target set by
the government. But the sum total of the tax collection numbers indicate that it got 13.4% more
than the previous fiscal year but fell short of the updated target of 18%.
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Foreign exchange reserves of India rose by USD 4.368 billion

• According to Reserve Bank of India (RBI) data, India’s foreign exchange has risen by USD 4.368
billion. Now the foreign exchange of India is USD 418.515 billion. The foreign currency assets
has risen by USD 4.387 billion to USD 390.421 billion and the gold reserves has remained
unchanged at USD 23.303 billion.
Microsoft released its own Blockchain–based Service

• Recently, Microsoft has released its own fully managed Azure Blockchain Service. This will help
in simplifying the formation, management and governance of the businesses so that they can
pay attention to workflow logic and application development. Businesses can develop their
applications on this new cloud-based platform.
GRIHA Council Launched "GRIHA for Existing Day Schools", a rating system for evaluating existing
schools in India
• GRIHA (Green Rating for Integrated Habitat Assesment) Council has launched "GRIHA for
Existing Day Schools" in India, to comply with the nation's vision for a greener and sustainable
future. It is a rating device that would be able to assess the environmental performance of the
existing schools in India.
Discom debt to return to pre-UDAY level of Rs 2.6 lakh crore

• According to CRISIL (formerly Credit Rating Information Services of India Limited) report, the
external debt of state-owned electricity distribution companies (discoms) will return to pre-
UDAY (Ujwal Discom Assurances Yojana) levels of Rs 2.6 lakh crore by the financial year 2020
(FY20). The CRISIL’s report is based on the analysis of 15 states which account for 85% of
aggregate losses. The total external debt of discoms in 9 out of 15 states are already in breach
of the Fiscal Responsibility and Budget Management (FRBM) Act of 25% debt to gross state
domestic product ratio.
Standard Life will sell its 1.78% stake in HDFC Life Insurance
• The Standard Life (Mauritius Holdings) will sell its stake of 1.78% in HDFC Life Insurance
Company for Rs 1,404 crore. The sale process will happen in two slots, first for non-retail
investors and second for retail investors. The reason behind this move is to achieve the
minimum public shareholding in the company as per Securities and Exchange Board of India
(SEBI) regulations. The sale process was done through offer for sale (OFS) route.
Trade between India and US in goods and services registers 12.6% growth in 2018
• The bilateral trade between India and the US in merchandise and services has grown by 12.6%
from USD 126 billion in 2017 to USD 142 billion in 2018. This was welcomed by the two
countries in the recently concluded India-US bilateral trade meeting in New Delhi.
Commerce ministry, Indian High Commissions and 11 African nation-embassies organised interaction
to improve India-Africa trade ties
• The Commerce Ministry, Indian High Commissions and embassies of 11 African nations
organized a 2-day, (that is on May 3rd and May 6th) long interaction to deepen the India-Africa
trade relations. This was arranged over Digital Video Conference (DVC) and was attended by
more than 400 members of the Indian business community in Africa. India’s trade with Africa
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during 2017-18 was 62.69 $ billion, which measured at 8.15% of India’s total trade with the
world.
Facebook has selected London as the center to develop WhatsApp’s mobile payment service
• CEO of Facebook, Mark Zuckerberg has confirmed that it has selected London to be the center
to launch WhatsApp Pay. The reason to choose London than US City is because WhatsApp is
widely used in UK and London is considered as a Hub for Fintech.
Infosys Foundation’s registration cancelled over FCRA Violation

• The Home Ministry has cancelled the registration of NGO Infosys Foundation under the Foreign
Contribution (Regulations) Act (FCRA) for violating the norms of receiving foreign grants.
Under the FCRA Act, all non-government organisations (NGOs) have to mandatorily register
under the act. Infosys Foundation had not submitted annual income and expenditure statement
on foreign funding for the last 6 years
BharatPe launches India’s first UPI Bahi Khata(Digital Ledger) for merchants
• India’s first Fintech (Financial technology) start-up enabling payments via interoperable
UPI(Unified Payments Interface) QR (Quick Response) codes, BharatPe notified its venture into
merchant services by launching a new app named ‘Bharatpe for Merchants’ that allows
merchants to keep a track of their cash/credit (Udhar) sales customer wise, to request the
accounts receivable from customers through SMS (Short Message Service) payment links or
through WhatsApp and to record accounts that are payable to suppliers.
TCS becomes India’s most valued firm again; surpasses RIL in market-cap
• Indian IT firm, Tata Consultancy Services (TCS) surpassed the Reliance Industries Limited
(RIL), led by Mukesh Ambani, in terms of Market capitalisation and became the India’s most
valued firm by market capitalisation. As per BSE data, the market-cap of TCS stood at Rs. 8.13
trillion whereas the market-cap of RIL was Rs.7.95 trillion.
India gets its first ever ice cafe in Gaya Village at 14,000 feet
• Border Road Organisation (BRO) officials have created India’s first ever ice cafe in the
mountain village of Gaya in Ladakh region of Jammu and Kashmir, at 14,000 feet height above
sea level, on the famous ManaliLeh Highway. The ice sculpture, resembles a Buddhist
meditation place, was created by natural process.
DGFT has prohibited the imports of non-BIS compliant second-hand electronics and IT goods
• The Directorate General of Foreign Trade (DGFT) of the Indian government has banned the
imports of second-hand or refurbished electronics and IT (Information Technology) goods
without registration and compliance with the BIS (Bureau of Indian Standards) labeling
requirements, under the Electronics and IT Goods (Requirement of Compulsory Registration)
order 2012.
India allowed refurbished mobile imports certified by Bureau of Indian Standards(BIS)

• India has allowed the import of refurbished mobile phones or second mobile phones only if they are
certified by the Bureau of Indian Standards(BIS). Earlier, the Government of India didn’t give its assent
to refurbished mobile imports with the fear of dumping and negative effect to Make In India initiative.
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Facebook registers its new secretive cryptocurrency firm ‘Libra Networks LLC’ in Geneva, Switzerland
• Facebook Global Holdings registered a new cryptocurrency firm named ‘Libra Networks LLC’ in Geneva,
Switzerland. It will provide financial and technology services by developing related hardware and
software components. Facebook had registered the trademark “Libra” with the United States Patent and
Trademark Office.
National Pharmaceutical Pricing Authority reduced the prices of 9 Non-Scheduled Cancer Drugs by 87%
• National Pharmaceutical Pricing Authority (NPPA) reduced the prices of 9 Non-Scheduled Cancer Drugs
by 87%. This decision was brought out by NPPA’s May 15 memorandum in its price control framework.
It has approved the proposal to cap trade margins of all medicines at 30%. This is a major step to make
the anti-cure drugs including chemotherapy injections for lung cancer treatments, available at
affordable prices.
NITI Aayog proposed Rs 7,500 crore plan for Artificial Intelligence

• Recently, a policy think tank NITI Aayog has proposed a plan for Artificial Intelligence (AI) by creating a
cloud computing platform named AIRAWAT and research institutes. NITI Aayog has circulated a cabinet
note to provide Rs 7,500 crore funding for a 3-year period and set up a high-level task force to oversee
roll-out and implementation of Artificial Intelligence (AI).
FSSAI permitted ‘Small Organic Growers’ to sell produce without certification till April 2020
• Recently, Food Safety and Standards Authority in India (FSSAI) has allowed ‘small organic producers’
which are having an annual turnover over Rs 12 lakh can sell their products directly to customers
without certification till April 2020. However, they can’t use Jaivik Bharat Logo on their product.
India’s exports grew by 1.34 % in April to USD 44 billion

• According to Commerce Ministry data, India’s export has grown by 1.34% in April 2019 to USD
44.06 billion meanwhile imports has grown by 4.53 % to USD 52.83 billion. Thus, the trade
deficit is USD 8.78 billion in April 2019 as compared to USD 7.07 billion in April 2018.
High-level Committee suggested a strategy to reduce oil imports

• A High-level Committee of Companies in its report to Oil Ministry has suggested short-term,
medium-term and long-term strategies to reduce crude oil imports. The purpose of the
formation of this committee is to discuss research-related synergies and tax issues for state-
run oil companies. The committee led by Anil Kakodkar, a scientist and Sidharth Pradhan, an
expert on financial and tax issues.
ICICI Bank to buy stake in INX for Rs 31 crore

• ICICI Bank has entered into an agreement with the Bombay Stock Exchange (BSE) to buy stake
in its subsidiary India International Exchange (INX) which is located at Gujarat International
Financial Tec-City (GIFT City) Gujarat for around Rs 31 crore. ICICI is buying stake up to 9.9 %
in INX.
Reliance Industries becomes India's biggest firm in terms of revenue by overtaking Indian Oil
Corporation
• Reliance Industries Limited (RIL), headed by Mukesh Ambani, became India's biggest firm in
terms of revenue by overtaking Indian Oil Corporation (IOC). Reliance Industries reported a
turnover of Rs. 6.23 lakh crore for the financial year ended March 31 whereas Indian Oil
Corporation's turnover was Rs. 6.17 lakh crore. It has achieved this position in terms of 3
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parameters. They are revenue, profit, and market capitalization.
HDFC group overtook Tata Group in terms of market capitalisation (m-cap)

• HDFC Group surpassed Tata Group in terms of market capitalisation and became the most
valuable business house. HDFC Group with 5 listed companies recorded the m-cap as Rs. 11.66
lakh crore whereas Tata Group with 29 listed firms stood at Rs. 11.64 lakh crore. The 5 listed
firms of HDFC Group are HDFC Ltd, HDFC Bank, HDFC Standard Life Insurance Company, HDFC
Asset Management Company and Gruh Finance.
India has terminated the purchase of Iranian Oil after US waivers expired
• The import of oil has been stopped from Iran by India after American waivers granted to eight
buyers expired at the start of May 2019. As of April end, the dependency on Iranian oil has
been dropped to 1 million tonnes a month from about 2.5 billion tonnes a month. It was being
done to reduce Iran's crude oil export to zero.
Central Government restricted bio-fuel imports

• Recently, the central government has decided to restrict the bio-fuel imports which include
ethyl alcohol, bio-diesel, and petroleum oils for all-purpose and their import will require an
import license from the Directorate General of Foreign Trade (DGFT). Till now, the import was
only allowed for non-fuel purposes subject to actual user condition.
Wirecard teams up with India to issue PAN cards

• Wirecard, a German Payments Company announced that it would work with India to simplify
the process of issuing tax identity cards which required for opening bank accounts, transfer
money and complete business transactions. The deal between Wirecard and state company UTI
Infrastructure Technology and Financial Services, seeks to widen the distribution of Permanent
Account Number (PAN) card.
Adani Ports and Special Economic Zone to set up first container terminal outside India in Myanmar
• India’s largest private multi-port operator, Adani Ports and Special Economic Zone(APSEZ) will
set up its first container terminal outside India in Myanmar at an estimated cost of USD 290
million (over Rs 2,000 crore). After the implementation, APSEZ will become the first Indian
company to set up a container terminal outside India.
CSD canteens imposed with new restrictions for sale of cheaper vehicles
• In order to curtail the expenditure towards procurement of vehicles, the Indian Army has
imposed restrictions on the purchase of cheaper cars by defence forces personnel from CSD
canteens. The new rules will come into effect from June 1, 2019.
About new restrictions:
 Officers can buy vehicles valued up to Rs 12 lakh excluding GST from CSD canteens only once in
eight years and the cars should be up to 2500 cc engine capacity.
 Jawans would be allowed to buy cars once during their regular service and once after
retirement worth around Rs 6.5 lakh including GST.
Commerce Ministry released ready reckoner for exporters

• The Commerce Ministry has publicized the comprehensive draft of the export policy consisting of
product-specific rules that will act as a ready reckoner for exporters. The draft policy is proposed by
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various partner government agencies aimed at consolidating the export norms for each product as
applicable at different government agencies
SpiceJet became the fourth Indian Airline to have 100 aircraft fleet
• Gurugram based no-frills airline SpiceJet became the fourth Indian Airline to have 100 aircraft fleet
after the induction of Boeing 737. The other 3 airlines are Air India, IndiGo and now inoperative Jet
Airways. At present, SpiceJet has 68 Boeing 737s, 30 Bombardier Q-400s and 2 B737 freighters. It
operates 575 average daily flights to 62 destinations- 53 domestic and 9 international flights.
Motila Oswal AMC become the first Indian fund house to introduce WhatsApp transaction platform
• In first of its kind initiative, Motilal Oswal Asset Management Company (AMC) has become the first
Indian fund house to launch WhatsApp transaction platform for mutual fund transactions for new as
well as existing investors. This enables investors to use WhatsApp to invest in any scheme from Motilal
Oswal AMC.
Saudi Arabia lifted export ban on Kerala fruits and vegetables

• Saudi Arabia has lifted export ban on fruits and vegetables from Kerala. In June 2018, the ban was
imposed due to the outbreak of Nipah virus. Kozhikode airport exports 20 tonnes of fruits and
vegetables per day worth $50,000 to various destinations in Saudi. Other 2 airports of Kochi and
Thiruvananthapuram export the items to Dammam, Riyadh and Jeddah airports.
US Government removed India and Switzerland from its currency monitoring list
• US Government has removed India and Switzerland from its currency monitoring list. The
monitoring list includes countries with potentially "questionable" foreign exchange policies
and practices currency manipulation. It is prepared by the US Treasury Department and it
urged the Asian nations to take necessary steps to avoid a "persistently weak currency".
FDI inflows declined first time in last six years

• According to the data of the Department for Promotion of Industry and Internal Trade (DPIIT),
for the first time in last six years, Foreign Direct Investment (FDI) inflows have declined in this
fiscal (2018-19), falling by 1% to USD 44.37 billion. The FDI inflows in 2017-18 were USD
44.85 billion. Singapore replaced Mauritius to become the top source of FDI in the last fiscal.
The FDI inflows from Singapore were USD 16.22 billion while the FDI inflows from Mauritius
were USD 8 billion.
2019 Banking & Economy – JUNE

RBI in News
As per RBI, 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.Click here to read more.
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).
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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.
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. Click here to read more.
Current Policy rates:
Repo Rate 5.75%

Reserve Repo Rate 5.5
Marginal Standing Facility(MSF) Rate 6.00%
Bank Rate 6.00%
Reserve Ratios:
Cash reserve Ratio(CRR) 4%

Statutory Liquidity Ratio(SLR) 19%
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RBI relaxed leverage ratio for banks to 3.5%

• The Reserve Bank of India (RBI) relaxed the Leverage Ratio (LR) for banks to 3.5%. This is
done to help them in order to expand their lending activities. The LR is reduced to 4% for
Domestic Systemically Important Banks (DSIBs).
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.
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.Click here to read more.
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).Click here to read more.
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.
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.
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.
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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.
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. The highest number of cases were reported in ICICI (Industrial
Credit and Investment Corporation of India) Bank, State Bank of India (SBI) and HDFC
(Housing Development Finance Corporation) Bank.
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%.Click here to read more.
RBI panel on MSMEs headed by U K Sinha recommended to double collateral-free loans limit to Rs 20
lakh
• The 8member 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. Click here to read more.
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.
The public can use the portal (https://cms.rbi.org.in).
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). It recommends the creation of a distressed asset
fund of Rs 5,000 crore for small enterprises. The fund will operate on the lines of the Textile
Upgradation Fund Scheme (TUFS).Click here to read more.
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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). ‘Model Education Loan Scheme’ for providing financial support to meritorious students for
pursuing higher education in India and abroad. Loan up to Rs 10 lakh for study in India and upto Rs 20
lakh for study abroad.
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. FBA will be incorporated in India as a company that will maintain a minimum net worth of
Rs 1crore at all times. Click here to read more .
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. It sets the average base rate on the basis of an average of the
base rate of the 5 largest commercial banks.
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. The leverage ratio, as defined under Basel-III norms, is Tier-I capital as a percentage of
the bank's exposures.
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. Click here to read more.

Asian Chhattisgarh $350 million It will improve the connectivity and access to basic services
Development and livelihood opportunities in the state. The total cost of
Bank (ADB) the project is $521.69 million.Click here to read more.
World Bank Tamil Nadu $287 million 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.Click here to read more.
Indian Nepal 1.6 billion For rebuilding of houses in Nuwakot and Gorkha districts,
Nepalese which were damaged in the devastating earthquake in
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government rupees 2015.
Export-Import Ghana and $245 million For agricultural and railway projects
Bank of India Mozambique
(Exim Bank)
Asian Tripura Rs. 1650 For overall infrastructure development of seven districts
Development crore headquarter towns of Tripura. The ADB will give 80
Bank (ADB) 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.
World Bank Rajasthan $ 250 Million For Phase II of Rajasthan State Highways Development
Project.
World Bank Jharkhand $147 million To improve the management capacity of the urban local
bodies (ULBs)
World Bank Uttarakhand $31.58 For Uttarakhand Public Financial Management

million Strengthening Project. The $31.58 Million Loan from the
(about Rs World Bank's International Bank for Reconstruction and
221 crore) Development (IBRD), has a 5 year grace period, and a final
maturity of 11 years.
World Bank Andra $328 million For improving health services of Andhra Pradesh. The
Pradesh International Bank for Reconstruction and Development
(IBRD) loan has a 23.5-year maturity and includes a grace
period of 6-year.
World Bank Government $400 Million For the Program Towards Elimination of Tuberculosis(TB),
of India 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.Click here to read more.
World Bank Kerala $250 million For the Kerala Resilient Programme. Of the total loan, $160
(Rs 1,725 million will be given on ‘easy terms’ with interest of less
crore) than 1.5% with a repayment period of 30 years. For the
balance amount, the interest will be 4% and the repayment
period will be 20 years plus a moratorium of five years.
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Suryoday Small Ashok Leyland To provide vehicle loans to the customers of Ashok Leyland. The
Finance Bank financing partnership agreement was signed for 3 years.
Industrial Max Bupa For the first time, IDBI Bank became an on-boarded corporate agent for
Development Bank Max Bupa under open architecture. It will also install ‘Infinity’, a
of India (IDBI) proprietary digital platform. Through this, the customers of IDBI Bank
Bank can purchase the product of their choice instantly and access their
policy documents at the bank branch.Click here to read more.
Bank of Baroda ECL Finance To form a strategic partnership to explore co-lending opportunities.
(BoB)
ICICI Foundation National Health To train 15,000 state and district personnel and Pradhan Mantri
Authority (NHA) 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.
Industrial Tata AIG General To provide Tata AIG’s suite of P&C (Property and Casualty (insurance)
Development Bank Insurance products to its customers. This tie-up comes after IDBI Bank and Max
of India (IDBI) Company Ltd Bupa Signed Bancassurance Corporate Agency Agreement.
Bank
Bank of Baroda Maruti Suzuki To improve credit for dealership inventory financing. The alliance with
Bank of Baroda will allow Maruti Suzuki an easy financing opportunity
to dealers as well as customers.
MobiKwik 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.
Max Bupa and MobiKwik launched a HospiCash plan which has an
annual premium of Rs 135.
Bajaj Finserv Motherhood Patients at all motherhood hospitals canavail Life Care Finance
hospitals (LCF)from Bajaj Finserv that converts their medical bills into anEMI
loan without interest.

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.
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
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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.
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. 20crore, business loans (based on GST
returns) of up to Rs. 1 crore, instant overdraft facility of up to Rs. 15lakh, 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.
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.Click here to read more.
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.
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
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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).
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.
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.
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.
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.
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.
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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.
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.
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. Click here to read more
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.
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. It was facing
problems with its payment services and gateways, along with non-crypto related transactions like
payment of salaries, rent, and purchase of equipment.
Government lowers interest rates on Small saving schemes by 0.1% for September quarter
• The Union Finance Ministry, Government of India reduced the interest rate on small savings schemes by
0.1 per cent (10 basis points) for the July-September quarter. For the July-September quarter, PPF and
National Savings Certificate will fetch an annual interest rate of 7.9% as compared to 8% earlier.
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
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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.
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. Click here to read more.

GROWTH RATES:
RBI’s MPC (monetary policy committee) FY 20 7% from 7.2%
Central Statistics Office (CSO) 2018-19 6.8% while GDP for 4th quarter is 5.8%
World Bank 2019 7.5%(Global growth is 2.6%).Click here to read

more.
Goldman Sachs 2019-20 7.2 percent
Fitch FY 20 6.60%
DBS Bank FY 20 6.80%
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.Click here to read more.
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.
KVB to form venture with Centrum Wealth to provide wealth management services
Karur Vysya Bank Ltd (KVB) partnered with Centrum Wealth Management Ltd (Centrum) to form private
limited Joint Venture (JV) to provide wealth management services to its clients. KVB will hold 51% of the share
capital, Centrum will hold 45% and the remaining 4% will be held by the JV's Staff.
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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. Read full details here:
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.Click here to read more.
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. Click here to read more.
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:
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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.
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.Click here to read more.
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. Click
here to read more.
FDI in India grew by 6% to $ 42 billion in 2018: UNCTAD

According to United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report
2019, released on June 12, 2019, Foreign Direct Investment (FDI) in India grew by 6% to $42 billion in 2018.
The US was the world’s top recipient of FDI with $252 billion followed by China with $139 billion. India was
ranked 10th as an FDI recipient. Click here to read more.
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Bharat Dynamics Limited signed a contract with Indian Navy for Rs 1,188 crore
Bharat Dynamics Limited (BDL) signed a contract with Indian Navy worth Rs 1,188 crore for the supply of
Heavyweight Torpedoes - Varunastra. The contract was signed by NP Diwakar, Director (Technical), BDL and
Nidhi Chhibber, Joint Secretary & Acquisition Manager (Maritime & Systems), Ministry of Defence, Govt of India
in New Delhi.
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).
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.
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. Click here to read more.
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.
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. A trade deficit of India
with China was at $53 billion in 2018-19, down from $63 billion for 2017-18.
NABCB gets APAC certificate for personnel certification bodies in Singapore

Country’s Accreditation body, 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.
Skylark Drones get DGCA nod to fly

The Directorate General of Civil Aviation (DGCA) gave its approval to Skylark Drones (Bangalore) to launch its
“Patang”, India’s first drone compliant with the NP-NT (No permission – No take-off) protocol under the Digital
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Sky regulatory framework for drones. It will open the way for commercial use of drones (unmanned aircraft)
for works such as agriculture, health, and disaster relief and military operations.
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. IRSDC signed a MoA with MECON
Limited (Formerly known as Metallurgical & Engineering Consultants Limited). 8 railway stations including
Andheri, Bandra Terminus, Ranchi, Chennai Egmore will be redeveloped.
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.
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. Also Reduction of logistics costs by 10% will help to raise exports
by 5-8%.
2019 Banking & Economy – JULY

RBI in News
RBI gets the power to regulate housing finance companies instead of NHB
• Finance Minister Nirmala Sitharaman stated that India's central bank, Reserve Bank of India(RBI) will
now be given power to takes over as the regulator of Housing Finance Firms(HFFs) instead of
NHB(National Housing Bank). The government will also provide a one-time six-month partial guarantee
to state-run banks for the acquisition of up to 1 trillion rupees ($14.6 billion) of highly-rated assets
from NBFCs (Non-Banking Financial Company).
RBI board has finalized a three- year roadmap ‘Utkarsh 2022’ to improve regulation & supervision
• India's central bank, Reserve Bank of India(RBI) has finalized a three-year road map for
medium-term objective named “Utkarsh 2022” for strengthening regulation, supervision of the
central bank in a meeting in New Delhi. n internal committee of RBI was formed under former
Deputy Governor Viral Acharya, to identify issues that needed to be addressed over the next
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three years.
RBI panel suggests to review timings of different financial markets

• An internal committee of the Reserve Bank of India (RBI) suggested to review the timings of
different financial markets. It recommended the timing of the functioning of the foreign
exchange market from 9 am to 9 pm instead of 9 am to 5 pm.
RBI slaps a penalty on SBI &Union Bank for violating various norms
• The central Banking institution, RBI (Reserve Bank of India) has penalized Public Sector Banks
in India, State Bank of India (SBI) with Rs. 7 crore and Union Bank of India (UBI) with Rs.10-
lakh for violating certain regulatory guidelines. SBI violated RBI's direction on Income
Recognition and Asset Classification (IRAC) norms while Union Bank of India for lapses in
cybersecurity framework in 2016.
RBI launches a medium-term strategy framework “Utkarsh 2022”

• India's central banking institution, Reserve Bank of India(RBI) Governor Shaktikanta Das
launched “Utkarsh 2022”, central bank’s medium-term strategy framework (2019-22), in line
with evolving macroeconomic environment. It has launched the framework to achieve
excellence in the performance of statutory and other functions, strengthening the trust of
citizens and other institutions.
RBI panel recommends an increase in collateral-free lending, MUDRA loan limit to Rs 20 lakh: Nitin
Gadkari
• The Union Minister for MSMEs(Micro, Small and Medium Enterprises), Nitin Gadkari stated
that a panel of RBI(Reserve Bank of India) has recommended an increase in the collateral-free
lending limit to Rs 20 lakh for MSMEs and self-help groups(SHG). The panel also recommended
revision of loan limit sanctioned under MUDRA (Micro Units Development and Refinance
Agency) to Rs 20 lakh from Rs 10 lakh.
Cars24 gets RBI NBFC license to offer loans against used cars
• CARS24, an online marketplace for buying and selling used cars has received a license of a Non-
banking Finance Company (NBFC) from the Reserve Bank of India (RBI) and will be venturing
into the consumer lending business as a separate entity within the Cars24 group. With Cars24
Financial Services, it will facilitate vehicle loans to customers as well as finance channel
partners to help them expand their businesses.
RBI relaxes norms of NBFC and corporates raised through ECB

• As a beneficial way to raise cheaper Offshore funds by the Corporates and theNon Banking
Financial Companies (NBFC) , the Reserve Bank of India (RBI) has relaxed the norms of funds
raised through External Commercial Borrowings (ECB) for the second time this year.Click
here to read more.
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Asian L&T(Larsen & Toubro) $100- For wind and solar infrastructure projects. This is the
Infrastructure Infrastructure Finance million first time AIIB is extending loan to a non-banking
Investment Bank Company(LTIF) loan finance company (NBFC). LTIF, a subsidiary of L&T
(AIIB) Finance Holdings collaborated with AIIB to explore the
international market for green finance.
Asian Tripura Rs.1,925 For power generation up-gradation and distribution
Development Bank crore projects in the state. Dev Varma, who is also the power
(ADB) minister of the state said that the amount was
sanctioned to the Tripura State Electricity Corporation
Limited (TSECL).
State Bank of India India’s sovereign To provide financing solutions to the infrastructure sector. The
(SBI) wealth fund, National tie-up will help in equity investments, project funding, bond
Investment and financing, renewable energy support and take-out finance for
Infrastructure Fund operating assets.
(NIIF)
ICICI Bank IndoStar Capital For vehicle financing for small and medium fleet owners to buy
new and old commercial vehicles. IndoStar will originate
customers in tier-II, III, IV cities where it has a branch network
of 322 branches and will provide the service to the customers
through the entire loan life-cycle including sourcing,
documentation, collection and loan servicing. ICICI Bank will
provide funds to the customers.
Airtel Payments Bank Bharti AXA Life To offer Bharti AXA Life POS (Point of Sale) Saral Jeevan Bima
Insurance Yojana, a pure life term insurance plan up to Rs 5 lakh which is
aimed at the under-insured and uninsured segments in India.
The customers are offered the option of life cover between 3-5
lakh and it will soon be extended up to Rs 25 lakh.
Reliance Jio Facebook To launch a digital literacy initiative named “Digital Udaan” to
empower first-time internet users with digital literacy and
understanding of the Internet in real time. It has audio-visual
training in 10 regional languages.
National Investment National Highways To fund large scale projects, including highways in a bid to
and Infrastructure Authority of India achieve Prime Minister’s vision to make India a $5-trillion
Fund (NIIF) (NHAI) economy in the next five years. The MoU will provide
innovative financial models including for the 24,000 km Rs.7.5
lakh crore Bharatmala Pariyojana.
Paisabazaar.com Samsung To offer financial products. Paisabazaar.com will now support

Samsung Pay users by providing a one-stop solution to their
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financial requirements.
HDFC ERGO General Muthoottu Mini To provide comprehensive general insurance for the customers
Insurance Company Financiers Limited of the NBFC through its network branches.

FinMin to launch 11th tranche of Electoral Bonds sale to start from July 1
• The Finance Ministry of India has launched the 11th tranche of Electoral Bonds sale from July 1-10. In
this regard, India's largest Public Sector Bank (PSB), State Bank of India (SBI) has been authorised to
issue and encash electoral bonds in the XI phase of sale through its 29 branches. This is the first
issuance of electoral bonds after the formation of the new government.
Hong Kong Govt donates over $9 million to cyclone” Fani”-hit Odisha

• The Government of Hong Kong approved to grant about $9,02,278 (7.032 million Hong Kong dollars)
from Hong Kong’s Disaster Relief Fund for cyclone Fani victims in Odisha. This will benefit around
45,100 cyclone victims who were affected by cyclone storm,’Fani’ in May 2019. The grants will be used
to provide hygiene kits, kitchen kits, water kits, and education kits as well as household and shelter kits
to the victims.
Punjab & Sind Bank sets up centralised hub ‘Cen-MARG’ to process retail and MSME loans
• Punjab & Sind Bank has set up a centralized hub named “Centralised MSME & Retail Group” (Cen-
MARG) for processing retail and Micro, Small and Medium Enterprises (MSME) loans for better
efficiency of branches in business acquisition. It is headquartered in New Delhi.
Wilful defaults exceed $21 billion in India for the year 2018-19, SBI holds the highest
• The state-owned banks in India stated that Rs.1.50 trillion ($21.76 billion) worth of loans as wilful
defaults in 2018-19. the State Bank of India(SBI) holds the highest number of wilful defaults, worth
around INR 461.58 billion, while Punjab National Bank(PNB) ranked second at Rs.250.9 billion and
Bank of India at Rs.98.9 billion.
SBI waives off charges for NEFT, RTGS to boost e-transactions

• In a bid to move the country towards a less-cash economy, country’s largest bank, the State Bank of
India(SBI) waived Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT)
charges for its app YONO (You Only Need One), internet and mobile banking customers effective from 1
July 2019. It also waived off the charges for Immediate Payment Service (IMPS) from 1 August 2019.
Price for SGBs fixed at Rs 3,443 per gram

• The government fixed the price of the new series of Sovereign Gold Bonds (SGBs) at Rs 3,443 per gram
opening July 8, 2019. In consultation with the Reserve Bank of India (RBI), the Centre decided to allow a
discount of Rs 50 per gram from the issue price (Rs 3,393 per gram) to those investors who apply
online and if the payment is made through digital mode. SGBs will be issued every month from June
2019 to September 2019.
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Total deposits in Jan Dhan accounts cross Rs.1 lakh crore

• According to the Finance ministry, total deposits in over 36.06 crore bank accounts opened under the
Pradhan Mantri Jan Dhan Yojana (PMJDY) was at Rs 1,00,495.94 crore. The number of zero balance
accounts under PMJDY decreased as 5.07 crore (14.37 % of the total accounts) in March 2019
compared to 5.10 crore (16.22% of the total accounts) in March 2018.
Govt infused over Rs.3.15 lakh crore into PSBs in 11 Years between FY09 and FY19
• Anurag Singh Thakur, Minister of State for Finance stated that the government has infused over Rs 3.15
lakh crore into public sector banks(PSB) in the last 11 years up till 2018-19. As on March 31, 2019, all
18 PSBs meet the minimum CRAR (capital to risk-weighted assets ratio) of 9 % requirement.
The UK’s new £50 pound note features codebreaker Alan Turing
• According to the Bank of England, Alan Turing, a crack code-breaker and visionary mathematician who
set the foundations for artificial intelligence (AI) will feature on Britain’s new £50 banknote. The new
note is expected to enter circulation by the end of 2021. The Bank of England is putting new faces on
Britain’s banknotes as it switches from paper to polymer, a thin, flexible plastic film that is seen as more
durable and secure.
HDFC Bank GDRs Terminated, Delisted From Luxembourg Stock Exchange

• India's leading private sector bank, HDFC Bank (Housing Development Finance Corporation) has
terminated and de-listed its 22 outstanding global depository receipts (GDRs) from the Luxembourg
Stock Exchange citing low trading volume of GDRs. The listing and admission to trading of the HDFC
Bank GDRs on the Luxembourg Stock Exchange have been canceled after July 15, 2019.
GPF rates reduced by 10 bps to 7.9% from 8%

• Ministry of Finance informed that the rates of the General Provident Fund (GPF) were reduced by 10
basis points (bps) to 7.9% from 8% with effect from July 1, 2019, to September 30, 2019. All
government employees who joined service on or before December 31, 2003, contribute to GPF. An
officer/employee contributes 6% of his/her basic salary with an equal contribution from the
Government.
SIDBI introduced web-based application system for contribution from FFS

• The Small Industries Development Bank of India (SIDBI) introduced a web-based application system for
contribution from the Fund of Funds for Startups (FFS). The objective of the new web-based application
system is to improve the turnaround time and increase transparency. SIDBI on behalf of the Union
Government is the implementing agency for FFS with a corpus of Rs 10,000 crore.
ICICI Bank unveils digital platform InstaBIZ for MSMEs

• India's largest private sector bank, ICICI (Industrial Credit and Investment Corporation of India)
launched a new digital platform called 'InstaBIZ'. It targeted at micro, small and medium enterprises
(MSMEs) and self-employed customers, enable them to undertake their business banking transactions
digitally and instantly. It is the first digital platform allows instant payment of GST (Goods and Service
Tax) using the challan number in a single click payment.
Andra Bank rolls-out Al chatbot “ABHi” in Telangana

• A medium-sized public sector bank in India, Andra Bank launched its AI (Artificial Intelligence)
interactive assistant called “ABHi” at a function in Hyderabad, Telangana. It uses new-age technologies
include to understand the customer query and fetch the relevant information from the possible
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knowledge base in a matter of milliseconds. ABHi is powered by AI startup Floatbot.ai (Bangalore) in

partnership with IT (Information Technology) company Netxcell Limited(Hyderabad).
ABIPBL to shut down within 18 months of launch

• Aditya Birla Idea Payments Bank (ABIPBL) which had started its operation on February 22, 2018, will
shut down its operations within 18 months of launch due to “unanticipated developments in the
business landscape that have made the economic model unviable''. ABIPBL is a joint venture by Aditya
Birla Nuvo Ltd (51% stake) and Idea Cellular (49%).
World Bank decides not to fund for Andhra's ambitious Amaravati capital city project
• After the central government dropped support, The World Bank had withdrawn $300 million of fund
for Amaravati Capital City project in Andhra Pradesh, the ambitious project of former chief minister
Chandrababu Naidu. The move was taken after the Environmental activists, farmers, and civil society
organizations opposed this project for building the city on Krishna river floodplains.
NPCI & JCB launched RuPay JCB Global Cards

• The National Payments Corporation of India (NPCI) and Japan Credit Bureau (JCB) International along
with domestic banks, launched RuPay JCB Global Cards. The domestic banks include State Bank of India,
Punjab National Bank, Axis Bank, Union Bank of India, Central Bank of India, Andhra Bank, City Union
Bank and Thane Janata Sahakari Bank (TJSB).
LIC offers Rs 1.25 trillion by 2024 to fund highway projects: Nitin Gadkari
• Nitin Gadkari, Minister of Road Transport and Highways stated that Mumbai headquartered Indian
state-owned insurance group, LIC (Life Insurance Corporation) has agreed to offer Rs 1.25 trillion (Rs
1.25 lakh crore) line of credit by 2024, to fund highway projects for timely execution of the Rs 8.41
trillion ambitious Bharatmala project.
Standard Chartered is all set to be the first foreign bank to initiate operations at GIFT IFSC
• UK- based Standard Chartered will be the first foreign bank to launch operations at International
Financial Service Centre (IFSC). The bank has received in-principle regulatory approvals to set up its
IFSC Banking Unit (IBU) in Gujarat International Finance Tec-city (GIFT city). GIFT city has been set up
by the Gujarat government in joint partnership with Infrastructure Leasing and Financial Services
(IL&FS).
World Bank to continue the support to Andhra Pradesh with over $1 Billion programme
• The World Bank (WB) reaffirmed the support to the state of Andhra Pradesh with over $1 billion
programs. It covers the health, agriculture, energy and disaster management sectors. A new $328
million support to the health sector was signed by the World Bank with the Government of Andhra
Pradesh.
India will be the first recipient of AIIB local currency funding

• India will be the first recipient of local currency financing by the Asian Infrastructure and Investment
Bank (AIIB). The objective of local currency financing is to provide more options to borrowers. India is
the second-largest shareholder of AIIB with a 7.5% stake after China.
Bankruptcy board tightens norms governing resolution professionals

• Insolvency and Bankruptcy Board of India (IBBI), the regulator for overseeing insolvency proceedings
has tightened norms governing resolution professionals wherein restrictions will also be in place for
their relatives from taking up employment after completion of a resolution process. They would also be
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barred from having employment when they are in possession of authorization to take up work under
the insolvency law.
An Account Aggregator platform “Sahamati” introduced to Solve Fintech’s Data Problem

• Infosys co-founder and its former chairman Nandan Nilekani has introduced a new platform “Sahamati”
based on a new class of non-banking financial institutions called the account aggregator (NBFC-AA)
model. This will work as consent brokers, which will take users permission to access their financial
accounts, aggregate and organize all their financial information in one place.
PNB Housing Finance raises $100 million (nearly Rs.690 crore) from World Bank Group member IFC
• Indian public limited housing finance company PNB(Punjab National Bank) Housing Finance Ltd has
raised $100 million (around Rs 690 crore) from International Finance Corporation (IFC, member of the
World Bank Group) for the purpose of lending to buyers in housing projects. This is the 1st ECB
(external commercial borrowings) outlay was made under the RBI (Reserve Bank of India) automatic
route for the current financial year (FY2019-20).

GROWTH RATE:
Asian Development 2019 7%, 7.2% in 2020 (FY21). It revised downwards its outlook for FY20 due to
Bank’s (ADB) unexpected weak FY2018 outturn.
International 2019 7% and 7.2% in 2020 (FY21). It scales down its outlook for both the years
Monetary Fund due to a broad-based slowdown in consumption and investment demand in
(IMF) India.
DBS 2020 6.8%. It stated that the Indian economy will be unable to achieve the 7%
growth.Reasons for slow growth include poor monsoon and rural income &
consumption will be pressured by the persistent negative terms of trade in
the agricultural sector.
Highlights of Union Budget 2019-20

• Union Minister for Finance and Corporate Affairs Nirmala Sitharaman made her maiden Budget Speech
and presented the Union Budget 2019-20 in the Lok Sabha. She broke away from the tradition when she
replaced the conventional leather briefcase with a bright red cloth bag to carry the Budget papers to the
Parliament House. “Gaon, Garib and Kisan” (Village, Poor, and Farmer) was the centre of all policies of
the Modi 2.0 Government.Click here to read more.
GOI Ratifies International convention to curb company profit sharing

• The Government recently ratified the multilateral tax convention designed by OECD (Organization for
Economic Co-operation and Development) to implement Tax treaty to combat Base Erosion and Profit
Shifting (BEPS). This has been done to shrink opportunities for tax avoidance by multinational
enterprises. The convention measures to prevent BEPS (Multilateral instruments (MLI)) which was
signed by India in 2017 in Paris. The convention (MIL) is one of the outcomes of OECD/G20 Project to
tackle Base Erosion and Profit Shifting (BEPS Project) and it shall come into force from 1st October
2019 for India.
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Overview Of Economic Survey 2018-19

• The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman presented the
Economic Survey 2018-19. It was prepared by the Chief Economic Advisor Krishnamurthy
Subramanian. It had a cover page in skyblue colour as it adopts an unfettered approach in thinking
about the appropriate economic model for India. Click here to read the detailed article.
NASSCOM & NSDC launches “World Skills India”-International Cloud Computing Challenge 2019
• Information technology (IT) and IT-enabled services (ITeS) NASSCOM (National Association of Software
and Services Companies) and Not-for-profit public limited company, NSDC (National Skill Development
Corporation) has organized “World Skills India”- International Cloud Computing Challenge 2019 from
July (1st – 6th ) 2019 at NASSCOM Campus,New Delhi.
Tata Steel Kalinganagar included in WEF’s Global Lighthouse Network

• Tata Steel Kalinganagar becomes the first and the only Indian manufacturing plant that has been
included in prestigious Lighthouse Network of the World Economic Forum, a community of
manufacturers that are frontrunners in applying 4th Industrial Revolution technologies to draw a
competitive advantage from either innovating their production system or by innovating their entire
value chains and offering new products and services.
According to the World Bank data for 2018, India’s turnover ratio fell by 60% in 10 years
• As per the data of the World Bank for the year 2018, the turnover ratio of Indian stock market fell
significantly by 60% in the past 10 years. Indian market volume compared to the size of the market was
the lowest amongst major global economies. A turnover ratio of Indian stock market fell from 143 in
2008 to 58 in 2018. It was the highest among the most leading markets of the world, except the United
States (US) and European Union (EU).
Six Sigma Healthcare proposed to setup Rs 750 crore project in Rudraprayag district, Uttarakhand
• The proposal for setting up the High Altitude Institute of mountain medicine, training and research
center, given by the medical director of Six Sigma Healthcare, Dr Pradeep Bhardwaj was accepted by the
Chief Minister of Uttarakhand Trivendra Singh Rawat. Six Sigma healthcare, a company which operates
hospitals in Kedarnath, Tungnath and Madmaheshwar, will set up Rs 750 crore project in Rudraprayag
district of Uttarakhand.
Parliament adopts statutory resolution for levying 200% duty on all Pakistani goods
• The two statutory resolutions were moved by Anurag Thakur, Minister of State (M/S) for Finance on
behalf of Union Minister of Finance Smt. Nirmala Sitharaman. It was decided to levy 200% duty on all
goods originating in or exported from Pakistan. In this regard, Lok Sabha and Rajya Sabha approved the
amendment in the 1st Schedule of Customs Tariff Act (CTA), 1975.
Indian ship sails for Narayanganj in Bangladesh carrying cargo from Bhutan
• The Inland Waterways Authority of India (IWAI) ship, MV AAI flagged-off by Mansukh Mandaviya,
Minister of State for Shipping (Independent Charge) and Chemical and Fertilisers, from Dhubri river
port (Assam )to Narayanganj(Bangladesh), carrying 1000 MT of Bhutanese stone over river
Brahmaputra, using Indo-Bangladesh Protocol Route.
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Agri-Business Incubation Centre started at Raipur, Chhattisgarh

• An Agri Business Incubation Centre has been set up by the Union Agriculture Ministry in Indira Gandhi
Agriculture University of Raipur, Chhattisgarh under the National Agriculture Development Scheme
Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RAFTAAR). It will help to
grow agri-preneurship in the state and foster a start-up culture.
In 2025, India will overtake Japan to become the World’s 3rd Largest Economy: IHS Markit
• IHS Markit, a global information provider, in its report mentioned that India will surpass Japan to be the
world’s third largest economy in 2025 and it will overtake the United Kingdom (UK) to become the fifth
biggest economy in 2019. Indian Gross Domestic Product (GDP) is predicted to reach $5.9 trillion in
2025 surpassing Japanese GDP.
Govt waived off basic customs duty (BCD) on products imported for nuclear plants
• In order to reduce the dependency on carbon-based fuel for electricity generation, the Government of
India (GoI) has waived off Basic Customs Duty (BCD) for the products which are imported for nuclear
power plants. This comes after the budgetary support towards nuclear fuel inventory increasing 37%
year-on-year(y-o-y) to Rs 3,122 crore & allocation on atomic research and development have been
increased by 10% to Rs 6,264 crore.
KRAS gets $100 mn order for Barak-8 missile kits for Indian Army and Air Force
• Hyderabad-based Kalyani Rafael Advanced Systems Ltd (KRAS), a 49:51 venture between Rafael
Advanced Systems and Kalyani Strategic Systems Ltd, secured a $100-million order from Rafeal of
Israel to supply 1,000 Barak-8 Medium-Range Surface-to-Air Missile (MRSAM) kits for the Indian Army
and the Indian Air Force.
TVS Motor launches India’s first Ethanol based motorcycle ‘TVS Apache RTR 200 Fi E100’
• Multinational motorcycle company headquartered at Chennai, TVS Motor company launched India’s
first ethanol-based motorcycle TVS Apache RTR 200 Fi E100 to help reduce crude imports and reduce
air pollution. It is available in Maharashtra, Uttar Pradesh, and Karnataka at a price of Rs 1.20 lakh& It
was first showcased in Auto Expo 2018 in Delhi.
India & Italy to establish fast-track mechanism to facilitate investment

• In a meeting which was held in New Delhi, it was decided by India and Italy to establish a fast-track
mechanism for companies and investors of both countries to help the Italian companies and investors
in India and Indian companies and investors in Italy. In this regard, the documents were exchanged by
the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Ramesh
Abhishek and Ambassador of Italy to India, Lorenzo Angeloni.
Israel Aerospace Industries signed $50 million follow-up deal with Indian Navy & India's MDL Shipyard
• Israel Aerospace Industries, a state-owned defense contractor, signed $50 million follow-up deal with
Indian Navy & Mazagon Dock Shipbuilders Limited (MDL). The follow-up agreement consists of a range
of maintenance and other services for sub-systems of Israel Aerospace's naval medium-range surface-
to-air missile.
Centre to increase coal production to one billion tone by 2022-23

• Union Minister of Coal Prahlad Joshi informed that due to insufficient domestic availability of coking
coal, the gap between demand and supply of coal cannot be bridged completely. But there are plans to
increase the total production of coal in India to one billion tones by 2022-23. All India raw coal
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increased its production from over 462 Metric tonnes in 2013-14 to around 730 metric tonnes in 2018-
19.
US not to sell F-35 fighter jets to Turkey after it bought S-400 missile defense system from Russia
• The President of the United States (US) Donald Trump informed that the US would not sell the F-35
fighter jets to Turkey after Ankara, capital of Turkey, purchased the S-400 missile defense system from
Russia. As per current US laws, any country purchasing a major defence equipment from Russia could
be subject to American sanctions. F-35 is a stealth, fifth-generation, multirole combat aircraft, designed
for ground-attack and air-superiority missions.
Bangladesh-India bilateral trade in FY 2017-18 was $9.5 billion

• The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) President Sheikh Fazle
Fahim stated that the bilateral trade between India and Bangladesh accounted to $9.5 billion for 2017-
18. Exports to India accounted at $0.87 billion and imports were $8.6 billion. This was announced on
the sidelines of a two-day B2B (Business to Business) trade summit held in Kolkata, West Bengal.
India's current account balance deficit shoots up to $68 billion in 2018-19: IMF
• According to the International Monetary Fund (IMF), India's current account (CA) balance deficit rose
to $68 billion in 2018-19 from $49 billion in 2017-18. The External Sector Report of the IMF stated that
India's Net International Investment Position has marginally improved with the deficit comes down
from $438 billion in 2017-18 to $431 billion in 2018-19.
Motihari-Amlekhgunj oil pipeline to start commercial operation from August 2019

• The Nepal Oil Corporation (NOC) and the Indian Oil Corporation Limited (IOCL) successfully concluded
the 'testing transfer' of Rs 325 crore Motihari in Bihar to Amelkhgunj in Nepal pipeline project and it is
set to start commercial operation from August 2019. The 69-km long petroleum pipeline was
constructed by India which was first proposed in 1996.
Project compliance lab launched by Wipro in Hyderabad

• The 10,000 square feet project compliance lab was launched by Wipro in Hyderabad. This lab will serve
customers in defence, consumer electronics, Aerospace, Telecom, medical energy, and the
manufacturing industries. The project compliance lab will be part of the Tarang labs, which is an
independent product qualification lab of Wipro.
DCC imposes penalty of Rs.3050 crore on Airtel, Vodafone Idea on recommendations by TRAI
• The Digital Communications Commission (DCC), on recommendations by the Telecom Regulatory
Authority of India (TRAI), approved the penalty of Rs.3050crore to be imposed on Bharti Airtel and
Vodafone Idea for not providing points of interconnection to Reliance as TRAI recommended imposing
a total penalty to those network operators for allegedly denying interconnectivity to Reliance Jio in
October 2016.
PayPal opens third Global Technology Centre in Hyderabad

• An online payment solutions provider PayPal Holdings, Inc has opened a 3rd Global Technology Centre
at Western Aqua at Kondapur in Hyderabad, Telangana after Bengaluru and Chennai. The Nasdaq-listed
firm launched the Centre as a part of an expansion of its India footprint. The expansion follows the
acquisition of fraud prevention platform Simility in 2018.
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Promoters get 90 days to retake company after insolvency proceedings begin: IBBI
• The Insolvency and Bankruptcy Board of India (IBBI) has notified that the promoters and other
stakeholders will be given 90 days after the commencement of insolvency proceedings to re-take
control of the company through agreements with creditors. It was proposed under Section 230 of the
Companies Act 1956.
India’s Current Account Deficit to remain steady at 16-17 billion dollars in the first quarter
• According to Investment Information and Credit Rating Agency (ICRA), despite recent slowdown in
Merchandise exports and imports, India's Current Account Deficit (CAD) is expected to remain steady at
a range of 16-17 billion dollars or 2.3 % of GDP (Gross Domestic Product) in the first quarter. The CAD
is expected to widen from 63 billion to 68 billion dollars FY2020 (fiscal year/financial year 2020) and
from 57.2 billion dollars in FY2019 while remaining steady at 2.1 % GDP.
7th Economic Census began from Tripura

• 7th Economic Census (EC) for the year 2019 which is conducted by the Ministry of Statistics and
Programme Implementation (MoSPI) commenced from Tripura on July 29, 2019. It is held after a gap of
5 years. This is done to get a complete count of all economic units in India. After Tripura, it will be
launched in Puducherry, and in other states and union territories in August and September, 2019.
FDI inflow registered a growth of 79% during the last 6 years amounting to $64.37 billion in 2018-19
• According to the Annual Report 2018-19 of the Department for Promotion of Industry and Internal
Trade (DPIIT) which is under the Ministry of Commerce and Industry, Foreign Direct Investment (FDI)
inflow increased during the last 6 years from $36.05 billion in 2013-14 to $64.37 billion in 2018-19,
registering a growth of 79%.
Reliance Jio is India's largest telecom company

• Reliance Jio becomes the largest telecom company of India with 331.3 million subscribers overtaking
Vodafone Idea whose customer base stood at 320 million in the quarter ended June 30, 2019.
2019 Banking & Economy – AUGUST

RBI in News
Reserve Bank bars NBFCs From Charging Loan pre-payment Penalties
• The Reserve Bank of India(RBI) has barred the both deposit-taking and non- deposit taking
NBFCs (Non-Banking Finance Companies) from charging pre-payment /foreclosure charges on
any floating rate term loans sanctioned for purposes other than business to individual loan
borrowers.
Rs.1.5 crore slapped on bank of India by RBI

• Penalty of Rs.1.5 crore was fined on Bank of India over “non-compliance with RBI’s (Reserve
Bank of India) direction on frauds” in Rotomac group companies. The penalty amount was
ordered to be paid within 14 days of receipt of RBI’s order.
RBI imposes fine on 9 commercial Banks for non-compliance relating to reporting of frauds
• India’s central banking institution RBI (Reserve Bank of India) in exercise of the powers
conferred under various sections of the Banking Regulations Act,1949 has imposed a penalty
on nine commercial banks for violations of norms including delay on the reporting of fraud in
the account of Kingfisher Airlines by two banks (PNB,OBC). Read full details here: RBI Imposes
Fine On 9 Commercial Banks For Non-Compliance Relating To Reporting Of Frauds
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Reserve Bank tightens fit and proper guidelines for the position of elected directors on the
board of PSBs
• To keep out political appointees, the Reserve Bank of India (RBI) has released a new master
direction called ‘Fit and Proper’ Criteria for Elected Directors on the Boards of PSBs (Public
Sector Banks)) Directions, 2019 to determine ‘fit and proper’ status of person to be eligible to
be elected as a director. Directors nominated by the Government under Section 19(f) of the SBI
Act/Section 9(3)(c) of the Banking Companies (Acquisition and Transfer of Undertakings) Act,
1970/1980 should not be part of the Committee.
Bank Retail loan growth slips to 5-year low in the first half of 2019 at 7.3 %: RBI
• According to the latest monthly data of RBI (Reserve Bank of India), the retail personal credit
disbursement growth in the first half of 2019(January -June) was 7.3%, which is the slowest
rate of disbursement by banks in 5 years. The slowdown of sales volume in the Automobile
sector gradually erected stress in several retail loan portfolios such as personal loans and
credit cards may be caused by a slowdown in disbursements.
RBI Expands biller categories for Bharat Bill Payment System

• The central banking institution, Reserve Bank of India(RBI) has permitted all categories of
billers (except prepaid recharges), who provide for recurring bill payments to participate in
BBPS (Bharat Bill Payment System (BBPS)on a voluntary basis. The decision has been taken as
a part of the digitisation of cash-based bill payments.
RBI relaxes bank lending norms to NBFCs and eased bank’s exposure limits
• Relaxing the bank lending norms to Non-Banking Financial Companies (NBFCs), RBI has
allowed the banks on lending through NBFCs (other than MFIs- Microfinance Institutions) to
Agriculture, MSMEs (Micro, Small and Medium Enterprises) and affordable housing to be
treated as priority sector lending for banks. The banks have been allowed on-lending to
agriculture (investment credit) up to Rs.10lakh, MSMEs up to Rs. 20lakh and housing up
to Rs.20lakh per borrower (increased from Rs.10 lakh) to be classified as priority sector
lending(PSL).
Third Bi-monthly Monetary Policy of RBI 2019-20

• The Reserve Bank of India (RBI) announced its third Bi-Monthly Monetary Policy Rates for
2019-20 in Mumbai. The three-day (5 to 7 August 2019) policy review meeting by the six
members of Monetary Policy Committee (MPC) was headed by RBI Governor Shaktikanta Das
with the members - Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra, Shri Bibhu Prasad
Kanungo, Dr. Chetan Ghate and Dr. Pami Dua.
Current Policy rates under LAF:

Repo Rate 5.40 %
Reverse Repo Rate 5.15 %
Marginal standing facility (MSF) Rate 5.65 %
Bank Rate 5.65 %
Reserve ratios:
Cash reserve Ratio(CRR) 4%
Statutory Liquidity Ratio(SLR)(will change on October 12, 2019) 18.75%
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RBI permits domestic banks to directly sell their NPAs overseas as part of one-time settlement
• India's central banking institution, Reserve Bank of India (RBI) has opened a new route to
allow domestic banks directly sell their non-performing assets (NPA) in manufacturing and
infrastructure sectors to investors abroad as part of the one-time settlement (OTS) on behalf of
the borrowing company. It will allow overseas investors to take direct loan exposure to Indian
corporates.
RBI's Money Museum in central Kolkata boost people’s knowledge of banking system
• India’s central bank, RBI’s (Reserve Bank of India) Money Museum, which was opened on
March 11, 2019, aims at improving people's knowledge of the banking system with the help of
interactive displays at Council House Street in Central Kolkata, West Bengal. The museum has a
big tree made using unusable coins and demonetized notes attached with a computer model
outlining how money gets transferred to the account digitally.
RBI granted Bank of China to offer regular banking services in India

• India's central banking institution, RBI (Reserve Bank of India) has allowed Bank of China
(BoC) to provide regular bank services in India. BoC will be included in the Second Schedule of
the Reserve Bank of India Act, 1934. Jan Small Finance Bank Ltd has also been included in the
second schedule. Apart from this, the name 'Royal Bank of Scotland' has been changed to
'NetWest Market Plc'.
Banking license of Rupee Cooperative Bank extended by RBI till Nov 30, 2019
• Apex bank of the country, the Reserve Bank of India (RBI) extended the banking license of
Rupee Cooperative Bank Ltd till November 30, 2019. The decision has been taken by RBI after
exercising its power under sub-section (1) of Section 35A read with Section 56 of the Banking
Regulation Act, 1949.
RBI’s Task Force on Offshore Rupee Markets headed by Usha Thorat recommends extension of
onshore market hours
• The Task Force formed by the Reserve Bank of India (RBI) on Offshore Rupee Markets headed
by Usha Thorat has recommended the extension of onshore market hours to 9 am to 9 pm,
from 9 am to 5 pm, to improve access of overseas users and allow Indian banks to freely offer
prices to global clients around the clock. The panel was constituted in August 2018, in view of
the sharp growth in offshore trading volumes in the rupee Non-Deliverable Forward (NDF)
(Offshore markets) markets.
Reserve Bank asks banks not to count failed transactions, balance enquiry as ''free ATM
transactions''
• The country’s Central Bank, Reserve Bank of India(RBI) has asked banks not to count failed
transactions at ATMs due to technical reasons (hardware and software issues, non-availability
of cash, and any other reason attributable to the bank), as part of "free ATM transactions”,
which are permitted every month. Banks provide a certain number of free transactions at
ATMs permitted every month to their customers and beyond that limit, it imposes charges.
RBI Extends Timings of RTGS Transactions by an hour from 7 am instead of 8 am from August
26, 2019
• India's central bank, the Reserve Bank of India(RBI) has extended the timings of Real-Time
Gross Settlement (RTGS) transactions by an hour from 7 AM instead of 8 AM with effect from
August 26, 2019, with the aim to increase the availability of the RTGS system. At present, the
Real Time Gross Settlement (RTGS) System is available for customer transactions from 8 AM to
6 PM and for inter-bank transactions from 8 AM to 7.45 PM.
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RBI permits processing of e-mandate on credit and debit cards for recurring merchant
payments
• India’s central bank, the Reserve Bank of India(RBI) has permitted processing of e-mandate on
credit and debit cards along with Prepaid Payment Instruments (PPIs), including wallets for
recurring merchant payments with AFA (Additional Factor Authentication, a security measure
put in place for card payments that requires OTP – one-time password verification) during
registration and 1st transaction. It will come into effect from 1 September 2019. Read full
details here: RBI Permits Processing Of E-Mandate On Credit And Debit Cards For Recurring
Merchant Payments
RBI Board Approves Surplus Transfer of Rs 1.76 Lakh Crore to Govt as it Accepts Bimal Jalan
Panel Recommendation
• The Reserve Bank of India(RBI)’s Governor Shaktikanta Das-led RBI central board in its 578th
meeting (held in Mumbai, Maharashtra) has accepted the recommendation of high-level 6-
member panel headed by its former Governor Bimal Jalan on transfer of Rs 1,76,051 crore to
the government comprising of Rs 1,23,414 crore of surplus for the year 2018-19 and Rs 52,637
crore of excess provisions as per the revised Economic Capital Framework (ECF). Read full
details here: RBI Board Approves Surplus Transfer Of Rs 1.76 Lakh Crore To Govt As It Accepts
Bimal Jalan Panel Recommendation
RBI issues guidelines on Interest Subvention Scheme for Kisan Credit Card (KCC) to Fisheries
and Animal Husbandry farmers during 2018-19 and 2019-20
• The RBI directed the central Government to operate the interest subvention guidelines. Apart
from existing KCC holders for crop loans, the farmers involved in activities related to Animal
Husbandry and Fisheries, through a separate Kisan Credit Card (KCC) will get at a concessional
interest rate of 7% per annum during the years only 2018-19 and 2019-20 for the short loan
up to Rs. 2 lakh. Read full details here: RBI Issues Guidelines On Interest Subvention Scheme
For Kisan Credit Card (KCC) To Fisheries And Animal Husbandry Farmers During 2018-19 And
2019-20
RBI released the report on the Economic Capital Framework submitted by the panel headed by
Bimal Jalan
• The Reserve Bank of India (RBI) released the report submitted by the panel headed by Bimal
Jalan, former RBI governor, which was formed to review the Economic Capital Framework
(ECF) of the RBI. The committee recommended to maintain RBI’s Contingency Risk Buffer
(CRB), at a range of 5.5% to 6.5% of the RBI’s balance sheet, which is above the available level
of 2.4% of balance sheet as on June 30, 2018. Read full details here: RBI Released The Report
On The Economic Capital Framework Submitted By The Panel Headed By Bimal Jalan
RBI releases its Annual Report for the year 2018-19

• India’s central bank, the Reserve Bank of India(RBI) has released its annual report for the fiscal
year (FY) 2018-19. The report, which is released annually, analyses the working and
operations of the RBI and suggests measures to improve the economic performance. Read full
details here:RBI Releases Its Annual Report For The Year 2018-19
RBI extends time limit for PPIs to become full KYC complaint by 6 months
• The country’s central bank, the Reserve Bank of India(RBI) has again extended the deadline for
prepaid instruments (PPIs), including digital wallets, to do full KYC (Know your customer) by
six months (till February 28, 2020). The deadline was expiring on August 31, 2019.
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HFCs will be treated as one category under NBFCs: RBI

• India’s central bank, the Reserve Bank of India(RBI) stated that, for regulatory purposes,
Housing Finance Companies (HFCs) will be treated as one of the categories of NBFCs (Non-
Banking Financial Companies) & it will come under RBI’s supervision. This comes after the
Finance (No 2) Act, 2019 (23 of 2019) amended the National Housing Bank Act, 1987, granting
certain powers to RBI for the regulation of HFCs.

Asian Development GRIL( GR $23 million This investment will promote the GRIL’s
Bank(ADB) Infraprojects ability for the construction of roads and
Limited) highways in India.
Karnataka Bank Fintech company To offer wealth management
Finwizard Technology Pvt products and services, beginning
Ltd (widely known as with mutual funds (MFs), through its
"fisdom") ‘KBL Mobile Plus’ application.
Edelweiss Tokio Life Insurance MobiKwik To offer mobile-based group

insurance solutions for the
customers of MobiKwik. It will
provide life insurance in the variants
of Rs 1 lakh, Rs 3 lakh, and Rs 5 lakh
through MobiKwik’s wallet app and
website.
Indian Bank Cholamandalam MS (Chola Chola MS will deliver a wide range of

MS) General Insurance insurance policies to the Indian bank
Company customers.
DBS Bank India Social Alpha To mentor & support the start-ups
(Even Cargo, Trust Circle Incredible
Devices) focusing including
inclusion, healthcare, and the
environment in India over the next
18 months. DBS Bank will also give
an annual programme grant o
f ₹1 crore to the three ventures.
ACKO General Insurance Oyo Hotels and Homes To provide a complimentary

insurance cover up to Rs 10 lakh for
protection against accidental death,
baggage damage, accidental medical
expenses amongst other benefits
like OPD (Outpatient
Department)treatment, etc during
their stay.
Axis Bank Aditya Birla Health To provide Aditya Birla’s suite of
Insurance Co Ltd (ABHICL) insurance products to its customers.
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Aditya Birla’s products will now be

available in Axis Bank customer base
across its 4,094 branches and digital
channels.
Bharti AXA Life Insurance Akshaya Patra Foundation To support and contribute to the
mid-day meal drive for government-
run school children across India.
Bharti AXA Life has urged its over
5,500 employees to donate a day’s
salary to Akshaya Patra to counter
classroom hunger.
Karur Vysya Bank(KVB) Digit Insurance To provide Digit Insurance’s suite of
products to its SMEs(Small and
medium-sized enterprises)
customers.
Bandhan Bank Standard Chartered Bank To provide co-branded credit cards
to its 40 lakh savings bank account
holders across the 1,000 branches of
Bandhan. As part of this
partnership, Standard Chartered
Bank will take the risk of credit
failure & Bandhan Bank will be
responsible for identifying and
issuing cards to its customers.
Indian Bank Tata AIG General To offer Tata AIG General
Insurance Insurance’s diverse range of general
insurance policies to the bank’s
customers. Tata AIG General
Insurance will work with the Indian
bank for sales training, product
support and ensuring smooth
operational processes.
RBL Bank Samsung India and They have jointly launched the
Mastercard Samsung Pay for RBL Bank’s
Mastercard credit card customers.
The tie-up will allow the customers
of RBL bank to make contactless
transactions with enhanced
security on their Samsung Pay-
compatible smartphones efficiently.

NHB infuses additional Rs 10,000 cr in NBFCs
The National Housing Bank (NHB) infused an additional Rs 10,000 crore in Non-Banking
Financial Companies (NBFCs) for Housing Finance Companies (HFCs) as additional liquidity for
individual housing loans for affordable housing. This is done to ease the flow of funds to the
housing sector.
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SBI's Shanghai branch becomes the 1st Indian bank connected to CNAPS
• India’s largest lender, State Bank of India’s(SBI) Shanghai branch has become the first Indian
Bank to be connected to China’s National Advance Payment System (CNAPS). SBI is the only
Indian Bank to have obtained the license to do business in local currency and also inducted to
the CNAPS by the china’s central Bank, ‘People's Bank of China (PBOC)’.
Instant Demat account opening facility launched by Federal Bank for the customers
Instant Demat account opening facility which will help clients to open Demat account instantly
without any heavy paper works, was launched jointly by Managing Director & Chief Executive
Officer (MD & CEO) of Federal Bank, Shyam Srinivasan and G.V Nageswara Rao, MD& CEO of
National Securities Depository Ltd (NSDL).
Mastercard launches ‘Identity Check Express’ for uninterrupted secured online transactions
• American multinational financial services corporation, Mastercard has launched a next-
generation, mobile-first authentication solution, called “Identity Check Express” that will help
customers to do uninterrupted secured transactions while shopping online. The new card
payment feature was showcased in New Delhi at the Global Mastercard Cybersecurity Summit
2019, held for the 1st time in India.
New insurance plan “Jeevan Amar” launched by LIC

• Jeevan Amar is a non-linked, non-participating life term insurance plan offering great flexibility
to policyholders in comparison to other insurance plans by the Life Insurance Corporation of
India (LIC). The policyholder cannot claim the money on maturity but will be obtained as a
death claim incase of demise of the person.
India Post Payments Bank will be converted into SFB: postal Department
• The postal department has decided to convert the India Post Payments Bank (IPPB) into a
small finance bank (SFB) with the aim to provide micro-credit at the doorsteps to individuals
and SME’s (Small and medium-sized enterprises). The postal department also sets a target to
open one crore accounts for IPPB in 100 days. The decision was taken during the annual Heads
of Circles Conference held at Srinagar in Jammu and Kashmir(J&K).
Scheduled bank status is given to Jana Small Finance Bank

• The Reserve Bank of India (RBI) gave the status to Jana Small Finance Bank to operate as a
Scheduled Bank. The bank was established in the year 2009. Currently, it operates 260
branches and 338 asset centres with over 5.5million customers. It aims o provide financial
inclusion to underserved sections of society, like small business units, small and marginal
farmers, micro and small industries.
MSCI added HDFC Life Insurance to its Global Standard Index

• MSCI Inc (Morgan Stanley Capital International), One of the world’s biggest index compilers,
has added HDFC Life Insurance Company Ltd. to its Global Standard Index and removed Union
Bank of India(UBI) from its India Smallcap Index. The changes in the MSCI Index will be
implemented as of the closing hours of August 27, 2019.
Digital payments usage acceleration "Digi Vyapari- Safal Vyapari" initiative launched by CAIT
• The Confederation of All India Traders (CAIT) in partnership with HDFC Bank, Mastercard,
Common Service Centres (CSCs) of Ministry of Electronics and Information Technology (Meity)
and Global Linkers, launched Digi Vyapari- Safal Vyapari- to accelerate usage of digital
payments in the country.
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RBL Bank with digital healthcare platform Practo launches co-branded credit card called “RBL
Bank Practo Plus”
• RBL Bank, one of India’s fastest-growing private sector banks and Practo, a digital healthcare
platform have jointly launched co-branded health-focused credit card called “RBL Bank Practo
Plus” powered by Mastercard. It's benefits include Unlimited online consultations with
experienced and qualified doctors on all-time (24*7) for one year period among others.
India’s first Corporate credit card for SMEs launched by B2B payments startup EnKash
• Business-Business payments startup company EnKash launched the country's first corporate
credit card called 'Freedom Card' for small and medium enterprises (SMEs) and startups. It is
the brainchild of Mr. Naveen Bindal, Co-Founder of EnKash. This card provides the freedom to
avail credit facility for immediate needs and to manage the liquidity of startups.
After State Bank of India, BoB goes the same way to link home loan product to RBI’s repo rate
• Indian multinational, public sector bank, Bank of Baroda (BoB) has linked its home loan
product to RBI’s (Reserve Bank of India (RBI)repo rate after State Bank of India (SBI). With
this, home loans at BOB will be available at repo rate linked interest rate starting at 8.35%,
thus passing on the further benefit of 10 basis points to the present MCLR (Marginal Cost of
Funds based Lending Rate) rated pricing.
Denmark’s Jyske Bank unveiled world's first negative interest rate home loan
• Denmark’s third-largest bank, Jyske Bank has launched the world’s first negative interest rate
mortgage – handing out loans to homeowners where the charge is minus 0.5% a year. It has
begun offering borrowers a 10-year deal at -0.5%. Under its negative mortgage, Jyske bank
borrowers will make a monthly repayment as usual – but the amount still outstanding will be
reduced each month by more than the borrower has paid.
AePS crosses milestone of 200 million transactions in July 2019: NPCI

• Umbrella organisation for operating retail payments and settlement, National Payments
Corporation of India (NPCI) has stated that Aadhaar enabled Payment System (AePS) used by a
total of 6.65 crore Indian citizens stood at 220.18 million with transaction value Rs 9,685.35
crore during July 2019 against the transaction count of 194.33 million with transaction value of
Rs 8,867.33 crore in June 2019.
Centre Issues Guidelines For Granting Rs 1 Trillion Credit Guarantee For NBFCs
• In a bid to help the Financially sound NBFCs (Non- Banking Financial Companies), including
Housing Finance Companies (HFCs), which are facing stress following stocks of defaults, the
Central Government has issued guidelines of partial guarantee scheme covering a maximum
standard asset value of Rs 1 trillion under which state-run public-sector banks(PSBs) can
purchase high-rated pooled assets originated up to March 31, 2019, from NBFCs. Read full
details here: Centre Issues Guidelines For Granting Rs 1 Trillion Credit Guarantee For NBFCs
Aditya Puri, CEO of HDFC bank, is the top-paid bank CEO in FY19
• The Chief Executive Officer (CEO) of HDFC Bank Aditya Puri is the highest-paid bank chief
executive in India with a monthly basic salary of Rs 89 lakh in FY19. The data was compiled
from annual reports. He has been followed by Amitabh Chaudhry of Axis Bank (30 Lakh) and
Uday Kotak (Kotak Mahindra Bank).
BookMyForex join hands with YES Bank for foreign exchange travel card
• An online forex marketplace, BookMyForex has partnered with YES Bank and card payment
company Visa to launch a co-branded multi-currency forex travel card that will provide a
smooth payments solution to Indians traveling abroad. They can load up to 10 currencies on
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the card. BookMyForex will also offer modern contactless cards that allow a user to simply tap
their card on a POS machine.
Acko announces partnership with fintech ZestMoney to offer credit insurance

• Insurtech company Acko General Insurance, has partnered with ZestMoney to offer credit card
insurance to its (ZestMoney) customers. Acko which offers personalized underwriting, micro
insurance products, and automated micro claims process, will offer credit insurance to
ZestMoney customers who are provided with instant financing and the option of paying
through EMIs (Equated Monthly Installments) even if they don’t own a credit card.
NBFCs can use Aadhaar-based bank KYC to give loans: Finance Minister Nirmala Sitharaman
• Finance Minister Nirmala Sitharaman notified that the Non-banking financial companies
(NBFCs) will be permitted to use the Aadhaar based bank mandated KYC (Know Your
Customer) to avoid repeating the process for the customers. The move will simplify and
quicken up the process of availing credit.
Balkan country Serbia becomes 73rd non-regional member of AIIB

• The Minister of Finance Sinisa Mali of Serbia, announced membership with the Asian
Infrastructure Investment Bank(AIIB). By this membership, Serbia officially becomes the 73rd
non-regional member of the AIIB after completing all procedures and met all the conditions for
membership after passing a bill on approval of the AIIB Articles of Agreement and depositing
the Instrument of Accession and the first capital installment with the bank.
CVC sets up 4-member panel to examine bank frauds above Rs 50 crore

• The Advisory Board for Banking Frauds (ABBF) which is a 4member board headed by former
Vigilance Commissioner T M Bhasin (also former Indian Bank Chief Managing Director(MD), is
constituted by The Central Vigilance Commission (CVC) to look into bank fraud cases of over
50 crore rupees and above and to take necessary action. Other Read full details here: CVC sets
up 4-member panel to examine bank frauds above Rs 50 crore
Canara Bank launches India's first OTP facility for ATM cash withdrawals above Rs.10,000
• Canara Bank, one of the largest public sector banks in India has launched India's first one-time
password (OTP) facility for ATM withdrawals over Rs.10,000 in a day. This extra security
armor will protect the card users from illegally withdrawing money from ATMs (Automated
Teller Machine).
Insurance regulator IRDAI has set up a single point contact for RS

• An autonomous body tasked with regulating insurance and re-insurance industries, IRDAI
(Insurance Regulatory and Development Authority of India) has set up a single point contact
for its regulatory sandbox (RS) initiative. The Fintech entities can seek permission to
experiment with innovative products for the growth of the sector.
Centre released Rs.47,436.18 crore to 27 States for green activities

• The Union Minister of Environment, Forest and Climate Change, Prakash Javadekar has handed
over the Rs 47,436.18 crore to 27 States for compensatory afforestation and other green
activities, including prevention of forest fire, biodiversity management and soil conservation.
The Fund will be used as per provisions of the Compensatory Afforestation Fund (CAF) Act and
Rules(CAF Act 2016), under which the CAMPA (Compensatory Afforestation Fund Management
and Planning Authority)has been set up to collect funds from user agencies. The state of
Odisha, the top recipient of funds, got 5933.98 crore.
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Fintech startup based in Bangalore 'MoneyTap' provides lifetime credit of up to Rs.5 lakh
Instantly
• MoneyTap, India’s first company to provide an app-based personal credit line to customers has
announced to provide its customers with a lifetime credit limit of up to Rs. 5 lakh instantly
starting from Rs. 3,000. Unlike personal loans and credit cards, customers pay interest only on
the amount borrowed and at lower rates.
NPCI has rationalises BHIM UPI charges for merchant transactions to promote digital
payments
• In a bid to promote digital payments, an umbrella organisation for operating retail payments in
India, the National Payments Corporation of India (NPCI) has rationalised merchant discount
rates (MDR) for BHIM UPI (Unified Payment Interface) transactions. It has waived merchant
fees for offline UPI transactions of up to Rs 100 made using QR (Quick Response) code scan-
and-pay. For the large transactions, merchant fees have been capped at Rs 100.
10 public sector banks merged into four large entities: Nirmala Sitharaman
• In the biggest consolidation exercise in the banking space, the Finance Minister Nirmala
Sitharaman has made a big announcement that the formation of four large banks by merging
10 banks under the scheme of amalgamation. The decision aimed at making state-owned
lenders global sized banks. With this, the number of public sector banks will be 12 as against
27 in the year 2017. Read full details here: 10 Public Sector Banks Merged Into Four Large
Entities: Nirmala Sitharaman.

GROWTH RATE:
National Council of Applied FY 2019-20 6.2%.This is down from 6.8% in
Economic Research (NCAER) 2018-19.
CRISIL (formerly Credit Rating 6.9% in 2019 (FY-Fiscal Year
Information Services of India 2020). It cuts the forecast from
Limited) 7.1 % to 6.9% due to the
triangulation of downside risks
of the year 2019.
Australia and New Zealand 2019(FY-Fiscal Year 2020) 6.2 %. It revised downwards its
Banking Group (ANZ) outlook for FY20 from 6.5% due
to sluggish domestic demand,
and slowing down of Industry
figures.
Nomura April-June quarter of 2019 5.7%
Moody's Investors Service 2019 6.2%
Federation of Indian Chambers Q1 (April 2019 to June 2019) of 6.0%

of Commerce and Fiscal year FY 2019-20
Industry(FICCI)
India Ratings & Research (Ind- FY20 (Fiscal year 2020) 6.7%. Read full details here:
Ra) India Ratings Downs GDP
Forecast To 6.7% For FY’20
Ministry of Statistics and April to June quarter of 2019- 5%
Programme Implementation 20.
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Microsoft joins hands with Apollo Hospitals to use AI for Cardiovascular Disease
• Targetting cardiac diseases, Microsoft India, a Software company headquartered in Hyderabad
has partnered with Apollo Hospitals Group to set up a National Clinical Coordination
Committee (NCCC), which will guide the two entities on all cardiovascular-related Artificial
Intelligence(AI) projects. It will work for the AI-powered Cardiovascular Disease(CVD) Risk
Score API (application program interface) built on Microsoft Azure (cloud computing service),
to predict the risk of disease.
Pashmina testing centre to be set up by BIS in Leh

• BIS Director-General Ms. Surina Rajan announced that a Testing center for Pashmina, a famous
wool variety in the Jammu and Kashmir region, will be set up by the Bureau of Indian
Standards (BIS) in partnership with the lab of Ladakh Autonomous Hill Development Council
(LAHDC), in Leh, Jammu, and Kashmir.
Consumer affairs ministry releases draft e-commerce norms for consumer protection
• In order to protect the consumers' interest, the Department of Consumer Affairs, Government
of India has released draft guidelines called “e-commerce guidelines for consumer protection
2019” for e-commerce firms. It primarily focuses on fraud, unfair trade practices, privacy
protection of online shoppers, and transactional controls.
PMS Bazaar & EbixCash Fintech partnered to introduce all-in-one PMS & AIF tracking portal for
investors
• PMS Bazaar & EbixCash Financial Technologies (ECFT) tied up to introduce all-in-one PMS &
AIF tracking portal for investors. Through this platform, the investors can analyse their entire
gamut of investments.
Finance Ministry imposed Anti Dumping Duty on PTA imports from South Korea & Thailand
• Based on the recommendations of the Designated Authority in the Commerce Ministry in its
sunset review findings, Union Ministry of Finance imposed definitive anti-dumping duty on all
imports of Purified Terephthalic Acid (PTA) from South Korea and Thailand. PTA is a primary
raw material in the manufacturing of polyester chips, which are used in a number of
applications in textile, packaging, furnishings, consumer goods, resins, and coatings.
Govt. Sets up KABIL to supply critical minerals to the Indian market

• As a way of ensuring a consistent supply of critical and strategic minerals to the Indian
domestic market, a joint venture company Khanij Bidesh India Ltd (KABIL) is to be set up.
KABIL is a venture between National aluminium Company Ltd (NALCO), Hindustan Copper Ltd
(HCL) and Mineral Exploration Company Limited (MECL) with equity participation ration is
40:30:30 respectively.
Centre sets target of transporting nearly 25% of cargo through coastal shipping and inland
waterways over the next 10 years: Mansukh Mandaviya
• On the event of 30th anniversary celebrations of the nation's largest container port
JNPT(Jawaharlal Nehru Port Trust) in Mumbai, Union Minister of State for Shipping , Mansukh
Mandaviya stated that the central government has set a target of transporting nearly 25% of
cargo through coastal shipping and inland waterways over the next 10 years. The increment in
exim cargo will also help to reduce inflation by nearly 2.5 %.
Saudi’s ARAMCO Will Buy 20% Of RIL’s Oil And Chemical Business For $15 Bn
• In the 42nd Annual General Meeting (AGM) of Reliance Industries Ltd(RIL), its Chairman &MD
(managing director) Mukesh Ambani stated that Saudi Arabia’s most profitable oil company
Saudi Aramco will buy 20 % stake of RIL’s oil and chemicals business for about $15 billion
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(approximately Rs 1.06 lakh crore), which will be one of the biggest FDI(foreign direct
investment) deal in the country. Read full details here: Saudi’s ARAMCO Will Buy 20% Of RIL’s
Oil And Chemical Business For $15 Bn
Assam’s rare variety tea from Dikom Tea Estate makes records for being sold at Rs.75,000 per
kg
• A rare tea variety of eastern Assam's Dikom Tea Estate named “Golden Butterfly tea” created a
record of being sold at Rs.75,000 per kg at the Guwahati Tea Auction Centre (GTAC), Assam.
Air India is the first Indian Airline to fly over Zero Degree North Pole
• Air India hoisted its Boeing 777 aircraft (Delhi-San Francisco flight AI-173 ) over the zero
degrees the North Pole and became the first Indian airline to operate commercial flights
overflying polar region. It usually overflies the Atlantic or the Pacific ocean. Flying over the
North Pole saved fuel and time.
Debenture Redemption Reserve requirement for Listed Companies, NBFCs and HFCs removed
by the government
• Ministry of Corporate Affairs has amended the Companies (Share Capital & Debentures) Rules
by removing Debenture Redemption Reserve(DRR) requirement for Listed Companies,
NBFCs(Non Banking Financial Company) and HFCs (Housing Finance Companies). This is done
with the aim of reducing the cost of capital for businesses in the country as part of its 100 Days
Action Plan of “ease of doing business”. Read full details here: Debenture Redemption Reserve
Requirement For Listed Companies, NBFCs And HFCs Removed By The Government.
Mahindra Finance to acquire up to 58.2% stake in Sri Lanka's Ideal Finance for LKR 2 billion
• Rural NBFC (Non Banking Financial Company) Mahindra & Mahindra Financial Services Ltd
has signed a joint venture (JV) with Ideal Finance Ltd (IFL), a subsidiary of the leading Sri
Lankan conglomerate, Ideal Group, for the acquisition of up to 58.2 % stake in the Ideal
Finance for LKR-(Sri Lankan Rupees) 2 billion (nearly Rs 80 crore).
SEBI Eases Norms For FPIs

• The Securities and Exchange Board of India (SEBI) relaxed the compliance requirements for
Foreign Portfolio Investors (FPI). It modified the norms to boost startups and decided on Rs 1
crore reward for informants in insider trading cases. Read full details here: SEBI Eases Norms
For FPIs
Small startups with turnover up to Rs 25 cr to get promised tax holiday

• The Central Board of Direct Taxes (CBDT) notified that small startups with a turnover of up to
Rs 25 crore will continue to get the promised tax holiday as specified in the Section 80-IAC of
the Income Tax (IT) Act, 1961. It provides a deduction for 100% of the income of an eligible
startup for 3 years out of 7 years from the year of its incorporation.
Bharatcraft portal will generate Rs 10 lakh crore revenues in 2-3 yrs: Nitin Gadkari
• The Union Minister of Ministry of Micro, Small and Medium Enterprises(MSME), Nitin Gadkari
stated that the government’s planned e-commerce portal Bharatcraft has the potential to
achieve revenues of around Rs 10 lakh crore in 2-3 years. He stated at the 200th listing of an
MSME company ‘Wonder Fibromats’ on NSE Emerge in Mumbai, Maharashtra.
Government announces measures to boost Indian Economy

• A presentation was made by Union Finance & Corporate Affairs Minister Smt. Nirmala
Sitharaman on measures to boost Indian Economy during a press conference including the
review of sections under Companies Act 1956. Also, Corporate tax rate for companies with
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over Rs 400 crore turnover will be gradually cut to 25% and the government will support
wealth creators. Read full details here: Government announces measures to boost Indian
Economy
Tea grown in Arunachal Pradesh record height set by Assam tea

• A variety of tea grown in Arunachal Pradesh touched the record heights set by Assam tea
where Dikom Tea Estate of Assam had sold its Golden Butterfly tea at Rs 75,000 per kg at the
Guwahati Tea Auction Centre (GTAC). 'Golden Needle' tea produced by Donyipolo Tea Estate in
Arunachal Pradesh was sold by Contemporary Tea Brokers and was bought by city-based
buyer Chattar Singh Narendra Kumar for online tea seller Absolute Tea.
Ahmedabad-Mumbai Central Tejas Express and the Delhi-Lucknow Tejas Express to be run by
IRCTC
• Indian Railways has decided that Ahmedabad-Mumbai Central Tejas Express and the Delhi-
Lucknow Tejas Express will be run by the Indian Railway Catering and Tourism Corporation
(IRCTC), a subsidiary of the Indian Railways, for a period of 3 years as a pilot project. The
proposal was mooted by the railways in its 100-day plan.
Amazon launches Military Veterans Employment programme in partnership with DGR and
AWPO
• Amazon India launched Military Veterans Employment programme in order to create
opportunities for military veterans and their spouses in partnership with Director General of
Resettlement (DGR) and the Army Welfare Placement Organisation (AWPO).
India failed to comply with the multiple requirements prescribed in SDDS: IMF Report for 2018
• According to the report titled “Annual Observance Report of the Special Data Dissemination
Standard for 2018” released by the International Monetary Fund (IMF), India failed to comply
with the multiple requirements prescribed in Special Data Dissemination Standard (SDDS)
which are mandatory for all IMF members. The report lists the compliances & deviations from
the SDDS under each data category for a particular year. There are 20 data categories.
STPI sets up India’s 1st FinTech centre of excellence-“Fin Blue” in Chennai, Tamil Nadu
• Software Technology Parks of India (STPI) in association with Electronics Corporation of Tamil
Nadu(ELCOT) has officially set up a ‘Centre of Excellence in FinTech’ with a cost of over ₹23
crore in Chennai, Tamil Nadu. It is first of its kind in India and is named ‘FinBlue’.
7 oil and natural gas blocks for bidding offered by the government under OALP-IV
• Government offered 7 oil and natural gas blocks for bidding under Open Acreage Licensing
Policy (OALP)-IV. Five blocks offered are in little-explored Vindhyan sedimentary basin, 1
block is in Bengal Purnea basin and 1 block is the proven basin of Rajasthan.
SIDBI partners with Incuspaze for coworking space for MSMEs

• Small Industries Development Bank of India (SIDBI) has partnered with Incuspaze Solutions
Private Limited (Incuspaze) to open a coworking space, designed for Micro, Small and Medium
Enterprises(MSMEs) and startups. This coworking space called @Workspaze is located in
Connaught Place, New Delhi.
Microsoft launches "Digital Governance Tech Tour" programme to skill government IT officials
in new-age technologies
• IT (Information Technology) company, Microsoft India has launched a program called ‘Digital
Governance Tech Tour’ in line with the Digital initiative of the Indian government to train 5000
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government employees over a period of 12 months on AI (artificial intelligence) and cloud

computing skills.
CBDT frames 5-member special cell to redress grievances of start-ups

• In a bid to redress the grievances of start-ups and reduce their tax-related issues, the Central
Board of Direct Taxes (CBDT) has constituted a 5-member special cell led by the member
(Income Tax and Computerisation) of CBDT, P.K. Dash (Addl. Charge), which will work towards
the issues with relation to angel tax and others in case of Start-up entities with respect to
administration of the Income-tax Act, 1961.
2% TDS on cash withdrawals of over Rs 1 crore to come into effect from September 1, 2019
• The Department of Revenue notified that 2% tax deduction at source (TDS) on cash
withdrawals of over Rs 1 crore will come into effect from September 1, 2019. The government
had made this provision in the Union Budget 2019-20 with an aim to discourage cash
transactions and move towards less cash economy.
CAGR of Digital payments in India recorded at 12.7%

• According to the report titled "Fintech in India - Powering mobile payments" released by
KPMG, a global advisory firm, Digital payments in India have grown with a compound annual
growth rate (CAGR) of 12.7% in the number of non-cash transactions. The global digital
payments market is expected to touch $10.07 trillion by 2026.
2019 Banking & Economy – SEPTEMBER

RBI in News
Loans Will Be Cheaper From October 1, 2019 As RBI Makes Repo-Linked Interest Rates Mandatory
• The Country’s central bank, Reserve Bank of India(RBI) has asked banks to link all new types
of floating-rate loans (home, auto loans & and micro, small and medium enterprises (MSME))
to external benchmark like repo rate from October 1, 2019. The move comes after the
borrowers of industry and retail loans have been complaining that despite the reduction in the
repo rate by the Reserve Bank, commercial banks are not giving full benefits to the consumers.
Read full details here: Loans Will Be Cheaper From October 1, 2019 As RBI Makes Repo-
Linked Interest Rates Mandatory
RBI barred ESFB from opening new branches

• The apex bank of the country, the Reserve Bank of India (RBI) barred the Equitas Small
Finance Bank (ESFB) from opening new branches. The decision comes after ESFB missed the
deadline to list its shares on stock exchanges.
RBI selects Daffodil Software Pvt Ltd for developing mobile app for visually impaired
• The Reserve Bank of India (RBI) selected Daffodil Software Pvt Ltd to develop a mobile phone-
based application for visually impaired people to identify currency notes. It informed the
Bombay High Court that an internet connection would not be required for its proposed mobile
application.
An internal group of RBI to assess the adequacy of forex reserves

• An internal group of the Reserve Bank of India (RBI) will frame a formal mechanism to assess
the adequacy of its foreign exchange (forex) reserves. RBI had recently adapted the fresh
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Economic Capital Framework (ECF) as recommended by Bimal Jalan Committee on ECF which
noted that RBI’s forex reserves in 2008 were higher than India’s external debt. The panel will
study whether forex reserves are adequate or not and how much reserves are adequate to
cover various risks.'
RBI increases loan exposure limit of banks to a single NBFC (excluding gold loan companies) from 15%
to 20%
• As announced in the Statement on Developmental and Regulatory Policies dated August 7, 2019 on
‘Harmonisation of single counterparty exposure limit for banks’ exposures to a single NBFC with
general single counterparty exposure limit’, the Reserve Bank of India (RBI) has made amendments in
the Large Exposures Framework (LEF). It has increased the bank's loan exposure limit to a single NBFC
(non-banking financial company) to 20 % from 15 % of its eligible capital base. However, this is not
applicable to gold loan companies.
RBI reduces the risk weight on consumer credit required by banks from 125 % to 100 %
• The country’s central bank, Reserve Bank of India (RBI) has cut the risk weight of consumer credit,
including personal loans from 125 % to 100 %. Now banks will be able to give more loans to customers
for purchasing consumer products such as mobile phones, home appliances, two-wheelers, and three-
wheelers.
RBI proposes new rule to set up Rs 200 crore minimum capital for SFB under 'on tap' license regime
• Reserve Bank of India (RBI) has framed new guidelines in licensing Small Finance Banks(SFB) under
‘On-tap’ regime in order to make more participants in the finance banking section. As per the new
guideline, the SFBs should have Rs. 200 crores minimum capital except for such small finance banks
which are converted from Urban Co-operative Banks (UCBs). UCB's should initially have at least Rs.100
crores from the start of the operation, however, it should make it to Rs. 200 crores capital within 5
years, from the date of commencement of business. Read full details here: RBI proposes new rule to
set up Rs 200 crore minimum capital for SFB under 'on tap' license regime
RBI Panel Chaired By Mahesh Kumar Jain Suggests To Set Up Of A Federal Body Like GST Council For
The Agriculture Sector
• The RBI (Reserve Bank of India) panel has suggested creating an institution like the GST
(Goods and Services Tax) Council to implement reforms in the agricultural sector. It was also
recommended to transfer subsidy directly to the account and avoid debt waiver. Read full
details here: RBI Panel Chaired By Mahesh Kumar Jain Suggests To Set Up Of A Federal
Body Like GST Council For The Agriculture Sector
Indian Banks’ 2018-19 Savings Deposits Stood At Rs 39.72 Lakh Crore

• According to the Handbook of Statistics on the Indian Economy 2018-19 released by the
Reserve Bank of India (RBI), the aggregate savings deposits in the Indian private and public
sector banks (PSBs) reached Rs 39.72 lakh crore as on March 31, 2019. The foreign banks had a
share of Rs 58,630 crore. Read full details here: Indian Banks’ 2018-19 Savings Deposits
Stood At Rs 39.72 Lakh Crore
RBI allows all recurring bill payments through BBPS

• Reserve Bank of India(RBI) has extended the use of the Bharat Bill Payment System(BBPS) for
all recurring(repetitive) payments such as school fees, insurance premiums and municipal
taxes, Equated Monthly Installments (EMI) on a voluntary basis except for prepaid recharges to
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extend the scope and coverage of BBPS.
Reserve Bank bars unregulated fintech firms from accessing the consumer credit data
• The country’s central Bank, Reserve Bank Of India(RBI) has directed the banks and non-
banking finance companies (NBFCs) to stop sharing the pattern of consumer’s credit
information held by credit information companies (CICs) with analytics firms, IT (Information
Technology) companies, institutional agents and unregulated parties. The banking bodies have
been given 15days time period to implement the measure.
RBI & SEBI Jointly Working On A Framework For Accurate Exchange Of Borrower Data Between Banks
And CRAs
• India’s central Banking Institution, the Reserve Bank of India (RBI) and the regulator for the securities
market in India, SEBI (Securities and Exchange Board of India) are jointly working on a framework that
will freely enable exchange of borrower information between banks and credit rating agencies (CRAs)
in more accurate manner. Read full details here: RBI &SEBI Jointly Working On A Framework For
Accurate Exchange Of Borrower Data Between Banks And CRAs
Reserve Bank Comes Out With A New Order Regarding ‘Failed’ Transactions
• The country’s central bank, the Reserve Bank of India (RBI) has come out with a new order for banks
and payment system operators regarding the failed transaction of customers. Under this, the time
period has been fixed for the disposal of grievances and auto reversal of the amount on the failed
transaction for the banks, which has been termed as Turn Around Time (TAT).
RBI Revises Guidelines On Concurrent Audit System As Per The Recommendations Of An Expert
Committee Headed By Y.H. Malegam
• Following the recommendations of an expert committee headed by Y.H.Malegam, the Reserve
Bank of India (RBI) has revised the guidelines on concurrent audit system. As per the new
guideline, concurrent auditors will be appointed for a period of not more than 3 years as
against earlier tenure of 5 years & the age limit for retired staff of concurrent auditors will be
capped at 70 years. Read full details here: RBI Revises Guidelines On Concurrent Audit
System As Per The Recommendations Of An Expert Committee Headed By Y.H. Malegam
RBI increased the loan sanction limit for small exporters to Rs 40 crore per borrower from Rs 25 crore
• The Reserve Bank of India (RBI) increased the loan sanction limit for small exporters as
priority sector lending (PSL) by banks to Rs 40 crore per borrower from Rs 25 crore in order to
boost credit to the export sector.
RBI bans PMC Bank, account holders will not be able to withdraw more than 1000 in a day
• The country’s central bank, Reserve Bank of India (RBI) has prohibited Punjab and
Maharashtra Co-operative Bank Limited (PMC) on business transactions of any kind for the
next 6 months following the detection of alleged irregularities. The RBI has taken this action
under section 35A of the Banking Regulation Act, 1949.
RBI Placed Lakshmi Vilas Bank Under Prompt Corrective Action(PCA) Framework
• The country’s central bank, Reserve Bank of India (RBI) has put the Prompt Corrective Action
(PCA) Framework against Lakshmi Vilas Bank (LVB) after an inquiry against the directors of
the bank over the alleged fraud. RBI puts the bank in PCA due to reasons like high net NPA
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(Non Performing Assets), insufficient capital to risk-weighted assets ratio (CRR) and Common
Equity Tier 1 (CET1) negative RoA (Return on assets) for two consecutive years. Read full
details here: RBI Placed Lakshmi Vilas Bank Under Prompt Corrective Action(PCA)
Framework

Loan issued by Received Amount Points to be noted
by
Asian Maharashtra $ 200 To upgrade about 2,100 kilometers of rural roads to all-weather
Development million standards in Maharashtra’s 34 districts for better connecting rural
Bank (ADB) (about Rs areas with markets and services. Under the project, a provision of
1,400 crore) contractual maintenance for 5 years following construction has
also been provided. In addition to the loan amount, $1 million will
be provided for institutional strengthening of the Maharashtra
Rural Roads Development Association.
Central Bank of Edelweiss Financial Entered into an agreement for priority sector lending to Micro, Small
India (CBI) Services, ECL and Medium Enterprises (MSME). This is the first such partnership
Finance Limited which was made following the announcement of a progressive co-
origination policy issued by the RBI (Reserve Bank of India)in
September 2018.
State Bank of Employees' State For the Direct Benefit Transfer (DBT) facility to all the insured
India (SBI) Insurance beneficiaries of ESIC. As per the agreement, SBI will provide e-payment
Corporation (ESIC) services to all the beneficiaries of ESIC directly in their bank account.
State Bank of ECL Finance Limited Entered into an agreement for priority sector lending (PSL) to Micro,
India (SBI) Small and Medium Enterprises (MSME). This is a third such co-
origination tie-up for Edelweiss after the Bank of Baroda(BoB) and
Central Bank of India(CBI).
PayU ZestMoney To provide payment technology to online merchants to offer cardless
EMI (equated monthly installment) payment option to consumers.
ZestMoney, which has diverse customer base spread across different
segments and risk profiles, aims to offer loans of amount starting from
Rs 1,000 - Rs 5 lakh as per the demand of the customer anywhere.
Indian Bank Max Bupa To provide Max bupa’s suite of health insurance products to its
customers. The product portfolio comprises Max Bupa’s both retail &
group health insurance products besides Indemnity and Fixed Benefit
products.
Bharti AXA Life Bharti Airtel To offer prepaid plan for its users along with insurance protection plan.
Insurance Airtel has brought a special prepaid plan of Rs 599, in which customers
will get 2GB (gigabyte) data per day, unlimited calling and 100 SMS
(Short Message Service) per day on any network, as well as a life
insurance cover of Rs 4 lakh from Bharti AXA Life Insurance.
Bank of Paisalo Digital With the aim to necessitate the joint contribution of credit flow by BoM
Maharashtra (Formerly known as and Paisalo Digital. The arrangement also involve sharing of risks &
(BoM) S.E Investments gains between them.
Limited)
Federal Bank Pine Labs To offer EMIs (equated monthly instalments) for offline debit card
transactions. Federal Bank's 57 lakh debit card customers will now be
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able to instantly avail loans on EMI at the Pine Labs terminals.

Repco Home SBI (State Bank of To provide SBI Life’s range of products to its customers. SBI Life
Finance Ltd India) Life Insurance Insurance will reach more new customers across geographies to meet
(RHFL ) their diverse insurance needs.
Bank of Baroda Hyundai Motor India To provide preferred financing to its dealers and consumers. Under this
(BoB) Limited (HMIL) partnership, BoB will create a detailed financing structure (as per its
existing product program of supply chain finance) for customers and
dealers, which will help the bank expand its presence in the Hyundai
Motor India Limited network.
Airtel Payments HDFC ERGO General To offer unique Mosquito Diseases Protection Policy (MDPP) to protect
Bank Insurance Company against mosquito-borne diseases. This partnership aims to contribute
to the financial inclusion of the country through the strong distribution
network of Airtel Payments Bank and strong innovation of HDFC ERGO
(Housing Development Finance Corporation Ltd).
PNB MetLife Religare Health To bundle and sell the live covers of Religare comprising health, death
India Insurance Insurance and illness.The policy package will be offered from mid December
Co. Ltd 2019. With this integration, the customer of PNB MetLife will get this in
a single policy.
Paytm Aegon Life To offer comprehensive life insurance products.As per this agreement,
Insurance Paytm will distribute Aegon Life products to its customers. The product
portfolio comprises existing and co-created tailor-made propositions.

India increases contribution to Global Fund, $22 mn for 6th cycle
• Union Minister for Health and Family Welfare, Dr Harsh Vardhan stated that the central government
will contribute $22 million to the Global Fund for AIDS, TB and Malaria (GFTAM) for the 6th
replenishment cycle (2020-22), an 10% jump of the amount US$ 20 million contributed in the 5th cycle.
So far, India has contributed US$ 46.5 million till 2019.
Cabinet approves Rs 9,300 crore package capital infusion for IDBI Bank
• Information and Broadcasting(I&B) Minister Prakash Javadekar stated that the central Cabinet meeting
chaired by Prime Minister Narendra Modi, Government of India(GoI) has approved a capital infusion of
Rs 9,300 crore in IDBI Bank (Industrial Development Bank of India). The objective behind the
government's move is to increase the bank's capital base.
ICICI becomes the country's first bank to deploy ‘Robotic Arms’ for counting currency at its chests
• ICICI Bank (Industrial Credit and Investment Corporation of India), the leading private sector lender,
has become the 1st bank in India to deploy industrial 'robotic arms' to count millions of notes in
currency chests across the country. 14 machines (robotic arms) have been deployed in 12 cities so that
all these can count 6 million notes in a working day or about 1.80 billion notes annually.
Joint India- NDB Workshop On Enhancing NDB’s Engagement With the Indian Private And Public Sector
Held In New Delhi
• Joint India- New Development Bank (NDB) workshop on Enhancing NDB’s engagement with the Indian
private and public sector was held for a day in New Delhi. It was co-organized by NDB and the
Department of Economic Affairs (DEA), Ministry of Finance of the Government of India. It was co-
chaired by Shri K. Rajaraman, Additional Secretary of DEA, Mr. Xian Zhu, Vice President and Chief
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Operations Officer (COO) of NDB. Read full details here: Joint India- NDB Workshop On Enhancing
NDB’s Engagement With The Indian Private And Public Sector Held In New Delhi.
Standard Chartered Bank launches new "DigiSmart" credit card

• The Standard Chartered Bank, a British multinational banking and financial services company has
launched its “DigiSmart” credit card primarily focused on the ever-growing segment of millennials. The
new credit card is available for a nominal monthly fee of only Rs 49. However, this fee will be waived off
if the spends of the customer are Rs 5,000 or above in the previous month.
Banks begin in-principle approval of retail loan in 59 minutes

• All 19 public sector banks (PSB) including State Bank of India(SBI), Punjab National Bank (PNB), Bank
of Baroda (BOB) have initiated in-principle retail loan approval for customers availing housing and
personal loans under the online lending platform 'PSB Loans in 59 Minutes'. Currently, this platform is
providing loan approval to the MSME (Micro, Small and Medium Enterprises) sector.
UPI transactions reaches 918 million, crossed all time high of 900 million mark for August
• National Payments Corporation of India (NPCI) has released a data on the new record created by
Unified Payments Interface (UPI) transactions that reached an overall high of 918 million transactions
worth Rs 1.54 lakh crore by the end of August, 2019 crossing the 900 million transaction mark. the new
milestone in transaction was due to increase in adoption to payment channel and improved
smartphone usage in certain states.
MSME Ministry Launched Updated Credit Linked Capital Subsidy Scheme (CLCSS)
• In the 2-day event of national workshop on ‘Credit Linked Capital Subsidy and Delayed Payment of
MSMEs’ held at New Delhi, the Union Minister for Micro, Small and Medium Enterprises Shri Nitin
Gadkari has launched the updated Credit linked Capital Subsidy Scheme (CLCSS) to enable micro, small
and medium enterprises (MSMEs) access to capital. Read full details here: MSME ministry launched
updated Credit linked Capital Subsidy Scheme (CLCSS)
IPPB launched AePS services

• Union Minister for Communications, Electronics & Information Technology and Law & Justice Shri Ravi
Shankar Prasad announced that India Post Payments Bank (IPPB) has launched Aadhaar Enabled
Payment System (AePS) Services at the first anniversary of its business operations. With this, IPPB
became the single largest platform in the country for providing interoperable banking services to the
customers of any bank including the 34 crore Jan Dhan account holders.
India announces $1 mln disaster relief aid for Bahamas as it is affected by Hurricane Dorian
• The Government of India (GoI) announced humanitarian assistance of $1 million as immediate disaster
relief to help people in The Bahamas affected by Hurricane Dorian which has caused large scale
destruction. The death toll is more than 40 and is likely to increase.
India Ratings cuts FY20 growth forecast for NBFCs to 10-12%

• Credit rating agency India Ratings & Research (Ind-Ra) downgraded growth forecast for Non-Banking
Financial Companies (NBFC) to 10-12% from the previous estimate of 15% due to slowdown in
economic activity. It also revised NBFC’s outlook from stable to ‘negative’.
Finance ministry notifies code of conduct for non-official directors of PSBs

• The Department of Financial Services, Ministry of Finance of the Government of India has issued a code
of conduct for non-official directors of Public Sector Banks (PSBs). The boards of the banks will have to
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send an annual performance report which rates a director based on professional and ethical conduct,
and contribution to the board.
IDBI & LIC CSL to launch a co-branded credit card

• The Industrial Development Bank of India (IDBI Bank) and Life Insurance Corporation of India Credit
Cards Services (LIC CSL), a wholly-owned subsidiary of LIC, will launch a co-branded credit card. It will
be marketed to customers, agents, and employees of the corporation and its subsidiaries.
SBI revises service charges for deposits and withdrawals from October 1, 2019
• State Bank of India (SBI) has announced revision in charges of deposits and withdrawals that will be
effective from October 1, 2019. The new revision is applicable to cash withdrawals, non-maintenance in
Average Monthly Balance(AMB) and deposits.
Karnataka Bank MD & CEO MS Mahabaleshwara inducted into IBA’s Managing Committee
• The Managing Director (MD) and Chief Executive Officer (CEO) of Karnataka Bank, M S Mahabaleshwara
was included in the Managing Committee of Indian Banks Association (IBA). He was elected unopposed
from the private sector member banks category.
CBDT notifies E-assessment Scheme 2019 for faceless scrutiny of income tax return
• The Central Board of Direct Taxes (CBDT) notified the e-assessment scheme 2019 for conducting
faceless scrutiny assessment of income tax returns (ITR). It will be established at regional and national
level with auto-allocation of different scrutiny matters.
NPCI reduced merchant discount rate on RuPay Debit Card to 0.60 % on transactions above Rs 2,000
• An umbrella organization for operating retail payments and settlement systems, National Payments
Corporation of India (NPCI) has rationalized merchant discount rate (MDR) on transactions with RuPay
debit cards. The new rate will be effective from 20 October 2019. MDR has been revised to 0.60 percent
on transactions above Rs 2,000. There will be a maximum of Rs 150 per transaction. Currently, MDR of
0.90 percent is charged on transactions above Rs 2,000. The maximum limit was fixed at Rs 1,000 per
transaction.
ECGC introduces ‘NIRVIK’ scheme to provide 90% insurance cover on the loan amount of exporters:
Piyush Goyal
• The Export Credit Guarantee Corporation (ECGC) has released a new Export Credit Insurance Scheme
(ECIS) called NIRVIK to ease the lending of loan to exporters so that they can get loans easily from
banks. The details of the scheme were shared by Union Minister of Commerce and Industry and
Railways, Piyush Goyal during a press conference at New Delhi. The scheme provides 90% insurance
cover on the loan amount of exporters & it covers on both principal and interest.
Code for Responsible Lending (CRL) for the micro-credit industry launched by MFIN, Sa-Dhan and FIDC
• In order to bring more transparency & address customer-centric issue, the Code for Responsible
Lending (CRL) for the microcredit industry was jointly launched by Microfinance Institutions Network
(MFIN), the RBI-recognised self-regulatory organization & and industry association for the
microfinance industry, Sa-Dhan along with FIDC(Finance Industry Development Council) at Sa-Dhan's
15th Annual National Conference 2019 held in New Delhi.
Government exempts 2% TDS on cash payments of over Rs 1 crore made through APMCs
• Finance Minister of India Smt Nirmala Sitharaman notified that 2% Tax Deducted at Source (TDS) on
cash payments above Rs 1 crore made through Agricultural Produce Market Committees (APMCs) will
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be exempted and it is set to be effective from October 1, 2019. This is aimed to discourage cash
transactions and move towards a less-cash economy.
EPFO to credit 8.65% interest in over 6 crore accounts for 2018-19

• Minister of State (Independent Charge) of the Ministry of Labour and Employment Santosh Kumar
Gangwar notified that over 6 crore members of the Employees' Provident Fund Organisation (EPFO)
will get 8.65% interest on deposits, which will be credited to the accounts, for 2018-19 after the
approval from the Ministry of Finance.
Airtel Payments Bank launched 'Bharosa' savings account

• Airtel Payments Bank, a public limited company with its headquarters in New Delhi has launched
"Bharosa" savings account services with the aim of deepening the financial inclusion in India.
Customers of Airtel Payments Bank will get personal accident insurance up to Rs 5 Lakh, even with the
minimum balance of 500. However, the customer will need to make a debit transaction at least once a
month.
Visa in partnership with BillDesk to launch interface for recurring payments , "standing instructions
(SI) Hub"
• Visa Inc, the world's leader in digital payments technology and BillDesk, an Indian online payment
gateway company have partnered for the launch of SI (standing instructions)-Hub which is a smooth
and secure way to make recurring payments using cards with a one-time enrollment. This comes after
the introduction of guidelines for e-mandate on cards for recurring transactions by RBI (Reserve Bank
of India).
Till March 31, 2020, Banks to not declare stressed assets of MSMEs as NPAs: Sitharaman
• After meeting with the heads of public sector banks(PSB) to discuss various issues, including follow up
on transmission of monetary policy rates, Finance Minister Nirmala Sitharaman stated that in order to
overcome the slowdown in the economy and increase business activities, the government asked banks
not to declare stressed loans of Micro, Small and Medium Enterprises (MSMEs) as Non Performing
Assets (NPAs) until March 31, 2020. (Stressed assets = NPAs + Restructured loans + Written off assets.)
India Post launches speed post service for six new countries
• The Department of Posts has expanded its speed post service to 6 new overseas destinations in Asia,
Europe and South America. It has introduced International Speed Post (EMS) for Bosnia and
Herzegovina, Brazil, Ecuador, Kazakhstan, Lithuania and North McDonia. EMS is a premium service that
enables its users to send documents and merchandise faster and in this service goods can be monitored
online with the help of the internet.
BoB launches agri digital platform called “Baroda Kisan”

• Indian multinational, public sector banking and financial services company, Bank of Baroda (BoB) has
launched an agriculture digital platform called “Baroda Kisan” in Bardoli, Surat,Gujarat. It is a web-
based portal that can also be accessed by farmers through mobile. The digital portal will address all the
various needs of farmers.
SEBI tightens guidelines for debt mutual fund applicable from April 1, 2020
• In order to improve the risk management & ensure sufficient liquidity, the regulator for the securities
market in India, SEBI (Securities and Exchange Board of India) has tightened the rules for mutual funds,
in which it make it mandatory for liquid schemes to hold at least 20 % in liquid assets such as cash and
cash equivalents like treasury bills and repo on government securities. The new guideline comes into
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force from April 1, 2020. Read full details here: SEBI Tightens Guidelines For Debt Mutual Fund
Applicable From April 1, 2020
PNB launches 1st of its kind Preventive Vigilance portal to facilitate all staff to contribute towards
arresting procedural lapses
• In order to promote vigilance awareness, the Punjab National Bank(PNB) has introduced 1st of its kind
Preventive Vigilance (PV) portal to facilitate all staff members to contribute towards arresting
procedural lapses and unhealthy practices at a function held at PNB Corporate Office, New Delhi,
chaired by Sharad Kumar, Central Vigilance Commissioner.
Basel-based BIS launches ‘green’ bond fund for central banks to promote green finance
• In the latest dimension of global central bank’s interest in environmental sustainability, the Bank of
International Settlements (BIS) has launched a dollar green bond fund enabling central banks around
the world to invest in “green bonds”. It is an open-ended bond & drawn the pool of assets from a global
group of central banks to develop green finance through sizeable climate-friendly investments. It is
structured under the Swiss law & will be managed in-house by Asset Management handout of BIS,
which is owned by 60 central banks. These are denominated in US dollars. Read full details here: Basel-
Based BIS Launches ‘Green’ Bond Fund For Central Banks To Promote Green Finance.

GROWTH RATES:
DBS bank(earlier Development Bank of Singapore Ltd) FY 20 6.20%
CRISIL (formerly Credit Rating Information Services of FY20 (Fiscal Year 6.30%
India Limited) 2020)
International Monetary Fund(IMF) FY20 (Fiscal Year 7%
2020)
Organisation for Economic Co-operation and Development 2019 (FY-Fiscal Year 5.9% and 6.3 % in 2020
(OECD) 2020) (FY21).
Asian Development Bank (ADB) FY 2019-20 6.50%
United Nations Conference on Trade and Development 2019 6%
(UNCTAD)
India will overtake China as the largest importer of coking coal by 2025
• According to the report of Fitch Solutions Macro Research, India will overtake China as the largest
importer of coking coal by 2025. It has been estimated that India’s coking coal consumption will grow at
an annual average rate of 5.4% between 2019 and 2028, driven by an equally robust expansion in steel
production.
IIT-Kharagpur and Amazon Web Services collaborates to develop AI portal

• Indian Institute of Technology-Kharagpur (IIT-KGP) has partnered with e-commerce giant Amazon’s
subsidiary, Amazon Web Services (AWS) in developing National Artificial Intelligence Resource Portal
(NAIRP) to develop and promote Artificial Intelligence(AI) learning for all AI learners and Practitioners.
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Sabka Vishwas - Legacy Dispute Resolution Scheme operationalised from 1st September 2019
• Sabka Vishwas legacy dispute resolution scheme for tax payers announced by finance minister
Nirmala Sitharaman in the 2019-20 union budget, has started off with its operation from
September 1, 2019 and will be operational till December 31, 2019. Read full details here:
Sabka Vishwas – Legacy Dispute Resolution Scheme Operationalised From 1st
September 2019.
Ashok Leyland becomes the first OEM to meet BS-VI emission norms
• Ashok Leyland, Indian automobile major headquartered in Chennai, Tamil Nadu has become the 1st
Indian original equipment manufacturer (OEM) to meet the Bharat Stage (BS ) VI emission standards
for all its heavy-duty trucks with a gross vehicle weight of 16.2 tonnes and above.
Asia's only 5th Generation VR based Advanced Driver Training Simulator Centre launched at Chennai
• Rtn G Chandramohan, Rotary Governor, Rotary International District 3232 launched Asia's first 5th
Generation - Virtual Reality (VR) based Advanced Driver Training Simulator Centre at the Automobile
Association of Southern India Centre (AASI), Chennai, in the presence of T D Sadasivam, Chairman and
other Executive Committee members of AASI. It is aimed to reduce on-road fatalities and make Indian
roads safer.
Reliance Power will give electricity to Bangladesh for next 22 years

• Bangladesh has signed a power project agreement to buy 718 megawatts(MW) of electricity
from India's Anil Ambani led Reliance Power over the next 22 years. For which the company
plans to invest about $1 billion to set up a local plant at Meghnaghat in Narayanganj, over 20
km southeast of the capital Dhaka, Bangladesh by 2022. It will be a combined cycle power
plant, which will be set up in collaboration with Japanese energy major JERA. Reliance Power
will hold 51 per cent stake in the joint venture (JV) company while JERA will hold 49 per cent
stake.
CCEA approves ethanol price revision for supply to Public Sector Oil Marketing Companies
• Cabinet Committee on Economic Affairs(CCEA) chaired by Prime Minister Narendra Modi, has
approved revision of price of ethanol (ethyl alcohol) for the sugar season 2019-20 derived
from various raw materials under the Ethanol Blended Petrol (EBP) programme. The revision
comes into effect from 1st December 2019 till 30th November 2020.
India's FDI grew by 28% to $16.33 bn in Q1 FY 2019-20; Singapore emerged as the largest source
• According to the official data from the Commerce and Industry Ministry, Government of India, the
Foreign Direct Investment (FDI) into India grew by 28% to $16.33 billion in the first quarter (Q1)-
April-June 2019-20. FDI inflows in April-June of 2018-19 was $12.75 billion. Singapore emerged as the
largest source of FDI in India during April-June 2019-20 with $5.33 billion investment.
CBDT signed 26 advance pricing agreements(APA) during April - August 2019

• The Central Board of Direct Taxes (CBDT) has signed 26 Advance Pricing Agreements (APAs)
of the taxation issue in the first five months (April – August 2019) of the current financial year
2019-20. he number of such agreements entered by CBDT has reached 297. These include 32
bilateral advance agreements. Of these, 26 APA so far the year 2019, one agreement has been
reached with the UK (United Kingdom) on a bilateral basis while the remaining 25 agreements
have been unilateral.
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Under IBC, government plans to waive off the debts of small distressed borrowers
• Corporate Affairs Secretary Injeti Srinivas notified that there are plans to waive off the debts of small
distressed borrowers using the 'fresh start' provisions of the Insolvency and Bankruptcy Code (IBC). It
would be for the most distressed individuals within the economically weaker section (EWS). The waiver
will cost Rs 10,000 crore per annum.
New GDP series to align with global method unveiled by the Union Government
• Union government unveiled a linked back-series of India’s growth numbers from 1950-51 to
2003-04, with 2011-12 as the base year with an aim to arrange the GDP (Gross Domestic
Products) figures from past years with the new internationally accepted methodology that
facilitates comparisons.
Niti Aayog selected McKinsey & Company to set up India's first Digital Capability Centre in New Delhi
• National Institution for Transforming India (Niti Aayog) has selected McKinsey & Company to
set up India's first Digital Capability Centre (DCC) in New Delhi. The government will act as a
facilitator to bring together industry, academia, and research on one platform by forming DCC.
The US becomes the world’s top oil exporter surpassing Saudi Arabia and Russia
• The International Energy Agency (IEA) notified that the United States (US) became the top oil
exporter in the world by overtaking Saudi Arabia and Russia. In June 2019, crude exports grew
above 3 million barrels per day (bpd) in the US. IEA has estimated the growth in global oil
demand in 2019 at 1.1 million bpd and 1.3 million bpd for 2020.
Overview of union minister of finance & corporate affairs Smt. Nirmala Sitharaman's presentation on
measures to boost economic growth
• Union minister of finance & corporate affairs Smt. Nirmala Sitharaman made another
presentation on the measures to boost economic growth. Earlier the announcements were
made on August 23 and 30, 2019 regarding the series of measures to enhance economic
growth of India. Read full details here: Overview of union minister of finance & corporate
affairs Smt. Nirmala Sitharaman's presentation on measures to boost economic growth
Commerce Minister PiyushGoyal launched digital platforms for origin certificate issuance and steel
import monitoring system (SIMS)
• Commerce and industry minister Shri Piyush Goyal (also railway minister) and Piyush Goyal and
minister of State Hardeep Singh puri launched Steel Import Monitoring System (SIMS) for obtaining
steel import information by the govt and other stakeholders for efficient policy intervention. Piyush
also launched a Common digital platform for electronic Certificates of Origin (CoO) issuance. This
platform will act as a single access point for exporters, Free Trade Agreements (FTA)/ Preferential
Trade Agreements (PTA) and others.
Govt waives 3-year lock-in period on NRI investments in IDF bonds

• In order to boost foreign investment in the infrastructure sector, waived off the3-year lock-in
period for investments made by Non-Resident Indians(NRI) in Infrastructure Debt Funds
(IDFs), as notified by the Central Board of Direct Taxes (CBDT). Transferring Rupee
denominated bonds of IDF by an NRI to another NRI outside India, are not considered as
transfers for capital gain purpose and no capital gain tax is charged on such transfers. Read full
details here: Govt waives 3-year lock-in period on NRI investments in IDF bonds.
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32 FMCG companies launched “KaroSambhav”-packaging waste management venture,aims to mobilise

Rs.1000 cr
• To address the growing concern of plastic wastes 32 leading Fast-Moving Consumer Goods
(FMCG) companies like Coca-Cola India, PepsiCo India, and Bislerietc are to jointly launch first-
of-its-kind packaging waste management venture named Karo Sambhav in the country that
aims to create an ecosystem for post-consumer packaging collections and optimization of
material recycling processes.
Overview Of Taxation Laws (Amendment) Ordinance 2019

• Union Minister for Finance & Corporate Affairs Smt Nirmala Sitaraman in a Press Conference in Goa
notified that Taxation Laws (Amendment) Ordinance 2019 was introduced to make certain
amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019. Read full details here:
Overview Of Taxation Laws (Amendment) Ordinance 2019
UAE tops in non-residents investments in Indian MFs with the share of 16%
• The Reserve Bank of India (RBI) notified that the United Arab Emirates (UAE) emerged as a top
nation in making non-resident investments in Indian mutual funds (MFs). As of March 31,
2019, the foreign liabilities of units in Indian MFs made by UAE stood at Rs 14,979 crore,
registering a share of 16%. The second place was acquired by the United States (US) with Rs
8,989 crore (9.6% share) followed by the United Kingdom (UK) with Rs 7,751 crore (8.3%
share). Read full details here: UAE tops in non-residents investments in Indian MFs with
the share of 16%.
An Allotment Agreement signed between Ministry of Coal and WBPDCL regarding world’s second-
largest Deocha Pachami Dewanganj-Harinsingha coal block
• In accordance with the provisions of the Coal Block Allocation Rules, 2017, made under the
Mines and Minerals (Development and Regulations) Act, 1957, the WBPDCL has been allocated
the Deocha Pachami Dewanganj-Harinsingha coal block located in West Bengal containing an
area of 12.28 sq. km. with estimated reserves of 2102 Million Tonnes for generation of power.
SEBI relaxes norms to allow smart cities raise funds through ‘Muni Bonds’
• Securities and Exchange Board of India (SEBI) eased its norms to allow smart cities raise funds
through ‘Muni Bonds‘. The entities working in areas of city planning and urban development
work, including municipalities, special purpose vehicles (SPVs) set up under the central
government’s ambitious ‘Smart Cities Mission’ can also raise funds through debt securities.
Read full details here: SEBI relaxes norms to allow smart cities raise funds through ‘Muni
Bonds’
SEBI eases buyback rules for companies with housing finance, NBFC arms
• Securities and Exchange Board of India (SEBI) eased its norms for buyback (repurchase) of
shares by listed companies, which is governed by the Buyback Regulations of SEBI &
Companies Act, especially those having subsidiaries in housing finance and Non-Banking
Financial Company (NBFC) segments. The Ministry of Corporate Affairs had permitted the
government companies carrying out non-banking finance and housing finance activities to
launch buybacks resulting in up to 6:1 debt to equity ratio post the share repurchase. Read full
details here: SEBI eases buyback rules for companies with housing finance, NBFC arms
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2019 Banking & Economy – OCTOBER

RBI in News
Overview of the 4th Bi- monthly Monetary Policy rates for 2019-20
The Reserve Bank of India (RBI) announced its 4th Bi-Monthly Monetary Policy Rates for 2019-20. The three-
day policy review meeting held on October 1, 3, 4 of 2019 consisting of 6 membersof the Monetary Policy
Committee (MPC) was headed by RBI Governor Shaktikanta Das.
i.Repo Rate was reduced by 25 basis points to 5.15% from 5.40% with immediate effect. GDP for2019-20 was
predicted at 6.1% from 6.9%.
ii. The next meeting of the MPC is scheduled to be held from December 3-5, 2019.Read full details here:
India’s CAD limited at 2% of GDP for the first quarter of 2019-20: RBI
As per the data released by the Reserve Bank of India (RBI), India's current account deficit (CAD)narrowed to $
14.3 billion or 2% of Gross Domestic Product (GDP) during the first quarter(April -June) of 2019-20 due to
lower crude oil prices, higher income from invisible businesses such asservices. The CAD had fallen from $ 15.8
billion (2.3 % of GDP) in the first quarter of 2018-19.
Bengaluru-based fintech startup Shubh loans receives RBI’s NBFC licence

Shubh Loans, a Bengaluru-based fintech sector start-up, has received a Non-Banking FinancialCompany (NBFC)
license from the Reserve Bank of India (RBI) through its subsidiary ‘Ekagrata ‘ofits parent company Datasigns
Technologies. It has raised series A2 funding of Rs 34 crore (USD4.8 million) already from Omidyar Network
India.
RBI rejects merger of Lakshmi Vilas Bank and Indiabulls housing finance
The country’s central bank, Reserve Bank of India (RBI) has denied the proposed merger ofIndiabulls Housing
Finance and Lakshmi Vilas Bank, the flagship private sector bank. The mergerwas announced by Indiabulls in
April, 2019 and sought approval from RBI on May 7,2019. Therejection comes after LVB was put into a prompt
corrective action (PCA) framework in September2019 by the RBI due to high NPAs (Non Performing Assets).
Reserve Bank gives final approval for the formation of the proposed Kerala Bank
The country’s central bank, Reserve Bank of India (RBI) has given its final approval of Keralagovernment’s
long-pending proposal of setting up its own ‘Kerala Bank’, by amalgamating 13district co-operative banks
(DCBs) with Kerala State Co-operative Bank.
Reserve Bank imposes a monetary penalty on Balancehero India & Toyota Financial
In exercise of the powers vested under Section 30 of the Payment and Settlement Systems Act,2007, Country’s
central bank, the Reserve Bank of India (RBI) has imposed a monetary penalty ofRs 12.88 lakh on Prepaid
Payment Instrument (PPI) issuer Balancehero India Private Limited fornon-compliance of regulatory
guidelines.
Toyota Financial Services India Limited (TFSIN), the Indian subsidiary of Toyota Financial Services
Corporation (TFSC) has also faced Rs 5 lakh penalty for non-compliance withdirections issued by RBI, under
the provisions of the RBI Act, 1934.
Reserve Bank to operationalise unified DoS/DoR, effective from November 1, 2019

In order to strengthen its oversight of commercial banks, urban co-operative banks (UCBs) and non-banking
financial companies (NBFCs), the country’s central bank, Reserve Bank of India (RBI) has decided to
operationalise unified Department of Supervision (DoS) & Department of Regulation (DoR) with effect from
November 1, 2019.
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RBI introduces a new reporting system for co-operative banks- CISBI

The Reserve Bank of India (RBI) came up with a new reporting system for all co-operative banks (urban, State
& district central) called Central Information System for Banking Infrastructure (CISBI) in which they will
submit information related to opening/ closing/ conversion of branches, offices, non-administratively
independent offices (extension counters, satellite offices), and customer service points (ATMs- Automated
Teller Machines) in a single proforma online. The Bank Branch Statistics Division (BBSD) in the Department of
Statistics and Information Management (DSIM), Reserve Bank of India will be the nodal unit for CISBI.
Vreedhi Financial Services receives NBFC licence from RBI

The Reserve Bank of India (RBI) gave Vreedhi Financial Services (VFS) a license to act as a non- banking finance
company (NBFC). It’s objective is to provide credit and other services to micro- enterprises operating in tier
two-three cities and small towns. It will address the gap between the addressable and viable credit in the
micro-enterprises space which is $123 billion as per the study conducted by the International Finance
Corporation (IFC).
RBI issues guidelines on 'on tap' authorisation on payment systems, stipulating minimum net worth
With an aim to encourage innovation and competition, the Reserve Bank of India (RBI) has issued guidelines on
'on tap' authorisation of payment systems. This includes minimum networth terms for various companies. RBI
has decided to introduce the ever-open facility of application for license to operate Bharat Bill Payment
Operating Unit (BBPOU), Trade Receivables Discounting System (TReDS) and White Label ATM (Automated
Teller Machine).
Farmers get lower share of consumers’ rupee for perishables: RBI's Supply chain dynamics and food
inflation in India survey 2019
As per the Reserve Bank of India’s (RBI) Supply Chain Dynamics and Food Inflation in India survey 2019
carried out across 18 states, Indian farmers get average share in the consumers’ rupee in the range between 28
% and 78 % across 14 crops, with a lower share in the case of perishables (particularly, vegetables like potato
and onion) and higher share in case of non- perishables (such as oilseeds and spices). Farmers get lower share
of consumers’ rupee for perishables:Read full details here
Credit Saison India receives RBI’s NBFC license

Credit Saison India, the domestic subsidiary of Japanese financial services leader Credit Saison,has received a
licence from the Reserve Bank of India (RBI ) to set up a non-banking financialcompany(NBFC) in Bengaluru,
Karnataka, which will begin operations by October 2019 end.
Banking Technology
APP NAME LAUNCHED BY KEY NOTES
Three new digital UCO Bank’s (United *-A new current account facility has also been launched by
product - UCash, Commercial Bank) the bank. The app comes with the integration of four
Digilocker and an app existing apps of the bank – UCO Mbanking, UCO UPI, UCO
Mpassbook and UCO Secure in a single platform.
“FD health” ICICI Bank *-Industrial Credit and Investment Corporation of India
(ICICI Bank) launched a new Fixed deposit (FD) scheme
called “FD health” which provides investors a
complimentary critical illness cover on 33 critical illnesses
for the customers who are in the age bracket of 18-
50years.
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Loans issued by Banks

Loans issued Received by Amount Key Notes
by
Paisalo digital BOB Paisalo Digital - *-The aim to necessitate the joint contribution of
(Formerly known as credit flow to empower farmers, MSME (Ministry of
S.E Investments Micro, Small and MediumEnterprises) segment and
Limited) small businesses.
*-Under the agreement, Paisalo Digital will work as
a customer outreach for BOB and will encourage
loans between Rs 10,000 to Rs 40,000 in the rural
areas with a special focus on Uttar Pradesh(UP).
U GRO Capital BOB - *-The aim to necessitate the joint contribution of
U GRO Capital credit flow with competitive rate of interest, to
(formerly known as empower SMEs (Small and medium-sized
Chokhani securities) enterprises) by using U GRO Capital’s co-lending
technology platform ‘GRO-Xstream’.
ADB Government of India $190 million *- For improving road connectivity in Rajasthan
(GoI) *-The Asian Development Bank (ADB) and the
Government of India (GoI) have signed the Tranche
2 loan agreement worth $190 million to upgrade
754 kilometers of Rajasthan state highways
andmajor district roads (MDRs) to two-lane or
intermediate-lane standards.
New 2 projects of Brazil & $ 800 million *-New Development Bank (NDB)’s Board of
Development India Directors has approved two projects namely, Fundo
Bank (NDB) Clima Brazil National Climate Fund Project ($ 500
million)& Renewable Energy Sector Development
Project ($ 300 million) with the loans totaling $ 800
million. Now the Bank's portfolio stands at 44
projects with loans aggregating to $ 12.4 billion.
Read full details here:
World Bank India $165 million *-The World Bank has signed a tripartite $ 165
(WB) million loan agreement with Government of India
(GoI), Government of Odisha, with the aim to
Support Climate Resilient Agriculture for 125,000
Small holder Farmers from 15 districts in Odisha &
diversify and improve the marketing of their
produce, for increased income by managing
128,000 ha (hectare) of agricultural land.
Agreements & Mous Signed
Banks Signed with Key Notes
Indian Army Bank of Baroda (BoB) Indian Army with the aim to provide new and
better banking experience for both serving &
retired personnel of Indian Army.
Government e- Union Bank of India *- To avail various services Union Bank of
Marketplace India (UBI), one of the largest government-
owned banks of India has signed a
memorandum of understanding (MoU) with
Government e-Marketplace (GeM) to provide
cashless, paperless and transparent payment
system to small traders.As per the MoU, Union
Bank
will provide a number of services including
transactions in the GEM Pool account,
functioning bank guarantees, and earnest
money deposit to users registered on the GEM
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portal.
Other Banking News

Interest Rates Of PPF, NSC, SSY And Other Small Savings Scheme Remain Unchanged For Q3 FY 19-20
The Union Ministry of Finance in a circular dated September 30, 2019 notified that the interestrates of post
office small savings schemes, including that of Public Provident Fund (PPF), SukanyaSamriddhi Yojana (SSY),
National Savings Certificate (NSC) and Senior Citizen Savings Schemeremain unchanged for the third quarter
(Q3) October to December of the current financial year2019-20. They will earn the same interest rate as of July
to September quarter (Q2) of FY 2019-20. The rates are revised quarterly. Increase in the budget’s fiscal deficit
(3.3% of GDP-GrossDomestic Product) and reduction in the corporate tax rates. Read full details here:
Public Sector Banks (PSBs) Will Have Uniform Timings Across All States
With all Public Sector Banks (PSBs) having banking hours at their convenience, the integratedworking hours
have been introduced by the Indian Department of Financial Services. The bankswill commence service at 10
am on the basis of the new timing starting, 1 October 2019. Lunchbreaks are allowed in the afternoon, between
2.00 and 2.30. Read full details here:
IRDAI Sets Up 12-Member Working Group To Review The Product Structure Of Title Insurance
The Insurance Regulatory and Development Authority of India (IRDAI) has constituted a 12-member working
group (WG) chaired by T.L. Alamelu to review the product structure of titleinsurance, which covers any loss
caused due to a defect in the ‘title’ of the property arising out ofthird-party challenges. WG will submit its
report in 12 weeks’ time from the date of the order.Read full details here:
Axis Bank launches digital Fixed Deposit product called ‘Express FD’
Axis Bank, the third-largest of the private-sector banks in India has launched digital fixed-deposit(FD) product
named ‘Express FD’, which can be opened in three minutes through the digital routewithout opening a savings
account by investing a minimum Rs 5,000 up to Rs 90,000, for a tenureof 6 to 12 months. The new Express FD
account offers attractive interest rates, zero issuance feesand no penalty on premature withdrawal (up to 25%
of the amount)
SBI, BoB limits cash withdrawals using micro-ATM transactions of other banks
State Bank of India (SBI) and Bank of Baroda (BoB) limited the cash withdrawals of customersusing micro-
ATMs (Automated Teller Machines) of other banks to 4 times a month. BoB permittedits customers to do 4
transactions a day while SBI limited it to 1 transaction. SBI account holderswho are not part of the
government’s direct benefit transfer (DBT) scheme are allowed to do 5transactions a month.
State Bank launches debit card with EMI facility on POS

In order to provide a superior and affordable shopping experience to its customers, Indianmultinational, public
sector bank, the State Bank of India (SBI) has launched the “Debit Card EMI facility” for its existing customers.
Under this service, the consumer can opt for an EMI (equatedmonthly installment) period ranging from 6
months to 18 months.
HP CM Jai Ram Thakur flags off 'Pragati Rath' of HDFC bank in Shimla
Himachal Pradesh (HP) Chief Minister Jai Ram Thakur flagged off a one-month program 'PragatiRath' of HDFC
(Housing Development Finance Corporation) bank in Shimla, Himachal Pradesh(HP) to make people aware of
financial and digital literacy. The Pragati Rath is undertaken by aspecial van, which is equipped with LED (light-
emitting diode) and through this, customers will bemade aware of digital banking.
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Star health insurance join hands with Paytm to sell comprehensive health insurance solutions
Indian life insurance provider, Star Health Insurance has joined hands with Paytm, an Indian e-commerce
payment system to offer comprehensive life insurance products. As per thispartnership, Paytm will distribute
Star Health Insurance products to its customers.
Government reduces interest on house building advance to 7.9% from 8.5%

To overcome the sluggishness of the real estate sector & boost housing demand, the governmenthas reduced
the interest rate on House Building Advance (HBA) from 8.5% to 7.9% for one year.As per the Union Housing
and Urban Affairs Ministry, the new interest rate was effective fromOctober 1, 2019 & will apply to all loan
amounts.
Life Insurance Council’s first Rs 100 cr ‘Sabse Pehle Life Insurance’ joint mass media campaign to begin
Life Insurance Council has decided to launch the Indian life insurance industry’s first joint massmedia campaign
with the slogan ‘Sabse Pehle Life Insurance’ (first thing is life insurance) within amonth whose total cost will be
around Rs 100 crore. For this purpose, Life Insurance Corporation(LIC) of India will provide Rs 40 crore. It will
be a joint effort of 24 Indian life insurancecompanies.
CBDT signs 300th APA by signing 3 APAs pertaining to United Kingdom

The Central Board of Direct Taxes (CBDT) signed the 300th Advance Pricing Agreement (APA) inSeptember
2019 by signing 3 APAs pertaining to United Kingdom (UK)- 2 Unilateral and 1Bilateral APA. It is considered as
a significant landmark of India’s APA Programme which is in theseventh year now. In the ongoing fiscal, the
total number of APAs entered into has gone up to 29with 27 Unilateral and 2 Bilateral APAs.
UPI transactions registers a new high of 955 million in September 2019 : NPCI
As per the recently released data by the National Payments Corporation of India (NPCI), UnifiedPayments
Interface (UPI) based transactions recorded a new high of 955.02 million duringSeptember 2019 worth Rs 1.61
trillion as against 918.35 million in August 2019 with Rs 1.54trillion worth. Such UPI based transactions
increasing 2.3 times or 135% on a year-on-year (y-o-y) basis.
Reliance Nippon Life AMC to be rebranded Nippon India Mutual Fund

The largest Japanese life insurance company, Nippon Life Insurance has renamed Reliance NipponLife Asset
Management (RNAM) as Nippon India Mutual Fund (NIMF) after acquiring 75 % stakein RNAM from Reliance
Capital for around Rs 6,000 crore.
India gets first detail of accounts of Indian citizens in Swiss banks

In the matter of getting information about black money from foreign land, India has got the firsttranche of
accounts details of Indian citizens in Swiss banks under the new regular system ofautomatic exchange of
information (AEOI). However, the exchange of information is done with thecondition of confidentiality. The
Federal Tax Administration (FTA) of Switzerland has exchangeddetails of financial accounts under 75 global
standards of AEOI to 75 countries. India is alsoincluded in them.
GST Council forms a panel of officers to suggest measures to increase GST revenue
The GST Council has formed a 12 member high-level committee of officers with 5 members fromCentre and 5
commissioners, SGST (State Goods and Service Tax) from the states of Maharashtra, Tamil Nadu, Uttar Pradesh,
West Bengal and Punjab along with Joint Secretary of GST Council andExecutive Vice President of GST Network
(GSTN) to suggest measures to increase the revenuefrom Goods and Service Tax (GST) and to administer it.
For the 1st time, Home Credit India (HCIN) join hands with KVB for joint lending
Home Credit India (HCIN), a leading consumer durable loan provider, for the first time joinedhands with one of
the oldest banks in India, Karur Vysya Bank (KVB) for offering joint lending.Under the partnership, Home
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Credit and KVB will be jointly providing the loan as a single amountto the customer. End-to-end automated
processing is the special feature of this tie-up by whichthe customer gets real-time approval and disbursement.
No charges on digital payments to large businesses with an annual turnover over Rs 50 crore
from Nov 1, 2019
The Ministry of Finance notified that banks will not levy charges or merchant discount rate (MDR)on digital
payments to the customers or merchants of the businesses with an annual turnover ofmore than Rs 50 crore
from 1 November 2019. This move is to encourage digital payments andthey will have to mandatorily offer
electronic mode of payments to their customers from the saiddate.
PayPal & Synchrony tied up to launch co-branded Venmo’s first credit card
PayPal Holdings Inc and Synchrony partnered to launch co-branded Venmo’s first credit card. Synchrony will
become the exclusive issuer of a Venmo co-branded consumer credit card in theUnited States (US). It is
expected to be launched in the second half of 2020.
Bajaj Allianz Life launches first of its kind video calling service in the insurance industry called ‘i- SERV’
Bajaj Allianz Life Insurance launched a first-of-its-kind video calling service within the lifeinsurance industry
called i-SERV to enhance the customer experience and provide resolutions tothe queries of its customers. This
service is available to customers across 125 Bajaj Allianz Lifebranches in 112 cities.
ICICI inks pact with CSC e-Governance services India to expand rural outreach
Indian multinational banking and financial services company, ICICI Bank (Industrial Credit andInvestment
Corporation of India) has tied up with Common Service Centre e-Governance ServicesIndia Limited, a Special
Purpose Vehicle (CSC SPV) to expand its reach to villages and remotetowns.
SBI & Pine labs join hands to provide monthly EMI for debit card customers
Pine Labs,an Indian merchant platform company has joined hands with Indian multinational,public sector bank,
State Bank of India (SBI) to offer EMIs (equated monthly instalments) for debitcard transactions. The tie-up
will enable SBI to widen its EMI facility at the Pine Labs Point-of-Sales (PoS) terminals at more than 40,000
merchants across over 1,500 cities.
India's revenue growth in banking sector dropped from 22% to 10.3%: McKinsey's Global
Banking Annual Review 2019
McKinsey & Company released its Global Banking Annual Review 2019. According to the report,Indian revenue
growth within India’s banking sector reduced from 22% (2002-07) to 10.3%(2010-18). Indian banks
experienced a dramatic drop in ‘return on tangible equity’ from 17.7% in2013 to 2.3% in 2018. Read full details
here:
GeM and Federal Bank tied up for payment-related services

A Memorandum of Understanding (MoU) was signed between Government e-Marketplace (GeM)and Federal
Bank to offer a number of services including transfer of funds through GeM PoolAccounts (GPA), advising of
Performance Bank Guarantees (e-PBG) and Earnest Money Deposit(EMD) to the registered users on the portal.
It will facilitate a cashless, paperless and transparentpayment system. This will help the MSMEs (Micro, Small
and Medium Enterprises) to access easy credit and do better business with the government.
Aditya Birla Finance & Indian Dental Association (IDA) join hands to provide monthly EMI for dental
patients
A leading well-diversified financial services company, Aditya Birla Finance Limited (ABFL) hassigned a
partnership agreement with Indian Dental Association (IDA) to offer EMIs (equatedmonthly installments) for
patients getting dental treatments, during 11th world dental show 2019held in Mumbai, Maharashtra.
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IRDAI sets up an 8-member panel headed by S Sadagopan to evaluate applications filed under the
Regulatory Sandbox(RS)
Inorder to promote innovative ideas to foster growth in the insurance sector, an autonomous body tasked with
regulating insurance industries in India. IRDAI (Insurance Regulatory and Development Authority of India), has
formed an 8-member panel headed by the International Institute of Information Technology (Bangalore)
Director S Sadagopan to evaluate applications filed under the Regulatory Sandbox (RS). The Committee will
have a term of one year & meet whenever required.
Srei Equipment Finance Ltd & United Bank of India partnered to provide loans to MSME and retail
sector customers
In bid to provide loans to the Micro, Small and Medium Enterprises (MSMEs) and to the retail sectors, the
United Bank of India (UBI) and Srei Equipment Finance Ltd (SEFL), the Non-Banking Financial Company(NBFC)
and wholly owned subsidiary of the Srei Infrastructure Finance Ltd have partnered together under a co-lending
agreement (Intercreditor Agreement). They both have also jointly organised “Loan Utsavs” across 20 cities in
India. Read full details here:
IOB in association with Universal Sompo launches health care plus insurance policy
A major public sector bank, Indian Overseas Bank (IOB) in association with Universal Sompo General Insurance
Company Ltd has launched co-branded health care plus insurance policy with a sum insured from Rs 50,000 -
Rs 15 lakh through online platform for IOB customers on real timebasis.
One billion transactions done through UPI in October 2019

The mission of Modi government Digital India is gaining momentum rapidly as Transactions using India’s own
domestic payments platform—Unified Payments Interface (UPI) as it has achieved the double milestone of 1
billion transactions as well as has crossed 100 million users in October, 2019. With this, UPI has become the
fastest growing system. anywhere in the world.
ECONOMY & BUSINESS NEWS

GDP & Growth Rate
Organisation Rate Key Notes
World Trade Organisation FY 2020 2.7% *- Report reduced the global trade growth forecast
(Global trade growth to 1.2% for 2019 from 2.6% growth forecast made in April
forecast) 2019 due to trade tensions and sluggish global economy.
*- The global trade growth forecast for 2020 was reduced
FY 2019 1.2%
to 2.7% from 3%.
S&P Global Ratings FY 2020-2021 7% *- Standard & Poor (S&P) Global ratings has reduced
(India’s growth) India’s growth to 6.3% from its previous estimation of
7.1% for 2019-2020
FY 2019-2020 6.3% *- The reduced growth projection is mainly due to decline
in private consumption growth.
International rating FY 2020 5.8% *- International rating agency Moody’s has reduced India’s
agency Moody’s gross Domestic Product(GDP) growth forecast to 5.8% for
FY20 (Fiscal Year20) from its previous estimate of 6.2%.
*-This downgrade in GDP was due to deceleration to an
FY 2019 6.2% investment-led slowdown which has broadened into
consumption, driven by financial stress among rural
households and weak job creation.
India Ratings and FY 2020 6.1% *- India Ratings and Research(Ind-Ra) has reduced India’s
Research(Ind-Ra) Gross Domestic Product (GDP) for FY20 (Fiscal Year 20) to
6.1% from its previous estimate of 6.7%.
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FY 2019 6.7% *-This downgrade in GDP was due to a

slowdown in rural and urban consumption demand
growth.
World Bank in its report, FY 2019 6% *-India's growth forecast to 6% for 2019 (down from 7.5
“South Asia Economic %) for the second consecutive year, after a wide decline in
Focus, Fall 2019: Making the initial quarters. In 2018, India’s GDP (Gross domestic
(De)centralization product) growth stood at 6.8 %, down from 7.2 % in 2017.
Work”
International Monetary FY 2020 7% *-International Monetary Fund (IMF) downgraded India’s
Fund (IMF) Gross Domestic Product(GDP) growth forecast to 6.1% for
the year 2019 from its previous estimate of 7.3% as per the
FY 2019 6.1% IMF’s World Economic Outlook(WEO) report. IMF also
FY 2018 7.3% projected India’s growth forecast for 2020 at 7%.Despite
India’s GDP being lowered for 2019, it still retained its rank
as the world's fastest-growing major economy, tying with
China.
Fitch rating Further 6.7% *-American credit rating agency, Fitch Ratings has
increase downgraded India’s Gross Domestic Product (GDP)
forecast for FY20 (Fiscal Year 20) to 5.5% from its
FY21 6.2%
previous estimate of 6.6%. The GDP is expected to increase
FY20 5.5% to 6.2% FY21 and will further increase to 6.7% year after.
FY19 6.6%.
Economy News
Indonesia leads SE Asia’s $100bn internet economy: 4th e-Conomy SEA report for 2019
The 4th Edition of the report titled “e-Conomy SEA report 2019:Powering Southeast Asia's $100billion Internet
economy” was jointly released by Google, Singapore investment companyTemasek and American consultancy
Bain & Company. As per the report, Indonesia and Vietnamled the SE (SouthEast) Asia’s $100bn internet
economy becoming the fastest-growing digitaleconomies in the region. Until 2018, this report was jointly
published by Google and Temasek.Read full details here:
IRDAI sets up 9-member working group headed by TR Alamelu to review existing reinsurance norms
The Insurance Regulatory and Development Authority of India (IRDAI) has constituted 9-memberpanel headed
by TR Alamelu, member (Non- life) to have a look at the set of regulations, circularsand guidelines on
Reinsurance, Foreign Reinsurance Branches and Lloyd’s India & would suggestamendments to reinsurance,
investment, foreign reinsurance branches(FRBs) and Lloyd’s Indiaregulations in the next two months.
UNCTAD along with ESCAP released Asia-Pacific Trade and Investment Report 2019
United Nations Conference on Trade and Development (UNCTAD) along with the Economic andSocial
Commission for Asia and the Pacific’s (ESCAP) collaboration, released the Asia-PacificTrade and Investment
Report 2019 (APITR).The report is published biennially to provideinformation on the impacts of recent and
emerging developments in trade and Foreign DirectInvestment(FDI) on countries to achieve sustainable
development. The theme of APITR 2019 is“Navigating Non-Tariff Measures (NTMs) towards Sustainable
Development”.
Poverty rate halves in India after 1990s: World Bank

As per the World bank (WB), India has halved its poverty rate since the 1990s, the situation hasimproved
significantly and has achieved economic growth rate of over 7 percent in the last 15years. Along with this, there
are many challenges in the path of development journey of thecountry that it will have to improve the efficiency
of resources for this. Read full details here:
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Bangalore & Kolkata will also be named in the list of World Bank’s ease of doing business survey from
2020
According to the World Bank (WB), Kolkata and Bengaluru will be added to the list of WorldBank’s ease of
doing business survey from the year 2020.The survey so far covered only Delhi andMumbai. According to the
17th edition of World Bank’s (WB) report,“Doing Business 2020-Comparing Business Regulation in 190
Economies",released on October 23, 2019 India hasranked 63rd in the list with the score of 71.0.
Surjit Bhalla led the high-level advisory group on trade and policy suggests panel for easier entryto
foreign investors
The High-Level Advisory Group (HLAG) on trade and policy led by Surjit Bhalla, a former memberof the Prime
Minister's Economic Advisory Council (PM-EAC) submitted its report to the Ministryof Commerce and Industry.
The group suggested a simpler regulatory and tax framework foroverseas investment funds, allowing
individual investment from abroad in Indian debt and capitalmarkets, and state-specific policies to facilitate
foreign direct investment in agro-processing.
Business News
BSE ties up with FICCI to promote small enterprises
In order to promote the micro, small and medium industries (MSME) and startups, BSE (Bombay Stock
Exchange) has organized a discussion session in collaboration with FICCI (Federation ofIndian Chambers of
Commerce and Industry) in New Delhi. The purpose of this session was toidentify shortcomings in existing
policies and suggest good policies.
EESL, NIIF joins hands to install smart electricity meters in all households in India
Energy Efficiency Services Limited (EESL), a joint venture of PSUs (Public Sector Undertakings)under the Union
Ministry of Power and National Investment and Infrastructure Fund (NIIF) havejoined hands to formulate an
electricity distribution plan to install smart electricity meters in allhouseholds. The two companies have
formed a joint venture called IntelliSmart Infrastructure PvtLtd (IntelliSmart) which will execute, finance and
operate the smart meter program.
CIBIL to give real time alerts called CIBIL Alert on changes in customers’ credit profile
TransUnion Credit Information Bureau of India Limited (CIBIL), a credit information company,launched a new
feature called CIBIL Alert through which customers can get real-time notificationsabout key changes in their
CIBIL Score and Report. This new feature comes after banks havebegun to link their retail loans to credit scores
under the new external benchmarking system.
Air India becomes world's first airline to bring aircraft to runway using taxibot technology
Air India has become the first airline in the world to use taxibot on an A320 aircraft withpassengers onboard at
Indira Gandhi International Airport ,New Delhi. The taxibot is a pilot-controlled semi-robotic aircraft tractor,
bringing the aircraft from the parking bay to the runwayand vice versa. The engine of the aircraft remains shut
while using the taxibot, which saves fuel &also reduces carbon emissions.
Mastercard in collaboration with MS Dhoni launched an initiative titled “Team Cashless India”
A technology company in the global payments industry, Mastercard in collaboration with Indiancricketer
Mahendra Singh Dhoni launched a nationwide initiative titled “Team Cashless India” toboost digital payments.
The campaign encourages all Indian citizens to nominate 1 or moremerchants who currently do not accept
digital payments at their firms/stores. The nominatedmerchants will get support to install digital payments
acceptance infrastructure.
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Italy to introduce 3% web tax on digital giants from 2020

As a part of the 2020 draft budget, Italy approved to levy 3% web tax for internet transactions ondigital giants
like Facebook, Google and Amazon, including United States giants from 2020. Thisplan is expected to yield
about 600 million euros ($662 million) per annum. It is in line withproposals from the Organisation for
Economic Co-operation and Development (OECD).
RIL becomes the first Indian company to have a market cap of over Rs 9 lakh crore
Mukesh Ambani-led Reliance Industries Limited (RIL) has become the first Indian company tohave a market
capitalization (m-cap) of Rs 9,00,666 crore. RIL's stock rose 1.76% during earlytrading and reached the level of
Rs.1420.75. Earlier in August 2018, Reliance had set the record ofthe first company in the country to touch the
market capitalization level of Rs 8 lakh crore.
Government granted 'Maharatna' status to Hindustan Petroleum and Power Grid Corp
Department of Public Enterprises, under the Ministry of Heavy Industry and Public
Enterprises(MoHI&PE), granted 'Maharatna' status to state-owned Public Sector Units(PSU)
Hindustan Petroleum Corporation Ltd (HPCL) and Power Grid Corporation of India Ltd (PGCIL).
These two PSUs will now have autonomous status and the boards can now take major financial
decisions. Read full details here:
7 mining and metals companies partnered with WEF for responsible sourcing
7 mining and metals companies- Tata Steel, Antofagasta Minerals, Eurasian Resources Group Sarl,Glencore,
Klockner & Co, Minsur SA and Anglo American/De Beers (Tracr) partnered with theWorld Economic Forum
(WEF) to accelerate responsible sourcing of raw materials under the new'Mining and Metals Blockchain
Initiative'.
Rajnath Singh approved the issuance of 2 OGELs for export of defence equipment and
technologies
Union Defence Minister Shri Rajnath Singh approved the issuance of 2 Open General ExportLicences (OGELs)
that allows export of certain defence equipment and technologies to selectcountries, thus enhancing ease of
doing business. It would also help achieve the defence ministry’starget of reaching $26 billion in defence
exports by 2025. This grant of license will be consideredby Department of Defence Production (DPP) based on
case to case. The authorization under thisOGEL which is a 1 time grant, will be initially valid for a period of 2
years from the date of issue.Read full details here:
BSE - Ebix JV gets in-principle approval from IRDAI for insurance broking business
Bombay Stock Exchange (BSE) ,Asia's first stock exchange and its joint venture (JV) partner Ebix,US (United
States) based insurance exchange, has received in-principle approval from insuranceregulator IRDAI
(Insurance Regulatory and Development Authority of India) to act as a directinsurance broker under the IRDAI
(Insurers Brokers) Regulations, 2018. The JV, named as BSE-Ebix Insurance Broking Pvt Ltd.
Three Indian-origins named among top 10 in 'The Best-Performing CEOs in the World, 2019' list
by HBR, Jen-Hsun Huang tops
Three Indian-origin CEOs (chief executive officer), Shantanu Narayen (CEO of Adobe Inc), AjaypalSingh Banga
(CEO of Mastercard) and Satya Narayana Nadella (CEO of Microsoft) are among theworld's top 10 best-
performing chief executives, featured in a list of 'The Best-Performing CEOs inthe World, 2019' prepared by
Harvard Business Review (HBR). Narayen of Adobe is at 6th placein the list and Banga is at 7th position.
Microsoft's Nadella ranks 9th on the list. Jen-Hsun Huang,the CEO of the US (United States) -based technology
company Nvidia, ranked 1st on the list,which features 100 CEOs.Read full details here:
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Budget carrier IndiGo becomes the member of global airlines body IATA
Budget carrier IndiGo became a member of International Air Transport Association (IATA). In2019, Indigo
expanded its international flight operations wherein it connected India withcountries such as Turkey, Vietnam,
Myanmar and China.
Amazon, Apple & Alibaba are the most disruptive companies: KPMG Report
KPMG (Klynveld Peat Marwick Goerdeler), a global network of professional services firm,released a report
titled “Disruptive companies and business models”, in which it stated thatAmazon, Apple & Alibaba are the
most disruptive companies. More than 740 technology industrybusiness leaders were surveyed globally.
Read full details here:
Singapore-based AirCarbon Pte launches the worlds’ 1st blockchain-based carbon trading exchange
Singapore-based AirCarbon Pte launched the world’s first blockchain-based carbon tradingexchange. It will
permit airlines and other corporate buyers to buy and sell tokens backed bycarbon offset credits approved by
the International Civil Aviation Organization (ICAO).
2019 Banking & Economy – NOVEMBER

RBI-in News
RBI issues new rules for the pay scale of senior officials of private, foreign banks
• Reserve Bank of India (RBI) has released new rules relating to the pay scales of full-time directors, Chief
Executive Officers (CEOs) and Material Risk Takers and Control Function staff of foreign, private, small
finance, payment banks and local area banks. These new guidelines will come into effect from
April,2020. If the non-payment is up to 200 % of the fixed salary, then at least 50 % of it should be paid
in other than cash mode. If non-cash pay exceeds 200 %, then 67 %of it should be paid in non-cash
ways. Read full details here: RBI issues new rules for the pay scale of senior officials of private,
foreign banks
RBI tightens liquidity management framework for NBFCs

• In order to strengthen the asset-liability management following the liquidity crisis faced by non-
banking financial companies (NBFCs) in the past year, India’s central banking institution the Reserve
Bank of India (RBI) has tightened the liquidity management framework for these firms, which seeks to
bring in a liquidity coverage ratio (LCR) of 100 % for them in a phased manner by December 2024.
RBI committee headed by Tapan Ray recommends tighter norms for Core Investment Companies
• The committee appointed by the Reserve Bank of India (RBI) on the supervisory framework for Core
Investment Companies (CICs) has recommended to tighten the corporate governance norms in the CIC.
The committee has suggested that entities should have only 2-tier structure/layers and also
recommended to strengthen the board structures with at least 50% of independent directors.
Reserve Bank raises income & lending limit for Micro Finance Institutions (MFIs)
• India’s central banking institution, the Reserve Bank of India (RBI) has raised the household income
eligibility limit for eligible borrowers from NBFC –MFIs (Non-Banking Financial Companies- Micro
finance Institutions) to Rs 1.25 lakh from the existing Rs 1 lakh in rural areas and from Rs 1.6 lakh to Rs
2 lakh in urban /semi-urban areas. Read full details here: Reserve Bank raises income & lending
limit for Micro Finance Institutions (MFIs)
Banks cannot charge on NEFT transactions from January 2020: RBI

• As per the report titled “Furthering Digital Payments” released by the Reserve Bank of India (RBI),
Banks will not be able to charge any fee for online National Electronic Fund Transfer (NEFT)
transactions done by the savings bank account customers from January 2020. Read full details here:
Banks cannot charge on NEFT transactions from January 2020: RBI
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Reserve Bank withdraws some exemptions granted to HFCs

• India’s central bank, the Reserve of India (RBI) has come up with a master direction & decided to
withdraw some exemptions from the provisions of Chapter IIIB of Reserve Bank of India Act, 1934
applicable to Housing Finance Companies (HFCs) in terms of complying with regulations such as
provisions and formation of reserve fund. It also decided to make provisions of Chapter IIIB except for
Section 45-IA of RBI Act, 1934.This direction will put regulations of HFC's on a par with those of non-
banking financial companies (NBFCs). Read full details here: Reserve Bank withdraws some
exemptions granted to HFCs
RBI dissolves the board of troubled mortgage lender DHFL

• In exercise of the powers conferred under Section 45-IE (I) of the Reserve Bank of India Act, 1934,
India’s central bank, the Reserve Bank of India (RBI) has superseded the board of deposit-taking
housing finance company- Dewan Housing Finance Limited (DHFL), which is struggling with difficulties
due to administrative concerns and default of several loans. Along with this, RBI has appointed R
Subramaniakumar, former managing director (MD) & chief executive of Indian Overseas Bank (IOB), as
the administrator of DHFL under Section 45-IE (2) of the Act.
RBI disclosed major wilful defaulter details under RTI act 2005
• The Reserve Bank of India (RBI) has disclosed list of 30 major wilful defaulters of India. The list was
disclosed by RBI in response to the Right to Information (RTI) application of the RTI act 2005, filed by
the Indian news website ‘The Wire’ in May 2019. These 30 companies added up to over Rs 50,000
crores of total outstanding advances (amounts drawn down under the loan but not repaid). It is also to
be noted that the report has been released 4 years after it was directed by the Supreme Court (SC). Read
full details here: RBI disclosed major wilful defaulter details under RTI act 2005
RBI constitutes three-member advisory committee for DHFL

• In exercise of powers conferred under section 45 IE 5(a) of the RBI Act 1934, India central bank, the
Reserve Bank of India(RBI) has set up a 3-member committee consisting of IDFC First Bank non-
executive chairman Rajiv Lall, ICICI Prudential Life Insurance chief executive NS Kannan and the mutual
funds body AMFI (Association of Mutual Funds in India) chief executive NS Venkatesh, before formally
sending the case of the troubled deposit-taking housing finance company- Dewan Housing Finance
Limited (DHFL) for bankruptcy proceedings. This committee will serve as advisor to the DHFL
administrator.
RBI expands SNRR account to popularize domestic rupee abroad

• India’s Central Bank, the Reserve Bank of India (RBI) took steps to expand the scope of Special Non-
Resident Rupee Accounts (SNRR) and popularize the domestic currency abroad by allowing overseas
Indians to open such accounts for rupee denominated external commercial borrowings (ECBs), taking
trade credits and trade (Export/ Import) Invoicing in India, and business-related transactions outside
the International Financial Service Centre (IFC), all in rupees.
RBI revises framework on SAARC currency swap arrangement

• Country's apex bank Reserve Bank of India (RBI) has revised the SAARC (South Asian Association for
Regional Cooperation) currency swap arrangement framework for a period of November 14, 2019, to
November 13, 2022. The revision has been made for financial stability and economic cooperation
within the SAARC region. As per the new framework, RBI continues to offer a swap arrangement within
the overall corpus of USD 2 billion.
Banking Technology
Farmitra Bajaj Allianz General Insurance For The Ease Of Farmers.
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Loans issued by Banks

Loans issued by Received by Amount Key Notes
Asian Development Bank Tamil Nadu(TN) $451 million(mn) (about To strengthen power
(ADB) Rs 3,200 crore) connectivity between the
southern and northern
parts of the Chennai–
Kanyakumari Industrial
Corridor in TN, which
covers 23 of the state's 32
districts and 70 % of the
state population.
Export-Import Republic of Ghana $30 million (about Rs 210 For financing
(Exim)Bank crore) rehabilitation and up-
gradation of Potable
Water System in Yendi,
Ghana.
Asian Development Bank Karnataka Integrated and $ 91 million The fund will also be used
(ADB) Sustainable Water to prepare the river basin
Resources Management management plan of the
Investment Program Krishna River that would
(IWRM) help in using irrigation
water effectively and it
would also help in
sustaining the water
security of the state of
Karnataka.
Asian Infrastructure Mumbai based Tata $75-million loan To help mobilize private
Investment Bank (AIIB) Cleantech Capital Limited capital into renewable
(TLLC) energy, power
transmission & water
infrastructure.The bank
also extended the loans
worth over $2.2 billion
for funding power
transmission and
distribution projects in
Assam, metro rail
projects in Chennai,
Mumbai & rural water
supply system in
Karnataka.
Asian Development Bank $150 million (about Rs West Bengal To boost capital
(ADB) 1,065 crore) investment and
infrastructure in the
state. The board of ADB
approved a loan of $300
million (about Rs 2,130
crore) to continue a
comprehensive series of
fiscal reforms.
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Agreements & MoU’s Signed

Banks Signed with Key Notes
Indian Bank and Canara Bank Government e-Marketplace (GeM) To provide a paperless, cashless, and
transparent payment system on its
portal.
Allahabad Bank MSTC Limited (formerly known as For the process of developing an e-
Metal Scrap Trade Corporation Auction platform aimed at selling
Limited) non-performing assets (NPAs). The
platform will be directly linked
with the Indian Banking
Association's (IBA) portal for sale
NPAs through the SARFAESI
(Securitisation and Reconstruction
of Financial Assets and
Enforcement of Securities Interest)
Act,2002.
Indian Bank Muthoot Microfinance Ltd To jointly lend to the MSME (micro,
small and medium enterprises)
borrowers.
Central Bank of India Government e-Marketplace (GeM) To provide various payments and
various banking services on its
portal.
Fino Payments Bank ICICI (Industrial Credit and To offer several sachet based
Investment Corporation of India) insurance products to its
Lombard customers. Some of the offerings
include Hospicash which provides
customers the solution to cover
loss of their income. This product
will specially benefit migrant
workers,when they are
hospitalized.
State Bank of India(SBI) card Vistara To provide premium, co-branded
credit card to its customers with
the benefits like free cancellations,
lounge access, and extra frequent
flyer points. The co-branded credit
card available in 2 variants- Club
Vistara SBI Card PRIME and Club
Vistara SBI Card.
IndiaFirst Life Insurance Spice Money For distribution and marketing of
‘insurance khata’, a micro-
insurance plan aims at the informal
sector & agricultural labourers
with seasonal incomes. Under this
partnership, Spice Money will work
for IndiaFirst Life &market of
‘insurance khata’ products to its
customers base of over three lakh
in semi-urban and rural India.
State Bank of India(SBI) U GRO Capital To provide widened credit
outreach and faster disbursal.
Axis Bank and ICICI (Industrial Ashok Leyland (ALL) For vehicle loans for a period of
Credit and Investment Corporation two years. The partnership aimed
of India) Bank to provide customised financial
solution to customers across the
country with focus on semi-urban
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and rural geographies.
Other Banking News

Tripura gramin bank with the Stock holdings corporation launches e-stamp counter in Agartala
• Tripura Gramin Bank in association with the Stock Holdings Corporation of India Limited (SHCIL)
started an e-stamp counter at the bank's Abhyanagar branch in Agartala. Customers will have to pay 10
rupees for purchasing e-stamps ranging from 10 rupees to 1,000 rupees and 20 rupees for purchasing
e-stamps of more than 1,001 rupees.
Ujjivan SFB launches instant digital savings & fixed deposit account
• Finance service company, Ujjivan Small Finance Bank(SFB) has launched an instant digital savings
account (SA) along with Fixed Deposit (FD) and Privilege Savings Account to offer distinctive banking
and digital services to its customers. Instant Digital SA account has the restriction of Rs 1 lakh deposit.
Instant Fixed Deposit (FD) has interest rate ranging from 5.5% (7days to 29 days) & up to 8.3% (799
days), the customers can invest in this account up to a maximum of Rs. 1 Lakh without a Savings
Account.
IRDAI prevents Reliance health insurance from selling new insurance policy
• IRDAI (Insurance Regulatory and Development Authority of India ), an autonomous, statutory body
tasked with regulating insurance and re-insurance, has barred Anil Ambani’s company Reliance Health
Insurance Ltd (RHICL) from selling new insurance policies due its poor financial condition and only
they can provide service to old policies.
Karnataka Bank launches CASA campaign 2019

• Karnataka Bank Ltd, an 'A' Class Scheduled Commercial Bank has launched a nationwide account
mobilization campaign called “CASA (current account savings account) campaign of FY(fiscal year)
2019-2020”. The campaign will remain in force till February 29, 2020. It has been organized with the
aim to open 4.18 lakhs Current & Savings accounts by active involvement of its 8000 plus workforce in
all the 846 branches across India.
India-Russia-China to explore an alternative to SWIFT payment mechanism

• India, China and Russia have partnered together to explore an alternative to the SWIFT (Society for
Worldwide Interbank Financial Telecommunication) payment mechanism in-order to smoothen the
trade with countries that face American sanctions. The new system by the three nations, is expected to
work as a “gateway” model. The messages on payments will be transcoded in accordance with a certain
financial system.
Sundaram BNP Paribas Home Finance renamed as Sundaram Home Finance Ltd
• Sundaram BNP Paribas Home Finance which is the subsidiary of non-banking finance company
Sundaram Finance Ltd has been renamed to “Sundaram Home Finance”. The change in name was due to
the acquisition by Sundaram Finance of BNP( Banque Nationale de Paris) Paribas Personal Finance's
stake in Sundaram BNP Paribas Home Finance Ltd.
NBFCs with Rs 500 crore assets now under the purview of IBC
• In exercise of the powers conferred by section 227 of the Insolvency and Bankruptcy Code (IBC), 2016
(31 of 2016), the Ministry of corporate affairs, Government of India (GoI) in consultation with the
Reserve Bank of India (RBI) issued a notification that enumerates the category of financial services
providers (FSP) who can go for "generic framework" under IBC. Read full details here: NBFCs with Rs
500 crore assets now under the purview of IBC
SEBI tightens loan default disclosure norms for listed companies

• The Regulator for the Securities market in India, SEBI (Securities and Exchange Board of India) has
approved strict provision criteria for listed companies on debt default. As per new rules, the listed
company will have to inform SEBI within 24 hours after the completion of the 30-day period for any
loan default. This rule will come into effect from January 1, 2020.
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IBBI notifies Regulations for Insolvency Resolution and Bankruptcy Proceedings of Personal
Guarantors to Corporate Debtors
• Insolvency and Bankruptcy Board of India (IBBI) has notified Regulations for Insolvency Resolution and
Bankruptcy Proceedings of Personal Guarantors to Corporate Debtors (CDs). This has been done on the
sidelines of the notification by Central Government on proceedings of Personal Debtors to Corporate
Debtors. These provisions would be effective from December 1.Title of Regulations:
i.These regulations may be called the Insolvency and Bankruptcy Board of India (Insolvency
Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019.
ii.Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to
Corporate Debtors) Regulations, 2019 specifying the details of the bankruptcy process for personal
guarantors to CDs.Read full details here: IBBI notifies Regulations for Insolvency Resolution and
Bankruptcy Proceedings of Personal Guarantors to Corporate Debtors
PSBs recovers Rs 1,996.46 crore from account holders in FY -19 for not maintaining minimum balance
• Minister of state (MoS) for finance Anurag Singh Thakur informed that Public sector banks (PSBs)
received Rs 1,996.46 crore as penalty for not keeping minimum monthly balance in the account in
2018-19. In the financial year 2017-18 (or 2017), 18 state-owned banks received Rs 3,368.42 crore as
minimum balance penalty. At the same time, in the financial year 2016-17 (or 2016) , the public banks
recovered Rs 790.22 crore from the account holders.
Three UP regional rural banks amalgamated to form Baroda UP Bank: Finance ministry
• According to a notification issued by the finance ministry, Government of India, 3 Uttar Pradesh (UP)
regional rural banks(RRB) - Baroda Uttar Pradesh Grameen Bank, Kashi Gomti Samyut Gramin Bank
and Purvanchal Bank will be amalgamated into a single regional rural bank on April 1, 2020 which will
be called as “Baroda UP Bank”. Bank of Baroda (BoB) will sponsor new Baroda UP Bank, which will have
the headquarters Gorakhpur.
Aditya Birla Finance Ltd (ABFL)-1st company to list commercial papers (CPS) on exchanges
• Aditya Birla Finance Ltd (ABFL), the NBFC arm of Aditya Birla Capital became the first company to list
its commercial papers on the stock exchanges with value date of November 28 and maturity date on
February 7, 2020. The move followed the new framework of Bombay Stock Exchange (BSE) and
National Stock Exchange of India (NSE) for listing of commercial papers (CPs) to broaden the investors'
participation in such securities.
RBI excluded Vijaya Bank, Dena bank from 2nd schedule of RBI Act, 1934
• Reserve Bank of India (RBI) has excluded Vijaya Bank and Dena Bank from the second schedule of the
RBI Act, 1934 with effect from April 1, 2019, as they have ceased to carry on banking business. The
above mentioned public sector banks (PSBs) were merged into Bank of Baroda on April 1, 2019, hence,
they were ceased to operate as banking companies separately.
ECONOMY & BUSINESS NEWS

GDP & Growth Rate
Organisation Rate Year Key Notes
The Organisation for 6.6% 2020-24 It is lower than the
Economic Co-operation & average of 7.4% of 2013-
Development(OECD) in 17.
its report “Economic
Outlook for Southeast
Asia, China and India
2020: rethinking
education for the digital
era”.
State Bank of India (SBI)’s 5% from 6.1% Fiscal Year 2020 (FY20) This downgrade was due
report titled “EcoWrap” to global slowdown in the
index of industrial
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production (IIP).
Moody's 5.6% from 5.8% Fiscal Year 2020 (FY20) The 5.6% GDP estimate
was in 2018 of 7.4%.
2020 to 6.6% & 6.7% in
2021.
Nomura 4.9% from 5.7% Fiscal Year 2020 (FY20) The downgrade in the
forecast was due to
slowed economic growth
of 5% in the June quarter
(1st quarter) of 2019,
which is a 6-year low.
This is by far, the lowest
estimate of Nomura.
National Council of 4.9 % from 6.8 % Fiscal Year 2020 (FY20) It lowers its outlook due
Applied Economic to the slowdown in
Research (NCAER) almost all sectors & it is
primarily driven by a
simultaneous
deceleration of all the
drivers of aggregate
demand.
ICRA (originally named 4.7 % Second quarter (Q2) of FY The rating agency also
Investment Information -Fiscal Year 2020 forecasted a further
and Credit Rating Agency decline in gross value
of India Limited) added (GVA) and is
expected to be 4.5 % for
the quarter ending
September of FY20.
India Ratings and 5.6% from 6.1% FY20 GDP growth for the
Research(Ind-Ra) second quarter(Q2) to
likely be at 4.7%. Q2
denotes period from July-
September.
National Statistical Office 4.5% from 5% Second quarter (Q2: July- The reason behind this 6-
(NSO) September) year low downfall is weak
consumer demand and
private investment,
deceleration in
manufacturing output,
and subdued farm sector
activity. It is lowest since
January-March of 2012-
13, when it was at 4.3 per
cent.
Economy News
India’s unemployment rate in October 2019 climbed to a 3 year high of 8.5%: CMIE data
• According to data released by the Centre for Monitoring Indian Economy (CMIE), India's unemployment
rate in October 2019 increased to 8.5%, the highest level since August 2016, and up from 7.2% in
September 2019. The report further states that the urban unemployment rate stood at 8.9% in October
2019 while unemployment figures in rural areas reached 8.3%. Read full details here: India’s
unemployment rate in October 2019 climbed to a 3 year high of 8.5%: CMIE data
Guyana is expected to be fastest growing country in the world at 86% in 2020

• According to International Monetary Fund (IMF), Guyana’s GDP is expected to grow at 86% in 2020
after expanding 4.4% in 2019.This growth expectation had done after Exxon Mobil Corp.’s discovery of
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oil at Guyana. The Guyana’s economy will grow more than three times within five years. Guyana’ GDP is
to get fourteen times as fast as China’s GDP in 2020.
Fitch solutions raised India’s FY20 fiscal deficit forecast to 3.6% GDP from early 3.4%
• Fitch solutions has increased India’s fiscal deficit forecast to 3.6% of the Gross Domestic Product(GDP)
FY2020(Fiscal Year 2020) from its previous estimate of 3.4%. The increase in the estimate was due to
weak revenue collections, slowed economic growth and corporate tax rate cut by the govt.
Moody’s revises India’s economic outlook to “negative” from “Stable”

• American financial service company Moody’s has downgraded India’s economic outlook to “Negative”
from “Stable”. This downgrade was due to slow growth in the economy. It also predicted that the slow
growth would be prolonged and would also have debt rises.
DIN system by Central Board of Indirect Taxes came into existence

• The Documentation Identification Number (DIN) system of Central Board of Indirect Taxes and
Customs (CBIC) came into existence. This system was created to bring transparency and accountability
in indirect tax administration with the use of Information and Technology(IT). The DIN system was
created under the direction of union Finance Minister (FM) Nirmala Sitharaman.
OECD cuts global growth forecast for 2020 to 2.9 % from 3%

• According to the latest Economic Outlook 2019 released by OECD (Organisation for Economic Co-
operation and Development), World GDP(Gross domestic product) growth is expected to be at 2.9% in
2020, its lowest annual rate due to the risk posed by trade stress. This is 0.1 % lower than the earlier
estimate released in September 2019. It also forecasts global economic growth to 3.0 % for the year
2021. Read full details here: OECD cuts global growth forecast for 2020 to 2.9 % from 3%
Moody's estimates centre’s fiscal deficit for FY20 to be 3.7%

• Moody’s, American credit rating agency, has estimated the Center's fiscal deficit to be 3.7 % of the gross
domestic product (GDP) in 2019-20, which will be slightly wider than the 3.4 % posted in FY (fiscal
year) 2019. For all the state governments, the fiscal deficit estimated to be around 3 %.
Fiscal deficit for April-Oct hit at 102.4%, crosses full-year target-CGA

• According to the data released by the Controller General of Accounts (CGA), India's fiscal deficit for
April-October, 2019 hit at 102.4% of 2019-20 Budget Estimate (BE) as on October 31, 2019. The fiscal
deficit or the gap between expenditure and revenue was at Rs 7,20,445 crore. In comparison with 2018-
19 (last year), the deficit is lower, as it was at 103.9 percent of 2018-19 BE.
Business News
India gained the profit of $ 755 million due to US- China trade war -UNCTAD
• As per UNCTAD (United Nations Conference on Trade and Development), in the first half of 2019, India
has received profit amount of $755 million as an additional export, in chemicals, metals and ore to US
due to the trade diversion effects of Washington tariff between US and China.
Environment ministry approves IOCL proposal to set up 2G Ethanol plant in Panipat, Haryana
• Minister of Environment, Forest and Climate Change (MoEFCC), Prakash Javadekar has approved the Rs
766 crore worth proposal of Indian Oil Corporation Limited (IOCL) to set up 100 KLPD (Kiloliters per
day) Ligno-Cellulosic 2G Ethanol Plant, a second generation biomass based fuel in Baholi, Panipat
district of Haryana.
Reliance Industries becomes 6th largest oil company in the world, Exxon Mobil topped
• Mukesh Ambani-led Indian multinational conglomerate Reliance Industries Limited (RIL) has joined the
elite club of leading companies in the energy supermajors by becoming the 6th largest listed oil
company in the world with a market cap of $ 133.21 billion. Reliance overtook British company, BP plc,
which has the market cap of $131.53 billion. The top spot has been secured by American multinational
oil and gas corporation, Exxon Mobil followed by Netherland's Dutch Shell PLC and Chevron
Corporation of US.
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T-Hub partnered with DST & NPCI for 1st Fintech Accelerator program & txnnxt hub launch
• Telangana government initiative for startups, T-Hub has announced the launch of the 1st edition of the
Fintech Accelerator program in partnership with DST (Department of Science and Technology) and
NPCI (National Payments Corporation of India). Txnnxt hub, an innovation lab by NPCI at the premises
of T-Hub was also launched. The Txnnxt hub at T-hub will help the startups in accessing the latest
technologies in digital payments.
RIL became 1st Indian Firm to hit Rs 10 Lakh crore Market-Capitalisation

• Mukesh Ambani-led Reliance Industries Ltd (RIL) crossed Rs 10 lakh crore market capitalisation (m-
cap) thus creating a record of becoming the first Indian company to achieve this feat. Previously the oil-
to-telecom giant, RIL hit Rs 9 lakh crore mark on October 18,2019 also being the first company in India
to do so.
2019 Banking & Economy – DECEMBER

RBI IN NEWS
Overview of 5th Bi-monthly monetary policy 2019 released by RBI
The Reserve Bank of India (RBI) announced its 5th Bi-Monthly Monetary Policy Rates for 2019-20 in
Mumbai, Maharashtra. The three-day (December 3 – 5, 2019) policy review meeting by the 6 members
of Monetary Policy Committee (MPC) was headed by RBI Governor Shaktikanta Das. The next meeting
of the MPC is scheduled during February 4-6, 2020. The rates remain unchanged while GDP growth
forecast lowered to 5% from 6.1%for the current financial year –FY 20 (or 2019). Read full details here:
Overview of 5th Bi-monthly monetary policy 2019 released by RBI
RBI increases aggregate lending limits imposed on peer-to-peer (P2P) lenders to Rs 50 lakh
from 10 lakh
India’s Central Bank, the Reserve Bank of India (RBI) has taken a big step to promote the peer-2-peer
(P2P) sector by increasing the total loan limit among such lenders by five times to Rs 50 lakh. Right now
the aggregate limit is 10 lakh rupees for all borrowers and lenders on all P2P platforms.
RBI offers final guidelines for on-tap licence to small finance banks(SFB)
India’s central Bank, the Reserve Bank of India(RBI) has released the final guidelines on the facility to
apply ‘on- tap’ for licenses to Small Finance Banks (SFBs). Under the decree, the minimum paid-up
voting equity capital limit has been doubled to Rs 200 crore from Rs 100 crore. Read full details here:
RBI issues final guidelines for on-tap licence to small finance banks (SFB)
RBI tightens norms for acquisition of financial assets by ARCs from sponsors and lenders
India’s central Bank, the Reserve Bank of India (RBI) has tightened norms for Asset reconstruction
companies (ARCs) by barring them to bilaterally buy assets from banks /financial institutions (FIs)
which is its sponsor, lender or has subscribed to the fund raised by the ARC for its operations or an
entity in the group to which the ARC belongs. Read full details here: RBI tightens norms for acquisition
of financial assets by ARCs from sponsors and lenders
NEFT transaction facility to be available 24×7 for customers from December, 16, 2019: RBI
With a view to promote digital transactions, the Reserve Bank of India (RBI) has allowed the round-the-
clock (24×7) transactions facility under the National Electronic Funds Transfer (NEFT) system to
customers on all days including weekends and holidays from December 16,2019. This direction was
issued by RBI under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act,
2007 (Act 51 of 2007). Read full details here: NEFT transaction facility to be available 24×7 for
customers from December, 16, 2019: RBI
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Canada's CPPIB commits to invest up to $600 million in National Investment and Infrastructure
Fund (NIIF) of India
CPP Investment Board, officially the Canada Pension Plan Investment Board (CPPIB) has agreed to
invest up to $600 million in the National Investment and Infrastructure Fund (NIIF) of India through
the NIIF Master Fund. CPPIB’s commitment includes a $150 million in the NIIF Master Fund and co-
investment rights of up to $450 million in future opportunities to invest alongside the NIIF Master
Fund.
RBI provided intraday liquidity window to make NEFT system operational on 24x7 basis
Reserve Bank of India (RBI) has announced to provide an additional collateralized intra-day liquidity
(IDL) facility for the smooth operation of National Electronic Funds Transfer (NEFT) transactions on a
24X7 basis. This facility is called Liquidity Support (LS) and it became operational from December 16,
2019. It is a firm's ability to match its day-to-day credit requirements on a real-time basis.
NPIC sets up subsidiary to take UPI to the international level: RBI governor
According to the Reserve Bank of India (RBI) governor Shaktikanta Das, the National Payments
Corporation of India (NPCI), an umbrella organisation works under RBI for operating retail payments,
has set up a subsidiary to take the Unified Payment Interface (UPI) model to other countries. The move
comes after American multinational technology company Google had requested US (United States)
Federal Reserve to create a similar model of open-payments like UPI, where private firms are enabled
to collaborate to find unique solutions to serve users.
RBI releases annual report of ombudsman Schemes for the year 2018-19; complaints to BO up
20% in FY19
According to the annual Report of Ombudsman Schemes for 2018-19,released by Reserve Bank of
India(RBI),the volume of complaints received by its 21 Offices of Banking Ombudsman (OBOs) has
increased to 1,95,901 complaints in 2018-19 (Fiscal year-FY 19), up by 19.75% (or 32,311 complaints)
from the previous year (2017-18), that accounted 1,63,590. Read full details here: RBI releases annual
report of ombudsman Schemes for the year 2018-19; complaints to BO up 20% in FY19
In a first, RBI brings US-style 'operation twist' to reduce long-term interest rates
India’s central bank, the Reserve Bank of India (RBI) has decided to conduct simultaneous sale and
purchase of government bonds under the Open Market Operations (OMO) mechanism, a concept similar
to “Operation Twist” that was last adopted by the US (United States) Federal Reserve in 2013. So, the
RBI will buy bonds worth Rs 10,000 crore of 6.45% maturing in the year 2029 and issuing bonds worth
Rs 10,000 crore maturing in the year 2020. Read full details here: In a first, RBI brings US-style
‘operation twist’ to reduce long-term interest rates
RBI limits lending on P2P platforms at Rs 50 lakh

In a bid to protect the interest of consumers, India’s Central Bank, the Reserve Bank of India (RBI) has
set a Rs 50-lakh limit on the aggregate lending to all borrowers across all Non-Banking Financial
Company – Peer to Peer (NBFC-P2P) lending platforms at a determined time. Further, lender investing
over Rs 10 lakh across P2P platforms should get a practising chartered accountant (CA) certifying a
minimum net-worth of Rs 50 lakh. RBI also decided to remove the current requirement of escrow
accounts, operated by bank promoted trustee, for transfer of funds having to be necessarily opened
with the concerned bank. Read full details here: RBI limits lending on P2P platforms at Rs 50 lakh
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RBI releases report on ‘Trend and Progress of Banking in India 2018-19

India’s central bank, the Reserve Bank of India (RBI) has released the report on “Trend and Progress of
Banking in India 2018-19”, a publication in compliance with Section 36 (2) of the Banking Regulation
Act, 1949, records the performance of the banking sector, including co-operative banks, and non-
banking financial institutions during 2018-19 & 2019-20 till now.
 Gross NPAs of SCBs declined to 9.1 % in 2019 from 11.2 % in 2018
 Due to resolutions under the IBC (Insolvency and Bankruptcy Code, 2016), recovery of stressed
assets (NPAs + Restructured loans + Written off assets) has shown improvement during 2018-
19.
 Bank fraud rise 74% to Rs 71,543 cr in 2018-19
 Development of Green finance may face challenges such as ‘greenwashing’
 Cooperative banks’ assets nearly halve to 10.6% in FY19 from 19.4% FY 05
Read full details here: RBI releases report on ‘Trend and Progress of Banking in India 2018-19
RBI launches new PPI for digital transactions up to Rs 10,000/month

In order to boost small value digital transactions, the apex bank Reserve Bank of India (RBI), has
launched semi-closed prepaid payment instrument (PPI) for transaction of goods and services up to a
limit of Rs 10,000. This direction has made under Section 18 read with Section 10(2) of Payment and
Settlement Systems Act, 2007. The amount loaded in such PPIs shall not exceed Rs 10,000 per month
and the total amount loaded during the financial year shall not exceed Rs 1,20,000. The amount
outstanding at any point of time in such PPIs should not exceed Rs 10,000. Read full details here: RBI
launches new PPI for digital transactions up to Rs 10,000/month
RBI appointed J&K Bank and SBI as lead bankers for J&K and Ladakh respectively
Reserve Bank of India (RBI) has appointed Jammu & Kashmir Bank(J&K Bank) as the UTLBC (Union
Territory Lead Bank Convenor) of the newly formed Union Territory(UT) of Jammu & Kashmir(J&K).
Similarly, the State Bank of India (SBI) will be the lead banking convenor of the UT Ladakh. No change
in the SLBC (State Lead Bank Convenor)/ UTLBC convenorship of other states and UTs were made.
RBI releases 20th Financial Stability Report (FSR): Bank’s gross NPA ratio to be 9.9 % in
September 2020
According to the 20th issue of the Financial Stability Report (FSR) 2019 released by Reserve Bank of
India (RBI), the gross non-performing assets (GNPA) ratio of all scheduled commercial banks (SCBs)
can increase from 9.3 % in September 2019 to 9.9 % in September 2020 due to changes in
macroeconomic conditions, modest growth in new NPAs and the impact of declining credit growth rate.
The GNPA ratio of SCB’s was 9.3 % between March and September 2019. Read full details here: RBI
releases 20th Financial Stability Report (FSR): Bank’s gross NPA ratio to be 9.9 % in September
Large co-op banks to report exposures above Rs 5 cr to CRILC: RBI

In a bid to find out early recognition of financial crisis, India’s central bank, the Reserve Bank of India
(RBI) has asked all primary urban cooperative banks (UCBs) to report all exposures (including all fund-
based and non-fund-based exposure on the borrower) of Rs 5 crore and above to the Central Repository
of Information on Large Credits (CRILC), maintained by RBI These will also include special mention
accounts (SMA)- those assets/accounts that shows traits of bad asset quality in the first 90 days itself or
before it being identified as NPA(Non-Performing assets).
India’s financial system remains stable despite recession: RBI’s 20th FSR report
According to the 20th edition of the Financial Stability Report (FSR) 2019 released by Reserve Bank of
India(RBI), India’s financial system remains stable despite the recession (a period of temporary
123 | P a g e
economic decline). The demand on the domestic front has been weak in the second quarter of Fiscal
year FY 2019-20. According to the report, frauds worth Rs 1.13 lakh crore have been registered in
banks in the 1st half of the current financial year 2019-20 (H1 FY20), which is the highest amount of
bank fraud so far. It has reached record levels due to delays in fraud detection by banks. Read full
details here: India’s financial system remains stable despite recession: RBI’s 20th FSR report
Reserve Bank releases draft circular on loan exposure limits & PSL threshold for UCBs
In an effort to avoid frauds, India’s central bank, the Reserve Bank of India (RBI) has released draft
circular on limits, on exposure to single and group borrowers/parties, large exposures and revision in
priority sector lending (PSL) targets for primary (urban) co-operative banks (UCBs). RBI has decided to
restrict Primary (urban) cooperative banks (UCBs) exposure to a single borrower & a group of
connected borrowers at 10% and 25%, respectively, of their tier-I capital, which comprises
shareholders’ equity and retained earnings. Till now, the limits are 15% and 40%, respectively. UCBs
also required to have at least 50% of their portfolio should comprise advances of not more than Rs 25
lakh per borrower. RBI has also hiked the priority sector lending (PSL) target for UCBs to 75% of
adjusted net bank credit (ANBC) Read full details here: Reserve Bank releases daft circular on loan
exposure limits & PSL threshold for UCBs
BANKING TECHNOLOGY
Co-branded credit Walmart India, wholly-owned The new co-branded credit card is available
card subsidiary of Walmart Inc has exclusively for members of Best Price Modern
joined hands with HDFC Wholesale B2B (business to business) cash & carry
(Housing Development Finance Stores, owned and operated by Walmart India. In
Corporation )Bank this, the facility of free credit will be available for
up to 50 days without any interest.
My:health Woman HDFC ERGO General Insurance It is India’s third-largest non-life insurance
Suraksha policy Company provider in the private sector. A comprehensive
medical insurance scheme specially designed for
women. Women aged 18–65 years are eligible for
the policy & they offered a sum insured ranging
from Rs. 1 lakh to 1 crore.
MiCredit ZestMoney & Xiaomi ZestMoney, an AI (Artificial Intelligence) -driven
EMI (Equated Monthly Instalment) financing
platform based in Bengaluru, Karnataka, has
partnered with Chinese smartphone company,
Xiaomi, to launch new loan service app called
“MiCredit” in the Indian market. Through this,
customers can get an instant loan ranging from Rs
7,000 - Rs 1,00,000.
Co-branded credit Axis Bank and Indian Oil The card will be useful for customers preferring
cards Corporation Ltd (IOCL) cashless and hassle-free payments. The
partnership also aims to offer rewards and benefits
for its customers. Under the partnership,
customers will receive a cashback of upto Rs 250
on fuel purchases within the first 30 days of card
issuance, 20 times accelerated reward points on
fuel spends at IOCL outlets as well as the waiver of
fuel surcharge.
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KBL Xpress SB ‘A’ Class Scheduled Commercial A digitized version for opening Savings Bank (SB)
Accounts Bank, Karnataka Bank account through TAB (tablet) Banking facility on
the spot. The sales staff of Karnataka Bank will visit
the customers at their home and with the use of
the tablets to get the formalities completed within
10 minutes.
LOANS ISSUED BY BANKS

LOANS ISSUED BY RECEIVED BY AMOUNT KEY NOTES
Asian Development Government of $206 million To develop water supply, sewerage
Bank (ADB) India (GoI) infrastructure in 5 cities
(Ambur,Tiruchirappalli, Tiruppur, Madurai and
Vellore) of Tamil Nadu (TN) and also enhances
capacities of urban local bodies (ULBs) for
improved service delivery.
India’s Exim bank Bangladesh $500 For defence-related procurement in the
(Export-Import million (Rs neighbouring country. The Exim bank
Bank of India) 3561 entered into an agreement with
crore) Bangladesh's Armed Forces Division (AFD)
in this regard on April 11, 2019. The
agreement became effective from
November 7, 2019 and the utilisation
period of the loan is 10 years from the date
of signing the agreement.
KfW (formerly KfW- State Bank of $277 million A German state-owned development bank for
Kreditanstalt für India (SBI) (about Rs establishing an energy-efficient housing
Wiederaufbau 1,958 crore) programme in India. SBI Capital Markets Ltd.,
Bankengruppe) a wholly owned investment banking subsidiary
of State Bank of India will arrange the loan and
grant facilities under this programme. Click
here
Asian Development Energy Efficiency $250 million In a bid to support agricultural, residential and
Bank (ADB) Services Limited (about Rs institutional consumers, Asian Development
(EESL) 1,775 crore) Bank (ADB), an international development
finance institution & and the Government of
India (GoI), loan to Energy Efficiency Services
Limited (EESL) to expand energy efficiency
investments in India by way of identifying new
business opportunities, a gender action plan,
mobilising private sector participation in
energy efficiency services,etc.
Asian Development Madhya $490 million For upgrade about 1,600 km of Madhya
Bank (ADB) Pradesh(MP) Pradesh(MP) state highways (750km) & major
district roads- MDRs (850km) from single-lane
to two-lane widths in the state. This public-
private partnership (PPP) project through the
hybrid-annuity model (HAM), got an additional
$286 million investment that will be mobilized
125 | P a g e
by the state.
Click here
Asian Infrastructure India $210 million A multilateral financial institution, has decided
Investment Bank to grant a loan worth of $210 million for
(AIIB) irrigation ($145-mn) & solar energy projects
($65-mn) in India. Under this loan, $145-
million will be given to improve irrigation
service delivery and strengthen flood risk
management in West Bengal (WB). While,
remaining $65-million has given for 250-
megawatt (MW) solar power project in
Jodhpur, Rajasthan; promoted by Hero Future
Energies. Click here
AGREEMENTS & MoUs SIGNED

BANKS SIGNED WITH KEY NOTES
Karnataka Vikas Canara HSBC OBC ( Oriental For bancassurance (selling of life assurance and
Grameen Bank Bank of Commerce) Life other insurance products and services by bank). As
(KVGB) Insurance Company Ltd per the pact, KVGB will market wide range
insurance products of the Canara HSBC through its
636 branches in 9 districts of Karnataka.
Investor Education & Bank of Baroda (BoB) (IEPFA) works under the Ministry of Corporate
Protection Fund Affairs. To spread customer awareness and
Authority (IEPFA) investor education and reaching out to investors
and stakeholders. As per the agreement, 9,456 BoB
branches will exhibit IEPFA posters on investor
protection & 3,115 ATMs (Automated Teller
Machine) and Cash Recyclers supported by self-
service channels will feature digital banners on
IEPFA.
Bank of Baroda (BoB) Gujarat government In order to facilitate the flow of credit in the Micro,
Small and Medium Enterprises (MSMEs) sector. As
per the agreement, the credit will be provided to the
MSME for greenfield projects, startups, women
entrepreneurs and entrepreneurs from backward
areas under the Gujarat Single Window Clearance
Act 2017 & Ordinance Number 1 of 2019 dated
October 24, 2019.
Karnataka Vikas Social enterprise Selco Karnataka Vikas Grameen Bank (KVGB) which
Grameen Bank Solar Light Pvt Ltd is a regional rural bank (RRB). MoUs for solar
(KVGB) lighting and livelihood solutions. Under this
MoU, finance livelihood solutions that are
backed by solar power will be provided by the
bank. This is done to improve the quality of life
of micro and small entrepreneurs, economically
weaker sections (EWS), sustainable agriculture
and for women’s empowerment.
126 | P a g e
OTHER BANKING & FINANCE NEWS

78% account holders withdraw all their money from PMC Bank: Nirmala Sitharaman
As per the Union Finance Minister (FM) Nirmala Sitharaman, nearly 78 % depositors of the scam-hit
Punjab and Maharashtra Co-operative (PMC) Bank have been allowed to withdraw their entire deposits
even though the ceiling of Rs 50,000 on withdrawal continues. Also account holders are allowed to
withdraw up to Rs 1 lakh in case of medical emergency, marriage and other serious situations.
Aditya Birla health insurance teams up with MobiKwik to offer affordable health insurance
plans
Aditya Birla Health Insurance Co. Limited (ABHICL), a subsidiary of Aditya Birla Capital Ltd has
partnered with MobiKwik, a fin-tech platform to offer affordable health insurance plans to mobile-first
middle-class Indian consumers who have previously never had access to insurance solutions. They have
jointly launched the first product called “Cancer Protect Cover” Plan as part of their contract.
BlackBuck joins hands with IDFC &Yes Bank to provide free FASTags to truckers
BlackBuck, India's largest online trucking platform has partnered with leading private sector lenders
IDFC (Infrastructure Development Finance Company) Bank and Yes Bank to offer FASTags to truck fleet
owners free of cost. With this partnership, truck owners can order FASTags on Blackbuck's Boss app. It
will be given free at their doorstep till 31st December 2019.
India’s forex reserves crossed $450 billion for the first time
Indian foreign exchange (forex) reserve for the first time crossed $450-billion mark. This was mainly
due to strong inflows which enabled the central bank to buy dollars from the market. The forex reserves
were at $451.7billion on December 3, 2019, which is an increase of $38.8 billion compared to that of
March 2019.
Mastercard joins hands with Thailand Tourism Authority (TAT) to tap more tourists from
India
Mastercard, an American multinational financial services corporation has partnered with Thailand
Tourism Authority (TAT) to tap more tourists from India & enable digital payments for a more
experiential visit for them. Bangkok (Thailand’s capital) has ranked No.1 in Mastercard’s Global
Destination Cities Index 2019 as the world’s best travel destination.
Vakrangee join hands with Union Bank of India(UBI) for 20,000 Banking BC Points
Vakrangee Finserve Limited, a wholly-owned subsidiary of Vakrangee Limited (VL) has partnered with
Union Bank of India (UBI), one of the largest government-owned banks of India for 20,000 Banking
Business Correspondent (BC) points for Nextgen Vakrangee Kendra.
Mastercard joins hands with Federal bank for additional digital security called ‘Mastercard
Identity Check'
Mastercard,an American multinational financial services corporation has tied-up with Federal Bank, a
Private Sector, scheduled commercial bank, to provide an additional layer of security function called
‘Mastercard Identity Check’ for digital transactions done by bank's cardholders. The new layer of
security will be provided by using latest authentication standards of EMV (Europay, MasterCard, Visa)
3-D Secure.
BRICS’ NDB commits $100 million to India's NIIF

New Development Bank (NDB), formerly referred to as the BRICS Development Bank, has agreed to
provide $100 million to India’s National Investment and Infrastructure Fund’s (NIIF) Fund of
127 | P a g e
Funds(FoF), that aims to raise about $1 billion to invest in up to 10 private equity funds managed by
fund managers in India. ADB (Asian Development Bank) already in August 2019, granted Rs 667 crore
(close to $100 million) to NIIF-FoF. Asian Infrastructure Investment Bank (AIIB) in June 2018, had
approved an equity investment of $100 million as part of FoF’s initial closing, committing a further
investment of $100 million as part of phase II for the final closing.
HDFC Bank becomes 3rd Indian company to cross m-cap of $ 100 billion
India's leading private sector bank, HDFC (Housing Development Finance Corporation) Bank Ltd, has
become the 3rd company to cross market capitalization (m-cap) of $ 100 billion (over Rs 7 lakh crore)
after Reliance Industries Ltd- RIL ($140.74 billion) & Tata Consultancy Services - TCS ($114.60 billion).
However, it closed below the $100 billion mark at roughly $99.5 billion. With this increase in m-cap,
HDFC Bank is now ranked 110th on the list of most valuable companies in the world.
Kotak Mahindra Bank & Pine Labs tie up to facilitate EMIs on debit cards
Kotak Mahindra Bank has tied up with Pine Labs to enable debit card facility for their debit cardholders
across point-of-sale terminals by Pine Labs. Its aim is to provide affordable, flexible and easy EMI
options with a minimum purchase of Rs 8,000 and repay over 3 months to 12 months. With this,
bank’s customers can break their high-value purchases into affordable installments at no extra cost.
Federal Bank, Magicbricks tie up for disposal of repossessed properties

Federal Bank has joined hands with online real estate platform Magicbricks for listing and e-auctioning
of immovable properties repossessed by bank through recovery proceedings. The reason behind this
partnership is the speedy recovery of impaired assets of the bank as the portal offered by Magicbricks
provides a wide and direct reach among prospective buyers across various locations. It also helps the
customers in getting the best rate in the market for their properties.
NPCI newly offers recharge option for FASTag through BHIM UPI
National Payments Corporation of India (NPCI) has announced a new recharge option for National
Electronic Toll Collection (NETC) FASTags through BHIM UPI (Bharat Interface for Money- Unified
Payments Interface). Accordingly, any BHIM UPI enabled mobile app users cane recharge their FASTags
which would ease the traffic at toll plazas. FASTags which are based on RFID (Radio-Frequency
Identification) technology has been made mandatory on national highways(NH) across the country
from December 15, 2019, onwards.
Ashok Leyland ink pact with Yes bank for commercial vehicle financing
Ashok Leyland (ALL), an Indian automobile company has entered into the memorandum of
understanding (MoU) with Yes Bank, an Indian private sector bank (PVB) for vehicle loans for a period
of 2 years. Earlier in November 2019, ALL has also signed a 2 year MoU with ICICI (Industrial Credit
and Investment Corporation of India) Bank & Axis bank for vehicle financing.
Digit launched health insurance product named Digit Health Care Plus
Digit Insurance has launched Digit Health Care Plus, a retail health insurance product, that has been
customized for different age groups and their health needs, along with the help & approval of an Ex-
AIIMS (All India Institute of Medical Sciences) Director. Digit even collaborated with 15-year old kids to
simplify the health insurance documents.
SBI to bring new OTP-based cash withdrawal system for above Rs 10,000 from January 1, 2020
State Bank of India (SBI), an Indian multinational, public sector bank, has taken a big step to curb bank
fraud and provide secure banking to its customers by launching new OTP (one-time-password ) based
128 | P a g e
ATM (Automated Teller Machine) withdrawal of above Rs 10,000 during 8 PM to 8 AM. The new
system will be implemented across the country from 1 January 2020.
HDFC Life joins hand with Paytm to expand its distribution

HDFC Life Insurance, a long-term life insurance provider has entered into the partnership with Paytm,
an Indian e-commerce payment system to allow the latter's 450 million registered customers to
purchase insurance products from HDFC Life. HDFC Life had already tied up with India’s 2nd largest
telecom company – Airtel to issue product portfolio within seconds.
GDP & GROWTH RATE

ORGANIZATION YEAR RATE
CRISIL (Formerly Credit FY20(or 2019 ) India’s gross domestic product (GDP) growth rate to
Rating Information Services of 5.1 %
India Limited) Key Points:
5.1 % From an earlier estimate of 6.3 %. Growth in the
second half of 2019-20 will go up to 5.5%, up from
4.75% in the first half.
Asian Development Bank FY 20(or 2019) India's GDP growth forecast to 5.1%
(ADB) Key Points:
Consumption has been affected due to slowing
employment growth and delayed harvesting. In
September 2019, ADB had projected India's economic
growth rate to be 6.5 percent for 2019-20 and 7.2 %
for FY 2020-21.
Moody's Investors Service 2019 India’s GDP growth forecast for 2019 to 5.6.
Key Points:
which is less than 7.4 % in 2018. It cuts the forecast
due to the slow growth rate of employment is
impacting consumption. It also expects that the growth
rate will improve after that and it can be 6.6 % and 6.7
% in 2020 and 2021 respectively.
American business, financial FY20 (Fiscal Year GDP (Gross Domestic Product) growth projection to
company & rating agency 2019-20) 4.9% from its earlier estimate of 5.8%. The revision in
Moody’s the growth projection was due to weak household
consumption.
Fitch Ratings Inc., an American FY20 (or 2019) Has lowered to 4.6 % from the earlier estimate of
credit rating agency 5.6%.Fitch made this deduction due to declining trade
&consumer confidence. Also, it has placed India's
Long-Term Foreign-Currency Issuer Default Rating
(IDR) at 'BBB-' with a Stable Outlook. With the help of
easy monetary and fiscal policy and structural
measures, India's growth rate will be 5.6 % in FY 2020-
21 and 6.5 % in FY2021-22.
The International Monetary FY20 On India has retained India’s economic growth forecast
Fund (IMF) in its Article IV at 6.1% for FY20. The report was released in
consultation report Washington, United States (US). The forecast is much
higher than by most agencies. For example, the
Reserve Bank of India’s (RBI) latest projection pegged
the growth at 5%, Standard & Poor’s at 5.1%, Moody’s
129 | P a g e
at 4.9% and Fitch’ at 4.6% for the current financial

year.
ECONOMY NEWS
Dupont partners with Central govt initiative-"AGNIi" to support India’s innovation ecosystem
DuPont de Nemours,Inc (commonly known as DuPont), an American company with technology-based
materials, ingredients and solutions has partnered with AGNIi (Accelerated Growth of New India’s
Innovations), an initiative of the office of the Principal Scientific Advisor to the Government of
India(GoI), executed by Invest India (the national investment promotion and facilitation agency of
India), to support the development of sustainable innovations and technologies across industries. Read
full details here: Dupont partners with Central govt initiative-“AGNIi” to support India’s innovation
ecosystem
Finance Ministry has set Rs 1.1 lakh crore monthly GST collection target
Ministry of Finance (MoF) has set Rs 1.1 trillion monthly GST (Goods and Services Tax) target for the
remaining four months of the fiscal year (FY 2019-20) and asked tax officials to step up efforts to
achieve the goal. The announcement was made in a meeting amid government may fall short of tax
collection target in a slowing economy. For 2019-20, the Union government is targeting Rs 6.63 trillion
from its share of GST revenues. Read full details here: Finance Ministry has set Rs 1.1 lakh crore
monthly GST collection target
CPPIB to invest $225 million in India resurgence fund paltform

CPPIB (Canada Pension Plan Investment Board ) Credit Investments Inc, a wholly owned subsidiary of
CPPIB, has agreed to invest US$225 million in the India Resurgence Fund platform (IndiaRF), a
distressed assets buyout platform set up by Piramal Enterprises Ltd and Bain Capital Credit. In
2018,World Bank (WB) arm International Finance Corporation (IFC) had also committed to invest
US$100 million in the fund.
SEBI reshuffles 8-member Abraham koshy committee on Investor Protection & Education Fund
Securities and Exchange Board of India (SEBI),a Regulator for the Securities market in India owned by
Government, has made extensive changes to the 8-member advisory committee on Investor Protection
and Education Fund (IPEF), advising on issues related to investor education and protection activities.
The chairman of this committee is former Professor, Abraham Koshy of IIM(Indian Institutes of
Management) Ahmedabad, Gujarat. Now,the panel additionally includes 3 Sebi officers -government
administrators Nagendraa Parakh and V S Sundaresan & chief general manager N Hariharan. Read full
details here: SEBI reshuffles 8-member Abraham koshy committee on Investor Protection & Education
Fund
28 members MOSPI constituted economic statistics committee headed by Pronab Sen

Ministry of Statistics and Programme Implementation(MOSPI) has set up a standing committee on
economic statistics (SCES) in order to develop methodologies in conducting surveys on the industry,
services sector and employment in place of multiple panels on these issues. The committee which
consists of 28 members will be headed by India’s first chief statistician Pronab Sen. The first meeting of
the SCES is scheduled on January 6, 2020.
BUSINESS NEWS
Stock exchange major NSE launches interest rate options on 10-year government bonds
With the aim to provide institutional investors ability to manage risk through a non-linear product,
National Stock Exchange (NSE), the leading stock exchange of India has launched interest rate options
(financial derivative contracts whose values are based on an underlying interest rate) on 10-year
130 | P a g e
Government securities (G-secs). These interest rate options are based on 10-year government bonds
maturing in the year 2029 with coupon rate of 7.26% and 6.45 %.
National Small Industries Corporation (NSIC) inks MoU with Suadi ARAMCO for development in
oil & gas sectors
National Small Industries Corporation Limited(NSIC ), a Mini Ratna PSU (public sector undertaking )
works under the Ministry of MSME, has signed a memorandum of understanding (MoU) with Saudi
Aramco (Asia), a Saudi Arabian national petroleum and natural gas company for the development of
Micro, Small and Medium Enterprises (MSME) sector in India in Oil & Gas Sector. Read full details here:
National Small Industries Corporation (NSIC) inks MoU with Suadi ARAMCO for development in oil &
gas sectors https://affairscloud.com/national-small-industries-corporation-nsic-inks-mou-with-suadi-
aramco-for-development-in-oil-gas-sectors/
IRDAI frames 10-member group headed by T. L. Alamelu to study loss prevention

IRDAI (Insurance Regulatory and Development Authority of India), an autonomous body constituted to
regulate and develop insurance business in India, has constituted a 10-member working group (WG)
headed by IRDAI member (non-life) T. L. Alamelu to make recommendations for loss prevention &
minimization in the general insurance industry. It should submit its report within 12 weeks.
US replaced Kuwait as India's 6th biggest oil supplier; Iraq remains on top
According to the data furnished by the oil ministry of India to parliamentary committee, the United
States(US) has surpassed Kuwait to become India's 6th largest oil supplier. It supplied 70% more crude
to India, the world's third largest energy consumer during April-September 2019. While US stands 6th,
Iraq continues to be the top crude oil supplier to India. Read full details here: US replaced Kuwait as
India's 6th biggest oil supplier; Iraq remains on top
Edelweiss AMC launches India’s 1st corporate bond called ‘Bharat Bond ETF’
Edelweiss Asset Management Company (AMC), a subsidiary of Edelweiss Capital Limited (ECL) has
launched India’s 1st Corporate Bond ETF (exchange trade fund) called the Bharat Bond ETF. It will
invest only in AAA-rated bonds of Public Sector companies. Edelweiss AMC proposes to raise a total of
up to Rs 15,000 crore through the offer.
Bengaluru-based PhonePe clocks 5 Bn transactions

PhonePe Private Limited (PhonePe) ,an Indian e-commerce payment system and digital wallet
company, has crossed 5 billion transactions on its app. In November 2018, PhonePe had touched the
milestone of a billion transactions and achieved 5 times more unprecedented success in a year. It has
over 175 million registered users in India.
SEBI inks pact with Kazakhstan-based AFSA for mutual, technical cooperation
Securities and Exchange Board of India (SEBI), the Regulator for the Securities market in India, has
entered into a memorandum of understanding (MoU) with the Astana Financial Services Authority
(AFSA), a financial hub in Kazakhstan, for mutual cooperation and technical assistance in areas such as
securities and to improve the efficiency of monitoring operations. The MoU was signed by SEBI
Chairman- Ajay Tyagi and the acting chief executive officer (CEO) of AFSA -Mukhtar Bubeyev.
131 | P a g e
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