Monthly GK Banking Capsule 2019

June 2019

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MONTHLY GENERAL KNOWLEDGE BANKING &
FINANCE CAPSULE
(June 2019)
Banking News
RBI allows banks to use Aadhaar for KYC
• The Reserve Bank of India has said that banks can now use
Aadhaar for KYC verification if the customer gives consent.
• RBI also updated Aadhaar to its list of documents eligible
for identification of individuals.
• In 2018, the Supreme Court prohibited the use of Aadhaar
for KYC due to privacy concerns.
Reserve Bank of India
• 25th Governor: Shaktikant Das
• Headquarters: Mumbai
• Founded: 1 April 1935, Kolkata.
Bank Fraud touched Rs 71,500 Crore in 2018-19
• The Reserve Bank of India has revealed that over 6,800
cases of bank fraud involving an unprecedented ₹71,500
crore were reported in 2018-19.
• This is 74% higher than the amount involved in 5,916 such
cases reported in 2017-18.
• The bank frauds were categorised and analysed for 13
sectors, including gem and jewellery.
IOB launches ‘Bank on Wheels’ facility
• Indian Overseas Bank (IOB) launched ‘Bank on Wheels’
facility in 14 of its lead districts in Tamil Nadu and Kerala.
• The mobile van facility will enable the public, especially
senior citizens, conveniently get door-step banking facility
available at identified locations of the lead districts.
• A dedicated banking correspondent will accompany the
vehicle with a micro-ATM inside the van.
Indian Overseas Bank (IOB)
• CEO: R. Subramaniakumar
• Headquarters: Chennai
• Founded on 10th February 1937
India's 1st mutual fund side pocket launched
• Tata Mutual Fund has announced plans to introduce
segregated portfolios (side pockets) in three schemes.
• This instance is India’s first formal use of the side
pocketing provisions introduced by SEBI in December
2018.
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Monthly GK Banking Capsule 2019
June 2019
• This is the first time an AMC is actually proposing to carry
out the procedure.
RBI removes NEFT, RTGS payment charges
• RBI has removed charges for payments via NEFT and RTGS.
This means that payments via NEFT and RTGS would
become either free or charges would be low.
• RBI levies minimum charges on banks for transactions
routed through its Real Time Gross Settlement System
(RTGS) meant for large value instantaneous fund transfers
and the National Electronic Funds Transfer System for
other fund transfers.
Paytm ahead of major banks in digi transact.
• Paytm Payments Bank has received a target of 501.16
crore digital transactions for the financial year 2019- 20.
• It is higher than the targets set for major banks including
HDFC Bank, ICICI Bank, and Punjab National Bank.
• Paytm Payments Bank is only behind the State Bank of
India, which has the highest target for digital transactions.
SBI cut interest rate on CC/OD
• State Bank of India announced introduction of repo rate
linked home loans from 1 July.
• It will pass on the 25 bps repo rate cut, announced by the
Reserve Bank of India yesterday, to some cash credit
borrowers.
• The effective repo-linked lending rate (RLLR) for CC/ OD
customers is 8% now, while for savings deposits above ₹1
lakh the new rate would be 3%.
State Bank of India (SBI)
• Chairman: Rajnish Kumar
• Headquarters: Mumbai
• Founded on 1st July 1955
Kotak Mahindra penalised by RBI
• The RBI imposed a penalty of Rs. 2 crores on Kotak
Mahindra Bank for not complying with the central bank's
directions to furnish details of its promoter shareholding.
• The bank was directed by RBI to furnish information about
details of the shareholding held by its promoters.
• It also asked the bank to submit details of the proposed
course of action or strategy of the bank.

Kotak Bank
• CEO : Uday Kotak.
• Headquarters: Mumbai
Cheque books for no-frills accounts
• The RBI has allowed banks to offer cheque book facility
and other services to the no-frills account holders.
• But they could not ask such account holders to maintain
any minimum balance for such services.
• As per the norms of no-frills account, account holders are
not required to maintain minimum balance and can get
certain minimum facilities for free
RBI tightened noose around banks
• The RBI asked banks to ensure their ATMs are grouted to a
wall, pillar, or floor by September end, except those
installed in high secured premises.
• The RBI has told banks that they will have to pay penalty
for keeping ATMs dry.
• Banks can not keep ATMs out of cash for more than 3
hours, doing which will attract penalty and the penalty will
be imposed region-wise.
RBI fined HDFC bank Rs. 1 crore
• RBI fined HDFC Bank Rs 1 crore for not reporting frauds
and non-compliance with other directions.
• The fine pertains to submission of forged bill of entries
(BoEs) by certain importers to HDFC Bank for remittance of
foreign currency.
• The penalty was imposed in exercise of powers vested in
RBI under the provisions of Section 47A(1)(c) and Section
46(4)(i) of the Banking Regulation Act, 1949.
HDFC Bank
• CEO: Aditya Puri
• Headquarters: Mumbai
• Founded: August 1994
IndusInd Bank to merge with BFIL
• IndusInd Bank announced 4 July, 2019 as the effective
date of the merger with Bharat Financial Inclusion Ltd
(BFIL).
• M R Rao, current CEO of BFIL, will become the CEO of
IndusInd Financial Inclusion Ltd (IFIL).
• The Business Correspondent network of BFIL will operate
under IFIL.
Induslnd Bank
• CEO: Romesh Sobti
• Headquarters: Mumbai
• Founded: 1994
RBI fined South Indian Bank
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Monthly GK Banking Capsule 2019
June 2019
• The RBI has imposed a fine of Rs. 10 lakh on South Indian
Bank for violating norms regarding bank guarantees.
• The penalty follows references from a government
department and a private party alleging non-payment of
invoked bank guarantees by the lender.
• Examination in this regard revealed a violation of RBI
directions on 'Guarantees and Co-acceptances'.
South Indian Bank
• CEO: V. G. Mathew
• Headquarters: Thrissur
• Founded: 29th January 1929
NHB tightened norms on HFC's leverage
• The National Housing Bank (NHB) has tightened its rules
on leverage and capital adequacy ratio for housing finance
companies (HFCs).
• It now mandates HFCs to bring down their total
borrowings to not more than 12 times their net owned
funds as on 31 March 2022.
• The capital adequacy ratio for HFCs has been increased to
13% by March 2020, 14% by March 2021 and 15% by
March 2022.
Canara Bank updated rules for cash deposits
• From July 1, 2019, Canara Bank customers can deposit
cash of up to Rs 50,000 for free only thrice a month.
• From the fourth transaction or for cash deposits of over Rs
50,000, there will be a service charge of Rs 1 per thousand,
with a minimum of Rs 50 and a maximum of Rs 5,000 plus
GST.
• For current account/overdraft/open cash credit account
holders a minimum Rs. 100 will be charged.
Canara Bank
• CEO: R. A. Sankara Narayanan
• Headquarters: Bengaluru
• Founded: 1st July 1906
Indiabulls and Lakshmi V. Bank merg. approved
• Competition Commission of India (CCI) has approved the
merger of the Indiabulls Housing Finance and Lakshmi
Vilas Bank.
• Shares of Lakshmi Vilas Bank hit the upper circuit of 10%
after CCI approved its merger with Indiabulls Housing
Finance.
• The combined entity, with employee strength of 14,302,
will have a loan book size of ₹1.23 lakh crore for the first
nine-month period of 2018-19.
Lakshmi Vilas Bank
• CEO: Parthasarathi Mukherjee
• Headquarters: Chennai
• Founded: 1926
 Monthly GK Banking Capsule 2019
June 2019

Financial News
RBI proposes new liquidity norms for NBFCs
• RBI has issued draft guidelines on liquidity management
for the NBFCS and proposed a liquidity coverage ratio for
large NBFCs.
• It covers all deposit taking NBFCs and non-deposit taking
NBFCs with an asset size of ₹5,000 crore and above.
• Company fixed deposits (FDs), unlike bank FDs, don’t come
with insurance.
RBI to observe fin lit week from June 3-7
• The Reserve Bank of India will observe Financial Literacy
Week across the country from 3rd to 7th June 2019.
• The theme this year is - 'Farmers and how they benefit by
being a part of the formal banking system'.
• In a release, the apex bank said, posters and leaflets will
be used to spread awareness and spread the message of
financial literacy among the farming community.
India Per-capita income showing a rise of 10%
• In 2017-18, the monthly per-capita income had stood at
₹9,580.
• The country's per-capita income is estimated to have risen
by 10% to ₹10,534 a month during the financial year
ended March 2019.
• The gross national income (GNI) at current prices is
estimated at ₹188.17 lakh crore during 2018-19, as • Consumer Price Index (CPI) based inflation forecasted at
compared to ₹169.10 lakh crore during 2017- 18, rising by 4% for 2019-20 with a minimum and maximum range of
11.3%.
3.5 per cent and 4.1 per cent, respectively.
GDP growth slumps to 5.8% in March quarter RBI sets up task force on secondary market
• India’s GDP grew at 5.8% in the January-March 2019
• The RBI constituted a task force to suggest policy and
quarter, dragging down the full year growth to a five-year
regulatory interventions required for the development of
low of 6.8%. the secondary market in corporate loans, including loan
• The unemployment rate in the country rose to a 45-year transaction platform for stressed assets.
high of 6.1% in 2017-18
• The task force will be headed by Canara Bank Chairman T
• The data showed that 7.8% of the employable urban youth N Manoharan.
and 5.3% of employable rural youth was without jobs. • Secondary loan market in India is largely restricted to asset
Additionally 6.2% male and 5.7% of females across the reconstruction companies.
country were jobless.
RBI sets up committee for housing finance
FICCI survey predicted GDP growth of India at 7.1% for FY20
• The Reserve Bank of India (RBI) has set up a committee to
• FICCI's (Federation of Indian Chambers of Commerce and
look into the current state of mortgage securitisation in
Industry) economic outlook survey projected India's the country.
median GDP (Gross Domestic Product) 7.1% for FY20 and
• It will identify the issues faced by the securitisation market
7.2% for FY21.
and give suggestions to develop it going ahead.
• Minimum and maximum growth estimate stood at 6.8 per
• Bain & Co's senior advisor Harsh Vardhan has been
cent and 7.3 per cent.
appointed as the chairperson of the committee.
• Wholesale Price Index (WPI) based inflation rate is
projected at 3.1% in 2019-20 with a minimum and RBI to cut Repo rate by 25BPS on weak growth
maximum range of 2.1 per cent and 4 per cent,
respectively.
•
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• The RBI’s monetary policy committee (MPC) will cut the
key policy rate by 25 basis points (bps) as inflation cooled
and economic growth slowed to a five-year low,
• Basis point (BPS) refers to a common unit of measure for
interest rates and other percentages in finance.One BPS is
equal to 1/100th of 1%, or 0.01%, or 0.0001, and is used to
denote the percentage change in a financial instrument.
Consumer Price Index for Industrial Workers
• The All-India CPI-IW for April, 2019 increased by 3 points
and pegged at 312.On 1-month percentage change.It
increased by (+) 0.97 % between March and April,2019
when compared with the increase of (+) 0.35% between
the corresponding months of previous year.
• A Consumer Price Index measures changes in the price
level of market basket of consumer goods and services
purchased by households.
India will be 5th largest economy in 2019
• India is forecast to become the world's fifth largest
economy in 2019, reaching a total GDP size exceeding $3
trillion, and overtaking its former colonial ruler, the United
Kingdom.
• By 2025, Indian GDP is also forecast to surpass Japan,
which will make India the second-largest economy in the
Asia-Pacific region.
RBI cuts repo rate by 25 bps to 5.75%
• RBI Monetary Police Committee unanimously cut repo
rate,the rate at which it lends to banks by 25 basis points
from 6% to 5.75%.
• The bank also changed the monetary policy stance from
neutral to accommodative.
• This is the third straight interest-rate cut under RBI
Governor Shaktikanta Das, who also heads the Monetary
Policy Committee (MPC).
Govt. to bolster employment, economic growth
• PM ordered the formation of two new Cabinet committees
that will focus on employment and economic growth.
• The committees are constituted under PM's
chairmanship.
• The Cabinet Committee on Employment and Skill
Development constitutes of 10 members including Amit
Shah,FM Nirmala,Piyush Goyal,Narendra Singh,Ramesh
Pokhriyal,Dharmendra Pradhan,MahendraPandey,Santosh
Gangwar and Hardeep Singh.
Govt may announce infusion of ₹4,000cr in PSU
• The government is likely to announce infusion of about
₹4,000 crore in three public sector general insurance
companies to shore up their capital-National Insurance
Company,Oriental Insurance Company and United India
Insurance Company.
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Monthly GK Banking Capsule 2019
June 2019
• The capital infusion will help them improve their financial
health to an extent that the proposed merger of the
general insurance firms.
Nirmala to attend G20 meeting in Japan
• Finance Minister Nirmala Sitharaman will attend the 2-day
meeting of G-20 Finance Ministers and Central Bank
governors in Japan on June 8-9, 2019.
• It is the first overseas visit of Sitharaman as the Finance
Minister.
• The main aim is to focus on the risks and challenges of
overseas trade and investment in infrastructure which are
faced by our country.
RBI relaxed stressed asset norms
• The RBI issued a new prudential framework for resolution
of stressed assets, effectively replacing its controversial 12
February 2018 circular.
• Three major changes mark the new circular.
• The central bank has made it voluntary for lenders to take
defaulters to the bankruptcy court.
• The framework now applies to a larger universe of
lenders.
• Penal provisions have been introduced for lenders.
India called upon G-20 countries
• India has called upon the G-20 countries to urgently fix the
issue of taxing profits made by digital economy companies
in countries where they do not have a significant physical
presence.
• Finance Minister Nirmala Sitharaman addressed the 2-day
meeting of the G-20 Finance Ministers and central bank
Governors at Fukuoka in Japan on 9 June 2019.
NPAs plunge to 9.3% in FY19
• The system-wide non-performing assets stock has declined
massively to 9.3% in March 2019.
• This is much faster than the RBI's estimate and steeply
down from 11.5% in 2018.
• In its half-yearly financial stability report, RBI had
estimated that the gross non- performing assets ratio
might improve to 10.3% by March 2019 from 10.8% in
September 2018.
RBI constituted a committee
• The RBI has constituted a 6-member committee to review
the entire gamut of ATM charges and fees.
• Chief Executive of Indian Banks’ Association VG Kannan
will chair the committee.
• The committee will review existing patterns of costs,
charges and interchange fees for ATM transactions.
• It is to submit its report within two months from the date
of its first meeting.
CBDT issued new norms

• The Central Board of Direct Taxes issued new norms for
compounding of offences on 14 June 2019.
• The new guidelines have exclusion provisions, under
which, offences under the Black Money and Imposition of
Act, 2015, cannot be compounded in normal cases.
• This includes money laundering cases.
• Compounding means that the authorities agree to not
prosecute offenders in return for a consideration.
WPI inflation at 2-year low of 2.45%
• Wholesale price-based inflation slipped to 2.45% in May
helped by falling prices of food articles, fuel, and power
items.
• The Wholesale Price Index (WPI)-based inflation was at
3.07% in April. It was 4.78% in May 2018.
• Inflation in food articles basket was 6.99%, down from
7.37% in April.
• However, onion prices spiked during the month with
inflation at 15.89%, against (-) 3.43% in April.
Fitch cut India's growth forecast to 6.6%
• Fitch lowered India's growth forecast to 6.6% for the
current fiscal from 6.8% projected earlier.
• In its latest Global Economic Outlook, Fitch retained its
GDP growth forecast for the next fiscal (2020-21) at 7.1%
and 7.0% for 2021-22.
• In the last fiscal, the Indian economy grew at a 5- year low
pace of 6.8%.
• India's GDP growth declined for the fourth consecutive
quarter in January-March.
RBI fell short of meeting Basel 3 norms
• RBI has fallen short of meeting the tougher requirements
set under the Basel 3 norms as per a report by Basel
Committee on Bank Supervision (BCBS).
• The committee reports that RBI is yet to publish the
securitization framework and rules on total loss absorbing
capacity (TLAC) requirements.
• Globally, the norms held in the banking book had come
into effect on 1 January 2018.
Bangladesh: fastest growing economy
• Bangladesh has emerged as the fastest growing economy
among the 45 countries of the Asia-Pacific region
according to Asian Development Bank (ADB).
• In the financial year, 2018-19 Bangladesh attained a
growth rate of 7.9 % which is its fastest rate since 1974.
• Higher public sector investment, stronger consumption
demand, were among the key factors of the high growth
performance of Bangladesh.
FM chaired 35th GST Council meeting
• The 35th GST Council Meeting was held on 21 June 2019
under the chairmanship of Union Finance & Corporate
Affairs Minister Smt. Nirmala Sitharaman.
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Monthly GK Banking Capsule 2019
June 2019
• Altogether, 12 Agenda items were discussed during the
Council meeting.
• Some of these items were of regular nature like
confirmation of the Minutes of the 34th GST Council
Meeting, deemed ratification by the Council of
notifications.
Panel to review margins on derivatives
• The Securities and Exchange Board of India (SEBI) has
decided to set up a working group to review the current
framework of margins in the futures and options segment.
• The working group will be headed by NSE Clearing Ltd.
• It will submit its recommendations to the Secondary
Market Advisory Committee.
• The existing margin requirement in the derivatives
segment is increasing the cost of trading.
US: India's largest merchandise trade partner
• The US overtook China to once again become India's top
goods trading partner in 2018-19.
• India’s trade surplus with the US declined to $16.8 billion
from $21.2 billion in 2018-19.
• The decline in India’s trade surplus with the US comes
amid a year-long trade war.
• Also, India’s dependence on Chinese imports declined to
$70 billion from $76 billion a year ago.
SEBI to allow IPOs by tech companies
• SEBI plans to allow technology companies having superior
voting right shares to launch their IPOs.
• It is planning to issue a new set of norms for differential
voting rights.
• The new norms are particularly aimed at helping new
technology companies with asset light business model.
RBI launched CMS for filing complaints
• The RBI has launched an application on its website for
lodging complaints against banks and NBFCs.
• It will improve customer experience in timely redressal of
grievances.
• RBI Governor Shaktikanta Das launched the Complaint
Management System (CMS) i.e. a software application on
24 June 2019.
• The application also improves transparency by keeping the
complainants informed.
RBI panel suggested Rs.5000 cr fund for MSMEs
• An RBI committee has suggested a ₹5,000 crore stressed
asset fund for domestic micro, small and medium
enterprises (MSMEs).
• The committee to study the problems faced by MSMEs
was chaired by U.K. Sinha, former chairman of the
Securities and Exchange Board of India.
• India’s 63.38 million MSMEs contribute significantly to the
country’s economic growth.

RBI union moots collegium
• RBI's employees association has called for a collegium of
experts to select a new governor and deputy governors so
as to ensure the autonomy of RBI.
• As per Section 8 of the Reserve Bank of India Act of 1934,
the governor and deputy governors are appointed by the
government.
• Acharya, the youngest ever deputy governor, resigned
from his position a few weeks back.
Lok Sabha passed SEZ Amendment Bill
• Special Economic Zones (Amendment) Bill, 2019 was
passed in the Lok Sabha on 26 June 2019.
• It was initially promulgated as an ordinance in March prior
to the announcement of General Elections.
• NK Premachandran of Revolutionary Socialist Party moved
a statutory resolution to disapprove the Special Economic
Zones (Amendment) Ordinance, 2019.
SEBI tightens norms for MF investments
• Securities and Exchange Board of India tightened norms on
investments by Mutual Funds (MFs).
• It came as a reaction to a series of credit-related events
that put investor money at risk.
• SEBI said MFs will now be mandated to invest in only listed
non-convertible debentures.
• Ajay Tyagi is the chairman of SEBI.
WTO panel ruled in India's favour
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Monthly GK Banking Capsule 2019
June 2019
• A World Trade Organisation, WTO dispute resolution panel
has ruled in favour of India in a case against the United
States.
• The panel stated that America's domestic content
requirements and subsidies provided by eight of its states
in the renewable energy sector are violative of global
trade norms.
• The panel concluded in its ruling that the measures of the
US are inconsistent.
Payment firms can process abroad: RBI
• The RBI has said foreign payment firms can process
transactions outside of the country but the related data
should be brought back for local storage within 24 hours.
• Such data must be "deleted from the systems abroad", it
added.
• The previous RBI directive in April 2018 didn't specify
whether data can be processed abroad or should only be
done locally.
Govt cut interest rate on small saving schemes
• The government has reduced interest rate on small savings
schemes, including the National Savings Certificate and
Public Provident Fund, by 0.1% for the July-September
quarter.
• PPF and NSC will fetch an annual interest rate of 7.9%
from the existing rate of 8%, while Kisan Vikas Patra will
yield 7.6%.
• The Sukanya Samriddhi Account will fetch a lower return
of 8.4% from 8.5%.
Business and Economy
• India's automobile retail industry has sought recognition
as micro, small and medium enterprises (MSMEs) in the
Union Budget 2019- 20 which will be presented on 5 July
2019.
• India’s current account deficit (CAD) widened to $57.2
billion, or 2.1% of GDP, in FY19 from 1.8% a year ago.
Surjit Bhalla Committee on Trade and Policy
• High Level Advisory Group (HLAG) headed by Dr. Surjit S.
Bhalla has been constituted by the Department of
Commerce.
• The HLAG will investigate ways for boosting India’s share
and importance in global merchandise and services trade.
• The Committee has recommended 'Elephant Bonds' as a
specialised security product providing funds towards Long
Term Infrastructure.
RBI sets base rate of 9.18% for NBFC-MFI
• The Reserve Bank of India has set an average base rate of
9.18% for Non-Banking Financial Companies and Micro
Finance Institutions (NBFC-MFI) to be charged from their
customers for the quarter beginning 1 July 2019.

• The Reserve Bank of India sets the average base rate for
NBFC-MFIs on the basis of the average of the base rate of
the five largest commercial banks.
Govt forms working group for revision of WPI
• On 27 June 2019, the government has set up an 18-
member working group for the revision of the current
series of Wholesale Price Index (WPI).
• The working group is under the Chairmanship of Ramesh
Chand, Member, NITI Aayog.
• The Department for Promotion of Industry and Internal
Trade will be the nodal office for the group.
RBI launched CMS for filing complaints
• The RBI has launched an application on its website for
lodging complaints against banks and NBFCs.
• It will improve customer experience in timely redressal of
grievances.
• RBI Governor Shaktikanta Das launched the Complaint
Management System (CMS) i.e. a software application on
24 June 2019.
• The application also improves transparency by keeping the
complainants informed.
RBI panel suggested Rs.5000 cr fund for MSMEs
• An RBI committee has suggested a ₹5,000 crore stressed
asset fund for domestic micro, small and medium
enterprises (MSMEs).
• The committee to study the problems faced by MSMEs
was chaired by U.K. Sinha, former chairman of the
Securities and Exchange Board of India.
• India’s 63.38 million MSMEs contribute significantly to the
country’s economic growth.
RBI union moots collegium
• RBI's employees association has called for a collegium of
experts to select a new governor and deputy governors so
as to ensure the autonomy of RBI.
• As per Section 8 of the Reserve Bank of India Act of 1934,
the governor and deputy governors are appointed by the
government.
• Acharya, the youngest ever deputy governor, resigned
from his position a few weeks back.
Lok Sabha passed SEZ Amendment Bill
• Special Economic Zones (Amendment) Bill, 2019 was
passed in the Lok Sabha on 26 June 2019.
• It was initially promulgated as an ordinance in March prior
to the announcement of General Elections.
• NK Premachandran of Revolutionary Socialist Party moved
a statutory resolution to disapprove the Special Economic
Zones (Amendment) Ordinance, 2019.
SEBI tightens norms for MF investments
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Monthly GK Banking Capsule 2019
June 2019
• Securities and Exchange Board of India tightened norms on
investments by Mutual Funds (MFs).
• It came as a reaction to a series of credit-related events
that put investor money at risk.
• SEBI said MFs will now be mandated to invest in only listed
non-convertible debentures.
• Ajay Tyagi is the chairman of SEBI.
WTO panel ruled in India's favour
• A World Trade Organisation, WTO dispute resolution panel
has ruled in favour of India in a case against the United
States.
• The panel stated that America's domestic content
requirements and subsidies provided by eight of its states
in the renewable energy sector are violative of global
trade norms.
• The panel concluded in its ruling that the measures of the
US are inconsistent.
Payment firms can process abroad: RBI
• The RBI has said foreign payment firms can process
transactions outside of thecountry,,,y, but the related data
should be brought back for local storage within 24 hours.
• Such data must be "deleted from the systems abroad", it
added.
• The previous RBI directive in April 2018 didn't specify
whether data can be processed abroad or should only be
done locally.
Govt cut interest rate on small saving schemes
• The government has reduced interest rate on small savings
schemes, including the National Savings Certificate and
Public Provident Fund, by 0.1% for the July-September
quarter.
• PPF and NSC will fetch an annual interest rate of 7.9%
from the existing rate of 8%, while Kisan Vikas Patra will
yield 7.6%.
• The Sukanya Samriddhi Account will fetch a lower return
of 8.4% from 8.5%.
Business and Economy
• India's automobile retail industry has sought recognition
as micro, small and medium enterprises (MSMEs) in the
Union Budget 2019- 20 which will be presented on 5 July
2019.
• India’s current account deficit (CAD) widened to $57.2
billion, or 2.1% of GDP, in FY19 from 1.8% a year ago.
Surjit Bhalla Committee on Trade and Policy
• High Level Advisory Group (HLAG) headed by Dr. Surjit S.
Bhalla has been constituted by the Department of
Commerce.
• The HLAG will investigate ways for boosting India’s share
and importance in global merchandise and services trade.

• The Committee has recommended 'Elephant Bonds' as a
specialised security product providing funds towards Long
Term Infrastructure.
RBI sets base rate of 9.18% for NBFC-MFI
• The Reserve Bank of India has set an average base rate of
9.18% for Non-Banking Financial Companies and Micro
Finance Institutions (NBFC-MFI) to be charged from their
customers for the quarter beginning 1 July 2019.
• The Reserve Bank of India sets the average base rate for
NBFC-MFIs on the basis of the average of the base rate of
the five largest commercial banks.
Govt forms working group for revision of WPI
• On 27 June 2019, the government has set up an 18-
member working group for the revision of the current
series of Wholesale Price Index (WPI).
• The working group is under the Chairmanship of Ramesh
Chand, Member, NITI Aayog.
• The Department for Promotion of Industry and Internal
Trade will be the nodal office for the group.
Financial Schemes & MoUs
PM-KISAN Yojana extended to all farmers
• PM-KISAN Scheme extension to include all eligible farmer
families irrespective of the size of land holdings.
• The key element of PM-KISAN is income support of
Rs.6000/- to the small and marginal landholder farmer
families with cultivable land holding upto 2 hectare across
the country which has been now expanded.
• The amount will be released in three 4-monthly
instalments of Rs.2000/- each year
IIT Guwahati signs MoU with ISRO
• IIT Guwahati has signed an MoU with the Indian Space
Research Organisation (ISRO) to set up an IITG-ISRO Space
Technology Cell (STC) at the institute.
• IITG-ISRO STC would be first of its kind in the North-east
region to augment research and capacity building
processes in the field of space technology.
• The space technology cell will constitute faculty members
from IIT Guwahati.
Forest Dept signs MoU for Byculla extension
• The state forest dept and the civic body signed a
memorandum of understanding (MoU) for the handing
over of around 100 acres of land at Aarey Colony in
Goregaon to extend the Veermata Jijabai Bhosle Udyan
(Byculla zoo).
• After the extension, the civic body plans to introduce
state-of-the-art facilities at par to the zoos located abroad
the expenditure for which, would be around Rs 500 crore.
MCA and SEBI signed MoU
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Monthly GK Banking Capsule 2019
June 2019
• A MoU was signed between the Ministry of Corporate
Affairs (MCA) and SEBI for data exchange between the two
regulatory organizations.
• The MoU was signed by Shri K.V.R. Murty, Joint Secretary,
MCA and Smt. Madhabi Puri Buch, Whole Time Member,
SEBI.
• The MoU comes in the wake of increasing need for
surveillance in the context of Corporate Frauds affecting
important sectors of the economy.
Tamil Nadu govt, World bank signed agreement
• Tamil Nadu Government(GoTN) and the World Bank
signed a $287-million loan agreement for the Tamil Nadu
Health System Reform Programme (TNHSRP).
• The main aim is to improve the quality of healthcare and
to reduce the burden of noncommunicable diseases
(NCDs).
• Tamil Nadu is also dealing with a growing burden of NCDs
as they account for nearly 69 percent of deaths in the
State.
V.O. Chidambaranar Port Trust inked MoU
• The V.O. Chidambaranar Port Trust, Tuticorin and Central
Warehousing Corporation (CWC) signed a MoU on 10 June
2019.
• It will facilitate Direct Port Entry (DPE) of e-sealed factory
stuffed export container to the port under ‘Ease of Doing
Business’.
MoC, MoU b/w India and Kyrgyzstan approved
• A MoC between India and Kyrgyzstan was approved for
collaborative research work on High Altitude Biology and
Medicine.
• It will help in understanding the physical and mental
picture of soldier system at high altitude.
• A MoU was approved in the field of Legal Metrology
between India and Kyrgyzstan. It will be signed from June
13-14, 2019.
MoU between India and Russia approved
• The Union Cabinet approved the MoU on the cooperation
between the Ministry of Railways, India and Railway
Research Institute, Russia.
• The MoU will facilitate the exchange of information,
expert meetings, seminars, technical visits, and
implementation of jointly agreed cooperation projects.
• The MoU was signed in April 2019.
MoU between India and Thailand approved
• The Union Cabinet approved a MoU on the cooperation
between India and Thailand in the field of Astronomy /
Astrophysics / Atmospheric Science.
• The MoU will lead to new scientific results, human
resource development through increased scientific

interaction and training, joint use of scientific
infrastructure, etc.
• The MoU was signed in November 2018.
MoU between Indian and Finland approved
• The Union Cabinet, approved a MoU on the cooperation in
the area of Cyber Security between India and Finland.
• The MoU intends to promote closer cooperation for
exchange of knowledge and experience in detection,
resolution and prevention of security related incidents
between India and Finland.
• The MoU was signed in January 2019.
MoU between India and Bolivia approved
• The Union Cabinet approved the MoU on the cooperation
between India and Bolivia on cooperation regarding
Bioceanic Railway Integration Corridor Project.
• The MoU will facilitate exchange of information, expert
meetings, seminars, technical visits and implementation of
jointly agreed cooperation projects.
• The MoU was signed in March 2019.
Govt to sign MoU for 300 gaushalas
• MP Government is set to sign a MoU with a company that
has promised to build 300 Smart Gaushalas over the next 5
years.
• The company will not charge a penny from the
government, but will make money by exporting items
made from gaumutra, gobar and the stiff hairs on a cow’s
tail’.
New Appointments
Appointments
Role
Interim chairman of the Jammu and Kashmir (J&K) Bank
Home Minister of AP
Chief Justice of the Delhi High Court.
Ex-Officio members of the think tank
Speaker of the Lok Sabha
Leader of Rajya Sabha
State president of Nationalist Congress Party, NCP
CEO and MD Wipro
Chairman - ITC Ltd
Chairman of Axis Bank
Union Minister of Tribal Affairs
Goa’s brand ambassador
Important Definitions
Terms Definitions
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Monthly GK Banking Capsule 2019
June 2019
• The company has sought 50 acres of land for and will
spend Rs 11 crore on each of them
Government to revamp Mudra Scheme
• The finance ministry plans to revamp Pradhan Mantri
Mudra Yojna (PMMY), to ensure better access to credit for
small firms, boost entrepreneurship and promote financial
inclusion.
• Under the scheme, collateral-free loan of up to ₹10 lakh
falls under three categories—Shishu, Kishore and Tarun.
• Shishu accounts for loans of up to ₹50,000, while ₹50,001
to ₹5 lakh are disbursed under Kishore.
Government set up 713 Krishi Vigyan Kendras
• The Government has set up 713 Krishi Vigyan Kendras and
684 Agricultural Technology Management Agencies at the
district level in the country for dissemination of
technologies among the farming community.
• This is aimed at meeting the target of doubling the
farmers' income by 2022.
• An Inter-Ministerial Committee has been constituted to
examine issues relating to doubling of farmers' income
MoUs and Agreement
• IDBI Bank has entered a bancassurance corporate agency
agreement with Tata AIG.
• The National Payments Corporation of India (NPCI) has
entered into an agreement with the Government of
Telangana to offer MeeSeva portal users the option to pay
using UPI Collect Request, RuPay Debit and Credit Cards
for the services on the portal.
Person in Charge
R K Chibber
Mekathoti Sucharita
Justice Dhirubhai Naranbhai Patel
Rajnath Singh, Amit Shah,
Nirmala S and Narendra Singh
Om Birla
Thawarchand Gehlot
Shankersinh Vaghela
Abidali Z. Neemuchwala
Sanjiv Puri
Rakesh Makhija
Shri Arjun Munda
Namrata Menon
 Monthly GK Banking Capsule 2019
June 2019

Repo Rate When RBI provides a loan to the bank for short-term between 1 to 90, RBI
takes some interest from the bank which is termed as Repo Rate.
Reverse Repo Rate When bank deposit it's excess money in RBI then RBI provides some interest
to that bank. This interest is known as Reverse Repo Rate.
Unified Payment This interface will integrate the entire payment systems in India. It uses a
Interface single application programme interface with a series of Application
Programme interface (API’S). The mobile devices are the primary object for all
the payments.
The Balance of The difference between the country’s exports and the value of its imports are
Trade known as the Balance of Trade. It normally incorporates trade in services
unless mentioned as the balance of merchandise trade. It includes earnings
(interest, dividends, etc.) on financial assets.
Marginal standing MSF is the rate through which bank can borrow funds for Short time –
facility Overnight basis. Current MSF is 6.00%
SLR – (Statutory Every bank has to maintain a certain % of their total deposits in the form of
Liquidity Ratio) (Gold + Cash + bonds + Securities) with themselves at the end of every
business days. Current SLR is 20.75%.
CRR - (Cash Cash reserve ratio is the minimum amount of deposits that banks have to
Reserve Ratio) maintain with the Central Bank. Current CRR is 4%
Bitcoin Bitcoin is a virtual currency/ cryptocurrency and a payment system.
It can be defined as decentralized means of tracking and assigning wealth or
economy, it is a software protocol.
Bitcoin uses two cryptographic keys, one public (username) and one private
(password) are generated.
1Bitcoin= 108 Satoshi.
Scheduled bank Banks which are included in the 2nd Schedule of RBI Act 1934 are known as a
scheduled commercial bank. These banks should fulfil two conditions: Paid up
capital and collected funds should not be less than Rs.5 Lacs. Any activity of
the Bank should not adversely affect the interests of the customers.
Wholesale Price A wholesale price index (WPI) is an index that measures and tracks the
Index changes in the price of goods in the stages before the retail level – that is,
goods that are sold in bulk and traded between entities or businesses instead
of consumers
Unified Payment This interface will integrate the entire payment systems in India. It uses a
Interface single application programme interface with a series of Application
Programme interface (API’S). The mobile devices are the primary object for all
the payments.
Money laundering Money laundering is a process of conversion of illegal money from various
sources to appear to have originated from legitimated (Legal) source. The
major sources of illegal money are tax evasion, bribe, Smuggling etc
Difference between A capital market is an organised market which provides long-term finance for
Capital market and business.
Money market Whereas Money market provides short-term finance for business
A Balance of A list that states a country’s transactions with other countries for a certain time
Payments period (generally 1 year). Payments into the country (receipts) are entered as
positive numbers, called credits. Payments out of the country (payments) are
entered as negative numbers called debts. A single number summarises the
country’s international transactions: the balance of payments surplus.
Bill of Exchange A bill of exchange is a non- interest bearing written order which is used

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June 2019

primarily in foreign trade which binds one party to pay a fixed amount of
money to another party at a decided
future date. A bill of exchange is signed by the creditor and accepted by a
debtor.
Basel 3 norms Basel III is an international regulatory accord that introduced a set of reforms
designed to improve the regulation, supervision and risk management within
the banking sector. ... Largely in response to the credit crisis, banks are
required to maintain proper leverage ratios and meet certain minimum capital
requirements
Bank Rate Bank rate is also termed as “Discount Rate”
The rate through which RBI charges certain % for providing money to other
banks without any security for a Long period of time for 90 Days & Current
Bank Rate is 6.00%.
Inflation Inflation is a State in which the Value of Money is falling and the Prices are
rising, over a period of time.

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