A Monthly Newsletter of Indian Institute of Banking & Finance

(ISO 9001 : 2015 CERTIFIED)

Committed to
professional
Committed excellence
to
professional excellence

Volume No. : 15 Issue No. : 07 February 2023 No. of

No.Pages -8 -8
of Pages

MISSION
VISION To develop professionally qualified and
To be premier Institute for competent bankers and finance professionals
developing and nurturing competent primarily through a process of education,
professionals in banking and finance training, examination, consultancy /
field. counselling and continuing professional
development programs.

Online
Examination
Mock Test
E-Learning
Face Book

You
Tube

Training

Mobile App

Video
Lecture INSIDE
Top Stories...............................................2
Banking Policies.....................................3
Banking Development...........................4
Regulator Speaks....................................4
Economic Wrap Up................................4
New Appointments................................4
Forex.........................................................5
Glossary...................................................5
Financial Basics......................................5
Institute’s Training Activities................5
News from the Institute.........................6
Green Initiative.......................................7
Market Roundup....................................7

"The information / news items contained in this publication have appeared in various external sources / media for public use or consumption and
are now meant only for members and subscribers. The views expressed and / or events narrated/ stated in the said information / news items are as
perceived by the respective sources. IIBF neither holds nor assumes any responsibility for the correctness or adequacy or otherwise of the news items
IIBF
/ events VISION
or any information whatsoever."
 Top Stories

TOP STORIES

Monetary Policy Highlights February 6-8, 2023

The key highlights of the Monetary Policy Committee (MPC) meeting, held from February 6 to February 8,
2023, are mentioned below:
 Increase the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points to 6.50 per
cent with immediate effect.
 The Standing Deposit Facility (SDF) rate stands adjusted to 6.25 per cent and the Marginal Standing Facility
(MSF) rate and the Bank Rate to 6.75 per cent.
 CPI headline inflation moderated to 5.7 per cent (y-o-y) in December 2022.
 CPI inflation is projected at 5.3 per cent for 2023-24, with Q1 at 5.0 per cent, Q2 at 5.4 per cent, Q3 at 5.4
per cent and Q4 at 5.6 per cent, and risks evenly balanced
 The MPC decided to remain focused on withdrawal of accommodation to ensure that inflation remains
within the target going forward, while supporting growth.
 The overall liquidity remains in surplus, with average daily absorption under the LAF increasing to ₹1.6
lakh crore during December-January from an average of ₹1.4 lakh crore in October-November.
 Real GDP growth for 2023-24 is projected at 6.4 per cent with Q1 at 7.8 per cent, Q2 at 6.2 per cent, Q3 at
6.0 per cent and Q4 at 5.8 per cent, and risks broadly balanced.
Highlights of Union Budget, 2023-24
 ‘Saptarishi’: The Budget’s seven priorities include inclusive development, reaching the last mile, infrastructure
& investment, unleashing the potential, green growth, youth power and financial sector.
 MSMEs, large business and charitable trusts to benefit from Entity DigiLocker facility to store and share
documents online securely.
 Environment (Protection) Act to encompass Green Credit Programme  to incentivize and mobilize
additional resources for environmentally sustainable and responsive actions.
 Rollout of Direct Benefit Transfer under a Pan-India National Apprenticeship Promotion Scheme to
provide stipend support to 47 lakh youths in three years.
 National Financial Information Registry to be established in consultation with RBI, for facilitating efficient
flow of credit, promoting financial inclusion, and fostering financial stability.
 Financial sector regulators to carry out a comprehensive review of existing regulations in consultation with
public and regulated entities. Single window IT system to be set up for registration and approval from
IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI.
 IFSC Banking Units of foreign banks can do acquisition financing.
 Amendments proposed to the Banking Regulation Act, the Banking Companies Act and the Reserve Bank
of India Act for improved bank governance and investors’ protection.
Highlights of Economic Survey 2022-23
 The Economic Survey for 2022-23 is confident that post-pandemic, Indian economy is now poised to reap
the benefits of reforms. The Economic Survey 2022-23 projects a baseline GDP growth of 6.5 per cent in
real terms in FY24. The projection is broadly comparable to the estimates provided by multilateral agencies
such as the World Bank, the IMF, and the ADB and by RBI, domestically.

IIBF VISION 2 February 2023

 Top Stories - Banking Policies

 The finances of the public sector banks have seen a significant turnaround, with profits being booked
at regular intervals and their Non-Performing Assets (NPAs) being fast-tracked for quicker resolution/
liquidation by the Insolvency and Bankruptcy Board of India (IBBI).
 At the same time, the government has been providing adequate budgetary support for keeping the PSBs
well-capitalized, ensuring that their Capital Risk-Weighted Adjusted Ratio (CRAR) remains comfortably
above the threshold levels of adequacy.
 RBI has projected headline inflation at 6.8 per cent in FY23, which is outside its target range.
 Increase in the overall bank credit has been influenced by the shift in borrower’s funding choices from
volatile bond markets, where yields have increased. Central Government’s Capital Expenditure (Capex)
increased by 63.4% in the first eight months of FY23.
 CAD may continue to widen due to elevated global commodity prices, albeit our economy’s growth remains
strong.

Banking Policies
Deadline for renewal of locker agreements extended by a year
It has been decided by regulators to extend the deadline for banks to complete the process of renewal of agreements
for the existing safe deposit lockers in a phased manner by December 31, 2023, with intermediate milestones of
50 per cent by June 30, 2023, and 75 per cent by September 30, 2023. Further, banks have been advised to make
necessary arrangements to facilitate execution of the revised agreements by ensuring the availability of stamp
papers, etc.
Further as per extant guidelines, in cases where operations in lockers have been frozen for non-execution of
agreement by January 1, 2023, the same shall be unfrozen with immediate effect.
Picking up more than 5% stake in banks needs RBI’s prior approval
Any person looking to acquire more than 5% stake in a bank, will now have to seek RBI’s prior approval by
submitting an application. This move has been mandated after RBI has defined “major shareholding” as “aggregate
holding” of 5% or more of the paid-up share capital or voting rights in a banking company by a person.
Following acquisition, if the person’s shareholding falls below 5%, and he/she again wishes to raise one’s holding
to 5% or more, they will need to seek fresh approval from RBI.
Re-KYC can be done through non-face-to-face channels: RBI
Removing the need to visit a bank branch physically for completing the Re-Know Your Customer (Re-KYC)
process, the RBI has clarified that self-declaration by customers through non-face-to-face channels will be
sufficient for this purpose if there is no change in the KYC information. Banks have been advised to provide this
facility via various non-face-to-face channels viz. registered email-id, registered mobile number, ATMs, digital
channels (such as online banking / internet banking, mobile application), letter, etc. RBI has encouraged bank
customers to ask their bank for different available options for completing re-KYC or fresh KYC by visiting a bank
branch or remotely through V-CIP.
Bond market players can prevent gilt auction errors by using correct tools on e-Kuber
RBI has established the e-Kuber Core Banking Solution platform that has banks, primary dealers, insurance
companies and provident funds as members.
Through this facility, the participants can set a maximum and minimum value for bids (in yield terms and price
terms) that they wish to submit at bond auctions. RBI has notified that no request for cancellation of bids will be
entertained after the close of auction window.

IIBF VISION 3 February 2023

 Banking Development - Regulator Speaks - Economic Wrap Up - New Appointments

Banking Development
RBI lists six rating agencies to weigh capital adequacy of banks
RBI has listed 6 domestic credit rating agencies for banks to use for risk weighting their claims about capital
adequacy. These include :
a. Acuite Ratings & Research Limited (Acuite)
b. Credit Analysis and Research Limited (CARE)
c. CRISIL Ratings Limited
d. ICRA Limited
e. India Ratings and Research Private Limited (India Ratings)
f. INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS)

Regulator Speaks
RBI Governor Mr. Shaktikanta Das underlines need for structural reforms, attracting private
investment for South Asia’s economic growth
Speaking at a high-level conference co-organised by International Monetary Fund (IMF) Asia and Pacific
Department (APD) and IMF South Asia Regional Training and Technical Assistance Centre (SARTTAC),
New Delhi, RBI Governor Mr. Shaktikanta Das averred that while sustained and broad-based economic
recovery remains important, it is also necessary to undertake deep structural reforms to raise the potential
growth trajectories of South Asian economies. Mr. Das emphasised on some specific areas of policy priority.
First, resource allocation i.e., – moving production from low productive sectors to high productive sectors, and
promotion of innovation is highly required. Second, skill mismatches need to be rectified via education and skill
upgradation. Third, the region’s investment on R&D must increase from the current low levels, and the policy
environment for scientific research and start-ups must be made more rewarding. Fourth, investment in prime
drivers of productivity growth viz. energy, transportation, telecommunication, should be enhanced.

Economic Wrap Up
The Annual Economic Review, 2022 - 23 from the Department of Economic Affairs lists the performance of key
economic indicators, as follows -
 Credit growth to MSME sector has been remarkably high, over 30.6%, on average during Jan-Nov 2022.
 The global PMI composite index has been in the contractionary zone since August 2022.
 Private Consumption as a percentage of GDP stood at 58.4% in Q2 of FY23, the highest among Q2s of all
the years since 2013-14.
 The challenge of the depreciating rupee, although better performing than most other currencies, persists
with the likelihood of further increases in policy rates by the US Fed.

New Appointments
Name Designation
Shri. C.S. Setty Re-appointed MD, State Bank of India
Shri. Ajay Kumar Srivastava MD & CEO, Indian Overseas Bank

IIBF VISION 4 February 2023

 Forex - Glossary - Financial Basics - Institute’s Training Activities

Forex
Foreign Exchange Reserves
Item As on January 27, 2023
₹ Cr. US$ Mn.
1 Total Reserves 4702189 576761
1.1 Foreign Currency Assets 4149889 509018
1.2 Gold 358942 44027
1.3 SDRs 150649 18478
1.4 Reserve Position in the IMF 42709 5238
Source: Reserve Bank of India
BASE RATES OF ALTERNATIVE REFERENCE RATES (ARRs) FOR FCNR (B) DEPOSITS
APPLICABLE FOR THE MONTH OF FEBRUARY, 2023
Currency Rates Currency Rates Currency Rates
USD 4.30 AUD 3.10 HKD 1.28486
GBP 3.4278 CHF 0.947518 MYR 2.73
EUR 1.906 NZD 4.25 DKK 1.6790
JPY -0.014 SEK 2.392 Source: www.fbil.org.in
CAD 4.5100 SGD 3.5637

Glossary
Treasury Bills (T-Bills)
Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the
Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day.

Financial Basics
Capital Adequacy Ratio – CAR
Capital Adequacy Ratio (CAR) is a measurement of a bank's available capital expressed as a percentage of a
bank's risk-weighted credit exposures. The capital adequacy ratio, also known as capital-to-risk weighted assets
ratio (CRAR), is used to protect depositors and promote the stability and efficiency of financial systems around
the world.

Institute’s Training Activities

Training Programmes for the month of February, 2023
Programmes Date Location
Programme on Discipline Management & Disciplinary Action/ 2 to 4 February 2023
nd th

Proceedings
Programme on Credit Monitoring 7th to 9th February 2023
Virtual
Training for Certified Accounting and Audit Professional 8th to 10th February 2023
Programme for Internal Audit Officers of Banks 14th to 15th February 2023
Programme on Foreign Exchange Operations 15th to 17th February 2023

IIBF VISION 5 February 2023

 Institute’s Training Activities - News from the Institute

Programmes Date Location

Workshop on Ethics 15th February 2023

Programme on Know Your Customer (KYC), Anti - Money Laundering 27th to 28th February 2023
(AML) and Combating Financing of Terrorism (CFT)
Virtual
Programme on the Implications of Ind AS on the Financial position of 27th to 28th February 2023
Banks/Corporate Customers

Executive Development Program for Women Officers of the Banks/FIs 7th March 2023

News from the Institute

IIBF organised a Banking Conclave on Responsible Banking in partnership with UNEP-FI
The Institute has partnered with United Nations Environment Program-Finance Initiative (UNEP-FI) for
sensitizing bankers on Climate Risk and Sustainable Finance. The conclave held on 30th January 2023 was
attended by Board Members of banks followed by workshops for General Bankers, Credit Risk Professionals and
Relationship Managers on 31st January 2023, 1st February 2023 and 2nd February 2023 respectively. The keynote
addresses was delivered by Mr. Sourav Sinha, ED, RBI, Mr. Madhav Nair, Country Head & CEO, Mashreq
Bank and Mr. Ashwini Bhatia, Whole Time Member, SEBI on 30th January, 31st January and 1st February 2023
respectively. The Inaugural address on 30th January 2023 was delivered by Mr. Sunil Mehta, CE, IBA. Several
interactive sessions were delivered by the experts on Responsible Banking. The event was attended by participants
across Public/Private/Foreign Banks and was well appreciated by all the attendees.
IIBF - IFC to jointly launch a Certificate course on Climate Risk and Sustainable Finance
The Institute has entered into an agreement with International Financial Corporation (IFC) for providing
a certification course on Climate Risk and Sustainable Finance. The course will be provided in the form of
e-learning comprising of 4-6 hours of learning followed by an assessment. The certificate will be jointly issued
by IIBF and IFC.
JAIIB/DB&F/SOB/CAIIB - Introduction of Revised Syllabi
The syllabi of JAIIB/DB&F/SOB/CAIIB courses have been restructured and revised to make them more
contemporary, conceptual and ensure greater value addition. In this regard, the CEO of the Institute addressed
a message to the members on the need for revising the syllabi. A detailed notice, about the subjects under the
revised syllabi, the examination pattern, time limit for passing, passing criteria etc. has also been placed on the
website. To make the transition more candidate friendly, credits for certain subjects have been allowed from
the old syllabi to the new syllabi. The examinations, under the revised syllabi, will be held from May/June 2023
onwards. The negative marking rule has been deferred by the Institute. For more details, please visit our website
www.iibf.org.in.
IIBF invites Application for Research Fellowship in “Banking Technology”: 2022-23 (Joint initiative of
IIBF & IDRBT)
The Institute invites applications for Research Fellowship in “Banking Technology”: 2022-23 (Joint initiative of
IIBF & IDRBT). The research fellowship in Banking Technology, aims to sponsor technically and economically
feasible technology research projects which has the potential to contribute significantly to the Banking and
Financial Sector. The last date for receipt of applications is 31st March, 2023. For more details visit: www.iibf.org.
in

IIBF VISION 6 February 2023

 News from the Institute - Green Initiative - Market Roundup

IIBF invites Application for Diamond Jubilee and CH Bhabha Banking Overseas Research Fellowship
(DJCHBBORF) – 2022-2023
The Institute invites applications for DJCHBBORF 2022-23. The objective of the fellowship is to provide the
successful candidate an opportunity to undertake a research study on the latest developments in the field of
banking and finance in India or abroad. The last date for receipt of applications is 28th February 2023. For more
details visit: www.iibf.org.in.
IIBF invites proposals under Micro & Macro Research 2022-23
The Institute invites applications for Micro Research, 2022-23 for members of the Institute (bankers) to present
their original ideas, thoughts and best practices on areas of their interest. The Institute also invites Macro
Research Proposals for the year 2022-23. The last date for receipt of applications under both the schemes is 28th
February 2023. For more details visit: www.iibf.org.in
Bank Quest Theme for upcoming issue
The theme for the upcoming issue of Bank Quest for the quarter January - March, 2023 is “Increased footprints
of Financial Planning and Wealth Management”.
Cut-off date of guidelines /important developments for examinations
The Institute has a practice of asking questions in each exam about the recent developments / guidelines issued by
the regulator(s) in order to test if the candidates keep themselves abreast of the current developments. However,
there could be changes in the developments / guidelines from the date the question papers are prepared and the
dates of the actual examinations. In order to address these issues effectively, it has been decided that: (i) In respect
of the exams to be conducted by the Institute for the period from February 2023 to July 2023, instructions/
guidelines issued by the regulator(s) and important developments in banking and finance up to 31st December
2022 will only be considered for the purpose of inclusion in the question papers. (ii) In respect of the exams to
be conducted by the Institute for the period from August 2022 to January 2023, instructions/guidelines issued
by the regulator(s) and important developments in banking and finance up to 30th June 2022 will only be
considered for the purpose of inclusion in the question papers.

Green Initiative
Members are requested to update their e-mail address with the Institute and send their consent to receive the
Annual Report via e-mail.

Market Roundup
RBI Reference Rate Weighted Average Call Rates (%)
120

7
100
6
80
5

60 4

3
40
2
20
1

0 0
August, September, October, November, December, January,
2022 2022 2022 2022 2022 2023 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23
USD GBP EURO YEN

Source:FBIL Source: Weekly Newsletter of CCIL

IIBF VISION 7 February 2023

 Market Roundup

● Registered with Registrar of Newspapers Under RNI No. : 69228/1998 Crude Price (Rs./bbl.)
8,000.00

Aggregate Deposit Growth (%) 7,500.00

9.7
7,000.00
9.6

9.5 6,500.00

9.4
6,000.00
9.3

9.2
5,500.00

9.1 5,000.00
9 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23

8.9 Source: PPAC, Ministry of Petroleum and Natural Gas

Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22

Source: Monthly Review of Economy, CCIL, December, 2022 BSE Sensex and NIFTY 50
70,000.00
Bank Credit Growth (%) 60,000.00
19
50,000.00
18
40,000.00
17
30,000.00
16
20,000.00
15
10,000.00
14
0.00
13 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23

12
July, August, September, October, November, December, BSE Close Nifty 50
2022 2022 2022 2022 2022 2022
Source: BSE & NSE
Source: Reserve Bank of India
Printed by Biswa Ketan Das, Published by Biswa Ketan Das, on behalf
of Indian Institute of Banking & Finance, and printed at Onlooker Press
Non-food Credit Growth (%) 16, Sasoon Dock, Colaba, Mumbai - 400 005 and published at Indian Institute
18 of Banking & Finance, Kohinoor City, Commercial-II, Tower-I, 2nd Floor,
Kirol Road, Kurla (W), Mumbai - 400 070.
17 Editor : Biswa Ketan Das

16

15

14

13

12
Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22

Source: Monthly Review of Economy, CCIL, December, 2022

Gold Price 999per gm (Rs.)

5,800

5,600

5,400

5,200

5,000
INDIAN INSTITUTE OF BANKING & FINANCE
4,800
Kohinoor City, Commercial-II, Tower-I, 2nd Floor, Kirol Road, Kurla (W),
4,600
Mumbai - 400 070.
Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23
Tel. : 91-22-6850 7000
E-mail : admin@iibf.org.in
Source: Gold Price India Website : www.iibf.org.in

IIBF VISION 8 February 2023