Professional Documents
Culture Documents
Awareness 2018
Dear AC Aspirants,
All the best for upcoming Exams with regards from AC Team
If you have issue in download,Contact us(affairscloud@gmail.com) with
your Payment ID.
Help:
If You Satisfied with our Capsule mean kindly donate some amount
to BoscoBan.org (Facebook.com/boscobengaluru )
or Kindly Suggest this site to your family members & friends !!!
Banking & Economy Awareness 2018
Contents
Banking & Economy Awareness April 2018..................................................................................................... 3
Banking & Economy Awareness May 2018.................................................................................................... 41
3|Page
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
iii. Payment Bank are special category banks, which have been approved by Reserve Bank of India (RBI) to
promote financial inclusion. It undertakes restricted banking activities. Currently it is permitted to accept
deposits up to Rs. 1 lakh and is not permitted to offer loans.
iv. In November 2016, Airtel Payment Bank became the first entity to commence operations as
Payments Bank.
v. Paytm Payments Bank and Fino Payments Bank commenced operations in 2017.
vi. India Post Payments Bank, which also got a license for a payment bank is yet to start its full-fledged
operations in a formal way.
RBI announces its first bi-monthly monetary policy for the new fiscal year
On April 5, 2018, Reserve Bank of India (RBI) announced First Bi-Monthly Monetary Policy Statement for
financial year 2018-19. This time too, the Policy Repo Rate has been kept unchanged.
Post the First Bi-Monthly Monetary Policy Statement announcement, the policy rates and reserve ratios
are as follows:
Marginal Standing Facility Rate 6.25% Unchanged – since 2nd August 2017
Cash Reserve Ratio (CRR) 4.00% Unchanged – since 9th February 2013
5|Page
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
Statutory Liquidity Ratio (SLR) 19.50% With Effect from 14th October 2017
Indian Bank launches PFMS & also launched ‘Bharat QR’, a mobile payment collection
Indian Bank has introduced Public Financial Management System (PFMS) and has launched ‘Bharat QR’ facility.
Indian Bank launches PFMS & ‘Bharat QR’:
i. Indian Bank, Managing Director and CEO, Kishor Kharat launched these initiatives in Chennai.
ii. Indian Bank has introduced public financial management system aimed to benefit government agencies for
utilising payment service.
iii. PFMS will help government agencies for processing payments, tracking, monitoring, accounting,
reconciliation.
iv. The facility was being used for NREGA (National Rural Employment Guarantee Act) transactions in Tamil
Nadu and Andhra Pradesh, at present.
v. ‘Bharat QR’ is a mobile payment collection scheme to accept digital payments. Using this scheme, a
merchant will receive Bharat QR sticker. This will enable customers to make payments through the QR facility.
vi.Merchants should place the stickers at the shop. Customers can scan that and pay through any digital
transaction mode.
About Indian Bank:
♦ MD and CEO – Kishor Kharat
♦ Headquarters – Chennai
India, World Bank sign US$ 420 million project agreement to benefit farmers in Maharashtra
On 6th April 2018, Government of India, Government of Maharashtra and the World Bank signed a US$
420 million project to benefit Small and Marginal farmers in the Marathwada and Vidarbha regions of
Maharashtra.
Maharashtra Project for Climate Resilient Agriculture:
i. This project will help to increase climate resilient practices in agriculture and to make farming a profitable
activity.
ii. This project will benefit more than 7 million people over an area of 3.0 million ha. It will cover 5,142 villages
in the 15 most climate vulnerable districts of the region.
7|Page
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
iii. The $420 million loan provided by the International Bank for Reconstruction and Development
(IBRD) has a grace period of 6 years. Its maturity period is 24 years.
iv. The Agreements for the Maharashtra Project for Climate Resilient Agriculture were signed by Sameer Kumar
Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Indian
government.
v. Bijay Kumar, Additional Chief Secretary, Agriculture Department signed on behalf of Maharashtra
government. Junaid Ahmad, Country Director, World Bank, India, signed on behalf of the World Bank.
vi. This project will be implemented in rural areas that are mainly dependent on rain-fed agriculture.
Some National Parks in Maharashtra:
♦ Sanjay Gandhi National Park
♦ Gugamal National Park
RBI switches back to GDP model from GVA model to measure economy
The Reserve Bank of India (RBI) has decided to use Gross Domestic Product (GDP) instead of Gross
Value Added (GVA) to measure economic activity in India.
RBI switches back to GDP model from GVA model to measure economy:
i.Viral Acharya, deputy governor of RBI said that, this change has been done to confirm with international
practice and for ease of comparison.
ii. Worldwide, the performance of economies is measured in terms of GDP. Multilateral institutions,
international analysts and investors also follow this approach.
iii. GVA gives the picture of the state of economic activity from the producers’ side or the supply side.
GDP provides the picture from the consumers’ side or the demand side.
iv. The Central Statistical Office has been employing GDP as the main tool to measure economic activity since
January 2015.
Tag lines of some banks:
♦ Allahabad Bank – A tradition of trust
♦ Bank of Baroda – India’s International Bank
♦ Bank of India – Relationship beyond Banking
Asian Development Bank Noted that Indian economy will grow by 7.3% in FY’18, 7.6% in FY’19
On 11th April 2018, the Asian Development Bank (ADB) stated that the Indian economy would expand
by 7.3 % in fiscal year (FY) 2018 and 7.6 % in the next fiscal year.
Indian economy will grow by 7.3% in FY’18, 7.6% in FY’19:
i. The Asian Development Bank (ADB) said that, this growth will be facilitated by various growth-oriented
policy measures.
ii.In ADB’s Asian Development Outlook (ADO) 2018 report, it stated that the reduction in growth to 6.6 % in
FY2017 was partially due to demonetization.
iii. Also, issues related to Goods and Services Tax (GST) disturbed operations of small and medium-sized
enterprises (SMEs) and exporters.
iv. ADO stated that, in the upcoming months, growth will improve with the support of various measures like
improving farmers’ purchasing power, higher procurement prices, agriculture market reforms, and
investments in irrigation and logistics.
v. It said that investment revival would continue, but at a modest rate. Also, ADB projected inflation to increase
up to 4.6 % in FY2018 and 5 % percent in FY2019 supported by further strengthening of global commodity
prices and domestic demand.
vi. It said that improved growth in advanced economies will help exports to improve in a healthy rate.
vii. Also, imports are expected to increase due to higher commodity prices and increase in domestic demand.
viii. The current account deficit would widen to 2.2 percent of GDP in FY2018 and 2.4 percent of GDP in
FY2019. It also said that, current account deficit is expected to be financed by capital flows.
About Asian Development Bank (ADB):
♦ President – Takehiko Nakao
♦ Headquarters – Metro Manila, Philippines
10 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
Former RBI deputy governor Harun Rasid Khan joins Bandhan Bank board
Former deputy governor at Reserve Bank of India (RBI), Harun Rasid Khan, has joined Bandhan Bank
11 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
board.
Harun Rasid Khan joins Bandhan Bank board:
i. Harun Rasid Khan joined the board of Bandhan Bank two weeks ago. He has replaced PK Saha in Bandhan
Bank board.
ii. He had headed RBI’s vision on payment system. He had handled financial market, foreign exchange, financial
inclusion, etc. in RBI. He served as deputy governor of RBI from 2011 to 2016.
Tag lines of few banks:
♦ Bank of India – Relationship beyond banking
♦ Bank of Maharashtra – Ek Parivar Ek Bank
♦ Canara Bank – Together we can
1 Hong Kong
2 Singapore
3 New Zealand
4 Switzerland
5 Australia
12 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
PNB launched new products such as pre-approved credit card and UPI solution to mark its
124th foundation day
On 13th April 2018, Punjab National Bank (PNB) launched new products like pre-approved credit card and UPI
solution to mark its 124th foundation day.
PNB launches new schemes to mark 124th foundation day:
i. PNB also announced its UPI partnership with WALNUT, an expense management app, that has features
like bill reminders, bill-split and instant paperless loans.
ii. PNB conducted blood donation camps in 200 blood donation centres in 76 circle offices covering more than
6,500 branches in all states and union territories.
iii. The camp was inaugurated at PNB head office in New Delhi by Sunil Mehta, MD and CEO of PNB
About Punjab National Bank (PNB):
♦ MD & CEO – Sunil Mehta
♦ Headquarters – New Delhi
Government raises NABARD’s authorised capital to Rs 300 billion to aid rural economy
The government has raised the authorised capital of NABARD (National Bank for Agriculture and Rural
Development) by 6 times to Rs 300 billion, aimed to increase its lending to the rural economy, as a part of
the initiative to double farmers’ income by 2022.
Government raises NABARD’s authorised capital to Rs 300 billion to aid rural economy:
i. A notification regarding this was released by the Finance Ministry on 10th April 2018. A bill in this regard was
approved by Parliament at the start of this year.
ii. The increased authorised capital will enable NABARD to perform the commitments it has undertaken,
especially with respect to Long Term Irrigation Fund and on-lending to cooperative banks.
iii. Also, it will help NABARD to expand its business and activities, resulting in promotion of integrated rural
development, prosperity of rural areas and generation of more employment.
About NABARD (National Bank for Agriculture and Rural Development):
♦ Set up – 1982
♦ Chairman – Dr. Harsh Kumar Bhanwala
Indian economy has recovered from impact of demonetisation, GST: World Bank Report
As per World Bank’s bi-annual South Asia Economic Focus report released on April 15, 2018, Indian
economy has recovered from the adverse impacts of demonetisation (in November 2016) and roll out of Goods
and Services Tax (in July 2017).
World Bank’s outlook on Indian Economy:
14 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
i. Owing to recovery from above stated events, Indian economy is projected to grow by 7.3% in 2018 and
7.5% in 2019.
ii. Indian recovery will again make South Asia region, the world’s fastest growing region.
iii. South Asian region as a whole is projected to grow at 6.9% in 2018 and 7.1% in 2019.
iv. However, the report cautioned that despite growth, India was not creating enough jobs. As per the
report, India must create 8.1 million jobs a year to maintain its employment rate.
Quick Facts about World Bank:
♦ Formed in – 1945
♦ Headquarters – Washington D.C., US
♦ Current President – Jim Yong Kim
Kotak Bank goes past SBI to become India’s 2nd most valuable lender
On April 16, 2018, market capitalisation of Kotak Mahindra Bank, for the first time surpassed that of State Bank
of India.
Market Valuation of Kotak Mahindra Bank:
i. Market value of a company’s outstanding shares is referred to as market capitalisation (m-cap). It is
calculated by multiplying the current market value of company’s share with total outstanding shares.
ii. At the end of the trading day on April 16, 2018, Kotak Mahindra Bank’s market capitalisation rose to Rs
2.23 lakh crore compared with SBI’s market cap of Rs 2.22 lakh crore.
iii.On account of this surge, Kotak Mahindra Bank has become the second-most valuable bank in India after
HDFC Bank.
iv. Among all Indian banks, HDFC Bank has the highest market capitalisation of Rs 5.03 lakh crore.
Quick Facts about Kotak Mahindra Bank:
♦ Granted Banking Licence in – 2003
♦ Headquarters – Mumbai, Maharashtra
♦ Founder, Executive Vice Chairman and MD – Uday Kotak
♦ Tagline – ‘Let’s make money simple’
ix. He also launched Darpan-PLI app that enables renewal of pension including premium collection and
indexing of maturity of claim.
About India Post Payments Bank (IPPB):
♦ MD & CEO – Suresh Sethi
♦ Headquarters of India Post – New Delhi
India claims top spot for 2018 growth among major economies: Reuters Poll
According to a Reuters poll of economists, India will reach the top position among the world’s fastest-
growing major economies in 2018, but increasing trade tensions between the United States and China
might hinder that growth.
India claims top spot for 2018 growth among major economies:
i. The recent tit-for-tat import tariffs introduced by the US and China have created concerns about a global
trade war. Otherwise a strong world economy could be developed.
ii. The recent poll was taken on 11th to 18th April 2018. It has predicted that India’s economy will expand
7.4 % in the fiscal year that began in April 2018.
iii. This is in line with the International Monetary Fund’s (IMF) projection. For the next fiscal year, growth is
expected to average 7.5 %, which is lower than the IMF’s forecast of 7.8 %.
iv. The slowdown has been attributed to demonetization introduced in November 2016 and introduction of
goods and services tax (GST) in July 2017. But the impact of these have reduced now.
iv. Increased government spending prior to national elections next year is expected to be inflationary.
v. Inflation is forecast to average 4.7 % in the fiscal year ending in March 2019, and 4.9 % the following
year, according to the poll.
vi. The Reserve Bank of India has been forecast to keep rates on hold until the second half of next year,
according to the poll.
vii. But economists expect a repo rate increase to the quarter ending September next year from a move in the
first three months of 2019.
Some important stadiums in India:
♦ Trivandrum International Stadium – Thiruvananthapuram, Kerala
♦ Jawaharlal Nehru Stadium – Kochi, Kerala
♦ Lal Bahadur Shastri Stadium – Kollam, Kerala
SBI India’s most trusted bank, ICICI tops in private sector: Report
As per Trust Research Advisory’s Brand Trust Report 2018, State Bank of India (SBI) is the most-trusted
bank (among both public and private sector banks) in India.
Brand perception of Major Indian Banks:
i. Among private sector banks, the list was topped by ICICI Bank. However, Brand Trust Report 2018 is
based on a survey that was carried out during November 2017 – January 2018 period and did not take into
account the recent reports of irregularities involving the ICICI Bank.
ii. Although SBI has topped the Banking and Financial Services Institutions (BFSI) super-category , its overall
brand trust index ranking has dropped from 13th in 2017 to 21st this year.
iii. Interestingly, out of the 1000 most trusted brands of India that have featured in Brand Trust Report
2018, 51 brands are from the BFSI as compared to 23 brands in 2017.
Quick Facts about State Bank of India (SBI):
♦ Renamed in – 1955
♦ Headquarters – Mumbai, Maharashtra
♦ Current Chairman – Rajnish Kumar
which, its customers will not be allowed to withdraw more than Rs. 1000 per deposit account.
Restrictions on City Co-operative Bank:
i. In addition to withdrawal restrictions, City Co-operative Bank would not be able to accept fresh deposits,
disburse loans, make any investment, or borrow funds without RBI approval.
ii. In context of this news, it is important to note that City Co-operative Bank’s net non-performing assets stood
at 8.84 per cent of advances.
iii. However, RBI has clarified that issue of the directions should not be construed as cancellation of banking
licence of City Co-operative Bank and it will continue to undertake banking business with restrictions till its
financial position improves.
Bhuj Mercantile Coop Bank bags Banco Award for best performing cooperative bank
Bhuj Mercantile Cooperative Bank has won the Banco Award for best performing cooperative bank.
Bhuj Mercantile Cooperative Bank – Banco Award for best performing cooperative bank:
i. Bhuj Mercantile Cooperative Bank received the Banco Award from Telangana Chief Minister K
Chandrashekhar Rao at an award ceremony held recently in Hyderabad.
ii. Bhuj Mercantile Cooperative Bank was selected as the best performing cooperative bank from 1500
cooperative banks in India.
iii. Also, Bhuj Mercantile Cooperative Bank ranked in the top in Gujarat for hi-tech technology
upgradation. It ranks third in the category at National level.
iv. Banco Award is presented every year to the top performing cooperative banks to recognise and encourage
best practices in the cooperative banking sector.
v. The banks for Banco Award were selected based on the bank’s audited accounts for past 3 years, deposit
growth, non-performing assets (NPA), net profit, customer service standards, ratings provided by RBI, staff
training, Core Banking Solution (CBS), use of latest technology, e-com and ATM facilities.
About Bhuj Mercantile Cooperative Bank:
♦ Chairman – Nilaben S Choksi
♦ Established – 1994
The first meeting of the BRICS Finance Ministers and Central Bank Governors
On 19th April 2018, the first meeting of the BRICS Finance Ministers and Central Bank Governors was
held in the sidelines of the IMF/World Bank Spring Meetings in Washington D.C., United States.
The first meeting of the BRICS Finance Ministers and Central Bank Governors:
i. Subhash Chandra Garg , Secretary , Department of Economic Affairs (EA) represented Ministry of
Finance, India, in the meeting.
ii. Major issues discussed in the meeting were related to:
21 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
improving the project pipelines of New Development Bank (NDB) evenly across member countries
expansion of NDB’s membership
proposal of South African Presidency for setting up a working group on illicit financial flows
BRICS Task Force on Public Private Partnership
issues related to BRICS Contingent Reserve Arrangement (CRA)
BRICS Bond Fund
About New Development Bank (NDB):
♦ President – K V Kamath
♦ Headquarters – Shanghai, China
22 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
Yes Bank got RBI’s nod to open two global representative offices
Mid-size private sector bank YES Bank has got approval from the Reserve Bank of India to open two
international representative offices – in London and Singapore.
Yes Bank’s global representative offices:
i. The two global representative offices in London and Singapore will primarily cater to the NRI (non resident
Indian) population and will also provide networking coverage for Yes Bank’s large investor community in these
regions.
ii. Offerings at these offices would include ‘Yes First’ and ‘Yes Private Wealth Management’ programme along
with Non-Resident External/ Non-Resident Ordinary (NRE/NRO) savings accounts and deposits and similar
services.
iii. Yes Bank started creating international presence in 2015, with opening of its first overseas office in
Abu Dhabi, UAE followed by IFSC Banking Unit (IBU) at GIFT City, Gandhinagar.
Quick Facts about Yes Bank:
♦ Founded in – 2004
♦ Headquarters – Mumbai, Maharashtra
♦ Current MD & CEO – Rana Kapoor
♦ Tagline – ‘Experience our Expertise’
PM Modi award for Manipur’s Karang – India’s first cashless island of the country
On April 22,2018, Prime Minister Narendra Modi honoured officials for making Manipur’s Karang the first
cashless island of the country, and implementing the Goods and Services Tax (GST) and other priority
initiatives of the Centre.
Karang – first cashless island of the country
i. Karang island, a remote and backward region. It was separated from the Bishnupur district. Incentives
were provided for training towards digital payments and five POS machines were installed on the island.
ii. Self-help groups and youth clubs were roped in for community mobilization and parallel activities were
conducted on the island for Aadhaar enrolment and opening of bank accounts.
iii. An online channel was launched to make people aware about digital payments. Due to this effort, 92 per
cent of the bank accounts were linked with mobile and 70 per cent of them were linked with Aadhaar.
Other honours/awards
i. Modi awarded civil servants for smooth implementation of four priority programmes — Pradhan Mantri
Fasal Bima Yojana, Pradhan Mantri Awas Yojana (Urban and Rural), Deen Dayal Upadhyaya Grameen
23 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
24 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
India’s growth expected to expand at 7.4 % in 2017-18: RBI Governor Urjit Patel
Reserve Bank of India (RBI) Governor Urjit Patel has stated that India’s Gross Domestic Product (GDP) is
expected to grow at 7.4% in 2018-19.
RBI Governor Urjit Patel’s Outlook on Indian Economy:
i. Mr. Patel gave this statement while addressing the International Monetary Finance Committee in Washington
D.C, US on April 21, 2018.
ii. He stated that global demand has been improving, which should encourage exports and boost fresh
investments in 2018-19.
iii. According to Mr. Urjit Patel, Gross fiscal deficit (GFD) of the Central Government is budgeted at 3.3 per
cent in 2018-19.
iv. He outlined that although GDP growth in 2017-18 moderated to 6.6 percent as compared to 7.1 percent in
2016-17, there was a strong rebound in the second half of 2017-18 on the back of a turnaround in investment
demand.
BoI inks pact with NeSL to share data under insolvency rules
On April 23, 2018, Bank of India (BoI) entered into an agreement with National e-Governance Services
Limited (NeSL) for utilizing its Information Utility Services envisaged under the Insolvency and Bankruptcy
Code, 2016.
More Details about BoI-NeSL tie-up:
i. State-owned NeSL is the first Information Utility entity registered with the Insolvency and Bankruptcy
Board of India (IBBI) under the aegis of the Insolvency and Bankruptcy Code, 2016.
ii. Information utility is an information network which procures and stores financial data like borrowings,
default and security interests of various entities. It enables lenders in making decisions on credit transactions.
iii. BoI will now avail NeSL service to expedite corporate insolvency resolution process.
World Bank group approves massive USD 13 billion increase in paid-in capital
On 21st April 2018, the World Bank Group approved USD 13 billion increase in paid-in capital, as part of a
series of internal reforms.
World Bank group approves massive USD 13 billion increase in paid-in capital:
i. The package approved by the Development Committee of the Board of Governors consists of USD 7.5 billion
paid-in capital for International Bank for Reconstruction and Development (IBRD) and USD 5.5 billion
paid-in capital for International Finance Commission (IFC), through both general and selective capital
increases.
ii. It also includes a USD 52.6 billion callable capital increase for the IBRD. The boost in capital will be
supported by various internal measures like operational changes and effectiveness reforms, loan pricing
measures, and other policy steps.
iii. Following this decision, the combined financing arms of the World Bank Group are expected to reach an
average annual capacity of nearly USD 100 billion between fiscal 2019 and fiscal 2030.
About World Bank:
♦ President – Jim Yong Kim
♦ Headquarters – Washington, D.C., U.S
ADB has agreed in principle to give an aid of 1700 crore rupees to Uttarakhand
Asian Development Bank (ADB) has agreed in principle to give an aid of Rs 1700 crore to Uttarakhand for
infrastructure development in its urban areas.
ADB aid to Uttarakhand:
i. Decision in this regard was conveyed to Uttarakhand Chief Minister Trivendra Singh Rawat by the country
director of ADB’s India Regiment Mission Kenichi Yokoyama at a meeting between the two in Dehradun on
April 28, 2018.
ii. Rs 1700 crore procured through ADB aid will be utilised for creation of infrastructural facilities,
sewer treatment plants and water supply facilities in urban areas of Uttarakhand.
iii. Besides, ADB can also initiate a reform programme to economically strengthen municipal corporations of
Uttarakhand which would enable them to efficiently manage the resources at their disposal.
Quick Facts about Asian Development Bank (ADB):
♦ Formation Year – 1966
♦ Headquarters – Manila, Philippines
♦ Current President – Takehiko Nakaho
26 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
Government of India and World Bank Signs Agreement to Improve Rural Road Network in Madhya
Pradesh
On 24th April 2018, Government of India, Government of Madhya Pradesh and World Bank signed a
$210 million loan agreement for the Madhya Pradesh Rural Connectivity Project.
$210 million loan agreement for the Madhya Pradesh Rural Connectivity Project:
i. The Project would enhance the durability, resilience and safety of the gravel surfaced rural roads and
improve the capacity of Madhya Pradesh to manage its rural roads network.
ii. The Project will cover 10,510 km distance of rural roads in Madhya Pradesh that come under the Chief
Minister’s Gram Sadak Yojana (CMGSY) program.
iii. Out of this 10,000 km will be upgraded from existing gravel to bituminous surface roads. 510 km of new
roads will be built to the bituminous surface standard.
iv. This project will carry out surface sealing of roads, embankment pitching, and balancing culverts to prevent
damages caused by extreme flood events.
v. Alternate sealing options for road construction like polymer modified asphalt, asphalt blended with plastic
waste, and multiple surface treatment will be piloted in 20 percent of the length. It will be cost-effective and
also reduce the carbon footprint of the transport sector.
vi. This project will involve women self-help groups (SHG) in the post construction maintenance activity. They
will carry out routine maintenance of off-carriage way parts of the road.
vii. Main carriageway maintenance will be done by the original contractor. A direct maintenance contract will
be formed between the SHG group and MPRRDA (Madhya Pradesh Rural Road Development Authority) for 3-5
years.
viii. The project will implement Road Accident Database Management System (RADMS). Madhya Pradesh
will pilot a comprehensive Road Safety Program (PCRSP) in districts with the most fatal and serious injuries
observed in the past.
About Madhya Pradesh Rural Connectivity Project (MPRCP):
♦ Chief General Manager – Pankaj Jhawar
♦ Project Implementing Agency of MPRCP – Madhya Pradesh Rural Road Development Authority (MPRRDA)
Electoral Bond Scheme 2018: Sale of Electoral Bonds at Authorised Branches of State Bank of India
(SBI)
In the 3rd phase of sale, State Bank of India (SBI) has been authorised to issue and encash Electoral
Bonds through its 11 Authorised Branches with effect from 01.05.2018 to 10.05.2018.
Sale of Electoral Bonds at Authorised Branches of SBI:
i. Government of India notified the Electoral Bond Scheme 2018 as on Gazette Notification No. 20 dated
2nd January 2018.
ii. Electoral Bond Scheme 2018 states that, Electoral Bonds can be purchased by a person, who is a citizen
of India or incorporated or established in India.
iii. A person can buy Electoral Bonds, either singly or jointly with other individuals.
iv. Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951
(43 of 1951) and those that have secured not less than 1 % of the votes polled in the last General Election to
the House of the People or the Legislative Assembly of the State are eligible to receive the Electoral Bonds.
iv. The Electoral Bonds can be encashed by eligible Political Parties only through a Bank account with the
Authorized Bank.
v. Electoral Bonds are valid for fifteen days from the date of issue. If the Electoral Bond is deposited after
expiry, payment will not be made to any payee Political Party.
v. Electoral Bond deposited by an eligible Political Party in its account will be credited on the same day.
About State Bank of India (SBI):
♦ Chairman – Rajnish Kumar
♦ Headquarters – Mumbai
27 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
India – World Bank sign $125 million agreement for “Innovate in India for Inclusiveness Project”
On April 24, 2018, India signed a loan agreement with World Bank for IBRD credit of $125million for the
“Innovate in India for Inclusiveness Project”. International Bank for Reconstruction and Development (IBRD) is
a member institution of World Bank Group.
More information about “Innovate in India for Inclusiveness Project”:
i. Objective of “Innovate in India for Inclusiveness Project” is to encourage indigenous innovation,
facilitate local product development and accelerate commercialization process in the sphere of
affordable and innovative healthcare products.
ii. The project would support public, private and the academic institutions to overcome the key market failures
by bridging critical skill and infrastructure gaps and thereby nurture an innovative biopharmaceutical and
medical devices industry in India.
iii. Term of IBRD $125 million credit will be 19 years with a grace period of 5 years.
Quick Facts about World Bank:
♦ Formed in – 1945
♦ Headquarters – Washington D.C., US
♦ Current President – Jim Yong Kim
NSE launches e – Gsec platform for bringing retail participation in Govt. Securities
On April 24, 2018, The National Stock Exchange (NSE) announced the launch of its e-Gsec platform which will
allow retail investors to invest in government securities.
Salient features of NSE’s e-Gsec platform:
i. Government issues securities in order to borrow money from the market.
ii. Government Securities are offered to investors through competitive and non-competitive auctions.
iii. Auction is held by Reserve Bank of India (RBI) on weekly basis, wherein large investors viz. banks,
primary dealers, financial institutions, mutual funds, insurance companies participate in the competitive
auctions by placing bids directly with Reserve Bank of India (RBI).
iv. In the weekly auctions, 5 per cent of the notified amount is allotted for eligible investors under the
scheme for non-competitive bidding facility.
v. Through NSE’s e-Gsec platform, the retail investors will now be able to participate in the next weekly auction
which is scheduled on April 26, 2018.
28 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
vi. Allowing retail participation in G-Sec auctions through stock exchanges was first announced in Union budget
2016-17.
Quick Facts about NSE:
♦ Began Operations in – 1994
♦ Located in – Mumbai, Maharashtra
♦ Current Managing Director and CEO – Vikram Limaye
India’s average GDP growth to rise to 7.8 pc in first half of this year: Report
According to the Japanese financial services major Nomura, India’s average Gross Domestic Product (GDP)
growth is expected to rise to 7.8 per cent in the first half of 2018.
Outlook of Indian Economy – Nomura:
i. As per Nomura, GDP growth of 7.8 per cent in first half of 2018 will come on back of increase in
investments as well as consumption demand.
ii. However, rising oil prices, tighter financial conditions and a likely slowdown in investment activity ahead of
the elections have been identified as factors that may lead to moderation in growth for the second half.
iii. On account of these factors, growth for Q4-2018 is forecasted at 6.9 per cent.
iv. Further, Nomura has cautioned that rising oil prices may have a direct bearing on Consumer Price Index
(CPI) inflation, wherein every USD 10/bbl rise in oil prices will spike the CPI inflation by 30-40 bps and
would worsen the current account balance by 0.4 percentage points.
Quick Facts about Nomura Group:
♦ Founded in – 1925
♦ Headquarters – Tokyo, Japan
Govt. of India and World Bank sign legal agreement on National Biopharma Mission
On April 24, 2018, Government of India signed a Legal Agreement with World Bank for flexible financing
arrangements for National Biopharma Mission (NBM).
About NBM and Legal Agreement with World Bank:
i. National Biopharmaceutical Mission is the first ever Industry-Academia mission to accelerate
biopharmaceutical development in India. This programme has been named Innovate in India (i3).
ii. It is a $250 million dollar initiative that includes a $125 million loan from the World Bank.
iii. Objective of this programme is to make India a hub for design and development of novel, affordable and
effective biopharmaceutical products.
iv. The thrust areas for the mission are vaccine development, biotherapeutics, diagnostics and development of
medical devices.
v. The mission will be implemented by Biotechnology Industry Research Assistance Council (BIRAC), a
Public Sector Undertaking of Department of Biotechnology, Union Ministry of Science & Technology.
vi. On April 24, 2018, a Legal Agreement for flexible financing arrangements for this NBM was signed between
BIRAC, Department of Economic Affairs under Union Ministry of Finance and International Bank for
Reconstruction and Development (a member institution of World Bank Group).
Quick Facts about World Bank:
♦ Formed in – 1945
♦ Headquarters – Washington D.C., US
♦ Current President – Jim Yong Kim
30 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
31 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
32 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
33 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
French bank Societe Generale is exiting Central and Eastern Europe and has announced it will close
offices in Bulgaria
Societe Generale is withdrawing its business from Central and Eastern Europe and has announced that it will
close offices in Bulgaria.
Societe Generale is exiting Central and Eastern Europe:
i. Societe Generale has decided to focus on other parts of their business and quit from their business in Central
and Eastern Europe.
ii. The bank in Bulgaria is sold in a package with five other divisions in Albania, Macedonia, Montenegro, Serbia
and Moldova.
About Societe Generale:
♦ CEO - Frederic Oudea
♦ Founded – 1864
34 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
The Reserve Bank of India (RBI) has deferred adoption of Indian Accounting Standards
On 5th April 2018, the Reserve Bank of India (RBI) deferred the implementation of the Indian
Accounting Standards (Ind AS) by one year since many banks are not yet prepared to adopt the new
accounting system.
The Reserve Bank of India (RBI) has deferred adoption of Indian Accounting Standards:
i. Earlier, the deadline for banks to move to the Ind AS was declared as April 1 2018. The announcement
was made by RBI deputy governor NS Vishwanathan.
ii. He said that the format of the financial statements stated in the Third Schedule of the Banking Regulation Act
is not amenable for reporting financial statements under Ind AS.
iii. He said that, they have requested the government to amend the Schedule and it is under consideration.
iv. He said that, RBI will continue to have the proforma of financial statements from banks to overview the
progress made towards adopting Ind-AS.
Some important museums in Bihar:
♦ Maharaja Lakshmeshwar Singh Museum – Darbhanga
♦ Chandra Shekhar Singh Museum – Jamui
♦ Rajendra Smriti Sangrahalaya (Rajendra Memorial Museum) - Patna
35 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
Post office savings account customers can soon avail full digital banking service
Post office savings account holders will be able to avail a full-fledged digital banking service from May
2018 since the government has approved linking such accounts with that of India Post Payments Bank
(IPPB).
Post office savings account holders to avail digital banking service from May 2018:
i. The finance ministry has approved linking of savings bank accounts at post offices with IPPB accounts. Hence,
post office account holders can transfer money from their account to any bank account.
ii. Nearly 34 crore post office savings account holders will be able to avail the full-fledged digital banking
service from May 2018.
iii. Out of the 34 crore savings accounts 17 crore are post office savings bank accounts and remaining are those
subscribed monthly income scheme, recurring deposits etc.
iv. This move also leads to creation of India's largest banking network as India Post has planned to link all 1.55
lakh post office branches with the IPPB.
v. India Post has started core banking service. But it provides money transfer service within post office
savings bank (POSB) accounts.
vi. IPPB customers can utilise NEFT, RTGS and other money transfer services. After POSB accounts are linked
with IPPB, customers can use all money transfer service like other banks.
36 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
vii. By May 2018, POSB account customers will be given an option by India Post to avail this facility.
About IPPB (India Post Payments Bank):
♦ Governed by - Reserve Bank of India
♦ MD & CEO - Suresh Sethi
38 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
39 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
i. SEBI has said in its order that, Jagdish T Jain, a former whole time director of Refex Industries, was associated
with the company during the six-month period before trading in the scrip that is on July 1, 2, 8 and 9, 2015.
ii. As Jagdish T Jain was an insider of the company, SEBI said that he was in possession of UPSI (unpublished
price sensitive information) while performing trade in the scrip of the company and has violated PIT
(Prohibition of Insider Trading) Regulations.
iii. SEBI has imposed a penalty of Rs 15 lakh on Jagdish T Jain for this violation. SEBI had conducted an
investigation in the scrip of Refex Industries during the period from July 1 to July 23, 2015.
About SEBI (Securities and Exchange Board of India):
♦ Chairman - Ajay Tyagi
♦ Headquarters - Mumbai
40 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
41 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
more than two months after TS Vijayan’s tenure came to an end on February 21, 2018.
Quick Facts about IRDAI:
♦ Founded in – 1999
♦ Headquarters – Hyderabad
Cabinet approves new terminal buildings at Guwahati, Chennai and Lucknow airports
On 2nd May 2018, the Cabinet Committee on Economic Affairs (CCEA) approved upgradation and expansion of
airport infrastructure at Lucknow, Chennai and Guwahati airports with a total cost of over Rs 5,000 crore.
New terminal buildings at Guwahati, Chennai and Lucknow airports:
i. Union commerce and industry minister, Suresh Prabhu, said that, Chennai Airport’s new terminal building
will have a capacity of 35 million passengers per year. It will be constructed at a cost of Rs 2467 crore.
ii. The new terminal building of Guwahati Airport will have a capacity of 9 million passengers per year. It will be
built at a cost of Rs 1383 Crore.
iii. The new terminal building of Lucknow Airport will have a capacity of 13.6 million passengers per year. It will
be constructed at a cost of Rs 1232 Crore.
Some important International airports in India:
♦ Hyderabad – Rajiv Gandhi International Airport
♦ Lucknow – Chaudhary Charan Singh International Airport
♦ Varanasi – Lal Bahadur Shastri Airport
In a bid to help sugar mills to clear cane dues of farmers, CCEA has given its approval to provide financial
assistance @ of Rs. 5.50 per quintal of cane crushed in sugar season 2017-18 to sugar mills to offset the cost
of cane.
• Financial assistance shall be paid directly to the farmers on behalf of the mills.
• This benefit will be given only to those mills which fulfil the eligibility conditions as decided by the
Government.
• On account of high sugar production vis-à-vis consumption, sugar prices have remained depressed
since the beginning of current sugar season 2017-18.
• Surplus holdings have negatively affected the liquidity position of sugar mills which has in turn
lead to accumulation of cane price dues of farmers.
• Sugar mill dues to farmers currently stands at a staggering Rs.19000 crore.
42 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
• Financial assistance along with other measures will thereby provide relief to farmers.
CCEA has approved the proposal for renaming and restructuring of Multi-sectoral Development Programme
(MsDP) as Pradhan Mantri Jan Vikas Karyakram (PMJVK).
• PMJVK, which has more flexibility as compared to MsDP would provide better socio economic
infrastructure facilities to the minority communities particularly in the field of education, health & skill
development as compared to the present situation.
• Under PMJVK, criteria for identification of Minority Concentration Towns and Clusters of Villages
have been rationalized.
• In addition to restructuring and renaming MsDP, CCEA has also approved its continuation during the
remaining period of 14thFinance Commission at the cost of Rs. 3972 crore.
CCEA has given its approval for the Umbrella Scheme, “Green Revolution – Krishonnati Yojana” in agriculture
sector beyond 12th Five Year Plan for the period from 2017-18 to 2019-20.
• “Green Revolution – Krishonnati Yojana” is geared towards developing the agriculture and allied sector in a
holistic and scientific manner to increase the income of farmers by enhancing production, productivity and
helping them to get better returns on produce.
• CCEA has approved its continuation for three financial years, i.e., 2017-18, 2018-19 and 2019-20 at
expenditure of Rs.33269.976 crore.
• 11 schemes that are the constituents of Umbrella Scheme are: Mission for Integrated Development of
Horticulture (MIDH), National Food Security Mission (NFSM), National Mission for Sustainable Agriculture
(NMSA), Submission on Agriculture Extension (SMAE), Sub-Mission on Seeds and Planting Material
(SMSP), Sub-Mission on Agricultural Mechanisation (SMAM), Sub Mission on Plant Protection and Plan
Quarantine (SMPPQ), Integrated Scheme on Agriculture Census, Economics and Statistics (ISACES),
Integrated Scheme on Agricultural Cooperation (ISAC), Integrated Scheme on Agricultural Marketing
(ISAM), National e-Governance Plan (NeGP-A).
27th GST council meeting discusses change in GST rate for digital transactions
27th meeting of the Goods and Services Tax (GST), chaired by Finance Minister Arun Jaitley was held on May 4,
2018.
Issues discusses at 27th GST council meeting:
i. With a view to incentivise promotion of digital payments, a proposal of a concession of 2% in GST rate on
B2C supplies (for which payment is made through cheque or digital mode, subject to a ceiling of Rs. 100
per transaction) was discussed.
ii. A Group of Ministers from State Governments will be setup to look into this proposal and make
recommendations, before the next GST Council meeting.
iii. It was discussed to impose a sugar cess of maximum Rs 3 on each kg sold by sugar companies, over and
above the 5% GST charged on sugar. This move is expected to raise Rs 1540 crore which can be paid to cane
farmers on behalf of mills.
iv. A Group of Ministers from State Governments will be setup to look into this proposal as well and make
recommendations within two weeks.
43 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
1 United States
2 Canada
3 Germany
4 United Kingdom
5 China
Signing of Legal Agreements between Govt. of India and World Bank on National Biopharma Mission
To develop an innovative biopharmaceutical and medical devices industry in India, Government of India and
the World Bank signed an agreement. The aim is to make India a hub for design and development of novel,
affordable and effective biopharmaceutical products.
i. The agreement has signed at a cost of USD 250 million for five years with 50 per cent funding through the
World Bank Loan.
ii. The agreement for the Project was signed by Sameer Kumar Khare, Joint Secretary, Department of Economic
Affairs, Ministry of Finance, on behalf of the Government of India; Mohd. Aslam, Managing Director, Biotechnology
Industry Research Assistance Council (BIRAC); and Hisham Abdo, Acting Country Director, World Bank India, on
behalf of the World Bank.
44 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
iii. It will also encourage to develop promote industry-academia interface and enable start-ups and small and
medium enterprises to build innovation research capacities for developing affordable healthcare products.
India tops list of fastest growing economies for coming decade: Harvard study
The Centre for International Development at Harvard University Predicted the Fastest growing economies in the
world for the Upcoming Decade.The Growth projections are based on some of the economic Complexity.India
Topped the list with the Projection of 7.9 Per cent which is far high than China (4.9 Per cent),U.S.(3 Per
cent),France (3.5 Per cent).Uganda is in Second Position with predicted growth of 7.5 percent.
Top Fastest Growing Countries are:
1.India(1st Place)
2.Uganda(2nd Place)
3.Tanzania(4th Place)
4.Kenya(10th Place)
Reason Behind India’s Growth:
India Topped the list because it made tremendous growth in Various Sectors Namely,Chemicals,Vehicles & Certain
Electronics Sectors.And the Report also Stated that India ranks the best in Complexity Opportunity
Index(COI),which measures the redeployment of the related products that depends on the Capabilities.
The Countries which has Low growth Prospects:
1.Bangladesh,
2.Venezuela,
3.Angola
The Countries which has fast growth Prospects are:
1.Philippines
2.Vietnam
3.Indonesia
4.Thailand
ADB projects India’s growth at 7.3% in 2018 at the 51st ADB Annual Meeting
51st Asian Development Bank( ADB) Annual Meeting was Presided by ADB President Takehiko Nakao.While
Adressing the Ceremony of the 51st Meeting,Nakao Said that India’s growth is Projected to be 7.3 Percent in Fiscal
Year 2018 & 7.6 Per cent in the next Fiscal,which is far higher than its 6.6 Percent in FiscalYear 2017.
Reason Behind India’s Growth:
ADB’s Chief Economist Yasuyuki Sawada said that the India’s Growth in 2017 is low because the Introduction of
Demonetisation.And he Further Continues that the growth Projection of India is high from the Previous year is
because of the Implementation of GST,Foreign Direct Investment also helps in India’s growth & the Most Important
Factor which boost the growth is the Governments Initiative of Ease of Doing Business.
Growth of Other Countries:
1.China-6.6 Percent
2.Association of Southeast Asian Nations(ASEAN)-5.2 Percent
Secretary, DEA meets president of ADB, Mr. Takehiko Nakao; attends 12th informal meeting of SAARC
finance Ministers
On May 5, 2018 Shri Subhash Chandra Garg, Secretary, Department of Economic Affairs, Ministry of Finance
met President of Asian Development Bank (ADB), Mr. Takehiko Nakao during a tour to Manila to attend the
51st Annual Meeting of Asian Development Bank (ADB).
i. He requested him to support India’s endeavor and to expand ADB’s sovereign and non-sovereign operations in
India by providing financial assistance worth $ 4 billion a year.
ii. Government of India had approved the proposal of ADB to acquire additional resources through INR bonds in
the offshore markets.
iii. He also attended the 12th informal meeting of SAARC Finance Ministers and highlighted the ongoing reforms in
45 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
India .He has highlighted the need for increased private sector operations by ADB in India.
About South Asian Association for Regional Cooperation (SAARC)
The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization
and geopolitical union of nations in South Asia. Its member states include Afghanistan, Bangladesh, Bhutan, India,
Nepal, the Maldives, Pakistan and Sri Lanka.
♦ Establishment: 8 December 1985
♦ Headquarters: Kathmandu
46 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
India signs 200 million US Dollar Loan Deal with World Bank for National Nutrition Mission (POSHAN
Abhiyaan) for 315 districts across all states/UTs
On 7th May 2018, Government of India signed a loan deal worth $ 200 million with the World Bank for the
National Nutrition Mission (POSHAN Abhiyaan).
India signs 200 million US Dollar Loan Deal with World Bank for National Nutrition Mission (POSHAN
Abhiyaan):
i. This loan will help India to reach its goal of reducing stunting in children of the age 0-6 years from 38.4% to 25%
by 2022.
ii. The POSHAN (PM’s Overarching Scheme for Holistic Nourishment) Abhiyaan was launched by Prime
Minister on 8th March 2018 at Jhunjhunu, Rajasthan.
iii. POSHAN Abhiyaan’s main objective is gradual increase of the interventions supported by the World Bank
assisted Integrated Child Development Services (ICDS) Systems Strengthening and Nutrition Improvement Project
(ISSNIP) to all districts in India for a 3-year period.
iv. This loan will support the first phase scale up to 315 districts and union territories (UTs) in India.
v. The coverage and quality of ICDS nutrition services for pregnant and lactating women and children under 3
years of age will be improved.
vi. The project will comprise investments in improving the skills and capacities of ICDS staff and community
nutrition workers, developing mechanisms of community mobilization and behavior change communication,
improving systems of citizen engagement and grievance redress and setting up mobile technology based tools for
better monitoring and management of services for enhanced reach to beneficiaries during the critical 1,000 day
window for nutrition impact.
vii. The project will also ensure convergence of all nutrition related schemes and offer performance based
incentives to states and community nutrition and health workers, with focus on results.
47 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
Finance and Policy (NIPFP), Sajjid Chinoy – Chief India Economist at JP Morgan and Neelkanth Mishra – Managing
Director and the Credit Suisse India Economist and Strategist.
48 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
iii. The programme will be launched during the current year in Haryana and Rajasthan.
iv. Initially it will be launched in 15 districts (eight districts in Haryana and seven in Rajasthan).
v. It will benefit 10,900 farmers. Digital methodology will be used to train farmers.
About YES Bank:
♦ MD & CEO – Rana Kapoor
♦ Headquarters – Mumbai
Par panel to look into black money and performance of public sector banks
i. On 10th May 2018, a parliamentary panel of 30 membersestimate Committeealso known as Continuous
Economy committee has been constituted by the speaker of parliament . Veteran BJP leader Mr.MuraliManohar
Joshi has been appointed as the chairman of this committee.
ii. This committee will focus on the black money and the unaccounted money that was legaitimised during the
demonetization period as per RBI’s report. Also it will look into the performance of public sector bank, import
of uranium ,preparedness of Indian armed forces, environment and mining activities, among other things
related to various ministries in the year 2018-2019.
49 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
Key points:
♦ Chairperson of Public Accounts Committee: Mr. MallikarjunKharge.
♦ 24 th Governor of RBI :Mr. Urjit Patel
♦ Speaker of Parliament : Mrs. SumitraMahajan.
RBI restricts Dena Bank from taking fresh credit exposure and Hiring
Dena Bank has announced that Reserve Bank of India has restricted it from taking fresh credit exposure and
recruiting new staff.
Restrictions on Dena Bank:
i. It is to be noted that RBI initiated prompt corrective action against Dena Bank and imposed certain
restrictions in May 2017 owing to high net non performing assets (NPA) and negative Return on Assets.
ii. The fresh restriction has been imposed in wake of deteriorated financial performancefor the 4th quarter
of 2017-18. For fourth quarter ended March 31, 2018, Dena Bank reported a net loss of Rs 1225 crore, which is
much wider than the net loss of Rs 575 crore recorded in the same quarter last year.
iii. In addition to this, for the financial year 2017-18, Dena Bank recorded a net loss of Rs 1924 crore marking a
third consecutive year of net loss.
Quick Facts about Dena Bank:
♦ Founded in – 1938
♦ Headquarters – Mumbai, Maharashtra
♦ Current Executive Director – Ramesh Singh
♦ Tagline – Trusted Family Bank
50 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
♦ Founded in – 1984
♦ Headquarters – Beijing, China
YES Bank launches Agenda 25×25 for budding women entrepreneurs in India
Private sector bank, Yes Bank and its think tank YES Global Institute have launched ‘Agenda 25×25’, aimed at
creating a synergetic startup environment for budding women entrepreneurs in India.
51 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
52 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
BSE becomes first Indian stock exchange to get US SEC’s DOSM recognition
Bombay Stock Exchange (BSE) has become the first Indian exchange to be recognised as a designated offshore
securities market (DOSM) by the U.S. Securities and Exchange Commission (SEC).
i. The DOSM status eases the trades by U.S. investors in India as it allows sale of securities to U.S. investors
through the trading venue of BSE without registration of such securities with the U.S. SEC.
ii. In addition this, DOSM recognition also enhances the attractiveness of Indian Depository Receipts (IDRs)
amongst US investors.
iii. Few exchanges across the world that have the DOSM recognition are London Stock Exchange, Bourse de
Luxembourg, Tokyo Stock Exchange and Toronto Stock Exchange.
54 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
• Global Wealth Migration Review provides insights on worldwide wealth and wealth migration trends over
the past 10 years (up to the end of 2017), with projections for the next 10 years.
• India emerged as the “Best Performing Wealth Markets” registering 25% growth in total wealth for
the year 2017.
• The report has projected that India will overtake Germany and the UK to become the 4th largest wealth
market worldwide by 2027, mainly on account of large number of entrepreneurs, robust outlook for
Information Technology, business process outsourcing, good educational system, real estate, healthcare
and media sectors.
• With a total wealth of $62,584 billion, United States of America is the richest nation globally.
• Global wealth rose to USD 215 trillion at the end of 2017, marking a 12% growth as compared to USD
192 trillion at the end of 2016.
• Globally, there are around 15.2 million High-net-worth individuals (HNWIs), each with net assets of $1
million or more.
• As per the report, global wealth will reach $321 trillion by 2027 and Sri Lanka, India, Vietnam, China,
Mauritius are expected to be the fastest growing wealth markets for the next decade.
1 US $62,584 billion
ii. The Central Statistics Office (CSO) will release the GDP estimate for the fourth quarter (Q4) of fiscal 2017-18
and provisional annual estimates for the year 2017-18 on 31st May 2018.
i. This agreement is for pledge financeunder the repository ecosystem for registered / accredited warehouses.
ii. The new ecosystem will boost confidence among bankers and other stakeholders like depositors and warehouse
service providers.
iii. This will also provide various features to its stakeholders such as seamless transfer of ownership of
commodity by the depositors, splitting of warehouse receipt by the depositors, real time and ease of access
of information by the banks that will help them reduce their TAT in processing the loans and marking the pledge
on the commodity.
iv. BOB becomes the firstpublic sector bank to become the repository participant.
Central Depository Services (CDSL) :
♦ Headquarters – Mumbai, India.
ii. These appointments have been done on recommendations for the Banks Board Bureau (BBB).
iii. The appointments are : Charan Singh as chairperson of Punjab and Sindh Bank, Anjali Bansal as
Chairperson of Dena Bank and Tapan Ray as chairperson of Central Bank of India.
iv. Charan Singh has served at IMF as senior economist and at Reserve Bank of India as director.
v. Anjali Bansal is founder of Spencer Stuart’s India and had worked with McKinsey and Company
vi. Tapan Ray has served as Secretaryin the Ministry of Corporate Affairs.
♦ Dena Bank :
Tagline : Trusted Family Bank .
♦ Punjab & Sindh Bank:
Tagline: Where Service is a way of Life .
♦ Central Bank of India:
Tagline: Central to you since 1911.
ICICI Bank to start an innovation lab for better digital banking experience.
On May 26,2018, the Mumbai Headquartered ICICI bank launched its innovation lab for digital business. This
team is headed by former Chief Technology Officer (CTO) Mr. Rohan Angrish at small business lender Fintech
Capital Float.
Objective of the initiative:
To create technology from scratch and help better digital business.
Salient Features of the Initiative:
i. The innovation fund for this project with partnered concerns is : Rs. 100 crore.
ii. Innovation in areas like : digital small ticket personal loans, ‘one cycle’credit loans (allowing the user to
60 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
Boards of Max Financial Services and Max Life Insurance announced Sachil Vachani as the new Director
On May 26,2018, The boards of Max Financial Services and Max Life Insurance appointed Mr. Sachil Vachani
as the Director.
Key points
i. He started his career as a banker with Citigroup in London . In 2004 he joined Dixon Technologies as business
head.
ii. He has joined as the representative of owner group to create a powerful real estate brand –Max Estates.
iii. He has successfully worked on sale of 22.5% stake of Max Ventures to New York Life Insurance Company in
2017 and a joint venture of Max ventures with Japans’ Toppan printing company ltd.
15th Finance Commission to visit to Kerela from 28th to 31st May 2018
From May 28- 31st , the 15th Finance Commission wiil be visiting Kerela .
Kerala is the first state in Southern India to be visited by the Commission.
Objective:
To assess the state of finance of Kerela and progress of the state in the socio-economic sector.
Key points:
i. The commission was led by Chairman N.k. Singh.
ii. Kerela is the 10thlargest state that contributes to 4.2% of GDP of the nation. It has the highest per capita
income. The state has a booming service sector.
iii. Emigratioon and Immigration remittances is huge in kerela.
iv. In terms of development indicators like per capita income , poverty ratio, health and education kerela has
better points than national average.
v. social sector spending for the senior age group (>60 years) is of some concern as the life expectancy is
increased.
vi. Kerela’s literacy level is 94%that is highest among all the states.
vii. More discussions are to be made on the developments with the CM , finance department, various political
parties and the rural and urban local self governments and Panchayati Raj institutions .
Kerela :
♦ Capital – Thiruvananthapuram
♦ Chief Minister – Pinarayi Vijayan.
vi. It has a surplus of Rs.200 billion with an interest income of Rs.16 billion per annum.
vii. The cut in charges won’t effect the EPFO as their subscriber base increases a lot.
viii. Presently it has 500 million subscribers and a corpus of Rs. 10 trillion .
About EPFO:
♦ It is under the Ministry of Labour . Constituted in 1952.
RBI allows Rupee Co-op Bank to continue banking services under restriction till August 31,2018
On May 28,2018, the Central Bank of India, Reserve Bank of India (RBI) has instructed the Rupee Co-op
Bank of Pune to continue its banking services keeping the limitations in mind.
Key points:
i. Restriction were first imposed on February 22 ,2103 to August 2013 and that was extended 8 times till May
2018.
ii. RBI has further extended the restrictions for further 3 months till August 31 2018.
About Rupee Co-op Bank:
It is headquartered in Pune Maharashtra. It has 40 offices / branches across the state.
India signs Loan Agreement with the World Bank for USD 21.7 Million for Strengthening the Public
Financial Management in Rajasthan Project
On 29th May 2018, an agreement for IBRD Credit of USD 21.7 Million from World Bank for the Strengthening of
Public Financial Management in Rajasthan Project was signed in New Delhi.
India signs Loan Agreement with the World Bank:
i. The agreement was signed by Sameer Kumar Khare, Joint Secretary (FB and ADB), Department of Economic
Affairs, Ministry of Finance on behalf of Indian Government and Mr. Hisham Abdo, Acting Country Director, World
Bank (India) on behalf of the World Bank.
ii. The Implementing Entity Agreement was signed by the Secretary, Finance (Budget) on behalf of Rajasthan
Government, and the Acting Country Director (India) on behalf of the World Bank.
iii. Project size: is nearly USD 31 million. Out of this USD 21.7 million will be funded by the World Bank. Rest of
the amount will be funded-out of the State Budget.
iv. Duration of this project: is 5 years. The objective of this project is to contribute to enhanced Budget
execution, better accountability and improved efficiency in Revenue Administration in Rajasthan.
v. This Project also involves Strengthening of the Public Financial Management Framework, Strengthening of
Expenditure and Revenue Systems, and Project Management and Capacity Building etc.
About World Bank:
♦ President – Jim Yong Kim
♦ Headquarters – Washington, D.C., U.S.
iv. Term deposits with 2-3 years with fetch 6.65% from 6.60% form earlier.
v. For Senior citizens the term deposits of 1-2 years will be fetching 7.15%from 6.9%.
vi. FDs of 2-3 years will be getting interest rate of 7.15%.
vii. These rates are for the amount less than 1 crore.
viii. For bulk amounts of between 1 crore and 10 crore , 1-2 year deposits will get 7 % and for senior citizens it
is 7.5% . The rates are same for amount greater than 10 crore.
About Interest Rates:
An increase in deposit rates results in higher lending rates as well as the marginal cost lending rate (MCLR) is
linked to the cost of funds.
ICICI Bank has appointed M D Mallya, former Bank of Baroda boss as an additional independent director of
the bank
On 29th May 2018, the ICICI Bank board appointed former Bank of Baroda (BoB) chief M D Mallya as
an additional (independent) directorfor a period of 5 years.
M D Mallya – additional independent director of ICICI Bank:
i. M D Mallya’s appointment is subject to the approval of shareholders. His appointment comes a month before the
ICICI bank’s chairman M K Sharma completes his term.
ii. Before joining BoB, M D Mallya was the chairman of Bank of Maharashtra. He is 65 years old.
iii. He joined Corporation Bank in August 1976. He also served as executive director of Oriental Bank of Commerce
(OBC). He was also the chairman of the Indian Banks Association.
About Bank of Baroda:
♦ MD & CEO – P. S. Jayakumar
♦ Headquarters – Vadodara, Gujarat.
USD 500 Mn additional financing assistance given to the Indian govt by World Bank for PMGSY Rural Roads
Project
On May 31,2018, Indian Government has signed a loan agreement with the International Bank of
Reconstruction and Development (IBRD) an arm of World Bank , of $500 million.
Key points:
i. This loan has a grace period of 3 years and a maturity period of 10 years.
ii. The loan agreement for the project was signed by Sameer Kumar Khare, joint secretary, Department of
Economic Affairs, Ministry of Finance, on behalf of the government of India and Junaid Ahmad, country
director, World Bank India, on behalf of the World Bank in the presence of Alka Upadhyaya, joint secretary
(RC), Ministry of Rural Development.
iii. The financing would help in bringing new construction technology like green and low carbon design and
climate resilient techniques.
iv. For adequate maintenance of existing 4.6 million km of road networks.
63 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
ADB granted financial assistance of $375 mn project for irrigation boost in Madhya Pradesh
On May 31,2018, Asian Development Bank approved $375 million loan in Madhya Pradesh.
Objective:
For a project to improve irrigation in Madhya Pradesh and help increase farmer’s income.
Salient Features:
i. The project will expand irrigation networks and system efficiency.
ii. The total cost of the project is $535.1 million and $160.71 million will be given by the government.
iii. The estimated time of completion of the project is September 2025.
iv. In the first stage , the Kundalia irrigation project will develop 125000 hectare of new , efficient, Climate
resilient irrigation networks.
v. with this project the state will double the irrigated to 2 million hectares land by 2025.
vi. It will help farmers adopt micro-irrigation strategies and overall will help 838,000 people of 419 villages.
Madhya Pradesh:
♦ Capital – Bhopal
♦ Chief Minister – Shivraj Singh Chouhan
♦ UNESCO World Heritage Site – Sanchi , Bhimbekta Rock Shelters, Khajuraho Group of Monuments.
India’s GDP grows at robust 7.7% in Q4 of FY18, full year growth at 6.7%
On May 31,2018, The ministry of Statistics reported that India’s GDP grew at robust 7.7% in Q4 of financial year
2017-18.
Key points:
i. The full year growth is at 6.7%.
ii. It surpassed China’s trajectory of 8%.
iii. The ministry revised the October-December growth from earlier 7.2% to 7.0%.
iv. It can be forcasted that the growth is towards a 7.3% for annual growth.
v. This improvement can be due to improved manufacturing sector and GST.
vi. Manufacturing sector grew a9.1% from a 6.1% earlier .
vii. Inflation is projected to be 4.58 % in april above the RBI’s target of 4%.
64 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com
Banking & Economy Awareness 2018
65 | P a g e
Follow Us - FB.com/AffairsCloudOfficialPage Copyright 2018 @ AffairsCloud.com