Monthly Government

Current Affairs MonthlySchemes

Capsule I
Capsule|February 2021
September 2020

1|Page
 Banking Current Affairs|April 2021

GENERAL KNOWLEDGE BANKING CURRENT AFFAIRS

SDRs will be distributed by the IMF to member countries by August
 The International Monetary Fund recently announced that the Special Drawing Rights would
be distributed to its member countries by the middle of August.
 The IMF has agreed to fund a USD 650 million SDR allocation. This is the biggest IMF loan in
its history.
 The G20 Finance Ministers recently agreed to allow the International Monetary Fund to issue
new SDRs to its member countries.
 Previously, ministers were worried that injecting liquidity could have expensive
consequences if countries used the funds for unrelated purposes.
According to a US Treasury survey, India has been put on a currency watch list.
 The US recently published a study on the macroeconomic and foreign exchange policies of
the US's major trading partners.
 The study looked at the currency policies of the US's main trading partners.
 India has been included on the report's "monitoring list." There were a total of eleven US
trading partners on the list.
 Japan, China, Germany, Korea, Italy, Ireland, Singapore, Malaysia, Mexico, and Thailand
were the other ten nations. Two of the three conditions were met by India. The pervasive
one-sided interference and trade surplus were the culprits.
RBI is now a member of the New Generation Financial Services (NGFS)
 The Reserve Bank of India has recently begun working with the Network for Greening the
Financial System (NGFS).
 By doing so, RBI hopes to learn from and contribute to the financial sector's global climate
risk management.
 NGFS is affiliated with 83 central banks. There are 75 participants and 13 observers among
them.
 The NGFS’s key goal is to increase and accelerate green finance.
Agriculture Infrastructure Fund Exceeds Rs. 8,000 Crores in Assets
 The Agriculture Infrastructure Fund was founded by the Indian government in 2020 to
encourage credit into agriculture and related activities.
 The Agriculture Infrastructure Fund recently passed the Rs 8,000 crore mark, according to
the Ministry of Agriculture and Farmers Welfare. So far, 8,665 applications have been
submitted by the Ministry.
 The total value of these applications is Rs 8,216 crores. So far, the Ministry has authorized Rs

2|Page
 Banking Current Affairs|April 2021

4, 000 crores out of this total.

 The states of Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Karnataka, and Rajasthan
were among the few that benefited the most.
NITI Calls For EV Purchase Subsidy With FAME-II
 According to NITI Aayog, the government of India could offer more incentives for electric
vehicle purchases than the FAME II scheme currently provides.
 Aside from that, the NITI Aayog has suggested developing non-monetary incentives.
 The NITI Aayog wants exclusive parking and priority lanes for electric vehicles in commercial
complexes.
 It was also suggested that Green Zones be developed inside cities that only allow electric
vehicles.
ADB Increases India’s GDP Forecast By 11%
 The Asian Development Bank has issued its 2021 Asian Development Outlook.
 The Asian Development Bank's annual outlook was recently issued.
 India is expected to rise at an annual rate of 11%, according to their study.
 According to the outlook, the Asian Development Bank (ADB) has provided India with the
fertilizer finance assistance of 1.5 billion dollars to combat COVID-19.
RBI Guidelines For Bank CEOs & MDs Amended
 According to RBI now the post of MD and CEO shall not be held by the same person for over
15 years.
 They can be reappointed after a cooling period of 3 years.
 During the cooling period, the individual shall not be appointed or associated with the bank
or its group entities directly or indirectly.
 The new guidelines by RBI do not apply to the foreign banks whose branches are operating
in the country.
Agreement Between India & UK On Customs Cooperation Approved By The Cabinet
 This agreement establishes a legal structure for the two countries' customs departments to
exchange intelligence and information.
 It will assist in ensuring compliance with Customs laws.
 It would also aid in the detection and prevention of customs offenses.
 In addition, the agreement would facilitate the exchange of information about the origin of
goods exchanged between the countries, as well as customs value, tariff classification, and
other information. These details are crucial to understanding since they are factored into the
customs duty calculation.
Russia’s Central Bank Raises The Interest Rates
 The Russian Central Bank has raised the interest rate from 4.5 percent to 5%.

3|Page
 Banking Current Affairs|April 2021

 This is the second time the central bank has raised interest rates in response to rising
inflationary pressures.
 By 2021, the bank predicts that inflation in the country will range from 4.7 percent to 5.2
percent.
 Russia is only expected to return to its 4% target in 2022, according to the study.
GOI Targets 17 Million Tonnes of Mustard
 The Ministry of Agriculture and Farmer Welfare recently announced plans to plant mustard
on nine million hectares of soil. By 2025-26, mustard production will have increased to 17
million tonnes.
 The average mustard production in India, that is, the mustard production between 2015 and
2019 was 7.7 million tonnes.
 This was produced from 5.9 million hectares of land.
 Around 70% of India's edible oil needs are imported. Palm oil is the most abundant of these.
There is a need to make India self-sufficient in oil.
NBFCs To Now function In Gift City
 Non-Banking Finance Companies have recently been granted permission to operate in
Gujarat GIFT City by the International Financial Service Centre.
 NBFCs will be able to include a variety of services, including loans, investment banking,
exotic derivative trades, and third-party product sales.
 The transition is expected to draw top financial services firms from around the world. It will
also aid in the localization of services that are typically provided overseas.
 The International Financial Services Commission (IFSC) transacts business in foreign
currencies. These centers deal with cross-border financial products and services.
RBI’s Sudarshan Sen Committee
 The Reserve Bank of India recently set up a committee to study the Asset Reconstruction
Companies (ARC) in the country.
 The committee will evaluate the role of ARCs in debt resolution and will review their business
model.
 The Committee is headed by former RBI Executive director Sudarshan Sen.
 It will recommend measures to improve the efficacy of Asset Reconstruction Companies.
CryptoCurrency payments Ban In Turkey
 The Turkish Central Bank has outlawed the buying of cryptocurrencies and crypto
properties. As a result, the price of bitcoin has dropped by 4%.
 The bank justified the ban by citing the danger of irreparable harm and transaction risks.
 The ban comes after Morocco's decision to ban the currency, and it is expected to be
enforced in India as well.

4|Page
 Banking Current Affairs|April 2021

 Naci Agbal, Turkey's top central banker, was shot by Turkish President Erdogan in March
2021. As a result, a number of business people have turned to cryptocurrencies as a viable
alternative.
Regulations Review Authority 2.0
 The Reserve Bank of India (RBI) has recently developed the RRA 2.0 (Regulations Review
Authority). The authority will be in place for a year.
 RRA has been given the leadership of Deputy Governor Rajeshwar Rao.
 It will also conduct a study of the regulatory prescriptions, soliciting input from controlled
agencies and stakeholders.
 It will aim to make the regulatory prescriptions easier to enforce.
National Housing Bank: Rs 10,000 crore Special Refinance Facility launched
 The National Housing Bank recently launched the “Special Refinance Facility”, 2021. Rs 10,00
crores have been allocated to this facility.
 The main objective of the facility is to provide short-term refinance support to the housing
finance companies and other eligible Primary Lending Institutions.
 The facility will aid in meeting the short-term liquidity requirement in the Public Lending
Institutions.
 In May 2020, the RBI had announced a refinance facility of Rs 15,000 crore for SIDBI.
What is a Currency Chest?
 Currency Chests are places where RBI (Reserve Bank of India) stocks money meant for banks
and ATMs.
 The Currency Chests are located in different banks and are administered by the Reserve
Bank of India.
 A private security guard has looted Rs 4.04 crores from the currency chest of Axis Bank in
Chandigarh. This has brought currency chests into the spotlight.
 The Currency chests are places where RBI stores money meant for ATMs and banks. The
representatives from RBI inspect these currency chests from time to time.
Online Portal: For trusted telecom gear makers
 The Indian government recently unveiled an online marketplace for purchasing telecom
equipment from "trusted sources."
 The highest cybersecurity offices in the country will identify the sources to be mentioned in
the portal.
 The Portal's History Many of the reputable companies and their equipment will be listed on
the portal.
 This will benefit the telecom industry.

5|Page
 Banking Current Affairs|April 2021

Subsidies for urea generated by coal gasification have been approved by the
Cabinet.
 The Cabinet Committee on Economic Affairs recently approved a subsidy for TFL's
production of urea.
 TFL is a government-owned fertilizer factory. It is a Talcher Fertilizer Plant.
 In Odisha, the TFL will start up a new fertilizer factory.
 This plant would use coal gasification to manufacture urea. The Indian government will
subsidize the plant's construction. It will be the first and only coal gasification plant in India
to generate nitrogenous soil nutrients.
Tax collections for FY 21
 The Ministry of Finance recently released the tax collection figures for the financial year
2020-21.
 According to the ministry, the direct tax collections for the financial year 2020-21 are Rs 9.45
lakh crores.
 Tax collections for the fiscal year 2020-21 The Direct Tax Collections include Personal
Income Tax collections and Corporation Tax collections.
 The Direct Tax Collections include Personal Income Tax collections and Corporation Tax
collections.
Opening Of Basic Savings Account In Post Offices
 Changes to the 2019 Post Office Savings Account Scheme were recently announced by the
Ministry of Finance.
 A beneficiary of the government welfare scheme may open a simple savings bank account
with any post office in the country, according to the ministry.
 An India Post Payment Bank or a Scheduled Commercial Bank may open the accounts.
 A beneficiary of any Government Welfare Scheme must open an account. A beneficiary who
is a minor must also open the account. The minor, on the other hand, must choose a
guardian.
SmartUp Grants to 21 Social Sector Startups By HDFC
 HDFC Bank recently announced the winners of the SmartUp Grants for 2021. This is the
fourth year of the HDFC SmartUp Grants.
 A total of 21 social-impact startups have been selected for funding.
 After a rigorous analysis of approximately 300 applications obtained from around the world,
the startups were selected.
 Through this initiative, HDFC aims to give priority to startups working in the areas of
capability development and education.

6|Page
 Banking Current Affairs|April 2021

ADB Approves 484 million USD For CKICK Project

 The Asian Development Bank has permitted 484 million USD for the Chennai-Kanyakumari
Industrial Corridor in Tamil Nadu.
 CKICK is a part of the East Coast Economic Corridor.
 The project will upgrade 590 km of state highways in the CKICK influence areas.
 CKICK’s objective is to increase the participation of the manufacturing industry in
production networks and create jobs along the corridor.
RBI Amended The Inflation Forecast Model
 The Reserve Bank of India's Inflation Forecast Model was recently updated.
 The new model would show how fiscal and monetary policy interact with elements of the
real economy.
 The new design will be divided into three parts.
 In India, the Wholesale Price Index (WPI) and the Consumer Price Index (CPI) are used to
calculate inflation (CPI).
RBI’s Monetary Policy
 The Reserve Bank of India's Monetary Policy Committee has announced the results of its bi-
monthly monetary policy analysis.
 The repo rate is the interest rate at which the Reserve Bank of India loans money to the
country's commercial banks.
 The rate at which the Reserve Bank of India borrows money from commercial banks in India
is known as the reverse repo rate.
 The CPI stands for Consumer Price Index. It is a metric that examines the weighted average
of prices paid by households for goods and services.

7|Page
 Banking Current Affairs|April 2021

8|Page