Financial Awareness Capsule For IBPS PO Mains 2022 PDF by Ambitious Baba

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Financial Awareness Capsule for IBPS

PO 2022
Part 1: Financial & Banking Awareness

(Static Part)
Number of Topics Name
Chapter
Chapter 1 RBI, Subsidiaries of RBI, NABARD, NHB,

ECGC
Chapter 2 Banks in India Commercial Bank, Exim

Bank of India, Payment Bank, Co-operative
Banks, Regional Rural Banks, Small
Finance Banks
Chapter 3 Banking Ombudsman, National Income
Chapter 4 Money Market, Capital Market
Chapter 5 Inflation
Chapter 6 Negotiable Instrument, Mutual Fund,

Money Laundering
Chapter 7 Types of Cheque & Types of Account
Chapter 8 Types of Payment Cards, Fund transfer

service
Chapter 9 Basel I, II and III
Chapter 10 NPA & SARFAESI Act, 2002
Chapter 11 LIBOR & MIBOR, SWIFT Codes for banks
Chapter 12 CIBIL, Priority Sector lending & Banks

Merger
Chapter 13 Important Terms
Chapter 14 Micro, Small and Medium Enterprise in

India
Chapter 15 List of all schemes of Indian government
Part 2: Banking and Financial News PDF

2022 (May to October)
Index
No. of Topic Topic Name

Topic 1 List of Banks who has been imposed
penalty by RBI in 2022
Topic 2 List of Banks whose licence has been
canceled by RBI in 2022
Topic 3 Important Committee (March to August)
Topic 4 List of Merger and Acquisition (Covered
March to August)
Topic 5 List of Partnership/Agreement (Covered
March to Aug)
Topic 6 List of loan agreement for India from
different organizations 2022
Topic 7 Union Budget 2022-23: Highlights
Topic 8 Banking & Financial News (March to
August)
Topic 9 India’s GDP Growth Forecast FY 21 and 22
by various Financial Organizations (last
Update 10 August 2021)
Financial Market
Financial system
Financial system a network of financial institutions (COMMERCIAL BANKS,
BUILDING SOCIETIES, etc.) and markets (MONEY MARKET, STOCK MARKET),
dealing in a variety of financial instruments BANK DEPOSITS, STOCKS and SHARES,
etc.), which are engaged in money transmission activities and the provision of LOAN
and CREDIT facilities. The financial institutions and markets occupy a key position in
the economy as intermediaries in channelling savings and other funds to borrowers
and investors. In doing this one of their main roles is to reconcile the different
requirements of savers and borrowers, thereby facilitating a higher level of saving and
investment in the economy than would otherwise be the case.
Financial System
Insurance and Pension Regulators

Central Banking Authority Capital Market
Regulatory Authority
Central Bank (RBI) Capital Market (SEBI) Insurance and Pension

Regulators (IRDA)
1)Monetary Control 1)Equity market and debt 1)Regulatory framework
market supervision and including rules and
2)Supervision Over
control
Commercial Bank 2)Supervision over regulations for running

insurance business
Primary Dealers Stoke exchange
2)Supervising all
Financial Institutions Brokers
insurance companies both
Cooperative Banks Equity and Debt raiser in general and life
insurance business
Clearing and Settlement Investment bankers
System (Merchant Bankers) 3)Regulating pricing,
investments and cost
3)Management of Foreign institutional structure of insurance
Government debt investors companies
4) Banker to Government Custodians 4)Regulation insurance
5) Regulating monetary Depositories brokers including agencies
instruments (CRR, SLR, both individual and Bank
Mutual Funds
BANK RATE, REPO RATE,
PENSIONS
MSF) Listed companies
1)Framing rules for
Service providers to pension funds
capital
2)Regulating all pension
Markets like registrars funds
Chapter 1: RBI, Subsidiaries of RBI, NABARD, NHB,

ECGC
Reserve Bank of India (RBI)
History of RBI
• The Reserve Bank of India was established following the Reserve Bank of India
Act of 1934.
• Though privately owned initially, it was uthorizedn in 1949 and since then
fully owned by Government of India (GoI).
• It commenced its operations on 1 April 1935 in accordance with the Reserve
Bank of India Act, 1934.
• The Hilton-Young Commission, therefore ended by setting-up of a central bank
— called the Reserve Bank of India
Management
• One Governor (5years Term)

• Four Deputy Governors (5years Term)
• Fifteen Directors
Branches and support bodies
• RBI Headquarters in Mumbai

• The RBI has four zonal offices at Chennai, Delhi, Kolkata and Mumbai.
• It has 21 regional offices and 11 sub-offices throughout India.
Functions of RBI
• The central bank of any country executes many functions such as overseeing
monetary policy, issuing currency, managing foreign exchange, working as a
bank for government and as a banker of scheduled commercial banks. It also
works for overall economic growth of the country.
Subsidiaries of RBI
Fully owned:
• Deposit Insurance and Credit Guarantee Corporation of India (DICGC),

• Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
• Reserve Bank Information Technology Private Limited (ReBIT)
• Indian Financial Technology and Allied Services (IFTAS)
• Reserve Bank Innovation Hub (RBIH).
Note: NABARD and NHB further. Both were the subsidiaries of RBI before 26 Feb
2019.
About BRBNMPL
• Bharatiya Reserve Bank Note Mudran Private Limited

• Prints banknotes for Reserve Bank of India (RBI)
• Established in 1995 to address the demand for banknotes
• It has two presses in Mysore and Salboni
• Mysore -The machinery at Mysore Site has been supplied by Switzerland.
• Salboni.- The machinery at Salboni has been supplied by Japan.
About DICGC
• DICGC (Deposit Insurance And Credit Guarantee Corporation )

• Established under the DICGC act 1961, on 15th July 1978
• All commercial bank including branches of a foreign bank in India, local area
bank and RRB are insured by DICGC
• NBFC and primary cooperative society are not insured by RBI
• DICGC insures all types of account i.e. (Current, fixed, saving, recurring )
• The maximum amount insured by DICGC is 5 lakh
National Bank for Agriculture and Rural Development (NABARD)

NABARD is a development bank uthoriz primarily on the rural sector of the country. It is
the apex banking institution to provide finance for Agriculture and rural development.
• Headquartered- Mumbai
• Chairman: Govinda Rajulu Chintala
• NABARD was established on the recommendations of B.Sivaraman Committee,
(by Act 61, 1981 of Parliament) on 12 July 1982 to implement the National
Bank for Agriculture and Rural Development Act 1981.
• The initial corpus of NABARD was Rs.100 crores. Consequent to the revision
in the composition of share capital between Government of India and RBI, the
paid up capital as on 31 May 2017, stood at Rs.6,700 crore with Government of
India holding Rs.6,700 crore (100% share). The authorized share capital is
Rs.30,000 crore
National Housing Bank (NHB)
• A Government of India owned entity

• Founded: 9 July 1988 (under the National Housing Bank Act, 1987)
• Headquarters: New Delhi, India
Aims
• To promote a sound, healthy, viable and cost effective housing finance system to
cater to all segments of the population and to integrate the housing finance
system with the overall financial system.
• To promote a network of dedicated housing finance institutions to adequately
serve various regions and different income groups.
• To augment resources for the sector and uthorized them for housing.
• To make housing credit more affordable.
ECGC (Export Credit Guarantee Corporation of India)
• Type: State-owned enterprise Public

• Industry: Insurance
• Founded: 30 July 1957
• Headquarters: Mumbai, Maharashtra
• It was transformed into Export Credit and Guarantee Corporation Limited
(ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.
Functions
• Provides a range of credit risk insurance covers to exporters against loss in

export of goods and services as well.
• Offers guarantees to banks and financial institutions to enable exporters to
obtain better facilities from them.
• Provides Overseas Investment Insurance to Indian companies investing in joint
ventures abroad in the form of equity or loan and advances.
Reserve Bank Innovation Hub
The Reserve Bank Innovation Hub is a wholly owned subsidiary of the Reserve Bank of
India (RBI) set-up to promote and facilitate an environment that accelerates innovation
across the financial sector.
Aims: We aim to foster and evangelize innovation across the financial sector to enable
access to suitable, sustainable financial products to a billion Indians in a secure friction-
less manner. In addition, RBIH would create internal capabilities by building applied
research and expertise in the latest technology. The hub will collaborate with financial
sector institutions, policy bodies, the technology industry, and academic institutions
and coordinate efforts for exchange of ideas and development of prototypes related to
financial innovations.
Chapter 2: Banks in India Commercial Bank, Exim

Bank of India, Payment Bank, Co-operative Banks,
Regional Rural Banks, Small Finance Banks
Commercial Bank
Functions of Commercial Bank
A commercial bank is a type of bank that provides services such as accepting deposits,
making business loans, and offering basic investment products that is operated as a
business for profit.
Public Sector Banks– These can be further classified into Nationalized Banks and Non
Nationalized banks. These are the banks which are owned and controlled by the
government. In these the majority of stake is held by the government. Their main aim is
to provide service to the public. These include State Bank of India and its associates,
Dena bank, Punjab National Bank, Canara bank, etc.
Private Sector Banks– These are the banks which are owned and controlled by the
private individuals. So their main aim is to earn profit like any other businessman does.
These include ICICI Bank, HDFC Bank, Axis Bank, Yes Bank, etc
Foreign Banks– These are the banks which are owned and controlled by the foreign
companies. They have their headquarters in other countries and open their branches in
India. Examples are Citi Bank, HSBC Ltd.
Non-Scheduled Banks– The banks which are not included in the list of the scheduled
banks are called the Non- Scheduled Banks. At present there are only 3 such banks in
the country. Non- Scheduled Banks have to follow CRR conditions. These banks can have
CRR fund with themselves as no compulsion has been made by the RBI to deposit it in
the RBI. Non- Scheduled Banks are also not eligible for having loans from the RBI for
day to day activities but under the emergency conditions RBI can grant loan to them.
EXIM Bank
Export–Import Bank of India is a finance institution in India, established in 1982 under

Export-Import Bank of India Act 1981.
Payments Bank
• On 23 September 2013, Committee on Comprehensive Financial Services for
Small Businesses and Low Income Households, headed by Nachiket Mor, was
formed by the RBI. On 7 January 2014, the Nachiket Mor committee submitted its
final report. Among its various recommendations, it recommended the formation
of a new category of bank called payments bank. On 17 July 2014, the RBI
released the draft guidelines for payment banks, seeking comments for
interested entities and the general public. On 27 November, RBI released the
final guidelines for payment banks.
• In February 2015, RBI released the list of entities which had applied for a
payments bank licence. There were 41 applicants. It was also announced that an
external advisory committee (EAC) headed by Nachiket Mor would evaluate the
licence applications. On 28 February 2015.
• Payments banks is a new model of banks uthorizednd by the Reserve Bank of
India (RBI). These banks can accept a restricted deposit, which is currently
limited to ₹100,000 per customer and may be increased further. These banks
cannot issue loans and credit cards. Both current account and savings accounts
can be operated by such banks. Payments banks can issue services like ATM
cards, debit cards, net-banking and mobile-banking. Bharti Airtel set up India’s
first live payments bank.
• The RBI will grant full licenses under Section 22 of the Banking Regulation
Act, 1949, after it is satisfied that the conditions have been fulfilled.
• The minimum capital requirement is 100 crore.
• Foreign share holding will be allowed in these banks as per the rules for FDI in
private banks in India.
• For the first five years, the stake of the promoter should remain at least 40%.
Cooperative banking
• Cooperative banking is retail and commercial banking organized on a
cooperative basis. Cooperative banking institutions take deposits and lend
money in most parts of the world.
Note: Co-operative banks have more than one head like the RBI, the Registrar of Co-
operative Societies (RCS) and NABARD.
Small finance bank

They are established as public limited companies in the private sector under the
Companies Act, 1956.
They are governed by the provisions of Reserve Bank of India Act, 1934, Banking
Regulation Act, 1949 and other relevant statutes.
Important Point
• Existing non-banking financial companies (NBFC), microfinance institutions
(MFI) and local area banks (LAB) can apply to become small finance banks.
• They can be promoted either by individuals, corporate, trusts or societies.
• They are established as public limited companies in the private sector under the
Companies Act, 1956.
• They are governed by the provisions of Reserve Bank of India Act, 1934, Banking
Regulation Act, 1949 and other relevant statutes.
• The banks will not be restricted to any region.
• They were set up with the twin objectives of providing an institutional
mechanism for promoting rural and semi urban savings and for providing credit
for viable economic activities in the local areas.
• 75% of its net credits should be in priority sector lending and 50% of the loans
in its portfolio must in ₹25 lakh (US$38,000) range.
• The firms must have a capital of at least ₹100 crore (US$15 million).
• The promoters should have 10 years’ experience in banking and finance. The
promoters stake in the paid-up equity capital will be at least 40% initially but
must be brought down to 26% in 12 years. Joint ventures are not permitted.
Foreign share holding will be allowed in these banks as per the rules for FDI in
private banks in India.
• At net worth of ₹500 crore (US$77 million), listing will be mandatory within
three years. Small finance banks having net worth of below ₹500 crore (US$77
million) could also get their shares listed voluntarily.
• They can accept any deposit (savings, current, fixed deposits, recurring deposits)
like commercial banks.
• Unlike payment banks, small finance banks will be allowed to lend money also.
• For the initial 3 years, prior approval will be required for branch expansion.
• To give the feel of local bank, their area of operation will be restricted.
• They are not allowed to lend the deposited money to big businesses or
industries.
Chapter 3: Banking Ombudsman, National Income
Banking Ombudsman Important Point
• The Banking Ombudsman Scheme was introduced under Section 35 A of the

Banking Regulation Act, 1949 by RBI with effect from 1995.
• The Banking Ombudsman Scheme was first introduced in India in 1995 and it
was revised in 2002
• Current Banking Ombudsman Scheme introduced in 2006.
• From 2002 until 2006, around 36,000 complaints have been dealt by the Banking
Ombudsmen.
• Banking Ombudsman is appointed by Reserve Bank of India.
• There are 21 regional offices of Banking Ombudsmen in India.
• Banking Ombudsman is a senior official appointed by RBI
• All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary
Co-operative Banks are covered under the Banking Ombudsman Scheme.
Type of complaints resolved by banking ombudsman
• Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills,

etc.;
• Non-acceptance, without sufficient cause, of small denomination notes tendered
for any purpose, and for charging of commission for this service;
• Non-acceptance, without sufficient cause, of coins tendered and for charging of
commission for this service;
• Non-payment or delay in payment of inward remittances ;
• Failure to issue or delay in issue, of drafts, pay orders or bankers’ cheques;

• Non-adherence to prescribed working hours;
• Failure to honour guarantee or letter of credit commitments;
National Income
Chapter 4: Money Market, Capital Market

Financial markets
• Financial markets in every economy have two separate segments.

• Short-term funds are for a period of 364 days (Money market).
• Long term funds are for above 364 days (Capital Market).
Note : Chakravarthy committee (1985) for first time underlined the need of an uthorize
money market and Vahul Committee (1987) laid the blueprint for that.
Money Market
Instruments of Money Market
• Treasury Bills
• Commercial Paper
• Commercial Bill
• Call Money
• Certificate of Deposits
• Cash Management Bills (CMBs)
Treasury Bills
• Issued by RBI on behalf of govt.

• Govt uses them to meet their short-term liquidity crunch.
• T-bills are sovereign zero risk instruments.
• At present, 3 types of T-bills are there: 91-day, 182-day, 364-day.
• State govt. cannot issue T-bills.
• They are issued by Market Stabilization Scheme (MSS).
• Available for a minimum amount of Rs. 25000 or in multiples of that.
Call Money
• Interbank market where funds are borrowed and lent for 1 day or less.
• The money that is lent for one day in this market is known as “Call Money”, and
if it exceeds one day (but less than 15 days) it is referred to as “Notice Money”.
• Duration varying from 1 to 14 days, it is called Call money Market.
• Mutual funds, scheduled commercial & cooperative banks act as both borrowers
and lenders.
• LIC, GIC, NABARD, IDBI act only as lenders.
Certificate of Deposit (CDs)
• Issued by scheduled commercial banks and other financial institutions.

• RRBs and local area banks can not issue CDs.
• Issued at a discount to face value, the discount rate is negotiated between issuer
and investor.
• Minimum amount to be Rs. 1 lac.
• CDs issued by banks have a maturity period: 15 days to 1 year.
• CDs issued by selected Fis have maturity period: 1 year to 3 years.
• Can be issued to individuals or firms.
Commercial Paper (CP)
• These are unsecured promissory* notes issued by large corporates, primary

dealers, satellite dealers and all India Fis.
• Maturity period is between 7 days up to 1 year from date of issue.
• Minimum amount to be invested is Rs. 5 lacs or multiples of that.
• CPs need to have a credit rating from a credit rating agency.
Commercial Bills (CBs)
• Negotiable instruments which are issued by all India Fis, NBFCs, SCBs, Merchant
banks & Mutual funds.
• Drawn by seller on the buyer (buyer gives seller), hence also called trade bills.
Cash Management Bills (CMBs)
• It’s a comparatively new short-term instrument issued by RBI on behalf of Govt.

• Issued to meet temporary mismatches in cash flow of Govt.
• They resemble T-bills in character but are issued for less than 91 days only.
Capital Market
Capital Market 2 types
• Primary Market: Otherwise called as New Issues Market, it is the market for the
trading of new securities, for the first time. It embraces both initial public
offering and further public offering. In the primary market, the uthorizedn of
funds takes place through prospectus, right issue and private placement of
securities.
• Secondary Market: Secondary Market can be described as the market for old
securities, in the sense that securities which are previously issued in the primary
market are traded here. The trading takes place between investors, that follows
the original issue in the primary market. It covers both stock exchange and over-
the counter market.
Chapter 5: Inflation
Inflation
Inflation is a quantitative measure of the rate at which the average price level of a
basket of selected goods and services in an economy increases over a period of time.
Simply, inflation is rise in the prices of goods and services caused by the devaluation of
currency.
There are three major types of inflation

• Demand-pull inflation – This increase in liquidity and demand for consumer
goods results in an increase in demand for products. As a result of the increased
demand, companies will raise prices to the level the consumer will bear in order
to balance supply and demand.
• Cost-push inflation- Cost-push inflation, also called “supply shock inflation,” is
caused by a drop in aggregate supply (potential output). This may be due to
natural disasters, or increased prices of inputs, increases in corporate taxes,
rising wages.
• Built-in inflation – Built-in inflation is induced by adaptive expectations, and is

often linked to the “price/wage spiral”. It involves workers trying to keep their
wages up with prices (above the rate of inflation), and firms passing these higher
labor costs on to their customers as higher prices, leading to a ‘vicious circle’.
Deflation
• Deflation is a decrease in the general price level of goods and services. Deflation
occurs when the inflation rate falls below 0% (a negative inflation rate).
Deflation is the exact opposite of inflation. Inflation reduces the value of currency
over time, but deflation increases it. This allows one to buy more goods and
services than before with the same amount of currency.
Stagflation
• Stagflation is a condition of slow economic growth and relatively high
unemployment, or economic stagnation, accompanied by rising prices, or
inflation. It can also be defined as inflation and a decline in gross domestic
product (GDP).
Galloping Inflation
• Galloping inflation also called as hopping inflation, jumping inflation, and
running or runaway inflation is basically a very high inflation, which can be in
the range of ‘double-digit’ or ‘triple-digit’ (for example: 50 % or 200% in a year).
Causes of Inflation
Factors on Demand Sides –
• Increase in money supply
• Increase in Export
• Increase in disposable income
• Deficit financing
• Foreign exchange reserves
Factors on Supply Side –
• Rise in administered prices
• Erratic agriculture growth
• Agricultural price policy
• Inadequate industrial growth
Measurement of Inflation
• The Consumer Price Index (CPI)

• Producer Price Index (PPI)
Measures of Inflation
Monetary policy
• Credit Control
• Demonetization of Currency
• Issue of New Currency
Fiscal policy
• Reduction in Unnecessary Expenditure
• Increase in Taxes
• Increase in Savings
• Surplus Budgets
• Public Debt
Other Measures
• To Increase Production
• Rational Wage Policy
• Price Control
Chapter 6: Negotiable Instrument, Mutual Fund,

Money Laundering
What is Negotiable Instrument
A negotiable instrument is a document guaranteeing the payment of a specific amount
of money, either on demand, or at a set time, with the payer usually named on the
document.
Types of Negotiable Instruments
• Promissory Note
• Bills of Exchange
• Promissory note
• Demand Draft
• Letter of credit
• Cheque
Bill of Exchange
A bill of exchange is a written order used primarily in international trade that binds one
party to pay a fixed sum of money to another party on demand or at a predetermined
date.
Features of Bill of Exchange:
• Bills of exchange must be in writing.
• Bills of exchange are not a request to pay and an order to pay.
• The order must be signed by the drawer, i.e. the maker.
• The order must be for the payment of money only.
• The money payable not vague and must be certain.
• The bills of exchange must be payable to a certain person mentioned in the
instrument or to his order or to the bearer of the document.
Promissory note
Promissory note may be a negotiable instrument if it is an unconditional promise in
writing made by one person to another, signed by the maker, engaging to pay on
demand to the payee, or at fixed or determinable future time, certain in money, to order
or to bearer.
Cheque
A Cheque is a document which orders a bank to pay a particular amount of money from
a person’s account to another individual’s or company’s account in whose name the
cheque has been made or issued. The person writing the cheque, known as the drawer.
Demand Draft
Demand Draft is a negotiable instrument used for the transfer of money from one place
to another. It making payment to the bank. Demand Draft can’t be dishonored as the
amount is paid beforehand.
Demand Draft is issued by a bank. The amount in cash not exceeding Rs 50,000. In case
of amount exceeding Rs 50,000, the payment is to be made by cheque along with giving
the PAN No. It can be cleared at any branch of the same bank. The payment of a draft
cannot be stopped.
Letter of credit
A letter of credit (LC), also known as a documentary credit or bankers commercial

credit, is a payment mechanism used in international trade to provide an economic
guarantee from a creditworthy bank to an exporter of goods.
Maker/ Drawer
The maker of a promissory note or cheque, the drawer of a bill of exchange until
acceptance, and the acceptor are, in the absence of a contract to the contrary,
respectively liable thereon as principal debtors, and the other parties thereto are liable
thereon as sureties for the maker, drawer or acceptor, as the case may be.
Drawee
Drawee is a legal and banking term used to describe the party that has been directed by
the depositor to pay a certain sum of money to the person presenting the check or draft.
Payee
A payee is the party in an exchange who receives payment. A payee is paid by cash,
check or other transfer medium by a payer.
Holder
The Holder is either the payee or some other person to whom he may have endorsed
the promissory note or bill of exchange or cheque. A person cannot be a holder unless
he is the payee or indorsee there of.
Money Laundering
Money laundering is the process of making large amounts of money generated by
a criminal activity, such as drug trafficking or terrorist funding, appear to have come
from a legitimate source. The money from the criminal activity is considered dirty, and
the process “launders” it to make it look clean. Money laundering is itself a crime.
Money Laundering on International Basis
On international Basis Financial action task force was established (FATF) to combat
with money laundering cases and terrorism financing.
• Established in 1989
• Headquarters – Geneva
• Total member countries – 36
Introduction of Mutual Fund
A mutual fund is a professionally managed investment fund that pools money from
many investors to purchase securities. These investors may be retail or institutional in
nature.
Chapter 7: Types of Cheque & Types of Account
Cheque
A Cheque is a document which orders a bank to pay a particular amount of money
from a person’s account to another individual’s or company’s account in whose
name the cheque has been made or issued. The cheque is uthoriz to make safe, secure
and convenient payments. It serves as a secure option since hard cash is not involved
during the transfer process; hence the fear of loss or theft is uthorize.
Number of Parties involved with a Cheque
Under the cheque mode of fund payment, there are three parties which are involved for
on-track movement of money through a written paper source.
• Drawer or Maker: He/she is the customer or account holder who issues the
cheque.
• Drawee: It is basically the bank on which the cheque is drawn and is called the
“Drawee”. Always remember that a cheque is always drawn on a particular
banker.
• Payee: The individual who is named in the cheque for getting the payment is
known as the “Payee”. Interestingly, the drawer and the payee can be the same
individual in a particular case.
Types of Cheque
• Bearer Cheque: Bearer cheques are the cheques which withdrawn to the
cheque’s owner. These types of cheques normally used for a cash transaction.
• Order Cheque: Order cheques are the cheques which are withdrawn for the
payee(the person whose name is written on the cheque). Before making
payment to that payee,cross-checks check the identity of the payee.
• Crossed Cheque: On the Crossed cheques, two lines are made on the top right of
the cheque. Amount mentioned on the cheque is only transferred to the bank
account of the payee. No cash payment is made.
• Account Payee Cheque: On the Account payee cheque, two lines are made with
the word “account payee” on the top right of the cheque. Amount mentioned on
the cheque is only transferred to the bank account of the payee whose name is
mentioned on the cheque. No cash payment is made. This cheque can not be
endorsed to the third party.
• Stale Cheque: In India, if a cheque is not presented to the bank within 3 months
from the date written on the cheque is known as a stale cheque.
• Post Dated Cheque: If any cheque issued by a holder to the payee for the
upcoming withdrawn date, then that type of cheques are called post-dated
cheque.
• Ante Dated Cheque: If date entered on the cheque is prior to the current date,
that type of cheque is known as Ante-dated cheque.
Demand Draft
• Demand Draft is a negotiable instrument used for the transfer of money from one
place to another. It making payment to the bank. Demand Draft can’t be
dishonoured as the amount is paid beforehand.
• Demand Draft is issued by a bank. The amount in cash not exceeding Rs.
50,000. In case of amount exceeding Rs. 50,000, the payment is to be made
by cheque along with giving the PAN No. It can be cleared at any branch of
the same bank. The payment of a draft cannot be stopped.
Letter of credit (LC)
• A letter of credit (LC), also known as a documentary credit or bankers
commercial credit, is a payment mechanism used in international trade to
provide an economic guarantee from a creditworthy bank to an exporter of
goods.
Bank Account
A bank account is a financial account maintained by a bank or other financial institution
in which the financial transactions between the bank and a customer are recorded.
Savings Account
A savings account is a deposit account held at a retail bank that pays interest. Any
individual either single or jointly can open a savings account. Most of the salaried
persons, pensioners and students use Savings Account.
Current Account
The current account is a country’s trade balance plus net income and direct payments.
The trade balance is a country’s imports and exports of goods and services. The current
account also measures international transfers of capital.
Basic Savings Bank Deposit Accounts (BSBDA)
• A person having savings account can open a BSBDA in the same bank. But he will
have to close the savings account within 30 days from the date of opening of
BSBDA.
• With the introduction of BSBDA, ‘no-frills’ account with ‘nil’ or very low
minimum balances have been converted to BSBDA
• Total credits in such accounts should not exceed one lakh rupees in a year.
• Maximum balance in the account should not exceed fifty thousand rupees at
any time.
• In a month, the total of cash withdrawals and transfers cannot exceed Rs
10,000.
Recurring Deposit Account
• Recurring Deposit is a special kind of Term Deposit offered by banks in India

which help people with regular incomes to deposit a fixed amount every month
into their Recurring Deposit account and earn interest
• Recurring Deposit schemes allow customers with an opportunity to build up
their savings through regular monthly deposits of fixed sum over a fixed period
of time. Minimum Period of RD is 6 months and maximum is 10 years.
• There are no limits for number of transactions or the amount of transactions in
a day.
• There is no interest paid on amount held in the account, banks charges certain
service charges, on such accounts.
Fixed Deposit Account
• A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which

provides investors a higher rate of interest than a regular savings account, until
the given maturity date. It may or may not require the creation of a separate
account. It is known as a term deposit or time deposit.
Important Feature
• Customers can avail loans against FDs up to 80 to 90 percent of the value of

deposits. The rate of interest on the loan could be 1 to 2 percent over the rate
offered on the deposit.
• Residents of India can open these accounts for a minimum of 3 months.
• Investing in a fixed deposit earns you a higher interest rate than depositing your
money in a saving account.
• The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and The longest
permissible term for FDs is 10 years.
Demat Account
• The full form of Demat Account is Dematerialized account. A Demat Account is an

account that allows investors to hold their shares in an electronic form. Demat
account functions like a bank account, where you hold your money and
respective entries are done in bank passbook.
CASA Account
• CASA stands for current and savings account ratio. CASA ratio of a bank is the
ratio of deposits in current and saving accounts to total deposits.
RAFA Account
• RAFA stands for Recurring Deposit Account Fixed Deposit Account. The RAFA
ratio shows how much deposit a bank has in the form of Recurring and fixed
deposits.
NRI ACCOUNTS
• NRO ( Non-Resident Ordinary Rupees) Account

• NRE ( Non-Resident External Rupees) Account
• FCNR ( Foreign Currency Non-Resident ) Account NRO ( Non-Resident Ordinary
Rupees) Account
Different Between NRE and NRO account
Basis NRE Account NRO Account

Acronym Non Resident External Non Resident Ordinary Account
Account
Meaning It is an account of an NRI to It is an account of an NRI to manage the
transfer foreign earnings to income earned in India
India
Taxability Interest earned is tax free Interest earned is taxable
Repatriability Can repatriate Can repatriate the interest amount, the
principle amount can be repatriated
within the set limits
Joint Account Can be opened by two NRIs Can be opened by an NRI along with an
Indian citizen or another NRI
Deposits and Can deposit in foreign Can deposit in foreign as well as Indian
Withdrawals currency, and withdraw in currency, and withdraw in Indian
Indian currency currency
Exchange Rate Prone to risk Not prone to risk
Risk
Chapter 8: Types of Payment Cards, Fund transfer

service
Plastic money is a term used to represent the hard plastic cards used in day to day life
in place of actual banknotes. They come in several forms such as debit cards, credit cards,
store cards and pre-paid cash cards. The plastic cards began to be used widely after 1970
when the specific standards were set for a magnetic strip. In 1981, the concept of Credit
cards was introduced in India and was on the verge of an exceptional boom.
Today the domestic card industry is applied with different types of cards from gold, silver,
global, smart to secure, co-branded credit cards, etc. the list is endless. There is enormous
growth potential in the domestic card industry.
Types Of Plastic Money
Charge Card: A charge card has similar features of credit cards. However, after using a
charge card, it is necessary to pay the whole amount of bill till the due date. If the person
defaults to pay the amount of the charge card, then he has to pay the late payment
charges.
Visa & MasterCard: Visa & MasterCard are international non-profit organizations. They
are dedicated to promoting the growth of the business of cards across the globe. They
have designed a wide network of merchant institutions by keeping in mind that the
customers might use their credit cards to make several transactions worldwide.
Debit Cards: The debit card is an encoded plastic card which is issued by banks and has
replaced with the cheques. It allows the customers to pay in exchange for goods and
services without carrying cash. It is a multipurpose card, as it can be used as an ATM to
withdraw the money and check the balance of the bank account. It is issued by bank free
of cost with the savings or current account. It is one of the best online-payment tools
where the amount of purchase is immediately subtracted from the account of the
customer and credited to the merchant’s account. It has overcome the delay in the
payment process.
There are presently two ways in which debit cards transactions are processed:
i)Online debit (also known as a PIN)
ii)Offline debit (also known as signature debit
ATM Cards: These cards are typically used at ATMs to withdraw money, transfer funds
and make deposits. ATM cards are used by inserting the card into a machine and enter a
PIN or personal number for security purpose. The system checks the account for
sufficient funds before allowing any transaction.
Fund transfer services
• National Electronic Funds Transfer (NEFT)

• Real-time gross settlement (RTGS)
• Immediate Payment Service (IMPS)
Chapter 9: Basel I, II and III
Basel Accords
The Basel Accords refer to the banking supervision Accords (recommendations on

banking regulations)—Basel I, Basel II and Basel III—issued by the Basel Committee
on Banking Supervision (BCBS). They are called the Basel Accords as the BCBS
maintains its secretariat at the Bank for International Settlements in Basel, Switzerland
and the committee normally meets there. The Basel Accords is a set of
recommendations for regulations in the banking industry.
Basel I
Basel I is the round of deliberations by central bankers from around the world, and in
1988, the Basel Committee on Banking Supervision (BCBS) in Basel, Switzerland,
published a set of minimum capital requirements for banks. This is also known as the
1988 Basel Accord, and was enforced by law in the Group of Ten (G-10) countries in
1992. Basel I norms set a minimum capital requirements for banks. It defined capital
requirement and structure of risk weights for banks. The goal was to minimize credit
risk i.e. the defaults on a credit or loan when the borrower is unable to pay back to the
bank.
Basel-II
The Basel II Accord was published initially in June 2004 and was intended to amend
international banking standards that controlled how much capital banks were
required to hold to guard against the financial and operational risks banks face. These
regulations aimed to ensure that the more significant the risk a bank is exposed to, the
greater the amount of capital the bank needs to hold to safeguard its solvency and
overall economic stability.
Basel II was implemented in the years prior to 2008, Basel II uses a “three pillars”
concept – (1) minimum capital requirements (addressing risk), (2) supervisory review
and (3) market discipline.
Basel-III
Basel III (or the Third Basel Accord or Basel Standards) is a global, voluntary
regulatory framework on bank capital adequacy, stress testing, and market liquidity
risk. This third installment of the Basel Accords (see Basel I, Basel II) was developed
in response to the deficiencies in financial regulation revealed by the financial
crisis of 2007–08. It is intended to strengthen bank capital requirements by increasing
bank liquidity and decreasing bank leverage.
Basel III was agreed upon by the members of the Basel Committee on Banking
Supervision in November 2010, and was scheduled to be introduced from 2013 until
2015; however, implementation was extended repeatedly to 31 March 2019. It has
now been decided to extend the dispensation of enhanced HTM of 22 per cent up
to March 31, 2023 to include securities acquired between April 1, 2021 and March
31, 2022
Chapter 10: NPA & SARFAESI Act, 2002

What is NPA
NPA Meaning (Non-performing Assets) – All those assets which don’t generate regular
income are known as NPA.
Types of assets
• Standard assets :- Assets which are generating regular income to the bank
• Sub-standard assets :- An asset which is overdue for a period of more than 90
days but less than 12 months
• Doubtful assets :- An asset which is overdue for a period of more than 12
months.
• Loss assets :- Assets which are doubtful and considered as non-recoverable by
bank, internal or external auditor or central bank inspectors
• Sub-standard assets, Doubtful assets and Loss assets are NPA.
SARFAESI Act, 2002
Narasimham Committee I and II and Andhyarujina Committee was constituted by

the Central Government for the purpose of examining banking sector reforms have
considered the need for changes in the legal system in respect of these areas. Amongst
the other committees, these Committees have made suggestions to form new legislation
for securitization and empowering banks and financial institutions to gain possession of
the securities and to sell them without any intervention of the court here.
Applicability Of SARFAESI Act, 2002
The amendment to this Act is “an act to regulate securitization and reconstruction of
financial assets and enforcement of security interest and to provide for a central
database of security interests created on property rights, and for matters connected
therewith or incidental thereto.”
The Act deals with the following:
• Registration and regulation of Asset Reconstruction Companies (ARCs) by the

Reserve Bank of India
• Facilitating securitization of financial assets of banks and financial institutions
with or without the benefit of underlying securities
• Promotion of seamless transferability of financial assets by the ARC to acquire
financial assets of banks and financial institutions through the issuance of
debentures or bonds or any other security as a debenture
• Entrusting the Asset Reconstruction Companies to raise funds by issue of
security receipts to qualified buyers
• Facilitating the reconstruction of financial assets which are acquired while
exercising powers of enforcement of securities or change of management or
other powers which are proposed to be conferred on the banks and financial
institutions
• Presentation of any securitization company or asset reconstruction company
registered with the Reserve Bank of India as a public financial institution
• Defining ‘security interest’ to be any type of security including mortgage and
change on immovable properties given for due repayment of any financial
assistance given by any bank or financial institution
• Classification of the borrower’s account as a non-performing asset in accordance
with the directions given or under guidelines issued by the Reserve Bank of India
from time to time
• The officers authorized will exercise the rights of a secured creditor in this
behalf in accordance with the rules made by the Central Government
• An appeal against the action of any bank or financial institution to the concerned
Debts Recovery Tribunal and a second appeal to the Appellate Debts Recovery
Tribunal
• The Central Government may set up or cause to be set up a Central Registry for
the purpose of registration of transactions relating to securitization, asset
reconstruction and creation of the security interest
• Application of the proposed legislation initially to banks and financial
institutions and empowerment of the Central Government to extend the
application of the proposed legislation to non-banking financial companies and
other entities
• Non-application of the proposed legislation to security interests in agricultural
lands, loans less than rupees one lakh and cases where eighty per cent, of the
loans, is repaid by the borrower
Objectives of SARFAESI Act, 2002
• Efficient or rapid recovery of non-performing assets (NPAs) of the banks and Fis.
• Allows banks and financial institutions to auction properties (say,
commercial/residential) when borrower fail to repay their loans.
Chapter 11: LIBOR & MIBOR, SWIFT Codes for

banks
Chapter 12: Banking Ombudsman Scheme (India) &

CIBIL
Bank Credit
What Is Bank Credit?
Bank credit is the total amount of credit available to a business or individual from a
banking institution. It consists of the total amount of combined funds that financial
institutions provide to an individual or business. A business or individual’s bank credit
depends on the borrower’s ability to repay the loan and the total amount of credit
available in the banking institution.
How Bank Credit Works
Bank credit is the total borrowing capacity banks provide to borrowers. The credit
allows borrowers to buy goods or services. Bank Credit requires a fixed minimum
monthly payment for a certified period
Priority Sector lending

Priority Sector refers to those sectors of the economy which may not get timely and
adequate credit.
Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to
the banks for providing a specified portion of the bank lending to few specific sectors.
The sectors may be agriculture and allied activities, micro and small enterprises, poor
people for housing, students for education and other low income groups and weaker
sections.
This is essentially meant for an all round development of the economy as opposed to
focusing only on the financial sector.
As per the RBI circular released in 2016, there are eight broad categories of the
Priority Sector Lending.
They are: (1) Agriculture (2) Micro, Small and Medium Enterprises (3) Export Credit
(4) Education (5) Housing (6) Social Infrastructure (7) Renewable Energy (8) Others.
The others category includes personal loans to weaker section, loans to distressed
persons, loans to state sponsored organisations for SC/ST.
Banks Mergers
Banking order (Largest to Smallest)
• State Bank of India

• PNB +OBC +United Bank:- Punjab National Bank
• Bank of Baroda + Vijya Bank+ Dena Bank:- Bank of Baroda
• Canara + Syndicate Bank:- Canara Bank
• Union Bank + Andhra Bank +Corporation Bank: Bank of India
• Indian Bank + Allahabad Bank:- Indian Bank
• Central bank of India
• Indian Overseas Bank
• UCO Bank
• Bank of Maharashtra
• Punjab and Sind Bank
Chapter 13: Important Terms
Retail banking
Retail banking, also known as consumer banking, is the provision of services by a bank
to the general public, rather than to companies, corporations or other banks, which are
often described as wholesale banking. Banking services which are regarded as retail
include provision of savings and transactional accounts, mortgages, personal loans,
debit cards, and credit cards. Retail banking is also distinguished from investment
banking or commercial banking.
Call money
Call money is money loaned by a bank that must be repaid on demand. The money that
is lent for one day in this market is known as “Call money“.
Notice Money
In the call money is usually availed for one day. If the bank needs funds for more days, it
can avail money through notice market. Here, the loan is provided from two days to
fourteen days. This is called notice money.
Green Banking
Green banking aims at improving the operations and technology along with making the
clients habits environment-friendly in the banking business.
It is like normal banking i. e. in addition to financing social activities does business in
environmental activities including its financing.
Skimming
Skimming is a tactic used predominantly for credit-card fraud. Credit card fraud is a
wide-ranging term for theft and fraud committed using or involving a payment card,
such as a credit card or debit card, as a fraudulent source of funds in a transaction. The
purpose may be to obtain goods without paying, or to obtain unauthorized funds from
an account.
Proportional reserve system
Under the proportional reserve system, certain proportion of currency notes (40%) are
backed by gold and silver reserves and the remaining part of the note issue by approved
securities.
Minimum Reserve System
RBI is required to maintain a Gold and Foreign Exchange Reserves of Rs. 200 Crore of
which at least Rs. 115 Crore should be in Gold. This is called Minimum Reserve system.
Camels rating
The CELS ratings or Camels rating is a supervisory rating system originally developed in
the U.S. to classify a bank’s overall condition. It is applied to every bank and credit union
in the U.S. It also implemented outside the U.S. by various banking supervisory
regulators.
Each factor is assigned a weight as follows:
• Capital adequacy -20 %
• Asset quality -20%
• Management- 25%
• Earnings -15%
• Liquidity- 10%
• Sensitivity -10%
Core banking Solution
Core (Centralized Online Real-time Exchange) banking is a banking service provided by
a group of networked bank branches where customers may access their bank account
and perform basic transactions from any of the member branch offices.
Unified Payments Interface
Unified Payments Interface (UPI) is an instant real-time payment system developed by
National Payments Corporation of India facilitating inter-bank transactions. UPI is a
payment system that allows money transfer between any two bank accounts by using a
smartphone.
UPI allows a customer to pay directly from a bank account to different merchants, both
online and offline, without the hassle of typing credit card details, IFSC code, or net
banking/wallet passwords.
The Balance of Trade
The difference of the country’s exports and the value of its imports are known as the
Balance of Trade.
Important features:
• The cost of production (land, labor, capital, taxes, incentives, etc.) in the
exporting economy vis-à-vis those in the importing economy;
• Currency exchange rate movements;
• Multilateral, bilateral and unilateral taxes or restrictions on trade;
• The availability of adequate foreign exchange with which to pay for imports; and
Prices of goods manufactured at home (influenced by the responsiveness of
supply).
A Balance of Payments
The balance of payments, also known as balance of international payments and
abbreviated B.O.P. or BoP, of a country is the record of all economic transactions
between the residents of the country and the rest of the world in a particular period of
(generally 1 year).
Cheque Truncation System (CTS)

Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a
project of the Reserve Bank of India (RBI), commenced in 2010, for faster clearing of
cheques. CTS is based on a cheque truncation or online image-based cheque clearing
system where cheque images and magnetic ink character recognition (MICR) data are
captured at the collecting bank branch and transmitted electronically.
Cheque truncation means stopping the flow of the physical cheques issued by a drawer
to the drawee branch.
Shadow banking system
The shadow banking system is a term for the collection of non-bank financial
intermediaries that provide services similar to traditional commercial banks but
outside normal banking regulations. Likes Non-banking financial companies (NBFCs)
The shadow banking sector plays an important role in promoting financial inclusion.
The main Benefits of shadow banks lie in their ability to reduce transaction costs, their
quick decision making ability, and customer orientation and prompt delivery of
services. But there is also a risk in shadow banking practice in any economy because
they can take their own decisions.
Special drawing rights
Special drawing rights are supplementary foreign-exchange reserve assets defined and
maintained by the International Monetary Fund (IMF).The SDR is the unit of account for
the IMF, and is not a currency per se. SDRs instead represent a claim to currency held by
IMF member countries for which they may be exchanged. The SDR was created in 1969
to supplement a shortfall of preferred foreign-exchange reserve assets, namely gold and
the U.S. dollar.
Participatory Notes
Participatory Notes commonly known as P-Notes or PNs are instruments issued by
registered foreign institutional investors (FII) to overseas investors, who wish to invest
in the Indian stock markets without registering themselves with the market regulator,
the Securities and Exchange Board of India – SEBI.
Participatory notes are instruments used for making investments in the stock markets.
However, they are not used within the country. They are used outside India for making
investments in shares listed in the Indian stock market.
Liabilities of A Bank
In the simplest of terms, the bank’s liabilities are deposits, money that people deposit
with the bank, because the banks owes that money to the depositors.
Below are some of the products
• Capital and Reserves

• Savings account, current account, salary account
• Fixed deposits
• Recurring deposits
• Insurance
Assets of a Bank
The asset products are those in which the customer is liable to pay to the bank.
In banking term Assets are loans the banks makes to borrowers.
Any type of loans like
• Cash
• Money at Call at Short Notice
• Investments
• Loans, Advances and Bills Discounted-or Purchased
• Demand Loans
• Term Loans
• personal loan, car loan, education loan Etc
• Credit card
Initial Public Offering (IPO)

Initial public offering (IPO) or stock market launch is a type of public offering in which
shares of a company are sold to institutional investors and usually also retail
(individual) investors; an IPO is underwritten by one or more investment banks, who
also arrange for the shares to be listed on one or more stock exchanges. Through this
process, colloquially known as floating, or going public, a privately held company is
transformed into a public company. Initial public offerings can be used: to raise new
equity capital for the company concerned; to monetize the investments of private
shareholders such as company founders or private equity investors; and to enable easy
trading of existing holdings or future capital raising by becoming publicly traded
enterprises.
Advantages of IPO
• Enlarging and diversifying equity base

• Enabling cheaper access to capital
• Increasing exposure, prestige, and public image
• Attracting and retaining better management and employees through liquid
equity participation
• Facilitating acquisitions (potentially in return for shares of stock)
• Creating multiple financing opportunities: equity, convertible debt, cheaper bank
loans, etc.
Mortgage
A loan used to buy real estate. A mortgage is secured by the property it is used to
purchase. One must make monthly payments on a mortgage, and there is a set term
before full payment is due, often 15, 20, or 30 years. Some mortgages have fixed interest
rates, while others have variable interest rates. If one defaults on a mortgage, the bank
making it may take possession of the real estate and sell it to recover its investment.
Some banks, notably savings and loans, specialize in making mortgage loans.
Chapter 14: Micro, Small and Medium Enterprise in

India
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006,
governs the coverage and investment ceiling of MSMEs in India.
According to the Act, there are two categories of MSMEs in the country –
Manufacturing: Manufacturing Enterprises-he enterprises engaged in the

manufacture or production of goods pertaining to any industry specified in the first
schedule to the industries (Development and regulation) Act, 1951) or employing
plant and machinery in the process of value addition to the final product having a
distinct name or character or use. The Manufacturing Enterprise are defined in terms of
investment in Plant & Machinery.
Service Enterprises:-The enterprises engaged in providing or rendering of

services and are defined in terms of investment in equipment.. The limit for investment
in plant and machinery / equipment for manufacturing / service enterprises, as
notified,vide S.O. 1642I dtd.29-09-2006 are as under
Composite Criteria: Investment in Plant & Machinery/equipment and

Annual Turnover
Classification Micro Small Medium
Investment in Investment in Investment in

Plant and Plant and Plant and
Machinery or Machinery or Machinery or
Equipment: Equipment: Equipment:
Not more than Not more than Not more than
Manufacturing Rs.1 crore and Rs.10 crore Rs.50 crore
Enterprises and Annual and Annual and Annual
Enterprises Turnover ; not Turnover ; not Turnover ; not
rendering more than Rs. more than Rs. more than Rs.
Services 5 crore 50 crore 250 crore
Performance & Credit Rating Scheme

This scheme seeks to establish independent, trusted third party opinion on capabilities
and credit-worthiness of MSEs, and makes credit available at attractive interest rates
and will ensure better productivity. Under this scheme (as per the turnover of the MSE)
a percent of Rating Agency charges are reimbursed by Ministry of SSI.
Scheme Benefits & Highlights
The fee to be paid to the rating agencies shall be based on the turnover of the Small-
Scale Units which has been categorized into three slabs. The slabs of the Turnover and
the Share of Ministry of SSI towards the fee charged by the Rating Agency is as follow:
Turnover of MSE Re-imbursement of fee through NSIC:
• Up to Rs. 50 lakh – 75% of the fee or INR25,000 (whichever is less)
• Above Rs. 50 to 200 lakh – 75% of the fee or INR30,000 (whichever is less)
• More than Rs. 200 lakh – 75% of the fee or INR40,000 (whichever is less)
Credit Guarantee
Any collateral / third party guarantee free credit facility (both fund as well as non fund
based) extended by eligible institutions, to new as well as existing Micro and Small
Enterprise, including Service Enterprises, with a maximum credit cap of of 200 lakh
(Rupees Two Hundred lakh only) are eligible to be covered. Recently, guarantee
coverage made eligible to select NBFCs and Small Finance banks.
The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% &
85% of the sanctioned amount of the credit facility. The extent of guarantee cover is
85% for micro enterprises for credit up to 5 lakh. The extent of guarantee cover is 50%
of the sanctioned amount of the credit facility for credit from 10 lakh to 100 lakh per
MSE borrower for retail trade activity.
The extent of guarantee cover is 80%(i) Micro and Small Enterprises operated and/or
owned by women; and (ii) all credits/loans in the North East Region (NER) for credit
facilities upto 50 lakh. In case of default, Trust settles the claim up to 75% of the
amount in default of the credit facility extended by the lending institution for credit
facilities upto 200 lakh.
Category Maximum extent of Guarantee where credit facility is
Upto 5 lakh Above 5 lakh Above 50 lakh
upto 50 lakh upto 200 lakh
Micro Enterprises 85% of the 75% of the amount 75% of the amount
amount in in default subject to a in default subject to a
default subject maximum of 37.50 maximum of 150
to a maximum lakh lakh
of 4.25 lakh
Women entrepreneurs/ 80% of the amount in default subject
Units located in North East to a maximum of 40 lakh
Region (incl. Sikkim) (other
than credit facility upto 5

lakh to micro enterprises)
All other category of 75% of the amount in default subject

borrowers to a maximum of 37.50 lakh
Activity From 10 lakh upto 100 lakh
MSE Retail Trade 50% of the amount in default subject to a maximum of 50 lakh
Chapter 15: All Government Schemes launched in

2022
1.Pradhan Mantri Awas Yojana (PMAY)- Pradhanmantri Awas Yojana is an initiative of
the Government of India which aims to provide affordable housing to the urban people
by the year 2022. The scheme was first launched on 25th June 2015. The interest rate for
Pradhanmantri always Yojana starts at 6.5 0% per annum and can be availed for up to 20
years. The last date for availing Pradhanmantri Awas Yojana scheme for EWS and LIG
category was extended to 31st March 2022.
Features of PMAY
• The subsidiary interest rate is 6.50 % per annum.

• Differently abled and senior citizens will be given the preference of ground floors
• The construction of houses includes sustainable and eco-friendly technology.
• In the scheme 4041 towns are included in the entire urban area of the country and
500 class 1 cities are given priority.
2.Pradhan Mantri Garib Kalyan Anna Yojana- Pradhanmantri Garib Kalyan Anya
Yojana or the prime minister’s food security scheme for the poor was launched on the
26th March 2020 during the Covid-19 in India. Pradhanmantri Garib Kalyan and Yojana
promise to give 5 kg rice or wheat, and 1 kg dal to each person holding a ration card. It is
the largest food security program in the world. Initially, the program was for 3 months in
2020 which included 80 crore ration cards. In 2022 the union cabinet has approved the
extension of the Pradhan Mantri Garib Kalyan Anna Yojana for another 4 months.
3.Meri Policy Mere Hath- It was launched under the Pradhan Mantri fasal Bima Yojana.
It is a doorstep distribution drive that grants crop insurance to the farmers for upcoming
seasons. The policy makes sure that farmer communities are well informed and fully
equipped with information. The funds for support will be granted under the Pradhan
Mantri Fasal Bima Yojana and financial support to the farmers suffering from crop loss or
damage will be given. Pradhanmantri Fasal Bima Yojana launched by prime minister
Narendra Modi on 18th February 2016 at Sehore Madhya Pradesh has completed 6 years
4.Rashtriya Uchchatar Shiksha Abhiyan- RUSA provides strategic funding to the

eligible state higher educational institute. The funding flows from the Central ministry to
state governments to the state higher educational institutes. It aims to attend a higher
level of access equity and excellence in the state higher education system with greater
efficiency transparency responsiveness and accountability.
5.Support for marginal individuals for livelihood and enterprise (SMILE)- The
scheme’s focus is on rehabilitation, provision of medical facilities, counseling, basic
documentation, skill development, economic linkage, etc. The scheme is formulated
under the ministry of social justice and empowerment and executed with the help of State
Government and union territory governments community-based organizations, local
urban bodies, nongovernmental organizations, institutes, and others.6. Jal Jeevan yojana-
The Jal Jeevan mission aims to provide four crore tap water connections in rural
households in 2022. In a recent webinar, the prime minister stressed the use of
technology service delivery and community participation to achieve the goal of the Jal
Jeevan Mission by 2024. The union budget has allocated rupees 60,000 crores for the Jal
Jeevan mission in 2022.
6. Jalshakti Abhiyan 2022- The scheme was launched on 2021 March 22. In 2022 the Jal
Shakti Abhiyan campaign launched a new initiative catch the rain campaign from 29
March 2022 to 30th November 2022.
26 Important Scheme of Narendra Modi
There are a total of 26 significant schemes.
• The Jan Dhan Yojna. (August 28, 2014)

• Skill India Mission (August 28th, 2014)
• Indian-made – September 28, 2014
• Mission Swachh Bharat – 2nd of October, 2014
• Sansad Adarsh Gram Yojana – 11th of October, 2014
• Shramev Jayate Yojana – 16th of October, 2014
• Beti Bachao Beti Padhao (January 22, 2015)
• Hridaya Plan for the 21st of January, 2015
• PM Mudra Yojna. (8th of April, 2015)
• Ujala Yojana – 1st of May, 2015
• A total pension yojna – 9th of May, 2015
• Jyoti Jyoti Bima Yojna, Prime Minister – 9th of May, 2015
• The Pradhan Mantri Suraksha Bima Yojana
• Smart city initiative – 9th of May, 2015
• AMRUT Strategy – 25th of June, 2015
• Mission for Digital India – 2nd of July, 2015
• Gold Monetization Plan – 5th of November, 2015
• Scheme for Sovereign Gold Bonds – 5th of November, 2015
• UDAY, November 20th, 2015
• Start-up India, January 16
• Setu Bhartam Yojna – 4th of March, 2016!
• Stand Up, India! – 5th of April, 2016 stand up India
• Gramoday Se Bharat Uday – April 14-24, 2016
• Prime Minister Ujjwala’s Plan – 1st of May, 2016

• Namami Gange Yojana – 7th of July, 2016.
• SATAT Scheme , – October2018
Part 2: Banking and Financial News PDF

2022 (May to Oct)
Topic 1: List of Banks who has been imposed
penalty by RBI in 2022
• RBI imposed penalties of Rs 93 lakh each on Axis and IDBI Bank for various
violations, including those related to KYC guidelines.
• RBI imposed Rs 17.63 lakh monetary penalty on Manappuram Finance for
non-compliance of KYC, PPI norms (in exercise of powers vested in RBI
under Section 30 of the Payment and Settlement Systems Act, 2007.)
• RBI imposed penalty of Rs. 1.12 crores on Bank of Maharashtra for non-
compliance
• RBI imposed Rs. 59 lakh penalty on KEB Hana Bank for non-compliance with
the certain norms related to ‘interest rate on deposits.
• RBI imposed monetary penalty of Rs. 49 lakh on Bassein Catholic Co-operative Bank and
Rs. 50,000 on JilaSahakariKendriya Bank Maryadit
• RBI imposed monetary penalty of Rs 27.50 lakh on Punjab & Sind Bank for
non-compliance with certain directions issued by it on ‘external benchmark-
based lending’.
• SEBI imposed Rs. 7 crore penalty on NSE and Rs 5 crore on former MD &
CEO Chitra Ramkrishna in the ‘dark fibre’ case.
• RBI imposed 70lacs penalties on Federal Bank and Bank of India for
violating regulatory norms
• RBI imposed 1.67cr. penalties on Ola Financial Services for non-compliance
provisions (RBI under Section 30 of the Payment and Settlement Systems Act,
2007.)
• RBI imposed monetary penalty of Rs 32 lakhs on Indian Bank for breach of
directions on classification & reporting of frauds
• RBI imposed Rs 2.33 crore monetary penalty on Spandana Sphoorty
Financial Ltd Non-Banking Financial Company – Micro Finance Institutions
(NBFC-MFIs).
Topic 2: List of Banks whose licence has been

canceled by RBI in 2022
• RBI cancelled licence of Sarjeraodada Naik Shirala Sahakari Bank, Sangli,
Maharashtra
• RBI cancelled license of People’s Co-operative Bank Ltd Kanpur, UP
• RBI cancelled licence of Mudhol Co-op Bank, Bagalkot, Karnataka

• RBI suspended license of Karnataka based Millath Co-operative Bank
• RBI canceled the license of Rupee Co-operative Bank, Pune
• RBI canceled license of Deccan Urban Co-operative Bank, Karnataka
• RBI canceled the licence of Seva Vikas Co-operative Bank Ltd., Pune
• RBI canceled licence of Maharashtra-based Laxmi Cooperative Bank
Topic 3: Important Committees

May
Committee Headed by Purpose
for recovery of money from the defaulters against
whom National Spot Exchange (NSEL) has secured
money decrees.
NSEL has already secured decrees and arbitration
Supreme Court
award of ₹3,534 crore against the defaulters. Further,
appointed high-level
Pradeep defaulters’ liabilities of ₹760 crore have already
committee for recovery
Nandrajog been crystallised by the committee appointed by
of money from NSEL
the Bombay High Court.
defaulters
The Supreme Court-appointed committee will oversee
sale of assets, attached by the Maharashtra
government under the MPID Act and Enforcement
Directorate across India.
to make recommendations to the capital markets
SEBI restructured 18- regulator on improving market safety, efficiency, and
member Secondary Gurumoorthy transparency.
Market Advisory Mahalingam The panel previously consisted of 17 members and
Committee (SMAC) was headed by SEBI chairperson Madhabi Puri
Buch.
The terms of reference of the committee include
SEBI constituted
Enhancements in business responsibility and
Advisory Committee for
sustainability report, ESG ratings, and ESG
Environmental, Social
Navneet Munot investing.
and Governance (ESG)
It will examine evolving disclosures/metrics
related matters in the
relevant to the Indian context and suggest areas for
securities market
assurance and a plan for implementation.
The Reserve Bank of India (RBI) under the
chairmanship of Former Deputy Governor B.P.
Kanungo has constituted a committee to review
RBI constituted Customer Service Standards in RBI Regulated Entities
committee to review (REs) and for examining and reviewing the state of
customer service B.P. Kanungo customer service in the REs and adequacy of customer
standards at banks, service regulations.
NBFCs The mandate of the committee is also to suggest
measures to improve customer service. The
Committee will submit its report within three months
from the date of its first meeting.
The Inter-State Council, which works to promote and

support cooperative federalism in the country, has been
Reconstituted Inter- Prime Minister reconstituted with Prime Minister Narendra Modi
State Council Narendra Modi as chairman and chief ministers of all states, six
Union ministers as members, and Ten Union
Ministers as permanent invitees.
Union Government also reconstituted the Standing
Committee of the Inter-State Council with the
Union Home Minister Amit Shah as its Chairman. The
Standing Committee of
Amit Shah union ministers who were made members of the
the Inter-State Council
council are: Rajnath Singh, Amit Shah, Nirmala
Sitharaman, Narendra Singh Tomar, Virendra Kumar,
Hardeep Singh Puri.
to oversee the affairs of the All India Football
Federation and the adoption of its constitution in
Supreme Court
accordance with the National Sports Code and model
appointed 3-member
guidelines.
Committee of
The COA will include two previous members — Dr SY
Administrators (CoA) to AR Dave
Qureshi, former Chief Election Commissioner,
manage functioning of
and Bhaskar Ganguly, former captain of the Indian
All India Football
Football Team, in addition to Retired Justice Dave,
Federation (AIFF)
according to a bench of Justices DY Chandrachud,
Surya Kant, and PS Narasimha.
Other members of the committee are: Delhi High Court
judge Pramod Kohli, ex-state chief secretaries
Uttarakhand formed 5-
Shatrughan Singh, Manu Gaud and Surekha
member drafting
Dangwal.
committee to Ranjana Desai
The UCC is referred to a common set of laws
implement Uniform
governing personal matters such as marriage,
Civil Code
divorce, adoption, inheritance and succession for all
citizens, irrespective of religion.
Insurance Regulatory and Development Authority
of India (IRDAI) has formed various committees
through the General Insurance Council (GIC) to
overhaul the insurance sector.
The committees formed through GIC will suggest
reforms in the various areas of general, reinsurance
IRDAI set up
and life insurance.
committees through
These committees were set up after new IRDAI
GIC to suggest
Chairman Debasish Panda held an interaction with
insurance sector
insurance industry players in April 2022.
overhaul
Around 5 committees have been formed to suggest
the changes in the general insurance, and non-life
insurance and 2 panels to explore the reinsurance
segment. Loknath Kar, the former ex-legal head of
ICICI Lombard and PwC (PricewaterhouseCoopers),
was roped in to draft the reports.
June

Cabinet Committee on Economic Affairs chaired by Prime
Minister Narendra Modi approved the proposal for
Cabinet Prime Minister development of Phase 1 of new greenfield airport in
Committee Narendra Modi Dholera, Gujarat at an estimated cost of Rs. 1,305 crores.
The project is estimated to be completed by 2025-26.
First-ever India-European Union (EU) Security and
First-ever
Defence Consultations held in Brussels, on June 10,
India-European
2022. Consultations were co-chaired by Joint secretary
Union (EU)
Brussels of Ministry of Defence Somnath Ghosh and Joint
Security and
Secretary (Europe West) of Ministry of External Affairs
Defence
(MEA) Sandeep Chakravorty from India and Director
Consultations
Security and Defence Policy, from European Union.
The Internet and Mobile Association of India (IAMAI)
announced setting up a committee to hold public policy
IAMAI set up a consultations for building an industry network of VC
committee to firms.
Vikas Agnihotri
study issues Vikas Agnihotri, operating partner at SoftBank
faced Investment Advisers, will chair the committee.
Shweta Rajpal Kohli , chief public policy officer, Sequoia
India and Southeast Asia, will be the co-chair.
Markets regulator Securities and Exchange Board of
India (SEBI) has restructured its advisory committee
SEBI
on mutual funds.
restructured its
Mutual Funds Usha Thorat
The 25-member advisory committee will be chaired
Advisory
by former Deputy Governor of the Reserve Bank of India
Committee
(RBI) Usha Thorat. Earlier, the panel had 24 members.
July
To empower consumers and
product buyers in the local
market, harmonize trade
The Department of between the original
Nidhi Khatri
Consumer Affairs equipment manufacturers
and the third-party buyers
and sellers.
To conduct ‘performance
and efficiency’ audit of
capital procurements,
Apex Committee The defence secretary
logistics, inventory and
maintenance of assets of the
armed forces.
The committee will look at

Under the chairmanship of ways to make available MSP
Committee on Minimum
Former Agriculture Secretary to farmers by making the
Support Price
Sanjay Agrawal. system more effective and
transparent.
August

Foreign Portfolio Investors Former Chief Economic To attract foreign investment
(FPIs) Adviser KV Subramanian
September
Chairmanship of former For drafting of the national
The constitution of a
Union Minister, Suresh cooperation policy
national-level committee
Prabhu
To consider a "legally
The central government has enforceable" mechanism for
V K Paul, member (health)
formed a 5-member regulating the marketing
of NITI Aayog
committee practices of pharmaceutical
firms
October
Ms. Neeta Prasad, Joint
Secretary, International To monitor and oversee the
Cooperation, Ministry of implementation of the MoU
6th meeting of the India- Education from the Indian on Cooperation in the field
Norway Joint Working side and by Ms. Anne Line of Higher Education signed
Group on Higher Education Wold, Director General, between India and Norway
Ministry of Education and on 25 April'22.
Research from the
Norwegian side
The committee will prepare
and implement the “Tamil
Nadu Action Plan for
The principal chief
The “Vulture Conservation Vulture Conservation
conservator of forests and
Committee” (TNAPVC)” and chalk out and
chief wildlife warden
implement a regulatory
mechanism to ban drugs toxic
to vultures.
Topic 4: List of Merger and Acquisition

May
Merger Company About
This acquisition under the Airtel Startup Accelerator Program is a part
Bharti Airtel acquired
of Bharti Airtel’s Network as a Service (NaaS) proposition for small
7% stake in Cnergee
and medium businesses (SMBs) looking to shift to cloud-based
Technologies
solutions.
L&T Infotech and Mindtree, two independently listed IT services
companies under Larsen & Toubro Group have announced merger that
L&T Infotech and would create India's fifth-largest IT services provider.
Mindtree announced This combined entity will be known as LTIMindtree This proposed
merger integration will see Mindtree and LTI join strengths to create an
efficient and scaled up IT services provider exceeding USD 3.5
billion.
The Reserve Bank of India (RBI) has issued a No-Objection Certificate
(NoC) with conditions to the proposal for the voluntary merger
of Equitas Holdings Limited and Equitas Small Finance Bank, a
Equitas SFB merged subsidiary of Equitas Holdings Limited.
with Equitas Holdings The merger is being carried out to comply with RBI small finance
bank (SFB) norms, which require the promoter to reduce its stake in the
subsidiary to 40% within five years of commencement of operations by
the SFB.
Food delivery major Swiggy has acquired table reservation platform
Swiggy acquired Dineout for an undisclosed amount.
Dineout Reports have noted that it is a $200-million deal. Dineout will continue
to operate as an independent app post the acquisition.
Adani Group which belongs to Gautam Adani is set to acquire swiss
multinational company Holcim’s stake in Indian companies Ambuja
Cements and its subsidiary ACC for $10.5 billion (around Rs 81,361
Adani Group bought crore), including the open offers.
Ambuja Cements, ACC
from Holcim The value for the Holcim stake and open offer consideration for Ambuja
Cements and ACC is USD 10.5 billion, which makes this the largest-
ever acquisition by Adani, and India’s largest-ever M&A transaction in
the infrastructure and materials space.
Ruchi Soya, an edible oil company, has announced that it will buy
Ruchi Soya acquired Patanjali Ayurved’s food division for Rs 690 crore.
Patanjali Ayurveds After regulatory permissions, the name of Ruchi Soya Industries Ltd
Food Business would be changed to Patanjali Foods Ltd. Ghee, honey, spices, juices,
and wheat are among the 21 products in the acquired food industry.
Emirates Telecom
bought 9.8% stake in Emirates Telecommunications Group Company PJSC “e&" (Etisalat
Vodafone Group) has acquired approximately 2,766 million shares in
Vodafone Group Plc aggregating to $4.4 billion. The shares represent

9.8% of Vodafone's issued share capital.
Flipkart’s PhonePe, an Indian payments business backed by Walmart
Phonepe acquired Inc., acquired two wealth management firms for $75 million in total.
Wealthdesk & OpenQ WealthDesk will cost roughly $50 million, while OpenQ will cost
nearly $25 million, including debt.
IDBI Bank has barged into a share purchase agreement to sell its
remaining 25% stake in private sector life insurer Ageas Federal Life
Insurance for Rs 580 crore.
It will help Ageas, one of the few foreign insurers to increase its stake in
IDBI Bank sold 25%
its Indian insurance joint venture to 74 percent after the government
stake in Ageas Federal
raised the FDI cap in the insurance sector.
Life Insurance
Ageas Insurance International now owns 49% of the private sector life
insurer Ageas Federal Life Insurance, while Federal Bank owns
26%. Ageas Insurance International will increase its investment in the
insurance company to 74% after purchasing IDBI Bank’s 25% interest.
Singapore’s sovereign wealth fund, GIC is acquiring a 7.5% equity
stake in Aditya Birla Fashion and Retail (ABFRL) for Rs 2,195 crore.
GIC bought 7.5% stake in The investment will be made by way of preferential equity and
Aditya Birla Fashion warrants. In the first tranche, the GIC will invest Rs 770 crore, while
and Retail the rest amount of Rs 1,425 crore would be infused within 18 months.
After the investment, Aditya Birla Group will hold a controlling stake of
51.9% in the company.
French oil and gas major, TotalEnergies will acquire a minority stake of
10% or more in Adani group’s hydrogen business under the newly
formed company Adani New Industries Ltd (ANIL).
In India, Total had earlier partnered with Adani in 2018 with
TotalEnergies bought investments in Adani Gas Limited, city gas distribution business,
stake in Adani’s associated LNG terminal business and gas marketing business.
hydrogen business
Total acquired 37.4% stake in Adani Gas Limited and 50% stake
in Dhamra LNG project. Total and Adani agreed the acquisition of a 50%
stake in a 2.35 GWac portfolio of operating solar assets owned by Adani
Gas and a 20% stake in Adani Green Energy for a global investment of
$2.5 billion.
Cabinet Committee on Economic Affairs (CCEA) has approved
the government's 29.5% stake sale in Hindustan Zinc Ltd (HZL).
CCEA cleared sale of
GoI’s 29.5% stake in The sale of a 29.58% stake represents more than 124.96 crore shares
Hindustan Zinc which would raise around Rs 38,000 crores at the current market
price. The government has budgeted Rs. 65,000 crores from PSU
disinvestment and strategic sale.
June
HDFC has done the This collaboration will aim the HDFC's lending lifecycle
collaboration with global paper-less and nimble.
information technology This will also upgrade the customer experience and will provide
services and consulting firm greater operational agility and efficiency, and drive business
growth.
Fino Payments Bank Limited has partnered with Go Digit
General Insurance Limited to provide small and medium
Fino Payments Bank business owners with shop insurance coverage.
collaborated with Go Digit Through the partnership, small and medium businesses are
allowed to take advantage of Digit’s My Business Policy in
the case of a catastrophe.
Zomato (Online food delivery platform) has announced the
acquisition of Blink Commerce (Blinkit), earlier known as
Grofers India.
Zomato acquired Blinkit
The company’s Board of Directors approved a proposal to
acquire cash-strapped quick commerce company Blinkit for Rs
4,447 crore.
July
Google International LLC and Airtel have

entered into an investment agreement to buy a
Google's 1.28% stake buy in Bharti Airtel minority and non-controlling stake of 1.28 per
cent of equity share capital in the telecom
player. USD 1 Billion
August
The Competition Commission of India (CCI) has

approved the proposed Rs 4,500 crore deal wherein
IDFC Asset Management and IDFC AMC Trustee the Bandhan Financial Holdings-led consortium will
buy stakes in IDFC Asset Management and IDFC
AMC Trustee.
HDFC Property Ventures and HDFC Venture Cap The combined platform will advise and manage
to be merged with HDFC Capital Advisors around $4.1 billion of assets and this makes it the
largest private equity firm in India.
Adani Group acquired a 29.2% stake in New

Delhi Television Ltd (NDTV)
September
The nation's largest lender State Bank of India The collaboration will enables NRIs to send money
(SBI) has collaborated with Remitly through SBI via Remitly to their family members by
using mobile and web applications.
Oct
To bring India’s first 5G enabled immersive

experience to visitors at the Indian Mobile
Airtel joined hand with Nokia Congress (IMC) 2022.
To bring 5G to Kashi Vishwanath temple and

Statue of Unity
Topic 5: List of Partnership/Agreement

May
Partnership/ Agreement Aim
Tata Power Limited signed MoU
to install up to 5,000 EV charging points across the
with National Real Estate
properties of NAREDCO's members in Mumbai.
Development Council
Maharashtra.
(NAREDCO)
for setting up a semiconductor fab plant in the state at a
Karnataka government signed
cost of Rs 22,900 crore (USD 3 billion). The project will
pact with ISMC Analog Fab
be implemented over a period of seven years and generate
Private Limited (Israel-based)
1,500 jobs.
Red Shield Division of the to establish Centre for Excellence and wellness for
Indian Army signed a coaching and making underprivileged students of
Tripartite MoU with the State Manipur eligible for admission to the best colleges and
Bank of India Foundation universities in India.
(SIBF) and training partner
National Integrity and The project is named Manipur Super 50 and will be fully
Educational Development functional for the first batch of 50 students by the first
Organization (NIEDO) week of July 2022.
to launch DBS Business Class foundED.

This is in line with DBS Bank’s vision to support
DBS Bank India partnered with entrepreneurs and innovators.
Headstart Network Foundation
and Anthill Ventures The 1st DBS Business Class foundED event was held in
Hyderabad, Telangana with Actor investor, and
entrepreneur Rana Daggubati as keynote speaker.
to offer Yes Bank customers with seamless connected
Fidypay partnered with Yes banking experience.
Bank This initiative will let a wide range of businesses,
including Small and Medium Enterprises (SMEs),
Fintechs, and start-ups, access digital services.
To launch ‘skill loans’. Under this facility, the loan is
Canara Bank tied-up with ranging from ₹5,000 to ₹1.5 lakh.
Additional Skill Acquisition This loan can be availed of by students who are pursuing
Programme (ASAP), Kerala skill training programmes which are offered by ASAP
Kerala or any other Central or State government-
recognised agencies.
to facilitate the banking requirements of corporates
operating across both countries.
ICICI Bank partnered with The memorandum of understanding (MoU) between ICICI
Santander UK Plc and Santander UK Plc is designed to establish a
framework of the partnership between the banks to
meet the financial service requirements of corporate
customers operating within the India-UK corridor.
Ministry of Rural Development This MoU will enable the Self-Help Group (SHG)
signed a Non-Financial MoU with entrepreneurs under Deen Dayal Antyodaya Yojana –
Amazon Seller Services Private National Rural Livelihoods Mission (DAY-NRLM) to offer
Limited their products to the buyers across India through
AmazonSaheli Storefront.
Assam Rifles inked MoU with to establish a Centre of Excellence and Wellness to secure
Axis Bank and National a better future for the youth of Nagaland.
Integrity and Educational The centre named after Late Capt N Kenguruse MVC
Development Organisation Centre of Excellence and Wellness will be located at
(NIEDO) Chieswema in Kohima district.
to deliver universal payments interface (UPI)
payments, which will include peer-to-peer and peer-to-
RBL Bank tied up with Amazon merchant transactions.
Pay and Amazon Web Services Amazon Pay would grant RBL Bank a UPI ID with the
(AWS) handle @rapl from the National Payments Corporation of
India (NPCI), resulting in a simplified payments experience
using RBL Bank’s cloud-based processing infrastructure.
Maharashtra signed MoUs worth More than 55% of investment would come from Singapore,
Rs 30,000 crores with 23 Indonesia, USA, and Japan.
companies at World Economic Microsoft will set up its Data Centre in Pune with an
Forum in Davos investment of 3,200 crore rupees.
UCO Bank has entered into a co-lending agreement for

UCO Bank signed co-lending agricultural business with Paisalo Digital Limited.
agreement with Paisalo Digital
The co-lending agreement aims to tap into the Rs. 8 lakh
Ltd
crore market for small-ticket loans for the 365 million
people who are unbanked and underserved.
to digitize the nation's payment ecosystem and provide a

wider scope to transact for its customers in rural India.
Mahagram partnered with The partnership between the two aims to boost financial
IndusInd Bank inclusion, encourage socio-economic development,
mitigate the risks of a shadow economy, and accelerate the
growth of a cashless society.
to develop first-of-its-kind simulation-based training

centre ‘Wargame Research and Development Centre’ in
a military zone in New Delhi.
Army Training Command (ATC) A prototype name ‘WARDEC’ has been given to this project
signed MoU with Rashtriya and use artificial intelligence (AI) to design virtual
Raksha University (RRU) reality wargames.
The centre will be used by the Army to train its
soldiers and test their strategies through “metaverse-
enabled gameplay”.
Rajasthan is the first state in India to institutionalise

health accounts with the help of World Health
Organisation (WHO) to estimate the amount spent on the
WHO partnered with Rajasthan health sector and its impact.
government
Efforts are now made to create health accounts in
Rajasthan with sufficient capacity with the aid from the
WHO.
Northern Arc Capital has announced a joint venture

(JV) with Indian Bank, which will help both institutions
leverage synergies and offer customer-centric financial
Indian Bank partnered with solutions to borrowers in the retail segment.
Northern Arc Capital
This move will help Indian Bank by gaining access to
Northen Arc's n-POS platform which helps fintechs,
NBFCs and investors co-lend to retail loan borrowers.
June
ICICI Bank partnered with ICICI Bank has partnered with ZestMoney to expand its
ZestMoney ‘Cardless EMI’ facility for purchases at retail and e-commerce
platforms.
The partnership enhances the affordability of millions of
customers of the bank who can use pre-approved cardless
credit to instantly buy products/ services using ZestMoney
and take care of the cost into EMIs.
Ather Energy, an electric two-wheeler manufacturer based in
Bengaluru, Karnataka, has partnered with the State Bank of
India to offer vehicle financing for its customers.
Ather Energy partnered with
This partnership will enable the customers of Ather Energy,
SBI
having pre-approved loan offers from SBI, to get instant
loans at low-interest rates starting from 9.55% per
annum.
LinkedIn Corporation has invested USD 5,00,000 (₹3.88
crore) in association with UN Women for the LINK Women
project to create employment opportunities for women.
LinkedIn partnered with UN The pilot project will launch in Maharashtra to cultivate
the digital, soft and employability skills of 2,000 women.
Women
Aim: To create a cadre of women who will acquire new digital
and employability skills, leading to better jobs
ONDC and NABARD have come together to host the NABARD

Open Network for Digital ONDC Grand Challenge to establish market linkages for the
Commerce has joined hands enabled players with market ready Farmers Producers
with National Bank for Organizations.
Agriculture and Rural
Development (NABARD) Objective - To promote development of innovative
solutions that are likely to aid adoption of e-commerce in the
agricultural sector.
CARD91 has joined hands with RuPay and Yes Bank, to

create a card management system.
Partnership to create a card CARD91 is a global payment infrastructure powering
management system business to business (B2B) payment announced a strategic
partnership with YES BANK and RuPay, the flagship product
of National Payments Corporation of India (NPCI).
Liberty General Insurance has signed an agreement with
Peerless Financial Product Distribution Limited (PFPDL)
Partnered to enable the to enable the distribution of Liberty’s retail and
distribution of Liberty’s Commercial line of products.
retail and Commercial line of The product distribution across the country will be done
products through the 42 branches of Peerless.
Liberty is working closely with PFPDL to provide training
and operational expertise.
Airtel Payments Bank has partnered with Muthoot
Finance to offer gold loans through Airtel Thanks app.
Airtel Payments Bank There will be no-processing charge on the loan. Muthoot
partnered with Muthoot Finance will provide up to 75 per cent of the pledged gold
Finance value as a loan.
The loan facility will also be available at the 5 lakh banking
points for Airtel Payments Bank.
July
Chipmaker Renesas Electronics Corp and
India’s Tata Motors and Japanese India’s Tata Motors have partnership to design,
chipmaker Renesas Electronics Corp develop and manufacture semiconductor
solutions.
Engineers India (EIL), New Delhi & CSIR- For joint commercialization of Earthquake
CSIO, Chandigarh, signed an agreement Warning System
AAI will operate and manage the airports and

provide all necessary services. Communication
AAI signed an agreement with government Navigation Surveillance/Air Traffic
of Uttar Pradesh Management (CNS/ATM) services will also be
provided by AAI.
The Indian Institute of Entrepreneurship, To boost the entrepreneurial ecosystem in the

Guwahati and the Indian Institute of northeastern region
Management (IIM) Shillong signed an
agreement
• To launch of Dining Delights for the bank

customers.
Axis Bank partnered with EazyDiner • To serve customers who want choice,
variety and convenience while dining out.
Edelweiss General Insurance (EGI) has To provide travel insurance to Indian students
partnered with Avanse Financial Services going abroad for higher education.
The partnership will see all the branches of

Paschim Banga Gramin Bank across West Bengal
offer SBI Life’s range of protection, wealth
The Paschim Banga Gramin Bank has creation, credit life, annuity and savings
joined hands with SBI Life Insurance products, thereby increasing accessibility of life
insurance solutions in the region.
South Indian Bank signed an agreement To enable digital collection of payments at eco-
tourism centres, Vanasree shops, mobile
with Kerala Forest Department
Vanasree units and eco-shops across the State.
City Union Bank (CUB) has signed a To distribute the latter’s insurance products
corporate agency agreement with Shriram through its network of branches across the
General Insurance country.
The National Payments Corporation of To co-create a master’s programme in

India (NPCI) has partnered with Jamnalal management studies in digital payments for its
employees.
Bajaj Institute of Management Studies
(JBIMS)
Hindustan Aeronautics (HAL) and Safran To create a new joint venture intended to
Helicopter Engines have signed an develop helicopter engines.
agreement
Delhi government has joined hands with To create employment opportunities for
students of the Delhi Skill and
the UNICEF
Entrepreneurship University (DSEU).
Tata AIA Life Insurance Co. Ltd partnered To offer life and health insurance solutions to the
with City Union Bank Bank’s consumers
To implement safety incident detection by

deploying T-Pulse HSSE Monitoring System,
Vedanta partners with IIT Madras
based on artificial intelligence (AI), across all its
business units.
To discover, nurture and develop Indian

athletes from across the country and provide
them with world-class facilities, coaching and
Reliance Industries Limited (RIL) sports science and medicine support by
partnered with the Athletics Federation of leveraging the Reliance Foundation ecosystem
India (AFI) including the Odisha Reliance Foundation
Athletics High-Performance Center and Sir HN
Reliance Foundation Hospital.
To set up a call centre in collaboration with non-

profit Indian Society of Agribusiness
NASSCOM partnered with Google Professionals (ISAP) to help women farmers
scale up their business. It’s called the ‘DigiVaani’
Call Center.
Partner to form an asset reconstruction

company to sell bad loans of the bank valuing Rs
48,000 crore.
Yes Bank partnered with JC Flowers ARC The bank has signed a binding term sheet with
JCF ARC LLC and JC Flowers Asset
Reconstruction Pvt. Ltd. For this strategic
partnership.
The ONGC has signed gas sale agreements

with GAIL India and Assam Gas Company To monetize its upcoming field at Khubal in
Ltd (AGCL) North Tripura district.
To boost start-ups in the maritime sector.

To augment initiatives to develop an ecosystem
Cochin Shipyard signed an agreement with for supporting the startups in the maritime
IIM Kozhikode sector from the technical, regulatory, financial,
and marketing points of view by bringing the
stakeholders together.
Innovations for Defence Excellence (iDEX) is
the flagship initiative of the Department of
The defence ministry has signed the 100th
Defence Production and it was rolled out to
contract under a framework called ‘iDEX’ encourage start-ups and other such entities
engaged in defence innovation.
Bharat Forge subsidiary BF Infrastructure For manufacturing high-speed passenger

has signed an agreement with Talgo trains in India.
For distribution of health insurance products

City Union Bank partnered with Aditya
through the bank’s network.
Birla Health Insurance
August

Reliance, Ola and Rajesh Exports signed For battery manufacturing
an agreement To create battery manufacturing capacity of
about 95-gigawatt hour.
Amazon India has signed an agreement
To boost its delivery services in the country.
with Indian Railways
European plane manufacturer Airbus
To provide aircraft maintenance training to
has signed an agreement with the GMR
young engineers.
Group
SVC Bank signed an agreement with To extend refinance facility to facilitate improved
SIDBI credit flow to MSMEs
HDFC Bank partnered with M1xchange To make a debut in the Trade receivables
Discounting System (TReDs) platform.
IDFC FIRST Bank partnered with
To explore synergies and support the startup
LetsVenture ecosystem by offering curated products and
solutions to startups, founders and investors.
Paytm partnered with Piramal Finance
To further expand its merchant loan business
to small towns and villages of India.
YES Bank joined hands with IBSFINtech
This partnership will strengthen the corporate
treasury ecosystem with a strong decision-
making tool and automated workflows.
ONGC signed an agreement with For deep-water exploration on the east and the
ExxonMobil west coasts of India.
The two companies will focus on the Krishna-

Godavari and Cauvery basins in the eastern
offshore and the Kutch-Mumbai region in the
western offshore.
Yes Bank partnered with SellerApp To adopt Open Network Digital Commerce
(ONDC).
This partnership will help them to expand their

digital commerce footprint.
Paytm has partnered with Samsung To provide smart payments as well as its loan
stores across India service Paytm Postpaid through deployment of
point-of-sale devices.
MasterCard partnered with badminton
players (Lakshya Sen, Kidambi Srikanth,
Satwiksairaj Rankireddy, and Chirag To promote digital payments in India.
Shetty)
Global escrow banking solution provider Castler

Castler partnered with Yes Bank has partnered with Yes Bank to offer digital
escrow services for the bank's customers.
September
All-India Council for Technical Education To accelerate digital creativity skills across India.
(AICTE) has signed an agreement with US-based
Adobe
Athletics Federation of India (AFI) has To support women athletes of the country, especially the
partnered with HSBC India youngsters.
Mahindra Finance has partnered with CRIF To offer a seamless onboarding experience for customers
Solutions Private (CRIF) seeking loans
Muthoot FinCorp Limited has partnered with To expand its money remittance services between the
IME India Pvt. Ltd. Indo-Nepal corridor.
IndusInd Bank has partnered with Asian To support and promote supply chain finance solutions in
Development Bank (ADB) India.
India and Bangladesh have signed an interim For the Kushiyara River.
water sharing agreement
The Hindustan Aeronautics Limited and Larsen Rs 860 crore deal from New Space India Limited to
& Toubro consortium build five rockets.
IDFC First Bank has partnered with Open To enable early adoption of the network among its
Network for Digital Commerce (ONDC) customers.
NITI Aayog in partnered with World Resources India has launched the country's 1st national electric
Institute (WRI) freight platform- e-FAST India (Electric Freight
Accelerator for Sustainable Transport).
Objective - To raise awareness on freight electrification

bolstered by on-ground demonstration pilots &
evidence-based research.
NTPC Ltd has entered into an agreement to the To supply Renewable Energy Power.
armed forces (Military Engineering Services)
International Business Machines has partnered To advance quantum computing skill development and
with IIT Madras research in India.
Airtel and IBM tied up To deploy Airtel's edge computing platform
Agro-chemical firm UPL Ltd. has announced a To set up a hybrid solar-wind energy power plant in
joint venture with CleanMax Enviro Energy Gujarat.
Solutions (CleanMax)
Hero MotoCorp has joined hands with Hindustan To set up charging infrastructure for electric two-
Petroleum Corporation Ltd (HPCL) wheelers in the country.
India signed an agreement with Egypt To further enhance bilateral defence cooperation
The Monetary Authority of Singapore (MAS) To facilitate regulatory collaboration in FinTech

agreement with India's International Financial technology.
Services Centres Authority (IFSCA)
UK-based TerraPay has partnered with NPCI To enable cross-border transactions via Unified
International Payments Ltd (NIPL) Payments Interface (UPI).
The Royal Society of Chemistry (RSC) and the To support an outreach programme designed to promote
Council for Industry and Scientific Research the chemical sciences in schools and universities.
(CSIR) have partnered
National Hydro Electric Power Corporation For undertaking R&D activities in the field of science,
(NHPC) Ltd & IIT Jammu have signed a pact for engineering & technology.
availing services of the IIT Jammu
India and the Netherlands have signed a joint To Formalize the bilateral Fast-Track Mechanism
statement between the two countries.
October
India signed an agreement with Armenia To export missiles, rockets & ammunition.
India Navy signed an agreement with New To White Shipping Information Exchange
Zealand Navy
Finland partnered with Kerala government To implement the Little KITEs programme by Kerala
Education Department in their country’s schools.
Google Cloud has announced its empanelment To solve complex problems for government
by the Ministry of Electronics and Information organizations.
Technology (MeitY), allowing it to apply cloud
technology
Tata Power partnered with 75F Smart To jointly promote automation and energy-efficiency
Innovations solutions in the commercial building space
The International Cricket Council (ICC) & To empower women & girls & promote inclusion and
United Nations International Children's gender equality through cricket.
Emergency Fund (UNICEF)
AI-driven financial wellness platform CASHe To provide a ’travel now pay later’ (TNPL) payment
has partnered with Indian Railways Catering option on its travel app IRCTC Rail Connect
and Tourism Corporation (IRCTC)
Mahindra Finance partnered with India Post To further enhance credit access to a larger customer
Payments Bank base.
Indian multinational conglomerate Tata in To manufacture C295 transport aircraft for IAF in
partnership with Airbus Gujarat
The Steel Authority of India Limited (SAIL) has To facilitate commercial operations from Rourkela,
signed an agreement with the Airport Odisha
Authority of India (AAI)
The Comprehensive Economic Partnership Retail jewellery major Malabar Gold and Diamonds
Agreement (CEPA) between India and the UAE has become the first jeweller in India to import 25 kg
gold
Topic 6: List of loan agreement for India from

different organizations 2022
March
Loan To which
Organization/Bank Purpose
Amount country
emergency support for Ukraine to finance
expenditures and shore up the balance of
payments.
International The disbursement under the IMF's Rapid
Monetary Fund $1.4 billion Ukraine Financing Instrument (RFI), equivalent to
(IMF) 50% of Ukraine's quota in the IMF, will
help fund urgent spending needs in the short
term, while helping to catalyze financing
from other partners.
Government of India, Government of West
$125
World Bank India Bengal, and World Bank has signed $125
million
million IBRD loan to support efforts to help
poor and vulnerable groups access social

protection services in West Bengal.
World Bank runs more than 400 programs
for social assistance, care services, and jobs
under umbrella platform called Jai
Bangla.
April
Loan To which
Amount country
The government authorised a World
Bank-backed programme costing USD 808
million to aid and improve the functioning
of the country’s Micro, Small and Medium
Enterprises (MSMEs) under a programme
called ‘Raising and Accelerating MSME
$500
World Bank’s India Performance’ (RAMP).
million
The loan from the World Bank’s
International Bank for Reconstruction
and Development will be for USD 500
million, with the remaining $308 million
coming from the Centre, according to the
statement.
While addressing the 5th BIMSTEC
Summit, PM Modi announced that India
USD 1
India BIMSTEC will provide USD 1 million to the
million
BIMSTEC secretariat to increase its
operational budget.
ADB and HSBC India have agreed to set up
a USD 100 million partial guarantee
program to help over 400,000 micro-
borrowers and largely women-owned
Asian Development microenterprises across India.
USD 100 It is the ADB’s first partnership with
Bank and HSBC India
Million HSBC, and under the terms of the
India
agreement, an equivalent of USD 30
million in aggregate financing would be
disbursed to three Microfinance
Institutions (MFIs) in India by April
2022 to stimulate the partnership.
JICA signed Japanese ODA (Official
development assistance) Loan
Japan International 312.258 Agreements with the Government of
Cooperation Agency billion India India in Delhi, to provide Japanese ODA
(JICA) Yen loans of up to a total of 312.258 billion
Yen for 7 projects.
The 7 projects are:
1. The Dedicated Freight Corridor

Project (Phase 2) (III)
2. Chennai Metro Project (Phase 2)(II)
3. Bengaluru Water Supply and
Sewerage Project (Phase 3) (II)
4. North East Road Network
Connectivity Improvement Project
(Phase 6)
5. Tamil Nadu Biodiversity
Conservation and Greening Project
for Climate Change Response
6. Assam Health System Strengthening
Project
7. Uttarakhand Integrated
Horticulture Development Project
The World Bank and Asian
Infrastructure Investment Bank (AIIB)
Gujarat’s
will provide a loan of Rs 7,500 crore to
Mission
Rs 7,500 the government of Gujarat for its ‘Mission
World Bank & AIIB School of
crores School of Excellence project’.
Excellence
The ‘Mission Schools of Excellence’ will
Project
be implemented in the next five years at an
estimated cost of Rs 10,000 crore.
Axis Bank signed a Partial Guarantee
Facility Agreement (PGFA) with the ADB
for a partial guarantee programme with
initial outlay of USD 150 million.
This milestone project is ADB’s first
Asian Development USD 150
Axis Bank supply chain finance transaction in
Bank (ADB) million
India. To make it easier for small and
medium-sized enterprises (SMEs) in
India to participate in trade through
environmental and socially sustainable
supply chains.
ADB and the Government of India have
signed a USD 2 million Project Readiness
Financing (PRF) Loan for strengthening
the institutional capacity, designing
Asian Development $2
Nagaland urban infrastructures that are climate-
Bank (ADB) million
resilient, and improving the
mobilization of municipal resources in
Nagaland’s 16 district headquarter towns
(DHTs).
United Nations UNDP and partners of the Adaptation
Development Innovation Marketplace (AIM) have
$2.2
Programme (UNDP) announced $2.2 million in climate action
million
and partners of the funding for 22 local innovators from 19
Adaptation countries, including India.
Innovation The Adaptation Fund Climate

Marketplace (AIM) Innovation Accelerator
(AFCIA) window’s first round of funding
will improve local climate action and
speed the achievement of the Paris
Agreement’s and Sustainable
Development Goals’ ambitions.
ADB sanctioned an amount of $76.25
million or Rs 551 crore for three specific
projects under the Agartala Smart City
Limited (ASCL). The ADB agreed to fund
$76.25 23 kilometres of road by retrofitting 15
Asian Development million or stretches at a cost of Rs 444 crore, revive
Agartala
Bank (ADB) Rs 551 lakes and water bodies of Maharaja Bir
crore Bikram College and its adjoining areas at
Rs 30.67 crore and renovate and restore
Ujjayanta Palace and its surrounding at Rs
35.68 crore in the current financial year in
a phased manner.
India will provide an additional $500
million financial assistance to Sri Lanka
to buy fuel as the latter is facing worst
financial crisis. This will be the second
$500
India Sri Lanka $500 million India has provided in fuel
million
credit to a Sri Lanka Government. India
also extended two credit lines worth
over $2 billion to help buy food,
medicines and other essentials.
SIDBI has provided the first approval
under the SIDBI Cluster Development
Fund (SCDF) to
Small Industries the Maharashtra Government.
₹600 The ₹600 crore aid has been approved for
Development Bank Maharashtra
crore reviving/ upgrading ITIs/polytechnics
of India (SIDBI)
run by the Directorate of Vocational
Education and Training under the
Department of Skills, Employment,
Entrepreneurship and Innovation.
World Bank will provide financial
assistance to Sri Lanka of USD 600
dollars to meet the payment
requirements for essential imports. Sri
USD 600
World Bank Sri Lanka Lanka has also talked with the
million
International Monetary Fund (IMF) for
financial assistance, but the country
needs 3 to 4 billion dollars in bridge
financing to help meet its essential
expenses. India has helped Sri Lanka by

assisting with USD 1.9 billion
The World Bank has approved a USD 47
million financial support to the
Government of India for the Mission
Karmayogi, a national program to build
civil service capacity.
$47 The loan of $47 million provided from the
World Bank India
million International Bank for Reconstruction
and Development (IBRD) has a final
maturity of 11 years, including a grace
period of 4.5 years. Mission Karmayogi
was launched by Union Cabinet on 2nd
September 2020.
The Assam cabinet approved raising Rs
National Bank for 170.15 crore as loan assistance from
Agriculture and Rs 170.15 NABARD for 15 projects of the Public
Assam
Rural Development crore Works Department (Roads). The projects
(NABARD) include 12 embankments cum roads and
three rural bridges.
May
To
Organization which
Loan Amount Purpose
/ Bank country
/state
Exim Bank has entered into an agreement
with the SBM (Mauritius) Infrastructure
Export- Development Company Ltd (SBMIDCL) to
USD 190
Import Bank Mauritius provide the latter with a USD 190 million
million
of India Government of India-backed Line of Credit
(LoC) for Metro Express & Infrastructure
Projects I Mauritius.
for the Systems Reform Endeavors for
Transformed Health Achievement in
Gujarat (SRESTHA-G) project.
USD 350 The SRESTHA-G project will be worth USD
World bank Gujarat
million 500 million, with the World Bank
contributing USD 350 million. The project
will include transforming key health
delivery systems in the state.
The World Bank has announced actions it
World Bank USD 30 billion plans to take as part of a comprehensive,
global response to the ongoing food
security crisis, with up to $30 billion

financing in existing and new projects.
Financing will be provided in the areas like
nutrition, agriculture, water, social
protection, and irrigation so as to address
the ongoing food insecurity across the globe
over the next 15 months.
June
Loan To which
Amount country
Hong Kong and Shanghai Banking
Corporation Limited, India (HSBC India)
Hong Kong and
$250 has announced USD 250 million in lending
Shanghai Banking India
Million support for high-growth, technology-led
Corporation Limited
start-ups in India, which has the world’s
third largest start-up ecosystem.
The World Bank has approved additional
financing of USD 250 million for Outcomes
for Accelerated Learning.
It is a program which aims to improve
education results for children across
USD 250
World Bank Gujarat Gujarat state.
million
This financing will benefit an additional
3,000 schools that have been
disproportionately affected by the COVID-
19 pandemic.
Objective – Lower the greenhouse gas

emissions.
The watershed department will carry out the
Rs 1000
World Bank Uttrakhand Uttrakhand climate Responsive rain-fed
crore
Farming Project. It will also encourage
environment friendly agricultural practices.
The United States has announced a funding

of USD 122 million to top three Indian
medical research institutions to prevent
avoidable epidemics, early detection of
$122
United States India disease threats, and rapid and effective
million
response.
The total funding of USD 122,475,000 from
Centres for Disease Control and
Prevention (CDC) will, over a period of five
years, be distributed to the top three Indian

health research institutions - ICMR, NIV and
NIE.
for the rail logistics project to help reduce
USD 245- India’s high carbon emissions and low
World Bank India modal freight share in the railways.
million
for the Indian government's road safety

USD 250 programme that addresses the high road
World Bank India
million accident fatality rate in the country.
July
Loan To which
Amount country
Two complementary loans totaling $500
million each were authorized by the
$500 India’s health
World Bank World Bank Board of Executive Directors
million sector
to help and develop the health sector in
India.
The Chhattisgarh government has
received an in-principle nod from the
USD 300 Chhattisgarh
World Bank Centre to ho head with a $300 million
Million government
school education project the state is
negotiating with the world bank.
United
Nations
Relief and
Works In support of core UNRWA services to
USD 2.5
India Agency for Palestine refugees across the Middle East
million
Palestine since 2018.
Refugees in
the Near East
(UNRWA)
For safe drinking water and sanitation
project in Himachal Pradesh.
USD 96.3 Himachal The loan has been provided under the
ADB
million Pradesh Himachal Pradesh Rural Drinking Water
Improvement and Livelihood Project.
the Meghalaya Ecotourism Infrastructure
Development Project. Investments will
79 million
NDB Meghalaya foster much-needed infrastructure in
USD
Meghalaya state that will lead to the
establishment of 5 ecotourism circuits.
The project includes the construction of

114km of roads and bridges.
70 Million Lamphelpat Waterbody Rejuvenation
NDB India Project.
USD
September
Loan To which
Amount country
India has emerged as the largest bilateral lender for
A total of Sri Lanka, overtaking China.
India 968 million Sri Lanka India has provided a total of 968 million US
US dollars dollars in loans to the island nation in four months
of 2022.
World Bank has approved a loan of $150 million
loan of $150
(nearly ₹1,200 crores) to Punjab to help it better
million
manage its financial resources and improve
World Bank (nearly Punjab
access to public services.
₹1,200
The $150 million loan has a maturity period of 15
crores)
years which includes 6 months period.
a loan of
For spending on healthcare services.
$350 million
World Bank Gujarat It will be specially focused on adolescent girls &
(over ₹2,832
disease surveillance.
crores)
Topic 7: Budget 2022
Budget 2022 in Details
Important Point
• FM Nirmala Sitharaman's 4th Budget speech

• GDP growth in 2021-23 expected to be 9.2%, says Nirmala Sitharaman
• PLI in 14 sectors for aatmanirbhar bharat to create 6 million jobs
• Budget seeks to set tone for the 'Amrit kaal' of the next 25 years
• Farm procurement value for FY23 to be Rs 2.37 trillion
• HKen-Betwa river link project to be taken at cost of Rs 44,000 cr to benefit
900,000 farmers
• Rs 2 trillion outay for MSMEs
• 38 mn households to get piped water
• 75 digital banking systems in 75 districts by scheduled commercial banks
• Contracts for implementation of multimodal logistics parks at 4 locations to be
awarded in 2022-23 in PPP Mode
• IIIT-B to provide support to healthcare infrastructurem
• Divestment target for FY23 seen at Rs 65,000 crore.
• India’s economic growth estimated at 2% to be the highest among all large

economies.
• 60 lakh new jobs to be created under the productivity linked incentive scheme
in 14
• PLI Schemes have the potential to create an additional production of Rs 30
lakh
• Entering Amrit Kaal, the 25 year long lead up to India @100, the budget provides
impetus for growth along four priorities:
Focus areas of Budget
• PM GatiShakti
• Inclusive Development
• Productivity Enhancement & Investment, Sunrise opportunities, Energy
Transition, and Climate Action.
• Financing of investments
PM GatiShakti
• The seven engines that drive PM GatiShakti are Roads, Railways, Airports,
Ports, Mass Transport, Waterways and Logistics Infrastructure.
PM GatiShkati National Master Plan
• The scope of PM GatiShakti National Master Plan will encompass the seven
engines for economic transformation, seamless multimodal connectivity and
logistics
• The projects pertaining to these 7 engines in the National Infrastructure Pipeline
will be aligned with PM GatiShakti framework.
Road Transport
• National Highways Network to be expanded by 25000 Km in 2022-23.

• Rs 20000 Crore to be mobilized for National Highways Network
Multimodal Logistics Parks
• Contracts to be awarded through PPP mode in 2022-23 for implementation of

Multimodal Logistics Parks at four
Railways
• One Station One Product concept to help local businesses & supply
• 2000 Km of railway network to be brought under Kavach, the indigenous
world class technology and capacity augmentation in 2022-23.
• 400 new generation Vande Bharat Trains to be manufactured during the next
three
• 100 PM GatiShakti Cargo terminals for multimodal logistics to be developed
during the next three
Parvatmala
• National Ropeways Development Program, Parvatmala to be taken up on PPP

mode.
• Contracts to be awarded in 2022-23 for 8 ropeway projects of 60 Km length.
Inclusive Development
Agriculture
• 2.37 lakh crore direct payment to 1.63 crore farmers for procurement of
wheat and paddy.
• Chemical free Natural farming to be promoted throughout the Initial focus is on
farmer’s lands in 5 Km wide corridors along river Ganga.
• NABARD to facilitate fund with blended capital to finance startups for agriculture
& rural
• ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of
insecticides and
Ken Betwa project
• 1400 crore outlay for implementation of the Ken – Betwa link project.
• 9.8 lakh hectares of farmers’ lands to receive irrigation benefits by Ken-Betwa
link project.
MSME
• Udyam, e-shram, NCS and ASEEM portals to be

• 130 lakh MSMEs provided additional credit under Emergency Credit Linked
Guarantee Scheme (ECLGS)
• ECLGS to be extended up to March
• Guarantee cover under ECLGS to be expanded by Rs 50000 Crore to total cover
of Rs 5 Lakh Crore.
• Rs 2 lakh Crore additional credit for Micro and Small Enterprises to be
facilitated under the Credit Guarantee Trust for Micro and Small Enterprises
(CGTMSE).
• Raising and Accelerating MSME performance (RAMP) programme with
outlay of Rs 6000 Crore to be rolled out.
Skill Development
• Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be

launched to empower citizens to skill, reskill or upskill through on-line
• Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-
Service (DrAAS).
Education
• ‘One class-One TV channel’ programme of PM eVIDYA to be expanded to 200

TV
• Virtual labs and skilling e-labs to be set up to promote critical thinking skills and
simulated learning
• High-quality e-content will be developed for delivery through Digital
• Digital University for world-class quality universal education with personalised
learning experience to be
Health
• An open platform for National Digital Health Ecosystem to be rolled out.

• ‘National Tele Mental Health Programme’ for quality mental health
counselling and care services to be
• A network of 23 tele-mental health centres of excellence will be set up, with
NIMHANS being the nodal centre and International Institute of Information
Technology- Bangalore (IIITB) providing technology
Saksham Anganwadi
• Integrated benefits to women and children through Mission Shakti, Mission

Vatsalya, Saksham Anganwadi and Poshan 2.0.
• Two lakh anganwadis to be upgraded to Saksham
Har Ghar, Nal Se Jal
• 60,000 crore allocated to cover 3.8 crore households in 2022-23 under Har
Ghar, Nal se Jal.
Housing for All
• 48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM

Awas Yojana.
Prime Minister’s Development Initiative for North-East Region (PM-DevINE)
• New scheme PM-DevINE launched to fund infrastructure and social development

projects in the North-East.
• An initial allocation of 1,500 crore made to enable livelihood activities for youth
and women under the scheme.
Vibrant Villages Programme
• Vibrant Villages Programme for development of Border villages with sparse

population, limited connectivity and infrastructure on the northern border.
Banking
• 100 per cent of 5 lakh post offices to come on the core banking system.
• Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75

districts.
e-Passport
• e-Passports with embedded chip and futuristic technology to be rolled
Urban Planning
• Modernization of building byelaws, Town Planning Schemes (TPS), and Transit

Oriented Development (TOD) will be
• Battery swapping policy to be brought out for setting up charging stations at
scale in urban
Land Records Management
• Unique Land Parcel Identification Number for IT-based management of land
Accelerated Corporate Exit
• Centre for Processing Accelerated Corporate Exit (C-PACE) to be established

for speedy winding-up of
AVGC Promotion Task Force
• An animation, visual effects, gaming, and comic (AVGC) promotion task

force to be set-up to realize the potential of this sector.
Telecom Sector
• Scheme for design-led manufacturing to be launched to build a strong ecosystem

for 5G as part of the Production Linked Incentive
Export Promotion
• Special Economic Zones Act to be replaced with a new legislation to enable

States to become partners in ‘Development of Enterprise and Service Hubs’.
AtmaNirbharta in Defence:
• 68% of capital procurement budget earmarked for domestic industry in

2022-23, up from 58% in 2021-22.
• Defence R&D to be opened up for industry, startups and academia with 25% of
defence R&D budget earmarked.
• Independent nodal umbrella body to be set up for meeting testing and
certification
Sunrise Opportunities
• Government contribution to be provided for R&D in Sunrise Opportunities like

Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its
eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and
Clean Mobility
Energy Transition and Climate Action:
• Additional allocation of 19,500 crore for Production Linked Incentive for

manufacture of high efficiency solar modules to meet the goal of 280 GW of
installed solar power by 2030.
• Five to seven per cent biomass pellets to be co-fired in thermal power
plants:
1. CO2 savings of 38 MMT annually,

2. Extra income to farmers and job opportunities to locals,
3. Help avoid stubble burning in agriculture
• Four pilot projects to be set up for coal gasification and conversion of coal
into chemicals for the industry
• Financial support to farmers belonging to Scheduled Castes and Scheduled
Tribes, who want to take up agro-forestry.
Financing of investments
Public Capital Investment:
• Public investment to continue to pump-prime private investment and demand in

2022-23.
• Outlay for capital expenditure stepped up sharply by 4% to Rs. 7.50 lakh
crore in 2022-23 from Rs. 5.54 lakh crore in the current year.
• Outlay in 2022-23 to be 9% of GDP.
• ‘Effective Capital Expenditure’ of Central Government estimated at 10.68 lakh
crore in 2022-23, which is about 4.1% of GDP.
GIFT-IFSC
• World-class foreign universities and institutions to be allowed in the GIFT

• An International Arbitration Centre to be set up for timely settlement of
disputes under international jurisprudence.
Mobilising Resources
• Data Centres and Energy Storage Systems to be given infrastructure

• Venture Capital and Private Equity invested more than Rs. 5 lakh crore last year
facilitating one of the largest start-up and growth ecosystem. Measures to be
taken to help scale up this investment.
• Blended funds to be promoted for sunrise sectors.
• Sovereign Green Bonds to be issued for mobilizing resources for green
Digital Rupee
• Introduction of Digital Rupee by the Reserve Bank of India starting 2022-23.
Providing Greater Fiscal Space to States
• Enhanced outlay for ‘Scheme for Financial Assistance to States for Capital
Investment’:
o From 10,000 crore in Budget Estimates to Rs. 15,000 crore in Revised
Estimates for current year
• Allocation of 1 lakh crore in 2022-23 to assist the states in catalysing overall
investments in the economy: fifty-year interest free loans, over and above
normal borrowings
• In 2022-23, States will be allowed a fiscal deficit of 4% of GSDP, of which
0.5% will be tied to power sector reforms
Fiscal Management
• Budget Estimates 2021-22: 34.83 lakh crore

• Revised Estimates 2021-22: 37.70 lakh crore
• Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore
• Total receipts other than borrowings in 2022-23 estimated at Rs. 84 lakh

crore
• Fiscal deficit in current year: 9% of GDP (against 6.8% in Budget Estimates)
• Fiscal deficit in 2022-23 estimated at 6.4% of GDP
DIRECT TAXES
To take forward the policy of stable and predictable tax regime:
• Vision to establish a trustworthy tax regime.

• To further simplify tax system and reduce
Introducing new ‘Updated return’
• Provision to file an Updated Return on payment of additional tax.

• Will enable the assessee to declare income missed out
• Can be filed within two years from the end of the relevant assessment
Cooperative societies
• Alternate Minimum Tax paid by cooperatives brought down from 5 per cent to
15 per cent.
• To provide a level playing field between cooperative societies and
• Surcharge on cooperative societies reduced from 12 per cent to 7 per cent for
those having total income of more than Rs 1 crore and up to Rs 10 crores.
Tax relief to persons with disability
• Payment of annuity and lump sum amount from insurance scheme to be allowed
to differently abled dependent during the lifetime of parents/guardians, i.e., on
parents/ guardian attaining the age of 60
Parity in National Pension Scheme Contribution
• Tax deduction limit increased from 10 per cent to 14 per cent on employer’s
contribution to the NPS account of State Government employees.
• Brings them at par with central government
• Would help in enhancing social security
Incentives for Start-ups
• Period of incorporation extended by one year, up to 31.03.2023 for eligible

start-ups to avail tax
• Previously the period of incorporation valid up to 03.2022.
Incentives under concessional tax regime
• Last date for commencement of manufacturing or production under section

115BAB extended by one year e. from 31st March, 2023 to 31st March, 2024.
Scheme for taxation of virtual digital assets
• Specific tax regime for virtual digital assets

• Any income from transfer of any virtual digital asset to be taxed at the rate of 30
per cent.
• No deduction in respect of any expenditure or allowance to be allowed while
computing such income except cost of acquisition.
• Loss from transfer of virtual digital asset cannot be set off against any other
income.
• To capture the transaction details, TDS to be provided on payment made in
relation to transfer of virtual digital asset at the rate of 1 per cent of such
consideration above a monetary
• Gift of virtual digital asset also to be taxed in the hands of the
Litigation Management
• In cases where question of law is identical to the one pending in High Court or
Supreme Court, the filing of appeal by the department shall be deferred till such
question of law is decided by the court.
• To greatly help in reducing repeated litigation between taxpayers and the
Tax incentives to IFSC
• Subject to specified conditions, the following to be exempt from tax

o Income of a non-resident from offshore derivative instruments.
o Income from over the counter derivatives issued by an offshore banking

o Income from royalty and interest on account of lease of
o Income received from portfolio management services in
Rationalization of Surcharge
• Surcharge on AOPs (consortium formed to execute a contract) capped at 15 per

• Done to reduce the disparity in surcharge between individual companies and
• Surcharge on long term capital gains arising on transfer of any type of assets
capped at 15 per
• To give a boost to the start up
Health and Education Cess
• Any surcharge or cess on income and profits not allowable as business
Deterrence against tax-evasion
• No set off, of any loss to be allowed against undisclosed income detected during
search and survey
Rationalizing TDS Provisions
• Benefits passed on to agents as business promotion strategy taxable in hands of

agents.
• Tax deduction provided to person giving benefits, if the aggregate value of such
benefits exceeds Rs 20,000 during the financial
INDIRECT TAXES
Remarkable progress in GST
• GST revenues are buoyant despite the pandemic – Taxpayers deserve applause
for this
Special Economic Zones
• Customs Administration of SEZs to be fully IT driven and function on the

Customs National Portal – shall be implemented by 30th September 2022.
Customs Reforms and duty rate changes
• Faceless Customs has been fully During Covid-19 pandemic, Customs formations
have done exceptional frontline work against all odds displaying agility and
purpose.
Project imports and capital goods
• Gradually phasing out of the concessional rates in capital goods and project
imports; and applying a moderate tariff of 5 percent – conducive to the growth
of domestic sector and ‘Make in India’.
• Certain exemptions for advanced machineries that are not manufactured within
the country shall
• A few exemptions introduced on inputs, like specialised castings, ball screw and
linear motion guide - to encourage domestic manufacturing of capital
Review of customs exemptions and tariff simplification
• More than 350 exemption entries proposed to be gradually phased out, like
exemption on certain agricultural produce, chemicals, fabrics, medical devices, &
drugs and medicines for which sufficient domestic capacity
• Simplifying the Customs rate and tariff structure particularly for sectors like
chemicals, textiles and metals and minimise disputes; Removal of exemption on
items which are or can be manufactured in India and providing concessional
duties on raw material that go into manufacturing of intermediate products – in
line with the objective of ‘Make in India’ and ‘Atmanirbhar Bharat’.
Sector specific proposals Electronics
• Customs duty rates to be calibrated to provide a graded rate structure - to

facilitate domestic manufacturing of wearable devices, hearable devices and
electronic smart
• Duty concessions to parts of transformer of mobile phone chargers and camera
lens of mobile camera module and certain other items – To enable domestic
manufacturing of high growth electronic
Gems and Jewellery
• Customs duty on cut and polished diamonds and gemstones being reduced to 5
per cent; Nil customs duty to simply sawn diamond - To give a boost to the Gems
and Jewellery sector
• A simplified regulatory framework to be implemented by June this year - To
facilitate export of jewellery through e-commerce.
• Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import -
To disincentivise import of undervalued imitation jewellery.
Chemicals
• Customs duty on certain critical chemicals namely methanol, acetic acid and
heavy feed stocks for petroleum refining being reduced; Duty is being raised on
sodium cyanide for which adequate domestic capacity exists – This will help in
enhancing domestic value
MSME
• Customs duty on umbrellas being raised to 20 per cent. Exemption to parts of

umbrellas being
• Exemption being rationalised on implements and tools for agri-sector which are
manufactured in India
• Customs duty exemption given to steel scrap last year extended for another year
to provide relief to MSME secondary steel producers
• Certain Anti- dumping and CVD on stainless steel and coated steel flat products,
bars of alloy steel and high-speed steel are being revoked – to tackle prevailing
high prices of metal in larger public
Exports
• To incentivise exports, exemptions being provided on items such as

embellishment, trimming, fasteners, buttons, zipper, lining material, specified
leather, furniture fittings and packaging
• Duty being reduced on certain inputs required for shrimp aquaculture - to
promote its
Tariff measure to encourage blending of fuel
• Unblended fuel to attract an additional differential excise duty of Rs 2/ litre

from the 1st of October 2022 - to encourage blending of
Topic 8: Banking & Financial News (May to

October 2022)
May
ICICI Bank launched India's 'open-for-all' digital ecosystem for MSMEs
ICICI Bank has launched India’s first comprehensive digital ecosystem for all Micro,
Small and Medium Enterprises (MSMEs) in the country, which can also be used by
the customers of other banks. Anyone can use the benefits of digital solutions on the
InstaBIZ app. It provides sanctions of instant and paperless overdraft facility up to
Rs 25 lakh through ‘InstaOD Plus’.
RBI modified norms for banks on short term crop loan scheme under KCC
The Reserve Bank of India (RBI) has amended norms for banks to claim the amount
of interest subvention which is provided to farmers under the short-term crop loan
scheme through Kisan Credit Card (KCC). Pending claims for the 2021-22 FY can
be submitted by June 30, 2023, by the statutory auditor's certification.
The government offers interest subvention of 2% annually to banks on short-
term crop loans up to Rs 3 lakh to farmers at an interest rate of 7%p.a.
Union Bank of India became 1st public sector bank to go live on Account
Aggregator framework
Union Bank of India became the first public sector bank to go live on the Account
Aggregator (AA) ecosystem. The framework facilitates sharing of financial
information on a real-time basis between regulated entities. AAs are licensed by
the Reserve Bank of India to enable the flow of data between Financial Information
Providers (FIPs) and Financial Information Users (FIUs).
Indian Bank launched pre-approved personal loan under Project WAVE
Indian Bank has unveiled its first digital product, pre-approved personal loan
(PAPL) product under Project World of Advance Virtual Experience (WAVE) to
provide customers with instant loan disbursements. The loan would carry an interest
rate of 10% p.a. with no foreclosure charges. The digital transformation initiative –
World of Advance Virtual Experience “WAVE” was launched by the Indian Bank in
January 2022. The loan can be availed through ‘IndOASIS’ mobile app, the bank’s
website or through online banking facility. The loan carries an interest rate of 10%
per annum at present with no foreclosure charges.
IRDAI allowed insurance companies to invest up to 30% of assets in BFSI sector
The Insurance Regulatory and Development Authority of India (IRDAI) in exercise

of its powers conferred under Regulation 14(2) of the IRDAI (Investment)
Regulations, 2016, has increased the investment limit of all insurance companies
to invest in the Banking, Financial services and Insurance (BFSI) companies (as per
section K of NIC classification) to 30% of investment assets from 25%. This rise in
limit will increase the exposure of insurance companies in this sector.
HDFC ERGO launched 'Pay as you Drive’ program to reduce upfront costs of
premium
HDFC ERGO General Insurance Company has announced to launch ‘Pay as you
Drive’ program. This insurance offers distance-based insurance to reduce upfront
costs of premium. The program will be available for owners of new Maruti Suzuki
cars in selected cities up to May 14, 2022. This program is applicable for 10,000
policies or ₹50 lacs of premium whichever happens earlier.
Adani Wilmar became India’s largest FMCG company surpassing HUL
Adani Wilmar Limited became the largest Fast Moving Consumer Goods Company
(FMCG) in India beating Hindustan Unilever Limited (HUL), after the announcement
of its Quarter Four results for the financial year 2022 (Q4FY2022). AWL has reported
the total operational revenue of Rs 54,214 crore in the Financial Year 2022
whereas HUL reported the revenue of Rs 51,468 crore in the Financial Year (FY) 2021-
22.
Reliance became 1st Indian company to cross USD 100 billion annual revenue
Reliance Industries become the first Indian company to record annual revenue of
more than a whopping $100 billion. The company has recorded a 22.5% rise in net
profit for the quarter ended March 2022. Reliance has recorded strong growth in
retail, digital services, and the oil & gas business. The company has also reported the
highest-ever quarterly EBITDA (earnings before interest, taxes, depreciation and
amortisation) of ₹33,968 crores (28% up) year-on-year.
Ministry of Finance released Rs 7,183.42 crore Revenue Deficit Grant to 14 states
Department of Expenditure, Ministry of Finance released Rs 7,183.42 crore as a

revenue deficit grant to 14 states. This is the 2nd monthly installment of the Post
Devolution Revenue Deficit (PDRD) grant to states. The 14 States that have been
recommended for Post Devolution Revenue Deficit (PDRD) grant by the Fifteenth
Finance Commission during 2022-23 are Andhra Pradesh, Assam, Himachal Pradesh,
Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura,
Uttarakhand, and West Bengal.
Fifteenth Finance Commission recommended Post Devolution Revenue Deficit

(PDRD) grant to states. Post Devolution Revenue Deficit (PDRD) grant is provided under
Article 275 of the Indian Constitution. The Fifteenth Finance Commission has
recommended a total Post Devolution Revenue Deficit (PDRD) Grant of Rs 86,201
crore to 14 states for the financial year 2022-23.
The Department of Expenditure (Ministry of Finance) will release the grant to the
recommended states in 12 equated monthly installments (EMIs). With the recent
release, the total amount of Revenue Deficit Grants released to the States in 2022-
23 has gone up to Rs 14,366.84 crore.
LIC's IPO, India's largest at Rs 21,000 crore, subscribed 3 times
An initial public offering (IPO) of Life Insurance Corporation (LIC), India’s biggest
public offer, was subscribed 2.95 times on the last day of offer period i.e., on May 9,
2022, generating bids totalling Rs 43,933 crore. This will help the government to
raise about Rs 21,000 crore. Notably, against 16,20,78,067 shares on offer,
47,83,25,760 bids were received. With this IPO, the government has diluted its 3.5%
stake in LIC through the Offer for Sale (OFS).
HDFC Bank launched industry first digital 30-minute new car loan ‘Xpress Car
Loans’
HDFC Bank has launched an end-to-end digital car loan scheme named ‘Xpress Car
Loans’ for its existing customers as well as new customers. The bank has integrated
its lending application with automobile dealers throughout India. Buyers can apply
for a maximum of Rs 20 lakh and the loan amount will be credited to the dealers’
accounts within 30 minutes.
PAN, Aadhaar now mandatory for cash deposits, withdrawals above Rs. 20 lakh
The Indian government has made quoting of a Permanent Account Number (PAN)
or Aadhaar number mandatory for deposits or withdrawals of Rs. 20 lakh or more
in a fiscal year, or for opening of current account or cash credit account with a bank.
Central Board of Direct Taxes (CBDT) has issued a notification in this regard
called the Income–tax (Fifteenth Amendment) Rules, 2022. The new rules will be
effective from May 26, 2022.
PAN is currently required for cash deposits of Rs 50,000 or more per day. With
these rules, a threshold of Rs 20 lakh has been set for the entire financial year.
RBI restricted withdrawals from savings, current accounts of Shankarrao Pujari

Nutan Nagari Sahakari Bank
Reserve Bank of India has imposed several restrictions on Shankarrao Pujari Nutan
Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur in Maharashtra, including on
withdrawals, in view of the lender’s deteriorating financial position. The restrictions
will be in effect for six months from the close of business on May 13, 2022, and are
subject to review.
RBI permitted lending by Commercial Banks to NBFCs & SFBs to NBFC-MFIs, for
the purpose of on-lending to priority sectors
Reserve Bank of India (RBI) permitted commercial banks to continue providing

credit facility to NBFCs (Non-Banking Financial Companies) for the purpose of on-
lending to certain priority sectors. The same is applicable for lending by Small
Finance Banks (SFBs) to NBFC-MFIs (Microfinance institutions). This facility of
lending was available till March 31, 2022.
Bank credit to NBFCs (including HFCs) for on-lending will be allowed up to an

overall limit of 5 percent of an individual bank’s total priority sector lending in case of
commercial banks. In case of SFBs, credit to NBFC-MFIs and other MFIs (Societies,
Trusts, etc.) which are members of RBI recognized ‘Self-Regulatory Organisation’ of the
sector, will be allowed up to an overall limit of 10 percent of an individual bank’s
total priority sector lending.
Frauds in PSBs declined by 51% to Rs 40,295 crores FY22
According to the Reserve Bank of India (RBI), the public sector banks have reported
over a 51% dip in the amount involved in frauds to Rs 40,295.25 crore during the
financial year ended March 2022. The 12 PSBs had reported frauds worth Rs
81,921.54 crore in the preceding fiscal 2020-21. But, the number of fraud cases has
fallen slightly as a total of 7,940 frauds were reported by the PSBs in 2021-
22, against 9,933 incidents reported in FY21. According to the RBI data on frauds
reported by PSBs in all categories during FY22, the highest amount of Rs 9,528.95
crore was reported by the city-based Punjab National Bank (PNB), involving 431
such incidents.
PNB MetLife launched India's 1st dental health insurance plan
PNB MetLife India Insurance Company has launched India’s first dental health
insurance plan. A dental health insurance plan is the first insurance plan in
India that covers fixed-benefit outpatient expenses and provides financial
assistance with costs related to overall dental health. PNB MetLife has tied up with
more than 340 dental clinics, including Clove Dental and Sabka Dentist, two of
India’s largest dental clinic chains, to help customers to manage their dental health.
SEBI notified rules in order to strengthen regulatory framework for CIS
Securities and Exchange Board of India (SEBI) has enhanced the net worth criteria
and track record requirements with an aim to strengthen the regulatory
framework for collective investment schemes. SEBI has amended Collective
Investment Scheme (CIS) regulations, 1999 which have not been reviewed since
their first notification in 1999.
The SEBI has mandated a minimum of 20 investors and a subscription amount of

at least Rs 20 crore for each Collective Investment Scheme (CIS). Currently, CIS
rules do not mandate minimum number of investors, maximum holding of a single
investor or minimum subscription amount. No single investor will hold more than
25% of the assets under management of such schemes. SEBI has put a cap on cross-
shareholding in Collective Investment Management Company (CIMC) to 10% to
avoid conflict of interest.
RBI approved Rs 30,307 crores dividend payment to centre for FY22
The Reserve Bank of India (RBI) board has approved a dividend payment
of Rs. 30,307 crores to the Centre for the fiscal year 2021-22. The bank’s central
board of directors also decided to maintain the contingency risk buffer (CRB) at
5.50%. CRB, which comes from the contingency fund, is risk provisioning made from
economic capital to cover monetary, credit, fiscal stability, and operational risks. In the
2022 budget, the government had estimated that it would receive Rs. 73,948
crores as dividend from the RBI and state-owned banks for FY22. The budgeted
dividend is 27% lower than the ₹1.01 trillion the centre received in FY22.
India recorded all-time high FDI inflow of $83.57 bn in 2021-22
As per the Ministry of Commerce and Industry, India has recorded the highest-ever
annual FDI inflow of USD 83.57 billion in 2021-22. In 2020-21, the inflow stood at
USD 81.97 billion. FDI equity inflow in manufacturing sectors has increased by
76% in 2021-22 (USD 21.34 bn) compared to 2020-21 ($12.09 billion). In terms of
top investor countries, Singapore is at the top with 27%, followed by the US (18%)
and Mauritius (16%) during the last fiscal. Among sectors, computer software and
hardware attracted maximum inflows followed by the services sector and
automobile industry.
SpiceJet partnered with Axis Bank to launch co-branded credit card
SpiceJet, an Indian low-cost airline, has partnered with Axis Bank, India’s third largest
private sector bank, to launch the most lucrative co-branded credit cards, which are
available in 2 variants: SpiceJet Axis Bank Voyage and Voyage Black. It will be
powered by Visa and will provide customers with a variety of privileges and benefits. It
aims to provide travellers with an exceptional travel experience through SpiceClub,

India’s first frequent flyer club operated by a low-cost carrier.
SBI launched Real Time Xpress Credit on YONO platform
State Bank of India (SBI) has announced the launch of Real Time Xpress Credit on
its YONO platform which allows eligible customers to get personal loans of up to ₹35
lakh. It is a flagship personal loan product for salaried customers (Xpress Credit),
now has a digital avatar and customers can now avail of it through YONO.
HDFC Bank and Retailio launched co-branded credit cards for chemists,
pharmacies
HDFC Bank partnered with Retailio to launch a new range of co-branded credit
cards primarily targeted at chemists and pharmacies in the merchant segment.
Retailio is the country's largest B2B pharma marketplace. The co-branded credit
card offers up to 50 days of Interest-free credit period, cashbacks on tax payments,
reward points, and 5% Cashback on all Business essentials.
Tata Capital introduced digital loan against shares facility
Tata Capital Ltd has launched ‘Loan Against Shares’ an end-to-end integrated digital
financial offering. Customers can avail loans up to ₹5 crores by simply pledging
their dematerialised shares online, facilitated by NSDL. The entire process, after the
required approvals by the respective Depository Participant, is completed in the
same day.
India Post Payments Bank introduced issuer charges for AePS
India Post Payments Bank (IPPB), Department of Post (DoP), Ministry of

Communication has introduced issuer charges for the Aadhaar Enabled Payment
System (AePS). AePS Issuer transaction charges will be in effect from June 15,
2022. AePS is a bank-led model that enables online interoperable financial
inclusion transactions at the Point of Sale (MicroATM) using Aadhaar verification
through any bank’s business correspondent. AePS provides six different transaction
types.
The monthly first 3 cumulative AePS Issuer transactions, such as cash withdrawal,
cash deposit, and mini statement, will be provided free of charge. Over the free
transaction limit, AePS issuer cash withdrawals and cash deposits will be charged
Rs. 20 plus GST each transaction, and mini statement transactions will be charged Rs.
5 plus GST per transaction.
₹100 is the most preferred banknote: RBI’s Banknote Survey
Reserve Bank of India’s Banknote Survey of Consumers findings has revealed

that ₹100 was the most preferred banknote while ₹2,000 was the least preferred
denomination. Among coins, ₹5 denomination was the most preferred whereas ₹1
was the least preferred. Watermark of Mahatma Gandhi’s image followed by

windowed security thread was the most recognized security feature as per the survey.
RBI reduced net-worth requirement for non-bank Bharat Bill Payment units
Reserve Bank of India (RBI) has eased the norms for non-bank entities to set up
Bharat Bill Payment operating units by reducing the net-worth requirement to Rs
25 crores. Presently, the minimum net worth of Rs 100 crore is required to obtain
authorisation for a non-bank BBPOU.
Japan's MUFG Bank got nod to set up branch at GIFT City
MUFG Bank becomes the first Japanese bank to open a branch at Gujarat
International Financial Tech City (GIFT City) in a bid to offer a wide range of banking
services to both domestic and global clients. MUFG had opened its first branch in
Mumbai in 1953. MUFG plans to open this branch for operations by the first half
of FY 2022.
SEBI withdrew permanent recognition granted to ICEX
Market regulator SEBI said that it has withdrawn the recognition granted to Indian
Commodity Exchange Limited’s (ICEX). The bourse’s recognition was revoked after
SEBI issued an order declaring it non-compliant on many grounds, including net
worth and infrastructure criteria. As a result of the withdrawal, ICEX has been
directed to transfer the funds in its Investor Protection Fund and Investor
Services Fund to the Investor Protection and Education Fund of SEBI.
PM Modi released 11th Instalment of PM-KISAN Benefits on May 31
Prime Minister Narendra Modi released the 11th instalment of Rs 21,000

crore under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme to more
than 10 crore farmers on May 31 in Shimla, Himachal Pradesh. The fund is transferred
directly to the bank accounts of the beneficiaries. Under the PM-KISAN, financial
benefit of Rs 6,000 per year is provided to the eligible farmer families, payable in
three equal instalments of Rs 2,000.
Bank of Maharashtra topped PSU lenders chart in loan growth during FY22
State-owned Bank of Maharashtra (BoM) has ranked first in the list of the top
performer among public sector lenders in terms of loan and deposit growth in
percentage terms during 2021-22. The Pune-headquartered lender recorded a 26 per
cent increase in gross advances at Rs 1,35,240 crore at the end of March 2022. It
was followed by State Bank of India and Union Bank of India with 10.27 per cent
and 9.66 per cent growth, respectively.
June
Public Sector Banks doubled their Net Profit to almost Rs 66,500 crore in FY22
• Public Sector Banks (PSBs) have doubled their net profit during the financial
year 2021-22.
• For FY22, the combined profit of 12 state-owned banks stood at Rs 66,539

crore a 110 per cent increase from Rs 31,816 crore in FY2020-21.
• This is a sharp change from FY18, at that time only 2 out of 21 PSBs reported
profit.
Centre distributes Rs 86,912 crore to states and settles GST compensation debts
• The Central government has released the entire compensation of Rs 86,912
crore due to states.
• Despite only having roughly Rs 25,000 crore in the GST compensation pool,
the Centre made the whole amount.
• Compensation of Rs 47,617 crore was due up to January, Rs 21,322 crore
was due for February-March, Rs 17,973 crore was due for April-May, out of
Rs. 86,912 crores released to states.
SBI General Insurance launched New Health Insurance Vertical
• SBI General Insurance has launched a new health insurance vertical.
• It aims to leverage the expansive footprint and network of its parent
companyState Bank of India (SBI) to further entrench health insurance
penetration in Tier 3 and 4 markets across India.
• It also focuses on new innovative health products, in-house claim settlement
process, among others, to boost customer experience.
RBI announced results of its First Global Hackathon - HARBINGER 2021
• The Reserve Bank has launched its first global hackathon - "Harbinger 2021
- Innovation for Transformation" under the theme of the "Harbinger 2021 -
Innovation for Transformation" is 'Smarter Digital Payments' in November
2021.
• The results were announced, Tone Tag, a brand of Naffa Innovations Pvt Ltd, has
been declared as the winner in two categories.
Government approved 8.1% EPF interest rate for 2021-22
• The Employees’ Provident Fund Organization (EPFO) will start crediting
8.1% Rate of Interest for the year 2021-22 soon.
• In March, EPFO decided to lower the interest on provident fund deposits for
2021-22 to 8.1 per cent from 8.5 per cent provided in 2020-21.
• The 8.1 per cent EPF rate of interest is the lowest since 1977-78, when it stood
at 8 per cent.
Kiya.ai launched India’s 1st banking metaverse ‘Kiyaverse’
• Kiya.ai, a digital solutions provider serving financial institutions and
governments globally, announced the launch of India’s first-ever banking
metaverse - Kiyaverse.
• In the first phase, banks will be allowed to roll-out their own metaverse for
clients, partners and employees through service offerings that include
relationship manager, peer avatars and robo-advisors. Kiyaverse plans to have
tokens as NFTs and support CBDC to enable open finance in a Web3.0
environment.
SBI Foundation launched a Digital Learning Platform ‘UpSchool’ with Khan
Academy
• SBI Foundation in partnership with Khan Academy, an educational nonprofit

in India, has launched UpSchool, a digital learning program for students from
classes 1 to 10.
• This program will be available in English, Hindi and Kannada languages
aiming to reduce learning gaps and build a solid foundation in math and
reading for their current academic year.
RBI increased individual housing loan limit for co-operative banks
• RBI has raised the limits for individual housing loans being extended by
Urban Cooperative Banks (UCBs) and Rural Cooperative Banks (RCBs) by
over 100%.
• RBI has also permitted the Rural Cooperative Banks (RCB) for financing
residential real estate projects, in a bid to support affordable housing and
inclusive growth.
• The limits for Tier I /Tier II UCBs have been revised from ₹30 lakh/ ₹70 lakh
to ₹60 lakh/ ₹140 lakh, respectively.
• The limits have been increased from ₹20 lakh to ₹50 lakh for RCBs with
assessed net worth less than ₹100 crore, and from ₹30 lakh to ₹75 lakh for
other RCBs.
CPI-based Retail inflation in India eases to 7.04% in May
• India’s Consumer Price Index (CPI) based retail inflation eased marginally to
7.04% in May from the nearly eight-year high of 7.79% in April.
• Inflation faced by rural consumers fell from 8.38% in April to 7.01% in May,
but for households in urban areas, the pace of price rise was virtually flat
month-on-month, moving from 7.09% in April to 7.08% in May.
• Food price inflation, which had hit a 17-month high of 8.31% in April, eased a
little to 7.97% in May thanks to a decline in rural food inflation from 8.5% to
7.76%. However, the Consumer Food Price Index surged further for urban
India from 8.09% in April to 8.2% in May.
Indian Bank launched digital renewal scheme for KCC holders
• Indian Bank launched its KCC Digital Renewal scheme, enabling eligible
customers to renew their Kisan Credit Card accounts via digital modes.
• The initiative is part of the bank’s digital transformation under project ‘WAVE’ -
World of Advanced Virtual Experience. The account renewals can be done
using Indian Bank’s IndOASIS mobile app and internet banking.
• Out of the total agriculture portfolio of ₹88,100 crores, KCC constitutes ₹22,300
crores with 15.84 lakh customers.
Bharat FIH got approval by SEBI for ₹5,000 crore Initial Public Offering
• Bharat FIH has received market regulator SEBI's approval for an Initial Public
Offering (IPO) aggregating to ₹5,000 crores.
• Bharat FIH is a subsidiary of FIH Mobile a leading manufacturing services
provider for the mobile handset industry, which is a part of Foxconn
Technology Group. The company makes devices for Xiaomi and Nokia.
• The IPO size comprises a fresh issue worth ₹2,501.9 crore and an offer for sale
up to ₹2,501.9 crore by Wonderful Stars.
OmniCard became first RBI licensed PPI to launch cash withdrawal in all ATM
across India
• Payment solution provider OmniCard became the first RBI licensed PPI to
launch cash withdrawal using a RuPay-powered card from any ATMs across
the country.
• The move came in after RBI permitted the non-bank licensed entities to
enable cash withdrawals from the digital wallets.
• OmniCard users can withdraw cash from any ATM at their convenience with
full security from frauds like card theft, card cloning, and PIN skimming. The
company is working with NPCI to enable the facility.
Adani Transmission's $700 million loan gets 'green loan' tag
• Adani Transmission Limited’s $700 million revolving loan facility has been
tagged as 'green loan' by Sustainalytics. This provides assurance on the green
loan framework for the revolving facility.
• A revolving loan facility is a flexible financing tool that provides the
borrower with the ability to draw down or withdraw, repay, and withdraw
again.
HSBC India announced $250 Million lending support for Indian start-ups
• Hong Kong and Shanghai Banking Corporation Limited, India(HSBC India)
has announced USD 250 million in lending support for high-growth,
technology-led start-ups in India, which has the world’s third largest start-up
ecosystem.
• HSBC will administer the lending via its commercial banking division. It has
also not mentioned any specific timeframe for disbursal of the amount.
RBI lifted restrictions on MasterCard over onboarding of new domestic customers
• The Reserve Bank of India (RBI) has lifted restrictions on US-based payments
technology major MasterCard that was imposed on July 14, 2021, from issuing
new credit, debit, and prepaid cards.
• The restrictions were put in place because of the company's failure to comply
with local data storage norms that require payments companies to store data
related to Indian customers only in the country.
RBI raised limit of e-mandates for transactions up to Rs 15,000
• The Reserve Bank of India raised the Additional Factor of Authentication
(AFA) limit from Rs 5,000 to Rs 15,000 per transaction for e-mandates on
cards, Prepaid Payment Instruments (PPIs) and UPI for recurring transactions.
• It implies, additional authentication will not be need for payment of
₹15,000 per transaction.
• Under e-mandate, an individual can give standing instruction to the bank to
debit a specific amount automatically on a recurring basis.
Canara HSBC OBC Life Insurance rebranded as Canara HSBC Life Insurance
• Canara HSBC and Oriental Bank of Commerce Life Insurancehave rebranded

and renamed itself as Canara HSBC Life Insurance.
• Canara HSBC Life has renamed itself as Canara HSBC Life Insurancefollowing
itsthird partner Punjab National Bank decision to exit.
• PNB had acquires a stake in the company following the amalgamation of the
Oriental Bank of Commerce (OBC).
Government declared ICICI, HDFC, NPCI's computer resources to be 'protected
systems'
• The government has declared computer resources of ICICI Bank, HDFC Bank
and UPI managing entity NPCI to be 'protected systems' under the IT Act,
2000.
• Ministry of Electronics and IT (MeitY), in the notification declared the IT
resources of the private sector lender as critical infrastructure under Section 70
of the IT Act, 2000.
South Indian Bank launched 'SIB TF Online'
• South Indian Bank has launched a new portal for its corporate EXIM
customers named 'SIB TF Online'.
• This portal provides a platform for trade related payments to foreign entities
remotely.
• In this portal, the customer can initiate the payment request over SIB TF Online
after uploading the relevant supporting documents for the transaction.
Max Life launched life insurance savings plan with Policybazar
• Max Life Insurance Company Limited has launched the Max Life Smart Fixed
return Digital Plan with Policybazaar.
• It is a non-linked, non-participating, individual life insurance savings plan.
• The plan offers guaranteed tax-free returns up to 6.14% along with life cover
protection at monthly premiums as low as ₹3000 and is also available to
purchase on Max Life’s website and Policybazaar.com.
Freo offered saving account ‘Freo Save’ in partnership with Equitas Small Finance
Bank
• Bengaluru-based neobanking platform Freo launched its digital savings
account ‘Freo Save’ in partnership with Equitas Small Finance Bank
• With this launched, Freo has become the first consumer Neobank in the country
to provide full stack neo banking products.
AU Small Finance Bank launched innovative credit card “LIT (Live-It-Today)”
• AU Small Finance Bank has launched an innovative credit card.
• The AU Small Finance Bank LIT (Live-It-Today) Credit card offers a unique
value proposition to cardholders-to choose the features they want and for the
time period they want.
ICICI Bank launched a digital platform ’Campus Power’ for the student ecosystem
• ICICI Bank launched a digital platform ‘Campus Power’, first-of-its-kind to
address the needs of the students aspiring to pursue higher education in
India and abroad. The platform caters to the varied needs of the entire student
ecosystem comprising students, parents, and institutes.
• The first branch has been set up at IIT Kanpur and seven more will be added
to the campuses of top institutes across India.
Acemoney launched wearable ATM cards and Offline UPI
• Acemoney has launched UPI 123Pay payment and wearable ATM cards.
• The UPI 123Pay payment allows people to carry out cashless transactions
without smartphones or internet connections using feature phones.
• The wearable ATM cards are gadgets designed as key chains and rings that
enable people to carry out cashless transactions without ATM cards and phones.
• The wearable ATM cards functions using applications connected to smart

phones. Therefore, it can be switched on or off as per the requirement of the
customer.
Mufin Finance received Prepaid Payment instrument license from RBI

• Mufin Finance, one of the leading NBFCs, has received in-principal RBI approval
for issuance of semi-closed prepaid payment instruments.
• The PPI license ill allows digital banks, fintech firms and large consumer-facing
applications to roll out features such as digital payment solutions for lending.
• Mufin Finance is the 4th NBFC to receive such a licence from the RBI, after
leading brands such as Bajaj Finserve, Manapurram and Paul Merchants.
July
Trade Deficit surged to record $26.1 Billion in June

•According to Ministry of Commerce & Industry data, India's merchandise trade deficit
rose to $26.1 billion in June 2022, in comparison to $9.6 billion in June 2021.
•Merchandise trade deficit was 172 percent higher than June 2021 as rise in global
commodity including the prices of key energy and metal imports breached records.
India's WPI inflation at 15.18% in June
SBI General Insurance launched Cyber Insurance Cover for Individuals : Cyber
VaultEdge
• SBI General Life Insurance has launched a comprehensive cyber insurance policy
for individuals that provides protection against financial losses caused by cyber
risks and cyberattacks.
• Named Cyber VaultEdge Insurance Plan, it comes with a host of features that
provides protection against unauthorised electronic transactions, wage losses
brought on by identity theft, and incidents affecting one’s online reputation,
including trolling, bullying, and stalking on social media, among others.
DBS named 'World's Best SME Bank' by Euromoney for second time
• DBS Bank has recognized as the ‘World’s Best SME Bank’ by Euromoney for
the second time (the first time in 2018).
• The bank has established its position as a global industry leader in association
with Small to Medium Enterprises (SMEs) to enhance growth and development.
• The DBS bank also clinched three first-time awards at Euromoney’s Awards for
Excellence 2022 –
1. World’s Best Financial Innovation of the year 2022
2. Asia’s Best Bank for Wealth Management 2022
3. Asia’s Best Bank for SME award 2022
RBI restricted three cooperative banks from conducting banking activity
• The Reserve Bank of India has announced severe restrictions on three

cooperative banks.
• These include two banks from Maharashtra, the Nashik Zilla Girna Sahakari
Bank Limited and the Raigad Sahakari Bank besides Karnatka-based Sri
Mallikarjuna Pattana Sahakari Bank.
RBI hiked Capital Adequacy Ratio for Urban Cooperative Banks to 12%
• RBI has hiked the minimum Capital Adequacy Ratio (CAR) for Urban
Cooperative Banks (UCBs) with deposits above Rs 100 crore to 12 percent
from 9.0 percent.
• RBI has allowed till March 2026 to meet revised CAR norm in phases for UCBs
that don't meet it currently.
HDFC Bank to be among global top 10 banks after merger
• HDFC Bank will be among the world's top 10 most valuable banks after its
merger with parent HDFC.
• The combined market cap of HDFC Bank and HDFC would be around USD 160
billion.
•HDFC Bank is worth more than DBS Group and UBS (both valued at around $58
billion). The country’s largest lender State Bank of India ($57 billion) is at number 32
ahead of BNP Paribas ($55 billion) in terms of valuation. The combined market cap of
HDFC Bank and HDFC ($52 billion) would be around $160 billion.
August
RBI sets deadline for card tokenization to October 1

• The Reserve Bank of India (RBI) has released guidelines to ease the transition
to new norms on card-on-file (CoF) tokenization and licensing of payment
aggregators (PAs) in two separate notifications.
• While reiterating that with effect from October 1, no entity in the card
transaction chain, other than card issuers and card networks, shall store
CoF data, the central bank notified two interim measures.
• For handling other post-transaction activities, acquiring banks can
continue to store CoF data until January 31, 2023.
Piramal Enterprises gets RBI nod to start NBFC business
• Piramal Enterprises received approval from the Reserve Bank of India (RBI)
to start non-banking finance company (NBFC) operations.
• The license is for initiating an NBFC not accepting public deposits.
• NBFCs are entities that provide bank-like financial services but don't hold a
banking license & are unregulated.
• Earlier, the company had acquired Dewan Housing Finance (DHFL) for Rs
34,250 crore.
CCI approved the acquisition of stake in IDFC by Bandhan Fin Holdings
• The Competition Commission of India (CCI) has approved the proposed Rs

4,500 crore deal wherein the Bandhan Financial Holdings-led consortium
will buy stakes in IDFC Asset Management and IDFC AMC Trustee.
• The consortium includes private equity firm Chrys Capital and Singapore's
sovereign fund GIC.
• The transaction includes acquisition of 99.96 percent stake in IDFC Asset
Management Company Ltd and 100 percent shareholding in IDFC AMC
Trustee Company Limited.
American Express launched Global Pay, cross border payments platform

• American Express has launched its cross-border payments platform for small
to medium-sized businesses named Global Pay.
• It will work as a digital solution that will let U.S. businesses make secure
domestic and international B2B payments.
SBI formalized policy to finance makers of lab-grown diamonds
• State of Bank of India (SBI) is the first Indian lender to frame a policy to fund
makers of lab-grown diamonds which come across as replicas of the natural
stones.
• The bank's operational guidelines for financing man-made diamond houses
include the standard prudential practices like treating non-fund limits at part
with funded limits.
• Lab grown diamonds are the replicas of natural stones.
EPFOs' Rs 1.59 lakh crore investment in ETFs rises to Rs 2.26 lakh crore
• EPFO has invested Rs 1,59,299.46 crore in Exchange Traded Funds (ETFs)
till March 2022 and its national market value of these investments was Rs
2,26,919.18 crore.
• EPFO has been investing in ETFs since August 2015. Initially, the body decided to
invest 5% of its investible deposits in stock markets.
•Later, the proportion was increased to 10% in 2016-17 and 15% 2017-18 and
onwards.
CPI-based Retail Inflation declined to 6.71% in July 2022
• Retail inflation, based on the Consumer Price Index (CPI), eased to 6.71% in
July 2022 as compared to 7.01% in preceding month, as per the Ministry of
Statistics and Programme Implementation data
• Inflation eased mainly due to easing prices in the Food & Beverages section.
However, the retail inflation level remains above the mandated level of 4%
with a margin of 2% on either side.
Kotak Mahindra Bank launched lifestyle-focused corporate salary account “Kotak
Crème”
• Kotak Mahindra Bank has launched a lifestyle focused salary account named
Kotak Creme.
• This account will offer an upgraded experience to its customers working in
MNCs, retails, law firms, unicorns etc.
• The account will be available to all corporates in India and will also come with a
host of privileges and rewards across lifestyle, travel, healthcare, dining,
skilling and learning experiences.
SBI launched Utsav fixed deposit scheme
• On the occasion of the nation's 76th year of Independence celebrated as Azadi
Ka Amrit Mahotsav, the largest lender in the nation, State Bank of India (SBI),
introduced a unique term deposit programme called "Utsav Deposit."
• This fixed deposit scheme has higher interest rates and is only available for a
limited time.
• In the Utsav Fixed Deposit Scheme, SBI is offering an interest rate of 6.10% per
annum on fixed deposits with a tenure of 1000 days. And senior citizens will
be eligible to get an additional interest rate of 0.50% over and above the regular
rate.
SBI launched its first dedicated branch to support start-ups
• The country’s largest lender State Bank of India (SBI) has launched its first
branch dedicated to start-ups in Koramangala, Bengaluru.
• The branch will provide services ranging from the stage of formation of start-
ups to Initial Public Offerings and Follow-on Public Offerings.
• SBI Chairman Dinesh Khara launched the branch which is located in
Koramangala near HSR Layout and Indiranagar which are the biggest start-up
hubs in the city.
• After Bengaluru, the next branch will be opened in Gurgaon and third one
will be in Hyderabad.
Bank of Baroda introduced a new deposit scheme
• Bank of Baroda (BoB) has launched the 'Baroda Tiranga Deposit Scheme', a
special retail term deposit product that offers interest rates of 5.75% for 444
days and 6% for 555 days.
• This scheme is applicable on retail deposits below Rs 2 crore and remains in
force till December 31, 2022.
Karnataka Bank launched new Term Deposit Scheme named KBL Amrit
Samriddhi
• Karnataka Bank has launched a new Term Deposit Scheme named KBL
Amrit Samriddhi under Abhyudaya Cash Certificate (ACC) and Fixed Deposit for
a tenure of 75 weeks (525 days).
• The interest rate for this Deposit Scheme is 6.10% per annum.
HDFC Bank opens first all-women branch in north Kerala region
• HDFC has opened its first all-women branch with four women bankers in the
north Kerala region in Kozhikode.
• The branch will have 4 women bankers.
• As on March 31, 2022, women constituted 21.7 percent of the workforce and the
target is to increase it to 25 percent by 2025.
HDFC Bank launched a new campaign 'Vigil Aunty '
• HDFC Bank has launched a new campaign titled ‘Vigil Aunty’.

• It aims to encourage people across the country to practice safe banking habits.
• This will complement the bank’s ‘Mooh Band Rakho’ campaign which urges
people not to share their confidential banking information with others.
• A campaign to promote Vigil Aunty and persuade people to follow her on social
media and/or WhatsApp will be run for four to six weeks.
Rajasthan with highest share in cost of projects approved by banks: RBI
• An RBI article has revealed Rajasthan has accounted for the highest share in
the total cost of projects sanctioned by banks and financial institutions in
FY22.
• The state has retained the top position for two consecutive years.
• Uttar Pradesh at the second position followed by Gujarat.
•The article is titled 'Private Corporate Investment: Growth in 2021-22 and
Outlook for 2022-23.
September
Reliance Industries to invest Rs 2 lakh crore in Jio 5G
• Reliance Industries (RIL) has announced to invest of whopping Rs 2 lakh crore to build
its Pan-India true 5G network.
• By December 2023, we will deliver Jio 5G to every town, every taluka, and every tehsil of
our country.
India set to become 3rd largest economy in the world
• According to SBI's Research Report, India would surpass Germany in 2027 and Japan by
2029 at the current rate of growth and become the world's 3rd largest economy.
• Indian economy is currently the 5th largest economy in the world after overtaking the
UK.
PSU banks to open about 300 branches in unbanked areas by December 2022
• As part of the financial inclusion drive, public sector banks will open 300 branches in
unbanked areas of various states by December 2022.
• These branches will cover all remaining unbanked villages with a population of more
than 3,000.
HDFC ERGO to build online insurance platform on Google Cloud
• HDFC ERGO General Insurance has roped in Google Cloud to build an online platform for
selling insurance.
• HDFC ERGO plans to completely migrate to the cloud by 2024.
RBI selected HDFC Bank & Precision for retail payments test phase
• The RBI said, HDFC Bank (in partnership with Sweden-based Crunchfish Aktiebolag)
and Precision Biometric India Pvt. Ltd have been selected for the ‘Test Phase’ for their
‘Offline Retail Payments’ and ‘InnaIT Key Solution for Banking’ products, respectively,
under its ‘On Tap’ application facility for the theme ‘Retail Payments’ under Regulatory
Sandbox.
• HDFC Bank’s product ‘Offline Retail Payments’ provides the capability for customers and
merchants to be able to pay and receive payments in offline mode.
ESAF Bank launched 'rainbow account' for transgender community
• ESAF Small Finance Bank Limited has launched a 'Rainbow Savings Account' exclusively
for the transgender community.
• The 'Rainbow Savings Account scheme comes with a high-interest rate and advanced
debit card facilities.
Tata Play ordered to pay Rs 450 crore for alleged GST related profiteering
• National Anti-Profiteering Authority (NAA) has ordered Tata Play Ltd. to deposit Rs 450
crores with interest for allegedly profiteering after the introduction of GST.
Indian Railways revenue grows by 38 percent till Aug 2022
• Indian Railways' overall revenue has grown by 38 percent till August 2022 over the
corresponding period of 2021.
• The overall revenue of Indian Railways at the end of August 2022 was around 95,486
crore rupees showing an increase of 26,271 crore rupees over the same period in 2021.
India's first Electronic Bank Guarantee issued by HDFC Bank
• HDFC Bank has issued an electronic bank guarantee (e-BG) in partnership with National
E-Governance Services Ltd (NeSL), becoming the first bank in the country to do so.
• Paper-based bank guarantees took 3-5 days to complete the process of physical pick up
from the bank, courier to the beneficiary, stamp it, and re-verify it.
SBI surpassed Rs 5 trillion market cap
• Public lender State Bank of India (SBI) hit the Rs 5-trillion-mark in market capitalization
(market cap) for the first time.
• SBI stood at the 7th position in the overall market cap ranking, according to the data
from BSE.
• SBI has become the third lender in the country to cross the market cap of Rs 5 trillion.
• HDFC Bank, India's largest private lender holds first rank in this list, with a market cap
of Rs 8.38 trillion, followed by ICICI Bank, which has a market cap of Rs 6.33 trillion.
ICICI Lombard introduced digital voice agent to track claim status
• ICICI Lombard has launched an Al-powered digital voice agent in collaboration with
Skit.ai, an Al-based voice automation platform.
• This voice agent will help in simplifying the complex process of seeking claim status
while focusing on customer experience.
Japan's MUFG Bank injected Rs 3,000 crore in India biz
• Japan’s MUFG Bank has boosted the capital of its branches within India by ₹3,000
crores, as the bank looks to expand its India business.
• As a result of this capital injection, the total capital of MUFG Bank in India will rise to
₹5,207 crores.
• Objective - To strengthen its financial base in India and better respond to the diverse
financing needs of its clients through the funds.
Leh achieved 100 percent digitization of banking operations
• Leh district of Ladakh has achieved 100 percent digitization of banking operations.
• Leh district has completed the digitization of all the operating banks in a short span of a
year.
UCO Bank becomes first lender to get RBI's approval for rupee trade
•UCO Bank has received the Reserve Bank of India's (RBI's) approval to open a special
Vostro account with Gazprombank of Russia for trade settlement in Indian rupees.
• Objective - To provide banking services for gas industry enterprises.
Foreign Trade Policy 2015-20 extended further
• Foreign Trade Policy 2015-20 has been extended for a further period of 6 months.
• The extension will come into effect from 1 October 2022.
• The policy provides a framework for increasing exports of goods and services keeping
Make in India vision of Prime Minister in focus.
ADB to devote $14 billion to help ease food crisis in Asia-Pacific
• The Asian Development Bank will devote at least $14 billion through 2025 to help ease a
worsening food crisis in the Asia-Pacific.
• It plans a comprehensive program of support to help the 1.1 billion people in the region
who lack healthy diets due to poverty and soaring food prices.
Union Bank of India inaugurated ethical hacking lab
• The Union Bank of India inaugurated the Ethical Hacking Lab at the Cyber Security
Centre of Excellence (CCoE).
• The lab with a cyber defence mechanism will protect the bank's information system,
digital assets, and channels, against potential cyber threats.
Bank of Baroda launches ‘Khushiyon ka Tyohaar’
• Bank of Baroda (BOB) has announced to launch of ‘Khushiyon Ka Tyohaar’. The
‘Khushiyon Ka Tyohaar’ includes a series of offers as an annual festival campaign.
• The bank will offer to attractive interest rates on a home loans, car loans, education
loans, and many more during the ‘Khushiyon Ka Tyohaar’ campaign.
Current Policy Rate: Last Updated on 30 September 2022
Policy Rates
Repo Rate 5.90%
Reverse Repo Rate 3.35%
Marginal Standing Facility (MSF) Rate 6.15%
Bank Rate 6.15%
Cash Reserve Ratio 4.50%
Statutory Liquidity Ratio (SLR) 18%
Standing Deposit Facility Rate 5.65%
October
BSE received SEBI final approval to launch EGR on its platform
• Leading stock exchange Bombay Stock Exchange (BSE) has received the final
approval from SEBI for introducing the Electronic Gold Receipt (EGR) on its
platform.
• India is the second largest consumer of gold globally with an annual gold demand of
approximately 800-900 tonnes and holds an important position in the global markets.
India's current account deficit rises 2.8%to USD 23.9 billion in Q1
• The Reserve Bank of India has informed that India's current account balance
recorded a deficit of 23.9 billion dollars in the first quarter of FY23, an increase of
13.4 billion from the last quarter.
• This rise of the current account deficit was from 1.5 percent of GDP to 2.8 percent of
GDP.
Centre gives 4% hike in DA to its employees and pensioners
• The Union Cabinet has increased the dearness allowance (DA) and dearness relief
by 4 percent effective July 1, 2022, benefiting 4.18 million central government
employees and 6.97 million pensioners.
• The additional installment of DA and dearness relief (DR) is an increase of 4 percent
over the existing rate of 34 percent of basic pay/pension.
SBI launched 'Gram Seva Program' across six states of India
• On the occasion of Gandhi Jayanti, the State Bank of India (SBI) has announced that it
will adopt 30 remote villages across India under the 4th phase of the 'SBI Gram
Seva' program.
• Under the flagship scheme of the SBI Foundation, the bank will adopt remote villages
across Aspirational Districts in Haryana, Gujarat, Maharashtra, Punjab, Tamil Nadu,
and West Bengal.
PNB launched WhatsApp banking service for customers and non-customers
• State-owned Punjab National Bank (PNB) has introduced banking services through
WhatsApp for both customers and non-customers.
• To activate banking facility on WhatsApp, customers need to save the official PNB's
WhatsApp number 919264092640 and initiate a conversation (on WhatsApp) by
sending a hi/hello to this number.
HDFC Life launched 'Insure India' campaign
• HDFC Life Insurance Company has launched the 'Insure India' campaign with an aim
to educate Indians on the benefits of life insurance as a product category.
• The objective of this campaign is to educate Indians about life insurance thereby
motivating them to secure their future with this unique financial product that offers the
dual benefits of protection and long-term savings.
Government raised credit guarantee limit for airlines sector
• The Department of Financial Services (DFS) has modified the Emergency Credit
Line Guarantee Scheme (ECLGS) for the aviation sector.
• The department has raised the scheme’s cheaper loan limit to Rs 1,500 crores from
Rs 400 crores.
• The move is aimed at giving the necessary collateral-free liquidity at reasonable interest
rates to the aviation industry.
WTO cuts global trade forecast for 2023 to 1%
• According to the World Trade Organization (WTO), the growth in world trade is
expected to slow down to 1 percent in 2023, down sharply from the previous
estimate of 3.4 percent, due to global uncertainties.
• WTO has also projected a growth of 3.5 percent in global trade this year, as against the
April estimate of 3 percent.
• The WTO has provided a band of trade growth expansion of 2% to 4.9% for 2022-23 and
of -2.8% to 4.6% for 2023.
IFC launched financing platform to respond to global food crisis
• World Bank’s private sector investment arm, the International Finance Corp. (IFC)
has launched a new $6 billion financing facility.
• Objective - To strengthen the private sector’s ability to respond to the crisis and help
support food production.
RBI launched advanced supervisory monitoring system named DAKSH
• The Reserve Bank of India (RBI) Governor Shaktikanta Das has launched a new
'SupTech' initiative called DAKSH.
• DAKSH is a web-based end-to-end workflow application through which RBI shall
monitor compliance requirements in a more focused manner with the objective of
further improving the compliance culture in Supervised Entities (SEs) like Banks,
NBFCs, etc.
RBI issued directions for appointment of Internal Ombudsman
• The Reserve Bank of India (RBI) has issued directions for the appointment of
Internal Ombudsman for all Credit Information Companies (CICs).
• RBI has said that every CIC must appoint the Internal Ombudsman for a fixed term of
not less than three years, but not exceeding five years.
• The IO shall be either a retired or a serving officer, not below the rank of Deputy
General Manager or equivalent in any financial sector regulatory body with at least
seven years of experience in banking, non-banking finance, financial sector regulation or
supervision, credit information or consumer protection.
ICICI Bank launched ‘Smart Wire’ facility
• ICICI Bank has launched a unique solution "Smart Wire" for its customers to help
them with SWIFT-based inward remittances in a faster and hassle-free manner.
• ICICI Bank is the first bank in the country to launch such a service.
Government and LIC together to divest 60.72% stake in IDBI Bank
• The Central government and Life Insurance Corporation of India (LIC) have decided
to sell off their 60.72%stake in IDBI Bank.
• The Centre will divest 30.48 percent stake and the Life Insurance Corporation of
India (LIC) will offload 30.24 percent in IDBI Bank. They will together divest a
60.72 percent stake.
South Indian Bank entered World Book of Records for ‘101 Oonjals’
• South Indian Bank has bagged a world record for staging and swinging the highest
101 Oonjals (Jhoolas), beautifully decorated- in Kochi.
• The South Indian Bank on Sunday organized an event ‘Onnichirikkam Oonjaladam’ and
was accoladed with the World Book of Records award for ‘staging and swinging 101
Oonjals’.
RBL Bank partnered with BookMyShow to launch 'Play' credit card
• RBL Bank has partnered with BookMyShow to launch a new credit card named
'Play'.
• With this card, RBL Bank will be able to reach BMS's wide base of 200 million monthly
customer visits.
PM Modi dedicated 75 Digital Banking Units to the nation
• Prime Minister Narendra Modi has dedicated 75 Digital Banking Units (DBUs) to the
nation through video conferencing.
• DBUs have been set up with the objective to ensure that the benefits of digital banking
reach every nook and corner of the country.
DCB Bank reintroduced Suraksha Fixed Deposit
• DCB Bank has reintroduced Suraksha Fixed Deposit (FD) as a festive treat for
customers.
• FD has a tenure of 3 years and offers an excellent mix of savings and safety for
depositors as well as their dependents or loved ones.
Government approved increase in Minimum Support Price for all Rabi Crops for
Marketing Season 2023-24
• The Union Cabinet has approved an increase in the Minimum Support Price (MSP)
for all Rabi Crops for the Marketing Season 2023-24.
• The highest increase has been cleared for lentils with a hike of 500 rupees per
quintal.
• The MSP on wheat has been hiked by 110 rupees and barley by 100 rupees.
LIC launched new 'Dhan Varsha' plan
• Life Insurance Corporation (LIC) has launched a new scheme 'LIC Dhan Varsha.'
• This is a non-linked, non-participating, individual, savings life insurance plan that offers
a combination of protection and savings.
• Premiums can be paid in single (lumpsum) payment mode only.
HDFC Securities Opens the First Women-Only Digital Centre in Bengaluru
• HDFC Securities has opened its first-ever women-only Digital Centre (DC) in India.
• The centre, staffed with a team of women, will serve both male and female investors.
PhonePe launched its first green data centre in India
• Fintech platform PhonePe has launched its first green data center in India,
leveraging technologies and solutions from Dell Technologies and NTT.
• The 4.8-megawatt facility, which occupies 13,740 sq ft at Mahape, Navi Mumbai, is
built and designed with advanced alternative cooling technologies like Direct Contact
Liquid Cooling (DCLC) and Liquid Immersion Cooling (LIC).
BSE launched Electronic Gold Receipts
• BSE (Bombay Stock Exchange) has launched Electronic Gold Receipt (EGR) on its
platform.
• These Electronic Gold Receipts will cater to all market participants as well as
commercial participants along the value chain.
India Post Payment Bank launched group accident insurance plan
• India Post Payment Bank (IPPB) has launched a group accident insurance plan with
an accidental death coverage of Rs 10 lakh.
• It has been launched in partnership with TATA AIG and Bajaj Allianz General
Insurance companies, and will offer the insurance plan at a premium of Rs 399 or Rs
396 per annum.
• Anyone aged between18 and 65 years can join this insurance plan.
SAIL crossed Rs 10,000 cr Procurement Value on GeM portal
• Steel Authority of India Limited (SAIL) has crossed Rs 10,000 crore in Procurement
Value on Government-e-Marketplace (GeM).
• With this, SAIL has become the 1st Central Public Sector Enterprise (CPSE) to achieve
the major milestone of procurement through the GeM portal since inception.
Topic 9: India’s GDP Growth Forecast FY 22 and 23

by various Financial Organizations (last Update 8
October 2022)
Organization FY22 (2021-22) FY23 (2022-23)

Fitch 8.4% 7% (7%, 2023-24)
HSBC Bank 11.2%
RBI forecasted 9.5% 7% (6.3%, 2023-24)
Moody 8.8% for calendar year 2022 5.4% for calendar year
2023
Asian Development Bank (ADB) 7% (8%, 2023-24)
World Bank 8.3% 6.5% (6.8%,2023-24)
World Economic Outlook released 9% 6.8%(6.9%. 2023-24)
by International Monetary
Fund (IMF)
FICCI 9.1% 7.4%
Organisation for Economic Co- 9.4% 6.9% for FY23
operation and Development
(OECD) 5.5% For FY24
UNCTAD 5.7%
Goldman Sachs 9.1%
CRISIL 9.5% 7.3%
UN (United Nation) 4.6% 6.4% (6%, 2023-24)
Confederation of Indian Industry 9.5%
(CII)
India Ratings & Research (Ind-Ra) 8.6% 7-7.2%
Economy Survey 11% 8-8.5%
National Council of Applied
Economic Research (NCAER)
Standard & Poor’s (S&P) 9.5% 7.3% (6.5%,2023-24)
ICRA 8.5% 7.2%
State Bank of India (SBI) 6.8%
Morgan Stanley 10.5% 7.2% (6.7%,2023-24)
CARE Ratings 8.8 to 9%
Normura 10.8% 4.7%
Oxford Economics 10.2%
Brickwork Ratings 8.3% 8-8.5% (1 Feb 2022)
UBS 9.1%
National Statistical Office (NSO) 8.9%
Barclays 7.7%
BofA Securities 9%
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com Online Test Series

Financial Awareness Capsule for IBPS

Part 1: Financial & Banking Awareness

Chapter 1 RBI, Subsidiaries of RBI, NABARD, NHB,

Chapter 2 Banks in India Commercial Bank, Exim

Chapter 3 Banking Ombudsman, National Income

Chapter 4 Money Market, Capital Market

Chapter 6 Negotiable Instrument, Mutual Fund,

Chapter 7 Types of Cheque & Types of Account

Chapter 8 Types of Payment Cards, Fund transfer

Chapter 9 Basel I, II and III

Chapter 10 NPA & SARFAESI Act, 2002

Chapter 11 LIBOR & MIBOR, SWIFT Codes for banks

Chapter 12 CIBIL, Priority Sector lending & Banks

Chapter 13 Important Terms

Chapter 14 Micro, Small and Medium Enterprise in

Chapter 15 List of all schemes of Indian government

Part 2: Banking and Financial News PDF

No. of Topic Topic Name

Insurance and Pension Regulators

Central Bank (RBI) Capital Market (SEBI) Insurance and Pension

Commercial Bank 2)Supervision over regulations for running

Chapter 1: RBI, Subsidiaries of RBI, NABARD, NHB,

• One Governor (5years Term)

Branches and support bodies

• RBI Headquarters in Mumbai

• Deposit Insurance and Credit Guarantee Corporation of India (DICGC),

• Bharatiya Reserve Bank Note Mudran Private Limited

• DICGC (Deposit Insurance And Credit Guarantee Corporation )

National Bank for Agriculture and Rural Development (NABARD)

National Housing Bank (NHB)

• A Government of India owned entity

ECGC (Export Credit Guarantee Corporation of India)

• Type: State-owned enterprise Public

• Provides a range of credit risk insurance covers to exporters against loss in

Reserve Bank Innovation Hub

Chapter 2: Banks in India Commercial Bank, Exim

Export–Import Bank of India is a finance institution in India, established in 1982 under

Small finance bank

Chapter 3: Banking Ombudsman, National Income

Banking Ombudsman Important Point

• The Banking Ombudsman Scheme was introduced under Section 35 A of the

Type of complaints resolved by banking ombudsman

• Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills,

• Failure to issue or delay in issue, of drafts, pay orders or bankers’ cheques;

Chapter 4: Money Market, Capital Market

• Financial markets in every economy have two separate segments.

• Issued by RBI on behalf of govt.

Certificate of Deposit (CDs)

• Issued by scheduled commercial banks and other financial institutions.

Commercial Paper (CP)

• These are unsecured promissory* notes issued by large corporates, primary

Commercial Bills (CBs)

Cash Management Bills (CMBs)

• It’s a comparatively new short-term instrument issued by RBI on behalf of Govt.

Capital Market 2 types

There are three major types of inflation

• Built-in inflation – Built-in inflation is induced by adaptive expectations, and is

• The Consumer Price Index (CPI)

Chapter 6: Negotiable Instrument, Mutual Fund,

Types of Negotiable Instruments

A letter of credit (LC), also known as a documentary credit or bankers commercial