Current Affairs-February 2022

Banking & Finance 

1. PNB launches co-branded contactless credit cards with Patanjali in partnership with RuPay

Punjab National Bank (PNB), and Patanjali Ayurved Limited (PAL) have launched co-branded contactless credit cards in partnership with the National Payments Corporation of India (NPCI).
The co-branded credit cards are offered on NPCI’s RuPay Platform and are available in two variants – PNB RuPay Platinum and PNB RuPay Select.
Atul Kumar Goel, MD and CEO of PNB. Acharya Balkrishna, Managing Director of Patanjali Ayurved Limited.

2. RBI to Issue Digital Rupee Starting from 2022-23

While presenting the budget 2022-23, the Union Minister for Finance proposed to introduce Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23. She elaborated that introduction of Central Bank Digital Currency (CBDC) would give a big boost to the digital economy.

3. SEBI notifies KRA rules; mandates audit trails of client’s KYC records

To enhance the role of KYC Registration Agencies (KRAs), SEBI has notified new norms to make them responsible to carry out independent validation of the KYC records uploaded onto their system by the Registered Intermediary (RI).

4. RBI cancels licence of Nashik based Independence Co-operative Bank Limited

RBI has cancelled the licence of Nashik-based Independence Co-operative Bank Limited. The bank will not be allowed to carry out any operations henceforth and a liquidator will be appointed soon.
RBI has clarified that the bank does not have adequate capital and earning prospects.

5. SBI launches ‘Surya Shakti Cell’; partners with Tata Power for financing Solar projects

State Bank of India (SBI) has launched a dedicated centralized processing cell – ‘Surya Shakti Cell’. The Bank has entered into an Agreement with Tata Power Solar Systems Ltd. (a Tata Power Company) for financing solar projects. Surya Shakti Cell will process all the loan applications for Solar Projects (capacity up to 1 MW) sourced from across India Chairman, SBI – Dinesh Khara

6. Asian Development Bank lends record $ 4.6-bn loans to India in 2021

The Asian Development Bank (ADB) has provided a record USD 4.6 billion loans to India in 2021, including USD 1.8 billion towards coronavirus response.
The ADB’s regular funding programme to India is made to support transport, urban development, finance, agriculture, and skills building.
The agency extended a USD 2.2-billion support for 12 state projects.

7. SBI Q3 net profit jumps 62% to record Rs 8,432 crore

India’s biggest lender State Bank of India reported a jump of 62.27% year on year (YoY) in the third quarter (Q3) of the financial year 2021-22 (FY22) to Rs 8,432 crores–highest-ever quarterly figure, the bank said. SBI reported a net profit of Rs 5,196 crore in the corresponding period last year. SBI Chairman Dinesh Khara.

8. RBI imposes ’10 lakh penalty on Kerala-based Pooram Finserv

RBI has imposed a financial penalty of ’10 lakh on Pooram Finserv Pvt Restricted in Kerala’s Thrissur for non-adherence with sure provisions.
This motion is predicated on deficiencies in regulatory compliance and isn’t supposed to pronounce upon the validity of any transaction or settlement entered into by the corporate with its prospects, the RBI mentioned.

9. SBI partners NSE Academy to launch five online courses

State Bank of India (SBI) through its Strategic Training Unit has partnered with NSE Academy to promotes financial literacy as a necessary life skill. Learners can enroll for five inaugural MOOCs of SBI on the NSE Knowledge Hub platform as a part of this strategic association. NSE Academy is a wholly owned subsidiary of National Stock Exchange of India.

10. RBI selects Go Digital, Go Secure Theme for Financial Literacy Week

This theme is one of the strategic objectives of the National Strategy for Financial Education 2020- 2025 RBI will focus on creating awareness about convenience of digital transactions, security of digital transactions and protection of customers.

RBI has been conducting Financial Literacy Week (FLW) every year since 2016 to propagate financial
education messages. This year FLW will be observed between February 14 to 18.

11. Govt to appoint 3 independent directors on NaBFID board

The government is in the process of appointment of three independent directors on the board of newly incorporated ‘20,000 crore National Bank for Financing Infrastructure and Development (NaBFID), a move that will clear the decks for commencing of operation of the Development Finance Institution critical for infra financing.

12. Private sector lender Yes Bank launches ‘Agri Infinity program’

Yes Bank has announced the launch of an annual startup enabler program that seeks to co-develop digital financial solutions for the food & agriculture ecosystem by mentoring entrepreneurial ventures in the sector.
Called Yes Bank Agri Infinity, a select cohort of startups will receive mentoring by veteran bankers for experiential co-development. Also get access to the lender’s digital banking infrastructure and network.

13. RBI allows NBFCs time till September 30 to comply with new NPA norms

The Reserve Bank of India has extended the timeline by six months for NBFCs to adhere the new NPA recognition norms.
Earlier the regulator had set March 31 deadline for non-bank lenders to upgrade NPAs only after all arrears and principal dues are paid.
NBFCs will have time till September 30, 2022 to put in place the necessary systems to implement this provision.

14. JPMorgan becomes first bank in metaverse, opens lounge in Decentraland

JPMorgan has become the world’s first bank to set up shop in the metaverse. The largest bank in the US has opened a lounge in the blockchain-based world Decentraland. Users can create their virtual avatars, build virtual spaces and roam in the lounge christened ‘Onyx Lounge’ after its suit of ethereum-based services. The lounge also features a digital image of the bank’s CEO Jamie Dimon.

15. RBI to enhance VRR cap for foreign investors by Rs 1 lakh crore from April 1

The voluntary retention route (VRR) cap for foreign portfolio investors (FPIs) will be enhanced by Rs 1 lakh crore to Rs 2.50 lakh crore, given the increased interest shown by them, Reserve Bank of India Governor Shaktikanta Das announced.
He said a dedicated investment limit of Rs 1,50,000 crore was set for investments under the VRR earlier.

16. RBI cancels licence of Mantha Urban Cooperative Bank

The Reserve Bank of India (RBI) has cancelled the licence of Mantha Urban Cooperative Bank, Maharashtra citing its weak financials. Consequently, the bank ceases to carry on banking business, with effect from the close of business on February 16, 2022.
The RBI cancelled the licence of the bank as it does not have adequate capital and earning prospects. Mantha Urban Co Op Bank Ltd- major Indian private bank with its headquarters in Nagpur.

17. Bank of Baroda subscribes to 99,000 shares of India Debt Resolution Company

Public sector Bank of Baroda has subscribed to 99,000 shares of asset reconstruction company India Debt Resolution Company Ltd (IDRCL). The acquisition is subject to the execution of an investment agreement. IDRCL, as an asset management company, will manage the asset and engage market professionals and turnaround experts for debt resolution. Sanjay Jain is the chief executive Officer of IDRCL.

18. CoinDCX announces strategic alliance with risk monitoring firm Solidus Labs

CoinDCX, India’s crypto unicorn, and crypto exchange announced that it is making crypto-native risk monitoring firm Solidus Labs its strategic compliance partner. The partnership with Solidus will forge greater trust and transparency on its platform, and cement its leadership as India’s number one digital asset exchange.

19. Kotak Mahindra Bank partners Ezetap for PoS solutions

Kotak Mahindra Bank Ltd has partnered Ezetap to provide integrated point of sale (PoS) solutions across 4,000 locations in India.
Through this association, Ezetap’s integrated and customised point of sale (PoS) solutions will benefit scores of KMBL’s merchants in retail business spread across the country.

20. IRCTC, NPCI, Bank of Baroda arm launch co-branded credit card for railway customers

The Indian Railways’ catering and ticketing arm along with NPCI and BOB Financial Solutions launched a co-branded credit card to tap the huge potential the market offers.
The ‘IRCTC BoB RuPay Contactless Credit Card’ will offer four reward points (per Rs 100 spent) on grocery and departmental stores and two reward points on other categories. BOB Financial Solutions Ltd (BFSL) is a wholly-owned subsidiary of Bank of Baroda.

21. Paytm Payments Bank signs up as acquiring partner for e-RUPI service

Paytm Payments Bank (PPB) had become an official acquiring partner for the government’s e-RUPI vouchers initiative.
The Reserve Bank of India (RBI) recently increased the cap on e-RUPI vouchers issued by the government to Rs 1 lakh per year from Rs 10,000 and allowed beneficiaries to use the voucher multiple times until fully redeemed.
Satish Gupta, MD & CEO of PPB. e-RUPI: cashless prepaid voucher that beneficiaries can present through SMS or QR Code.

22. HDFC Bank finances Asia’s largest waste to energy plant in Indore

HDFC Bank under its ESG commitment is proud to be associated with Indore Clean Energy Private Limited (ICEPL) for the development of 550 tonnes/day of Municipal Solid Waste (MSW) to Compressed Biogas (CBG) plant ‘ the largest Bio-CNG plant in Asia.
This is the largest waste-to-energy project funded by HDFC Bank under its ESG commitments.

23. Standard Chartered launches ‘interest-only home loan’ facility

Standard Chartered Bank, India has launched the ‘interest-only home loan’ facility for completed residential properties. where during the initial period, borrowers l pay only for the interest accrued on the principal outstanding.
Borrowers can choose to pay only the interest amount via Equated Monthly Instalments for an initial period of up to one to three years.

24. Edelweiss Asset Management launches eInvest mobile app

Edelweiss Asset Management has announced the launch of eInvest a mutual fund mobile app for investors for a smooth investing experience. eInvest is an easy-to-use app that will help investors perform all financial transactions on the go.
This app will bring a transformational change in the way mutual fund investors manage their day-to-day operations.

25. IDBI Bank board approves appointment of TN Manoharan as additional director

IDBI Bank has approved appointment of T N Manoharan as additional director with immediate effect. Manoharan is not related to any other director on the board and the KMP (key management personnel) of the bank, the lender said in a BSE filing.
He also served as director at the instance of RBI in Sahara India Finance Corporation.

26. Union Minister Narayan Rane launches MSME RuPay Credit Card

Union Minister for MSME, Narayan Rane announced establishment of MSME-Technology Centre at Sindhudurg and launched the MSME RuPay Credit Card. The MSME-Technology Center to be set up at Sindhudurg at a cost of about Rs 200 crore will enhance the competitiveness of MSME industries.

27. GST collections in Jan cross Rs 1.3 lakh cr-mark for the fourth time

The central government’s goods and services tax (GST) collection in January crossed Rs 1.38 lakh crore.
GST collection crossed Rs 1.30 lakh crore mark for the 4th time.
Revenues for month of Jan 2022 15% higher than GST revenues in the same month last year & 25% higher than the GST revenues in January 2020. January is the fourth month when GST collection has crossed Rs 1.30 lakh crore.

28. Economic Survey GDP forecast of 8-8.5% optimistic

The Economic Survey’s GDP forecast of 8-8.5% for the next fiscal is optimistic and the Union Budget is expected to focus on fiscal management and reforms to give a booster dose to the economy.
The Survey’s GDP growth forecast of 9.2% for this year and 8-8.5% for the next year will catapult India as the fastest-growing major economy of the world for two consecutive years.

29. FM Nirmala Sitharaman presents Union Budget for 2022-2023 in Parliament on 1st February

Finance Minister Nirmala Sitharaman presented the Union Budget for the Financial Year 2022-23 in the Lok Sabha at 11 am on 1st Feb. After getting the nod from the Cabinet, the Finance Minister will present the Union Budget in a paperless form for the second time in Parliament.
Earlier, the Union Budget of 2021-22 was delivered in paperless form last year for the first time.

30. Central Theme Of Economic Survey 2021-22 Is The ‘Agile Approach’

The central theme of this year’s Economic Survey is the ‘Agile approach’, implemented through India’s economic response to the COVID-19 Pandemic shock. Informing further, the preface of Economic Survey states that the ‘Agile approach’ is based on feedback loops, real-time monitoring of actual outcomes, flexible responses, safety-net buffers and so on.

31. HIGHLIGHTS OF THE UNION BUDGET 2022-23

• India’s economic growth estimated at 9.2% to be the highest among all large economies.
• PLI Schemes have the potential to create an additional production of Rs 30 lakh crore.
• 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 deficit in 2022-23 estimated at 6.4% of GDP.

32. International Arbitration centre at GIFT City for dispute resolution

Finance Minister Nirmala Sitharaman announced the setting up of an international arbitration centre at the GIFT City in Gujarat for timely resolution of disputes under international jurisprudence.

33. Services PMI falls to six-month low in January 2022

India’s services sector activity moderated to a six-month low in January 2022, amid imposition of restrictions across the country due to the fast spread of the Omicron variant as well as inflationary pressures. Data released by the analytics firm IHS Markit showed the purchasing managers’ index (PMI) for services fell to 51.5 in January 2022 from 55.5 in December 2021.

34. RBI projects India GDP growth rate at 7.8% for FY23

Reserve Bank of India (RBI) Governor Shaktikanta Das projected India’s economic growth for the financial year 2023 (FY23) at 7.8%. The growth rate for the current financial year is retained at 9.2%. The governor said there was some loss of economic momentum due to third pandemic wave and the demand for contact intensive sector is muted.

35. RBI keeps benchmark lending rate unchanged 10th time in a row at 4%.

Reserve Bank of India (RBI) kept the benchmark interest rate unchanged at 4 percent and decided to continue with its accommodative stance in the backdrop of an elevated level of inflation. This is the tenth time in a row that the Monetary Policy Committee headed by RBI Governor Shaktikanta Das has maintained the status quo. MPC is a 6 member body headed by the RBI governor.

36. Index of Industrial Production (IIP) for December 2021 released

For the month of December 2021, the Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 stands at 138.0. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of December 2021 stand at 120.3, 138.8 and 162.5 respectively.

37. SEBI rejigs advisory committee on alternative investment policy

SEBI has reconstituted its alternative investment policy advisory committee, which advises the capital markets regulator on a range of issues that impact further development of the AIF space. The committee has now 20 members, as per an update by the SEBI. The committee is chaired by Infosys co-founder N R Narayana Murthy. The panel, which was constituted by SEBI in March 2015, earlier had 22 members.

38. India’s overall ranking on IP protection improves, says USCC report

India has improved its overall IP score from 38.4 percent to 38.6 percent, and the country is ranked 43 out of 55 countries on the International Intellectual Property Index, according to an annual report compiled by the influential US Chambers of Commerce

39. Brickworks Ratings lowers India’s GDP to 8.3% in FY22

Brickworks Ratings has revised downwards India’s GDP growth forecast to 8.3 percent in the current fiscal 2021-22 (FY22). Earlier in January 2022, the rating agency had estimated this between 8.5-9 percent. Brickwork Ratings is one of the seven Sebi-registered credit rating agencies (CRA).