BANKING & FINANCIAL CURRENT AFFAIRS FEBRUARY 2022

BANKING & FINANCIAL CURRENT AFFAIRS FEBRUARY 2022

Banking & Financial Current Affairs

Reserve Bank of India has imposed some restrictions on Indian Mercantile Cooperative Bank Ltd, Lucknow, including a cap of Rs.1.00 lakh on withdrawals, w.e.f closure of business hours on January 28, 2022.
Due to inadequate capital and earning prospects, Reserve Bank of India has cancelled the license of Independence Co-operative Bank Ltd., Nashik, Maharashtra w.e.f February 03, 2022. This means the bank does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.
The Reserve Bank of India observed February 14-18, 2022 as Financial Literacy week 2022. RBI has been conducting Financial Literacy Week (FLW) every year since 2016 to disseminate financial education messages on a particular theme across the country.
Reserve Bank of India has increased investment limit in Voluntary Retention Route (VRR) from Rs. 1,50,000 crore to Rs. 2,50,000 crore.
Reserve Bank of India has extended the deadline for non-banking financial companies (NBFCs) to comply with new Non-Performing Assets (NPAs) classification norms (issued by RBI in November 2021) to September 2022 from the earlier deadline of March 2022.
State Bank of India Research Report, Ecowrap, has revised downwards the gross domestic product (GDP) growth rate of India for FY22 (2021-22) to 8.8 percent. Earlier this was estimated at 9.3 per cent.
SBI has announced a partnership with NSE Academy to launch five online courses that promote financial literacy as a necessary life skill.
SBI is the first Indian entity to raise money through Formosa Bond (bond issued in Taiwan). State Bank of India has issued $300 million Formosa bonds and listed the issuance on India INX GIFT IFSC.
As per SBI Chairman Dinesh Kumar Khara, a total of 38 Non-Performing Asset (NPA) accounts worth Rs.82, 845 crore have been identified to be transferred to National Asset Reconstruction Company Ltd (NARCL) initially.
Punjab National Bank and Patanjali Ayurved Limited have launched co-branded contactless credit cards in partnership with the National Payments Corporation of India (NPCI). It is available in two variants- PNB RuPay Platinum and PNB RuPay Select.
Export-Import Bank of India (Exim Bank) on behalf of the government of India extended a line of credit of $500 million to the Srilanka government for financing the purchase of petroleum products.
Asian Development Bank (ADB) provided a record USD 4.6 billion in sovereign lending to India in 2021. This included USD 1.8 billion towards coronavirus disease (COVID-19) pandemic response.
Bank of Baroda will acquire Union Bank of India’s 21% stake in IndiaFirst Life Insurance Company. It is a joint venture between the Bank of Baroda, Union Bank of India, and Carmel Point Investments.
On the occasion of the 17th foundation day of Security Printing and Minting Corporation of India Limited (SPMCIL), finance Minister, Nirmala Sitharaman has launched the first colour souvenir coin on ‘Panchtantra’.
Yes Bank has launched an ‘Agri Infinity’ programme for digital financing solutions in the food and agriculture sector ecosystem by mentoring entrepreneurial ventures in this field.
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.

Economy Current Affairs

India has become the second country after China to implement the T+1 stock settlement mechanism in a phased manner from 25 February. Instruction regarding this was issued by SEBI on January 01, 2022. Before this, the settlement period of stocks in India was T+2, i.e. two days after the actual buy/selling of stock.
CRISIL (Domestic rating agency) has estimated FY-23 real GDP growth at 7.8% as compared with the 8.5% projected in the Economic Survey.
The Government of India has done a conversion switch transaction of its securities with the RBI for an amount of Rs.1, 19,701 crores (face value). The transaction involved buying back securities that are being matured in FY 2022- 23, FY 2023-24 and FY 2024-25 from the RBI and also issuing fresh securities for equivalent market value, to make the transaction cash neutral.
The largest buyer, the Central Bank of Thailand, bought 90 metric tonnes of gold while RBI bought 77.5 metric tonnes taking its total gold reserve to 754.1 tonnes at the end of December 2021. Reserve Bank of India emerged as the second-largest buyer of yellow metal among the world’s Central Banks in 2021.
Ministry of statistics and programme implementation (MoSPI) has projected India’s gross domestic product (GDP) deflator for FY23 at 3 to 3.5%. The Government’s own projection on real GDP growth for FY23 is at 7.6-8.1% and the union budget projected nominal GDP growth rate to be 11.1% for FY23. GDP Projection in the Budget is based on advance estimates of the ‘National Statistical Office’ (NSO).
As per consumer price index (CPI) measure, India’s retail inflation accelerated to 6.01% in the month of January, breaching the Reserve Bank of India (RBI) tolerance band of 6%, albeit marginally. The surge in inflation print was driven by higher consumer goods and telecom prices along with a comparatively low rate a year ago.
With a view to provide further relief to consumers and to keep in check any further rise in the prices of domestic edible oils, the Centre has reduced the agri-cess for Crude Palm Oil from 7.5% to 5%. The current basic rate of import duty of zero per cent on Crude Palm Oil, Crude Soyabean oil, and Crude Sunflower Oil up to the 30th of September this year.
India’s wholesale inflation has eased to 12.96 % in January from 13.56 % in the previous month. The Wholesale Price Index (WPI) based inflation has declined consistently in recent months. It fell from 14.87 % in November 2021 to 13.56 % in December 2021 and further to 12.96 % in January 2022. However, inflation still remains at an elevated level and is a matter of concern for economic policymakers.

Banking Current Affairs

National Payments Corporation of India (NPCI) and the UPI ecosystem have announced the UPI Safety and Awareness initiative, to create awareness amongst consumers. Under this initiative, NPCI and the UPI ecosystem will observe February 1-7 as ‘UPI Safety and Awareness Week’ and the whole of February as ‘UPI Safety and Awareness Month’.
Tata Group has chosen State Bank of India, Bank of Baroda and HDFC Bank as preferred bankers for Air India. Air India is the largest international carrier out of India with an 18.6% market share. Tata Sons have availed of Rs.10, 000 crore loan from SBI and Rs 5,000 crore loan from BoB. The loans are unrated, unsecured, and pegged at 4.25% [interest rate] annually.
ICICI Lombard General Insurance has partnered with Airtel Payments Bank to offer cyber insurance to customers of the bank. This policy provides financial protection to customers against potential financial fraud relating to banking, credit or debit card; identity theft; phishing or email spoofing etc. Airtel Payments Bank customers can purchase this cyber insurance policy within minutes using the Airtel Thanks app.
Razorpay has expanded into South-East Asia with the acquisition of a majority stake in a Malaysian fintech firm Curlec. Razorpay expects to complete the full acquisition in the next one-and-a-half years. The Kuala Lumpur-based, Curlec builds solutions for recurring payments for businesses. This marks Razorpay’s fourth acquisition overall and its first in the international markets.
Central Bureau of Investigation (CBI) has booked ABG Shipyard (flagship entity of ABG Group) for an alleged Rs.22, 842-crore financial fraud. It has cheated a consortium of 28 banks and financial institutions of Rs.22,842 crore. This is the biggest bank fraud case ever registered by the CBI. The case pertained to funds gotten and misused during the 2012-17 period. Rishi Agarwal, the then CMD of ABG Shipyard has been named in the FIR.
com, a digital platform for consumer credit, has partnered with RBL Bank Limited to offer ‘Paisa on Demand’ (PoD), a credit card that will be exclusively available on the Paisabazaar platform.
Small Industries Development Bank of India (SIDBI) has launched the ‘Waste to Wealth Creation’ programme for women in the Sundarbans in West Bengal. In this, the women will make ornaments and showpieces from the fish scales.
Securities and Exchange Board of India (SEBI) board has decided to make provision for separation of the roles of chairperson and MD/CEO as ‘voluntary’ against ‘mandatory’ earlier.
Jio Platforms has taken 25% stake in USbased deep-tech startup company TWO Platforms for $15 million. Two Platforms is an artificial reality company that focuses on building interactive and immersive AI experiences. The two companies have joined hands to fast track the adoption of new technologies and build disruptive technologies such as AI, metaverse and mixed realities.

Other Affairs

Dadasaheb Phalke International Film Festival Awards 2022

Was held on February 20 in Mumbai.
Film of the Year Award: Pushpa: The Rise
Best Film Award: Shershaah
Best Actor Award: Ranveer Singh for film 83
Best Actress Award: Kriti Sanon for film Mimi
Outstanding Contribution to Films: Asha Parekh
Best Actor in Negative Role Award: Aayush Sharma for film Antim: The Final Truth
People’s Choice Best Actor Award: Abhimanyu Dasani
People’s Choice Best Actress Award: Radhika Madan
Best Debut Award: Ahan Shetty for film Tadap
Best Playback Singer Male Award: Vishal Mishra
Best Playback Singer Female Award: Kanika Kapoor
Critics Best Film Award: Sardar Udham Singh
Best Director Award: Ken Ghosh for film State of Siege: Temple Attack
Best International Feature Film Award: Another Round
Best Short Film Award: Pauli
Best Actor in Web Series Award: Manoj Bajpayee for The Family Man 2
Best Actress in Web Series Award: Raveena Tandon for Aranyak
Best Web Series Award: Candy

Beijing Winter Olympic Games 2022

Was held from 4 to 20 February 2022. The Games featured a record 109 events across 15 disciplines in 7 sports.
Norway has topped the medal table for the second successive Winter Olympics, winning a total of 37 medals, including 16 golds. This is a new record for the most amounts of gold medals won at a single Winter Olympics.
Germany finished second with 27 medals overall, while China finished third with 15 medals.
India could not win any medal at the games.

Monetary Policy

Repo rate unchanged at 4% for the 10th consecutive time.
Reverse repo rate will continue to be 3.35%.
Marginal Standing Facility (MSF) rate and bank rates remain unchanged at 4.25%
CRR: 4%
SLR: 18.00%

ICC Under19 World Cup 2022

India defeated England by four wickets to clinch a record-extending fifth title at the Sir Vivian Richards Stadium, Antigua.
Yash Dhull becomes the fifth Indian captain to win the title after Mohammad Kaif, Virat Kohli, Unmukt Chand and Prithvi Shaw.
Player of the Match: Raj Angad Bawa (India) Final between India and England.
Player of the series: Dewald Brevis (South Africa). He broke all records to score 506 runs in only six innings, the most for any batter in any Under19 World Cup ever.

Indian National Women’s Day

The day is observed every year on 13 February to commemorate the birth anniversary of Sarojini Naidu.
Sarojini Naidu was born on February 13, 1879 in Hyderabad. She is also known as ‘Nightingale of India’ or ‘Bharat Kokila’ because of her poems.
In 1925 Sarojini Naidu became the president of the Indian National Congress. She was one of the forefront leaders who led the Civil Disobedience Movement and the Quit India Movement.
When she graces the United Provinces as Governor in 1947, she rewrites the history by becoming the first woman to hold the office of Governor in the Dominion of India.

BANKING & FINANCIAL CURRENT AFFAIRS FEBRUARY 2022

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