Financial Awareness at a Glance (25 March – 31 March 2018)

Dear readers,

Today, we are sharing the next part of our Banking and Finance Awareness Series “Financial Awareness at a Glance “. Go through this now to get all the important insights which took place last week in Banking and Finance Sector in India and world. This will immensely help you in upcoming exams.

Financial Awareness at a Glance

1. SWIFT announced the extension of its gpi Tracker

  • To cover all the payment instructions sent across the network SWIFT announced the extension of its gpi Tracker.
  • It will enable gpi banks to track all their SWIFT payment instructions at all times, and give them full visibility over all their payments activity.
  • SWIFT gpi tracker is very beneficial for banks and their customers since its launch.
  • The tracker has been available since May 2017, which allows banks to track their GPI payments in real-time.

End-to-end tracking reference – November 2018

  • The Tracker enables banks that have signed up to the service to track their gpi payments in real-time.
  • From November 2018 a unique end-to-end transaction reference will be included in all payment instructions carried between all 11,000 customers on SWIFT at all times, across more than 200 countries and territories.
  • This will give gpi customers full end-to-end tracking of all their payment messages quickly and efficiently, bringing even greater transparency and cost reduction.

 About SWIFT

  • SWIFT  stands for –  Society for Worldwide Interbank Financial Telecommunication.
  • A SWIFT transfer is a type of international money transfer sent via the SWIFT international payment network.
  • This is a kind of network between banks, which can be used to send and receive messages.
  • In fact, it is used by many banks and financial services providers and institutions, and through them, the payment becomes easily and fast.
  • For every bank, there is a special swift code that works for its identification.
  • The SWIFT network does not actually transfer funds, but instead, it sends payment orders between institutions’ accounts, using SWIFT codes.
  • SWIFT code is an international bank code that identifies particular banks worldwide.
  • It’s also known as a Bank Identifier Code (BIC). CommBank uses SWIFT codes to send money to overseas banks. SWIFT code consists of 8 or 11 characters.

2. India & ADB signed $80 million agreement to boost Youth Employability in HP

  • India and Asian Development Bank (ADB) signed $80 million loan agreement to help boost Youth Employability in State of Himachal Pradesh.
  • The project will help modernize technical and vocational education and training (TVET) institutions and improve the skills ecosystem in Himachal Pradesh.
  • The project will help in training the youth with market-relevant technical and vocational skills.

3. Exim Bank offers $500 million credit facility to ECOWAS Bank

  • The Export-Import Bank (Exim Bank) will provide a USD 500 million credit facility to ECOWAS Bank for Investment and Development (EBID) to fund various development projects in western-south Africa.
  • The LoC of USD 500 million to EBID is an umbrella limit for financing developmental projects in 15-member countries of EBID in West African region — Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.
  • These projects entitled to get the funding may belong any sector which is of priority of the governments of any of the member states of EBID.

4. India is 3rd Largest Electricity Producer in the World

  • India became the 3rd largest electricity producer in the world.
  • The electricity production grew in India is 34% over seven years to 2017.
  • India now produces more energy than Japan and Russia, which had 27% and 8.77% more electricity generation capacity installed, respectively.
  • according to a February 2018 report by India Brand Equity Foundation (IBEF), electricity production in India stood at 1,003.525 Billion Unit between April 2017-January 2018.
  • The power sector has a 100% foreign direct investment (FDI) permit, which boosted FDI inflows in the sector.
  • The top 3 Producers of Electricity in the world are- China, 2. USA & 3. India.

5. India is 4th Largest Auto Market in the World

  • According to the latest global data, India surpassed Germany to become the fourth largest automobile market in the world.
  • India automobile sales which include passenger and commercial vehicles grew by 9.5%.
  • In India last year more than 4 4 million units vehicle sales as compared to Germany’s 3.8-million which rose by a modest 2.8% in the same period.
  • The top 3 countries on the list are- China, 2. USA & 3. Japan.

6. Equitas Bank launches Yellow Army Savings Account

  • Equitas Small Finance Bank signed an agreement with the Chennai Super Kings (CSK) to launch a new ‘Yellow Army Savings Account’ to increase its customer base.
  • Chennai Super Kings (CSK) is a franchise of the Indian Premium League (IPL).
  • The yellow army savings account will offer an interest rate of 6% per annum for balance below Rs10 lakh and 6.5% per annum for balance above Rs10 lakh.
  • The average quarterly balance requirement will be Rs10,000 per account.

7. Cabinet approved MoU on in the field of Intellectual Property between India & Canada

  • The Union Cabinet gave its ex-post facto approval to the MoU between India and Canada to boost bilateral cooperation in the field of Intellectual Property Rights (IP).
  • The MoU is intended to promote innovation, creativity and economic growth in both countries.
  • It also includes cooperation to understand how traditional knowledge is protected.

8. Mewat is most backward district: Niti Aayog

  • According to the Niti Aayog Mewat in Haryana is the most backward while Andhra Pradesh’s Vizianagaram is the best-performing district of the country.
  • Niti Aayog released the baseline ranking for 101 aspirational districts based on 49 indicators across five sectors that includes health and nutrition (30% weightage), education (30%), agriculture and water resources (20%), financial inclusion and skill development (10%), and basic infrastructure (10%).
  • Mewat is preceded by Madhya Pradesh’s Singrauli and Telangana’s Asifabad at the bottom of the list.
  • While Chhattisgarh’s Rajnandgaon and Maharashtra’s Osmanabad lie second and third on the top of the table.
  • The total number of districts in the programme is set to go up to 117 when 10 districts of Odisha, five from West Bengal and one from Kerala join.

9. RBI fined Rs 58.9 Cr penalty on ICICI Bank

  • The Reserve Bank of India had imposed a monetary penalty of Rs. 58.9 crore on ICICI Bank Limited.
  • The penalty was imposed for violating norms relating to the sale of government securities from the held-to-maturity category of its bonds portfolio.
  • The Central Bank stated this penalty has been imposed in the exercise of powers vested with the RBI under the provisions of the Banking Regulation Act, 1949, taking into account failure of the bank to adhere to its directions/guidelines.

Note:

  • There are certain conditions for the business of HTM Securities. Banks can sell 5 percent of HTM securities without any prior permission.
  • After this limit, banks have to seek permission from the Reserve Bank and also have to disclose it in the Annual Report.

10. SEBI Allows Physical Settlement of Stock Derivatives

  • Securities & Exchange Board of India (SEBI) has allowed physical settlement of both stock options and stock futures.
  • At present only cash settlement of derivatives is allowed.
  • SEBI has accepted most of the recommendations of the Uday Kotak committee, which was set-up to review corporate governance norms of listed companies.
  • Physical settlement in derivatives is nothing but settling of a trade by giving and take of shares rather than cash.

Note:

  • SEBI Chairman – Ajay Tyagi
  • SEBI headquarters – Mumbai
  • SEBI is the regulator of the capital market.

Thanks

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