Introduction
The article Banking Awareness One Liners April 2019 includes Banking Awareness One Liners with an explanation, analysis and issues of current events in the month of April. And these One Liners will help in the Competitive Exams like IBPS, RBI Grade B, SBI PO, RRB and other banking examinations.
April 2019
- The Reserve Bank of India (RBI) is likely to replace the controversial one-day default norm and give a grace period of 30 days to identify the early stress of borrowers.
- Air India continues to face the impact of software shutdown and around 29 flights were delayed. The software is owned and managed by Atlanta-based SITA.
- SBI is hiring more bankruptcy and legal firms to strengthen its stressed assets team to handle insolvency cases of over Rs.100 crores.
- The staff of Jet Airways has promised to secure an investment of around Rs.3,000 crores and has sought approval of SBI.
- Essar Steel case- SBI has moved to invoke Essar Steel personal guarantees of ₹15,000 crore of Prashant and Ravi Ruia, the promoters of Essar Steel.
- Reserve Bank of India is the lender of the last resort to scheduled commercial banks because RBI can come to the rescue of a bank that is solvent but faces temporary liquidity problems by supplying it with much-needed liquidity when no one else is willing to extend credit to that bank.
- Central Government is the final authority for deciding the design, form and material of bank notes.
- RBI is issue the licence for the the licences to launch a banking company in India.
- Hot Money is the fund which flows in the market to take advantage of high-interest rates.
- Primary agricultural cooperative societies are the cooperative banks at the village level.
- Axis Bank has dragged two more Lanco group companies to the bankruptcy court for defaulting on their loans, intensifying an ongoing legal battle between the private sector bank and the Hyderabad-based infrastructure and energy group.
- The government is soon likely to invite select lenders for discussion on a second round of merger in public sector banks, according to a finance ministry official.
- As India embarked on a journey towards digitisation of payments, mobile wallets and Unified Payments Interface might have hogged the limelight, but the good old plastic card continues to be one of the most formidable payment instruments in the country. Visa, which is one of the largest card schemes globally, has been bringing in innovation to help India in its cashless journey.
- NRI Account refers to funds deposited by a Non-Resident Indian with a financial institution authorized by the Reserve Bank of India to provide such services.
- The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance of a revised framework for resolution of stressed assets by the Reserve Bank and the guidelines are expected to be announced before [latex]23^{rd}[/latex] May 2019.
- US sanctions on Iran, rising unrest in the Middle East and North Africa and oil price volatility are dragging regional economic growth.
- Online restaurant guide and food ordering firm Zomato said it will invest around Rs 56 crore to set up 20 more warehouses across the country by the end of 2020 under its B2B platform, Hyperpure.
- Foreign investors were net buyers in the Indian capital markets for the third straight month in April, pouring in Rs 17,219 crore on favourable macroeconomic conditions and ample liquidity.
- The Government has hiked the customs duty on wheat to 40 per cent from 30 per cent to curb imports and protect the domestic industry.
- Indian Accounting Standard 116 or Ind AS-116 has come into effect from April 1 and pertains to principles for recognition, presentation and disclosure of leases.
- Hindustan Petroleum Corp Ltd’s plans to acquire Mangalore Refinery and Petrochemicals Ltd (MRPL) has hit a cash hurdle, with parent ONGC preferring a cash deal rather than a share-swap.
- China’s investment strategy of throwing money at developing countries appears to have hit a snag in the Republic of Congo as the central African nation is seeking an IMF bailout.
- GST officers are working on a system where businesses above a certain turnover threshold will have to generate ‘e-invoice’ on Government or GST portal for every sale, thereby effectively reducing the room for tax evasion.
- National Housing Bank is headquartered at New Delhi.
- EXIM Bank is headquarted at Mumbai.
- Small Industries Development Bank of India (SIDBI) is headquartered at Lucknow.
- The ratio of the liquid assets to time and demand liabilities is termed as Statutory Liquidity Ratio.
- A Bank Rate is also Known as Discount Rate.
- Repo rate is the rate at which RBI lends to its clients generally against government securities.
- The Increase in the Repo rate will increase the cost of borrowing and lending of the banks which will discourage the public to borrow money and will encourage them to deposit.
- Reduction in Repo rate helps the commercial banks to get money at a cheaper rate and increase in Repo rate discourages the commercial banks to get money as the rate increases and becomes expensive. Reverse Repo rate is the rate at which RBI borrows money from the commercial banks.
- Reverse repo rate is the rate at which RBI borrows money from the commercial banks.
- Treasury Bills is the government bond or debt securities with a maturity of less than One Year.
- Order Cheques are the cheques which are withdrawn for the payee(the cheque withdrawn for whose person).
- Bearer cheques are the cheques which withdrawn to the cheque’s owner.
- Cash Reserve Ratio is a certain percentage of bank deposits which banks are required to keep with RBI in the form of reserves or balances.
- The cheques on which two parallel line made on the upper part of the cheque are called Crossed cheque.
- The cheque issued by a holder does not get withdrawn from the bank till three months, then that type of cheque are called Stale Cheque.
- The cheque issue for the upcoming withdrawn date but it withdraw before the date printed on the cheque, then that type of cheques are called Anti dated cheques.
- The Reserve Bank of India announced it will shortly issue new ₹20 denomination banknotes in the Mahatma Gandhi (New) Series.
- Base Rate is the rate of interest on which banks base their lending rates. Usually loans are given at a rate higher than the base rates and saving rate is below the base rate.
- Cheque is written by an individual to transfer amount between two accounts of the same bank or a different bank and the money is withdrawn from the account.
- Bancassurance is the distribution of insurance products and the insurance policies of insurance companies by banks as corporate agents through their branches. Banks charge a fee for this service from insurance companies.
- The Supreme Court directed the Reserve Bank of India (RBI) to disclose information pertaining to its annual inspection report of banks under the Right to Information (RTI) Act unless they are exempted under law.
- When an account has insufficient funds the cheque is not payable and is returned by the bank with a reason “Exceeds arrangement” or “funds insufficient” is called Bouncing of a cheque.
- Inflation is an increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in the price level.
- Fiscal Deficit is the amount of Funds borrowed by the government to meet the expenditures.
- Deflation is a contraction in the supply of circulated money within an economy, and therefore the opposite of inflation.
- Core Banking is a general term used to describe the services provided by a group of networked bank branches.
- Current Account is an account that can be opened generally for business purposes with no restrictions on withdrawals and no interest paid.
- Call money is a loan that is made for a very short period of a few days only with a low rate of interest.
- Cash Reserve Ratio is the amount of funds that a bank keeps with the RBI. If the percentage of CRR increases then the amount with the bank comes down.
- In the time of monetary shortage, RBI can buy commercial bills from the market. By using this method It injects credit into the market.
- In 1976 IDBI delinked from the RBI and taken over by Government of India.
- If the price rises by not more than 3% per annum, the type of inflation is Creeping inflation.
- If the price rises by more than 20% and less than 1000% per annum, then the type of inflation it is Galloping inflation.
- The SLR is commonly used to control Inflation and regulates the credit growth. The minimum limit(Earlier Limit) of SLR is 25%.
- Following the amendment of the Banking regulation Act(1949) in January 2017, the floor rate of SLR 20.75 was removed.
- If any Indian bank fails to maintain the required level of SLR, then it becomes liable to pay penalty to Reserve Bank of India.
- A group of minority shareholders have sought permission from SBI Capital Markets to present a proposal to lenders to revive the airline.
- BJP leader Subramanian Swamy has written to Suresh Prabhu, the civil aviation minister, asking him to recommend the cabinet to merge Jet Airways with Air India.
- BCCI may face Rs.1600 crore Fema violation charge for remitting the funds to two overseas bankers for Champion League T20 without the approval of RBI.
- The number was more than 24,000 for issues around debit cards and ATMs and 12,000 regarding issues around credit cards.
- The retail payments body has asked banks to implement both the emandate measures by [latex]30^{th}[/latex] June.
- Example of Time liability is a six month fixed deposit which is not payable on demand but only after six months.
- If any Indian bank fails to maintain the required level of Statutory Liquidity Ratio, then the defaulter bank pays penal interest at the rate of 3% per annum above the Bank Rate, on the shortfall amount for that particular day.
- If the defaulter bank continues to default on the next working day, then the rate of penal interest can be increased to 5% per annum above the Bank Rate.
- Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements as measures of credit control are classified as Quantitative methods.
- In periods of boom, which leads to economic instability RBI resorts to Sale first class securities in its precession in the market, to reduce the supply of money as a measure of open market operations.
- Cash reserve ratio is maintained in the form of Balance with RBI.
- Bank rate means The standard rate at which the RBI is prepared to buy or to re discount eligible bills of exchange or other commercial papers of commercial banks.
- RBI is the authority in India for effecting changes in the cash reserve ratio and statutory liquidity ratio.
- In the opinion of the Governor of Reserve Bank of India, Excess liquidity in market is the reason owing to which India’s inflation is accelerating.
- When Reserve Bank intends to increase credit by the banking system, it Reduces the bank rate.
- Open Market Operations refer to Buying and selling of government securities in the open market.
- Statutory Liquidity Ratio (SLR) is the percentage of total deposits of a bank which it has to keep with itself in the form of liquid assets.
- Jet Airways has provided a web interface to travel agents for refund claims which can be submitted until 20 May. Every Monday Jet Airways and credit card companies will validate the claims. Claims for flight ticket refunds will be validated within 45 days.
- Amit Jain, head of the Asia Pacific business Uber, has resigned, reportedly in a restructuring jig before the launch of IPO.
- Omnivore Partners, an early-stage venture investment fund, has raised $97 million for its second fund as against its target of $75 million.
- The country's largest lender SBI led the complaint list with close to 47,000 plaints, while HDFC Bank led among the private sector lenders with over 12,000 complaints, and American lender Citibank had 1,450 complaints.
- SBI, which accounts for about a fourth of the country’s loan market, has elevated eight executives as deputy managing directors (DMD) in one of the biggest recent HR revamps, establishing an organizational structure that can underpin growth in FY20.
- The ED had also asked Kochhar to make full disclosure in line with the one she made to RBI and other regulators.
- The RBI has directed banks to disclose loans outstanding to Infrastructure Leasing & Financial Services and the provisions required to be made against the exposure, in their notes accompanying their fourth-quarter financial results.
- The term plastic money applies to Credit cards issued by the banks.
- Electronic Clearing Scheme operates under the aegis of RBI.
- On 24 April 1865, a group of Europeans at Allahabad founded Allahabad Bank. By the end of the 19th century it had branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Calcutta, and Delhi.
- As per RBI, 75% of the credit given out by small finance banks will need to go to sectors that are considered part of so-called priority sector lending.
- The period of time between the current to a new job is referred to as Frictional unemployment.
- Currency note of Rs. 500 will have five bleed lines on left and right in raised print. 7 bleed lines are there on the left and right in Rs. 2000 currency note.
- Compensation amount not exceeding Rs.1 lakh to the complaint for mental agony and harassment may be awarded by Banking Ombudsman.
- Form GST REG - 02 is used for Acknowledgement of registration for GST.
- The validity of the GST registration certificate is Valid till it is cancelled.
- The Headquarters of TransUnion CIBIL is located in Mumbai.
- NIXI stands for National Internet Exchange of India.
- The ratio of the cash reserves that banks are required to keep with RBI is known as CRR.
- Cheque Withdrawal is not a fuction at ATMs.
- Debentures is a capital market instrument.
- State-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard is called Fiat Money.
- The maximum compensation by Banking Ombudsman for a complaint is- Rs.10lakh.
- Twitter has appointed Manish Maheshwari as new MD for the India market effective from [latex]29^{th}[/latex] April. Maheshwari was earlir CEO of Network18 Digital.
- Spicejet has signed an initial pact for code share partnership with Emirates airline. Code-sharing allows an airline to book its passengers on its partner carriers.
- Flipkart has opened its second data-centre in India at Hyderabad and has reportedly invested around Rs.200 crores for the same. The first data-centre is in Hyderabad.
- India must focus on growth of labour-intensive sectors to create decent jobs for the masses as well as give "serious thought" to privatising the public sector banks (PSBs), eminent economist Arvind Panagariya has said, emphasising that the reform process must be completed in the coming five years.
- The Finance Ministry has asked CPSEs identified for strategic sale to immediately prepare a list of assets and initiate dialogue with potential investors and bidders so that their non-core assets can be monetised quickly.
- The Supreme Court has asked Madurai Bench of Madras High Court to hear the case of TikTok app by [latex]24^{th}[/latex] April else the ban will be automatically lifted.
- Seven banks have gone live on the National Payments Corporation of India’s (NPCI’s) platform, allowing customers to provide e-mandate through netbanking, while Kotak Mahindra Bank enables customers to do this using a debit card as well.
- SBI was ranked 60th in the list of Top 1000 Banks in the world by "The Banker" in July 2012.
- In 1955, the Reserve Bank of India acquired the controlling interests of the Imperial Bank of India and SBI was created by an act of parliament.
- There are the different categories under priority sector in banking. Corporate Sector is not under the priority sector.
- Central Bank of India is the first Bank to introduce Credit Card in India.
- The rupee denominated borrowing by Indian entities in overseas market is known as Masala Bond.
- An asset becomes non-performing when it ceases to generate income for the bank.
- ‘Let’s make money Simple’ is the tagline of Kotak Mahindra Bank.
- Fund Based Services are not provided by the Retail Banks.
- The Reserve Bank of India may face legal challenges to its rule on the age limit for bank CEOs, unless it is changed. The RBI caps the age limit for banks at 70. But under the Companies Act, banks that are also registered companies can have chief executives who are over 70 years of age by passing a special resolution.
- With an uncertain future staring at over 22,000 employees of the grounded Jet Airways, bank unions suggested offering special loans to them to tide over RPT over the financial criss arising from non-payment of salaries.
- The average monthly formal job creation has been falling consistently with every successive EPFO payroll release, which is the only gauge to measure formal job creation in India.
- The Bimal Jalan committee on the appropriate capital reserves for the Reserve Bank is likely to identify an excess buffer of up to Rs 3 lakh crore.
- Reserve Bank of India (RBI) has appointed 5-member committee under the chairmanship of Nandan Nilekani to strengthen digital payments as well as to boost financial inclusion through Financial Technology.
- India has extended a grant assistance of up to USD 250 million to Nepal for the reconstruction of infrastructures in the areas of housing, education, health and cultural heritage that was destroyed during the devastating April 2015 earthquake which saw the death of over 9,000 people.
- The International Monetary Fund (IMF) and the World Bank have together launched a private blockchain with a pseudo-token.
- Fincare Small Finance Bank (SFB) has been awarded the prestigious Celent Model Bank 2019 Award in the category of Financial Inclusion, for ‘Redesigning Lending to Reach Small Businesses’.
- The Centre has announced a new Rs 20 coin which will come in 12-edged polygon (dodecagon) shape. The government is also planning to release new coins of Re 1, Rs 2, Rs 5 and Rs 10. However, the govt has not announced the exact date for the issuance of these new series coins.
- The Insolvency and Bankruptcy Board of India is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies, Insolvency Professionals and Information Utilities in India.
- The amalgamation of Vijaya Bank and Dena Bank into the Bank of Baroda (BoB) has come into effect and all branches of the former two will function as branches of BoB.
- The Institute for Development and Research in Banking Technology (IDRBT), an arm of Reserve Bank of India, has launched a 5G Use Cases Lab for banking and financial sector.
- IDBI Bank has launched ‘NRI-Insta-Online’ account opening process for NRIs residing in the Financial Action Task Force (FATF) member countries.
- ACI Worldwide, a global provider of real-time electronic payment and banking solutions, announced that Canara Bank has successfully rolled out major new functionality to support EMV card acquiring across its ATM network and Aadhaar Authentication, leveraging ACI’s UP Retail Payments solution to achieve market firsts.
- The Institute for Development & Research in Banking Technology (IDRBT) is an institution exclusively focused on banking technology.
- Industrial Development Bank of India was established in 1964 by an Act to provide credit and other financial facilities for the development of the fledgling Indian industry.
- The RBI stated that IDBI Bank has been categorised as a private sector bank for regulatory purposes with effect from 21st January, 2019. This follows Life Insurance Corporation of India (LIC) acquiring 51 per cent of the total paid-up equity share capital of the bank.
- Alok Sama, CFO, SoftBank Group International will reportedly step down from his post but will remain a senior adviser. Among other big deals, Sama led the execution teams for $59 billion merger of Sprint and T-Mobile and acquisition of ARM Holdings for $34 billion.
- Nasim Zaidi, non-executive and non-independent director, who joined the Jet Airways board in August 2018, has resigned from the board, citing personal reasons and time constraints. Zaidi is former Chief Election Commissioner and ex-civil aviation secretary.
- eBay may lead a $160-170 million investment funding round in Paytm Mall. eBay is looking to explore offline-to-online commerce and payment strategy in India.
- TCS has partnered with India Posts to modernize mail and package delivery, enhance customer experience and launch new services for revenues. It is a multi-year deal.
- The government may soon introduce a simple single clearance process to incorporate a company with all registrations like PAN, S.Tax, EPF, etc.
- Air India chairman Ashwani Lohani held preliminary talks with his State Bank counterpart Rajnish Kumar in the Capital on the national carrier’s interest in leasing five Boeing 777s from the now-grounded Jet Airways.
- In a fresh attempt to retain control over its realty arm Jaypee Infratech, crisis-hit Jaypee group’s promoters apologised to thousands of distressed home buyers and promised to infuse Rs 2,000 crore to complete pending apartments over the next four years.
- Bombay High Court has refused to intervene and said that it cannot direct govt and RBI to rescue a sick company.
- President of Jet Airways union has called for CBI investigation into the matter alleging a conspiracy to oust Naresh Goyal.
- IATA has suspended Jet Airways membership from its clearinghouse system. This may impact the refund process to passengers.
- CBDT has identified 20.4 million non-filers between 2013 and 2017 and asked I-T dept to take action.
- JSW Infrastructure has elevated Arun Maheshwari as new joint MD & CEO, Currently Executive VP, Maheshwari has experience of over 25 years in the steel industry.
- As per the data collected by EY, India received $35.8 billion in PE/VC investments in 2018, 37% higher than $26.1 billion received in 2017.
- As per the guidelines of the Securities and Exchange Board of India (SEBI), the Government picked up the entire SBI shares held by the RBI at a price of Rs. 1,130.35 a share.
- Since March, 1934 India is a member of the International Monetary Fund. It has to, therefore, maintain its rate of exchange at the level which it has declared to the IMF.
- The Reserve Bank of India, as the central bank of the country, regulates the flow of credit.
- Regional Rural Banks are sponsored by Nationalised Commercial Bank.
- UTI Bank is the country’s third largest private sector lender whose name has been officially changed to the Axis Bank ltd.
- Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system.
- Reverse Repo rate is the rate at which the RBI borrows money from commercial banks. Banks are always happy to lend money to the RBI since their money are in safe hands with a good interest.
- Statutory liquidity ratio refers to the amount that the commercial banks require to maintain in the form of gold or government approved securities before providing credit to the customers. Here by approved securities we mean, bond and shares of different companies.
- Most automated teller machines (ATMs), or machines that dispense cash, are owned by banks. But ones that are owned and operated by non-banking companies are called while-label ATMs (WLAs).
- Union Bank of India was inaugurated by Mahatma Gandhi in 1919.
- After State Bank of India, Punjab National Bank has the largest number of offices.
- Low rate of interest in the initial period which goes up subsequently are teaser loan rates charged by banks.
- Interest rate swap is used in banking field.
- Bank rate is decided by Reserve Bank of India.
- Mumbai is the Head Office of Reserve Bank of India.
- The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called Excess reserves.
- My Junior Account is launched by Kotak Mahindra bank.
- Project Arrow is associated with Post department.
- SEBI is the regulator of Capital Market.
- Under Pradhan Mantri Jan Dhan Yojana life insurance is managed by Life Insurance Corporation of India.
- Minimum Needs Programme (MNP) was started in the year 1974.
- J. Reddy Committee is related to reforms in insurance sector.
- India post payment bank entire equity to be shared by Govt of India.
- Kotak Mahindra Bank has taken BILT Graphic Paper Products, a Ballarpur Industries arm, to NCLT for default of Rs.218 crores.
- Mukesh Ambani, Arundhati Katju and Menaka Guruswamy are among the Indians named by TIME magazine in its list of 100 most influential people in the world.
- Rakesh Suryakant Shah has resigned from the post of CFO of Adani Enterprises.
- Banker is a banking sector index of Bombay Stock Exchange (BSE).
- Monetary Policy committee is chaired by Urjit Patel.
- Reserve Bank of India offered schedule bank status to Himachal Pradesh State Co-operative Bank.
- Gilt-edged Market means market of Government Securities.
- Banks have urged the Reserve Bank of India (RBI) to make only a small relaxation in the new norms for stressed assets by requiring consent of 90% of lenders for approving a resolution plan instead of 100% mandated in the last year’s controversial circular, which was quashed by the Supreme Court recently.
- RBI has told NCLAT that banks will have to classify the accounts of IL&FS and its group companies as NPAs in view of its master circular and the judgment of Supreme Court.
- Walmart CEO Doug McMillon, has said that the firm continues to be committed to the Indian market given the huge opportunity it presents.
- Creditors of Gitanjali Gems have voted to end the resolution process citing time over-run and want to liquidate the firm. The firm owes over ₹12,550 crore to 31 financial creditors in the ₹14,000-crore PNB scam.
- PNB has appointed Rajesh Kumar Yaduvanshi as the executive director. Yadivanshi, who brings with him 34 years of experience in the banking industry, joined PNB as a management trainee in 1985.
- RBI has reportedly bid for the iconic Nariman Point building of Air India by offering 10 year’s lease rental as advance payment for the complete building.
- Bank of America Corp missed revenue expectations in the first quarter but its earnings still beat forecasts as the bank chopped its expenses and expanded its loan book.
- ICICI Bank expects to quicken the pace of its auto loan growth after launching an instant loan for customers wanting to buy cars and two wheelers. Pre-approved ICICI customers can now sanction a letter for a car or auto loan instantly which can be used to get a loan on the full on road price for these vehicles within 15 days.
- Imports from the China, Japan, South Korea and Indonesia also increased as they diverted supply into India after the tarrif and other protectionist measures, ate away at the India’s markets in the Middle East and Africa.
- India's Jet Airways was teetering on the brink of collapse, operating just five planes and waiting for lenders to release emergency funds to keep the debt-saddled carrier flying.
- Asian Development Bank (ADB) committed a total of USD 3.88 billion, including sovereign loans and co-financing to India during the year ended December 2018. This is the highest level of assistance since sovereign operations began in the country in 1986.
- India became a net importer of steel in the fiscal year 2018-2019 that ended on 31 March for the first time in 3 years, as the 25% import duty on steel products imposed by the US diverted supplementary supplies to India.
- Reserve Bank of India put into circulation 50 rupees denomination banknotes signed by its Governor Shaktikanta Das. RBI in Mumbai approved the design of these notes is similar in all respects to 50 banknotes in Mahatma Gandhi new series.
- Certificate of Deposit (CD) is a negotiable money market instrument.
- Leverage is Ratio of assets to capital.
- IBBI chief has said that IBC cases admitted over RBI circular shall continue even though the Supreme Court quashed RBI’s February 12, 2018 order on NPA.
- 91 days, 182 days, 364 days is the maturity period of T-Bills issued by Government of India.
- The minimum prescribed for RTGS transactions limit is 2 lacs and there is no maximum limit.
- Money market is not a component of the Capital Market.
- R A Sankara Narayana has been appointed as MD & CEO of Canara Bank. He was earlier Chairman of Vijaya Bank.
- IIFL Asset Management has picked up a significant minority stake in Neewee Analytics through IIFL India Private Equity Fund.
- Delhi High Court has said that ED, CBI and IT Department can attach assets mortgaged to banks.
- Indian Bank have Headquarter in Chennai.
- The government is likely to extend the last date for submission of bids for the strategic sale of Air India’s ground handling subsidiary AIATSL by a month, till [latex]16^{th}[/latex] May.
- Indian steel exports fell by 34 percent to 6.36 million tonnes in the fiscal year that ended in March 2019.
- In pursuance with the recommendations of Narsimhan Committee, the RBI has framed new guidelines to govern entry of new private sector banks to make the banking sector more competitive.
- IDA institution is considered as 'soft loan window'.
- The capital market where money is provided for periods longer than a year as the short-term fund raising occurs in other market, is regulated by SEBI.
- Primary Market and Secondary Market are common in equity and debt market.
- Derivatives is NOT a short term money market instrument.
- 330 rupees is the premium amount per annum per member under Pradhan Mantri Jivan Jyoti Bima Yojana.
- Reliance Jio’s fibre network is raising around Rs.27,000 crores in syndicated loans from a group of banks for business expansion.
- ArcelorMittal has appointed its representatives to the monitoring committee of Essar Steel.
- CureFit is close to raising $75 million in a fresh round of funding from Accel Growth and Chiratae Ventures. The funding may take the firm’s valuation to $500 million.
- Fino paytech is a type of Payment bank.
- Secondary Market is also known as After Market.
- N.K. Singh committee is related to foreign direct investment.
- 19 public sector commercial banks are there at present.
- IMF estimates are higher than those of the Reserve Bank of India. RBI had last week cut its growth forecast to 7.2% for this fiscal and 7.4% for FY21.
- India’s growth is expected to stabilise at 7.75% over the medium term, driven by structural reforms and the easing of infrastructure bottlenecks.
- IMF calls for continued implementation of structural and financial sector reforms in order to lower public debt and aid growth.
- The global growth will be 3.3% in 2019, down from 3.6% in 2018 and 4% in 2017.
- The level of non-performing loans in India remains high and the IMF has favoured bolstering the level of capitalisation of some banks, particularly government-owned banks.
- The current gender pay gap in India stood at 19 per cent where men earned Rs 46.19 more per hour in comparison to women.
- The Department of Telecommunications (DoT) has approved the merger of Tata Teleservices with Bharti Airtel Ltd., subject to the condition that it furnishes a Rs 7200 crore bank guarantee.
- At the time of SEBI's establishment, S.A Dave was its chairman.
- Economic growth is usually link with Inflation.
- Eden Gardens stadium is situated in Kolkata.
- Government of India and Asian Development Bank (ADB) have signed a $6 Million Loan Agreement to reduce floods and the riverbank erosion in Assam.
- Banks need to upgrade their Point of Sale (PoS) devices to run on 3G and 4G in the backdrop of the impending phase-out of 2G technology.
- The board of City Union Bank Ltd. recommended its independent director R. Mohan to be the next part-time chairman with effect from May 4.
- NTPC has inked a term-loan agreement with Canara Bank to raise Rs 2,000 crore, which would be used to part finance its capital expenditure.
- As per the World Bank, India’s GDP growth is expected to accelerate moderately to 7.5% in Fiscal Year 19-20, driven by continued investment strengthening, particularly private-improved export performance and resilient consumption.
- The RBI came out with guidelines for banks to setup new currency chests, which include a minimum area of 1,500 square feet for strong room.
- The new chests should have a processing a capacity of 6.6 lakh pieces of banknotes per day.
- Emirates Islamic has announced the launch of Chat Banking services for customers via WhatsApp, marking a global first in the Islamic banking sector.
- PAISALO Digital Limited signed the first coorigination loan agreement with SBI, the first agreement of its kind in the country that SBI has signed.
- The government has retained the interest rate for General Provident Fund (GPF), Contributory Provident Fund and other related schemes at 8% for the first quarter of the current financial year.
- TCS partnered with Google Cloud to build industry specific cloud solutions.
- RBL Bank has partnered with credit profiler CreditVidya to improve the lender's customer experience.
- Wall Street’s main indexes dipped, hit by a drop healthcare shares, but gains in financials ahead of big bank earnings helped limit losses.
- Dr CK Narayan of Chart Advise has a buy call on DCB Bank Ltd. with a target price of Rs 208. The current market price of DCB Bank Ltd. is Rs 199.35.
- SoftBank likes to take large stakes in companies working on artificial intelligence, data analytics, financial services and self-driving cars - technologies increasingly viewed as critical to national security.
- The rupee depreciated by 32 paise to 69.24 against the US dollar in early trade owing to increased demand for the greenback from importers and banks.
- The recent rate by the Reserve Bank is credit positive for residential mortgage-backed securities (RMBS) market as it will offset the rising funding cost for the lenders, preventing an increase in mortgage rates.
- Jaitley is visiting the US to attend the IMF-World Bank meeting in Washington from April 12 to 14. Arun Jaitley has discussed India’s economic reforms and outlook for the future in US.
- Bank credit rose by 13.24 percent to Rs 97.67 lakh crore, while deposits grew by 10.03 percent to Rs 125.72 lakh crore in the fortnight.
- Jet Airways founder Naresh Goyal has pledged 26 per cent stake in the ailing airline as security for loans from Punjab National Bank, according to a regulatory filing.
- Foreign investment of Indian companies grew 18 per cent to USD 2.69 billion in March as compared to the year-ago period, according to an RBI data.
- Google Pay has partnered with MMTC-PAMP India to allow its users to buy and sell gold through its app.
- Sachin Bansal is in talks with Chaitanya Microfinance to buy a large stake in the firm held by Shorecap.
- IndusInd Bank raises $400 mn in maiden offshore dollar bond issuance.
- State Bank of India (SBI) has put non-performing assets (NPAs or bad loans) worth ₹423.67 crore on auction to recover unpaid dues.
- IndusInd Bank Limited is a Mumbai based Indian new generation bank, established in 1994. Romesh Sobti is the CEO of Indusind Bank.
- A New Development Bank set up by the BRICS group of emerging economies has approved around $790 million of loans for three projects in South Africa, with over half that amount going to power company Eskom Holdings SOC Ltd.
- The Reserve Bank has imposed a penalty of ₹1 lakh on UP Postal Primary Co-operative Bank, Lucknow for violation of norms regarding shifting of its branch.
- State-owned Allahabad Bank would raise up to ₹4,000 crore equity capital by various means including public issue.
- Primary Co-operative Bank works at Village level. Central Co-operative Bank works at district level, and a State Co-operative Bank works at State level.
- The Reserve Bank of India (RBI) has slapped a penalty of ₹2 crore on Punjab National Bank (PNB) for non-compliance of regulatory directions with regard to SWIFT operations.
- SBI Capital has extended the deadline for investors to bid for a controlling stake of up to 75% in Jet Airways till [latex]12^{th}[/latex] April.
- Kotak Mahindra AMC and HDFC AMC are among the mutual funds forced to withhold or roll over FMPs with exposure to Subhash Chandra led Essel Group. Mutual funds have Rs.7,000 crore exposure to Essel Group.
- JM Financial has a buy call on Axis Bank with a target price of Rs 865. The current market price of Axis Bank is Rs 756.50.
- Dai-ichi Life is a life insurance company belonging to Japan.
- Avaada Energy has raised Rs.1,000 crores from ADB, Germany’s DEG and Netherlands’ FMO for financing its 2.4 GW renewable energy portfolio.
- It has found that in Mumbai almost 37 percent of those polled are expecting increment of above 20 percent, while in Pune and Chennai it is 36 and 38 percent, respectively.
- ECB President Mario Draghi confirmed that policymakers were considering measures to mitigate the impact on banks of its negative deposit rates.
- The BSE has signed a memorandum of understanding (MoU) with HDFC Bank with an objective to strengthen the BSE Startups platform. The MoU has been signed to spread more awareness on the benefits of the listing of startups on this BSE startup platform.
- Asian Development Bank, has predicted 1.7 trillion dollars is required to build disaster-resilient infrastructure in Asia.
- National Thermal Power Corporation (NTPC), the State-run power giant, has signed a term-loan agreement with Canara Bank to raise Rs 2,000 crore. The agreement would be used to part finance its capital expenditure.
- The Reserve Bank of India (RBI) has cut its repo rate under Liquidity Adjustment Facility (LAF) by 25 basis points to 6.0% in its first bi-monthly policy statement of the current financial year FY20, with immediate effect. The move will cheer markets and investors and is the second consecutive rate cut by the RBI.
- Karnataka Bank has entered into an MoU with Bharti AXA Life Insurance Company to distribute the latter's life insurance products. The bank will be able to provide a wide choice of life insurance products to its customers across 836 branches, supported by the products of Bharti AXA Life Insurance Company.
- Government infused a capital of Rs. 205 crore into the state owned Bank of Maharashtra in lieu of preferential allotment of shares. After the Capital infusion, the shareholding of government in Bank of Maharashtra has increased to 87.74 % from 87.01%.
- The Reserve Bank of India (RBI) has given 12 years to Life Insurance Corp to reduce its stake in IDBI Bank, accepting the life insurer’s argument that it is a long-term investor in the struggling bank which had nearly 30 per cent of its advances as bad loans in the December quarter.
- State Bank of India (SBI), the country's largest lender by assets, has reduced its interest rate by 10 basis points or 0.10 per cent on home loans of up to Rs. 30 lakh, a move which is likely to provide some respite to home loan borrowers.
- New name of Catholic Syrian Bank is CSB Bank Limited.
- State-owned lender Bank of India (BoI) will sell 25.05 per cent equity stake in Star Union Dai-ichi Life Insurance for Rs 1,106 crore at Rs 170.50 floor price of each share.
- State Bank of India has acquired retail loans worth Rs 27,000 crore including Rs 10,000 crore worth of micro-finance loans from non-banking finance entities in 2018-19.
- Established in February 2009, Star Union Dai-ichi Life’s (SUD Life) premium income stood at Rs 1,211 crore, while its profit after tax stood at Rs 55 crore during April-December 2018-19.
- Bank of Baroda now the third largest bank after SBI, HDFC Bank. Dena bank and Vijaya bank were merged in Bank of Baroda on [latex]1^{st}[/latex] April 2019.
- India is the world's top recipient of remittances with USD 79 billion in 2018 as per the World Bank report. India was followed by China (USD 67 billion), Mexico (USD 36 billion), the Philippines (USD 34 billion), and Egypt (USD 29 billion).
- David Malpass, US President Donald Trump's nominee to lead the World Bank, won unanimous approval from the institution's executive board on Friday, continuing the 73-year tradition of an American running the world's largest development lender.
- The Reserve Bank of India issued new guidelines for banks to set up new currency chests, which should have a processing capacity of 6.6 lakh pieces of banknotes per day.
- DSP’s bond fund was the top performer among 17 rupee corporate note funds in the last 6 months.
- Reserve Bank of India (RBI) slashedits key interest rate by 0.25 per cent to 6 per cent in its second policy review under Governor Shaktikanta Das.
- Bharat Petroleum Corporation is planning to hive off its gas business into a separate wholly-owned subsidiary as the company intends to bring all natural gas-related businesses into one fold.
- HDFC is in advance talks to buy Apollo Munich Insurance for approx. Rs.1000 Crores.
- The lower limit of RTGS transactions is Rs.200000.
- ‘A Brief History of Time’ is a book written by Stephen Hawking.
- The overdue period of NPA is 90 days.
- NABARD was established in 1982.
- Secondary Market is also known as After Market.
- Bhakra Nangal Dam is located in Himachal Pradesh.
- Mahabaleshwara MS is the Managing Director and Chief Executive Officer of Karnataka Bank.
- CBI carried out searches in various premises of Bhushan Steel in connection with the case of alleged cheating of Rs,2348 crores.
- Axis Bank has submitted a plea with NCLT against Valecha TM Toll for defaulting on a loan of around Rs.105 crores. The company was declared NPA in Nov. 2016.
- As per an ad released by SBI, the bidding process for stake sale of Jet Airways will start from 8th April. The interested bidders will have to submit their bids by 10th April.
- Suresh Prabhu, the Civil Aviation Minister, has said that Aviation turbine fuel should be brought under GST to ensure a level playing field for the domestic industry.
- IFSC Code consists of 11 digits.
- ECB stands for External Commercial Borrowing.
- Ghoomar dance is related to Rajasthan state.
- According to the sources, with the announcement of elections, it has been decided to hold the review meeting of banks only after a new government is in place.
- Chennai-based Lakshmi Vilas Bank will merge with Indiabulls Housing Finance in a share-swap deal, reflecting the trend of consolidation in the financial services sector.
- World Bank Chief Economist for the South Asia Region said "India is exporting only 10 per cent of its GDP".
- The Punjab National Bank (PNB)'s 13 per cent stake sale in PNB Housing Finance for Rs. 1,850 crore will strengthen the bank's capital.
- HDFC Bank Ltd said it plans to raise up to Rs. 50,000 crore ($7.19 billion) by issuing debt over the next 12 months.
- The Reserve Bank of India (RBI) in consultation with the government of India has set the limits for Ways and Means Advances (WMA) for the first half of the financial year 2019-20 at Rs 75000 crore.
- Vipin Anand has taken charge as Managing Director of Life Insurance Corporation of India.
- In a bid to further improve the cash position of banks, RBI has tweaked Liquidity Coverage Ratio (LCR) norms to provide an additional 2% window to lenders. As per RBI Governor Shaktikanta Das, this move will harmonise the liquidity requirements of banks and release additional money for lending.
- The main objective of First Five Year Plans Development of Priority sector.
- The steel plants at Durgapur, Bhilai and Rourkela were established during the period of Second Five Year Plan.
- Rise in national income and per capita income gives an accurate measurement of economic development through Five Year Plans.
- Yerevan is the capital of Armenia.
- Reverse Repo Rate system replaced BPLR.
- The Headquarters of WHO is located in Switzerland (Geneva).
- Electronic Clearing Scheme operates under the aegis of RBI.
- RBI adjust the credit expansion through Repo Rate.
- BSNL employee union has opposed the government’s proposal for VRS. They have also alleged that BSNL has not been allocated 4G spectrum needed for its business growth.
- Mukesh Ambani and Sunil Mittal are reportedly considering competing for a stake in Zee Entertainment. Bharti Airtel has started the due diligence process.
- Oyo has entered into a JV with SoftBank to launch its hotel business in Japan. Oyo will have a 50% stake while SoftBank Corp and its Vision Fund will hold 25% each.
- Increasing returns to scale occurs due to Division of labour, Economies of scale and Specialization.
- The quantity theory of money implies that a given percentage change in the money supply will cause An equal percentage change in nominal GDP.
- If a large change in the price of a good causes no change in demand then the demand will said to be Perfectly inelastic.
- In 1950 'Sarvodaya Plan' was given by J.P. Narayan.
- Economic planning comes under Concurrent list.
- Shrimannarayan gave Gandhian Plan in the year 1944.
- Economic planning is a feature of Socialist economy.
- M. Visvesvarayya made first attempt to initiate economic planning in India.
- NITI Aayog has replaced Planning Commission.
- The central government has sold 4.3 crore seized shares of Wipro for Rs.1100 crores, a majority of which have been bought over by LIC. These shares belonged to Pakistani Nationals and were seized under the Enemy Property Act.
- RBI will soon prescribe timelines for resolution of various issues related to digital payments including reverse failed transactions, customer disputes, etc.
- 'Round Tripping' in case of Foreign Direct Investment relates to Coming back of domestic money as FDI.
- In Regional Rural Banks, the contribution of the sponsor Banks is 35%.
- Stagflation refers to High inflation in periods of high unemployment.
- Structure of Co-operative Banks in India is Three tier.
- Fiscal deficit in the Union Budget means Budgetary deficit + Net increase in internal and external borrowings.
- 'NIKKEI' Share Price Index of Tokyo Stock Exchange.
- Meaning of Convertibility of currency is Convertibility of gold standard currency.
- Sunrise Industries are those Industries Which have high growth potential and meet further requirement of the economy.
- The Kelkar committee recommended for the Tax reforms.
- Brookfield Asset Management is in the final stages of discussions with ICICI Bank to acquire ICICI Tower in Hyderabad for around Rs.1000-1200 Crores. Due diligence has already been completed by Brookfield.
- Chanda Kochhar has pulled out of annual session of a FICCI event as Videocon loan probe intensifies. She was to be felicitated by President Ram Nath Kovind. Income tax department has served a notice to her husband Deepak Kochhar in connection with Videocon loan case.
- Amazon may submit its offer to buy Flipkart, which is in advanced talks with Walmart Inc. for selling around 55% stake.
- Prices in a 'barter economy' are in relative quantity of goods exchanged.
- 'Hot money' or the "refugee capital" is one which is transferred from one centre to another for greater safety.
- Internal Debt comprises loans raised from the Open Market, Compensation Bonds, and Prize Bonds etc and It comprises loans raised from the treasury bills issued to the RBI, Commercial Bank etc.
- Free market means a market where price of a commodity is determined by free play of the force of demand and supply.
- Bancassurance is Insurance company using the bank sales channel in order to sell insurance products.
- Individual banks are limited in their ability to create money because Actions which create money usually result in a loss of reserves to other banks.
- “Mixed Economy” denotes Existence of both private and public sectors.
- It will be true to classify India as A food deficit economy.
- A rolling plan refer to a plan which Changes its allocations and target every year.
- Economic survey is published by Ministry of Finance.
- Softbank and Alibaba have committed to invest about Rs.2,900 crore in Paytm Mall in four tranches, one of which of Rs.357.5 Crore has already been made. Rs.2,600 crore shall be invested by SoftBank and the rest by Alibaba.
- NBFC Varthana has raised Rs.350 crore through a combination of a primary raise and secondary stake sales by investors lead by ChrysCapital.
- Law of variable proportions is concerned with Short-run production function.
- The ‘point of inflection’ come in Stage I of the law of variable proportions.
- Total product reaches at maximum when MP = 0.
- In the case of diminishing returns to scale, a given proportionate increase in all factors causes A less than proportionate increase in output.
- Equilibrium price is the price when Supply is equal to demand.
- Customs duties is not direct tax.
- National Income in India is regularly estimated by Central Statistical Organization.
- Human development report is prepared by UNDP.
- 'Gini Coefficient' measures Disparity in income distribution.
- Labour is an active factor of production.
- RBI shall launch an auction on 23rd April to buy dollars worth around 5 billion from banks to infuse liquidity into the system.
- Citibank N.A. has settled a case with Sebi for Rs.4.5 Crores regarding the bank’s alleged failure to adequately supervise an employee who carried out an unregistered portfolio investment scheme.
- By adding indirect taxes to the national income at factor cost and then subtracting subsidies from the sum, the amount equals National income at market prices.
- Concentration Ratio is a measure of Level of concentration of sellers in the market.
- Fiscal deficit equals Government expenditure minus tax and non- tax revenue receipts.
- Corporation Tax is not shared by the Centre and the states.
- 'Agenda 21' is related with Sustainable development.
- In Regional Rural Banks, the contribution of the sponsor Banks is 35%.
- In Regional Rural Banks, the contribution of the State is 15%.
- In Regional Rural Banks, the contribution of the Central is 50%.
- Alok Sama, President and CFO of SoftBank International Holdings is leaving the firm after about 5 years of joining. Alok helped SoftBank founder Masayoshi Son close some of his biggest deals.
- KKR is selling its stake in HDFC for $300 million with around 15% gain.
- SBI has proposed a new plan to revive the airline involving a total fund infusion of Rs.9,535 crore, and exit Naresh Goyal and Etihad. The plan includes an equity infusion of Rs.3,800 crore by two unidentified investors and Rs.850 crore equity infusion by state-run lenders led by SBI.
- Welspun Corp has signed an agreement with Laptev Finance to sell its plates and coils mill division for Rs.848.5 crores.