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Volume 05 Issue 11 Nov 2024 ABOUT US

The Banking Updates is a platform managed
CONTENTS by experts having Rich academic track record
Topic Page and experience in different verticals of
RBI Guidelines 02
Govt./Regulators Corner 04 banking.
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Outlook 08 world and release e-books covering various
New Appointments 08
Current Affairs (Developmental aspects) 08 aspects of banking.
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Important MCQs 13 financial awareness and also covers the
Recalled Questions 15 concept of some topics for in-depth
knowledge. The contents will be useful for
bank promotion examinations and interviews
BENCHMARK POLICY RATES
and all those dealing with financial services.
Rate Last Change Benchmark
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CRR 11.04.2020
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Total reserves US$ 684.80 bn
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Foreign Currency Assets US$ 593.75 bn
(as on 25.10.2024)
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Shri. N.S. Vishwanathan, former Deputy Governor,

RBI GUIDELINES RBI, had provided broad guiding principles through
HIGHLIGHTS OF RESOLUTION OF THE MONETARY its recommendations on these provisions.
POLICY COMMITTEE OCTOBER 7 TO 9, 2024:  Creation of Reserve Bank Climate Risk
Information System (RB-CRIS): The available
The Monetary Policy Committee (MPC) at its meeting climate related data is characterized by various gaps
on October 9, 2024 decided the following; such as fragmented and varied sources, differing
 Repo rate under the liquidity adjustment facility (LAF) formats, frequencies and units. To bridge these
kept unchanged at 6.50 per cent. gaps, the Reserve Bank proposes to create a data
 Consequently, the standing deposit facility (SDF) repository namely, the Reserve Bank – Climate Risk
rate remains unchanged at 6.25 per cent and the Information System (RB-CRIS) comprising of two
marginal standing facility (MSF) rate and the Bank parts. The first part will be a web-based directory,
Rate at 6.75 per cent. listing various data sources, (meteorological,
 The MPC also decided to change the monetary geospatial, etc.) which will be publicly accessible in
policy stance to „neutral‟ and to remain the RBI website. The second part will be a data
unambiguously focused on a durable alignment of portal comprising of datasets (processed data in
inflation with the target, while supporting growth. standardised formats). The access to this data portal
These decisions are in consonance with the objective of will be made available only to the regulated entities
achieving the medium-term target for consumer price in a phased manner.
index (CPI) inflation of 4 per cent within a band of +/- 2  UPI - Enhancement of limits: The per-transaction
per cent, while supporting growth. limit under UPI123Pay (launched in March 2022, with
a view to enable feature-phone users to use UPI)
Economic Outlook:
has been decided to enhance from Rs.5000/- to
 The global economy has remained resilient and is Rs.10000/-. Further it has been decided to increase
expected to maintain stable momentum over the rest the UPI Lite wallet limit to from Rs.2000 to ₹5,000
of the year, amidst downside risks from intensifying and per-transaction limit to from Rs.500 to ₹1,000.
geopolitical conflicts.  Introduction of beneficiary account name look-up
 In India, real GDP registered a growth of 6.7 per facility: Payment Systems like UPI and IMPS
cent in Q1:2024-25, driven by private consumption provide a facility to the remitter to verify the name of
and investment. the receiver (beneficiary) before initiating a payment
 Real GDP growth for 2024-25 is projected at 7.2 transaction. To enable remitters in RTGS and NEFT
per cent with Q2 at 7.0 per cent; Q3 at 7.4 per cent; to verify the name of the beneficiary account holder
and Q4 at 7.4 per cent. before initiating funds transfer, it is now proposed to
 Real GDP growth for Q1:2025-26 is projected at 7.3 introduce a „beneficiary account name look-up
per cent. facility‟. Remitters can input the account number and
 Headline inflation declined sharply to 3.6 and 3.7 the branch IFSC code of the beneficiary, following
per cent in July and August respectively from 5.1 per which the name of the beneficiary will be displayed.
cent in June. EXTENSION OF INTEREST EQUALIZATION
 CPI inflation for 2024-25 is projected at 4.5 per SCHEME (IES) ON PRE AND POST SHIPMENT
cent with Q2 at 4.1 per cent; Q3 at 4.8 per cent; and st
RUPEE EXPORT CREDIT UP TO 31 DEC 2024:
Q4 at 4.2 per cent. Government of India, vide Trade notice dated
 CPI inflation for Q1:2025-26 is projected at 4.3 per September 30, 2024, has allowed for an extension of
cent. the Interest Equalization Scheme for Pre and Post
STATEMENT ON DEVELOPMENT & REGULATORY Shipment Rupee Export Credit for three months up to
POLICIES: December 31, 2024, with the following modifications to
Statement sets out various developmental and the Scheme:
regulatory policy measures relating to (i) Regulations;  The aforesaid extension is applicable only for MSME
and (ii) Payment Systems announced by RBI on 9th Manufacturer exporters.
Oct 2024 are;  Fiscal benefits of each MSME, on aggregate, will be
restricted to ₹50 lakhs for the Financial Year 2024-
 Levy of Foreclosure Charges/ Pre-payment 25 till December 31, 2024.
Penalties on Loans: As per existing guidelines,
 Accordingly, MSME manufacturer exporters who
Banks and NBFCs are not permitted to levy
have already availed equalisation benefits of ₹50
foreclosure charges/ pre-payment penalties on any lakhs or more in the Financial Year 2024-25 till
floating rate term loan sanctioned to individual
September 30, 2024, will not be eligible for any
borrowers, for purposes other than business. Now, it
further benefit in the extended period.
November 5, 2024

has been decided to extend this regulation to cover

All other terms and conditions of the scheme shall
loans to Micro and Small Enterprises (MSEs)
remain unchanged.
extended by the Regulated Entities of the Reserve
Bank. RBI ISSUES DIRECTIONS REGARDING
 Discussion Paper on Capital Raising Avenues for COMPOUNDING OF CONTRAVENTIONS UNDER
Primary (Urban) Co-operative Banks such as FEMA, 1999: In exercise of the powers conferred by
issuance of special shares, issuance of shares at a section 46 read with sub-section (1) of Section 15 of
premium, etc., which are new to co-operative FEMA, 1999, the Central Government had notified the
banking sector. The Report of the Expert Committee Foreign Exchange (Compounding Proceedings) Rules,
on Primary (Urban) Co-operative Banks chaired by 2024 relating to compounding of contraventions under
FEMA, 1999.

The Banking & Financial Updates November 2024

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 In terms of Section 15 of the FEMA, 1999, any amount payable shall not be more than amount of
contravention under section 13 of FEMA 1999 may, simple interest @5% p.a. calculated on the sum
be compounded within one hundred and eighty involved in contravention and for the period of
days from the date of receipt of such application, by contravention in case of reporting contraventions and
RBI. @10% p.a. in respect of all other contraventions.
 In terms of Section 13(1) of the Act, if any person  The compounding amount as specified in the
contravenes any provision of FEMA, 1999, or any compounding order shall be paid by way of demand
rule, regulation, shall be liable to a penalty up to draft in favour of the “Reserve Bank of India” or
thrice the sum involved in such contravention NEFT/RTGS or such other permissible electronic or
where the amount is quantifiable, or up to Rupees online modes of payment within 15 days from the
Two lakhs where the amount is not directly date of the order of compounding of such
quantifiable, and where the contravention is a contravention.
continuing one, further penalty which may extend to DUE DILIGENCE IN RELATION TO NON-RESIDENT
Rupees Five thousand for every day after the first GUARANTEES AVAILED BY PERSONS RESIDENT
day during which the contravention continues. IN INDIA: RBI has come across instances of
 Accordingly, the facility of compounding of guarantees (including SBLCs) issued by persons
contraventions as specified in Section 15(1) of resident outside India, favoring persons resident in
FEMA, 1999, has been provided to persons involved India, which are not permitted under the extant FEMA
in foreign exchange transactions to reduce regulations. Accordingly, AD Category-I Banks have
compliance burden as well as costs wherever been advised to ensure that guarantee contracts
violation of the Act or the Rules and Regulations advised by them to, or on behalf of, their resident
issued under the Act are involved. However, constituents are in accordance with the FEMA
compounding of contraventions of cases falling regulations.
under Rule 4(2) and Rule 9 of the Compounding PROVISIONS OF THE CREDIT INFORMATION
Rules, 2024 shall not be compounded. REPORTING MECHANISM SUBSEQUENT TO
 Compounding applications shall be submitted by the CANCELLATION OF LICENCE OR CERTIFICATE OF
applicants to the respective Regional Offices under REGISTRATION: The Credit Information Companies
whose jurisdiction they fall or to FED, CO Cell, New (Regulation) Act, 2005 (CICRA) stipulates that only
Delhi, as applicable. Credit Institutions (CIs) can furnish credit information to
 An applicant may submit a compounding application, Credit Information Companies (CICs). CICs can collect
along with the relevant documents, physically or credit information from its member CIs or member CICs
through PRAVAAH Portal of the Reserve Bank, only. In view of the provisions of CICRA, entities whose
either suo moto or based on a Memorandum of licence or Certificate of Registration (CoR) has been
Contraventions issued by the Reserve Bank. cancelled by the Reserve Bank of India, can no longer
 All compounding applications shall be submitted be deemed as CIs under CICRA and their credit
along with the prescribed fee of ₹10,000/- (plus information cannot be accepted by the CICs. In such
applicable GST, which at present is 18%). cases, repayment history of borrowers of these entities
 In respect of a contravention committed by any is not updated even if these borrowers continue to
person (applicant) within a period of three years repay/ clear their dues. In order to redress the hardship
from the date on which a similar contravention was faced by such borrowers, RBI directed CICs and CIs to
committed and the same was compounded, such implement a credit information reporting mechanism
contraventions shall not be compounded, and the subsequent to the cancellation of the licence/CoR of
relevant provisions of the Act shall apply. Any banks/ NBFCs as under;
contravention committed after the expiry of a period
 All CIs, whose licence or CoR has been cancelled by
of three years from the date on which a similar
the Reserve Bank of India shall be categorised as
contravention was previously compounded shall be
"Credit Institutions" under Section 2(f)(vii) of CICRA.
deemed to be a first contravention.
 These CIs shall continue to report credit information
 Contraventions of serious nature viz. transactions
of the borrowers on-boarded and reported to CICs
suspected of money laundering, terror financing or
prior to cancellation of their licence or CoR to all the
affecting sovereignty and integrity of the nation or
four CICs till the loan lifecycle is completed or the
where the contravener fails to pay the sum for which
credit institution is wound up, whichever is earlier.
contravention was compounded within the specified
 These CIs shall have access to Credit Information
period in terms of the compounding order, shall be
Reports pertaining to only those borrowers which
referred to the Directorate of Enforcement (DOE) for
were onboarded and reported to CICs before the
further investigation and necessary action under the
cancellation of their licence/CoR.
Act.
 CICs shall not charge the annual and membership
November 5, 2024

 The Compounding Authority shall pass a

fees from these CIs.
compounding order after affording an opportunity of
being heard to the applicant as expeditiously as  CICs shall tag these CIs as "Licence Cancelled
possible as and not later than 180 days from the Entities" in the CIR.
date of receipt of such compounding application by SUBMISSION OF INFORMATION TO CREDIT
Reserve Bank and complete in all respects. INFORMATION COMPANIES (CICs) BY ARCs: As
 The compounding amount payable shall not exceed per the existing guidelines, ARCs had been advised to
300% of the sum involved in contravention. become a member of at least one CIC. In order to align
 In case the sum involved in contravention is less these guidelines with the guidelines applicable to banks
than Rupees one lakh, the total compounding and NBFCs, now the ARCs shall become members of

The Banking & Financial Updates November 2024

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all CICs and submit the requisite data to CICs. ARCs rupee loans of SCBs stood at 9.37 per cent in
shall keep the information collected/ maintained by September 2024 against 9.41 per cent in August
them, updated regularly on a fortnightly basis or at 2024.
such shorter intervals as mutually agreed upon  The WALR on outstanding rupee loans of SCBs was
between the ARC and the CIC. ARCs shall rectify the placed at 9.90 per cent in September 2024 (9.91 per
rejected data received from CICs and upload the same cent in August 2024).
with the CICs within seven days of receipt of such data.  1-Year median MCLR of SCBs remained unchanged
ARCs have been advised to put in place system and at 8.95 per cent in October 2024.
processes to ensure compliance with these guidelines  The weighted average domestic term deposit rate
latest by January 1, 2025. (WADTDR) on fresh rupee term deposits of SCBs
STANDARDS ISSUED BY THE BUREAU OF INDIAN stood at 6.54 per cent in September 2024 as
STANDARDS ON NOTE SORTING MACHINES: With compared to 6.46 per cent in August 2024.
a view to further strengthen the banknote sorting  The weighted average domestic term deposit rate
architecture across the country, the Bureau of Indian (WADTDR) on outstanding rupee term deposits of
Standards (BIS) after due consultation with Reserve SCBs was placed at 6.95 per cent in September
Bank of India and other stakeholders, had published the 2024 (6.93 per cent in August 2024).
standards for Note Sorting Machines (NSM) – „IS RATE OF INTEREST ON GOVERNMENT OF INDIA
18663: 2024‟. The important points of the standards are FLOATING RATE BOND 2034: The rate of interest on
as follows; Government of India Floating Rate Bond 2034 (GOI
 The machines shall conform to IS/IEC 62368-1 FRB 2034) applicable for the half year October 30,
Audio/video, information & communication 2024 to April 29, 2025 shall be 7.53 per cent per
technology equipment. annum. FRB 2034 carries a coupon, which has a base
 Every note sorting machine shall be legibly and rate equivalent to the average of the Weighted Average
indelibly marked with at least the following Yield (WAY) of last three auctions (from the rate fixing
information: Manufacturer‟s name or trade mark (if day i.e., October 30, 2024) of 182 Day T-Bills, plus a
any), Model designation and serial number, Country fixed spread (0.98 per cent).
of manufacture, Input supply voltage and frequency RBI ENTERS INTO CURRENCY SWAP AGREEMENT
and Power consumption. WITH MALDIVES MONETARY AUTHORITY: RBI has
 The machine may be marked with the BIS Standard entered into a Currency Swap Agreement with the
Mark. Maldives Monetary Authority (MMA) under the SAARC
HIGHLIGHTS OF SECTORAL DEPLOYMENT OF Currency Swap Framework 2024-27, on October 07,
BANK CREDIT (SEPTEMBER 2024): The highlights of 2024. Under the agreement, the MMA is eligible for
RBI release on Sectoral deployment of bank credit for financing support from the RBI amounting to USD 400
the month of September 2024 collected from 41 select million under the US Dollar/ Euro Swap Window and
scheduled commercial banks, accounting for about 95 INR 30 billion under the INR Swap Window. The
per cent of the total non-food credit deployed by all agreement would be valid till June 18, 2027. The
scheduled commercial banks, are as follows; SAARC Currency Swap Framework came into
operation on November 15, 2012, to provide a backstop
 On a year-on-year (YoY) basis, non-food bank
line of funding for short term foreign exchange liquidity
credit in September 2024 grew at 14.4 per cent, as
requirements or short-term balance of payments stress
compared to 15.3 per cent a year ago.
till longer term arrangements are made.
 Credit to agriculture and allied activities continued
to be robust with the growth of 16.4 per cent YoY in
September 2024, compared with 16.7 per cent in
GOVT. / REGULATORS CORNER
September 2023. NABARD NOTIFIES FOR SPECIAL REFINANCE
 Credit growth to industry improved to 9.1 per cent FACILITY FOR TRANSFORMATION OF PACS AS
YoY in Sep 2024 compared with 6.0 per cent a year MULTI-SERVIC CENTRE (MSC) FOR
ago. IMPLEMENTATION OF PROJECTS UNDER
 Credit growth to services sector decelerated to 15.2 WORLD'S LARGEST GRAIN STORAGE PLAN
per cent YoY in September 2024 from 21.6 per cent (WLGSP) IN COOPERATIVE SECTOR: To support the
a year ago, primarily due to lower growth in credit to Primary Agriculture Cooperative Societies (PACS) for
NBFCs. implementation of projects under World's Largest Grain
 Personal loans growth moderated to 16.4 per Storage Plan in Cooperative Sector (WLGSP),
cent YoY in September 2024 as compared with 18.2 NABARD is providing the Special Refinance Facility
per cent a year ago, largely due to decline in growth under PACS as MSC scheme to State Co-operative
in „other personal loans‟, „vehicle loans‟ and „credit Banks (StcBs) under Automatic Refinance Facility
November 5, 2024

card outstanding‟. However, „housing‟ the largest mode. Vide circular dated 23 October 2024; NABARD
constituent of this segment, recorded accelerated has extended relaxation with respect to minimum
growth. CRAR, Net NPA and Net profit criteria for StCBs and
LENDING AND DEPOSIT RATES OF SCHEDULED DCCBs for implementing the World's largest Food
COMMERCIAL BANKS (OCTOBER 2024): The Grain Storage Project.
highlights of lending and deposit rates of scheduled  Under the facility, refinance will be extended to those
commercial banks excluding RRBs and small finance StcBs with NABARD internal risk rating of NBDl to
banks are as hereunder; NBD7.
 The weighted average lending rate (WALR) on fresh  Further, refinance will be provided to STCBs/DCCBs
with NABARD internal risk rating of NBD8 and NBD9

The Banking & Financial Updates November 2024

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and/or with negative net worth, against pledge of anti-profiteering. The notification by the GST policy
Fixed Deposit Receipts as collateral with lien clearly wing would mean that from April 1, 2025, consumers
marked in favour of NABARD to the tune of 105% of would not be able to file complaints regarding
the amount proposed to be disbursed. profiteering by companies not passing commensurate
 The Interest rate on this Special Refinance Facility to GST rate cut benefits to end customers. However,
StcBs will be at @3% per annum and the ultimate complaints filed before April 1, 2025, would be dealt by
interest rate to be charged from PACS should not be the Principal bench of GSTAT until a final conclusion is
more than 1% over and above the interest rate reached.
charged by NABARD. CABINET RATIONALIZES ALL FARM SECTOR
 5. The refinance shall be repaid within a maximum SCHEMES UNDER 2 UMBRELLA SCHEMES WITH
period of 7 years including a grace period of 6-24 RS 1.01 LAKH CR INVESTMENT: The Union Cabinet
months, depending on income generation and type on October 3 approved a proposal to rationalize all
of infrastructure proposed by PACS. The actual Centrally Sponsored Schemes (CSS) operating under
repayment period to be fixed will be based on the Ministry of Agriculture and Farmer‟s into two-umbrella
projected cash flows, economic life of asset and schemes, with total investment of Rs 1,01,321 crore,
average DSCR of 1.50. aimed to increase farmers‟ income and food security.
GOVT NAMES 3 NEW EXTERNAL MEMBERS TO The two schemes are PM Rashtriya Krishi Vikas
MPC, RECONSTITUTES PANEL: The Union Yojana (PM-RKVY) that will promote sustainable
government on October 1 named three new external agriculture and Krishonnati Yojana (KY), which will
members to the Monetary Policy Committee (MPC). achieve food security for self-sufficiency. Under PM-
The three new external members were Ram Singh, RKVY, states have been given flexibility to reallocate
Director, Delhi School of Economics, Saugata funds from one component to another based on their
Bhattacharya, an economist and Senior Vice President specific requirement. The Central share in the Rs
at Axis Bank, and Nagesh Kumar, Director and CEO, 101,321 crore allocation is Rs 69,088.98 crore while
Institute for Studies in Industrial Development. Other the state share is Rs 32,232.63 crore.
members of the panel include RBI governor SEBI REDUCES TRADING LOT SIZE OF PRIVATELY
Shaktikanta Das as the Chairperson, along with Deputy PLACED InvITs TO RS 25 LAKH: SEBI has drastically
Governor in charge of Monetary Policy, and one officer reduced the trading lot size of privately placed
of the RBI to be nominated by the Central Board, as infrastructure investment trusts (InvITs) to Rs 25 lakh in
other two members. a bid to boost investors' participation and increase
SEBI TIGHTENS F&O RULES EFFECTIVE NOV 20, liquidity of such investment vehicles. The current
ANNOUNCES SLEW OF MEASURES; DAILY trading lot for secondary market trading for privately
EXPIRIES TO GO, CONTRACT SIZES TO TRIPLE: placed InvITs is set at Rs 1 crore. Further, if the InvIT
SEBI has announced a slew of measures to strengthen invests at least 80 per cent of its asset value in
index derivative framework to protect investors and completed and revenue-generating assets, then the
improve market stability. Each exchange will be allowed trading lot is Rs 2 crore. “Trading lot for the purpose of
to provide derivatives contracts for only one of its trading of units on the designated stock exchange shall
benchmark index with weekly expiry. SEBI has also be Rs 25 lakh," Sebi said in its notification dated
increased the minimum trading amount for September 26.
derivatives from the present Rs 5-10 lakhs to Rs 15 REGISTRATION CERTIFICATE NOT MANDATORY
lakh when it is introduced in the market, which will then FOR EXPORTERS SEEKING BENEFITS: The
be increased fall between Rs 15 lakh and Rs 20 lakh. commerce ministry's arm DGFT has clarified that
The lot size shall be fixed in such a manner that the registration-cum-membership certificate is not
contract value of the derivative on the day of review is mandatory for exporters to seek benefits under
within Rs. 15 lakhs to Rs. 20 lakhs. The new norms for schemes like duty drawback and remission of state
derivative trading will be rolled out in phases, starting levies. According to the Foreign Trade Policy, a
November 20. From February 1, 2025, there will upfront Registration-cum-Membership Certificate (RCMC) is
collection of option premium from buyers and removal required for exporters in order to avail benefits under
of calendar spread treatment on the expiry day. From the policy.
April 1, 2025, there will be intraday monitoring of NITI AAYOG RAISES ASSET MONETISATION
position limits. TARGET FOR FY25 TO RS 1.9 TRN: The NITI Aayog
GOVT NOTIFIES APR 1, 2025, AS SUNSET DATE has increased the asset monetisation target for FY
FOR GST ANTI-PROFITEERING: The government has 2024-25 by Rs 23,000 crore to Rs 1.9 trillion, moving
notified April 1, 2025, as the sunset date for the anti- closer to the overall Rs 6 trillion target set under the
profiteering clause in the GST law. Also, from October 1 National Monetisation Pipeline (NMP) for a four-year
all pending complaints under the anti-profiteering period. The NMP, unveiled by Finance Minister Nirmala
November 5, 2024

provisions will be handled by the Principal bench of the Sitharaman in August 2021, has achieved Rs 3.9 trillion
GST Appellate Tribunal (GSTAT), instead of the in the first three years, ending in 2023-24, against a
Competition Commission of India (CCI). The GST target of Rs 4.3 trillion. However, even with the revised
Council, in its 53rd meeting on June 22, had target of Rs 1.9 trillion for the final year of FY25, the
recommended to amend Section 171 and Section 109 government will miss the Rs 6 trillion asset
of CGST Act, 2017 to provide a sunset clause for anti- monetisation target by roughly Rs 20,000 crore.
profiteering under GST and to provide for the handling SEBI EXTENDS SECURITIES-TRANSFER TIMELINE
of anti-profiteering cases by Principal bench of GSTAT. UNDER T+1 TO ENABLE DIRECT PAYOUT: The
Council has also recommended the sunset date of April market regulator has made one more change to the
1, 2025, for receipt of any new application regarding

The Banking & Financial Updates November 2024

 6

Direct Payout system to ensure that securities under ₹1 lakh crore. At least 50 percent of the total CGM s
the T+1 settlement system are deposited into the should be placed at corporate offices for Category A
clients' account on T+1 day. T is the day the trade is banks, the new guidelines stipulated. The ratio of
taken and T+1 is the next day when the money or CGM:GM would be 1:4 for all category of
securities comes into the client's account. Under the nationalised banks and the ratio of GM:DGM:AGM
Direct Payout system, the clearing corporations (CCs) shall be 1:3:9 for all category of nationalised banks.
directly transfers the securities to the investors' LOAN LIMIT UNDER PRADHAN MANTRI MUDRA
account; this new system is yet to roll out. The regulator YOJANA (PMMY) INCREASED TO RS.20 LAKH
has extended the time given to the CCs to transfer FROM THE CURRENT RS.10 LAKH: As announced in
securities to investors' account from 1.30 pm to 3.30 the Union Budget 2024-25, the limit of Mudra loans
pm. With this, the securities will be credited to the under the Pradhan Mantri Mudra Yojana (PMMY) has
investors' demat account on the same trading day been enhanced from current Rs. 10 lakh to Rs. 20 lakh.
instead of one working day from the receipt of pay-out As per the notification issued in this regard, the new
from the exchange. That is, the securities will be category of Tarun Plus is for Loans above Rs. 10
credited to the client's account on the very day that the lakh and upto Rs. 20 lakh and would be available to
exchange makes the pay out (T+1) and not on T+2, the entrepreneurs who have availed and successfully
which has been happening under the current system repaid previous loans under the Tarun category. The
with a few brokers since they have been given an guarantee coverage of PMMY loans upto Rs. 20 lakh
additional grace period of 24 hours from T+1 to do the will be provided under the Credit Guarantee Fund for
payment. Micro Units (CGFMU). Further, Overdraft loan amount
SEBI RAISES INDEX F&O POSITION LIMITS FOR of Rs.10,000/- sanctioned under PMJDY accounts shall
TRADING MEMBERS BY 15X TO RS 7,500 CRORE: also be eligible to be covered under Credit guarantee
The market regulator has raised the position limits for Fund.
trading members (TMs), cumulatively for client and
proprietary trades, in index futures and options BUSINESS / FINANCE &
contracts to Rs 7,500 crore or 15 percent of the total
open interest (OI) in the market, whichever is higher.
ECONOMY
Position limits are calculated on the notional value of a INDIA's MANUFACTURING PMI COOLS TO 8-
contract. Earlier, it was Rs 500 crore or 15 percent of MONTH LOW IN SEPT AS OUTPUT SLOWS: Growth
the total OI in the market. in India's manufacturing sector slowed to an eight-
CENTRE RELEASES FRESH INSTRUCTIONS TO month low in September as factory production and
RESOLVE CONCERNS OF PENSIONERS: The sales eased slightly. The HSBC final India
Central government has released instructions for all Manufacturing Purchasing Managers' Index,
relevant departments in addressing concerns raised by compiled by S&P Global, fell to 56.5 from 57.5 in
pensioners, mandating that all complaints be resolved August. A figure above 50 in the index denotes
within a span of 21 days. Currently, complaints are expansion in activity and below that signifies
submitted through a unified online platform known as contraction. Factory production and sales in September
the Centralised Pension Grievances Redress and expanded at the slowest pace since January but net
Monitoring System (CPENGRAMS), regardless of the employment and quantity of purchases rose during the
department to which they are directed. In the cases, month and business confidence was broadly aligned
where redressal of the grievances requires longer time, with its long-run average. On the price front, there were
an interim reply may be furnished on the portal. moderate increases in input costs and selling charges.
FINANCE MINISTRY APPROVES RAISING OF IN A FIRST, AN INDIAN AGENCY GIVES OUT
POSTS OF CGMs IN PUBLIC SECTOR BANKS: SOVEREIGN RATINGS: Global credit rating agencies
Finance Ministry has approved the creation of Chief assess the creditworthiness of governments,
General Manager post (CGM), below board level, in five corporations and other entities, providing ratings that
more nationalized banks including Bank of influence investment decisions and borrowing costs
Maharashtra, Central Bank of India, UCO Bank, Indian worldwide. Taking on foreign counterparts like
Overseas Bank and Punjab & Sind Bank who can now Moody‟s, Fitch and S&P Global, India-based CareEdge
elevate their General Managers (GM) to CGMs. Prior to Global IFSC Ltd, a subsidiary of CARE Ratings Ltd will
this; CGM posts were available in six out of 11 now issue sovereign ratings of global economies. The
nationalized banks. "While creating the said post, the rating agency has assigned sovereign ratings to 39
Finance Minister has also approved the increase in the countries including India.
existing number of CGMs in the banks that already FOREX RESERVES TOP $700 BN, INDIA BECOMES
have CGM-level posts. Now Nationalised banks have 4TH COUNTRY TO CROSS THIS MARK: India's
been placed under two categories based on the
November 5, 2024

foreign exchange reserves crossed $700 billion for the

business mix as on March 31,2023. Category A: first time on record, on valuation gains and the central
Business Mix of less than ₹10 lakh crore and bank's dollar purchases. The forex reserves were at
Category B: Business Mix of ₹10 lakh crore and $704.89 billion, having risen by $12.6 billion in the week
above. There would be 4 CGMs in Nationalised Banks through Sept. 27 in their biggest weekly increase since
with a business mix of up to ₹4 lakh crore and 8 CGMs mid-July 2023. India is only the fourth economy in
in Nationalised Banks having a business mix between the world to cross $700 billion in reserves after
₹4 to ₹10 lakh crore. For those Nationalised Banks China, Japan, and Switzerland.
having a business mix of ₹10 lakh crore and above,
there shall be a minimum Ten 10 CGMs and 1
additional CGM for every increase in business mix up to

The Banking & Financial Updates November 2024

 7

IFC PARTNERS WITH AXIS BANK TO PROVIDE broken period interest.

$500 MILLION CLIMATE LOAN IN INDIA: The INDIA AND SOUTH KOREA SET TO JOIN FTSE
International Finance Corporation (IFC), has partnered RUSSELL EMGB INDEX IN 2025: Global index
with Axis Bank, to provide a $500 million loan to provider FTSE Russell has announced that India‟s
help develop a blue finance market and scale up sovereign bonds will be included in its Emerging
financing of green projects in India. This is IFC‟s first Markets Government Bond Index (EMGBI) starting
blue investment in India and the first blue transaction by September 2025, following similar inclusions by JP
a financial institution in the country. Blue loans are Morgan and Bloomberg Index Services. Additionally,
financing instruments that raise and earmark funds for South Korean government bonds are set to be added to
investments such as water and wastewater the FTSE World Government Bond Index (WGBI) in
management, reduction of marine plastic pollution etc. November 2025.
OLA ELECTRIC SLAPPED WITH SHOW CAUSE
NOTICE OVER CONSUMER COMPLAINTS AND PARTNERSHIP/NEW PRODUCTS
SERVICE DEFICIENCIES: The central government has
issued a show cause notice to Ola Electric for multiple  Reliance Group partners with Bhutan govt to
consumer complaints. These complaints involve service develop solar, hydropower projects making this the
delays, misleading ads, and unfair practices. The largest foreign direct investment by a private
Central Consumer Protection Authority (CCPA) issued company in the renewable energy sector in the
a showcause notice to Ola Electric on October 3, citing Himalayan country.
potential violations of the Consumer Protection Act,  BoB to sell Oman operation to Bank Dhofar as part
2019. The show cause notice points to allegations such of rationalization.
as manufacturing defects, sales of second-hand  Google Pay partners with Muthoot Finance to sell
vehicles, incomplete refunds on cancellations, recurring gold-backed loans.
issues post-servicing, overcharging, inaccurate billing,  Sebi gives in-principle nod for Jio Financial-
and multiple battery and component problems. BlackRock's proposed mutual fund.
Moreover, complaints also include accusations of  Bank of Baroda ropes in Sachin Tendulkar as
unprofessional behavior and improper complaint global brand ambassador.
resolutions.  Bharti Airtel has collaborated with Nokia on “Green
INDIA REDUCES ARBITRATION TIME FOR 5G”; an initiative aimed at introducing energy-
FOREIGN INVESTORS IN UAE AGREEMENT: India efficient solutions and practices to Airtel‟s mobile
has reduced the time period for foreign investors to network.
seek international arbitration from five years to three  ICICI Bank and PhonePe have entered a
years as part of the recently signed investment pact partnership to offer a credit line on UPI to customers
with the United Arab Emirates (UAE), a departure from of the Bengaluru-based fintech major.
its model Bilateral Investment Treaty (BIT). Under the  Jio Payments Bank gets mutual funds distribution
Investor-State Dispute Settlement (ISDS) mechanism, if licence from Amfi.
the Indian judicial system is unable to resolve a dispute  Motilal Oswal launches Digital India Fund focused on
within this shortened period, investors can resort to tech and digital ecosystem growth.
international arbitration. The investment pact, signed on  LIC has reduced the entry age on its new
February 13 in Abu Dhabi, came into force on August endowment plan to 50 years from 55 years as per
31, replacing the previous pact. India‟s new deal sources. The revision is effective from October 1,
includes shares and bonds as protected investments, 2024.
unlike the model BIT, which gives protection to foreign  The Ministry of Skill Development &
direct investment (FDI) and excludes portfolio Entrepreneurship has entered into a partnership
investments such as stocks and bonds. with Meta to launch an AI Assistant for the Skill India
PhonePe LAUNCHES FIRECRACKER INSURANCE Mission and establish five centres of excellence in
POLICY FOR DIWALI: PhonePe has tied up with Bajaj virtual reality and mixed reality.
Allianz General Insurance to offer affordable insurance  CCI approves Central Bank of India‟s stake buy in
coverage against firecracker-related accidents during Future Generali India Insurance and Future Generali
Diwali for a limited period. The insurance cover entails India Life Insurance.
a sum insured of Rs 25,000 for a premium of Rs 9,  IndiGo Ventures gets SEBI nod to launch Venture
inclusive of GST. The coverage is for 10 days starting Capital Fund.
from October 25, 2024, to November 3, 2024. The plan  NPCI has partnered with The Times of India for a
includes hospitalisation cover, day care treatment, and nationwide campaign focused on digital payment
accidental death, limited only to the policyholder. safety. At the heart of the campaign is R.K.
BANKS CAN CLAIM DEDUCTIONS FOR BROKEN Laxman's iconic cartoon character Common Man,
November 5, 2024

PERIOD INTEREST ON SECURITIES TRADED AS who will play a key role in spreading awareness
STOCK-IN-TRADE: SC: The Supreme Court has about digital payment frauds.
clarified that banks are allowed to claim deductions for  Government and Meta join forces for "Scam se
broken period interest paid on securities traded as Bacho" Campaign to tackle rising online scams.
stock-in-trade. It rejected the income tax department‟s  Kotak Bank to acquire ₹4,100-crore StanChart India
stand that broken period interest on security held till personal loan book.
maturity constitutes an investment and, therefore,  IndusInd Bank collaborates with Trustmore to offer
should be treated as capital expenditure and not stock digital escrow services.
in trade, thus deduction would not be available for the  IBBI, IBA to launch centralised platform for asset

The Banking & Financial Updates November 2024

 8

liquidation auctions.
 IndusInd Bank has partnered with Tata Power
NEW APPOINTMENTS
Renewable Energy Limited (TPREL) to provide
 Bandhan Financial Services appoints Chandra
collateral-free solar financing solutions for Micro and
Shekhar Ghosh as chairman cum executive director.
Small Enterprises (MSEs) in India.
 RBI appoints Shri Aviral Jain as new Executive
 Jio Financial Services Launches SmartGold for
Director.
Convenient Digital Gold Investments.
 RBI approves appointment of Mr. Partha Pratim
 LIC has significantly boosted its stake in Bank of Sengupta as MD and CEO of Bandhan Bank.
Maharashtra from 4.05% to 7.10%.
 The Trustees of various Trusts that comprise the
 Department of Posts and Amazon signs MoU to
Tata Trusts unanimously decided to appoint Noel
enhance delivery services. Naval Tata as the Chairman of Tata Trust.
 Federal Bank has signed an MoU with Bhashini, an
 RBI approves Pranav Chawda as CEO of
AI-powered language translation platform, to
JPMorgan‟s banking unit.
integrate vernacular language support into its AI
 FSIB recommends Ashok Chandra as MD and
chatbot, Feddy.
CEO of Punjab National Bank.
 NPCI chief operating officer Praveena Rai has quit
OUTLOOK the body and joined as the managing director and
chief executive of MCX.
 Retail inflation for industrial workers inched up
marginally to 2.44 per cent in August against 2.15  Vipin Kumar, a 1996-batch IAS officer from the
per cent in July this year. Bihar cadre, has officially taken charge as the
Chairman of the Airports Authority of India (AAI).
 Retail inflation rises to nine-month high of 5.5% in
September owing to higher food inflation which rose  Bharti Airtel has appointed Shashwat Sharma as
to 9.24 percent in September compared with 5.66 the new MD & CEO, effective January 1, 2026.
percent in the previous month.  Appointments Committee of the Cabinet (ACC) has
 The annual rate of inflation based on all India appointed Deepak Agarwal, as the new Managing
Wholesale Price Index (WPI) number stood at 1.84% Director of the National Agriculture Cooperative
(Provisional) for the month of September, 2024 (over Marketing Federation of India Ltd (NAFED).
Sep, 2023).  Justice Sanjiv Khanna has been appointed as the
 India‟s services sector remained robust but dropped 51st Chief Justice of India (CJI).
to a 10-month low as the HSBC India Services  Abhyuday Jindal named as the new President of
Business Activity Index, or services PMI stood at Indian Chamber of Commerce.
57.7 in September on slowed demand, data released  Government has appointed L Satya Srinivas,
by S&P Global showed. currently serving as Additional Secretary in the
 FPIs' holdings in Indian securities surpass $1 trillion Department of Commerce, as the additional CEO of
for the first time. the Government e Marketplace (GeM).
 An unfavourable base effect and a slowdown in
economic activities led to an YoY contraction in the CURRENT AFFAIRS-
Index of Industrial Production (IIP) in August for the DEVELOPMENTAL ASPECTS
first time in 22 months, according to data released by
the National Statistical Office (NSO), during April– GOVT OKAYS NATIONAL MISSION ON EDIBLE
August 2024, the IIP registered growth of 4.2 per OILS-OILSEEDS WITH RS 10K CR OUTLAY: Govt. of
cent, compared to 6.2 per cent in the corresponding India has approved National Mission on Edible Oils-
period of the previous year. Oilseeds (NMEO-Oilseeds) for 2024-25 to 2030-31
 Almost 129 million Indians are living in extreme with an outlay of Rs 10,103 crore to make India self-
poverty in 2024, on less than $2.15 (about Rs 181) a sufficient in cooking oils with an aim to make India self-
day, down from 431 million in 1990, the World Bank reliant in oilseed production in next 7 years for 2024-25
said in report. to 2030-31. India imports more than 50 per cent of its
 IMF has kept India‟s GDP growth forecast for FY 25 annual edible oil requirement. The mission aims to
unchanged at 7 percent, its new World Economic increase primary oilseed production from 39 million
Outlook. The multilateral development bank tonnes in 2022-23 to 69.7 million tonnes by 2030-31. It
projected the economy to grow 6.5 percent in FY26. seeks to extend oilseed cultivation by an additional 40
 HSBC flash India composite PMI rises to 58.6 in lakh hectares. India imports palm oil from Indonesia
Oct. and Malaysia while soyabean oil is imported from Brazil
 The Centre‟s fiscal deficit continued to undershoot and Argentina. Sunflower comes mainly from Russia
budget estimate, having come in at 29% of the and Ukraine.
November 5, 2024

annual target in the first half of the current financial PM LAUNCHES VARIOUS INITIATIVES RELATED
year. TO THE AGRICULTURAL AND ANIMAL
 Growth in the output of eight key infrastructure HUSBANDRY SECTOR WORTH AROUND RS 23,300
industries; known as the core sector, recovered to 2 CRORE IN WASHIM, MAHARASHTRA: The Prime
per cent Y-o-Y in September, from the contraction Minister, Shri Narendra Modi launched various
recorded in the preceding month. initiatives related to the agricultural and animal
 India's gold imports jump 21.78% to $27 bn in Apr- husbandry sector worth around Rs 23,300 crore in
Sep due to strong demand. Washim, Maharashtra on 5th October 2024. The
highlights are as under;
 Disburses 18th installment of the PM-KISAN

The Banking & Financial Updates November 2024

 9

Samman Nidhi worth about Rs 20,400 crore to cap of 3 per cent. Additionally, they will benefit from
around 9.4 crore farmers. electricity tariff subsidies with a maximum annual limit
 Dedicates to nation more than 7,500 projects under of Rs 15 crores for group captive renewable energy
the Agriculture Infrastructure Fund worth over Rs sources.
1,920 crore. MSP FOR WINTER CROPS HIKED BY 2.4-7 PER
 Dedicates to nation 9,200 FPOs with a combined CENT: The government announced annual hikes in the
turnover of around Rs 1,300 crore. range of 2.4 -7% in the minimum support prices (MSP)
 Export duty reduced from 40% to 20% so that onion for the winter-sown crops for the marketing season
producing farmers of Maharashtra can get better 2025-26 (April-June). The MSP of wheat, the key rabi
prices. crop, has been raised by 6.6% to Rs 2,425/quintal for
 Government gives farmers a subsidy of Rs 2100 on 2025-26 season, while in the previous year the
a 35 kg bag of urea and Rs1083 on a 50 kg pack of remunerative price were hiked by 7.05%, the steepest
DAP. rate ever, to Rs 2,275/quintal.
CABINET APPROVES INDIA TO JOIN GOVERNMENT LAUNCHES SECOND PHASE OF
INTERNATIONAL ENERGY EFFICIENCY HUB: The “BHARAT DAL” TO CURB PRICES: To curb rise in
Union Cabinet has approved the signing of the 'Letter of prices of pulses, the department of consumer affairs
Intent,' enabling India to join the 'Energy Efficiency announced the expansion of its subsidised pulses
Hub.' India will join the International Energy Efficiency programme, introducing chana whole and masur dal
Hub (Hub), a global platform dedicated to fostering under the „Bharat‟ brand. The „chana whole‟ will now be
collaboration and promoting energy efficiency sold at Rs 58/kg, chana split Rs 70/kg and masur dal at
worldwide. Established in 2020 as the successor to the Rs 89/kg, available through cooperatives such as the
International Partnership for Energy Efficiency National Cooperative Consumers‟ Federation (NCCF),
Cooperation (IPEEC), in which India was a member, National Agricultural Cooperative Marketing Federation
the Hub brings together governments, international (NAFED), and Kendriya Bhandar and other channels.
organisations, and private sector entities to share These prices are atleast 20% to 25% less than market
knowledge, best practices, and innovative solutions. By prices.
joining the Hub, India will gain access to a vast network GOI EXTENDS AYUSHMAN BHARAT SCHEME FOR
of experts and resources, enabling it to enhance its PEOPLE ABOVE 70 YEARS; WEST BENGAL AND
domestic energy efficiency initiatives. As of July, 2024, DELHI EXCLUDED: As a major addition to the flagship
sixteen countries (Argentina, Australia, Brazil, Canada, scheme Ayushman Bharat Pradhan Mantri Jan Arogya
China, Denmark, the European Commission, France, Yojana (PM-JAY), Prime Minister Narendra Modi
Germany, Japan, Korea, Luxembourg, Russia, Saudi extended government's flagship health insurance
Arabia, the United States, and the United Kingdom) scheme Ayushman Bharat to all senior citizens aged 70
have joined the Hub. years and above. An elderly person wanting to avail
GOVT LAUNCHES TEXTILE POLICY 2024 TO the benefits of the scheme must hold an "Ayushman
BOOST GROWTH; ANNOUNCES INCENTIVES: GoI Vay Vandana Card". Elderly in Delhi and Bengal won't
has launched its Textile Policy for 2024. The policy be able to benefit from Ayushman Bharat as their
highlights two main areas: technical textiles, including governments are not implementing it. This will help
clothing and apparel, and various manufacturing provide health coverage to all senior citizens regardless
processes like weaving and dyeing. The policy provides of their income. This national health scheme aims to
various financial support mechanisms for businesses, provide comprehensive coverage of up to Rs 5 lakh
including capital subsidies ranging from 10 per cent for hospitalisation expenses.
to 35 per cent of eligible fixed capital investments,
capped at Rs 100 crores based on taluka and activity. CURRENT AFFAIRS & FINANCIAL
It offers credit-linked interest subsidies of 5 per cent AWARENESS IN SHORT:
to 7 per cent for 5 to 8 years, with an annual cap of
 UPI daily transactions crossed 501 million in
2 per cent to 3 per cent. Companies can receive Rs 1
September, the highest ever since UPI turned
per unit of electricity for 5 years, applicable to
operational in 2016.
DISCOMs or renewable energy sources. Wage
 SBI classifies MTNL loan accounts as sub-standard.
assistance will be available for employees, ranging from
 The European Union (EU) voted to impose tariffs as
Rs 3,000 to Rs 5,000 per month for women and Rs
high as 45% on electric vehicles from China,
2,000 to Rs 4,000 for men, depending on their roles.
threatening a broader trade conflict with Beijing
Additionally, SHG members will receive Rs 5,000 per
which has already vowed to protect its companies.
month for training for 3 months and payroll support of
 Adani Total Gas commissions India‟s biggest
up to 25 per cent of job work turnover for 5 years. The
hydrogen blending in natural gas project.
policy also includes measures for quality certification,
November 5, 2024

 The gross enrolments under the Atal Pension Yojana

energy and water conservation savings, and technology
have crossed the 7 crore mark, the PFRDA said.
acquisition support. The Textile Policy 2024 places a
 Ratan Tata, Tata Sons chairman emeritus, iconic
strong emphasis on labour-intensive units, defined as
industrialist & philanthropist, dies at 86.
new industrial units that employ at least 4,000
 Star Health Insurance, has acknowledged a data
registered individuals under the Employee Provident
security breach and announced that it is actively
Fund (EPF) scheme, including a minimum of 1,000
working to address the situation.
women. These units can receive capital subsidies of 25
 The Union Government has disbursed Rs 1.78 lakh
per cent to 35 per cent, capped at Rs 150 crores,
crore to state governments as part of its tax
and are eligible for credit-linked interest subsidies of 7
devolution, including an advance instalment of Rs
per cent to 8 percent for up to 8 years, with an annual

The Banking & Financial Updates November 2024

 10

89,086.50 crore. 2024 for the ninth consecutive year, an honor it

 Mukesh Ambani retains top spot on Forbes India's shares as a member of the “Best Companies – Hall
rich list with $108 bn net worth. of Fame.”
 The Central Board of Direct Taxes (CBDT) has  Lahore has once again claimed the title of the most
extended the deadline for filing income tax audit polluted city globally, with the Air Quality Index (AQI)
reports for trusts, institutions, and funds to November soaring to alarming levels.
10, 2024.  Observed annually in India on October 30, World
 The Nobel Peace Prize was awarded to Nihon Savings Day promotes awareness about the
Hidankyo, a Japanese organisation of survivors of importance of saving. Globally, however, it is
the US atomic bombings of Hiroshima and Nagasaki, observed on October 31.
for its activism against nuclear weapons.  The United States, Japan, and South Korea have
 Hindustan Aeronautics Limited (HAL) will now be jointly announced the Digital Infrastructure Growth
the 14th „Maharatna‟ company among Central Initiative for India (DiGi Framework). It targets key
Public Sector Enterprises (CPSE). technological advancements in India, including 5G,
 Paytm issues apology after backlash over CEO Vijay Open RAN, submarine cables, optical fiber networks,
Shekar Sharma‟s controversial „Ok Tata Bye Bye‟ data centers, smart cities, e-commerce, AI, and
post. quantum technology.
 India ranks 105th in Global Hunger Index 2024,  The Election Commission of India signed an
labelled as 'serious'. agreement for electoral cooperation with
 Reliance Jio becomes world‟s fastest-growing 5G Uzbekistan‟s central poll body.
FWA provider; targets 1 mn user additions a month.  Israel Joins Asian Development Bank (ADB) as 69th
 Under its flagship programme for rooftop solar PM Member Country.
Suryaghar Yojana, the government has installed  Maldives President Mohamed Muizzu has
around 4 lakh rooftop solar connections so far, announced the introduction of India‟s UPI to enhance
according to the Minister of New and Renewable the country‟s economy by improving financial
Energy Pralhad Joshi. inclusion and transaction efficiency.
 RBI lifts restrictions on JM Financial from financing  The Odisha government has announced an increase
against shares and debentures. in the casual leave (CL) entitlement for women
 Insurance benefits for EPFO members extended up employees, granting an additional 12 days annually.
to Rs 7 lakh. This brings their total CL to 27 days, compared to 15
 SBI to outsource running of 40% of onsite ATMs, days for male employees.
marking largest such order.  Odisha is set to host the 18th Pravasi Bharatiya
 India lifts all curbs on rice exports, scraps 10% Divas from January 8th to 10th next year in
export duty on parboiled rice, $490 floor price for Bhubaneswar.
white rice.  Haryana has become the first state to implement
 FIU imposes Rs 54 lakh fine on Union Bank of India sub-quotas for the Dalit community by
for PMLA violations. subclassifying the Scheduled Castes (SCs).
 SEBI barred First Overseas Capital from taking any  Madhya Pradesh Introduces „Pink Alarms‟ for
new mandate as a lead manager for any public issue Enhanced Women‟s Safety at Datia Hospital.
of debt securities until further orders for allegedly  The Financial Action Task Force (FATF) has
violating merchant bankers rules. introduced significant changes to its criteria for
 The Reserve Bank has revoked the certificate of placing countries on its grey list, aiming to relieve the
authorisation of UAE Exchange Centre LLC for burden on least developed countries (LDCs) while
non-compliance with regulatory requirements and targeting nations that pose greater risks to the
now it cannot transact the business of cross border international financial system.
in-bound money transfer.  Indian Railways has announced a reduction in the
 'IndiaAI' and Meta announces the establishment of Advance Reservation Period (ARP) for long-distance
the Center for Generative AI, Shrijan at IIT Jodhpur. train bookings from 120 days to 60 days, effective
 Reserve Bank of India Governor Shaktikanta Das November 1, 2024.
has been ranked the top central banker by the US-  On the evening of October 17, 2024, the Israel
based Global Finance magazine for second Defense Forces (IDF) made a significant
consecutive year. announcement, that Yahya Sinwar, the head of
 RBI asks NBFCs to maintain at least 25% Hamas in Gaza, was killed during a targeted ground
borrowings from capital market. operation in Rafah, southern Gaza.
 SBI named Best Bank in India for 2024 by Global  Nayab Singh Saini was sworn in as Haryana‟s Chief
Finance Magazine. Minister for the second time.
 Centre launches mobile app FCI GRS to address  Omar Abdullah, a prominent leader of the Jammu
November 5, 2024

grievances of rice millers. and Kashmir National Conference (JKNC), has been
 System‟ at 17th Urban Mobility India (UMI) sworn in as the new Chief Minister of Jammu and
Conference & Exhibition 2024. Kashmir.
 TCS announces 15-year partnership with Ireland for  BEML has been awarded a contract worth ₹866.87
retirement scheme. crore by Integral Coach Factory (ICF) to design,
 India faces 24.7% GDP loss by 2070 due to climate manufacture, and commission India‟s first
change, says ADB. indigenously built bullet trains.
 DBS Bank India has been recognized as one of the  Abu Dhabi has been recognized as the richest city
„Best Companies for Women in India‟ (BCWI) globally regarding sovereign wealth funds, boasting

The Banking & Financial Updates November 2024

 11

an impressive $1.7 trillion in capital. document storage and verification, has integrated
 Maharashtra government announced on October 14, with the UMANG app to enhance access to various
2024, that the Maharashtra State Skills Development government services.
University will be renamed the “Padma Vibhushan  PM Modi Inaugurates Indian Institute of Skills (IIS)
Ratan Tata Skills University.” Mumbai.
 Dr. S. Somanath, Chairman of ISRO, has been  The 2024 Nobel Prize in Chemistry has been
honored with the prestigious International awarded to David Baker for his innovative work in
Astronautical Federation (IAF) World Space Award, computational protein design and to Demis
in recognition of the remarkable success of Hassabis and John M. Jumper for AI-based protein
Chandrayaan-3, India‟s lunar mission that made structure prediction.
history with its soft landing on the Moon‟s South  Union Cabinet approved the conferral of classical
Pole. language status to Marathi, Bengali, Assamese, Pali,
 DigiLocker, a secure cloud-based platform for and Prakrit on October 3, 2024.

BANKING SUBJECT UPDATES

RBI GUIDELINES ON CENTRAL COUNTERPARTIES (CCPs)
The provisions of these directions shall apply to a domestic and foreign central counterparty authorised to operate in
India under Payment and Settlement Systems Act, 2007 for their operations including clearing and settlement in India.
“Central Counterparty” (CCP) means a system provider, who by way of novation interposes between system
participants in the transactions admitted for settlement, thereby becoming the buyer to every seller and the seller to
every buyer, for the purpose of effecting settlement of their transactions.
The broad principles underlying governance of domestic CCPs are prescribed hereunder.
COMPOSITION OF THE BOARD OF CCP:
 The Board of every authorised CCP shall include Nominee Directors, Independent Directors, Managing Director
and such other Directors as may be notified by RBI from time to time.
 The Board shall have the minimum number of directors as specified in the Companies Act, 2013.
 The Managing Director shall be an ex-officio Director on the Board and shall not be included in either the category
of Independent Directors or Nominee Directors.
 The number of Independent Directors, on the Board and the Committees of the CCP, should be at least equal to
the number of Nominee Directors (including the Managing Director) and in case of an equality of votes, the
Chairperson of the Board / Committee (who is an Independent Director), shall have a second or casting vote.
 No foreign institutional investor shall have any representation in the Board of the authorised CCP.
 The quorum for a meeting of the Board of Directors of the CCP shall be one third of its total strength or three
Directors, whichever is higher. At least half of the directors attending the meetings of the Board shall be
Independent Directors.
ROLES AND RESPONSIBILITIES OF THE BOARD: The roles and responsibilities of the Board of an authorised
CCP shall include; establishing clear strategic aims, effective monitoring of senior management, establishing and
overseeing the risk-management function, ensuring compliance with all supervisory and oversight requirements,
internal control etc.
APPOINTMENT OF DIRECTORS AND CHAIRPERSON:
 The Directors nominated by the nominating organisation shall be serving officials with relevant experience and
expertise.
 The Director / Independent / Nominee Director shall be a citizen of India, who shall be appointed for a maximum of
two terms of three years each or up to 70 years of age, whichever is earlier.
 The Managing Director shall be a citizen of India.
 The term of the Managing Director shall not be beyond five years. The term of the Managing Director may be
extended by another term or up to 65 years of age, whichever is earlier, subject to satisfactory performance review
and approval of RBI.
 The Chairperson shall be a citizen of India. The maximum permissible age for appointment / continuation as Non-
executive Chairperson shall be 70 years.
 The term of the Chairperson shall not be beyond three years, which may be extended by another term, subject to
satisfactory performance review and approval of RBI.
NETWORTH REQUIREMENTS AND OWNERSHIP OF CCPs:
CCPs should have sufficient networth to cover potential general business losses and continue to provide services as a
November 5, 2024

going concern.
NET WORTH OF CCP:
 Every applicant seeking authorisation / recognition as a CCP under Section 5 of the Act, shall have a minimum
networth of ₹300 crore at the time of submitting its application.
 An authorised CCP shall not distribute profits in any manner to its shareholders until the networth specified above is
achieved.
 Every authorised CCP shall submit an audited networth certificate as at close of financial year from the statutory
auditor within six months of the closure of the financial year. The networth is required to be computed as per the
instructions issued by the RBI.

The Banking & Financial Updates November 2024

 12

 A CCP shall hold liquid net assets funded by equity capital equal to minimum of six months of current operating
expenses.
OWNERSHIP OF CCPs (applicable for domestic CCPs):
 The authorised CCP shall be a public company limited by shares. The shares of an authorised CCP shall be held
by persons who are users of the authorised CCP. If a person ceases to be a user, the CCP shall ensure that the
person‟s shares are divested.
 Provided, no person or class of persons shall, directly or indirectly, individually or in concert acquire or hold more
than such percentage of the paid-up share capital of the authorised CCP as may be prescribed by the RBI from
time to time.
 No person shall, directly or indirectly, acquire or hold equity shares of an authorised CCP unless he / she fulfils “fit
and proper” criteria. A person shall be deemed to be a “fit and proper” person if such person has a record of
fairness, integrity and reliability, including but not limited to financial integrity, and track record.
 No person shall transfer / divest / sell / buy equity shares of an authorised CCP without prior approval of RBI; if the
transfer of shares is equal to or more than 5% of the shares of the CCP or where the acquisition of shares and
cumulative shareholding reaches 5% or more.
 Authorised CCP shall inform RBI about the transfer or divestment within 15 calendar days of approval of transfer or
divestment of equity shares by its Board.
DIRECTIONS FOR RECOGNISED FOREIGN CCPs:
Any service provided by a foreign entity shall be within the overall legal framework obtaining in India. In line with the
international developments on recognising CCPs operating in multiple jurisdictions, the requirements for recognition of
foreign CCPs are laid down hereunder.
 A foreign CCP may apply to the RBI for approval as a recognised CCP for its operations including clearing and
settlement in India.
 RBI, for granting the recognition, may satisfy by way of inquiry or otherwise, whether the operation of the applicant
in the foreign country is subject to requirements and supervision that are sufficiently equivalent, in relation to the
degree of protection from systemic risk and the level of effectiveness and fairness of services they achieve, to the
requirements and supervision to which clearing and settlement facilities are subject under the Act and these
directions and such other factors as may be considered relevant by RBI.
 The infrastructure for recognised CCP‟s operations in India is required to be domestic without relying on its
overseas infrastructure.
 The Directors of the recognised CCP shall possess appropriate balance of skills, experience and knowledge in one
or more fields of finance, law, management, sales, marketing, administration, research, corporate governance,
information technology or other disciplines related to the CCP.
 The recognised CCP shall have robust governance arrangements with a well-defined, transparent organisational
structure to manage, monitor and report the risks which it might be exposed.
 The recognised CCP shall constitute a Risk Management Committee of the Board with the members who are
sufficiently knowledgeable in the field of risk management.
RBI REGULATORY FRAMEWORK FOR MICRO FINANCE LOANS
RBI issued consolidated directions in this regard applicable for all Scheduled Commercial Bank), Small Finance
Banks, Co-operative Banks and NBFCs.
DEFINITION / CONCEPT OF MICRO FINANCE LOAN:
 A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to
₹3,00,000. For this purpose, the household shall mean an individual family unit, i.e., husband, wife and their
unmarried children.
 The Regulated Entity (REs) shall have a board-approved policy to provide the flexibility of repayment periodicity on
microfinance loans as per borrowers‟ requirement.
 Each RE shall have a board-approved policy regarding the limit on the outflows on account of repayment of monthly
loan obligations of a household as a percentage of the monthly household income. This shall be subject to a limit of
maximum 50 per cent of the monthly household income.
 The computation of loan repayment obligations shall take into account all outstanding loans of the household. The
outflows capped at 50 per cent of the monthly household income shall include repayments towards all existing
loans as well as the loan under consideration.
PRICING OF LOANS:
November 5, 2024

 Each RE shall put in place a board-approved policy regarding pricing of microfinance loans which shall, inter alia,
cover; a well-documented interest rate model/ approach for arriving at the all-inclusive interest rate, Delineation of
the components of the interest rate such as cost of funds, risk premium and margin, etc. in terms of the quantum of
each component based on objective parameters, the range of spread of each component for a given category of
borrowers; and a ceiling on the interest rate and all other charges applicable to the microfinance loans.
 Interest rates and other charges/ fees on microfinance loans should not be usurious. These shall be subjected to
supervisory scrutiny by the Reserve Bank.
 There shall be no pre-payment penalty on microfinance loans. Penalty, if any, for delayed payment shall be applied
on the overdue amount and not on the entire loan amount.

The Banking & Financial Updates November 2024

 13

 Each RE shall prominently display the minimum, maximum and average interest rates charged on microfinance
loans in all its offices, in the literature (information booklets/ pamphlets) issued by it and details on its website.
 Any change in interest rate or any other charge shall be informed to the borrower well in advance and these
changes shall be effective only prospectively.
KEY FACTS STATEMENT (KFS):
 Key Facts Statement (KFS) is a statement of key facts of a loan agreement, in simple and easier to understand
language, provided to the borrower in a standardised format.
 REs shall provide a KFS to all prospective borrowers to help them take an informed view before executing the loan
contract, as per the standardised format written in a language understood by such borrowers.
 urther, the KFS shall be provided with a unique proposal number and shall have a validity period of at least three
working days for loans having tenor of seven days or more, and a validity period of one working day for loans
having tenor of less than seven days.
 The KFS shall also include a computation sheet of annual percentage rate (APR), and the amortisation schedule of
the loan over the loan tenor. APR will include all charges which are levied by the RE.
 harges recovered from the borrowers by the REs on behalf of third-party service providers on actual basis, such as
insurance charges, legal charges etc., shall also form part of the APR and shall be disclosed separately. In all
cases wherever the RE is involved in recovering such charges, the receipts and related documents shall be
provided to the borrower for each payment, within a reasonable time.
 Any fees, charges, etc. which are not mentioned in the KFS, cannot be charged by the REs to the borrower at any
stage during the term of the loan, without explicit consent of the borrower.
 The KFS shall also be included as a summary box to be exhibited as part of the loan agreement.
CONDUCT TOWARDS MICROFINANCE LOANS:
 A fair practices code (FPC) based on these directions shall be put in place by all REs with the approval of their
boards. The FPC shall be displayed by the RE in all its offices and on its website. The FPC should be issued in a
language understood by the borrower.
 Field staff shall be trained to make necessary enquiries regarding the income and existing debt of the household.
 Training, if any, offered to the borrowers shall be free of cost.
 Recovery shall be made at a designated/ central designated place decided mutually by the borrower and the RE.
However, field staff shall be allowed to make recovery at the place of residence or work of the borrower if the
borrower fails to appear at the designated/ central designated place on two or more successive occasions.
 RE or its agent shall not engage in any harsh methods towards recovery i.e; Use of threatening or abusive
language, Persistently calling the borrower and/ or calling the borrower before 9:00 a.m. and after 6:00 p.m,
Harassing relatives, friends, or co-workers of the borrower, Publishing the name of borrowers, Use or threat of use
of violence or other similar means to harm the borrower or borrower‟s family/ assets/ reputation, Misleading the
borrower about the extent of the debt or the consequences of non-repayment.
QUALIFYING ASSETS CRITERIA:
 The definition of „qualifying assets‟ of NBFC-MFIs is now being aligned with the definition of „microfinance loans‟
given above. The minimum requirement of microfinance loans for NBFC-MFIs also stands revised to 75 per cent
of the total assets.
 Under the earlier guidelines, an NBFC that does not qualify as an NBFC-MFI, cannot extend microfinance loans
exceeding 10 per cent of its total assets. The maximum limit on microfinance loans for such NBFCs (i.e., NBFCs
other than NBFC-MFIs) now stands revised to 25 per cent of the total assets.
EXEMPTION FOR „NOT FOR PROFIT‟ COMPANIES ENGAGED IN MICROFINANCE ACTIVITIES:
 The definition of microfinance loans for „not for profit‟ companies (registered under Section 8 of the Companies Act,
2013) is now aligned with the revised definition of microfinance loans viz., collateral-free loans to households with
annual household income up to ₹3,00,000, provided the monthly loan obligations of a household does not
exceed 50 per cent of the monthly household income.
 Exemptions from Sections 45-IA, (Requirement of registration as an NBFC), 45-IB (Maintenance of a certain
percentage of outstanding deposits in approved securities by deposit taking NBFCs) and 45-IC (Transfer of 20 per
cent of net profit to reserve fund) of the RBI Act, 1934 have been withdrawn for those „not for profit‟ companies
engaged in microfinance activities that have asset size of ₹100 crore and above.
 „Not for profit‟ companies that are not eligible for the exemptions mentioned above, are required to register as
NBFC-MFIs and adhere to the regulations applicable to NBFC-MFIs.
NET OWNED FUND (NOF) REQUIREMENT: The current NOF requirement for NBFC-MFIs is Rs. 5 crore (₹2 crore
November 5, 2024

st
in NE Region), and there will be higher NOF requirement of ₹7 crore (₹5 crore in NE Region) by 31 March 2025
st
and ₹10 crore by 31 March 2027.
d. 6.00 percent
IMPORTANT MCQS 2. As announced by RBI during the release of
Monetary Policy Committee meeting decisions
1. RBI has projected Real GDP growth for the th
on 9 October 2024, the CPI inflation for 2024-25
country during FY 2024-25 at______ ? is projected at ______ per cent.
a. 7.50 percent a. 4.5 percent
b. 7.20 percent b. 4.0 percent
c. 6.70 percent c. 4.2 percent

The Banking & Financial Updates November 2024

 14

d. 5.0 percent a. PM National Agri Scheme and Farmers

3. Banks and NBFCs are not permitted to levy Development Scheme
foreclosure charges/ pre-payment penalties on b. PM Rastriya Krishi Unnati Yojana (PM-RKUY) and
which of the following types of loans; Krishibhumi Yojana (KB)
a. Floating rate Working capital and term loans to c. PM Rastriya Krishi Bandhu Yojana (PM-RKBY)
Individual borrowers for purpose other than and Krishonnati Yojana (KY)
business d. PM Rashtriya Krishi Vikas Yojana (PM-RKVY) and
b. Floating rate term loans to Individual borrowers for Krishonnati Yojana (KY)
purpose other than business. 10. SEBI has drastically reduced the trading lot size
c. Loans to Micro and Small Enterprises (MSEs) of privately placed infrastructure investment
d. Both b and c trusts (InvITs) to Rs ______to boost investors'
4. RBI has decided to increase the per transaction participation and increase liquidity of such
limit under UPI123Pay from Rs.5000 to investment vehicles.;
Rs__________ a. Rs.10 Lakh
a. 10000 b. Rs.50 Lakh
b. 7000 c. Rs.25 Lakh
c. 20000 d. Rs.1 Lakh
d. 8000 11. As per recent approval by Finance ministry, the
5. As announced in the Statement of developmental ratio of CGM:GM would be _____ for all category
and regulatory policy dated 09 Oct 2024, RBI has of nationalised banks.
decided to increase the per transaction limit a. 1:2
under UPI Lite from Rs.500 to Rs__________ and b. 1:4
the UPI Lite wallet limit to from Rs.2000 to c. 1:3
Rs________ d. 1:6
a. 2000 and 5000 respectively 12. What is the eligible amount of loan available in
b. 2000 and 10000 respectively Tarun Plus under PM MUDRA Yojana?
c. 1000 and 5000 respectively a. Loans above Rs.10 lakh and upto Rs. 20 lakh
d. 1000 and 10000 respectively. b. Loans of Rs.10 Lakh and above and less than
6. Government of India, vide Trade notice dated Rs.20 Lakh
September 30, 2024, has allowed for an extension c. C. Loans up to Rs.20 Lakh
of the Interest Equalization Scheme for Pre and d. Loans above Rs.10 Lakh and up to Rs.25 Lakh
Post Shipment Rupee Export Credit for three 13. In a first, which Indian Rating agency is going to
months up to December 31, 2024. Which of the issue sovereign ratings of global economies?
following is a criterion to avail benefits under the a. CRISIL
scheme in the extended period? b. CareEdge Global IFSC Ltd
a. The extension is applicable only for MSME c. ICRA Ltd
Manufacturer exporters. d. Infomerics
b. Fiscal benefits of each MSME, on aggregate, will 14. The International Finance Corporation (IFC), has
be restricted to ₹50 lakhs for the Financial Year partnered with which Indian Bank, to provide a
2024-25 till December 31, 2024. $500 million loan to help develop a blue finance
c. Both a and b market and scale up financing of green projects
d. None of the above in India?
7. In terms of Section 13(1) of the Act, if any person a. SBI
contravenes any provision of FEMA, 1999, or any b. ICICI Bank
rule, regulation, shall be liable to a penalty up to c. Axis Bank
_____________in such contravention where the d. PNB
amount is quantifiable. 15. Which fintech platform has tied up with Bajaj
a. Twice the sum involved Allianz General Insurance to offer affordable
b. Thrice the sum involved insurance coverage against firecracker-related
c. Equal to the sum involved accidents during Diwali for a limited period?
d. 5 times of the sum involved a. RazorPay
8. The government has notified _____, as the b. PhonePay
sunset date for the anti-profiteering clause in the c. PayTm
GST law.. d. BharatPe
st
a. 31 December 2024 16. Which Public Sector Bank recently roped in
st
b. 1 April 2025 Sachin Tendulkar as global brand ambassador?
st
c. 1 October 2025
November 5, 2024

st
a. Bank of India
d. 1 July 1025 b. PNB
9. The Union Cabinet on October 3 approved a c. Bank of Baroda
proposal to rationalize all Centrally Sponsored d. Union Bank of India
Schemes (CSS) operating under Ministry of
17. Government and Meta join forces for ______
Agriculture and Farmer‟s into two-umbrella
Campaign to tackle rising online scams.
schemes, with total investment of Rs 1,01,321
crore. The name of the two umbrella schemes a. Scam se Bacho
are; b. Jankar Baniye Satark Rahiye
c. Scam se Jago
d. Bharosa

The Banking & Financial Updates November 2024

 15

18. Who has been appointed as the new MD and

CEO of Bandhan Bank?
RECALLED QUESTIONS FROM
a. Mr. Parthasarathi Ghosh BANK PROMOTION TESTS
b. Mr. Partha Pratim Sengupta
IDBI BANK GRADE C TO D DT. 13.01.2024
c. Mr. Swarup Kumar Saha
d. Mr. Pallav Mohapatra 1. What is the maximum loan amount that can be
19. Who has been appointed as the chairman of covered under CGTMSE guarantee scheme? (Ans.
Rs. 5.00 crore)
Tata Trust?
2. Material alteration in cheques are defined under
a. Mehli Mistry
which section of NI Act (Ans.Section 87)
b. Simone Tata 3. What are the events of willful default? (Ans: A wilful
c. Jimmy Tata default can occur if a borrower: Defaults on
d. Noel Naval Tata payment obligations even though they have the
20. The Textile policy 2024 provides various capacity to pay, Diverts funds from the lender's
financial support mechanisms for businesses, intended purpose, Siphons off funds , Disposes
including capital subsidies ranging from of assets without the lender's knowledge)
_____per cent to ______per cent of eligible fixed 4. Weed out policy is meant for_______ (Ans: A
capital investments, capped at Rs 100 crores bank's weeding out policy may refer to the
based on taluka and activity. process of identifying and removing accounts
a. 10-20% that are no longer viable, or to the process of
b. 10-25% removing unnecessary files from active records)
5. What the word „star‟ means in case of star series
c. 20-30%
Bank notes? (Ans: The Star (*) symbol, which
d. 10-35% appears in the number panel of certain
21. The MSP of wheat, the key rabi crop, has been banknotes, is an identifier indicating that the
raised by 6.6% to _________for 2025-26 season. note is a replacement for defectively printed ones
a. Rs 2,425/quintal in a packet of 100 pieces of serially numbered
b. Rs.2250/quintal banknotes.)
c. Rs.2675/quintal 6. The paperwork to be filed by Core Investment
d. Rs.2150/quintal Companies has been reduced to ___________by
22. India ranks which spot in Global Hunger Index RBI.(Ans: RBI has reduced the number of
2024 released recently? documents required to register a core investment
a. 88
th company (CIC) from 52 to 18)
b. 105
th 7. What was the purpose of 100 days 100 pays
st campaign launched by RBI? (Ans: To trace and
c. 121
nd settle the top 100 unclaimed deposits in every
d. 72
bank in every district of India)
23. Which Bank was named as the Best Bank in 8. Meaning of VOSTRO Account; (Ans: A Vostro
India for 2024 by Global Finance Magazine? account is a bank account that a domestic bank
a. Federal Bank holds on behalf of a foreign bank in the domestic
b. HDFC Bank country's currency)
c. SBI 9. AOA of a company covers___________ (Ans:
d. Bank of Maharastra Articles of Association are internal documents
24. Which non regional country has recently joined and rules to specify the regulations for a
Asian Development Bank (ADB) as 69th Member company's operations and define the company's
Country? purpose. It outlines how tasks are to be
a. Poland accomplished within the organization, including
b. Australia the process of appointing directors and handling
financial records, how voting rights are
c. Brazil
exercised, and how dividends are distributed.)
d. Israel
10. Liquidity is injected into the economy by RBI by way
25. Which institution releases the Index of Industrial of_________(Ans: RBI injects liquidity into the
Production (IIP) growth data in India? system through the Liquidity Adjustment Facility
a. RBI (LAF). The RBI buys government securities from
b. NSO banks with fresh money to inject liquidity into the
c. DGFT system.)
November 5, 2024

d. DPIIT 11. The loan documents may be destroyed by Bank

after a period of___________ from the closure of the
ANSWERS TO MCQs: loan account. (Ref: Bank specific guidelines)
1 2 3 4 5 6 7 8 9 10 12. The provisions made against standard assets are
b a d a c c b b d c being shown in which place of Balance Sheet? (Ans:
11 12 13 14 15 16 17 18 19 20 Shown separately as 'Contingent Provisions
c a b c b c a b d D against Standard Assets' under 'Other Liabilities
21 22 23 24 25 and Provisions Others' in Schedule 5 of the
a b c d a balance sheet.)
13. What is the minimum experience required for Chief

The Banking & Financial Updates November 2024

 16

Compliance Officer appointed by Banks internally? _______ for mutual fund subscriptions, insurance
(Ans. The CCO shall be a senior executive of the premium payments, and credit card bill payments.
bank, preferably in the rank of a General Manager (Ans. Rs.1.00 Lakh)
or an equivalent position (not below two levels 29. What is Payment in due course in case of a
from the CEO).The CCO must have at least 15 cheque? (Ans: The Negotiable Instruments Act,
years of overall experience in banking or 1881 defines payment in due course as follows:
financial services, with a minimum of 5 years in The payment is made in good faith, without
audit, finance, compliance, legal, or risk negligence, payment is made to a person in
management functions.) possession of the cheque and the payment is
14. What is the nature of solvency certificate (FB or made in circumstances that do not give a
NFB)? (Ans: Neither Fund based nor Non-Fund reasonable reason to believe that the recipient is
based) not entitled to receive the payment)
15. Which was the domestic rating agency that had 30. What are the harmonized banking definitions?
been barred by RBI (later allowed with certain (Ans: Harmonized banking definitions are a set of
restrictions)? (Ans. Brickworks) standardized definitions for banking terms and
16. Which section of NI Act describes about Promissory data elements used in regulatory returns.)
Notes? (Ans. Section 4) 31. Individuals and entities can deposit or exchange
17. What is the name of Financial Inclusion Dashboard currency notes of denomination Rs.2000 up to what
of RBI? (Ans: Antardrishti dashboard) amount at a time at 19 RBI Issue Offices in
18. The web portal of RBI for search and initiation of India.(Ans. Rs.20000/-)
claim of unclaimed deposits by customers 32. In a CC account of partnership firm (of three
is________ (Ans: UDGAM Portal) partners), o/s balance is Rs.2.00 lakh. One of the
19. Whether a claim can be made on the partnership partners died, however the other two alive partners
farm having minor as a partner? (Ans: Yes. The firm requested the bank to allow operations in the
and a minor partner's share is liable for the firm's account. They deposited Rs.2.50 lakh and later
acts, but the minor is not personally liable for withdrew Rs.1 akh. How much will be the liability of
any losses) the estate of the deceased partner? (Ans: NIL)
20. What is the minimum amount of non-callable term 33. Financing and discounting of trade receivables of
deposit limit raised by RBI for commercial Banks? MSME units are done through which electronic
(Ans: Rs.1.00 crore) platform? (Ans: TReDS)
21. Whether a will can be registered? (Ans: Yes, a will 34. What is the limit for Ways and Means advance set
nd
can be registered in India, though it is not by RBI for 2 half of this financial year? (Ans:
mandatory) Rs.50000 crore)
22. What is the maximum amount of Term Loan that 35. Which is the implementing agency of PMEGP?
can be allowed in case of account opened in non- (Ans: KVIC)
face-to-face mode using OTP based authentication 36. What is the minimum loan amount under PM-
process? (Ans. Rs.60000/-) SVANIDHI scheme in 3rd tranche? (Ans. Minimum
23. What is the provision requirement against standard Rs.20000/- and maximum Rs.50000/-)
assets in case of urban co-operative Banks? (Ans: 37. As per GoI notification, which are the 3 DRTS that
0.25% in case of agriculture and SME, 1.00% for have been made to exclusively deal with debts of
CRE, 0.75% for CRE-RH and 0.40% in case of Rs.100 crore and above? (Ans: DRT-1 Mumbai,
others) DRT-3 New Delhi and DRT-1 Chennai)
24. In the customer's account a lot of high value cash 38. What should be the distance of unit from branch
transactions are happening and, the customer is not under Stand Up India Scheme? (Ans: The Stand-Up
cooperating. In such case what will be your course of India scheme doesn't specify a distance
action? (Ans: Report under Suspicious requirement for a unit from a branch. Refer Bank
Transaction Reports (STR) in addition to Cash specific guidelines if stipulated)
Transaction Report as per the threshold) 39. The process of stealing data from screen, a user
25. Information/ document disclosed to the stock interface (UI) of an application, web page, or terminal
exchange(s) in compliance of Regulation 30 (8) of is termed as__________ (Ans: Screen Scraper)
SEBI-LODR, shall be available on the website of the 40. Arrange the payment/remittance technology in the
Company for a period of __________years from the way they were invented (MICR/RTGS/NEFT/EFT)?
end of the financial year in which the (Ans: MICR(1958), EFT (1978), RTGS (1984) and
information/document is uploaded and thereafter, it NEFT (2005)
shall be moved to online archive.(Ans: 5 years) 41. What is a keylogger? (Ans: A computer program
26. Which act/regulations have made the provisions for that records every keystroke made by a
Banks in India to publish their quarterly results? computer user, especially in order to gain
November 5, 2024

(Ans: Banks publish quarterly results as per the fraudulent access to passwords and other
Companies Act, 2013 and the SEBI (Listing confidential information.)
Obligations and Disclosure Requirements) 42. What is the rate of interest on CRR balances with
Regulations, 2015) RBI? (Ans: Nil)
27. RTGS was made available round the clock,
th IDBI BANK GRADE B TO C DT. 13.01.2024
since__________ (Ans: 14 December 2020)
28. RBI has increased the limit for recurring 43. What is the rate of interest payable on the
transactions without Additional Factor of unclaimed deposits transferred into DEAF? (Ans:
Authentication (AFA) from Rs.15000 to to Rs 3% p.a simple interest)
44. What are the components of Tier II capital as per

The Banking & Financial Updates November 2024

 17

BASEL III norms? (Ans: Undisclosed reserves, of the agent ends after death of principal)
Revaluation reserves, Hybrid capital instruments, 51. If someone subscribes to the PMJJBY in January
general provisions and loan loss reserves) then what will be the commission for Agent/bank?
45. Where the lighthouse festivals are being (Ans. Rs.7.50 to agents and Rs.3.50 to Bank)
celebrated? (Ans: Puri, Odisha) 52. What is the maturity period of Sukanya Samridhi
46. If the long term source of fund is Rs.100 Lakh, Long deposit account? (Ans: 21 years)
Term use is Rs.60 Lakh and the Total assets is 53. What is the relationship between Bank and
Rs.160 Lakh. Calculate the Gross Working Capital. customer in case of Standing Instruction? (Ans:
(Ans. Gross Working Capital is equal to Total Agent and Principal)
Current Assets. Hore The Total Assets is Rs.160 54. Hypothecation is defined in which act? (Ans.
Lakhs out of which fixed and non-current assets SARFAESI Act)
amounts to Rs.60 Lakh, being long term use. So 55. What is the target for SC/ST under NRLM? (Ans:
Total Current Assets = 160-60 = Rs.100 Lakh) 50%)
47. What is the penalty payable for wrong or delay in 56. What is the current rate of interest in PPF?
providing information under RTI? (Ans: Up to Rs 57. Can a PPF account be opened jointly? (Ans: 7.1%
25,000, or Rs 250 per day until the information is (Q3 of FY 2024-25))
provided) 58. How much foreign currency coin can be retained by
48. In which Bank does LIC has a majority stake? (Ans: Indian resident? (Ans: No limit)
IDBI Bank) 59. Within how many days, unspent foreign currency
49. What should be the minimum time gap between needs to be surrendered with an AD Bank by a
opening two Mahila Sanman Savings accounts by resident? (Ans: 180 days)
same person? (Ans: 3 months) 60. Banks are providing data to CIC in three formats; a.
50. What should be the course of action, if account Consumer bureau, b. Commercial bureau and what
holder dies and his power of attorney issue cheque is 3rd one? (Ans: Micro Finance Institution (MFI)
and it is being presented after the death of account Bureau)
holder? (Ans: It should not be paid since the right

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