RBI, Banking, and Economy (July 2024) PDF

Monthly BeePedia July 2024 RBI, Banking and Economy RBI, ASEAN to create platform for instant retail payments  RBI and ASEAN countries are creating a platform for instant cross-border retail payments.  The platform is expected to go live by 2026.  RBI joine...

Monthly BeePedia July 2024 RBI, Banking and Economy RBI, ASEAN to create platform for instant retail payments  RBI and ASEAN countries are creating a platform for instant cross-border retail payments.  The platform is expected to go live by 2026.  RBI joined Project Nexus, an initiative to enable instant cross-border retail payments by interlinking domestic fast payments systems (FPSs).  Nexus aims to connect FPSs of four ASEAN countries (Malaysia, the Philippines, Singapore, Thailand) and India.  An agreement was signed by BIS and central banks of the founding countries (BNM, BOT, BSP, MAS, RBI) in Basel, Switzerland. Learn Along: About RBI Founded: 1 April 1935 Headquarters: Mumbai Governor: Shaktikanta Das RBI releases the Financial Stability Report, June 2024  The Reserve Bank released the 29th issue of the Financial Stability Report (FSR), which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability. Highlights:  The global economy is facing heightened risks from prolonged geopolitical tensions, elevated public debt, and the slow progress in the last mile of disinflation. Despite these challenges, the global financial system has remained resilient, and financial conditions stable.  The Indian economy and the financial system remain robust and resilient, anchored by macroeconomic and financial stability. With improved balance sheets, banks and financial institutions are supporting economic activity through sustained credit expansion.  The capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBs) stood at 16.8 per cent and 13.9 per cent, respectively, at end- March 2024.  SCBs’ gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8 per cent and the net non-performing assets (NNPA) ratio to 0.6 per cent at end-March 2024.  Macro stress tests for credit risk reveal that SCBs would be able to comply with minimum capital requirements, with the system-level CRAR in March 2025 projected at 16.1 per cent, 14.4 per cent and 13.0 per cent, respectively, under baseline, medium and severe stress scenarios. These scenarios are stringent conservative assessments under hypothetical shocks and the results should not be interpreted as forecasts.  Non-banking financial companies (NBFCs) remain healthy, with CRAR at 26.6 per cent, GNPA ratio at 4.0 per cent and return on assets (RoA) at 3.3 per cent, respectively, at end-March 2024. Withdrawal of ₹2000 Denomination Banknotes – Status  RBI announced the withdrawal of ₹2000 denomination banknotes on May 19, 2023.  Deposit and exchange facility for ₹2000 banknotes was available at all bank branches until October 07, 2023.  Exchange of ₹2000 banknotes is available at 19 RBI Issue Offices since May 19, 2023; deposits accepted since October 09, 2023. 2 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  Public can send ₹2000 banknotes through India Post to RBI Issue Offices for credit to bank accounts.  The total value of ₹2000 banknotes in circulation dropped from ₹3.56 lakh crore on May 19, 2023, to ₹7581 crore on June 28, 2024.  97.87% of ₹2000 banknotes in circulation as of May 19, 2023, have been returned.  The ₹2000 banknotes continue to be legal tender. RBI revises rules on fraud risk management  The Reserve Bank of India (RBI) issued three revised master directions on fraud risk management for various Regulated Entities (REs).  These entities include commercial banks, regional rural banks, urban, state, and central cooperative banks, non-banking finance firms, and housing finance companies.  The revised directions are principle-based and enhance the Board's role in governance and oversight of fraud risk management.  Mandatory compliance with principles of natural justice is required before classifying persons/entities as fraud, per a March 2023 Supreme Court judgment.  The RBI withdrew 36 existing circulars on the subject to rationalize rules and reduce the compliance burden. RBI fines Visa ₹24.1 million for unauthorised payment method  The RBI has imposed a penalty of ₹24.1 million on Visa for an unauthorised payment transfer method.  Visa implemented a payment authentication solution without regulatory clearance.  Visa remains committed to following RBI guidelines and regulations.  Visa aims to continue providing safe and secure payment solutions in India. RBI releases PCA framework for UCBs  The Reserve Bank of India (RBI) issued a Prompt Corrective Action (PCA) framework to improve weak urban cooperative banks (UCBs), effective from April 1, 2025.  The PCA framework will replace the Supervisory Action Framework (SAF) and apply to UCBs with deposits above ₹100 crore.  Invocation norms include a capital adequacy ratio (CAR) up to 250 bps below the required CAR, net NPAs above 6% but below 9%, and losses during two consecutive years.  UCBs are categorized into four tiers: Tier 1 (deposits up to ₹100 crore), Tier 2 (deposits ₹100 crore to ₹1,000 crore), Tier 3 (deposits ₹1,000 crore to ₹10,000 crore), and Tier 4 (deposits above ₹10,000 crore).  Tier 1 UCBs are excluded from the PCA framework but will continue enhanced monitoring under the existing supervisory framework.  The revised framework provides flexibility for entity-specific supervisory action plans and removes the hard-coded ₹25,000 limit on capital expenditure restrictions, allowing Supervisors to set limits based on individual assessments. India Accounts For Nearly Half Of The Global Digital Payments: RBI Report  India holds a 48.5% share in the global real-time payments volume, positioning it as a leader in this sector, as per a Reserve Bank of India (RBI) report.  The country also leads in global remittances, receiving USD 115.3 billion in 2023, with global remittances through mobile and digital platforms totaling USD 857.3 billion.  The digital economy contributes approximately 10% to India's GDP, with projections to reach 20% by 2026, driven by a CAGR of 50% in digital payment volumes over the past seven years.  India's digital landscape includes FinTech innovations and the India Stack, which encompasses biometric IDs, UPI, mobile connectivity, digital lockers, and consent-based data sharing, enhancing both banking and public finance management. 3 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  Cybersecurity emerges as a significant challenge, with incidents reported by the Indian Computer Emergency Response Team (CERT-In) rising sharply, highlighting the need for robust security measures against diverse cyber threats.  The future focus includes advancing next-generation communication technologies like 6G, satellite networks, and expanding 5G coverage, along with striving for self-sufficiency in chip manufacturing to maximize the potential of the digital revolution. World Bank approves $1.5 billion loan for low carbon energy sector  World Bank approved a $1.5 billion loan to India in June 2024 for developing the low-carbon energy sector.  This is the second loan for this purpose, with the first being approved in 2023.  Low-carbon energy includes sources like hydrogen, ammonia, and biofuels which release less carbon than fossil fuels.  The loan supports India's National Green Hydrogen Mission, aiming for net-zero carbon emissions by 2070.  Loan breakdown: $1.44 billion from the International Bank for Reconstruction and Development (IBRD) and $56.57 million from the International Development Association (IDA).  The National Green Hydrogen Mission targets 5 million metric tonnes of green hydrogen production per year and 125 gigawatts of renewable energy capacity by 2030.  IBRD and IDA, parts of the World Bank Group, provide loans and grants to member countries for development projects. Learn Along: About World Bank Headquarters: Washington, D.C., United States Founded: July 1944 President: Ajay Banga LIC enters into tie-up with IDFC First Bank under corporate agency arrangement  Life Insurance Corporation of India (LIC) has formed a corporate agency arrangement with IDFC First Bank Ltd.  This partnership allows over 1 crore customers of IDFC First Bank to buy LIC policies online through the bank's website.  LIC emphasized that with over 95% of the bank's transactions happening online, customers will have a seamless experience for their life insurance needs.  R Doraiswamy, Managing Director of LIC, stated that the tie-up will provide IDFC First Bank's customers with a wide range of LIC's products.  This collaboration aims to enhance accessibility and convenience for customers seeking life insurance solutions. Learn Along: About LIC  The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.  Chairperson : Siddhartha Mohanty Headquarters: Mumbai Forex reserve jumps by $9.70 billion to all-time high of $666.85 billion  India's forex reserves reached an all-time high of $666.854 billion for the week ended July 12, with an increase of $9.699 billion, according to the RBI.  In the previous week, the reserves had increased by $5.158 billion to $657.155 billion, surpassing the previous high for the week ended June 7.  Foreign currency assets, a major component of the reserves, rose by $8.361 billion to $585.47 billion.  Gold reserves increased by $1.231 billion to $58.663 billion during the week. 4 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  The Special Drawing Rights (SDRs) went up by $76 million to $18.111 billion.  India's reserve position with the IMF increased by $32 million to $4.609 billion for the reporting week. Exports to top 10 nations outpace overall numbers  India's top 10 exports grew by 16.5% during the April-June quarter, significantly outpacing the overall merchandise exports growth of 5.8%, according to commerce department data.  Nine out of the top 10 export destinations, excluding China which saw a 2.8% contraction, experienced positive growth, with notable increases in the Netherlands (41.3%), Malaysia (81.8%), and the United Kingdom (21.9%).  These top 10 countries accounted for 52% of India’s total export value in the first quarter, with the United States being the largest market, followed by the United Arab Emirates and the Netherlands.  India's export growth varied across the months: 2% in April, 13% in May, and 2.5% in June, reflecting challenges such as muted demand and logistics issues.  Import growth from India's top 10 import partners, excluding Singapore, Saudi Arabia, and Switzerland, increased by 12%, driven by electronic goods, petroleum products, non-ferrous metals, and machinery.  Imports from Russia grew by nearly 20% to $18.36 billion due to India's dependency on crude oil, making Russia the second-largest import partner after China. Union Bank of India introduces “Union Premier” branches for high-value customers in rural and semi-urban markets  Union Bank of India launched "Union Premier" branches for high-value customers in rural and semi-urban (RUSU) markets.  These branches provide personalized banking services with a wide range of products and services under one roof.  Manimekhalai, Managing Director and CEO, emphasized the dedication to offering world-class and efficient services to RUSU clients.  Each customer will have access to a personal Relationship Manager for all banking needs.  Equipped with the latest digital technologies for seamless and efficient banking.  Quick services with minimal turnaround time for a serene and luxurious banking experience. Learn Along: About Union Bank of India Headquarters: Mumbai Founded: 11 November 1919 MD and CEO: A. Manimekhalai ICICI Bank launches pre-paid Sapphiro Forex Card for international students  ICICI Bank launched a pre-paid Sapphiro Forex Card for students going abroad for higher education. 5 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  Powered by Visa, it helps manage education-related expenses like admission fees, course fees, travel, dining, and groceries.  The card allows transactions in 15 currencies without any cross-currency mark-up charge, even if only one currency is loaded. Learn Along: About ICICI Bank Founded: 1994 Headquarters: Mumbai Non-Executive (part-time) Chairman: Mr. Girish Chandra Chaturvedi NSSO's MPCE survey  The Monthly Per Capita Consumption Expenditure (MPCE) survey was released by the National Sample Survey Office (NSSO).  Consumption surveys assess economic well-being, rural-urban divide, and consumption patterns across income groups and states, aiding policy formulation.  Surveys help economists adjust national inflation indices and businesses tailor products to diverse markets.  Findings: Rural-urban MPCE gap reduced from 84% to 75% over 11 years, with rural areas showing a higher growth rate (4.7%) than urban (2.7%).  State-wise MPCE: Kerala has the highest rural MPCE (₹5,924), while Chhattisgarh, Jharkhand, and Odisha are below ₹3,000.  Urban MPCE: Rajasthan falls below the national average; Madhya Pradesh, Bihar, and Jharkhand are in the bottom tier.  Rural consumption influenced by: government cash transfers, urban migration and remittances, and lower savings rates.  Challenges: agricultural dependence, environmental issues, limited credit access, high inflation, and inadequate infrastructure.  Enhancing rural consumption: Optimizing marketing strategies, balanced regional development, promoting financial inclusion, improving infrastructure, and introducing innovative financial products.  Initiatives: Pradhan Mantri Awas Yojana - Gramin, Pradhan Mantri Gram Sadak Yojana, Deen Dayal Upadhyay - Grameen Kaushal Yojana, National Social Assistance Programme, Saansad Adarsh Gram Yojana, Shyama Prasad Mukherjee Rurban Mission. Rooftop Solar in India's Energy Sector  As of March 2024, India's total installed rooftop solar (RTS) capacity is 11.87 GW, with a notable increase of 2.99 GW in 2023-2024.  The Rooftop Solar Programme, introduced in 2014, aims for 40 GW installed capacity by 2026 (originally 2022).  The programme promotes grid-connected solar rooftop systems on residential buildings.  Key initiatives include SUPRABHA and SRISTI, driven by the Ministry of New and Renewable Energy (MNRE).  Top-performing states: Gujarat, Maharashtra, Rajasthan; moderate: Kerala, Tamil Nadu, Karnataka; underperformers: Uttar Pradesh, Bihar, Jharkhand.  Significance: Decentralized energy production, economic advantages, energy independence, rural electrification, and alignment with UN SDG 7.  India's total solar capacity: 73.31 GW by December 2023, led by Rajasthan (18.7 GW) and Gujarat (10.5 GW).  PM Surya Ghar Muft Bijli Yojana aims to provide RTS systems to 1 crore households with 300 units of free electricity monthly.  Other government initiatives include 100% FDI, One Sun, One World, One Grid, SAUBHAGYA, Green Energy Corridor, National Smart Grid Mission, and International Solar Alliance. 6 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024 PNB launches 'Safety Ring' to enhance security for internet, mobile banking  Punjab National Bank (PNB) introduced a new security feature called 'Safety Ring' for its internet and mobile banking systems.  The feature adds an additional safety layer to minimize potential losses from unauthorized access by cyber fraudsters.  Safety Ring is optional and allows customers to set a daily transaction limit for term deposits (TDs) on online closure or availing overdraft facility.  The customer-defined limit ensures that TDs cannot be closed, withdrawn, or used for loans (overdraft) beyond the set limit through digital channels.  This mechanism aims to enhance security and protect customers from cyber fraud.  PNB highlighted the increasing need for security measures in response to rising cyber fraud incidents. ‘Interest equalisation scheme’  EEPC India, representing engineering goods producers, urges the Centre to restore interest subvention scheme for all players and increase benefits for MSMEs.  Engineering goods make up a quarter of India's merchandise exports in recent years.  The Interest Equalisation scheme for pre- and post-shipment rupee credit lapsed last month for all exporters except MSMEs.  MSMEs have been granted these benefits for two more months. Learn Along: About Interest equalisation scheme  The Government of India has announced the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit to eligible exporters.  The scheme is effective from April 1, 2015. SBI raises ₹10,000 crore from infra bond issue  State Bank of India (SBI) raised ₹10,000 crore at a 7.36% coupon rate for a 15-year term through its sixth infrastructure bond issue.  The issue received overwhelming response with bids exceeding ₹18,145 crore, oversubscribed by about 3.6 times against the base size of ₹5,000 crore.  Investors included pension funds, PFs, mutual funds, and insurance firms.  Proceeds from the bond issue will be used for affordable housing and infrastructure. Learn Along: About SBI Chairperson: Dinesh Kumar Khara Founded: 1 July 1955 Headquarters: Mumbai BSF and SBI Partnered for ‘Grow with the Trees’ Drive in Srinagar  BSF and State Bank of India (SBI) partnered for a tree plantation drive called "Grow with the Trees" in Srinagar on 6th July 2024.  The initiative aimed to promote environmental consciousness and the importance of planting trees.  Participants included BSF officials, jawans, SBI representatives, and school children from Kendriya Vidyalaya at the BSF Headquarters.  This collaboration highlights increasing awareness about environmental issues and the role of trees in combating them.  SBI plans to organize similar drives pan-India wherever possible. SIDBI to build $1 b fund for green financing with $215 m from GCF 7 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  SIDBI received $215.6 million from the Green Climate Fund to create a $1 billion corpus for financing mitigation and adaptation projects (FMAP) for Medium and Small Enterprises (MSMEs).  The funding includes a $200 million loan and $15.6 million grant for capacity building, with SIDBI contributing an additional $800 million from its balance sheet and market sources.  The FMAP facility will support MSME projects in renewable energy, energy efficiency, energy storage, and e-mobility, offering nearly 10,000 concessional loans.  The programme aims to reduce greenhouse gas emissions by 35.3 million tonnes and provide substantial water savings, benefiting over 10.8 million beneficiaries.  This initiative follows the Asian Development Bank's approval of $240 million for rooftop solar projects in India, routed through SBI and NABARD.  The Green Climate Fund is the world's largest dedicated climate fund, with a portfolio of 270 projects worth $14.9 billion for climate action in 130 developing countries. Learn Along: About SIDBI Set up: 2nd April 1990 CMD: Sivasubramanian Ramann Headquarters: Lucknow IndusInd Bank collaborates with Inspire Institute of Sport to launch 'Wrestle for Glory'  IndusInd Bank launched the 'Wrestle for Glory' program, a CSR initiative in collaboration with the Inspire Institute of Sport (IIS) to empower 50 talented female wrestling athletes with fully-funded scholarships for coaching at IIS.  The program focuses on inclusivity and sporting excellence, providing athletes with access to top-tier training facilities, expert coaching, sports science resources, cutting-edge equipment, nutritional support, educational assistance, and a supportive ecosystem.  'IndusInd For Sports', the Bank's non-banking sports vertical, was established in 2016 to promote diversity, differentiation, and domination in Indian sports. Learn Along: About IndusInd Bank  Established in 1994 by a platform conceived and promoted by Srichand P Hinduja along with members of Indian diaspora, the name ‘IndusInd Bank' was inspired by the Indus Valley Civilization - one of the greatest cultural example of a combination of innovation with sound business and trade practices.  Chairman: Mr. Sunil Mehta Highlights of the Economic Survey 2023-24 Economic Performance and Growth Projections: o India's real GDP grew by 8.2% in FY 2023-24, with projections of 6.5-7% for FY 2024-25. o Real GDP in 2024 was 20% higher than in 2020, showing significant post-pandemic recovery. o Positive outlook despite geopolitical and financial risks. Investment and Inflation: o Gross Fixed Capital Formation increased by 9% in FY 2023-24. o Retail inflation declined to 5.4% due to policy measures, though food inflation rose to 7.5%. External Sector: o Trade openness indicator increased, with 1.8% share in global goods exports and 4% in services exports. o The Current Account Deficit (CAD) narrowed to 0.7% of GDP. Employment and Income: o Per capita income projected to reach ₹14.9 lakh by 2047. o Significant job creation with 131.5 lakh new EPFO enrollments and 8.5 lakh jobs from PLI Schemes. o Rural wages grew by over 5% annually. 8 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024 Monetary Management: o Bank credit growth robust at 20.2%. o GNPA ratio declined to a 12-year low of 2.8%. Climate and Energy: o Installed solar capacity increased to 82.64 GW, achieving targets ahead of the 2030 goal. o Significant growth in non-fossil fuel energy sources. Social Sector and Education: o CSR spending exceeded ₹25 thousand crore. o Higher education enrollment rose to 4.33 crore. o One lakh patents granted in FY 2023-24. Agriculture and Industry: o Agriculture sector grew at 4.18% over five years, supporting 42.3% of the population. o MSMEs contributed 35.4% to manufacturing output, with 4.69 crore registered on the Udyam portal. Service and Infrastructure: o Service sector accounted for 55% of the economy, with significant export contributions. o Infrastructure investments split between Central (49%), State (29%), and Private (22%) sectors, focusing on connectivity and digital infrastructure. SUMMARY OF THE UNION BUDGET 2024-2025  India's inflation remains low, stable, and is moving towards the 4% target.  The PM's package includes 5 schemes and initiatives with an outlay of ₹2 lakh crore to facilitate employment, skilling, and opportunities for 4.1 crore youth over 5 years.  The budget focuses on employment, skilling, MSMEs, and the middle class, with sustained efforts on 9 priorities for generating ample opportunities.  109 high-yielding and climate-resilient crop varieties will be released for cultivation; 1 crore farmers will be initiated into natural farming in the next two years.  ₹1.52 lakh crore is allocated for agriculture and allied sectors; 1,000 Industrial Training Institutes will be upgraded.  A plan, Purvodaya, will be formulated for the all-round development of the eastern region, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.  An allocation of over ₹3 lakh crore for schemes benefiting women and girls, promoting women-led development.  ₹2.66 lakh crore is allocated for rural development, including rural infrastructure; Mudra loans limit increased to ₹20 lakh.  A comprehensive scheme will provide internship opportunities in 500 top companies to 1 crore youth over 5 years.  PM Awas Yojana Urban 2.0 aims to address the housing needs of 1 crore urban poor and middle- class families with an investment of ₹10 lakh crore.  Phase IV of PMGSY will provide all-weather connectivity to 25,000 rural habitations.  A venture capital fund of ₹1,000 crore is set to expand the space economy by 5 times in the next 10 years.  Major tax relief for 4 crore salaried individuals and pensioners; standard deduction increased to ₹75,000, and family pension deduction to ₹25,000.  Angel tax abolished for all classes of investors; corporate tax on foreign companies reduced to 35%.  Capital gain exemption limit increased to ₹1.25 lakh per year; custom duty on x-ray panels, mobile phones, and PCBA reduced to 15%.  Precious metals including gold and silver will become cheaper, with custom duty reduced to 6%. 9 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024 SGBs set to power agri-solar, green H 2 ,metro rail projects  Energy infra ministries have sought ₹32,000 crore for green energy, energy transition, and transit- development projects through sovereign green bonds (SGBs).  The Ministry of New and Renewable Energy (MNRE) is the largest claimant, seeking ₹10,000 crore for solar projects, part of the PM Kusum scheme and National Green Hydrogen Mission (NGHM).  Additional projects benefiting from SGB funds include public transport and green railway projects, such as metro rail constructions near Kolkata airport and in Majerhat.  India launched its maiden SGB in 2023 to access the global climate finance market, raising ₹16,000 crore in FY23 and planning to raise ₹20,000 crore in FY24.  For FY25, Budget Estimates include significant increases for various green projects, such as solar energy (₹10,000 crore), wind energy (₹930 crore), and energy-efficient 3-phase electric locos (₹12,000 crore). Learn Along: About Sovereign Green Bonds (SGrBs)  In the Union Budget 2022-23, the FM announced the government’s decision to issue SGrBs, a kind of government debt that specifically funds projects attempting to accelerate India's transition to a low-carbon economy.  Funds raised through SGrBs are earmarked exclusively for green projects, ensuring transparency and accountability in fund utilization.  SGrBs typically offer lower interest rates compared to Government-Securities (G-Secs), reflecting their alignment with sustainable development objectives.  Issuance of SGrBs requires adherence to internationally recognised green standards and certification processes to ensure the credibility of funded projects. Karnataka Bank partners with ICICI Lombard General Insurance Company  Karnataka Bank announced a strategic partnership with ICICI Lombard General Insurance Company.  This partnership provides Karnataka Bank customers with access to a wide range of comprehensive insurance products and services from ICICI Lombard.  Offerings include health insurance, motor insurance, travel insurance, home insurance, and more.  The collaboration aims to cater to the diverse insurance needs of individuals and businesses.  This tie-up enhances the insurance solutions available to Karnataka Bank’s clientele. United States overtakes UAE as India’s second largest LNG supplier  In 2023, the U.S. surpassed the UAE to become India's second largest supplier of liquefied natural gas (LNG), delivering 3.09 million tonnes (mt).  The U.S. emerged as the world's largest LNG exporter in 2023, with exports increasing by 15% year- on-year to 89 mt.  LNG is gaining prominence as a substitute fuel in the transition towards green energy.  According to the World LNG Report 2024 by the International Gas Union (IG), the U.S. had increased its LNG supply to India from 1.8 mt in 2019 to 3.86 mt in 2021.  Qatar maintained its position as India's largest LNG supplier since 2019, with shipments reaching 10.92 mt in 2023.  African nations like Nigeria and Angola saw a significant decline in their shares of India's LNG imports, with shipments reducing to 0.73 mt each in 2023 from around 2.7 mt in 2019. Learn Along: About USA Capital: Washington, D.C. Currency: U.S. dollar Category Details Russian Coking Coal - Reached 5-year high at 2.02 mt in Q1FY25. Imports 10 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024 Category Details - Russian imports increased from 9% to 13% of total from Q1FY21 to Q1FY25, showing a 15% CAGR. - Year-on-year, Russian shipments rose 45% to 2.02 mt. Australia's Coking Coal - Share fell to 5-year low of 56%, totaling 8.54 mt. Imports - Despite the decline, remains the highest supplier. USA's Coking Coal Imports - Reached 2.08 mt, down 2.5% year-on-year. India's Total Coking Coal - 15.49 mt in Q1FY25, up 4% year-on-year. Imports India's Vegetable Oil - In June 2024: 1,550,659 tons (up 18% from June 2023). Imports - Includes 1,527,481 tons of edible oils and 23,178 tons of non-edible oils. - Overall imports from Nov. 2023 to June 2024: 10,229,106 tons (a 2% decrease from previous year). Food Inflation - Rose to 9.4% in June; retail price rise to 5.1%. - Urban and rural inflation rates increased; vegetable prices surged 29.3%, pulses 16.1%, fruits 7.15%. Crude Oil Imports from - Rose to a 12-month high of 1.97 mbpd in June. Russia - Public and private refiners like IOCL, BPCL, RIL, and Nayara Energy recorded significant imports. Trade Deficit - Merchandise exports rose 2.55% to $35.2 billion in June. - Import bill climbed 5% to $56.2 billion, widening the trade deficit by 9.4%. - Total merchandise and services exports for Q1 of 2024-25 reached $200.3 billion. GDP Forcasts by Various Organisation: GDP Forecast for Next Year's GDP Organization Additional Information FY24-25 Forecast IMF 7% 6.5% - Global growth projected at 3.2% in 2024 and 3.3% in 2025. - Main engines for global growth are Asia's emerging markets, especially India and China. - Inflation risks are increasing, affecting monetary policies and interest rates. ADB 7% 7.2% - Inflation averaging 4.6% in FY25. - China's growth forecast at 4.5% for 2024, inflation revised down to 0.5%. - Supported by normal monsoon and strong indicators like NCAER 7%-7.5% - bank credit growth. - Fiscal deficit target set at 4.9% of GDP for FY25. - Positive outlook influenced by factors like a benign global outlook and receding electoral uncertainty. SEBI AND FINANCIAL AWARENESS 11 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024 SEBI Launches Virtual Assistant For Investors 'SEVA'  Markets regulator Sebi introduced an Artificial Intelligence (AI)-based chatbot named 'SEVA' for investors to facilitate easy access to information.  SEVA is designed to provide answers related to general information on the securities market, latest master circulars, and the grievance redressal process.  The chatbot includes advanced features such as citations for generated responses, speech-to-text and text-to-speech functionalities to enhance accessibility and interactive engagement.  The beta version of SEVA is currently available on SEBI’s investor website and the SAARTHI mobile app for both Android and iOS platforms.  Sebi plans to expand the chatbot's capabilities based on user feedback, ensuring it meets the evolving needs of investors.  A chatbot, such as SEVA, uses Natural Language Processing (NLP), Machine Learning, and Pattern Recognition to simulate human-like conversations and improve over time through interactions. Learn Along: About SEBI  The Securities and Exchange Board of India was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.  Chairperson: Ms. Madhabi Puri Buch Headquarters: Mumbai, Maharashtra Front Running and Insider Trading  Securities and Exchange Board of India (SEBI) is investigating a mutual fund for suspected front- running.  Front-running involves fund managers placing orders ahead of large trades to profit from expected price changes, violating SEBI (Mutual Funds) Regulations, 1996.  It occurs when insiders or brokers use privileged information to trade ahead of others.  Insider trading involves company executives or employees using non-public information for trading, prohibited under the SEBI Act, 1992 and SEBI (Prohibition of Insider Trading) Regulations, 2015.  Both practices, front-running and insider trading, damage investor confidence in market fairness and transparency.  SEBI's regulations aim to prohibit and restrict these illegal trading activities. XVI Finance Commission constitutes Advisory Council  Sixteenth Finance Commission has constituted an Advisory Council with the following members: 1. Dr. D.K. Srivastava 2. Mr. Neelkanth Mishra 3. Dr. Poonam Gupta (Convenor) 4. Ms. Pranjul Bhandari 5. Mr. Rahul Bajoria Role and functions of the Advisory Council include:  Advising the Commission on Terms of Reference (ToR) and related subjects.  Assisting in the preparation of papers or research studies and monitoring studies commissioned by the Finance Commission.  Enhancing the Commission's understanding of issues in its ToR by seeking the best national and international practices. SEBI’s uniform charge structure for stockbrokers  SEBI directive mandates a "uniform and equal" charge structure for all stock exchange members, effective October 1. 12 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  This change is likely to lead to higher broking charges from stockbrokers, negatively impacting their revenue.  Stockbrokers' shares like Geojit Financial, Motilal Oswal, 5Paisa, and SMC Global Securities fell following the announcement.  SEBI observed a discrepancy between the charges collected by brokers from clients and the charges paid to exchanges.  Uniform charges aim to eliminate volume-based discrepancies and ensure charges are "true to label".  The directive impacts brokers' revenue streams, particularly those heavily reliant on the difference between paid and collected charges. SEBI recognises BSE as supervisory body for Research Analysts, Investment Advisors  The Securities and Exchange Board of India (Sebi) has recognized BSE Limited as the Research Analyst Administration and Supervisory Body (RAASB) and Investment Adviser Administration and Supervisory Body (IAASB).  The recognition, starting July 25, 2024, will last for five years, as stated in a Sebi circular issued on July 12.  BSE Ltd will create bye-laws, SOPs, FAQs, and other guidelines to help Research Analysts (RAs) and Investment Advisers (IAs) adopt the RAASB and IAASB framework smoothly.  To qualify as a supervisory body, an entity must be a recognized stock exchange for at least 15 years, have a minimum net worth of Rs 200 crore, and maintain Investor Service Centers (ISCs) in at least 20 cities.  The supervisory body will handle administrative tasks like approving RA/IA advertisements, maintaining a database of RAs/IAs, and issuing necessary guidelines, while also submitting periodic reports to Sebi and collecting fees. Remittances to touch $160 bn in 2029  Remittances to India are projected to increase to $160 billion in 2029 from $115 billion in 2023, based on trends from the past decade, according to the RBI's latest Report on Currency and Finance (RCF).  India is the No. 1 receiver of remittances globally, accounting for 13.5% of the total, with this share increasing over time.  The remittances-GDP ratio for India has risen from 2.8% in 2000 to 3.2% in 2023, surpassing the ratio of gross FDI inflows to GDP (1.9% in 2023), strengthening India's external sector.  India is poised to be the world's leading supplier of labour, with its working-age population expected to rise until 2048, while this number is declining in major advanced economies (AEs).  High global demand for Indian workers, along with continuing skill upgradation, is expected to sustain the boost to inward remittances.  The cost of sending remittances globally has decreased over time due to digitalisation, according to the RCF. Bank of India and Tata Power Solar join hands to provide easier loans  Bank of India (BoI) and Tata Power Solar Systems Limited (TPSSL) have partnered to provide easier loans and financing for rooftop solar panel installation and electric vehicle (EV) charging stations.  Tata Power Solar is the first solar company to partner with BoI for such financing, aiming to increase rooftop solar capacity among houses, societies, and micro, small, and medium enterprises (MSME).  This initiative aligns with the PM-Surya Ghar: Muft Bijli Yojana objectives, making rooftop solar systems more accessible through streamlined loans.  TPSSL is a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL), with a solar capacity of 2 GW. 13 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  In March 2024, TPSSL commissioned a solar and battery energy storage systems project in Chhattisgarh, and in June 2024, they launched their national campaign ‘Ghar Ghar Solar, Tata Power ke Sangh’ from Jodhpur, Rajasthan, further rolled out in Varanasi, Uttar Pradesh in July 2024. Learn Along: About Bank of India Founded: 7th September, 1906 Chairman: M.R.Kumar Headquarters: Mumbai Mudra loans limit doubled to Rs 20 lakh in huge boost to MSMEs  Finance Minister Nirmala Sitharaman announced the increase of MUDRA loan limits from Rs 10 lakh to Rs 20 lakh for those who have successfully repaid previous loans under the Tarun category.  This initiative benefits individuals facing financial constraints in starting their businesses, allowing access to up to Rs 20 lakh directly transferred to the beneficiary’s bank account.  The Pradhan Mantri Mudra Yojana offers three products: ‘Shishu,’ ‘Kishore,’ and ‘Tarun’, catering to different stages of growth.  A new credit assessment model for MSMEs has been introduced, where public sector banks will use digital footprints to evaluate creditworthiness, moving away from traditional asset or turnover-based criteria.  This model aims to provide more effective assessments for MSMEs without formal accounting systems, ensuring a broader and fairer distribution of credit.  The increased financial support is expected to significantly boost self-employment and entrepreneurship across the country. Skill Development Minister Jayant Chaudhary launches revamped Model Skill Loan Scheme  Skill Development Minister Jayant Chaudhary launched the revamped Model Skill Loan Scheme on Thursday, following Finance Minister Nirmala Sitharaman's announcement of increasing the loan size for high-end skilling courses to ₹7.5 lakh from ₹1.5 lakh.  The previous Credit Guarantee Fund Scheme for Skill Development, notified in November 2015, faced challenges, extending loans worth ₹115.75 crore to just 10,077 borrowers by March 31.  Low fund utilisation under the previous scheme was attributed to the low ticket size of loans (up to ₹1.5 lakh) and rising course costs due to inflation, leaving many high-cost courses excluded.  Only member lending institutes of the Indian Banking Association (IBA) were allowed to lend earlier, leading to low uptake by both private and public sector banks due to their limited reach.  The new scheme expands the lending network to include Non Banking Financial Companies (NBFCs) and small finance banks, offering access to more skill courses and higher loan limits. NEW PENSION SCHEME ‘VATSALYA’ ANNOUNCED FOR MINORS; CONTRIBUTION BY PARENTS AND GUARDIANS  The Union Budget 2024-25 introduced the National Pension Scheme (NPS) Vatsalya, a pension scheme aimed at minors.  Parents or guardians can initiate an NPS account for their children, promoting responsible financial management from an early age.  NPS Vatsalya is a contributory pension scheme with contributions made by parents or guardians.  Upon reaching 18 years of age, NPS Vatsalya accounts convert into regular NPS accounts, encouraging consistent saving habits.  The NPS is a voluntary pension system for all citizens, including residents and Non-Resident Indians (NRIs) aged 18 to 70 years.  It is a market-linked contribution scheme that allows Indian citizens to save systematically for retirement and enjoy tax benefits. India’s Retail Digital Payment Likely To Double To 7 Trillion Dollars By 2030 14 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  India's retail digital payments are projected to double to 7 trillion dollars by 2030, according to a joint study by Kerney and Amazon Pay.  Digital payments for retail transactions grew to 3.6 trillion dollars in 2023-24, up from 300 billion dollars in 2017-18.  UPI transactions, introduced in 2016, saw a 138% growth from 2018 to 2024.  India's e-commerce market was valued at 75-80 billion dollars in 2022 and is expected to grow by 21% by 2030.  Cards and digital wallet transactions account for 10% of the digital transaction value in India.  In 2022, India accounted for 46% of the world's digital payment volumes. Muthoot Finance selected for FATF report  Muthoot Finance is the only Indian NBFC selected for the FATF Mutual Evaluation report 2023-24.  It is recognized by FATF for its trustworthiness and global reputation.  FATF is a global agency established in 1989.  It aims to develop policies to combat money laundering and terrorism financing.  It Addresses significant threats to the global financial system. India launches UPI payments at world-renowned Galeries Lafayette in Paris  India launched the Unified Payments Interface (UPI) at Galeries Lafayette in Paris after its successful launch at the Eiffel Tower.  This aligns with India’s vision of globalizing UPI, developed by the National Payments Corporation of India (NPCI) in 2016.  The launch is part of a broader effort to expand UPI across France, following the first international launch in Singapore in 2018.  UPI offers a seamless way to integrate multiple bank accounts into a single mobile application for fund routing and merchant payments.  The expansion aims to facilitate cross-border digital payments and remittances, especially ahead of the Paris Olympics 2024. Learn Along About UPI  Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.  It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.  NPCI conducted a pilot launch with 21 member banks. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai.  Evergreening of loans is a process whereby a lender tries to revive a loan that is on the verge of default or in default by extending more loans to the same borrower.  Downstream investments refer to the actual investments made by AIFs in companies using raised funds from investors. Government of India and ADB sign $170 million loan to strengthen pandemic preparedness and response  The Government of India and the Asian Development Bank (ADB) signed a $170 million policy-based loan to enhance India's health system preparedness and response to future pandemics.  Signatories included Ms. Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, and Ms. Mio Oka, Country Director of ADB’s India Resident Mission.  The loan aims to strengthen disease surveillance, ensure sufficient and quality health professionals, and promote climate-resilient public health infrastructure.  The programme aligns with National Health Policy 2017, PM-ABHIM, and National One Health Mission. 15 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  Targeted reform areas include strengthened disease surveillance, human resources for health, and expanded climate-resilient infrastructure.  ADB will support policy reforms to ensure adequate health professionals, regulate standards, and improve governance of One Health approach.  The programme will enhance public health laboratories, district critical care hospital blocks, and establish green and climate-resilient health care facilities. Learn Along: About ADB  Established in 1966, the ADB is a multilateral development bank with the mission to promote economic growth and cooperation in the Asia-Pacific region.  Headquartered in Manila, Philippines, ADB comprises 68 member states and is governed by a board of governors, funded by member contributions, retained earnings, and loan repayments.  President: Masatsugu Asakawa LIC launches project 'Jeevan Samarth' to meet customers' evolving needs  LIC launched the 'Jeevan Samarth' agency transformation project to meet evolving customer needs.  Partnering with A T Kearney, LIC will review its existing agency framework comprehensively.  CEO Siddhartha Mohanty stated the project aims to align LIC's agency ecosystem with the needs of millions of Indian families, offering long-term savings, protection, health insurance, ULIP, and pension solutions.  The transformation includes revamping agency operations at branch, division, and zonal levels to establish global best practices.  The initiative will provide agents with more tools and skills, strengthening the bond between agents and customers.  The project addresses the fast-changing industry and regulatory landscape of the insurance sector in India. Learn Along: About LIC  LIC is fully owned by the government. It was set up in 1 September 1956. It has the biggest share in India’s insurance business.  Chairperson: Siddhartha Mohanty Headquarters: Mumbai World Bank Approves Additional $1.5 Billion in Financing to Support India’s Low-Carbon Transition  World Bank approved $1.5 billion for India to accelerate low-carbon energy development.  Aims to promote green hydrogen market, scale up renewable energy, and stimulate finance for low- carbon investments.  Supports reforms to boost green hydrogen and electrolyzer production, and renewable energy penetration.  Expected outcomes: 450,000 metric tons of green hydrogen and 1,500 MW of electrolyzers per year from FY25/26.  Reforms will increase renewable energy capacity and reduce emissions by 50 million tons per year.  Aligns with India's energy security and World Bank’s Hydrogen for Development (H4D) Partnership.  Financing includes $1.46 billion from IBRD and $31.5 million from IDA. Learn Along: About World Bank Headquarters: Washington, D.C., United States Founded: July 1944 President: Ajay Banga SBI's Amrit Vrishti: 444-day term deposit scheme with up to 7.75% interest  State Bank of India (SBI) has launched the Amrit Vrishti scheme offering 7.25% interest on 444-day deposits, available until March 31, 2025.  Senior citizens will receive an additional 0.50% interest, making their total rate 7.75% per annum. 16 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia July 2024  The scheme covers Domestic Retail Term Deposits, including NRI Rupee Term Deposits (< Rs 3 crore), for new and renewal deposits.  Interest on Term Deposits is credited at intervals like monthly, quarterly, or half-yearly, while Special Term Deposits receive interest on maturity.  Premature withdrawal penalties apply, with 0.50% for deposits up to Rs 5 lakh and 1% for amounts above Rs 5 lakh, based on the applicable rates at the time.  Investments can be made through YONO SBI, YONO Lite, and SBI internet banking, reflecting SBI’s commitment to customer wealth growth. Learn Along: About SBI Chairperson: Dinesh Kumar Khara Founded: 1 July 1955 Headquarters: Mumbai India and Russia have doubled rupee-rouble payments in 2024  India and Russia have doubled their payments in rupee-rouble despite U.S. and EU sanctions, according to Sberbank.  PM Narendra Modi's visit to Moscow may further boost this trend, potentially reducing the benefits Chinese businesses gain from the absence of Western companies.  The rupee is now easily convertible in Russia, with a sixfold increase in corporate deposits since the beginning of the year.  Bilateral trade in 2023-24 reached $65 billion, with Russia's exports to India mainly in energy totaling $60 billion.  A free trade agreement with the Eurasian Economic Union (EAEU) is in discussion to enhance economic cooperation.  Indian businesses are encouraged to export to Russia in sectors like auto components, chemicals, electronics, and agricultural products to fill the market gap left by Western companies.  The number of transactions handled by Sberbank increased by 80% in the first half of 2024 compared to the same period in 2023. NABARD and AGRICULTURE ICAR to release 323 new varieties of 56 crops  ICAR will launch the "one scientist, one product" programme to improve research in agriculture and animal husbandry.  The council will announce the release of 323 varieties of 56 crops at its 96th foundation day.  These crops include 289 climate-resilient varieties and 27 bio-fortified varieties.  The programme will be inaugurated by Union Agriculture Minister Shivraj Singh Chouhan.  ICAR Director-General Himanshu Pathak stated that 5,521 scientists will be given targets for products, technologies, or publications.  The programme includes monitoring progress at the institute and headquarters levels, with a five-year plan.  ICAR aims to develop 100 new seed varieties and 100 farm technologies as part of the Centre’s 100- day action plan. Learn Along: About ICAR Etablished: 16 July 1929 Headquarters: New Delhi. Jyotiraditya Scindia launches NE-RACE portal, mobile app for farmers in northeast  Jyotiraditya Scindia, Union Minister for Development of the North East Region, launched NERACE to empower farmers and elevate the Northeast as a hub for high-value horticultural products globally.  The NERACE app facilitates trade of agricultural and horticultural products like spices, fruits, vegetables, pulses, cereals, and minor forest products. 17 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]