English & Hindi Monthly ID Volume XII Issue 4 A

I DI RA V V M I D R M R A N A G A...

I DI RA V V M I D R M R A N A G A ND A r G A H Mr C HA E KH N M I CH S EK I DI A S V M ID R A M R R V A N D A G A N D A r G A H A H H K Mr H E K M I C S E AM I D I C N D R A S {X B§{S>¶Z ~¢H$a A R V V N r GA M ID A N D R A H A G K Mr C HA E KH N M I CH S E I English & Hindi Monthly ID Volume XII Issue 4 A S Mumbai V V M ID R A November 2024A M Pages: 68 DR R G A N D A G A N A Price: ` 60 H r H A K H Mr C H E K N M I C S E I DI A S V M ID R A M R R V A N D A G A N D A r G A H A H H K Mr Early I C H Financial S E K Education N M V Minds MI D I C A S E I D R A To Shape Young V D R A M D R G A N A G N A r A K H Mr C HA E KH N M I CH S E I DI A S V M ID R A M R R V A ND A G A N D A r G A H A H H K Mr C H E K N M I C S E I D I A S V M ID R A M R R V A N D A G A N D A r G A H A H H K Mr C H E K N M I C S E D I A S V I D R A M I R V A M D A N D A R r G A N H A G Mr C HA E KH N M I CH S EK IDI A S V M ID R A M R R V A N D A G A N D A r G A H A H H K Mr C H E K N M I C S E I DI A S V M ID R A R V D G AM N D A R r GA A N H A HA KH CH K Mr C E N M I S E DI A S V I D R A M I R V A M D G A N D A R r G A N Mr H A K H M CH C S E N ID I I DI R A V V M A M D R G A r G A N H A M r M C H E K N D I A S V M I R V A D R rG AN HA  I DI RA D R V V M I M N RA A G A A ND r G A H Mr C HA E KH N M I CH S EK DI S ID DASHBOARD I A V M R A M R Dashboard R V A N D A G A N D A r G A H A H H K Mr H E K 1. Banking and Money: All Scheduled Commercial Banks C N M I C S E (` Crore) I S ID A Outstanding as on % Variation Over I D A V V M R End March R GA D Sept 20, 2024 Sept 22, 2023 Last Month Last Year 22.03.2024 AM D R N A Aggregate Deposits 21,505,561 19,275,842 0.85 11.57 5.03 1. Demand G N A 2,498,380 r A 2,199,833 K H 2.14 13.57 2.23 Mr HA KH M CH 2. Time 19,007,181 17,076,009 0.68 11.31 5.41 Bank Credit C E 17,125,371 N I 15,151,319 S E 1.06 13.03 4.20 DI S ID 1. Food 19,926 18,865 -18.21 5.62 -13.67 2. Non-food I A V 17,105,445 M 15,132,454 R A 1.09 13.04 4.23 Cash in Hand M R R V86,246 A 94,141 N D A -10.41 -8.39 -3.56 D Balance with RBI 956,255 959,345 -0.41 -0.32 2.66 G Investments A N A 6,402,052 r G A 5,981,356 H 0.57 7.03 4.85 A H H K Mr M Money Supply as on 20.09.2024 22.09.2023 M3 (a+b+c+d) a. Currency with Public C H E K 25,878,742 N 3,392,284 I C 23,357,478 3,195,976 S E 0.68 -0.35 10.79 6.14 4.22 -0.77 b. Dem. Dep. with Banks I DI A S V 2,640,991 M ID 2,339,373 R A 2.03 12.89 2.09 V c. Time Dep. with Banks 19,751,382 17,749,388 0.68 11.28 5.40 A M d. Other Dep. with RBI D R R 94,085 G A 72,741 N D A 2.46 29.34 10.92 2. Price G A N H A r H A K H % Variation Over Mr M 2024 2023 Month Year WPI: 2011-12=100 (Sept 2024) CPI: 2012=100 (Sept 2024) C H E K 154.6 N 194.2 I C 151.8 184.1 S E 0.1 0.6 1.8 5.5 D I A S VTracking the Labour I D Market - New EPF R A I 3. Deployment of Gross Bank Credit by Major Sectors (` Crore) M R V M Ain FY24 (In Mn.) N 26.08.2022 25.08.2023 23.08.2024 Y-o-Y [2022-23] Y-o-Y [2023-24] D A N D A R % G Subscribers r % A H A G Gross Bank Credit 12,458,658 14,917,312 16,945,162 19.7 13.6 K Mr HA KH M CH E Non-food Credit 12,430,897 14,897,956 16,920,802 19.8 13.6 C E N I S DI S ID A Agriculture & 1,575,605 1,835,215 2,160,634 16.5 17.7 Allied Activities I A V V M R M R A D Industry 3,232,614 3,423,736 3,756,194 5.9 9.7 A [Micro/Small/Medium/Large] N D A R r G A N H A G Services 3,261,565 4,076,334 4,643,586 25.0 13.9 A H H K Mr M Personal Loans 3,740,499 4,876,136 5,555,484 30.4 13.9 4. Forex Reserves C H E K N As on I C A year ago S E ` in Crore I D I (Including Gold & SDR) A S V 11.10.2024 5,803,872 M ID 13.10.2023 4,878,276 R A M US $ Million R R V 690,430 A 585,895 N D A 5. A Bank Rate G N D A Percent r G A Effective H A H H K 1. Bank Rate 6.75 10.02.2023 Mr H K M C E 2. MCLR (Overnight) 8.15/8.45 23.08.2024 I C 6. Term Deposit Rate > 1 year (%) S E N Percent D I 2024-25 A S I D A Sep-20 V Sep-27 I Oct-04 M Oct-11 R Source: Business Standard M 6.00/7.25 R R V 6.00/7.25 6.00/7.25 A N D 6.00/7.25 A G A Jul-24 N D 7. Exports, Imports & Trade Balance Aug-24 A r Sep-24 G (` Million) %Jul-Aug A %Aug-Sept H Mr HA KH M CH EK Trade Balance -1,974,008.90 -2,486,239.30 -1,741,628.20 -25.95 29.95 S Exports 2,830,199.60 2,911,930.10 2,898,267.70 2.89 -0.47 Imports C 4,804,208.50 E 5,398,169.40 S N 4,639,895.90 I 12.36 ID -14.05 8. Ratios IDI R A V V M R Percent D A Date 1. CRR A M D R G A N 4.50 A w.e.f. 21.05.2022 N A r A H 2. SLR 18.00 w.e.f. 17.04.2020 G A H H K Mr M 3. Repo Rate 6.50 w.e.f. 08.02.2023 C H 4. Fixed Reverse Repo Rate E 5. Marginal Standing Facility (MSF) RateK N I C 3.35 6.75 S E w.e.f. 22.05.2020 w.e.f. 08.02.2023 6. Cash Dep. Ratio I DI A S V M ID 4.95 R A as on 04.10.2024 V 7. Investment Dep. Ratio 29.26 as on 04.10.2024 AM 8. Credit Dep. Ratio DR R GA D 77.04 N A as on 04.10.2024 G N A 9. Index of Industrial Production - as on 11.10.2024 - 6.42% r A K H Mr HA KH M CH E Mining Manufacturing Electricity General Growth Apr - July C S E N D I 4.8 S 3.6 7.1 4.2 DI V I A Growth over corresponding period of the previous year (July) -4.3 1.0 -3.7 -0.1 10. Capital Markets M I R A V A M D R (` Billion) D R N Jun-24 Jul-24 Aug-24 Sep-24 G Capital Issue A N A r G A864.2 1,067.3 901.9 1,075.6 Mr Public Issue Rights Issue H A K H M C H 46.8 11.2 49.0 28.6 251.6 33.8 329.5 8.5 Private Placements C S E N ID I 806.3 989.8 616.5 737.6 DI V Call Money rates (Weighted Average) as on 11.10.2024 - 6.42% I R A V 11. Prime Rates / Policy Rates as on Sept/Oct 24 (% p.a) M A M G A US 8.00 N D CANADA 6.45 A RECB 3.25 r G JAPAN 1.75 SWISS 1.25 BRITAIN 5.00 HONG KONG 5.63 M r H A K H M (As lending practices vary widely by location, these rates are not comparable) C E N Sources: 1,2,4,5,6,8 - RBI Weekly Supplement; 3 - RBI; 7,10 - CMIE; 9 - MOSPI; 11 - Different Central Banks; Asian Wall Street Journal I S I D A V V 2 A M The Indian Banker D R R Vol XII No. 4 - November 2024 rG AN HA  I DI RA V V M I D R M R A N A G A ND A r G A H Mr C HA E KH N M I CH S EK I S ID EDITOR’S NOTE I D Indian Banks’ Association A V M R A Head Office: M R R V A N D A G A Stadium House, Block-3, 6 Floor, N th D A r G A H VeerrNariman Road, Mumbai 400A KH M C H E K M+ 91-22-69515169 CH 020, India. Tel E N I S I D I A S V M ID R A R V D G M ACentre, Editorial Office: N D A R r GA A N H A KH CH K Mr Mumbai 400 005,CIndia.HA M th E World Trade Centre 1, 6 Floor, Cuffe Parade, E N I S I DI A SEditor’s Note V M ID R A Tel : + 91-22-69234018 M R R V A N D A G A N D A r G A H r [email protected], Website: iba.org.in, H A theindianbanker.co.in K H M C H E K M e-mail: C E N I S DI [email protected] I A S V M ID R A M R R V A N D A G A N D A r G A H A H H K Mr H K literacy is a basicN Mwhich everyone, regardless C of the amount E Dy Chief Executive & Editor Gopal I C S E Financial life skill D I A S ID of money he has or V earns, needs I to learn to effectively A finances – allocatingVfunds to necessary expenses, manage his personal savings and pleasureR Minvestments, A M D R R G A N D A G N activities. It A also involves understanding r debt, A contingency K H IBArCommunication HA H Nirooj Fidin arguesMthat the lack of adequate CHfinancial literacy SE Department planning for unforeseen expenses and retirement planning. In the cover story MN Mishra C E Kissue, of this N I B DI A Shas contributed significantlyV D financial mishaps Iimparting to many of the well-known R A Senior Advisor M I worldwide. He examines V R education at aRyoung age and suggestsG various reasons A for M not personalD finance Senior ViceA Sangeeta Shenwai N D A r that there is a fit case for N A integrating H A G r Sharma President A Hthe causes of operational M risk and mitigation C H adopted by EK M Rabinshu C H E K financial discusses literacy into school N curricula. In another article, I Rupinder approaches Kaur Sodhi S I SIndian banks to ensureV their stability and growthID and secure the trust andA Manager M ID R A confidence of theirVcustomers. A M D R A N D A R r G A N H A G A H H K Mr Media, M Cfocus on the benefitsSE Advertising C H In E the K companies in the financial area of technology, Neha N Upadhyaya analyses I the growing role of Finsight D I A SFintech D sector, with a special V In the Hindi section, I Prakash SrivastavaRrevisits A I [email protected] M R V and challenges they bring. A M Vijay D G A Subscriptions N D the credit card A R business of banks as r a G part of their digital banking A NSanjay Kumar HA bouquet, Mr BankRates HA 3 years legal compares looksK Hthe issues and opportunities into it with debit cards, and outlines H in India. In the EK its future course while M associated with C Fintech I S Subscription 1 Year Member Employees*C` 400 ` 1,000 I S E N I D A Other Individuals / D I area, offences Anil A and control asymmetry and Kumar V penalties VBansal under presents IBC 2016, the extant M enacted provisions to address relating to the R information Institutions M A D- ` 600 ` 1,500 R R between the G A creditor and debtor during N the Dcorporate A G A N insolvency A resolution process. In ther other articles of this issue, Ha comprehensive reviewMof the challenges facedCbyHthe Indian A K H Mr Overseas subscriptions US$150 Sanjay Nafde C H E K presents * A certificate from the appropriate authority confirming the N initiatives to address I S E status should be enclosed. I D I A SMahangare V agriculture sector and government M IDis critical them, while VikasA R M R Printed and published by Gopal on behalf of Indian explainsV why R economy. embracing green A banking D in developing N A A N D Banks’ Association, printed at M/S Printrade Issue G A a climate-resilient r G A H HA KH CH K Mr M (India) Pvt. Ltd., Unit No. 10 Pragati Industrial Estate, C 316, N. M. Joshi Marg, Lower Parel, Mumbai-400 011 E N I S E DI S and published at Indian Banks’ Association, Stadium A V I D R A M I House, Block-3, 6th Floor, R V A M D D R N Veer Nariman Road, Mumbai 400 020. G A Editor: Gopal N A r G A Mr H A Gopal K H M C H C S E N ID I DI The views expressed in The Indian Banker are not necessarily I A the views of the Indian Banks’ Association or the V V M A M bank/institution to which the author belongs. D R R G A r G Finsight Media Pvt Ltd A N Design, Content and Marketing Support by H A M r M C H E K N D I A S V M I Vol XII No. 4 - November 2024 R V The Indian Banker 3 G A N D A R r A H  I DI RA V V M I D R M R A N A G A ND A r G A H Mr C HA E KH N M I CH S EK I DI A S V M ID R A M R R V A N D A G A N D A r G A COVER STORY H A H H K Mr C H E K N M I C S E I D I A S V M ID R A R V D G AM N D A R r GA A N H A HA KH CH K Mr C E N M I S E I DI A S V M ID R A M Vision DR R V A N D A G A N A r G A H Tor work proactivelyHfor A the growth ofKaH M C H E K M C E N I S IDI and forward healthy, professional A S looking, V M ID R A M R R V A N D A banking G A N and financial services D industry, in a A r G A H r H A K H M C H E K Mmanner C E N I S I consistent D with public good. A S V I D R A M I R V A M D A N D A R r G A N H A G K Mr Office C A HBearers E KH N M I CH S E I DI A S V M ID R A M R R V A ND A Chairman G A N D A r G A H r Venkata Rao HA K H M C H E K MMatam C E N I S I D I A S V M ID R A M Deputy Chairmen R R V COVER STORY A N D A G A N D A r G A H C S Setty r Lal Jain H A K H M C H E K MShanti C E N I S Dr N Kamakodi D I A S Early V Financial I D R A M I R V A M D 12 Honorary A Secretary N D A R r G A N H A G r Nair MMadhav C HA E KH Education N M I CH S EK Members ID I A S To Shape V V Young Minds MID R A M D R R A N D A A K Goel A G -Nirooj Fidin r G N AZarin Daruwala KH Srikrishnan H S A M r H A K H AMManimekhalai H C Gaurav Gupta S E N I C S E Swarup Kumar Saha I I D A ARTICLEV M ID R A R V D AM Raju D ROperational GA N 20 A Ajay Kumar Srivastava Ashu Khullar G N A r A K H Mr Karnatak CHAAjay Kanwal EKH M CH K Satyanarayana Kaku Nakhate Rajneesh N I S E Ashwani Kumar D I Vinod G Dadlani S A Risk V Management I D R A M I ApekshitaR V A M D A Devadatta Chand D Thipsay R G N G r Saxena Nidhu M H N AHarsha Daljit Singh Dogra K H Strategies A M r CH A Rakesh Sharma I C Rajkiran RaiAG S Bangari E For India's N ID I Sandeep BakhshiID V V Financial Sector M M VR A - Rupinder Kaur Sodhi B RameshA G Babu Shaji K N D A R r G r R Subramaniakumar M H A K H M I C S E N I D A V V 4 A M The Indian Banker D R R Vol XII No. 4 - November 2024 rG AN HA  I DI RA V V M I D R M R A N A G A ND A r G A H Mr C HA E KH N M I CH S EK DI A S Contents V ID R A M I R V A M D A N D A R r G A N H A G A H H K Mr C H E K NEWSROOM N M I C S7E I D I A S V M ID R A R V D G AM N D A R r GA A N H A HA KH CH K Mr C EARTICLE N M I S E I DI A S Challenges Before ID Sector V the Indian Agriculture M R A28 M R R V A N D A G A N D - Sanjay Nafde A r G A H A H H K Mr C H E K N M I C S E IDI A S V M ID R A M R R V A N D A G A N D ARTICLE A Embracing Green Banking r G A H A H H K Mr 36 H KDevelop a Climate-Resilient M Economy C E I C S ETo N D I A S I D A - Vikas Mahangare V M I R M R R V A N D A G A N D A r G A H HA KH CH K Mr C E N M I S E I DI A S ARTICLE V M ID R A M R GrowingR V A N D 46 A G A N D A r G Role of Fintech Companies A H A H and challenges M H K Mr Issues C H E K I C S E D I A S - Neha Upadhyaya V N ID R A M I R V A M D A N D A R r G A N H A G A H H K Mr C H E K N M I C S E D I A S LEGAL V I D R A54 M I R IBC 2016 V M Aand Penalties N D A N D Provisions A R G Relating to Offences r A H A G Mr C HA E - AnilH K Kumar Bansal N M I CH S EK I DI A S V M ID R A M R R V A N D A GA N D boI A r G A H A HoH$ H K Mr C H E K {’$ZQ> M I C 60 E S DI A S MwZm¡{V`m± Ed§ Adga V N ID R A I R V M D AM GA - S>m°. g§O` Hw$‘ma N D A R r A N H A G K Mr C HA E KH N M I CH S E DI A S V I D R A M I R V A M D G A N D bo I A R r G A N Mr H A {S>{OQ> K Hb ~¢{H§$J H$m ‘hËdnyU© A§MJ C H 64 C E S - {dO` àH$me lrdmñVd V N ID I DI H«o${S>Q> H$mS©> ì`dgm` M I R A V A M G A N D A R r G M r H A K H M I C S E N I D A V V A M D R Vol XII No. 4 - November 2024 R The Indian Banker 5 r G A N H A  I DI RA V V M I D R M R A N A G A ND A r G A H Mr C HA E KH N M I CH S EK I DI A S V M ID R A M R R V A N D A G A N D A r G A H A H COMMITTEE M H K Mr C H E K EDITORIAL N I C S E I D I A S V M ID R A R V D G AM N D A R r GA A N H A HA KH CH K Mr C E N M I S E I DI A S V M ID R A M Jha R R V A N D A G A N D A r G A H Ambikanand Manager HA Dr Rajib K Sahoo HGeneral Manager M Shailesh Kumar H Malviya K Mr GeneralUCO Bank C E KCanara Deputy N FormerC I DGM S E IDI A S Bank V M ID Bank of India R A M R R V A N D A G A N D A r G A H A H H K Mr C H E K N M I C S E D I A S V I D R A M I R V A M D A N D A R r G A N H A G K Mr C HA E KH N M I CH S E I DIBhool A S Sibi P M V V M ID Kumar Pandey RA A M DGM Pradeep Kumar D R Former R G A Former DGM ND Aravind A G Former A N A DGM HIndian Bank r H A K H Mr K M C E State Bank of India South State Bank of India C H E N I S I D I A S V M ID R A M R R V A N D A G A N D A r G A H A H H K Mr C H E K N M I C S E D I A S V I D R A M I R V A M D A N D A R r G A N H A G H H K Mr Jayasree MenonCHA E K N M I C S E Senior ViceID I A SDrChief Economist V Rashmi Tripathi I DrDFormer Sulabha Kore R A President M Association DR V M AGM A Union Bank of India D A Indian Banks’ N R Canara Bank A r G A N H A G A H H K Mr C H E K N M I C S E I D I A S V M ID R A R V D G AM N D A R r GA A N H A HA KH CH K Mr C E N M I S E DI A S V I D R A M I R V A M D A N D A R r G A N r G Diwakar HA Manish Kumar KH MUday M C H Former AGMDI C AGMS E N Sharad Kumar I D I Hari Misra I ABank V VState Bank of India AM Finsight Media Former AGM Managing Director A M Bank of Baroda R Indian D R G G A N H A r Mr C H E K N M DI A S V 6 M I The Indian Banker R V Vol XII No. 4 - November 2024 G A N D A R r A H  I DI RA V V M I D R M R A N A G A ND A r G A H Mr C HA E KH N M I CH S EK DI S ID NEWSROOM I A V M R A M R V A D A Newsroom G A N D A R r G A N H A H H K Mr C H E K M in the long run. AsCcompetition I N intensifies inIDthe lending space, banksA S E D I A S V R M I R V A may also Mexplore innovative products D A N D A R r Gservices that cater toAshifting N H A G and K Mr C HA E KH N M expected consumer needs. While I CHbenefit all banks are from the S E DI A S V D the timing and RA to ultimately Fed’s easingIcycle, M I R V M A of that shift are N D A N D A R r magnitude G A unknown, H A G A H based on both the rate environment H how K Mr C H E K M and the interplay between N sensitive a bank’s I C S E DI A S V I Drates.assets and liabilities R A M I R V A M are to falling D A N D A R r G A N H A G A H H K Mr The Federal Reserve's recent rate H K M cuts represent a pivotal C anmoment E E I uncertain A S for I C S V N banks as theyD I navigate I D R A V M D R A M D R A economic environment. By enhancing G these cuts provideA a crucial N A G N