The Banking & Financial Updates April 2024 PDF

April 1, 2024 67 The Banking & Financial Updates April 2024 The Banking Updates Platform for Banking Studies Volume 05 Issue 04 April 2024 CONTENTS Topic Page RBI Guidelines 02 Govt./Regulators Corner 06 Business, Finance & Economy Partnership/New Products 09 Outlook 10 New Appointments 10 Current Affairs (Developmental aspects) 10 Banking Subject updates 13 Important MCQs 17 Recalled Questions 18 BENCHMARK POLICY RATES Rate Last Change Repo Rate 08.02.2023 SDF Rate 08.02.2023 MSF 08.02.2023 Bank Rate 08.02.2023 Fixed Reverse Repo Rate CRR 11.04.2020 SLR 11.04.2020 RESERVES POSITION Total reserves (as on 22.03.2024) Foreign Currency Assets (as on 22.03.2024) Gold (as on 22.03.2024) US$ Aggregate deposits (as on 08.03.2024) Rs.204.20 Outstanding Bank credit Rs.163.13 (as on 08.03.2024) THE BANKING FRONTLINE (Daily Banking April 1, 2024 Click here for daily updates (Send request Click here to join us on Telegram The Banking & Financial Updates April 2024 RBI GUIDELINES CARD ISSUERS SHALL PROVIDE AN OPTION TO THEIR CUSTOMERS TO CHOOSE FROM MULTIPLE CARD NETWORKS: At present, the authorized card networks tie-up with banks / non-banks for issuance of credit cards and the choice of network for a card issued to a customer is decided by the card issuer (bank / non- bank) and is linked to the arrangements that the card issuers have with card networks and it is observed that some arrangements existing between card networks and card issuers are not conducive to the availability of choice for customers. On this matter, RBI vide its th notification dated 6 March 2024 has directed that;  Card issuers shall not enter into any arrangement or agreement with card networks that restrain them from availing the services of other card networks.  Card issuers shall provide an option to their eligible customers to choose from multiple card networks at the time of issue. For existing cardholders, this option may be provided at the time of the next renewal. (Shall not be applicable to credit card issuers with number of active cards issued by them being 10 lakh or less in number.) The directions shall be effective six months from the date of this circular. AMENDMENTS IN CREDIT CARD & DEBIT CARD ISSUANCE AND CONDUCT DIRECTIONS 2022: RBI th vide notification dated 7 March 2024, notified the following major amendments on ‗Credit Card and Debit Card – Issuance and Conduct Directions;  Card-issuers may issue business credit cards to business entities/individuals for business However, in such cases, the card-issuers place an effective mechanism to monitor funds.  Any request for closure of a credit card honoured within seven working days by the credit card-issuer, subject to payment of all dues cardholder. Failure on the part of the card-issuers complete the process of closure within seven days shall result in a penalty of ₹500 day of delay payable to the cardholder, of the account provided there is no outstanding account.  Card-issuers do not follow a standard all credit cards issued. In order to provide this regard, cardholders shall be provided option (earlier it was a one-time option) to modify cycle of the credit card at least once, cardholders‘ convenience.  No bank shall issue debit cards to cash accounts. However, it will not preclude the banks from linking the overdraft facility provided along with Pradhan Mantri Jan Dhan Yojana accounts or Kisan Credit Card accounts with a debit card.  The co-branding partner (CBP) shall not have access April 1, 2024 to information relating to transactions through the co-branded card. Post issuance of the card, the CBP shall not be involved in any of the processes or the controls relating to the co-branded card except for being the initial point of contact in case of grievances. However, for the purpose of cardholder‘s convenience, card transaction related data may be drawn directly from the card-issuer‘s The Banking & Financial Updates April 2024 separate set of scrolls, one pertaining to March 2024 residual transactions and another for April transactions during the first 10 days of April 2024. CUT-OFF TIME FOR UPLOADING OF GST, ICEGATE AND TIN 2.0 LUGGAGE FILES: After the operationalization of NEFT 24X7 and RTGS 24X7, agency banks authorised to collect Goods and Service Tax (GST), Custom and Central Excise Duties (ICEGATE) and Direct Taxes under TIN 2.0 channel shall upload their luggage files in RBI‘s QPX/e-Kuber on all days except the Global holidays, which are January 26, August 15, October 2, all non-working Saturdays, all Sundays and any other day declared holiday by RBI for Government Transactions due to exigencies. It is to be ensured that these luggage files are uploaded in RBI‘s QPX/e-Kuber on or before 1800 hours prescribed by O/o Principal Chief Controller of Accounts, Central Board of Indirect Taxes & Customs and O/o Principal Chief Controller of Accounts, Central Board of Direct Taxes. No extension in cut-off time will be allowed to agency banks by RBI beyond 1800 hours for uploading of these luggage files in QPX/e-Kuber‖. OMNIBUS FRAMEWORK FOR RECOGNISING SELF- REGULATORY ORGANISATIONS (SROS) FOR REGULATED ENTITIES (RES) OF THE RESERVE BANK OF INDIA: Self-Regulatory Organisations (SROs) enhance the effectiveness of regulations by drawing upon the technical expertise of practitioners and also aid in framing/ fine-tuning regulatory policies and also help in fostering innovation, transparency, fair competition, and consumer protection and shall complement the extant regulatory/ statutory framework for better compliance. In deliverance of this role, the SRO shall frame necessary best practices/ standards/ codes within the regulatory framework prescribed by RBI for voluntary adoption by its members and these shall not be a substitute to the prescribed regulatory framework for REs. As announced in the Statement on Developmental and Regulatory Policies dated October 06, 2023, RBI has issued an omnibus framework for recognizing SROs for the REs of the Reserve Bank.Existing SROs already recognized by the Reserve Bank shall continue to be governed by the terms and conditions under which they were recognized, unless this framework is specifically extended to such SROs. CHARACTERISTICS OF AN SRO: An SRO is expected to operate under the oversight of the regulator, and should have the following characteristics:  Sufficient authority which is derived from membership agreements to set ethical, professional and governance standards and enforce these standards on the members.  Objective, well-defined and consultative processes to make rules relating to conduct of its members.  Develop standards for improving compliance culture and adherence to the rules and regulations framed by the Reserve Bank.  Devise and implement standardized procedures for April 1, 2024 handling disputes among members.  Suitable surveillance methods for effective monitoring of the sector. OBJECTIVES OF THE SRO: An SRO is expected to achieve the following objectives::  Promote a culture of compliance among its members by encouraging progressive practices and The Banking & Financial Updates April 2024 Companies Act, 2013. The applicant must have adequate net-worth as specified, wherever necessary, at the time of inviting applications and should possess or have the ability to create infrastructure to enable it to discharge responsibilities of an SRO on a continuing basis. No entity shall hold 10% or more of its paid-up share capital, either singly or acting in concert.  The applicant must represent the sector and have the specified membership or should have submitted roadmap for attaining specified membership within a reasonable timeline.  The applicant and its directors must have professional competence and have general reputation of fairness and integrity to be established to the satisfaction of the Reserve Bank.  The applicant must be fit and proper for the grant of recognition as an SRO, in all other respects The minimum membership that may be prescribed by the Reserve Bank shall be attained ideally at the time of making an application or within a maximum period of two years, from the date of grant of recognition. The membership of SRO shall be voluntary for the members. GOVERNANCE FRAMEWORK OF THE SRO: The SRO shall abide by the following guidelines:  The SRO shall be professionally managed and have a suitable provision in their Articles of Association (AoA)/ bye-laws to ensure this.  The Directors shall fulfil the 'fit framed by the Board of the SRO on an ongoing basis and have relevant expertise/ experience and be persons of high integrity. At least one-third of members in the Board of Directors including the chairperson shall be independent and without any active association with the category/ class of REs for which the SRO is established. RBI REASSIGNED THE LEAD RESPONSIBILITY IN 6 DISTRICTS: RBI vide its notification dated 22 March 2024 has informed about reassignment of Lead Bank Responsibility in following districts across the country to be effective from April 01, 2024. State District Existing Lead Lead Bank Bank y assigned to Kerala Ernakulum Union Bank of State Bank India of India Kerala Idukki Union Bank of State Bank India of India Madhya Seoni Central Bank Pradesh of India Maharastra Mumbai Bank of India Bank City Baroda Maharastra Mumbai Bank of India Bank Suburban Baroda Tamilnadu Salem Indian Bank State Bank of India RATE OF INTEREST ON GOVERNMENT OF INDIA April 1, 2024 FLOATING RATE BOND 2033: The rate of interest on Government of India Floating Rate Bond 2033 (GOI FRB 2033) applicable for the half year March 22, 2024 to September 21, 2024 shall be 8.34 percent per annum. It may be recalled that FRB 2033 carries a coupon, which has a base rate equivalent to the average of the Weighted Average Yield (WAY) of last The Banking & Financial Updates April 2024 RBI SAYS MORE THAN 97% OF 2,000-RUPEE NOTES RETURNED SINCE MAY 2023: RBI announced that over 97% of India's highest- denomination 2,000-rupee currency notes, which were withdrawn from circulation in May 2023, have been returned. The total value of 2,000 rupee banknotes in circulation, which stood at 3.56 lakh crore rupees as on May 19, 2023, when the withdrawal of India's highest currency note was announced, has now decreased to 8,470 crore rupees as of February 29, 2024, the RBI said in a statement. INTEROPERABILITY OF INTERNET BANKING SYSTEM IN 2024: RBI GOVERNER: RBI is working to allow interoperability for internet banking transactions which is expected to be operational in 2024 and will facilitate quicker settlement of funds for merchants, Governor Shaktikanta Das said. The move is aimed at addressing delays in the actual receipt of payments by merchants and is a part of the regulator‘s payment vision 2025. The RBI has approved implementing such a system for NPCI Bharat BillPay Ltd (NBBL). The new system will facilitate quicker settlement of funds for merchants,‖ 30 BANKS JOIN RBI UDGAM PORTAL FOR UNCLAIMED DEPOSITS: The Reserve Bank said 30 banks are facilitating people to search their unclaimed deposits/accounts through UDGAM portal, and the remaining banks are in the process of getting on- boarded. UDGAM -- Unclaimed Deposits-Gateway to Access Information -- is an online portal developed by RBI. It facilitates the registered users to search unclaimed deposits/accounts across multiple banks in one place in a centralised manner. "As on March 4, 2024, there are 30 banks, which are part of UDGAM portal, and they cover around 90 per cent of unclaimed deposits (in value terms) in DEA Fund of RBI," the central bank said. RBI MPC MEETING SCHEDULE FOR FY25 RELEASED: The Reserve Bank of India (RBI) on March 27 announced the meeting schedule of the Monetary Policy Committee (MPC) for financial year 2025. As per the RBI Act, the MPC must meet a minimum of four times in a year, with the meeting schedule for a year to be published by the central bank at least one week before the first meeting for that year. Next week, the six- member Monetary Policy Committee (MPC) of the RBI will meet on April 3-5. After that, the MPC will meet on June 5-7, August 6-8, October 7-9, December 4-6, and February 5-7, the RBI said in a statement on March 27. RBI MODIFIES NORMS FOR INVESTMENT IN ALTERNATIVE INVESTMENT FUNDS (AIFs) BY REGULATED ENTITIES: Vide notification dated December 19, 2023 instructions were issued by RBI to address certain regulatory concerns relating to investment by regulated entities (REs) in the AIFs. Based on representation received from stakeholders, RBI has made following modifications to the earlier instructions; April 1, 2024 Existing guidelines Modifications In order to address concerns Downstream relating to possible investments evergreening through this exclude investments in route, it is advised that, REs equity shares of the shall not make investments debtor company of the in any scheme of AIFs which RE, but shall include The Banking & Financial Updates April 2024 rate rupee loans of SCBs was 56.2 per cent at end- December 2023.  The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of SCBs increased to 6.44 per cent in February 2024 from 6.43 per cent in January.  The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of SCBs was at 6.86 per cent in February 2024 (6.84 per cent in January). HIGHLIGHTS OF DATA ON SECTORAL DEPLOYMENT OF BANK CREDIT (FEBRUARY 2024): Based on sectoral deployment of bank credit for the month of February 20241 collected from 41 select scheduled commercial banks, accounting for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks, RBI released the following figures;  Non-food bank credit registered a growth of 16.5 % in February 2024 as compared with 15.9 % a year ago.  Credit growth to agriculture and allied activities remained at 20.1 % YoY in February 2024 (15.0 % a year ago).  Credit to industry grew by 8.6 % YoY in February 2024 as compared with 6.8 %in February 2023.  Credit to services sector grew by 21.2 %YoY in February 2024 (20.5 % a year ago).  Personal loans growth moderated to 18.1 % YoY in February 2024 (20.6 % a year ago) due to decelerated growth in vehicle loans and other personal loans. GOVT. / REGULATORS CORNER GOVT. LAUNCHES NUCFDC, SETS TARGET TO ESTABLISH ONE URBAN COOPERATIVE BANK IN EACH TOWN: Cooperation Minister Amit Shah launched the National Urban Cooperative Finance and Development Corporation (NUCFDC) in New Delhi and asked the umbrella body to set up one urban cooperative bank in each town. He also said urban cooperative banks should upgrade themselves to provide ATM facility, credit/debit cards, clearing system, and maintain SLR (statutory liquidity ratio) limit and refinancing. NUCFDC has received the RBI approval to function as a non-banking finance company and a self- regulatory organisation for the urban cooperative banking sector. FARMERS‟ ENROLMENT IN FASAL BIMA SCHEME RISES 27% IN 2023-24: The government said there was a 27 per cent increase in farmers enrolled under the flagship crop insurance scheme PMFBY and the share of non-loanee farmers was 42 per cent in the total enrollment during 2023-24. However, the increase this year has been attributed by Maharashtra and Odisha‘s decision to completely bear the farmers‘ share of premium. ―During the past eight years of implementation of the Pradhan Mantri Fasal Bima Yojana (PMFBY), April 1, 2024 56.80 crore farmer applications have been enrolled and over 23.22 crore farmer applicants received claims,‖ the agriculture ministry said in a statement. INTEREST RATES ON SMALL SAVING SCHEMES TO REMAIN UNCHANGED IN APRIL-JUNE QUARTERT: There will be no change in interest rates of small saving schemes such as PPF and Sukanya The Banking & Financial Updates April 2024 CAPPING OF INTEREST SUBSIDY FOR EXPORTERS TO CONTINUE IN Q1 OF NEW FISCAL: The Centre has notified an interest subsidy cap of ₹2.5 crore for individual export units in the first quarter of the forthcoming fiscal 2024-25 under the popular interest equalisation scheme (IES) for identified sectors and MSMEs. The DGFT issued a notification clarifying that a cap of ₹2.50 crore per IEC is imposed till June 30, 2024, for the quarter starting from April 1, 2024. ―Last May, the government introduced a cap of ₹10 crore per importer exporter code (IEC) on the annual net subvention amount. The rates of subsidy were at 3 per cent for MSME sectors and 2 per cent for the rest. SEBI DIRECTS AMFI TO STOP INFLOWS INTO OVERSEAS SCHEMES OF MFs FROM APRIL 1: Capital market regulator SEBI has directed the Association of Mutual Funds to stop inflows into overseas exchange traded funds from April 1 as it is approaching the overall limit of $1 billion set by the RBI. In January 2022, SEBI stopped mutual fund houses from taking fresh subscriptions in schemes investing in overseas stocks. IRDAI ISSUES SERIES OF REGULATIONS, TWEAKS REGULATION ON SURRENDER CHARGES: IRDAI (Insurance Products) Regulations, 2024 merge six regulations into a unified framework aimed at enabling insurers to swiftly respond to evolving market enhancing the ease of conducting business, and boosting insurance penetration. These regulations, which will be effective April 1, 2024 are nutshell.  The surrender value is expected to remain the same or even lower if policies are surrendered within three years of the purchase. For policies that have been surrendered from the fourth to the seventh year, the surrender value may see a minor increase.  The IRDAI (Rural, Social Sector, and Motor Third Party Obligations) Regulations, 2024 consolidate 2 erstwhile regulations pertaining to minimum business obligations in rural, social sector and business for insurers, as mandated under the Insurance Act, 1938.  Compliance and measurement of these statutory obligations have been revised where the unit of measurement under the rural obligations Gram Panchayat. The scope of social sector has been extended to cover cardholders and under various schemes.  Under the Motor Third Party Obligations, the unit of measurement will be the renewal of insurance coverage to goods-carrying vehicles, passenger- carrying vehicles and tractors.  Besides, the IRDAI (Registration and Operations of Foreign Reinsurers Branches & Lloyd's India) Regulations, 2024 consolidate two regulations and aims to foster the systematic development of the reinsurance sector in India by promoting orderly growth and harmonizing the existing legal and April 1, 2024 regulatory framework.  The IRDAI (Protection of Policyholders' Allied Matters of Insurers) Regulations, 2024 consolidate eight regulations into a unified focusing on several key objectives aimed fair treatment of prospects during solicitation and sale of insurance policies and protecting the interests of The Banking & Financial Updates April 2024 payments have regularised, but lenders are looking at building buffers anticipating some stress, said CareEdge Ratings. Bad loans fell 21% in the last calendar to Rs 4.85 lakh crore, from a year earlier. The ratio of gross bad loans could improve to 2.8% this year from 2.9% last year. Write-offs stood at Rs 34,000 crore from Rs 29,000 crore in the December quarter last year. BLOOMBERG TO INCLUDE INDIA'S FAR BONDS IN EM LOCAL CURRENCY GOVT INDEX: Bloomberg, the global financial information and Technology Company, has made a significant announcement regarding the inclusion of India's Fully Accessible Route (FAR) bonds in the Bloomberg Emerging Market (EM) Local Currency Government Index and related indices. This decision will be phased in over a ten-month period, commencing from January 31, 2025. Indian FAR bonds will initially be incorporated into the Bloomberg EM Local Currency Government indices with a weight equivalent to 10 per cent of their full market value as of January 31, 2025. Over the following ten months, the weight of FAR bonds will progressively increase in increments of 10 per cent of their full market value each month. They will be weighted at their full market value in the indices in October 2025. SIDBI GETS $24.5 MILLION FROM GREEN CLIMATE FUND FOR ITS AVAANA SUSTAINABILITY FUND: Small Industries Development Bank of India (Sidbi) has received $24.5 million from Green Climate Fund (GCF) for its maiden anchored project `Avaana Sustainability Fund (ASF)' valued at $120 million. GCF, a pivotal component of the historic Paris Agreement, is the world's largest climate fund. The ASF project‘s primary objective is to invest in early-stage companies leveraging technology-led innovation to drive climate solutions and sustainability in India. RBI BARS FEDERAL BANK, SOUTH INDIAN BANK FROM ISSUING CO-BRANDED CREDIT CARDS: Reserve Bank of India has issued notices to Federal Bank and South Indian Bank to stop issuing new co- branded cards. Both the banks said they will continue to offer credit cards to new and existing customers in the non-co-branded segment and will also continue to service existing co-branded cardholders. SBI PARTNERS WITH Paytm AS THE FOURTH BANK FOR ITS UPI BUSINESS: State Bank of India has partnered with One97 Communications, which runs Paytm brand and app, for its consumer UPI payments. Paytm's UPI was powered by Paytm Payments Bank Limited (PPBL) and since the RBI's action, the mobile payments company has been forced to seek bank partnerships to become a third party application provider (TPAP), much like its larger competitors PhonePe and Google Pay. Paytm had partnered with Axis Bank, Yes Bank and HDFC Bank for TPAP partnerships earlier. For most large UPI players, the regulatory body National Payments Corporation of India insists that they should have at least three bank partners. 22,217 ELECTORAL BONDS PURCHASED AND April 1, 2024 22,030 REDEEMED: SBI TELLS SC: SBI informed the Supreme Court that 22,217 electoral bonds were sold between April 1, 2019 and February 15, 2024. mentioned that of these, 22,030 bonds were redeemed during the said period. These details were part of the affidavit submitted by SBI Chairman Dinesh Kumar Khara in compliance with the apex court‘s directions on The Banking & Financial Updates April 2024 2024. With 271 billionaires, India now stands third globally in terms of billionaire count. The report unveils a total of 3,279 billionaires globally, with 167 additions in the past year. While China maintained its lead with 814 billionaires, India added nearly 100 new billionaires, while China saw a decline of 155. FTSE RUSSELL DEFERS INDIA‟S INCLUSION IN ITS EMERGING MARKETS GOVERNMENT BOND INDEX: FTSE Russell, a global index provider, has deferred the inclusion of India in its Emerging Markets Government Bond Index (EMGBI), noting that the country would stay in its watchlist as certain criteria for inclusion were still not met. ―India will remain on the FTSE (Fixed Income Country Classification Watch List) for the potential reclassification of its Market Accessibility Level from 0 to 1, and consideration for inclusion in the FTSE EMGBI‖, said FTSE Russell in its latest FTSE Fixed Income Country Classification Review. HSBC COMPLETES SALE OF CANADIAN UNIT TO ROYAL BANK OF CANADA: HSBC Holdings has completed the C$13.5 billion ($9.96 billion) sale of its Canadian unit, HSBC Bank Canada, to Royal Bank of Canada (RBC). RBC previously said the acquisition, which merges Canada‘s biggest and seventh-biggest lenders, will boost its domestic business as well as its position on the global stage. GOVT REIMPOSES ALMM ORDER ON SOLAR PV MODULES FROM APRIL 1: The Ministry of New and Renewable Energy (MNRE) has re-imposed the Approved List of Models and Manufacturers (ALMM) order for solar photovoltaic (PV) modules from April 1, 2024. In FY24, the ALMM was put on hold for the entire fiscal year to provide relief to solar PV manufacturers, who were faced with limited domestic availability. However in February 2024, the Ministry put the reimposition under abeyance ―till further orders‖. While re-imposing the order from April, the MNRE said ―Each project where the solar PV modules have been received at the project site by March 31, 2024 and is unable to get commissioned by that day, on account of reasons beyond the control of the renewable power developer, would be examined separately.‖ PARTNERSHIP/NEW PRODUCTS  NPCI International ties up with Greece‟s Eurobank for cross-border UPI payments.  State Bank of India is mulling to build its own Large Language Model (LLM) to leverage the data it possesses.  Info Edge-owned recruitment business Naukri and real estate business 99acres have been delisted from Google Play Store, as they have not complied with its app billing policy for an "extended However later, Google agreed to reinstate the apps after a government intervention got the two sides talking to resolve a dispute over service fee payments. April 1, 2024  Paytm and Paytm Payments Bank to discontinue inter-company pacts amid RBI action.  Flipkart unveils its UPI handle to boost India's digital evolution. Powered by Axis Bank, Flipkart UPI will initially be available for Android users. Customers can register for UPI with @fkaxis handle and can do fund transfers and checkout payments using the The Banking & Financial Updates April 2024  YES Bank partnered with the Indian Olympic Association (IOA) to become the Official Banking Partner for Team India at the Paris Olympics 2024.  Axis Mutual Fund partners with Enparadigm for AI- Generated Learning Program.  Life Insurance Corporation of India (LIC) retains its position as the strongest insurance brand worldwide, maintaining a stable brand value of Rs 816 billion as per the latest Brand Finance Insurance 100, 2024 report. With a Brand Strength Index score of 88.3 and an AAA brand strength rating.  SEBI cancels investment banking licence of Karvy Investor Services.  Kotak Mahindra Bank has acquired NBFC Sonata Finance Pvt Ltd for Rs 537 crore.  Axis Bank has announced the introduction of digital US dollar fixed deposits for NRI customers at the IFSC Banking Unit (IBU) at GIFT City, Gujarat becoming the first Bank to offer such product digitally.  Indian travellers in UAE can now make UPI payment using PhonePe at the NEOPAY terminals. OUTLOOK  India‘s unemployment rate dropped to 3.1 per cent in 2023 from 3.6 per cent in the preceding year, as per the latest employment-unemployment indicators report released by the National Statistical Office (NSO).  CRISIL raises India's GDP growth forecast to 6.8% from 6.4% for FY25.  Retail inflation dropped a tad to 4-month low of 5.09% in February 24 against the 5.1 per cent of January However, food inflation moved up cent in February (8.3 per cent in January).  India's index of industrial production (IIP) slowed down to 3.8 per cent in January 2024, according government data released on March 12.  The US consumer price index increased 3.2 percent in February from a year ago.  Global rating agency Fitch Ratings has raised India‘s growth forecast for the next financial year (FY25) to 7 per cent from 6.5 per cent estimated earlier.  India‘s manufacturing sector continued in February, as indicated by the HSBC Purchasing Managers‘ Index (PMI) reaching 56.9, marking highest level in five months.  The Purchasing Managers‘ Index for India‘s services sector dropped to 60.6 in February from January‘s six-month high of 61.8.  International Rating agency Moody‟s Upgrades India‘s GDP Growth Forecast To 6.8% for 2024.  India's current account deficit declined to $10.5 billion or 1.2 per cent of the GDP in October- December quarter from $11.4 billion in the previous three months and $16.8 billion a year back.  S&P Global raises India‘s growth forecast to 6.8% for FY25. April 1, 2024  Morgan Stanley raises India GDP growth 6.8% for FY25 on continued capex boost.  India's eight core sectors posted growth in February against 4.1% last month. 7.4 percent in February 2023. he index of Industries (ICI) measures the combined and performance of production of eight core The Banking & Financial Updates April 2024 GOVT. CUTS LPG CYLINDER PRICES BY ₹100 ON INTERNATIONAL WOMEN‟S DAY: Prime Minister Narendra Modi announced that the government has cut the price of liquefied natural gas (LPG) by ₹100 as a gift to women on International Women‘s Day. ―Ujjwala beneficiaries will now get LPG cylinders for only ₹503, & consumers will get them only for ₹803. Yet another compassionate decision by PM @narendramodi Ji! Is to continue the subsidy of ₹300 per cylinder to more than 10 crore #PMUjjwala beneficiaries for one more year, As of March 1, 2024, there are more than 10.27 crore PMUY beneficiaries. The total expenditure will be ₹12,000 crore for FY25. HOME MINISTRY NOTIFIES RULES IMPLEMENTATION OF CITIZENSHIP LAW CAA: The Centre has announced the implementation of the contentious Citizenship (Amendment) Act, 2019 for granting citizenship to undocumented non-Muslim migrants from Pakistan, Bangladesh and Afghanistan who came to India before December 31, 2014. With the CAA rules being issued, the Modi government will now start granting Indian nationality to persecuted non- Muslim migrants -- Hindus, Sikhs, Jains, Buddhists, Parsis and Christians -- from the three countries. The CAA was passed in December 2019 and subsequently got the president's assent but there were protests in several parts of the country against it. The law could not come into effect as rules had not been notified till now.These rules, called the Citizenship (Amendment) Rules, 2024 will enable the persons eligible under CAA- 2019 to apply for the grant of Indian citizenship. CENTRE REPLACES FAME WITH EMPS TO PROMOTE e2W, e3W, 4-WHEELERS KEPT OUT: The Centre announced a new scheme, the Electric Mobility Promotion Scheme (EMPS), 2024, to promote the sale of electric two-wheelers (e2W) and three-wheelers (e3W) in the country. Centre has allocated Rs 500 crore for the new scheme, which will be valid for four months from now. The upcoming scheme is set to debut on April 1, supplanting the current Faster Adoption and Manufacturing Electric Vehicles- Phase-II initiative. To address the increasing demand and alleviate the burden on EV makers, the government has lowered the maximum subsidy cap for e2W to Rs 10,000 per vehicle from the previous Rs 22,500, and for e3W to Rs 50,000 from Rs 111,505. Both categories of vehicles will receive an incentive of Rs 5,000 per kilowatt-hour (kWh). Despite the government offering incentives for the e2W and e3W categories, no such incentives granted to e4W and e-buses under the new scheme. The ministry of Heavy Industries (MHI) has an MoU IIT Roorkee to work together to encourage innovation and advance the automotive and electric vehicle (EV) sector. FinMin NOTIFIES 15 PC DUTY ON e-VEHICLE IMPORTS: The finance ministry notified the lower 15 per cent duty rate on the import of electronic vehicles (EV) of a minimum value of USD 35,000, subject to April 1, 2024 certain conditions, announced under the EV policy. Currently, EV imports attract 100 per cent Customs duty. The Heavy Industries Ministry had notified a 'Scheme to promote manufacturing of electric passenger cars in India', under which import duty concessions would be given to companies setting up manufacturing units with a minimum investment 500 million. The Banking & Financial Updates April 2024 GOVT'S GROSS LIABILITIES ROSE TO RS 160.69 LAKH CRORE AT DEC-END: The finance ministry reported a slight increase in the total gross liabilities of the government to Rs 160.69 lakh crore by December 2023 from Rs 157.84 lakh crore in September. Public debt comprised 90 percent of total gross liabilities during this period. The quarter saw fluctuations in Indian domestic bond yields, influenced by factors like declining crude oil prices, lower-than-expected domestic CPI prints, and news about possible inclusion of Indian Government Bonds in a major global emerging market index. CURRENT AFFAIRS & FINANCIAL AWARENESS IN SHORT:  Shehbaz Sharif becomes Pakistan's for a second time.  IOC to become first Indian firm to manufacture for Formula 1 cars.  Bank employees to get 17% salary hike; sign final pact.  TVS Motor Company has announced its entry French market as the leading Indian two-wheeler maker unveiled its its range of vehicles du Deux Roues in Lyon, France.  SEBI bars JM Financial from acting as lead manager to new public debt issues.  Sudha Murty nominated to Rajya Sabha by  Maharashtra makes inclusion of mother's mandatory in all govt documents.  Alphabet Inc-owned Google has joined hands with Election Commission of India (ECI) to prevent of false information, promote authorised label AI-generated data during the upcoming elections.  SC asks Centre to give Kerala a financial ‗one-time measure‘.  Oil marketing companies (OMCs) cut prices and petrol by ₹2 per litre each across th w.e.f 0 The Banking Updates Email: [email protected] 8261802533 1 Regd. 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US$ 642.63 bn US$ 568.26 bn 51.48 bn CLICK HERE TO Lakh crores SUBSCRIBE Lakh crores & Financial News) with name and Bank name) CLICK HERE TO DOWNLOAD THE BANKING UPDATES APP 2 system in an encrypted form and displayed in the CBP platform with robust security. The information displayed through the CBP‘s platform shall be visible only to the cardholder and shall neither be accessed nor be stored by the CBP.  Prior approval shall not be required by the banks and NBFCs registered with the Reserve Bank (NBFCs – ICC, HFC, Factor, MFI, and IFC) to become a co- branding partner of card-issuers.  No card-issuer shall dispatch a card to a customer unsolicited. In case of renewal of an existing card, the cardholder shall be provided an option to decline the same if he/she wants to do so before dispatching the renewed card. Further, in case a card is blocked at the request of the cardholder, replacement card in lieu of the blocked card shall be issued with the explicit consent of the cardholder. New Provisions added to the directions are;  Total Amount Due is the total amount (net of credit received during the billing cycle, if any) payable by the cardholder as per the credit card statement generated at the end of a billing cycle.  Interest shall be levied only on the outstanding amount, adjusted for payments/refunds/reversed transactions.  Card-issuers shall provide the list of payment modes authorised by them for making payment towards the credit card dues, in their websites and billing statements. Further, card-issuers shall advise cardholders to exercise due caution and refrain from making payments through modes other than those authorised by them.  Any debit to the credit card account shall be done as expenses. per the authentication framework prescribed by the shall put in Reserve Bank from time to time, and not through any end use of other mode/instrument.  For business credit cards wherein the liability rests shall be fully with the corporate or business entity (principal account holder), timeframe provided for payment of by the dues and adjustment of refunds may be as agreed to between the card-issuer and the principal account working holder. per calendar  In case card-issuers, at their discretion, decide to till the closure block/deactivate/suspend a debit or credit card, it in the shall be ensured that a standard operating procedure is followed as approved by their Board. Further, it billing cycle for shall also be ensured that flexibility in blocking/deactivating/suspending a card or withdrawal of benefits available on any card is the billing immediately intimated to the cardholder along with as per the reasons thereof through electronic means (SMS, email, etc.) and other available modes. credit/loan REPORTING AND ACCOUNTING OF CENTRAL GOVERNMENT TRANSACTIONS FOR MARCH 2024: The Government of India has decided that the date of closure of residual transactions for the month of March 2024 be fixed as April 10, 2024. In view of the ensuing closing of Government accounts for the financial year undertaken 2023-24, receiving branches should adopt special arrangements such as courier service etc., for passing on challans/scrolls etc., to the Nodal/Focal Point branches so that all payments and collections made on behalf of Government towards the end of March are accounted for in the same financial year. The nodal/Focal Point branches will be required to prepare 3 conventions.  Special attention must be given on extending guidance and support, particularly to smaller entities within the sector, and sharing best practices aligned with statutory and regulatory policies.  Act as the collective voice of its members in engagements with the Reserve Bank, government authorities or other regulatory and statutory bodies, in India.  Collect and share relevant sectoral information to the Reserve Bank to aid in policymaking.  Encourage a culture of research and development within the sector to encourage innovation while ensuring highest standards of compliance and self- governance. RESPONSIBILITIES OF THE SRO TOWARDS MEMBERS: The primary responsibility of the SRO towards its members would be to promote best business practices and in particular should discharge the following responsibilities towards its members:  Frame a code of conduct to be followed by its members and monitor adherence to the code.  Develop a uniform, reasonable and non- discriminatory membership fee structure.  Disseminate sector-specific information through periodicals, bulletins, pamphlets, magazines, etc.  Establish a grievance redressal and dispute resolution/ arbitration framework for its members and offer counselling on restrictive, unhealthy and such other practices which may be detrimental to growth of the sector.  Promote knowledge of statutory/ regulatory provisions and provide necessary resources for exchange of expertise and experience among members. It may also arrange for training programmes for skill development and awareness programs on contemporary issues for its members.  Educate public about operations of REs, grievance redress mechanisms available to them and spread awareness in general about the sector. RESPONSIBILITIES OF THE SRO TOWARDS THE REGULATOR: The SRO shall discharge the following responsibilities towards the Regulator:  Keep the Reserve Bank regularly informed of the developments in the sector. It shall also promptly inform the Reserve Bank about any violation by its member of the provision of the guidelines issued by RBI.  Carry out any work assigned to it by the Reserve Bank and examine the proposal or suggestion referred to it.  Submit an Annual Report to the Reserve Bank, within three months of completion of the accounting year. The SRO shall also submit the periodic/ adhoc returns as may be prescribed by the Reserve Bank.  Engage in periodic interactions with the Reserve Bank.  Reserve Bank may, if it deems necessary, inspect the books of the SRO or arrange to have the books inspected by an audit firm. ELIGIBILITY CRITERIA FOR THE APPLICANT: The entities intending to function as an SRO shall, therefore, fulfil the following eligibility criteria:  The applicant shall be set up as a not-for-profit company registered under Section 8 of the 4 three auctions (from the rate fixing day, i.e., March 22, 2024) of 182 Day T-Bills, plus a fixed spread (1.22 percent). RBI TAKES ACTION AGAINST JM FINANCIAL PRODUCTS LIMITED: RBI, in exercise of its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934, directed JM Financial Products Limited (JMFPL) to cease and desist, with immediate effect, from doing any form of financing against shares and debentures, including loans against IPO of shares as well as against subscription to debentures. The Company shall, however, continue to service its existing loan accounts through the usual collection and recovery process. This action is necessitated due to certain serious deficiencies observed in respect of loans sanctioned by the company for IPO financing as well as NCD subscriptions. During the limited review it was observed, inter alia, that the company repeatedly helped a group of its customers to bid for various IPO and NCD offerings by using loaned funds. RBI APPROVES AMALGAMATION OF FINCARE SMALL FINANCE BANK LTD. AND AU SMALL FINANCE BANK LTD: The Reserve Bank of India has sanctioned the Scheme of Amalgamation of Fincare Small Finance Bank Ltd. (Transferor Bank) with AU Small Finance Bank Ltd. (Transferee Bank), in exercise of the powers contained in sub-section (4) of Section 44A of the Banking Regulation Act, 1949. ll the and proper' criteria as branches of Fincare Small Finance Bank Ltd. will function as branches of AU Small Finance Bank Ltd. with effect from April 01, 2024. RBI TAKES ACTION AGAINST IIFL FINANCE LIMITED: The Reserve Bank of India in exercise of its powers under Section 45L(1)(b) of the Reserve Bank of India Act, 1934, directed IIFL Finance Ltd. to cease and desist, with immediate effect, from sanctioning or BANK disbursing gold loans or assigning/ securitising/ selling any of its gold loans. The company can, however, continue to service its existing gold loan portfolio through usual collection and recovery processes. An inspection of the company was carried out by the Reserve Bank with reference to its financial position as on March 31, 2023, wherein certain material supervisory Responsibilit concerns were observed in the gold loan portfolio of the company, including serious deviations in assaying and certifying purity and net weight of the gold at the time of sanction of loans and at the time of auction upon default; breaches in Loan-to-Value ratio; significant disbursal and collection of loan amount in cash far in excess of the statutory limit; non-adherence to the State Bank standard auction process; and lack of transparency in of India charges being levied to customer accounts, etc. of NEFT SYSTEM HAS ACHIEVED A MILESTONE ON of FEBRUARY 29, 2024, BY PROCESSING MORE THAN 4 CRORE TRANSACTIONS: NEFT system has achieved a milestone on February 29, 2024, by processing 4,10,61,337 transactions, the highest number of transactions processed in a day so far. During the previous ten years (2014-23), NEFT and RTGS systems have registered growth of 700 per cent and 200 per cent respectively in terms of volume and 670 per cent and 104 per cent respectively in terms of value. RTGS system had processed its highest ever volume of 16.25 lakh transactions in a day on March 31, 2023. 5 has downstream investments all other investments, either directly or indirectly in including investment in a debtor company of the RE. hybrid instruments. Note: The debtor company of the RE, for this purpose, shall mean any company to which the RE currently has or previously had a loan or investment exposure anytime during the preceding 12 months. If an AIF scheme, in which Provisioning shall be RE is already an investor, required only to the makes a downstream extent of investment by investment in any such the RE in the AIF debtor company, then the RE scheme which is shall liquidate its investment further invested by the in the scheme within 30 days AIF in the debtor from the date of such company, and not on downstream investment by the entire investment the AIF, failing which, they of the RE in the AIF shall make 100 percent scheme. provision on such investments. Investment by REs in the Shall only be subordinated units of any AIF applicable in cases scheme with a ‗priority where the AIF does not distribution model‘ shall be have any downstream subject to full deduction from investment in a debtor RE‘s capital funds. company of the RE. The deduction from capital shall take place equally from both Tier- 1 and Tier-2 capital. INDIA‟S INTERNATIONAL INVESTMENT POSITION (IIP), DECEMBER 2023: The key features of India‘s IIP in end-December 2023 as per data released by RBI are;  Net claims of non-residents on India declined by US$ 12.2 billion during October-December 2023 to US$ 370.4 billion as at end-December 2023 due to the higher rise in Indian residents‘ overseas financial assets (US$ 40.7 billion) as compared to the increase in foreign-owned assets in India (US$ 28.5 billion).  The share of debt liabilities in total external liabilities remained at its level a quarter ago (50.4 per cent).  The ratio of India‘s international financial assets to international financial liabilities improved to 72.4 per cent in December 2023 from 70.9 per cent a quarter ago. RBI RELEASES DATA ON LENDING AND DEPOSIT RATES OF SCHEDULED COMMERCIAL BANKS: The key points of RBI report on lending and deposit rates of scheduled commercial banks (SCBs) (excluding regional rural banks and small finance banks) during the month of March 2024 are;  The weighted average lending rate (WALR) on fresh rupee loans stood at 9.36 per cent in February 2024 (9.43 per cent in January 2024).  The WALR on outstanding rupee loans was at 9.83 per cent in February 2024 (9.85 per cent in January shall 2024).  1-Year median MCLR of SCBs remained unchanged at 8.80 per cent in March 2024.  The share of External Benchmark based Lending Rate (EBLR) linked loans in total outstanding floating 6 Samridhi for the three-month period from April-June. Accordingly, the interest rate on the Public Provident Fund (PPF) will continue to be 7.1 per cent, while it will be 8.2 per cent on the Sukanya Samridhi scheme. Simillarly the RoI under SCSS Scheme remains unchanged at 8.20% and under KVP Scheme the RoI also kept unchanged at 7.50% p.a. MCA RAISES EXEMPTION LIMIT FOR M&A WITHOUT PRIOR CCI APPROVAL: The government on March 8 announced to raise the threshold for smaller business deals, including mergers and acquisitions, to happen without prior approval of the Competition Commission Of India (CCI). When one company buys another or merges, if the deal for assets is up to Rs 450 crore in India or if the businesses' turnover is Rs 1,250 crore, they will be exempted from prior approval under the Competition Act. The earlier threshold stood at Rs 350 crore for value of assets and Rs 1,000 crore for turnover. The increased asset and revenue thresholds described above are applicable for a period of 2 years, with effect from 7 March, 2024. CGTMSE LAUNCHES ODISHA CREDIT GUARANTEE SCHEME (OCGS)/ SWATANTRA YUVA UDYAMI (SWAYAM): CGTMSE in collaboration with the State Government of Odisha has launched a Special Credit Guarantee Scheme "Odisha Credit Guarantee Scheme (OCGS)/ Swatantra Yuva Udyami (SWAYAM)" for the MSEs situated in the State of Odisha. Under the scheme 85% of the guarantee coverage will be provided by CGTMSE as being done hitherto and balance 15% coverage shall be provided by Government of Odisha for loans upto '95,000/- extended by MLIs, taking the overall guarantee coverage to 100%. The enhanced guarantee coverage will be available upto NPA level of 15% of crystallised portfolio (portfolio will be crystallised as on 31st March every year). In case the NPA level exceeds the above limit of 15% of crystallised portfolio, the claims will be settled as per the terms of normal Credit Guarantee Scheme of CGTMSE. The cost of annual guarantee fee shall be borne by the State Government under the Scheme. All the existing MLIs (excluding NBFCs and Small Finance Banks) shall be eligible under OCGS / SWAYAM. GOVT. FORMS EXPERT COMMITTEE ON UNIFORM KYC FOR ALL: To reduce the paperwork, time and cost of this process, the Financial Stability and Development Council (FSDC) has proposed to implement a uniform KYC system to verify customers across the financial sector. The central government has formed an expert committee under Finance Secretary TV Somanathan to make recommendations on uniform KYC norms, according to reports. SEBI ISSUES CIRCULAR TO EXEMPT CERTAIN FPIs FROM ADDITIONAL DISCLOSURE FRAMEWORK: The market regulator had issued directions to exempt a section of foreign portfolio investors (FPIs) who hold concentrated holdings in one corporate group from the additional disclosure framework issued last August. In a circular dated March 20, SEBI stated that an FPI having more than 50 percent of its Indian equity AUM (assets under management) in a corporate group shall not be required to make the additional disclosures as in the circular dated August 24, 2023, subject to compliance with all required conditions. 7 policyholders throughout their engagement with insurers and distribution channels. CENTRE TO BORROW RS 7.5 LAKH CRORE VIA DATED SECURITIES IN H1FY25: The Centre will borrow Rs 7.50 lakh crore via the issuance of government securities in the April-September period of FY25. The Interim Budget for 2024-25 had pegged the Centre's full-year gross borrowing estimate at Rs 14.13 lakh crore from the markets. In April-September, the size of the weekly government bond auctions will range from Rs 22,000 crore to Rs 38,000 crore. Finance Ministry in a release said that the government has decided to introduce a new dated security of 15-year tenor based on the market feedback and in line with global market practices. LIC, GIC Re AND NEW INDIA ASSURANCE COMPANY RETAIN THE 'D-SII' TAG: The public sector insurance companies, Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC Re) and the New India Assurance Company continue to be identified as Domestic Systemically Important Insurers (D-SIIs) by IRDAI. D-SIIs are insurance companies which are perceived as ‗too big or too important to fail‘ (TBTF) based on their size, market importance, and domestic and global interconnectedness. demands, BUSINESS / FINANCE & as follows in a ECONOMY WOMEN CONTRIBUTE ONLY 18% TO GDP DESPITE 48% SHARE IN POPULATION: Indian women, despite constituting 48% of the population, contribute only 18% to the GDP, found a study by the National Family Health Survey. Bridging the gender gap in employment could potentially lead to a 30% increase in the country's GDP, as per the study. Another study, by McKinsey Global Institute (MGI), said advancing women's equality could lead to a $28 trillion increase in the global GDP. motor third party TERM DEPOSITS FORMED 98% OF INCREMENTAL DEPOSIT GROWTH IN APR-DEC: Term deposits accounted for a whopping 98% of incremental deposits between April-December 2023, with share of low-cost current account and savings account (CASA) falling to a will now be low of 2% during the period, according to RBI‘s quarterly basic statistical returns on deposits-December 2023 beneficiaries report. Deposits also moved to higher interest rate buckets, with the share of term deposits bearing over 7% interest rate rising to 61% of the total term deposits in December 2023 from 55% a quarter ago and 34% in March 2023. Paytm PAYMENTS BANK FINED RS 5.49 CRORE FOR VIOLATING MONEY LAUNDERING NORMS: The Financial Intelligence Unit-India has imposed a penalty of Rs 5.49 crore on Paytm Payments Bank for violating money laundering norms, as a few entities and their business network were engaged in illegal activities, including organising and facilitating online gambling. "Further, the money generated from these illegal Interests and operations were routed and channelled through bank accounts maintained by these entities with the Paytm structure, Payments Bank Ltd," at ensuring BANKS' NPAs AT RECORD LOWS AS RECOVERIES UP: Banks' bad loans have fallen to record lows as recoveries from defaulters rise and many who missed 8 March 11. According to the affidavit, details, including date of purchase of each electoral bonds, names of the purchaser and the denomination of the bonds purchased have been furnished. The bank has also furnished to the EC details like date of encashment of the electoral bonds, the names of political parties which received the contributions and the denominations of the bonds. EC PUBLISHES DETAILS OF ELECTORAL BONDS DATA ON ITS WEBSITE: The Election Commission has published details of the electoral bond data recevied from SBI on its website. Future Gaming and Hotel Services PR has emerged as the top purchaser of electoral bonds at Rs 1,368 crore, with Megha Engineering and Infrastructures Ltd at the second spot with Rs 966 crore. Bharatiya Janata Party (BJP) has emerged as the top beneficiary of electoral bonds, encashing bonds worth Rs 6,060.5 crore between April 12, 2019, and January 24, 2024. All India Trinamool Congress (TMC) secured the second spot, receiving Rs 1,609.50 crore via electoral bonds. Congress occupied the third spot, collecting Rs 1,421.9 crore through this route. SEBI ISSUES FRAMEWORK FOR BETA VERSION OF T+0 SETTLEMENT; TO START WITH 25 SCRIPS AND LIMITED TRADE TIMING: The Securities and Exchange Board of India (Sebi) on March 21 issued framework for implementing the beta version of same- day or T+0 settlement on an optional basis, in addition to the T+1 settlement cycle. To start with, this option will be available in the equity cash segment for 25 scrips and through a limited set of brokers. All investors will be allowed to participate in this segment and trade timing for will be between 9.15 am and 1.30 pm. BSE RELEASES LIST OF 25 STOCKS ELIGIBLE FOR T+0 SETTLEMENT CYCLE FROM 28TH MARCH: BSE on March 27 released the list of 25 stocks that will be eligible for T+0 settlement cycle from March 28. Ambuja Cements, Ashok Leyland, Bajaj Auto, Bank of Baroda, BPCL, Cipla, three Tata Group are among the stocks that will be eligible for the settlement cycle. Indian markets operate on a T+1 settlement cycle for all stocks currently, which means that the purchase and sale of shares will reflect in the demat accounts of investors one day after the transaction. With regards to eligibility, the regulator said that all investors will be eligible to participate in the T+0 settlement cycle if they are able to meet the timelines, process and risk requirements as prescribed by the market infrastructure institutions. Trade timing will be between 9.15 am and 1.30 pm. The price in the T+0 segments will operate with a price band of +100 basis points from the price in the regular T+1 market. This band will be re-calibrated after every 50 basis points movement in the underlying T+1 market. The surveillance measures as applicable in the T+1 settlement cycle shall be applicable to scrips in the T+0 settlement cycle. The regulator said that T+0 prices will not be considered in index calculation and settlement price computation. There will be no separate close price for securities based on trading in the T+0 segment. It also MUMBAI OVERTAKES BEIJING AS ASIA‟S BILLIONAIRE HUB: In a significant shift, Mumbai has dethroned Beijing as Asia‘s billionaire capital, marking a historic milestone in the latest Hurun Global Rich List 9 Flipkart app.  Tata Motors Ltd (TML) on March 4 informed the stock exchanges of its decision to demerge its businesses into two separate listed entities, namely the commercial vehicles (CV) and passenger vehicles (PV) businesses.  RBI and the Bank of Indonesia signed an MoU for establishing a framework to promote the use of local currencies viz, the Indian Rupee (INR) and the Indonesian Rupiah (IDR) for cross-border transactions.  Ministry of Rural Development signs a MoU with IIT Delhi to formalize their partnership in applications of geospatial technology and artificial intelligence.  Government of India, ADB sign $181 million loan to improve livability and mobility in Ahmedabad.  The Centre and the Asian Development Bank (ADB) signed a $23 million loan agreement to enhance access to quality fintech education, research, and innovation at the GIFT-City.  Exim Bank extends $23 mn line of credit to Guyana for aircraft procurement.  HDFC Bank has completed the sale of its stake in education finance arm HDFC Credila for Rs 9,553 crore to private equity firms BPEA EQT and ChrysCapital.  SBI Card and Titan launch „Titan SBI Card‟ for addressing the consumers‘ aspirational spending needs.  Federal Bank launches RuPay smart key chain – Flash Pay for contactless payments.  Kotak Mahindra Bank has unveiled its latest offering, the Smart Choice Gold Loan, targeting aspirational customers seeking convenient and flexible loan options.  Policybazaar Insurance Brokers, PB Fintech‘s Subsidiary, Receives IRDAI Approval for Composite Insurance Broker License.  NPCI International Payments Ltd (NIPL) has partnered with Nepal‘s leading payment network, Fonepay Payment Service Ltd, to enable cross-border UPI transactions between India and Nepal.  IndusInd Bank, in collaboration with Mastercard, introduces ‗Indus PayWear,‘ offering tokenised wearables for debit and credit cards.  Aditya Birla Capital, Aditya Birla Finance announces a Scheme of amalgamation for creation of a large NBFC.  The Competition Commission of India (CCI) has approved the merger of a financial technology company, Garagepreneurs Internet Private Limited (GIPL), with the North East Small Finance Bank (NESFB). period of time".  SBI Partners with Aurionpro for Its cutting-edge cash management and transaction banking platform, iCashpro+.  Axis Bank has pledged a significant contribution of ₹100 crore to the National Cancer Grid (NCG), in collaboration with Tata Memorial Centre. This partnership aims to bolster research, innovation, and digital health adoption in oncology over the next five years.  Reliance Consumer Products Partners with Sri Lanka‘s Elephant House for Beverage Expansion in India. 10 namely cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products and steel. These industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).  The Indian government has outlined its borrowing strategy for the first half of the fiscal year 2024-25, aiming to raise Rs 7.5 lakh crore from the market through the issuance of various bonds, including sovereign green bonds. NEW APPOINTMENTS..  Shri Kishor Makwana assumes charge of Chairman National Commission for Scheduled Castes (NCSC).  Govt appoints former bureaucrats Gyanesh Kumar and Sukhbir Sandhu as election commissioners.  Central Bank of India chief executive M V Rao elected as Indian Banks‟ Association Chairman.  AS Rajeev appointed as Vigilance Commissioner in the Central Vigilance Commission. Shri Rajeev is a career banker with over 38 years of experience across Syndicate Bank, Indian Bank, Vijaya Bank, and Bank of Maharashtra.  Senior bureaucrat Rahul Singh has been appointed as the chairperson of the Central Board of Secondary Education (CBSE).  Kotak Mahindra Bank has appointed Jaideep Hansraj, the current MD and CEO of Kotak Securities, as the Group President – One Kotak.  Nidhu Saxena appointed as MD & CEO of Bank of Maharashtra. to 8.7 per CURRENT AFFAIRS- DEVELOPMENTAL ASPECTS to UNSPENT CENTRAL FUNDS TO STATES TO BE SETTLED IN REAL TIME FROM APR 1: Starting April 1, the settlement of unspent funds from the Centre to states through the single nodal agency (SNA) will occur within a day, eliminating the need to park it outside the government account for more than 24 hours. The Department of Expenditure and the Reserve Bank of its expansion India are upgrading the SNA system to settle the unused amount in real time, thereby preventing disputes its over interest payments on unspent funds. GOVERNMENT GUARANTEES MINIMUM SUPPORT PRICE FOR MAIZE, PULSES, COTTON FOR 5 YEARS: The government will provide a minimum support price (MSP) guarantee for maize, pulses, and cotton for five years. Those who cultivate crops with lower water consumption, such as lentils and maize, will benefit from the MSP guarantee. The government has finalised a process to implement the decision and has developed a portal where farmers will have to register and provide an undertaking that they have diversified their crops. Registered farmers can also sell their produce to NCCF, NAFED, and CCI. The government forecast to will use satellite images and crop insurance data to verify if farmers have diversified their crops. The a 6.7 percent government aims to use purchased pulses to create It was buffer stocks, which will later be used to control pulse Eight Core prices. individual industries 11 LOK SABHA ELECTION DATES 2024: GENERAL ELECTION TO BE HELD IN 7 PHASES FROM APRIL 19 TO JUNE 1, RESULTS ON JUNE 4: Lok Sabha elections 2024 will take place in seven phases from April 19 to June 1 and the counting of votes will take place on June 4, the Election Commission announced. Further, assembly elections will be held in Andhra Pradesh, Arunachal Pradesh and Sikkim in a single phase while Odisha will vote in four phases. Assembly polls will take place in Arunachal Pradesh and Sikkim on April 19 while Andhra Pradesh will vote on May 13. Four-phase elections will take place in Odisha on May 13, May 20, May 25 and June 1. There are many as 97 FOR crore eligible voters in India, of which 1.8 crore will be first-time voters. BIHAR‟S BEGUSARAI IS THE WORLD‟S MOST POLLUTED CITY: Begusarai in Bihar has been found to be the most polluted city in the world, according to the World Air Quality Report 2023 released by Switzerland- based IQAir. Also, India ranks third behind Bangladesh and Pakistan among five most polluted countries in the list of 134 countries. India was ranked the eighth most polluted country in the 2022 report in a list of 131 countries. According to the report, out of 100 top polluted places, 83 are from India. Guwahati is at the second place while Delhi is at the third place. AMUL GOES INTERNATIONAL: DESI DAIRY GIANT TO LAUNCH FRESH MILK IN US: For the first time, Amul fresh milk will be available outside India, with the Gujarat Cooperative Milk Marketing Federation (GCMMF) launching four variants of milk in the US market, to cater to Indian diaspora and Asian population. GCMMF has tied up with 108-year old cooperative organisation Michigan Milk Producers Association (MMPA) to launch fresh milk in the US market," The milk collection and processing will be done by MMPA, while GCMMF will do marketing and branding of Amul fresh milk. PRIME MINISTER NARENDRA MODI VIRTUALLY INAUGURATES SELA TUNNEL: Prime Minister Narendra Modi, on March 09, 2024, virtually dedicated the Sela Tunnel project to the nation. Constructed by the Border Roads Organisation (BRO) at an altitude of 13,000 feet, the tunnel is situated on the road from Tezpur, Assam, to Tawang in Arunachal Pradesh‘s West Kameng district. The project, aims to provide all- weather connectivity and bolster the Armed Forces‘ readiness in the region. will be CENTRE NOTIFIES 3-10% MGNREGA WAGE HIKE FOR 2024-25: The Centre has notified a 3-10 per cent also signed increase in the wage rates for MGNREGA workers for the financial year 2024-25. The new wage rates will come into effect from April 1,2024. While Goa (10.56 per cent) and Karnataka (10.4 per cent) have seen the highest percentage increase, wage rates in Uttar Pradesh and Uttarakhand are set to see the lowest increase at 3 per cent for FY‘24-25. The average MGNREGA wage increase across India is ₹28 per day. The average wage for 2024-25 will be ₹289 as against ₹261 for FY‘23-24. Currently, MGNREGA wages are decided based on changes in the CPI-AL (Consumer Price Index- Agriculture Labor), which reflects inflation in rural areas. of USD 12  Prime Minister Shri Narendra Modi was conferred the Order of the Druk Gyalpo, Bhutan‟s highest civilian decoration, by His Majesty the King of Bhutan in a public ceremony at the Tendrelthang, Thimphu. Prime Minister Modi is the first foreign leader to be given this prestigious award.  India plans to shift from minimum wage to living wage by 2025.  The Nagaland legislative assembly has unanimously adopted a resolution against the central government‘s decision to fence the Indo-Myanmar border and suspend the Free Movement Regime (FMR) agreement with Myanmar, which allows border residents to travel 16 km into each other‘s territory without visas.  Odisha CM Naveen Patnaik Releases Book Titled Prime Minister ‗FIH Odisha Hockey Men‟s World Cup 2023‟.  Union Minister for Steel and Civil Aviation, Sh. fuel Jyotiraditya M. Scindia, virtually inaugurated India‘s 1st Green Hydrogen Plant in Stainless Steel Sector IBA, unions located at Jindal Stainless Limited, Hisar, on 4th March, 2024. into the  Defense minister Rajnath Singh unveiled the Acing Development of Innovative Technologies with iDEX at the Salon (ADITI) scheme. The scheme aims to promote innovations in critical and strategic defence technologies, providing start-ups with significant grants for research and development. President.  Government raises Minimum age criteria for Postal name Voting to 85 Years from 80 years.  India‘s First Underwater Metro Train Service Launched In Kolkata By PM Modi. spread  Kerala introduced ‗Iris‘ Its First Generative AI content and Teacher. general  India‘s first National Dolphin Research Center (NDRC) inaugurated at Patna, Bihar. fillip as a  Union minister Piyush Goyal, launched the ‗e-Kisan Upaj Nidhi‘ (Digital Gateway) of the Warehousing of diesel Development and Regulatory Authority (WDRA) in the country New Delhi.

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