Current Affairs on Banking Sector for Promotion Exams PDF

Current Affairs related to Banking Sector For promotion exams Economic Survey of India- FY 2023-24 - Key Highlights: Budget Theme: Budget 2024-25 focuses on employment, skilling, MSME's and middle class. (Women, Youth, Poor, Farmer). This budget envisages sustained efforts on the following 9 priorities for generating ample opportunities for all:  Productivity and resilience in Agriculture  Employment & Skilling  Inclusive Human Resource Development and Social Justice  Manufacturing & Services  Urban Development  Energy Security  Infrastructure  Innovation, Research & Development and  Next Generation Reforms  As per Economic Survey - India’s real GDP grew by 8.2% in FY 2023-24, exceeding the 8% mark in three out of four quarters of FY 2023-24. FY 2024-25 GDP growths is expected at 6.5% to 7%.  India’s per capita income has grown more than 7 times since 1990. India’s Per Capita Income to reach Rs.14.9 Lakh by 2047.  The gross non-performing assets (GNPA) ratio continued its downward trend, reaching a 12-year low of 2.8% at the end of March 2024 from its peak of 11.2% in FY 2017-18.  The GNPA ratio of the agriculture sector remains high at 6.5% at the end of March 2024, but it has recorded persistent improvement during H2 of FY 2023-24.  The Ministry of Power notified the regulations on the Carbon Credit Trading Scheme (CCTS), also called the Indian Carbon Market, on 28 June 2023.  Agriculture provides employment to 42.3% of the population with a share of 18.2% in the country’s GDP at current prices.  The share of MSMEs in all-India manufacturing output during the year is 35.4%.  India has the second-largest microfinance sector. Women constitute 98 per cent of the total clients of MFIs. Prepared by Central Bank of India, CLD Pune Growth Strategy for Amrit Kaal : Strong, Sustainable and Inclusive: 1. Boost private sector investment to 35 per cent of GDP through a conducive policy and regulatory environment 2. Strengthen India’s MSME sector through deregulation at the state and local government levels. Push for sector-specific, tailored skilling of MSME entrepreneurs and developing a clear-cut export strategy 3. Remove growth impediments in the agricultural sector and allow markets to function in the interest of the farmer 4. Secure financing of green transition in India. 5. Bridge the education – employment gap  Digital Public Infrastructure (DPI) for Agriculture will be implemented for coverage of farmers and their lands in 3 years. 10,000 need-based bio-input resource centres will be established for natural farming.  3 schemes for “Employment Linked Incentive” to be implemented which focus on first time employees, Job Creation in manufacturing & Support to employers.  New centrally sponsored scheme for Skilling under Prime Minister’s Package for 20 lakh youth over a 5-year period will be implemented.  Model Skill Loan Scheme to be revised to facilitate loans up to Rs. 7.5 lakh  Financial support for loans upto Rs.10 lakh for higher education in domestic institutions to be provided to youth who are not eligible under any government support schemes.  The limit of Mudra loans under “Tarun” category is enhanced to Rs. 20 lakh from Rs. 10 lakh for those who have successfully repaid previous loans.  As per RBI the regulatory framework for participation in ETCDs involving the rupee is guided by the provisions of the Foreign Exchange Management Act (FEMA)1999, and regulations framed thereunder, which mandate that currency derivative contracts involving rupee "both over-the- counter and exchange traded" are permitted only for the purpose of hedging of exposure to foreign exchange.  RBI Projects Consumer Price Index (CPI) Inflation At 4.5%., and GDP growth at 7% for FY 2024-2025.  World Bank and IMF revises India's FY25 GDP growth forecast to 7% Prepared by Central Bank of India, CLD Pune Reporting of Frauds to Law Enforcement Agencies: Banks shall immediately report the incidents of fraud to LEAs, subject to applicable laws, as indicated below: Amount involved in LEA to whom complaint should be Category of bank Remarks the fraud lodged Private Sector / Below ₹1 crore State / Union Territory (UT) Police Foreign Banks ₹1 crore and above In addition to State/UT Police, Serious Details of fraud are to be Fraud Investigation Office (SFIO), reported to SFIO in Fraud Ministry of Corporate Affairs, Monitoring Return (FMR) Government of India format. Public Sector (a) Below ₹6 crore State / UT Police Banks / Regional (b) ₹6 crore and above Central Bureau of Investigation (CBI) Rural Banks Banks shall establish suitable nodal point(s) / designate officer(s) for reporting incidents of fraud to LEAs and for proper coordination to meet the requirements of the LEAs.  Reporting Cases of Theft, Burglary, Dacoity and Robbery: Banks shall report instances of theft, burglary, dacoity and robbery (including attempted cases), to Fraud Monitoring Group (FMG), Department of Supervision, Central Office, Reserve Bank of India, immediately (not later than seven days) from their occurrence. Banks shall also submit a quarterly Return (RBR) on theft, burglary, dacoity and robbery to RBI using online portal, covering all such cases during the quarter. This shall be submitted within 15 days from the end of the quarter to which it relates In terms of CVC Order, PSBs shall also refer all fraud cases of amount involving ₹3 crore and above for examining the role of all levels of officials / whole-time directors (including ex-officials / ex-WTDs) to the Advisory Board for Banking and Financial Frauds (ABBFF) constituted by the CVC.  Business Correspondent – Fund Transfer - limit -maximum of Rs. 10,000 per transaction subject to the cap of Rs. 25,000 per month (with effect from November 01, 2024)  Consumer Price Index (CPI) is one of the price indices used to measure the change in the retail prices of goods and services consumed by a defined population group in a given area.  The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation compiles CPI separately for rural, urban, and combined sectors on a monthly basis.  The Reserve Bank of India (RBI) proposed to make Central Bank Digital Currency-Retail (CBDC-R) accessible to a broader population by allowing non-bank payment system operators to offer CBDC wallets. CBDC programme: - The RBI launched the CBDC pilot programme in 2022. The Indian CBDC, also known as digital rupee, is a tokenised digital version of the rupee issued by the RBI. The main objective is to mitigate the risks and trim costs in handling physical currency, costs of phasing out soiled notes, transportation, insurance and logistics.  Non-bank payment system operators include third-party payment applications like PhonePe, Google Pay, etc.  Future Expectations Index (FEI) rising by 2.1 points to 125.2  Credit default swaps are derivative instruments that provide a form of insurance against the risk of default of the issuer of a bond.  HDFC becomes first private bank to open branch at Kavaratti Island in Lakshadweep Prepared by Central Bank of India, CLD Pune  RBI, ASEAN countries to create instant cross-border retail payments platform by 2026.  State Bank of India (SBI) has launched 'MSME -Sahaj', a web-based digital business loans solution for MSMEs' (micro, small and medium enterprises) invoice financing (sales invoices of up to Rs.1 lakh) in less than 15 minutes.  SEBI has increased Basic Service Demat Account (BSDA) Limit to Rs 10 Lakhs from Rs.2 Lakh  SEBI has launched a mobile app named SARTHI 2.0 designed to provide comprehensive tools for simplifying complex financial concepts and empowering investors with reliable information  Bank of India receives Atal Pension Yojana Annual Award for FY2023-24 by PFRDA  ICICI Bank launches pre-paid Sapphiro Forex Card for international students.  RBI joins 'Project Nexus' to enable instant cross-border retail payments. (About Project Nexus: - Nexus, conceptualised by the Innovation Hub of the Bank for International Settlements (BIS), aims to connect the FPSs of four ASEAN countries (Malaysia, Philippines, Singapore, and Thailand); and India, who would be the founding members and first mover countries of this platform.)  RBI increases UPI limit to Rs.5 lakh from Rs.1 Lakh for tax payments, introduces delegated payments.  Currently, the UPI Lite has a daily limit of ₹2,000, while the upper limit for a single payment is ₹500. UPI Lite is a simplified version of the Unified Payments Interface (UPI).  NPCI announced the rollout of “UPI One World” wallet for inbound travellers, across all nations of the world, visiting India.  SEBI allows NRIs to own up to 100% in global funds at the GIFT City, (presently NRIs and Overseas Citizens of India (OCIs) cannot own more than 50 per cent in a foreign portfolio investor (FPI).  Floating Rate Bond - FRBs have a maturity period of seven years. The minimum investment amount for FRBs is Rs 1,000, while there is no maximum limit. FRBs are backed by the government of India, making it one of the safest investments. Interest on these bonds is paid semi- annually on January 1 and July 1 each year.  Nostro Account is a bank account held in another country by a domestic bank, but in the currency of the foreign country. Eg: Requirement for NBFC License with RBI: - The applicant company shall be registered under Companies Act, 2013 or 1956 The applicant company should have a minimum net owned fund of Rs. 2 crores. If the applicant is a foreign company, its minimum capital shall be Rs. 5 crores. NBFCs lend and make investments and hence their activities are akin to that of banks; however, there are a few differences as given below: Prepared by Central Bank of India, CLD Pune i. NBFC cannot accept demand deposits; ii. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself; iii. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks. NBFCs whose asset size is of Rs. 500 Cr or more as per last audited balance sheet are considered as systemically important NBFCs.  The maximum intraday risk to the custodian banks issuing IPCs would be considered as capital market exposure (CME) at 30 per cent of the settlement amount.  As per provisions of the Section 269 SS of Income Tax Act, 1961, that stipulates no individual can receive more than Rs 20,000/- as loan amount in cash  About TReDS: - TReDS, an initiative introduced by the Reserve Bank of India (RBI) and backed by the Ministry of Micro, Small & Medium Enterprises (MSME), addresses the liquidity & working capital challenges faced by MSMEs. TReDS serves as an electronic platform facilitating the financing and discounting of trade receivables of MSMEs through multiple financiers.  RBI has currently specified the list of 6 external domestic rating agencies accredited for the purpose of risk weighting banks' claims for capital adequacy purposes under Basel III guidelines. The accredited domestic rating agencies are CARE, CRISIL, India Rating, ICRA, Acuite Rating agency and Infomerics. National Rural Livelihoods Mission (NRLM) Scheme :  NRLM works on three pillars – enhancing and expanding existing livelihoods options of the poor; building skills for the job market outside; and nurturing self-employed and entrepreneurs. Interest Subsidy for NRLM (only for Standard Accounts): Sr No Loan Rate of Interest Interest subvention (FY 24- amount 25) 1 up to ₹3 lakh concessional interest rate of 7% per annum 4.5% per annum 2 ₹3 lakh to ₹5 interest rate equivalent to their 1 year-MCLR or 5% per annum lakh lending rate approved by the board of the Bank or any other EBLR or 10% per annum, whichever is lower 3 Women entrepreneurs making prompt repayment will be provided additional 2% interest subvention on loan outstanding up to ₹1.5 lakh per borrower under Women Enterprise Acceleration Fund for maximum period of 3 years only once Timelines and Disclosures guidelines for Credit Rating Agencies issued by SEBI: In order to promote Ease of Doing Business and bring about uniformity in dealing with appeals, based on consultation with stakeholders including CRAs, it has been decided to provide specific timelines for dealing with appeals made by the issuer in respect of rating actions carried out pursuant to periodic surveillance of ratings. Periodic surveillance: Scenario Timeline - immediately but not later than Communication of the rating to the issuer 1 working day* of the Rating Committee meeting Request for review/ appeal of rating by the Issuer 3 working days of the Rating Committee meeting Dissemination of Press Release on CRA’s website 7 working days of the Rating Committee meeting and intimation of the same to Stock Exchange/ Debenture Trustee (An archive of all disclosures should be maintained by CRAs on their website, for at least 10 years.) Prepared by Central Bank of India, CLD Pune  Reduction in denomination of debt securities & preference shares: As per SEBI’s guidelines, minimum investment amount for debt securities and non-convertible redeemable preference shares issued through private placement basis was Rs. 1 lakh. To attract more retail investors, SEBI has recently reduced this limit to Rs. 10,000 subject to following conditions. (a) The issuer shall appoint at least one Merchant Banker. (b) Such debt security or non-convertible redeemable preference share shall be interest or dividend bearing with a fixed maturity.  In 2021, capital market regulator SEBI reduced the minimum investment limit on InvITs, the minimum subscription limit for investing in InvITs was reduced from Rs 1 lakh to the range of Rs 10,000 to Rs 15,000 and the minimum trading lot from 100 units to 1 unit.  A 'synthetic securitisation' is a structure wherein credit risk of an underlying pool of exposures is transferred, in whole or in part, through the use of funded or unfunded credit derivatives or guarantees that serve to hedge the credit risk of the portfolio while the exposure continues to remain on the balance sheet of the lender.  Governance Structure in banks for Fraud Risk Management : (a)Banks should have Board approved Policy on fraud risk management delineating roles and responsibilities of Board / Board Committees and Senior Management of the bank. The policy should be reviewed by the Board at least once in three years. (b) Banks shall ensure compliance with principles of natural justice while Issuing Show Cause Notice (SCN) to the Persons, Entities and its Promoters / Whole- time and Executive Directors against whom allegation of fraud is being examined. (c) A reasonable time of not less than 21 days shall be provided to the Persons / Entities on whom the SCN was served to respond to the said SCN. (d) Banks shall have a well laid out system for issuance of SCN and examination of the responses / submissions made by the Persons / Entities prior to declaring such Persons / Entities as fraudulent. Once decided to declare the person as fraudulent, a reasoned order shall be served to the person/entity.  Climate Risk and Sustainable Finance: “Climate-related financial risks” means the potential risks that may arise from climate change or from efforts to mitigate climate change, their related impacts and economic and financial consequences. “Climate resilience” means the capacity of an RE to adjust to climate-related changes, developments or uncertainties. It involves the capacity to manage climate-related risks and benefits from climate-related opportunities, including the ability to respond and adapt to climate-related physical and transition risks. It includes both strategic and operational resilience of RE to climate-related changes, developments or uncertainties. Thematic Pillars of Disclosure issued by RBI: Governance, Strategy, Risk Management, Metrics and Targets. INDIA FOCUS: Highlights of the pilot Stakeholders’ Survey on Financial Risks covering major banks, NBFCs, brokerage institutions, and other Fis in India.  90% of the respondents considered climate risk as a material threat to the business. 50% identified transition risk as the main concern.  Energy and mining were identified as the most vulnerable sectors, followed by automobile, agriculture, infrastructure, and construction.  80% confirmed that their Boards had discussed climate-related risks in the recent financial year. 60% have incorporated climate risk in their risk management framework. However, most of these institutions have yet to develop specific mechanisms to identify and deal with such risks. Prepared by Central Bank of India, CLD Pune  45% considered climate sustainability when selecting projects for financing, and similar percent have developed their own internal classification of whether a counterparty is “green” or “brown”.  45% have introduced new products that can take advantage of opportunities from green finance  40% have mobilized new capital for scaling up green lending, or have set targets for such lending  Lack of capacity and appropriate data are the biggest challenges in assessing climate risk. Only 25% use scenario analysis to assess climate risks. Regulatory Thrust on Climate Risk and Sustainable Finance: The Reserve Bank of India (RBI) has acknowledged climate change risk as a systemic risk to the financial system, and in 2021 it joined a number of other central banks and financial supervisors as part of the Network for Greening the Financial System (NGFS). The Securities and Exchange Board of India (SEBI) introduced the Business Responsibility and Sustainability Reporting (BRSR) in 2021 that requires the top 1,000 listed companies in India to disclose their sustainability-related information in their annual reports. This been further modified via circular dated July 12th 2023 to “BRSR Core - Assurance and ESG Disclosures for Value Chain” In May 2023, the RBI's Report on Currency and Finance 2022-2023 - 'Towards a Greener Cleaner India’ was released, with focus on key aspects of the climate change challenge for India. IFRS: International Financial Reporting Standards – important disclosures are S1 & S2 Net-zero emissions means cutting GHG emissions, with any remaining emissions counterbalanced by removing carbon from the atmosphere through carbon removal.  The science shows clearly that in order to avert the worst impacts of climate change and preserve a livable planet, global temperature increase needs to be limited to 1.5°C above pre-industrial levels.  To keep global warming to no more than 1.5°C – as called for in the Paris Agreement – emissions need to be reduced by 45% by 2030 and reach net zero by 2050.  India aims to achieve net-zero by 2070, with interim target of reducing emissions intensity of its GDP by 45 per cent by 2030 from 2005 level. Types of Risks: Physical risks are those impacts caused by extreme weather events or long term changing weather patterns, rising temperatures and sea levels. Physical risk may be acute or chronic:  Acute risks: These are event-driven, caused by extreme weather and climate conditions such as cyclones, hurricanes, wildfires. India is highly vulnerable to acute risks including flooding, landslide, and cyclone. Prepared by Central Bank of India, CLD Pune  Chronic risks: Those resulting from medium- and long-term shifts in climate patterns. Examples are rising sea levels, agricultural productivity, changes in temperature. India is a high-risk country in terms of occurrence of droughts. Transition risks are those relating to the changes in policy, technology, and market in an effort to transition to a low-carbon, greener economy.  Regulatory and legal risks: Arise from policy and regulatory initiatives that seek to limit and penalize activities that contribute to climate change.  Technological risks: Arise from innovations and improvements that contribute to the transition towards a low-carbon economy.  Market risks: Arise from changes in the supply and demand of businesses and consumers due to the consideration of climate criteria.  Reputation risks: Arise from changing customer or community perceptions of an organization’s contribution to or detraction from the transition to a lower carbon economy. ESG Disclosures: The India Context : OVERVIEW- BUSINESS RESPONSIBILITY AND SUSTAINABLITY REPORTING (BRSR)  Union Bank of India has become the first Indian bank to join the Partnership for Carbon Accounting Financials (PCAF), a significant milestone in its commitment to sustainability and transparent reporting of Green House Gas (GHG) emissions.  “SEHER” Program to Empower Women Entrepreneurs - WEP (Women Entrepreneurship Platform) and TransUnion CIBIL have recently joined together and launched ‘SEHER’ a credit education program with an aim to empower women entrepreneurs in India with financial literacy content and business skills, helping them to access the financial tools they need to drive further growth and create employment in the country’s economy.  Biodiversity Beyond National Jurisdiction (BBNJ) Agreement - a significant step towards the conservation and sustainable utilisation of marine biological diversity in areas beyond national jurisdiction.  White Label ATM: The interchange fee - ₹17 for financial and Rs. 6 for non-financial transactions.  Bancassurance is an insurance distribution model where companies partner with banks to sell policies. This arrangement benefits both the bank and insurance companies get to benefit. Prepared by Central Bank of India, CLD Pune  RBI Forms Committee under the Chairmanship of former MD and CEO of NPCI, Mr. A P Hota to Examine Various Aspects For Setting Up Digital Payments Intelligence Platform To Mitigate Payment Fraud. Digital Agriculture Mission: -Tech for Transforming Farmers Lives.  NPS Vatsalya: Scheme saving-cum-pension scheme regulated and administered by the PFRDA Eligibility All minor citizens (age till 18 years) are eligible Operation  Account opened in the name of minor and operated by Guardian.  Minor to be sole beneficiary Where to open  The NPS Vatsalya account can be opened through Point of Presence (POPs) account registered with PFRDA either online or physical mode, which include major banks, India Post, Pension Fund etc. (List of PoPs is available on PFRDA website).  The online platform (eNPS) of NPS Trust Documents required  Date of Birth proof of the Minor (Birth certificate, School leaving certificate, Matriculation Certificate, PAN, Passport)  KYC of the Guardian shall be carried out by submitting Proof of Identity and Address (Aadhaar, Driving License, Passport, Voter ID card, NREGA Job Card, National Population Register)  Permanent Account Number (PAN) of the Guardian or Form 60 declaration (Rule 114B).  NRE / NRO Bank Account (solo or joint) of the minor in case guardian is NRI / OCI Issuance of PRAN In the name of minor Contribution  Account Opening contribution: Min Rs. 1,000 /- and Max no limit.  Subsequent contribution: Min Rs. 1,000 /- p.a. and Max no limit. Pension Fund  Guardian can choose any one of the Pension Fund registered with Selection PFRDA Investment Choice  Default Choice: Moderate Life Cycle Fund -LC-50(50% equity).  Auto Choice: Guardian can choose Lifecycle Fund - Aggressive -LC-75(75% equity), Moderate LC-50 (50% equity) or Conservative-LC-25 (25% equity) as per his/her risk appetite.  Active Choice: Guardian actively decides allocation of funds across Equity (upto 75%), Corporate Debt (upto 100%), Government Securities (upto 100%) and Alternate Asset (5%). Upon attainment of  Seamless shift to NPS Tier – I (All Citizen) : fresh KYC of the minor within age of 18 years three months from date of attainting 18 years. Upon transitioning, the features, benefits, and exit norms of the NPS-Tier I for All Citizen Model will apply Prepared by Central Bank of India, CLD Pune  The Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce and Industry, has recently launched a digital platform aimed at strengthening India’s startup ecosystem in the name of BHASKAR (Bharat Startup Knowledge Access Registry).  Deposit Insurance and Credit Guarantee Corporation (DICGC) has recently introduced Claim Status Tracker ‘ - Daava Soochak‟, a user-friendly online tool to provide depositors with updates on their claims.  Reserve Bank of India is set to launch a nationwide 'Unified Lending Interface' (ULI) platform, aiming to revolutionize the lending landscape in India by streamlining the credit appraisal process, particularly for small and rural borrowers.  The Reserve Bank of India has asked lenders to examine wilful defaulters in all Non-Performing Assets (NPA) accounts with an outstanding amount of Rs 25 lakh and above and said the process should be completed in six months. The new norms will come into force after 90 days, that is, from November 1, 2024.  The committee / authority for declaration of willful defaulter is headed by ED and order of the committee is reviewed by a committee headed by MD & CEO of the Bank.  Chairman of the Financial Sector Development Council (FSDC) - Secretary of the Department of Financial Services (DFA).  For classifying borrowers as Non-Cooperative, the cut-off limit is borrowers having aggregate fund- based and non-fund based facilities of Rs. 50 million or more. “Unified Pension Scheme” (UPS) for all central government employees (Sept 2024): The salient features of the UPS are: (a) Assured pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service. (b) Assured family pension: Assured family pension shall be paid at the rate of 60% of pension of the employee immediately before her/his demise. (c) Assured minimum pension: It is paid at the rate of Rs. 10,000 per month on superannuation after minimum 10 years of service. (d) Inflation indexation: It will be provided on assured pension, assured minimum pension and assured family pension. The Dearness Relief (DR) will be based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). (e) Lump sum payment at superannuation in addition to gratuity at the rate of 1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service. This payment will not reduce the quantum of assured pension. Modifications in Peer to Peer Lending Platform Guidelines : (a) A NBFC-P2P shall not provide or arrange any credit enhancement or credit guarantee. NBFC-P2P shall not assume any credit risk, either directly or indirectly, arising out of transactions carried out on its platform. Entire credit risk has to be borne by the lenders only. A declaration from lenders shall be obtained confirming that he/she has understood this fact completely. (b) A NBFC-P2P shall not cross sell any product except for loan specific insurance products. NBFC-P2P shall not cross sell any insurance product also which is in the nature of credit enhancement or credit guarantee.  IBBI has decided to provide a Valuation Report Identification Number (VRIN) for each valuation conducted under IBC-2016.  ONDC (Open Network for Digital Commerce) enters credit space- launches paperless 6-minute loan service.  ONDC is a private non-profit Section 8 company established by the Department for Promotion of Industry and Internal Trade of Government of India to develop open e-commerce in the country in the year 2021.  Experian India has recently launched “AiDRIAN”, an AI-based tool to detect potential fraud at its source. Prepared by Central Bank of India, CLD Pune  RBI has recently proposed to transition CTS from the current approach of batch processing to continuous clearing with 'on-realisation settlement'. The clearing cycle will reduce from the present T+1 day to a few hours. Co Lending: Reduction in Government shareholding under 75% in PSBs: Ministry of finance has recently instructed Public Sector banks to initiate appropriate measures to reduce Government of India shareholding to less than 75%. As per the SEBI’s norm minimum public shareholding (MPS) in any Public Ltd company shall not be less than 25%. Out of 12 public sector banks (PSBs), four were complying with MPS norms as on March 31, 2023.  Share of GOI in our Bank is 93.08%.  The Following schemes available under JanSamarth portal: NITI Aayog has recently launched the 'Vocal for Local' initiative under its Aspirational Blocks Programme. This initiative aims to encourage a spirit of self-reliance among the population of Aspirational Blocks, propelling them towards sustainable growth and prosperity. In order to encourage these products, a dedicated window for Aspirational Blocks Programme under the brand name ‘Aakanksha’ on GeM portal has been established.  NEFT and RTGS functioning on a 24x7x365 basis from December 16, 2019 and December 14, 2020 respectively, NEFT – hourly batches (total batches in 24 hr are 48).  If the NEFT transaction is not credited or returned within two hours after batch settlement, then the bank is liable to pay penal interest to the affected customer at the current RBI LAF Repo Rate plus 2% for the period of delay / till the date of credit or refund, as the case may be, is afforded to the customers’ account without waiting for a specific claim to be lodged by the customer in this regard.  Supreme Court’s decision on taxability of fringe benefits: "Fringe benefits" refer to additional advantages or perks beyond an employee's regular salary. An employer usually gives 'fringe benefits' as an added incentive or reward for performance. Employees (including bank employees) have to pay income tax Prepared by Central Bank of India, CLD Pune on the difference between the interest rate of loans availed by them from their employer and the prime lending rate of the State Bank of India (SBI).  Foreign Exchange Management (Deposit) Regulations, 2024 - In a recent amendment to FEMA- 1999, RBI has allowed a person resident outside India to open, hold and maintain an interest- bearing account in Indian Rupees and / or foreign currency with an authorised dealer in India for the purpose of posting and collecting margin in India, for a permitted derivative contract entered into by such person with an authorized dealer.  Penalties for bank branches & Currency Chests for deficiency in customer service: Sr.No. Nature of Irregularity Penalty i. Shortages in soiled note remittances and currency For notes in denomination upto ₹.50- chest balances ₹.50/- per piece in addition to the loss For notes in denomination of ₹.100 & above- Equal to the value of the denomination per piece in addition to the loss. For coins in all denominations - equal to the value of the denomination per piece in addition to the loss ii. Counterfeit notes detected in soiled note Penalty at 100% of the notional value of Counterfeit remittances and currency chest balances. Notes, in addition to the recovery of loss to the extent of the notional value of such notes. iii. Mutilated notes detected in soiled note ₹50/- per piece irrespective of the denomination in remittances and currency chest balances addition to the loss. iv. Non-compliance with operational guidelines by Penalty of ₹ 5000 for each irregularity. currency chests detected by RBI officials Penalty will be enhanced to ₹.10,000 in case of a) Non-functioning of CCTV repetition. b) Branch cash/documents kept in strong room c) Non-utilization of NSMs for sorting of notes Penalty will be levied immediately. (NSMs not used for sorting of high denomination notes received over the counter or not used for sorting notes remitted to chest/RBI) v. Violation of any term of agreement with RBI (for ₹ 10,000 for any violation of agreement or deficiency opening and maintaining currency chests) or of service. deficiency in service in providing exchange facilities, as detected by RBI officials e.g.. ₹ 5 lakh in case there are more than 5 instances of violation of agreement/deficiency in service by the a) Non-issue of coins over the counter to any branch. The levy of such penalty will be placed in member of public despite having stock. public domain. b) Refusal by any bank branch to exchange soiled notes / refusal by any currency chest branch to Penalty will be levied immediately. adjudicate mutilated notes tendered by any member of public c) Non conduct of surprise verification of chest balances, at least at bimonthly intervals, by officials unconnected with the custody thereof and by the officials from the Controlling Office once in six months. d) Denial of facilities/services to linked branches of other banks. e) Non acceptance of lower denomination notes (i.e. denomination of ₹ 50 and below) tendered by members of public and linked bank branches. f) Detection of mutilated /counterfeit notes in re- issuable packets prepared by the currency chest branches. vi. Non-replenishment of ATMs Cash-out at any ATM of more than ten hours in a month will attract a flat penalty of ₹ 10,000/- per ATM. Prepared by Central Bank of India, CLD Pune  RBI Instructions on Guarantees and Co-acceptances : (a) As regards the purpose of the guarantee, as a general rule, the banks should confine themselves to the provision of financial guarantees and exercise due caution with regard to performance guarantee business. (b) No bank guarantee should normally have a maturity of more than 10 years. However banks can issue guarantees for more than 10 years also as per requirement of customers. (c) Banks should, in general, refrain from issuing non-fund based facilities to/on behalf of constituents who do not enjoy credit facilities with them. However, banks are permitted to grant non-fund based facilities, including partial credit enhancement, to those customers, who do not avail any fund based facility from any bank in India after conducting proper due diligence. (d) BG /LC may be issued by scheduled commercial banks to clients of co-operative banks against counter guarantee of the co-operative bank as permitted hitherto. (e) Bank guarantees issued for Rs.50,000/- and above should be signed by two officials jointly. (f) In order to provide further flexibility to banks on their loan policies, limit on unsecured exposure of banks was withdrawn and banks' Boards have been given the freedom to fix their own policies on their unsecured exposures. (g) Banks may issue guarantees on behalf of share and stock brokers in favour of stock exchanges in lieu of security deposit with minimum margin of 50 per cent while issuing such guarantees. A minimum cash margin of 25 per cent (within the above margin of 50 per cent) should be maintained in respect of such guarantees issued by banks. (h) Banks should not execute guarantees for enabling placement of funds with NBFCs or other non-banking entities directly or indirectly, including inter-company deposits/ loans. (i) Where guarantees are invoked, payment should be made to the beneficiaries without delay and demur. An appropriate procedure for ensuring such immediate honouring of guarantees should be laid down so that there is no delay on the pretext that legal advice or approval of higher authorities is being obtained.  Enhanced Access & Service Excellence (EASE) is an initiative by the Department of Financial Services (DFS) as part of the PSB Reforms Agenda initiated with effect from the financial year 2018- 19. Post completion of EASE 6.0 reforms in FY 2023-24, finance ministry has released EASE 7.0 reforms agenda for FY 2024-25 (3 Pillars - Economic Development; Customer Delight; Resilient Banking). EASE 7.0 reforms focus on 5 key themes and 21 Action Points (APs): 1. Banking towards 'Viksit' Bharat 2. Excellence in customer service 3. Adoption of new-age technology and other advanced capabilities 4. Effective risk/ fraud management, collections and recovery 5. Developing employees for emerging banking priorities  RBI has launched three of it’s major digital initiatives recently viz. PRAVAAH portal, Retail Direct Mobile App and FinTech Repository. (a)“PRAVAAH‟ (Platform for Regulatory Application, VAlidation and AutHorisation) portal: PRAVAAH is a secured and centralised web-based portal for any individual or entity to seek authorisation, license or regulatory approval on any reference made by it to the RBI. Presently 60 application forms are available under the portal. (b) Mobile Application for RBI Retail Direct portal: The retail direct portal was launched in November 2021 to facilitate retail investors to open their Retail Direct Gilt accounts with the RBI under the Retail Direct Scheme. The scheme allows retail investors to buy G-Secs in the primary auctions as well as buy and sell G-Secs in the secondary market. (NDS-OM platform) Prepared by Central Bank of India, CLD Pune (c) FinTech Repository: Simultaneously, a related repository for only RBI regulated entities (banks and NBFCs) on their adoption of emerging technologies (like AI, ML, Cloud Computing, DLT, Quantum, etc.), called EmTech Repository is also being launched. The FinTech and EmTech Repositories are secure web based applications and are managed by the Reserve Bank Innovation Hub (RBIH).  Airbus Helicopters and Small Industries Development Bank of India (SIDBI) have recently signed a MoU for financing the purchase of Airbus helicopters in India. Priority Sector Lending – Amendments to the RBI Master Directions: From FY 2024-25 onwards, a higher weight (125%) would be assigned to the incremental priority sector credit in the identified districts where the credit flow is comparatively lower (per capita PSL less than ₹9,000), and a lower weight (90%) would be assigned for incremental priority sector credit in the identified districts where the credit flow is comparatively higher (per capita PSL greater than ₹42,000). Targets /Sub-targets for Priority sector: The targets and sub-targets set under priority sector lending, to be computed on the basis of the ANBC/ CEOBE as applicable as on the corresponding date of the preceding year, are as under: Domestic commercial banks (excl. RRBs & Foreign banks with Categories SFBs) & foreign banks Regional Rural Banks Small Finance Banks less than 20 branches with 20 branches and above Total Priority 40 per cent of ANBC as 40 per cent of ANBC 75 per cent of ANBC or 75 per cent of ANBC Sector computed in para 6 as computed in para 6 CEOBE whichever is or CEOBE whichever is below or CEOBE below or CEOBE higher; However, higher. whichever is higher whichever is higher; lending to Medium out of which up to 32% Enterprises, Social can be in the form of Infrastructure and lending to Exports and Renewable Energy shall not less than 8% can be reckoned for priority be to any other priority sector achievement only sector up to 15 per cent of ANBC. Agriculture 18 per cent of ANBC or Not applicable 18 per cent ANBC or 18 per cent of ANBC CEOBE, whichever is CEOBE, whichever is or CEOBE, whichever is higher; out of which a higher; out of which a higher; out of which a target of 10 per cent is target of 10 per cent is target of 10 per cent is prescribed for Small and prescribed for SMFs prescribed for SMFs Marginal Farmers (SMFs) Micro 7.5 per cent of ANBC or Not applicable 7.5 per cent of ANBC or 7.5 per cent of ANBC Enterprises CEOBE, whichever is CEOBE, whichever is or CEOBE, whichever is higher higher higher Advances to 12 per cent of ANBC or Not applicable 15 per cent of ANBC or 12 per cent of ANBC Weaker CEOBE, whichever is CEOBE, whichever is or CEOBE, whichever is Sections higher higher higher To improve flow of credit to MSE sector, following measures have been added: (a)Timeline for credit decisions for loans up to ₹25 lakh to units in the MSE segment shall not be more than 14 working days. For loans above the aforementioned limit, timelines shall be as per the Board approved sanction time norms. (b) All credit related information pertaining to MSMEs including timelines for credit decisions, indicative document checklist etc., shall be displayed under a separate tab prominently on the bank's website. Prepared by Central Bank of India, CLD Pune (c) Banks shall put in place a structured mechanism to monitor the entire gamut of credit related issues pertaining to the MSE sector. Banks shall put in place a robust Credit Proposal Tracking System (CPTS) to facilitate central registration and a system of e-tracking of all MSME loan applications. (d) Banks shall monitor the loan application disposal process and pendency beyond sanction time norms at appropriate levels on a quarterly basis. (e) Banks shall, within the Board approved sanction time norms, convey to the MSME borrowers in writing the main reason/reasons which, in the opinion of the bank after due consideration, have led to rejection of the loan applications. (f) Banks shall implement a system-driven comprehensive performance management information system (MIS) at branches and supervisory levels (region, zone, head office). The Performance should be critically evaluated on a regular basis. The credit flow to MSE sector shall also be reviewed by the Board of the banks at periodic intervals. (g) SLBC/UTLBC Convenor banks shall display the list of identified MSME clusters by government of India on their portals and update them semi-annually as at end- March and end-September. (h) The lead bank of a district shall promote 'credit-linkage' in all MSME clusters located within the district. The SLBC /UTLBC Convenor banks shall disclose the credit extended to clusters in the State/UT on their portal every quarter in the prescribed format issued by RBI.  Loans up to ₹75 lakh against pledge/hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months against NWRs/eNWRs and up to ₹50 lakh against warehouse receipts other than NWRs/eNWRs.  RBI Revision in definition of Bulk deposit – (a)Single Rupee term deposits of Rs 3 crore (Rupees Three Crore) and above for Scheduled Commercial Banks (excluding RRBs) and Small Finance Banks (b) Single Rupee term deposits of Rs. 1 crore (Rupees One Crore) and above for Local Area Banks (LAB) as applicable in case of Regional Rural Banks (RRB).  SAARC Currency Swap Framework - SAARC Currency Swap Facility came into operation on November 15, 2012 with an intention to provide a backstop line of funding for short term foreign exchange liquidity requirements or balance of payment crises of the SAARC countries till longer term arrangements are made.  Krishi Sakhi Programme of Government of India: Ministry of Agriculture and Farmers‟ Welfare and the Ministry of Rural Development have initiated Krishi Sakhi convergence program (KSCP) in September 2023. Features of programme as : Under the 'Lakhpati Didi' program, the aim is to create 3 crore Lakhpati Didis, one dimension of which is ‘Krishi Sakhi‟. Krishi Sakhi Convergence Program (KSCP) aims to transform rural India through the empowerment of rural Women as Krishi Sakhi, by imparting training and certification of Krishi Sakhis as Para-extension Workers. This certification course aligns with the objectives of the “Lakhpati Didi” Program. Krishi Sakhis are provided with required training in Agri economic related activities in coordination with MANAGE- Hyderabad.  Viability Gap Funding (VGF) scheme for Offshore Wind Energy Projects.  RBI launches its Third Global Hackathon – HaRBInger 2024: under the following themes and problem statements: Theme 1: Zero Financial Frauds - The components under this theme includes, (a) Real time prediction, detection and prevention of frauds in financial transactions using alternate sources of data including publicly available information. (b) Ensuring transaction anonymity in token-based (CBDC) Prepared by Central Bank of India, CLD Pune transactions while maintaining financial system integrity. (c) Identifying mule bank accounts/ payment wallets. Theme 2: Being Divyang Friendly- The components under this theme includes (a) Accurately identifying banknotes by visually impaired. Being part of HaRBInger 2024 gives an opportunity to the participants to get mentored by industry experts and exhibit their innovative solutions in the financial sector before an eminent jury and win exciting prizes under each problem statement.  RBI@100: Reserve Bank approaches its centenary year, RBI@100, it will gear up even more to remain future-ready for India’s fast growing economy. It will take steps to enhance India’s global footprint. 14 - Aspirational Goals for RBI@100 in a Multi-Year Time Frame 1. Monetary Policy and Liquidity Management 2. Globalisation of India’s Financial Sector 3. Making Reserve Bank’s Supervision a Global Model 4. Deepening and Universalisation of Digital Payment Systems – Domestically and Globally 5. Deepening Financial Inclusion 6. Expanding Credit Availability 7. Capital Account Liberalisation and Internationalisation of the Indian Rupee (INR) 8. Dealing with Climate Change 9. Adoption of Artificial Intelligence/Machine Learning (AI/ML) in the Reserve Bank 10. Financial Sector Cloud Infrastructure 11. Transformational Shifts in Data Collection, Processing and Storage 12. Safeguarding Users Against Payment Frauds 13. Developing a Secure Global Financial Messaging Hub 14. Making Reserve Bank’s Human Resources and Infrastructure Future Ready Operational Risk Management in Banking System: As per the guidance note issued by RBI, Operational Risk Management and Operational Resilience has been built on three (3) pillars: Prepared by Central Bank of India, CLD Pune Key Facts Statement (KFS) for Loans & Advances: RBI has instructed banks to disclose Key Facts Statement (KFS) and Annual Percentage Rate (APR) on loan accounts extended by them in cases of all retail and MSME term loan products in order to empower borrowers to take an informed financial decision. Under these guidelines, RBI has recently issued harmonised instructions: (a) Key Facts: Key facts of a loan agreement between a bank and a borrower are legally significant and deterministic facts that satisfy basic information required to assist the borrower in taking an informed financial decision. (b) Key Facts Statement (KFS): It is a statement of key facts of a loan agreement, in simple and easier to understand language, provided to the borrower in a standardised format. (c) Annual Percentage Rate (APR): It is the annual cost of credit to the borrower which includes interest rate and all other charges associated with the credit facility. (d) Equated Periodic Instalment (EPI): It is an equated or fixed amount of repayments, consisting of both the principal and interest components, to be paid by a borrower towards repayment of a loan at periodic intervals for a fixed number of such intervals; and which result in complete amortisation of the loan. EPIs at monthly intervals are called EMIs. (e) Banks shall provide a KFS to all prospective borrowers to help them take an informed view before executing the loan contract, as per the standardised format provided by RBI. (f) KFS shall be provided with a unique proposal number and shall have a validity period of at least three working days for loans having tenor of seven days or more, and a validity period of one working day for loans having tenor of less than seven days. (g) The KFS shall also include a computation sheet of annual percentage rate (APR), and the amortisation schedule of the loan over the loan tenor. (h) Any fees, charges, etc. which are not mentioned in the KFS, cannot be charged by the banks to the borrower at any stage during the term of the loan, without explicit consent of the borrower. (i) Credit card receivables are exempted from these provisions. Voluntary transition of Small Finance Banks (SFB) to Universal Banks: As per RBI, eligibility criteria for transition: (a)The bank should have scheduled status with a satisfactory track record of performance for a minimum period of five years. (b) Shares of the bank should be listed. (c) Bank should have a minimum net worth of ₹1,000 crore as at the end of the previous quarter (audited). (d) Bank should be meeting the prescribed CRAR requirements for SFBs. (e) Bank should have a net profit in the last two financial years. (f) Bank should have GNPA and NNPA of less than or equal to 3 percent and 1 percent respectively in the last two financial years. The following conditions shall be applicable with regard to shareholding pattern: (a) There is no mandatory requirement for an eligible SFB to have an identified promoter. However, the existing promoters of the eligible SFB, if any, shall continue as the promoters on transition to Universal Bank. (b) Addition of new promoters or change in promoters shall not be permitted for an eligible SFB while transitioning to Universal Bank. (c) There shall be no new mandatory lock-in requirement of minimum shareholding for existing promoters in the transitioned Universal Bank. (d) There shall be no change to the Prepared by Central Bank of India, CLD Pune promoter shareholding dilution plan already approved by the Reserve Bank. (e) The eligible SFBs having diversified loan portfolio will be preferred. Maximum UPI Inward credit limits for P2PM merchants: NPCI has increased maximum UPI inward credit limits for P2PM merchants with effective from 30th April 2024 as: Maximum UPI Inward credit to P2PM Sr. No. Particulars merchant 1 Per Transaction Rs. 10,000/- 2 Cumulative per day (24 hours) Rs. 25,000/- 3 Cumulative per month (30 days) Rs. 1,00,000/- .  UPI - Enhancement of limits:  i) UPI123Pay: UPI123 was launched in March 2022, with a view to enable feature-phone users to use UPI. This facility is now available in 12 languages. Currently, the per-transaction limit in UPI123Pay is capped at ₹5000 is enhanced the per-transaction limit to ₹10,000.  ii) UPI Lite: A limit of ₹500 per transaction and an overall limit of ₹2000 per UPI Lite wallet, is increased to ₹5,000 and per-transaction limit to ₹1,000.  Switch/Conversion Transactions with the Government of India - through the Switch Transaction module provided in the e-Kuber portal.  The cash withdrawal limit from Points of Sale (PoS) terminals using debit cards and open system prepaid cards issued by banks in India has been rationalised to ₹2,000 per transaction within an overall monthly limit of ₹10,000 across all locations (Tier 1 to 6 centres). Merchants with UPI payment inward credit of Rs. 1,00,000/- per month or more consecutively for three months must be formally acquired by the payee payment service provider under P2M category with applicable Merchant category codes (MCC). Fair Practices Code for Lenders – Charging of Interest – During the course of the onsite examination of REs for the period ended March 31, 2023, the Reserve Bank came across instances of lenders resorting to certain unfair practices in charging of interest. Some of the unfair practices observed are briefly explained below: a. Charging of interest from the date of sanction of loan or date of execution of loan agreement and not from the date of actual disbursement of the funds to the customer. Similarly, in the case of loans being disbursed by cheque, instances were observed where interest was charged from the date of the cheque whereas the cheque was handed over to the customer several days later. b. In the case of disbursal or repayment of loans during the course of the month, some REs were charging interest for the entire month, rather than charging interest only for the period for which the loan was outstanding. c. In some cases, it was observed that REs were collecting one or more instalments in advance but reckoning the full loan amount for charging interest. Therefore, in the interest of fairness and transparency, all REs are directed to review their practices regarding mode of disbursal of loans, application of interest and other charges and take corrective action, including system level changes, as may be necessary, to address the issues highlighted above. Incentive Scheme for CSPs & BCs of Hilly States/UTs by NABARD: A pilot scheme for providing financial assistance to Customer Service Providers/Business Correspondents (CSPs/BCs) of Banks operating in north Eastern States was introduced by NABARD in August 2023. It has been decided to extend the similar scheme to CSPs/BCs of banks operating in Hilly States/UTs viz., Himachal Pradesh, Jammu & Kashmir, Ladakh and Uttarakhand. The features of the incentive scheme are: (a) The incentive under this scheme will be over and above the fixed commission and variable commission already being paid by the Banks. (b) Operative Period: The operative period of the scheme will be one year, i.e., from 01 April 2024 to 31 March 2025. (c) Eligible Prepared by Central Bank of India, CLD Pune Locations: The Operators working in rural centres, i.e., Tier 5 & Tier 6 Centres of hilly states/UTs (Himachal Pradesh, Jammu & Kashmir, Ladakh, Uttarakhand). (d) Eligibility for claiming incentive under the Scheme: Financial Incentive of ₹1,000/- per month to be paid to BCs/CSPs of banks placed in hilly states/UTs for performing 50 and above financial transactions per month on an average, subject to a maximum of two top performing BCs per village.  SJVN Limited (Satluj Jal Vidyut Nigam) - India's first Multi-purpose (Combined Heat & Power) Green Hydrogen Pilot Project.  RBI’s announcement regarding UPI and CBDC: (a) Enabling UPI for Cash Deposit Facility: Cash Deposit Machines (CDMs) deployed by banks enhance customer convenience while reducing cash handling load on bank branches. The facility of cash deposit is presently available only through use of debit cards. Given the popularity and acceptance of UPI, as also the benefits seen from the availability of UPI for card-less cash withdrawal at ATMs, it is now proposed to facilitate cash deposit facility through use of UPI. (b) UPI access for Prepaid Payment Instruments (PPIs) through third-party applications: At present, UPI payments from bank accounts can be made by linking a bank account through the UPI App of the bank or using any third-party UPI application. However, the same facility is not available for PPIs. PPIs can currently be used to make UPI transactions only by using the application provided by the PPI issuer. To provide more flexibility to PPI holders, it is now proposed to permit linking of PPIs through third-party UPI applications. This will enable the PPI holders to make UPI payments like bank account holders. (c) Distribution of CBDCs through Non-bank Payment System Operators: Central Bank Digital Currency (CBDC) pilots in the Retail and Wholesale segments are underway with more use cases and more participating banks. Continuing with this approach, it is proposed to make CBDC-Retail accessible to a broader segment of users in a sustained manner, by enabling non-bank payment system operators to offer CBDC wallets. This is expected to enhance access and expand choices available to users apart from testing the resiliency of the CBDC platform to handle multi-channel transactions. Necessary changes will be made to the system to facilitate this by RBI.  Insurance Regulatory and Development Authority of India (IRDAI) has removed the age limit (previously 65 years) for purchasing health insurance policies, with effect from April 1, 2024. Closure of Credit Card : Failure on the part of the card-issuers to complete the process of closure within seven working days shall result in a penalty of ₹500 per calendar day of delay payable to the cardholder, till the closure of the account provided there is no outstanding in the account.  Issue of Debit Card : No bank shall issue debit cards to cash credit/loan 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. 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.  Issue of Co-branded Cards: The co-branded card shall explicitly indicate that the card has been issued under a co-branding arrangement. The co-branding partner shall not advertise/market the co- branded card as its own product. In all marketing/advertising material, the name of the card-issuer shall be clearly shown.  The co-branding partner (CBP) shall not have access to information relating to transactions undertaken 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 Prepared by Central Bank of India, CLD Pune related data may be drawn directly from the card-issuer's system in an encrypted form and displayed in the CBP's 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.  If the card-issuer does not respond within a period of 30 days after filing of the complaint or rejects the complaint wholly/partly or if the customer is not satisfied with the response/resolution given by the card-issuer, the customer can lodge his/her complaint with the Ombudsman. Liberalised Remittance Scheme (LRS) : Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit MAXIMUM up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both, PAN number compulsory. ‘Non-Debt Instruments (NDI) as determined by Central Government by Gazette Notification S.O. 3722 (E) dated October 16, 2019, means the following instruments; namely: - a. all investments in equity instruments in incorporated entities: public, private, listed and unlisted; b. capital participation in LLP; c. all instruments of investment recognised in the FDI policy notified from time to time; d. investment in units of Alternative Investment Funds (AIFs), Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InvITs); e. investment in units of mutual funds or Exchange-Traded Fund (ETFs) which invest more than fifty per cent in equity; f. junior-most layer (i.e. equity tranche) of securitisation structure; g. acquisition, sale or dealing directly in immovable property; h. contribution to trusts; and i. Depository receipts issued against equity instruments.  “Know Your Client (KYC) Identifier” means the unique number or code assigned to a customer by the Central KYC Records Registry.  Officially Valid Document” (OVD) means the passport, the driving licence, proof of possession of Aadhaar number, the Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register containing details of name and address.  PAN is not OVD  Customer Due Diligence (CDD) means identifying and verifying the customer and the beneficial owner using reliable and independent sources of identification.  Application Programming Interfaces (APIs) - To safeguard applications against risks emanating from insecure APIs, the PSO shall put in place, inter-alia, the following measures: Authentication and Authorisation - Establish identity of the communicating applications Confidentiality – Ensure that the message content is not tampered with Integrity – Resources are reliably transferred & Availability and Threat Protection – APIs are available when needed, anomalous activities identified and mitigative action taken  USA has the largest Mutual Fund market in the World,  Rs.1 crore loan amounts can be sanctioned by banks to enable the MSME entrepreneurs to avail of their working capital and term loan requirement through Single Window.  Subordinate debts is treated as Quasi-Equity by lenders  The money market is a key component of the financial system. It is a market for short-term funds with maturity ranging from overnight to one year. The basic function of money market is to provide efficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc.  Factoring Act, 2011 defines the ‘Factoring Business’ as “the business of acquisition of receivables of assignor by accepting assignment of such receivables or financing, whether by way of making loans or advances or in any other manner against the security interest over any receivables”. Prepared by Central Bank of India, CLD Pune  Reserve Bank of India has constituted an expert group on Debt resolution under the chairmanship of Mr. KV Kamath. The committee would recommend to the RBI on the financial parameters and their sector-specific benchmark ranges, for deploying in Debt resolution plans. RBI will provide a window under the ‘Prudential Framework on Resolution of Stressed Assets’.  Government of India has approved the Scheme for the amalgamation of the Punjab and Maharashtra Co-operative Bank Ltd (PMC Bank) with Unity Small Finance (USF) Bank Ltd.  Madhabi Puri Buch - first woman to lead the Securities and Exchange Commission (SEBI).  India has been ranked at 120th position in the Sustainable Development Report 2021 or Sustainable Development Index 2021.  Maharashtra government has introduced a scheme that allows prisoners to obtain personal loans from banks of up to Rs. 50,000 to help their families improve their living conditions and meet expenses related to their legal matters.  SEBI mandates Business Responsibility and Sustainability Reporting (BRSR) in India.  Asian Infrastructure Investment Bank (AIIB) – Headquarter – Beijing.  The United Arab Emirates (UAE) was removed from the Financial Action Task Force’s (FATF) “grey list” on February 23, 2024.  Solar Energy Corporation of India Limited (SECI) has successfully commissioned India’s largest Battery Energy Storage System in Chhattisgarh.  The Reserve Bank of India (RBI) has been conducting Financial Literacy Week (FLW) every year since 2016. The 2024 FLW will be observed from February 26 to March 1, 2024 with the theme “Make a Right Start – Become Financially Smart”. The FLW aims to promote financial literacy by spreading financial education messages to the public.  India has surpassed China in the MSCI Emerging Markets Investable Market Index (IMI), becoming the largest country by weight for the first time.  The Bureau of Indian Standards (BIS) is developing a National Agriculture Code (NAC) similar to the National Building and Electrical Codes.  The Rs.5/-note was the first paper currency issued by RBI in January 1938  Karpoori Thakur was posthumously awarded the Bharat Ratna. He was the former Chief Minister of Bihar state.  Kerala government approached the Supreme Court against the Centre’s decision to cap its net borrowing limit, saying it obstructs the state’s financial autonomy protected under the Constitution.  Centralised Receipt and Processing Centre (CRPC) has been set up at RBI, Chandigarh for receiving complaints through physical mode (letter/post).  The Reserve Bank - Integrated Ombudsman Scheme, 2021 (RBI-IOS, 2021)- - not resolved to the satisfaction of the customers or not replied to within a period of 30 day - Non-Scheduled Primary (Urban) Co-operative Banks with a deposit size of ₹50 crore and above and Credit Information Companies - One Nation One Ombudsman’ approach - Ombudsman may award a compensation not exceeding ₹1 lakh to the complainant for loss of the complainant’s time, expenses incurred, harassment and mental anguish suffered by the complainant  UDGAM - Unclaimed Deposits-Gateway to Access inforMation - facilitates the registered users to search unclaimed deposits/accounts across multiple banks at one place in a centralised manner, All unclaimed deposits/accounts that are part of Depositor Education and Awareness (DEA) Fund of RBI can be searched in UDGAM portal.  Unclaimed Deposit Reference Number (UDRN) - unique number generated through Core Banking Solution (CBS) by banks and assigned to each Unclaimed account/ deposit transferred to Depositor Education and Awareness (DEA) Fund of RBI.  interest subvention under Agriculture Infrastructure Fund (AIF) is available for a maximum loan amount of Rs. 2 crore although the loan amount can be higher Prepared by Central Bank of India, CLD Pune FOREIGN TRADE POLICY – 2023 This is effective from April 1, 2023. The policy aims at process re-engineering and automation to facilitate ease of doing business for exporters. It also focuses on emerging areas like dual use high end technology items under SCOMET, facilitating e-commerce export, collaborating with States and Districts for export promotion. The government aims to increase India’s overall exports to USD 2 trillion by 2030, with equal contributions from the merchandise and services sectors. The Key Approach to the policy is based on these 4 pillars: 1. Incentive to Remission 2. Export promotion through collaboration - Exporters, States, Districts, Indian Missions 3. Ease of doing business, reduction in transaction cost and e-initiatives 4. Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamliningSCOMET policy.  Levy of Charges in operative of DEAF accounts: The banks are not permitted to levy penal charges for non-maintenance of minimum balances in any account that is classified as an inoperative account. No charges shall be levied for activation of inoperative accounts.  All Authorised Persons who are Indian Agents under the Money Transfer Service Scheme (MTSS) were required to submit a quarterly statement (within 15 days from the close of the quarter to which it relates).  Service Area Approach (SAA): From Dec 2004, SAA not applicable for lending except under Government Sponsored Schemes. Thus, while the commercial banks and RRBs are free to lend in any rural and semi-urban area, the borrowers have the choice of approaching any branch for their credit requirements.  Incentives for “Currency Distribution & Exchange Scheme (CDES)”: As per the scheme, banks are eligible for the following financial incentives / service charges for setting up requisite infrastructure and facilitating exchange / distribution of notes and coins: Sr. No. Nature of Service Particulars of Incentives / Service Charges i Opening of and a. Capital Cost: Reimbursement of 50% of capital expenditure (inclusive of maintaining CCs at centres all taxes) subject to a ceiling of ₹50 lakh per CC. In the North Eastern having population of less region, up to 100% of capital expenditure is eligible for reimbursement than 1_lakh, in under subject to the ceiling of ₹50 lakh (inclusive of all taxes). banked states b. Revenue cost: Reimbursement of 50% of revenue expenditure (inclusive of all taxes) for the first 3 years. In the North Eastern region, 50% of revenue expenditure (inclusive of all taxes) is eligible for reimbursement for the first 5 years. ii Exchange of soiled notes / a. Exchange of soiled notes – ₹2/- per packet for exchange of soiled notes adjudication of mutilated in the denominations up to ₹50/- and below. notes over the counter at b. Adjudication of mutilated notes – ₹2/- per piece. bank branches iii Distribution of coins a. ₹65/- per bag1 for distribution of coins. b. An additional incentive of ₹10/- per bag shall be paid for coin distribution in rural and semi-urban areas on the submission of a Concurrent Auditor (CA) certificate to this effect. iv Cash deposit by non-chest Service charge to be levied by the CC on the non-chest branches branches under Linkage a. Large modern CCs2 – ₹8/- per 100 pieces. scheme with CCs b. Other CCs – ₹5/- per 100 pieces. Prepared by Central Bank of India, CLD Pune Penal Provisions in reporting of transactions / balances at Currency Chests:  Reporting of Currency Chest (CC) Transactions: The minimum amount of deposit into / withdrawal from currency chest shall be ₹1,00,000/- and thereafter, in multiples of ₹50,000/-.  Time Limit for Reporting - The currency chests shall invariably report all transactions through CyM-CC portal on the same day by 7 pm.  Delay in Reporting - Penal interest shall be levied at the rate of 2% over the prevailing Bank Rate for the period of delayed reporting / wrong reporting / inclusion of ineligible amounts in chest balances.  Service/ Processing charges: No loan related and ad hoc service charges/inspection charges should be levied on priority sector loans up to ₹25,000. In the case of eligible priority sector loans to SHGs/ JLGs, this limit will be applicable per member and not to the group as a whole.  Rates for agency commission: As per agency bank agreement, RBI pays agency commission at rates determined by it. The rates applicable with effect from July 1, 2019 are as under: Sr. No. Type of Transaction Unit Revised Rate a. (i) Receipts - Physical mode Per transaction ₹40/- (ii) Receipts - e-mode Per transaction ₹9/- b. Pension Payments Per transaction ₹75/- c. Payments other than Pension Per ₹100 turnover 6.5 paise per ₹100 .  Consumer Protection Act, 2021 : revised Jurisdiction: District Commission – up to ₹50 lakh State Commission - ₹50 lakh to ₹2 Crore National Commission – above ₹2 Crore  National Consumer Disputes Redressal Commission (NCDRC) shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration is above 10 crores.  “Politically Exposed Persons” (PEPs) are individuals who are or have been entrusted with prominent public functions by a foreign country, including the Heads of States/Governments, senior politicians, senior government or judicial or military officers, senior executives of state-owned corporations and important political party officials.  ARCs (Asset Reconstruction Companies) existing as on October 11, 2022 have been provided the following glide path to achieve the minimum required NOF (Net Owned Fund) of ₹300 crore: Minimum required NOF on by March 31, 2024 by March 31, 2026 October 11, 2022 ₹100 crore ₹200 crore ₹300 crore  Non-resident Indian’ (NRI) is a person resident outside India who is a citizen of India.  Residential Status for Income Tax : An individual will be treated as a Resident in India in any previous year if he / she satisfies any of the following conditions: 1. If he / she is in India for a period of 182 days, or more during the previous year or 2. If he / she is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year. An individual who does not satisfy both the conditions as mentioned above will be treated as Non-Resident in that previous year.  Provisioning for country risk: Banks shall make provisions, with effect from the year ending March 31, 2003, on the net funded country exposures on a graded scale ranging from 0.25 to 100 percent according to the risk categories mentioned below. To begin with, banks shall make provisions as per the following schedule: Risk category ECGC Classification Provisioning Requirement (%) Insignificant A1 0.25 Low A2 0.25 Moderate B1 5 High B2 20 Very high C1 25 Restricted C2 100 Off-credit D 100 . Prepared by Central Bank of India, CLD Pune  Indian Currency: - Fifty paise (half rupee) coin shall be legal tender for any sum not exceeding ten rupees. - Coin of any denomination not lower than one rupee shall be legal tender for any sum not exceeding one thousand rupees. - RBI has not prescribed any limit for coin deposits by customers with banks. Banks are free to accept any amount of coins from their customers - ₹1 notes issued by Government of India - Mobile Aided Note Identifier (MANI) app - for aiding visually impaired persons to identify the denomination of Indian Banknotes  Soiled note - note which has become dirty due to normal wear and tear and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing  Mutilated banknote - is a banknote, of which a portion is missing or which is composed of more than two pieces.  Suspected forged note, counterfeit note or fake note is any note which does not possess the characteristics of genuine Indian currency note.  All-India (House Price Index) HPI increased by 3.3 per cent (y-o-y) in Q1:2024-25 as compared to 4.1 per cent growth in the previous quarter and 5.1 per cent a year ago; annual HPI growth varied widely across the cities - ranging from a high of 8.9 per cent (Kolkata) to a low of -1.7 per cent (Delhi)  Overdraft in PMJDY Accounts can be sanctioned up to a maximum of 4 times of monthly average balance in the existing account for last 6 months.  Gold Monetization Scheme, 2015 : - Minimum deposit at any one time shall be 10 grams of raw gold (bars, coins, jewellery excluding stones and other metals). There is no maximum limit for deposit under the scheme. - depositor get back his gold at maturity: Interest Sr. Minimum Lock- Principal Repayment Type of Deposit Duration Repayment on No. in Period on Maturity Maturity i. Short Term Bank Deposit As determined by 1-3 years In INR with (STBD)* banks In gold or INR reference to value ii. Medium Term Government equivalent of the value 5-7 years 3 years of gold in terms of Deposit (MTGD) of deposited gold at Indian Rupees at iii. Long Term Government time of redemption 12-15 years 5 years the time of deposit. Deposit (LTGD) * with effect from April 05, 2021 Prepared by Central Bank of India, CLD Pune Acronyms API Application Programming Interface ASLC Application Security Life Cycle ATM Automated Teller Machine BCP Business Continuity Plan BIN Bank Identification Number Completely Automated Public Turing test to tell Computers and CAPTCHA Humans Apart CCMP Cyber Crisis Management Plan CERT-In Indian Computer Emergency Response Team CISO Chief Information Security Officer CSP Cloud Service Provider DICGC Deposit Insurance and Credit Guarantee Corporation DR Disaster Recovery DCCO ‘Date of Commencement of Commercial Operations EoLS End of Life support FFMC Full Fledged Money Changers IDRBT Institute for Development and Research in Banking Technology IP Internet Protocol IS Information System ISMS Information Security Management System IT Information Technology KPI Key Performance Indicator KRI Key Risk Indicator LEA Law Enforcement Agency LSP Lending Service Provider LLMS Loan Lifecycle Management System NCIIPC National Critical Information Infrastructure Protection Centre OEM Original Equipment Manufacturer OTP One Time Password PCI Payment Card Industry PCI-DSS Payment Card Industry-Data Security Standard PCI-P2PE Payment Card Industry-Point to Point Encryption PCI-PTS Payment Card Industry-PIN Transaction Security PDC Primary Data Centre PFMS Public Financial Management System PIN Personal Identification Number PoS Point of Sale PPI Prepaid Payment Instrument PSO Payment System Operator PSS Payment and Settlement Systems PT Penetration Testing RERFA Reserve for Exchange Rate Fluctuations Account RPO Recovery Point Objective RTO Recovery Time Objective SDLC Software Development Life Cycle S-SDLC Secure-Software Development Life Cycle SIEM Security Information and Event Management SIM Subscriber Identification Module SMS Short Message Service SOC Security Operations Centre VA Vulnerability Assessment VPA Virtual Payment Address WLAO White Label ATM Operator FCA Foreign Currency Account PFMS Public Finance Management System CRILC Central Repository of Information on Large Credits MTSS Money Transfer Service Scheme Prepared by Central Bank of India, CLD Pune FATF Financial Action Task Force CFT Countering Financing of Terrorism AFA Additional Factor of Authentication OVD Officially Valid Document LRS Liberalised Remittance Scheme - under LRS - IFSC means - International Financial Services Centre IFSC under LRS - IFSC means - International Financial Services Centre IFSC Indian Financial Service Code (for NEFT & RTGS) SWIFT Society for Worldwide Interbank Financial Telecommunications, Headquarter - Belgium RWA- Risk-Weighted Assets UDRN Unclaimed Deposit Reference Number Prepared by Central Bank of India, CLD Pune Major foreign currency accounts that can be opened in India by a resident individual: Resident Foreign Currency Exchange Earners Foreign Resident Foreign Currency Particulars (Domestic) [RFC(D)] Currency (EEFC) Account (RFC) Account Account Who can open Exchange Earners Individuals Individuals the account Joint account Jointly with eligible persons; Jointly with any person Same as EEFC eligible to open the or With resident relative(s) on former or survivor’ basis. Relative as defined under Companies Act, 2013 (viz. members of HUF, spouse, parents, step-parents, son, step-son, daughter-in-law, daughter, son-in- law, brother/sister, step-brother/ step-sister) Relative joint account holder cannot operate the account during the life time of the account holder Type of Current only Current only Current/ savings/ term Account deposits Interest Non-interest earning Non-interest earning De-regulated (As decided by the AD bank) Permitted 1) 100% of foreign exchange 1) Foreign exchange received 1) Foreign exchange received Credits received on account of export as payment/ service/ gift/ by him as superannuation/ transactions. honorarium while on visit other monetary benefits from abroad or from a non- overseas employer 2) advance remittance received by resident who is on a visit to an exporter towards export of India 2) Foreign exchange realised on goods or services conversion of the assets 2) Unspent amount of foreign referred to in Sec 6(4) of FEMA 3) Repayment of loans given to exchange acquired from AD foreign importers for travel abroad 3) Gift/ inheritance received from a person referred to in Sec 4) Disinvestment proceeds on 3) Gift from close relative 6(4) of FEMA conversion of ADR/ GDR 4) Earning through export of 4) Foreign exchange acquired 5) professional earnings like goods/ services, royalty before the July 8, 1947 or any director’s/ consultancy/ lecture income arising on it held fees, honorarium and similar 5) Disinvestment proceed on outside India with RBI other earnings received by a conversion of shares into permission professional by rendering services ADR/ GDR in his individual capacity 6) Foreign exchange received 6) foreign exchange received as earnings of LIC claims/ 6) Interest earned on the funds as earnings of LIC claims/ maturity/ surrendered value held in the account maturity/ surrendered value settled in forex from an Indian settled in forex from an insurance company 7) Re-credit of unutilised foreign Indian insurance company currency earlier withdrawn from 7) Balances in NRE/ FCNR (B) the account accounts on change in residential status 8) Payments received in foreign exchange by an Indian startup arising out of sales/ export made by the startup or its overseas Prepared by Central Bank of India, CLD Pune subsidiaries Permitted 1) Any permissible current or Can be used for any No restrictions on utilisation Debits 1)capital account transaction permissible current/ capital in/ outside India. 2) Cost of goods purchased account transactions. 3) Customs duty 4) Trade related loans and advances Major accounts that can be opened in India by a non-resident individuals: Foreign Currency (Non- Non-Resident (External) Rupee Non-Resident Ordinary Resident) Account (Banks) Particulars Account Scheme Rupee Account Scheme [NRO Scheme [FCNR (B) [NRE Account] Account] Account] (1) (2) (3) (4) Who can NRIs and PIOs Any person resident outside open an India for putting through account Individual/entities of Pakistan and Bangladesh shall requires prior bonafide transactions in approval of the Reserve Bank of India rupees. Individuals/ entities of Pakistan nationality/ origin and entities of Bangladesh origin require the prior approval of the Reserve Bank of India. A Citizen of Bangladesh/Pakistan belonging to minority communities in those countries i.e. Hindus, Sikhs, Buddhists, Jains, Parsis and Christians residing in India and who has been granted LTV or whose application for LTV is under consideration, can open only one NRO account with an AD bank subject to the conditions mentioned in Notification No. FEMA 5(R)/2016-RB dated April 01, 2016, as updated from time to time. Post Offices in India may maintain savings bank accounts in the names of persons resident outside India and allow operations on these accounts subject to the same terms and conditions as are applicable to NRO accounts maintained with an authorised dealer/ authorised bank. Joint account May be held jointly in the names of two or more NRIs/ PIOs. May be held jointly in the names of two or more NRIs/ NRIs/ PIOs can hold jointly with a resident relative on ‘former or PIOs. survivor’ basis (relative as defined in Companies Act, 2013). The resident relative can operate the account as a Power of Attorney May be held jointly with holder during the life time of the NRI/ PIO account holder. residents on ‘former or Prepared by Central Bank of India, CLD Pune survivor’ basis. Currency Indian Rupees Any permitted currency i.e. a Indian Rupees foreign currency which is freely convertible Type of Savings, Current, Recurring, Fixed Term Deposit only Savings, Current, Recurring, Account Deposit Fixed Deposit Period for From one to three years, However, For terms not less than 1 As applicable to resident fixed banks are allowed to accept NRE year and not more than 5 accounts. deposits deposits above three years from years their Asset-Liability point of view Permissible Credits permitted to this account are inward remittance from Inward remittances from Credits outside India, interest accruing on the account, interest on outside India, legitimate dues investment, transfer from other NRE/ FCNR(B) accounts, maturity in India and transfers from proceeds of investments (if such investments were made from this other NRO accounts are account or through inward remittance). permissible credits to NRO account. Current income like rent, dividend, pension, interest etc. will be construed as a permissible credit to the NRE accoun

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