Current Affairs June 2019 - Banking & Finance
1 - Financial Literacy Week observed during June 3-7
Financial Literacy Week 2019 was observed from June 3-7 on the theme - “Farmers” and how they benefit by being a part of the formal banking system.
Financial Literacy Week is an initiative of RBI to promote awareness of key topics every year through a focused campaign.
Growth in agriculture is necessary for the overall economic growth and finance is an essential enabler for the same. RBI is actively involved in formulating policies that enhance the flow of credit to the farming community.
2 - Overseas investors add over Rs 9,000 crore into Indian capital markets in May
Overseas investors pumped more than 9,000 crore rupees into the Indian capital markets in last month on expectations of more business-friendly measures.
According to the latest depositories data, Foreign Portfolio Investors (FPIs) infused around 7,920 crore rupees into equities and 1,111 crore rupees in the debt market during second to-31st of May, taking the cumulative investment to around 9,031 crore rupees. Prior to this, they had invested a net 16,093 crore rupees in April, 45,981 crore rupees in March and 11,182 crore rupees in February in the capital markets (both equity and debt).
3 - GST collections cross Rs 1 lakh crore mark for third consecutive month
India’s goods and services tax (GST) revenue collections crossed Rs 1 lakh crore for the third consecutive month in May to Rs 1,00,289 crore, despite the slowdown in the industrial activities.
GST collections rose by 6.67 percent over the revenue of Rs 94,016 crore reported in May 2018. The revenue in May 2019 was 2.21 percent higher than the monthly average of GST revenue in the financial year 2018-19 (Rs 98,114 crore), according to a data released by the Ministry of Finance.
4 - G20 digital tax takes step closer
Global efforts to impose a unified tax policy on Google, Facebook and other internet giants have cleared a major hurdle ahead of a G20 summit in Japan.
The Paris-based Organisation for Economic Cooperation and Development (OECD) stated that 129 countries had signed off on a road-map to grab a fairer tax share of the companies’ booming sales.
5 - ONGC regains most profitable public sector company title
ONGC, India’s top oil and gas producer, has toppled Indian Oil Corp (IOC) to regain the crown of being the country’s most profitable public sector company.
According to earnings statements of the listed companies, Oil and Natural Gas Corp (ONGC) reported a 34 percent jump it’s in 2018-19 fiscal net profit to Rs 26,716 crore.
6 - Forex reserves swell by $1.8 bn to $421.8 bn
The country’s foreign exchange reserves increased by USD 1.875 billion to USD 421.867 billion in the week ending 31st May 2019.
Reserve Bank weekly data released showed that foreign currency assets, which is a major component of the overall reserves, rose by USD 1.946 billion to USD 394.134 billion.
7 - RBI imposes Rs 2 crore penalty on Kotak Mahindra Bank
The RBI has slapped a penalty of Rs. 2 crores on Kotak Mahindra Bank for the non-state lender’s failure to adhere to the regulator’s diktat on promoter shareholding.
The central bank has been engaged in a dispute with Kotak Mahindra since 2014 over its failure to meet the milestone for stake reduction by Uday Kotak, the billionaire promoter of the bank.
8 - ZestMoney offers first-of-its-kind EMI insurance
India’s largest and fastest growing consumer lending technology company ZestMoney, partnered with Digit Insurance to offer EMI insurance to the company’s five million customers.
The policy will cover EMI cost in the event of hospitalization, death or permanent disability. The insurance product is specifically designed for ZestMoney’s customers which can be availed while applying for a loan on the digital platform.
9 - HDFC sells further 4.22% stake in Gruh Finance for ₹899 crore
Mortgage lender HDFC has sold over 4.22% stake in subsidiary Gruh Finance Ltd (Gruh), which is proposed to be amalgamated with Bandhan Bank for ₹899.43 crore. Post the completion of the aforesaid sale of shares, Gruh would cease to be a subsidiary of the Corporation.
Gruh is engaged in the business of providing home loans and is registered with the National Housing Bank as a housing finance company.
10 - RBI asks banks to grout ATMs to wall, pill or floor to enhance security
Based on the recommendations of the Committee on Currency Movement (CCM), the Reserve Bank have directed banks to ensure their ATMs are grouted to a wall, pillar, or floor by September-end, except those installed in high secured premises such as airports, to enhance the security of the cash vending machines.
The committee to review the entire gamut of security of treasure in transit is chaired by Shri D.K. Mohanty.
11 - Jammu and Kashmir Bank now under RTI, CVC guidelines
The Jammu and Kashmir Bank will now come under the purview of Right to Information Act and Central Vigilance Commission (CVC) guidelines as per the decisions taken by the Board of Directors of the Jammu and Kashmir Bank to ensure greater transparency and accountability.
12 - RBI fines HDFC Bank Rs 1 crore
Reserve Bank fined country's largest private sector lender HDFC Bank Rs 1 crore for not reporting frauds and non-compliance with other directions.
The fine pertains to submission of forged bill of entries (BoEs) by certain importers to HDFC Bank for remittance of foreign currency.
13 - CBDT directs I-T department to share info of loan defaulters with banks
The Central Board of Direct Taxes has directed the Income Tax Department to share in "public interest" the details of assets and accounts of all such loan defaulters whose details are requested by the public sector banks.
The policy move is aimed to tighten the noose on such entities and extract recovery of public money.
