Banking and Economy Awareness PDF – August 2019

This PDF Capsule contains all Banking and Economy Related news and events for the month of August 2019
along with questions.

1. India 7th largest economy in terms of GDP in 2018, US on top: World Bank
 India has been ranked at 7th in terms of GDP in the Q1. Rank of India in terms of GDP
World Bank’s Gross Domestic Product (GDP) rankings in as per World Bank?
2018. In 2018, India’s GDP was $2.72 trillion.
 The US is on the top with a GDP of $20.5 trillion,
followed by China on second with $13.6 trillion GDP.
Third is Japan ($4.9 trillion), Germany ($3.9 trillion) is
fourth, UK ($2.82 trillion) is fifth and France ($2.77
trillion) is sixth.
 In 2017, India had overtaken France as the sixth-largest
economy.

2. CRISIL revises India’s GDP growth for FY20 to 6.9%

 Global Rating Agency CRISIL has reduced the GDP growth Q1. India’s GDP rate prediction by
rate prediction for India for FY20 from 7.1% to 6.9%. CRISIl for FY20?
 This was published in the report of CRISIL titled ‘Uphill Q2. Report ‘Uphill Trek’ is by?
Trek.’. The report mentioned that India’s GDP had grown
at an impressive 8.2% in fiscal 2017.

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3. India Post Payments Bank to be converted into small finance bank

 The Postal Department has announced that it will Q1. Which Payments bank has
convert its India Post Payments Bank into a small finance announced its plan to convert to a
bank to a Small Finance Bank. SFB?
 The decisions were taken at the annual Heads of Circles
Conference held at Srinagar in Jammu and Kashmir.
 IPPB has also set a target to open 1 crore accounts in 100
days.

4. SBI (Shanghai) becomes 1st Indian bank to link up with China payment system
 The State Bank of India (Shanghai branch) has become Q1. 1st Indian bank to link up with
the first Indian Bank to be connected to the connected China payment system?- SBI
to China’s National Advance Payment System (CNAPS). Q2. Name of Payment system of
 CNAPS is a real-time settlement services for all payments China?- CNAPS and CIPS
cleared in mainland China, as well as in all clearing banks Q3. CNAPS is a Payments system of
in offshore yuan centers, such as Hong Kong. The CNAPS which country?
system is complemented by its international
counterpart, the CIPS (China International Payments
System or Cross-Border Inter-Bank Payment System),
launched in 2015 with the aim of boosting international
use of the Chinese currency, yuan.
 SBI is the only Indian Bank to have obtained the license
to do business in local currency and also inducted to the
CNAPS.

5. NHB launches Liquidity Infusion Facility (LIFt) Scheme for Housing Finance
Companies
 National Housing Bank (NHB) has launched a Liquidity Q1. Outlay for Liquidity Infusion
Infusion Facility (LIFt) Scheme for Housing Finance Facility (LIFt) Scheme for Housing
Companies to support Housing Finance Companies in Finance Companies?
creating individual housing loan portfolio that falls under Q2. Liquidity Infusion Facility (LIFt)
the priority sector. Scheme for Housing Finance
 Government has allocated an amount of ₹ 10,000 crore Companies will be delivered by?
for this scheme. The maximum amount that can be
drawn under this scheme shall not exceed ₹ 500 crore
per HFC

6. Forex trading platform, FX-Retail of CCIL launched

 Clearcorp Dealing Systems India Ltd (Clearcorp) has Q1. Name of the platform by CCIL
launched its forex trading platform, FX-Retail, for the for foreign exchange trading
customers of banks on August 05, 2019. ClearCorp is a platform for retail participants?
wholly-owned subsidiary of Clearing Corporation of India Q2. FX-Retail is managed by?

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Ltd (CCIL). Q3. Various limits?

 This will provide the customers of the bank (MSMEs and
Individuals) direct access to the market who has a need
to purchase or sell US Dollar against the Rupee for
delivery. The size of a single transaction is not allowed to
exceed $5 million.
 The registration process for customers was available
from July 01, 2019.

7. RBI granted Bank of China to offer regular banking services in India

 The Reserve bank of India has included Bank of China in the second schedule of RBI Act. Now
the bank can provide regular banking services in India. Some other decisions by RBI include:
 “Jana Small Finance Bank Limited” has been included in the Second Schedule of the Reserve
Bank of India Act, 1934.
 “National Australia Bank” excluded from the Second Schedule of the Reserve Bank of India
Act, 1934
 Name of “The Royal Bank of Scotland plc” altered to “NatWest Markets Plc” in the Second
Schedule to the Reserve Bank of India Act, 1934

8. Sovereign Gold Bond Scheme 2019-20 Series-III Opens for Subscription

 The Sovereign Gold Bonds 2019-20 (Series III) has been Q1. Series?- 3rd series
opened for subscription from August 5 to August 9, Q2. Denomination
2019. Q3. Issue Price
 Following are the major points to remember: Q4. Interest?

 Denomination: Minimum investment in the Bonds shall

be one gram with a maximum limit of subscription per
fiscal year of 4 kg for individuals, 4 kg for Hindu
Undivided Family (HUF) and 20 kg for trusts
 Issue Price: Rs 3,499 per gram with settlement date
August 14, 2019. (Discount of Rs 50 per gram on online
payment/digital payment i.e. Rs 3,449 per gram)
 Interest: 2.5%

9. Noel Quinn appointed interim head of HSBC Bank

 HSBC Bank has announced the departure of its CEO, John Flint from the post saying the bank
needed a change at the top to address “a challenging global environment”.
 Noel Quinn, 57, the head of Global Commercial Banking unit at HSBC will hold the role of
interim CEO till a permanent CEO is chosen.

10. Microsoft partners with AGTB for world’s first fully digital trade bank
 Microsoft and Publicis Sapient have partnered with Q1. World’s first fully digital trade
Anglo-Gulf Trade Bank (AGTB) to launch the world’s first bank?

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end-to-end digital trade finance bank. AGTB is Q2. AGTB is headquartered at?
headquartered in Abu Dhabi, UAE.
 Publicis Sapient will function as a digital partner of the
bank, utilizing Microsoft’s intelligent Cloud-based
security and data solutions.
 This has made AGTB the very first trade bank that is fully
digital from the outset. Trade finance represents the
financial instruments and products that are used by
companies to facilitate international trade and
commerce.

11. RBI reduces repo rate by 35 bps to 5.40%

The Reserve Bank of India in its Third Bi-monthly Monetary Policy Meeting, 2019-20 has reduced the
Repo rate by 35 bps to 5.40%. The various rates are:
Policy Repo Rate : 5.40%
Reverse Repo Rate : 5.15%
Marginal Standing Facility Rate : 5.65%
Bank Rate : 5.65%
CRR : 4%
SLR : 18.75%
RBI has decreased the projection of real GDP growth to 6.9 per cent for 2019-20. The stance was
accommodative.

Announcements made in Third Bi-monthly Monetary Policy Meeting, 2019-20 of RBI

National Electronic Funds Transfer (NEFT) m will be made available on a 24×7 basis from December
2019.
All categories of billers (except prepaid recharges) who provide for recurring bill payments will be
permitted to participate in the Bharat Bill Payment System (BBPS).
It has been decided to enable diversification of risk and encourage innovation and competition by
offering ‘on tap’ authorisation to entities desirous to function/operate/provide platforms for (i)
Bharat Bill Payment Operating Unit (BBPOU); (ii) Trade Receivables Discounting System (TReDS); and
(iii) White Label ATMs (WLAs).
the Reserve Bank will also facilitate the creation of a Central Payment Fraud Registry for tracking
payment system frauds. Participants in payment systems will be provided access to this registry for
near-real time fraud monitoring. The aggregated fraud data will be published to disseminate
information on emerging risks.
In the area of banking regulation, it has been decided to reduce the risk weight for consumer credit
including personal loans, but excluding credit card receivables, to 100 per cent from 125 per cent or
higher.

Two measures to enhance credit flow to the non-banking financial companies (NBFC) sector

It has been decided to raise a bank’s exposure to a single NBFC to 20 per cent of Tier-I capital of the
bank
In order to augment the flow of credit to priority sectors that contribute significantly to exports and
employment, it has been decided to allow bank lending to registered NBFCs (other than MFIs) for on-

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lending to (i) agriculture (investment credit) up to ₹ 10 lakhs; (ii) Micro and Small Enterprises up to ₹
20 lakhs; and (iii) housing up to ₹ 20 lakhs per borrower (up from ₹ 10 lakhs at present), to be
classified as priority sector lending.

12. Apple issues Apple Credit Card in partnership with Goldman Sachs
 Apple in partnership with Goldman Sachs has started the Q1. Issuing Bank/partner of Apple
issue of its Credit Card that is named “Apple Card”. The for Apple Card?
issue has been started from August 06, 2019. Q2. Name of Apple credit card?-
 It is a virtual credit card that is built-in the Apple Pay Apple card
App and hence lives on an iPhone. The physical version
of the Apple Card does not have any number like other
credit cards. Even CVV number is not written on it.
 The transactions are authorized by Apple Pay — Face ID,
Touch ID, unique transaction codes. Goldman Sachs is
the issuing bank for the Apple Card.

13. Finance Minister Announcement Key Highlights

 Finance Minister Nirmala Sitharaman made some announcements on August 23, 2019 related
to economy and banking. These are mentioned below:

 CSR violations– CSR violations will not be treated as criminal offence and would instead be
civil liability.

Income Tax Related

 On or after 1st October, 2019 all notices, summons, orders etc. by the income-tax authorities
shall be issued through a centralized computer system and will contain a computer generated
unique Document Identification Number.
 Any communication issued without computer-generated unique Document Identification
Number shall be non est in law.
 All old notices to be decided by 1st October 2019 or uploaded again through the system
 From 1st October, 2019 all notices to be disposed off within three months from the date of
reply.
 Government has withdrawn the enhanced surcharge levied by Finance (No. 2) Act, 2019 on
long/ short term capital gains arising from transfer of equity shares/units referred.
For Banks and NBFCs
 Government will release Rs. 70,000 Cr., additional lending and liquidity to the tune of ~ Rs 5
Lakh crore by providing upfront Capital to PSBs.
 Banks to launch repo-linked loan products
 Reduced EMI for housing loans, vehicle and other retail loans by directly linking Repo rate to
interest rates.
 PSBs to ensure mandated return of loan documents within 15 days of loan closure.
 NHB to give additional liquidity support to HFCs of Rs. 20,000 Cr thereby increasing it to Rs.
30,000 Cr.
 Partial Credit Guarantee scheme for purchase of pooled assets of NBFCs/ HFCs upto Rs 1 lakh
Cr – to be monitored at highest level in each bank.
 Surcharge levied on Foreign Portfolio Investment(FPI) and domestic investors rolled back

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GST related
 All pending GST refund due to MSMEs shall be paid within 30 days. In future all GST refunds
shall be paid within 60 days from the date of application.
 TReDS to use GSTN system in medium term to enhance market for bill discounting for
MSMEs.
Auto Sector
 All the BS IV vehicles purchased till 31.03.2020 shall remain operational for entire period 27
of registration.
 The revision of one-time registration fees has been deferred till June 2020.
 Any vehicle acquired from now till March 2020 will benefit from an additional 15 per cent
depreciation, making a total of 30 per cent depreciation.

14. US Treasury officially labels China a “currency manipulator”

 The US Treasury has officially labeled China a “currency Q1. Recently the US treasury had
manipulator”. Currency manipulation is a situation when labeled which country as a
a country intentionally influences the exchange rate “currency manipulator”?
between its currency and the US dollar to gain “unfair
competitive advantage in international trade”.
 This comes after the People’s Bank of China (Chinese
central bank) allowed the renminbi to fall below a key
threshold, marking a dramatic escalation in the trade
war between the two economic powers.

15. NCAER predicts India’s GDP growth rate for FY20 at 6.2%
 Economic think tank National Council of Applied Q1. GDP growth rate for India in
Economic Research (NCAER) has predicted India’s GDP FY20 as per NCAER?
growth rate for FY20 at 6.2%.
 The Wholesale Price Index (WPI) inflation is projected at
2.6 percent.

16. CAIT partners with HDFC bank to launch “Digi Vyapari-Safal Vyapari” initiative
 The Confederation of All India Traders (CAIT) has Q1. The Digi Vyapari-Safal Vyapari
launched an initiative named “Digi Vyapari-Safal initiative has been launched by?-
Vyapari” with an aim to accelerate the acceptance of CAIT
digital payments method among merchants across the Q2. CAIT has partnered with which
country. bank for the Digi Vyapari-Safal
 CAIT is an apex body of the trading community of India. Vyapari initiative?- HDFC
For this initiative, CAIT has partnered with HDFC Bank,
Mastercard, Common Service Centres (CSCs) of Ministry
of Electronics and Information Technology (Meity) and
Global Linkers.

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17. Mastercard rolls out Identity Check Express for safe digital payment
 Mastercard has launched a new solution – Identity Check Q1. Who has launched the
Express – to create a completely friction-free digital “Identity Check Express”?
payment experience for online shopping. Q2. Under Identity Check Express
 This mobile-first authentication solution will remove the of Mastercard- there will be no
need for an OTP to authenticate consumers putting need for PIN for transactions less
through mobile transactions. This was demonstrated at than?- Rs 2000
Global Mastercard Cybersecurity Summit that was held
in India for the first time.
 With Identity Check Express, Mastercard will offer a
frictionless payment experience to Mastercard
cardholders at leading merchants for amounts less than
₹2,000 on their trusted mobile device by sharing a one-
time merchant specific consent. For transactions greater
than ₹2,000, cardholders will be able to authenticate
themselves with a transaction PIN of their choice.

18. RBL Bank launches India’s first health-focused credit card

 RBL Bank and digital healthcare platform Practo have Q1. Which bank has launched
partnered to launch an industry first co-branded health India’s first health-focused credit
credit card. card.
 This credit card is powered by Mastercard and is Q2. Practo has partnered with
available on both Practo and RBL mobile apps and which bank for India’s first health-
websites. focused credit card?
 Practo is currently the only platform in the country that
lets patients manage their healthcare needs end-to-end.

19. India’s first Corporate Credit Card for Startups and SMEs launched by EnKash
 Business-to-business payments startup EnKash has Q1. First Corporate Credit Card for
launched India’s first corporate credit card for small and Startups and SMEs in India has
medium enterprises (SMEs). The card is named ‘Freedom been launched by?- EnKash
Card’.
 The Freedom Card by EnKash would give SMEs and
startups the facility to avail credit for immediate needs
and to manage their liquidity.

20. West Bengal top Indian State in 2018-19 in terms of GDP growth
 West Bengal has topped the list of states in India in Q1. State with highest GDP Growth
terms of GDP growth rate in 2018-19 with a GDP growth Rate in 2018-19? West Bengal
rate of 12.58%. Q2. State with Lowest GDP Growth
 The data is as per the table on GDP growth of states in Rate in 2018-19?- Goa
2018-19 published by the ministry of statistics and
programme implementation.
 West Bengal is followed by Andhra Pradesh at second

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with GDP growth rate of 11.02%, Bihar is at third with

10.53% followed by Telangana at 4th with 10.5%. Goa is
at the bottom of the list with 0.47% GDP Growth rate.

21. Anurag Adlakha appointed Chief Financial Officer at Yes Bank

 Anurag Adlakha has been appointed as the Chief Q1. Anurag Adlakha has been
Financial Officer of Yes Bank. appointed as the Chief Financial
 Anurag Adlakha will take over from Raj Ahuja, who will Officer of which bank?
now take over as group chief strategy officer,
responsible for leading the strategy, planning and
projects function of the bank.

22. India Contributes USD 1 million to UN Special Purpose Trust Fund

 India has contributed USD 1 million to the United Q1. How much amount has been
Nations Special Purpose Trust Fund (SPTF) for the contributed by India to the United
Resident Coordinator System. Q2. Nations Special Purpose Trust
 The Special Purpose Trust Fund (SPTF) is a specific fund Fund?
housed within the UN Secretariat to receive, Q3. Special Purpose Trust Fund is
consolidate, manage all contributions and financial established by which body? UN
transactions of the new Resident Coordinator system in SPTF is established for? Resident
a transparent and effective way. Coordinator (RC) system
 The Resident Coordinator (RC) system is designed to
bring together all organizations of the United Nations
system to coordinate and improve the efficiency and
effectiveness of operational activities at the country
level.

23. RBI finalises regulatory sandbox framework for innovation in fintech firms
 The Reserve Bank of India (RBI) has released the final Q1. Minimum net worth for
‘enabling framework for the regulatory sandbox. participant in RS?
 What is Regulatory Sandbox: Regulatory Sandbox (RS) Q2. RS stands for?
usually refers to live-testing of new products or services in a Q3. Framework introduced for
controlled/test regulatory environment for which regulators fintech?
may (or may not) permit certain regulatory relaxations for
the limited purpose of the testing. The RS allows the
regulator, the innovators, the financial service providers (as
potential deployers of the technology) and the customers
(as final users) to conduct field tests to collect evidence on
the benefits and risks of new financial innovations, while
carefully monitoring and containing their risks.
 FinTech stands for Financial Technologies,is the technology
and innovation that aims to compete with traditional
financial methods in the delivery of financial services.
 Purpose of RS: The objective of the RS is to foster
responsible innovation in financial services, promote

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efficiency and bring benefit to consumers.

Fit and Proper Criteria for Selection of Participants in RS
 It should either be a company incorporated and registered
in India or banks licensed to operate in India. Further,
financial institutions constituted under a statute in India
would also be eligible.
 The entity shall have a minimum net worth of Rs. 25 lakh as
per its latest audited balance sheet.

24. Lending by banks to NBFCs for On-Lending to be classified as Priority Sector

Lending
 Before understanding this news, lets understand what is Q1. What is on-lending?
on-lending. On-lending means When an organization Q2. Limit for PSL by NBFC in
lends money that they have borrowed from another Agriculture?
organization or person. Example, when NBFC borrows Q3. Limit for PSL by NBFC in MSE
money from bank to lend that money to customers, it is Q4. Limit for PSL by NBFC in
known as on-lending. Hosuing?
 As per instructions from RBI, the bank credit to Q5. Bank credit to NBFCs for On-
registered NBFCs (other than MFIs) for on-lending will be Lending will be allowed upto a
eligible for classification as priority sector under limit of?- 5%
following category:
 Agriculture: Limit- up to Rs. 10 lakh per borrower.
 Micro & Small enterprises: Limit- up to Rs. 20 lakh per
borrower.
 Housing: limit- upto Rs. 20 lakh per borrower. (increased
from Rs 10 lakh)
 Bank credit to NBFCs for On-Lending will be allowed
upto a limit of five percent of individual bank’s total
priority sector lending on an ongoing basis.

25. Aditya Puri is the highest-paid bank CEO

 Aditya Puri, the MD and CEO of HDFC Bank is the highest Q1. Highest paid bank CEO?
paid bank chief executive in India with a monthly basic
salary of Rs 89 lakh in FY19.
 Amitabh Chaudhry (Axis Bank CEO ), who took over the
position in January, was second at a basic monthly salary
of Rs 30 lakh.
 Kotak Mahindra Bank’s Uday Kotak was ranked at third.
The data has been compiled from the annual report of
the banks.

26. Danish bank (Jyske Bank) launches world’s first negative interest rate home loan
 Jyske Bank in Denmark has launched the world’s first Q1. Which bank has launched the
negative interest rate home loan. world’s first negative interest rate

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 It means the bank will pay the borrower interest in place home loan
of charging interest. It will pay an interest of 0.5% p.a. In
other words, it will charge an interest rate of -0.5% per
annum. In reality money will not be paid, however, it
will be adjusted in the next installment that the
borrower has to pay.
 Negative interest rates effectively mean that a bank pays
a borrower to take money off their hands, so they pay
back less than they have been loaned.

27. CBDT to attach DIN to each communication from Oct 1

 The Central Board of Direct Taxes (CBDT) attach a Q1. Full form of DIN related to
Documentation Identification Number (DIN) to each of CBDT?
its communication from October 01, 2019. Q2. Which identification number
 This has been done to ensure greater transparency and has been made mandatory by
accountability in tax administration. CBDT from October 01?
 Any communication without a computer-generated DIN
would be treated as invalid and shall be deemed to have
never been issued.

28. Failed ATM transactions not to be counted under Free ATM Transactions: RBI
 The Reserve Bank of India has issued a clarification to Q1. As per the latest instructions
the commercial banks that the transactions that have by RBI, which of the following
failed due to technical reasons, non-availability of transactions should not be
currency in ATMs, etc. shall not be counted as valid ATM counted under free ATM
transactions for the customer. Consequently, no charges transactions?- Options can be- (a)
therefor shall be levied. non-availability of currency notes
 The various circumstances under which the transactions in the ATM (b) transactions failed
should not be counted as valid ATM transactions for the due to hardware failure (c) invalid
customer has been listed by RBI as under: pin (d) balance enquiry at off-us
 transactions which fail on account of technical reasons transaction.
like hardware, software, communication issues; Ans: (d) as the RBI Instructions says
 non-availability of currency notes in the ATM; that “Non-cash withdrawal
 other declines ascribable directly / wholly to the transactions (such as balance
bank/service provider; enquiry, cheque book request,
 invalid PIN / validations; payment of taxes, funds transfer,
 Non-cash withdrawal transactions (such as balance etc.), which constitute ‘on-us’
enquiry, cheque book request, payment of taxes, funds transactions (i.e., when a card is
transfer, etc.), which constitute ‘on-us’ transactions (i.e., used at an ATM of the bank which
when a card is used at an ATM of the bank which has has issued the card) shall also not
issued the card) shall also not be part of the number of be part of the number of free ATM
free ATM transactions. transactions.”

Number of Free transactions mandated by RBI: (remember that Q2. Number of free ATM
banks can offer more free transactions than this, but not less) withdrawal in various cases.

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 Transactions at a bank’s own ATMs (On-Us transactions)

at any location (metro or non-metro): minimum of five
free transactions in a month
 Transactions at any other banks’ ATMs (Off-Us
transactions) at Metro locations: Minimum Three per
month (Valid for six metro cities Mumbai, New Delhi,
Chennai, Kolkata, Bengaluru and Hyderabad)
 Transactions at any other banks’ ATMs (Off-Us
transactions) at Non-Metro locations: Minimum five free
transactions in a month.

29. ANZ Banking Group predicts India’s GDP growth forecast at 6.2% in 2019-20
 The Australia and New Zealand Banking Group (ANZ) has Q1. India’s GDP growth rate as per
predicted India’s GDP growth at 6.2% for FY20. Earlier it ANZ for FY20?- 6.1%
has predicted the growth rate at 6.5%. Q2. India’s GDP growth rate as per
 For FY21, ANZ has predicted India’s GDP growth rate at ANZ for FY21?- 6.5%
6.5%

30. Government rolls out credit-support plan for NBFCs

 Finance Ministry has rolled out the partial credit Q1. Maximum percentage of loss
guarantee to Public Sector Banks for purchase of high- to be covered under the credit-
rated pooled assets of financially sound NBFCs. It was support plan for NBFCs?- 10%
announced in the annual budget of 2019-20. Q2. Total amount of loss to be
 As per the announcement, the Government will provide covered under the credit-support
one time six months’ partial credit guarantee to Public plan for NBFCs?- Rs 1 lakh core
Sector Banks for first loss of up to 10% for purchase of Q3. Maximum duration- six
high-rated pooled assets of financially sound NBFCs and months
housing finance companies (HFCs), amounting to a total Q4. one-time guarantee on the
of Rupees one lakh crore during the current financial pooled assets will be valid for?- 24
year. months
 Credit Guarantee: Department of Economic Affairs will Q5. Buy back by NBFC?- after 12
provide a government guarantee of up to 10% of the fair month
value of assets purchased by a bank from a stressed
NBFC or HFC.
 Maximum Guarantee Limit: The scheme is capped at Rs 1
lakh crore.
 Time Limit: It will be open for six months or till such date
that assets worth ₹1-lakh crore are purchased by banks.
 The one-time guarantee on the pooled assets will be
valid for 24 months from the date of purchase and can
invoked in specified circumstances.
 The guarantee would cease earlier if the purchasing
bank sells the pooled assets to the originating NBFC/HFC
or any other entity, before the validity of the guarantee
period. NBFCs have an option to buyback the asset
within 12 months.

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31. Banks to identify at least one branch in a State for Gold Monetisation Scheme: RBI
 The Reserve Bank of India has issued an amendment to Q1. As per RBI, banks are
the Gold Monetization Scheme, 2015. As per the mandated to identify at least how
amendment: many branch in a State/Union
 Banks have to identify at least one branch in a Territory where they have
State/Union Territory where they have presence to presence to accept the deposits
accept the deposits under the Scheme. under the Gold Monetisation
 All deposits under the scheme shall be made at the Scheme.
Collection and Purity Testing Centre (CPTC). Q2. Full Form of CPTC?- Collection
and Purity Testing Centre

32. Sebi imposes restrictions on mutual fund investments in short-term bank deposits
 Securities and Exchange Board of India (SEBI) has issued Q1. SEBI has restricted the Mutual
clarification pertaining to investment in Short Term fund houses from parking funds in
Deposits (STDs) of scheduled commercial banks. SEBI has which type of deposits of
said that: commercial banks is the bank has
 Trustees/Asset Management Companies (AMCs)/Mutual invested in that scheme?- Short
fund houses shall ensure that no funds of a scheme is Term Deposits
parked in STD of a bank which has invested in that
scheme.
 Trustees/AMCs shall also ensure that the bank in which
a scheme has STD do not invest in the said scheme until
the scheme has STD with such bank.

33. India launches Rupay Card in Bhutan

 Indian Prime Minister Narendra Modi is on his visit to Q1. Second country where RuPay
Bhutan. There along with PM of Bhutan, Lotay Tshering, card was launched?
our PM Modi has signed 10 MoUs including one power
purchase agreement and also launched RuPay Card in
Bhutan.
 The launch of RuPay Card in Bhutan will take in two
phases. In Phase one- Indian Banks will issue Rupay Card
to Indian Travellers traveling to Bhutan. In Phase two-
banks of Bhutan will be empowered to issue RuPay cards
to Bhutanese citizens to use in India.
 Bhutan is the second country after Singapore, where
RuPay card has been launched.

34. India’s forex reserves at new life-time high of $430.57 bn: RBI data
 As per Reserve Bank of India’s Data, India’s foreign Q1. Remember the figure of
exchange reserves surged by $1.620 billion to $430.572 $430.572 billion
billion in the week to August 9 on rise in foreign currency

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assets. This is the lifetime high of India’s foreign asset.

 The country’s gold reserves surged by $1.591 billion to
$26.754 billion.

35. Companies can now have up to 74% Differential Voting Rights (DVR) shares
 The Central Government has liberalized the rules that Q1. New limit of Differential Voting
would allow Indian companies to raise share capital Rights (DVR) shares for
without diluting the voting rights of all existing companies? – 74%
shareholders. Q2. Companies can now have up to
 Before Amendment: Prior to the amendment, the 74% Differential Voting Rights
Companies (Share Capital and Debentures) Rules of 2014 (DVR) shares of the total post issue
allowed the issue of shares with differential voting ________ capital?- paid-up share
rights, with the condition that—the business should Q3. Employee Stock Options
have distributable profits for the previous three years, (ESOPs) can be issued by startups
and the capital raised through shares with differential to promoters or directors holding
voting rights must not exceed 26% of the post-issue more than 10% of equity shares for
capital. ________ years?- 10 years

After Amendment:
(i) The amendment has removed the condition of having three
years of distributable profits.

(ii) Companies can now have up to 74% Differential Voting

Rights (DVR) shares of the total post issue paid-up share capital.
This limit has been revised from 26%.

(iii) Now the Employee Stock Options (ESOPs) can be issued by

startups to promoters or directors holding more than 10% of
equity shares for 10 years from the date of their incorporation.
Earlier this time period was 5 years.

36. Japan Credit Bureau (JCB) partners with NPCI partners to issue new credit card in
India
 Japan Credit Bureau (JCB) International in partnership Q1. JCB has partnered with which
with National Payments Corporation of India (NPCI), firm for JCB credit card in India?
along with domestic banks have announced the launch Q2. Which Japanese company has
of a new credit card — RuPay JCB Global Cards. partnered with NPCI for credit card
 Eight banks in India will issue RuPay JCB Global Cards- in India?
including State Bank of India, Punjab National Bank, Axis
Bank, Union Bank of India, Central Bank of India, Andhra
Bank, City Union Bank, and TJSB Bank.
 This credit card is RuPay in India and JCB in foreign
countries.

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37. Government removes Debenture Redemption Reserve requirement for Listed

Companies, NBFCs and HFCs
 The Ministry of Corporate Affairs has amended the Q1. Full form of DRR.
Companies (Share Capital & Debentures) Rules by Q2. DRR limit for listed
reducing the DRR for unlisted companies and removing companies?- limit removed
DRR for Listed Companies, NCFCs and HFCs. The two Q3. DRR limit for unlisted
amendments are: companies?- 10%
 For listed companies- the requirement for the creation
of a Debenture Redemption Reserve (DRR) of 25% of the
value of outstanding debentures has been removed. This
includes NBFCs registered with RBI and for Housing
Finance Companies registered with National Housing
Bank (NHB) both for public issue as well as private
placements.
 For unlisted companies- Debenture Redemption Reserve
(DRR) has been reduced for unlisted companies from
25% to 10%, so as to safeguard interests of investors.

38. BookMyForex partners with YES Bank to launch Forex Card on Visa network
 BookMyForex.com has announced the launch of a co- Q1. BookMyForex has launched
branded Multi-Currency Forex Travel-card in partnership the Multi-Currency Forex Travel-
with YES Bank and Visa to offer a seamless experience to card in partnership with which
Indian overseas travelers. bank?
 Travellers can load up to 10 currencies on the card.
BookMyForex is the world’s first and largest marketplace
for foreign exchange and remittances.
 Customers can buy forex travel cards using the
BookMyForex platform and get free doorstep delivery
across major cities in India.

39. RBI allows e-mandates on cards for recurring transactions upto Rs 2000
 The Reserve Bank of India has allowed processing of e- Q1. The maximum amount of limit
mandate on cards for recurring transactions. The for e-mandate based recurring
maximum permissible limit for a transaction under this transactions on cards.
provision is Rs 2,000/-.
 This would be applicable on all types of cards – debit,
credit and Prepaid Payment Instruments (PPIs), including
wallets. These instructions would come into effect from
September 1, 2019.
 There would be a requirement of Additional Factor of
Authentication (AFA) during the registration of e-
mandate registration and for the first transaction. The
remaining transactions would be automatic and simple
without AFA.

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40. RBI changes RTGS opening time from 8 AM to 7 AM

 The Reserve Bank of India has further increased the Q1. Opening time of RTGS for
timing for Real-Time Gross Settlement (RTGS) Payment customers? 7:00 AM
System by changing the Open for Business timing for Q2. Cutoff time for RTGS for
RTGS from 8:00 AM to 7:00 AM. customers?- 6:00 PM
 At present, the RTGS system is available for customer
transactions from 8:00 am to 6:00 pm. Now it will be
available from 7:00 am to 6:00 pm. This timing will be
applicable from August 26, 2019.
 Recently in May 2019, RBI had extended the cutoff time
for customers from 4:30 PM to 6:00 PM.

41. Acko General Insurance Signs Pact with ZestMoney for Credit Insurance
 Acko General Insurance has partnered with consumer Q1. ZestMoney has partnered with
lending fintech ZestMoney to offer credit insurance to which insurance company to offer
the ZestMoney customers. credit insurance to its customers?
 A customer can avail credit insurance at the time of
availing a loan with ZestMoney.
 This insurance will cover their monthly EMI payments
during times of crisis such as hospitalization or critical
illness when they’re unable to pay their installments.
 Customers can file the claim through the ZestMoney
app.
 ZestMoney offers instant financing to consumers across
1000+ online portals and provides them the option of
paying through EMIs even if the consumers don’t own a
credit card.

42. Moody’s lowers India’s GDP growth prediction for 2019 to 6.2%
 Moody’s Investors Service has reduced India’s GDP Q1. GDP growth rate for India in
Growth rate prediction for 2019 to 6.2% from 6.8% 2019 as per Moody?
earlier. Q2. GDP growth rate for India in
 For the year 2020, Moody has predicted India’s GDP 2020 as per Moody?
growth at 6.7%.

43. DBS named ‘World’s Best Bank’ by Euromoney magazine

 DBS Bank has been named the “World’s Best Bank” by Q1. Which bank has won the
leading global financial publication Euromoney in its ‘World’s Best Bank’ Award by
2019 Awards for Excellence. Euromoney magazine?
 With this now, DBS has three global best bank awards Q2. Where is the headquarters of
which include Global Finance’s “Best Bank in the World” DBS Bank located?
in August 2018 and The Banker’s “Bank of the Year –

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Global” in November 2018.

 DBS Bank is headquartered at Singapore.

44. 7 of the world’s 10 worst-performing bank stocks are in India; Top- Yes Bank
 Data as per Bloomberg indicates that Seven of the 10 Q1. As per data from Bloomberg,
worst-performing bank stocks globally are from India as how many banks in India are
the country struggles due to an economic slowdown. amongst 10 worst performing
 Yes Bank is the top worst performing bank among these. stocks?
It has a Total YTD returns: -69.60 percent. Q2. Which bank is the worst-
The list of all banks are: performing bank stock as per
1. Yes Bank (India) Bloomberg data?
2. IDBI Bank (India)
3. Central Bank of India (India)
4. Banco BBVA Argentina (Argentina)
5. Bank of India (India)
6. Grupo Financiero Galicia (Buenos Aires)
7. RBL Bank (India)
8. Unicaja Bank (Spain)
9. Indian Overseas Bank (India)
10. Corporation Bank (India)

45. Bandhan Bank enters credit card business with standard Chartered tie-up
 Bandhan Bank has entered into the credit cards business Q1. Bandhan Bank has partnered
in partnership with Standard Chartered Bank. Standard with which bank for co-branded
Chartered Bank will provide the back-end supports as credit card?
well as the credit.
 Three variants of co-branded credit cards will be issued
to the non-microcredit customers of Bandhan Bank. This
is StanChart’s first co-branded card with another bank.

46. SEBI Eases Norms For FPIs

The Securities and Exchange Board of India (Sebi) has eased the Q1. As per SEBIs announcement,
regulatory and compliance framework for foreign portfolio now FPIs will be categorised in
investors (FPI) with an aim to boost investments and expedite how many categories?- 2
the registration process for FPIs. Some major announcements Q2. SEBI has announced that the
and approvals made by SEBI is listed below: Central Banks that are not
members of _______ shall also be
FPIs may be re-categorized into two categories – Category I and eligible for FPI registration?- BIS
II, instead of the present requirement of three categories.
The central banks that are not the members of BIS (Bank for
International Settlement) shall also be eligible for FPI
registration.
Documentation requirements for KYC have been simplified.
For companies listed on the Innovators Growth Platform
At the time of making the application for trading under regular

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category of main board, the number of shareholders should be

minimum 200.
The company should have profitability/ net worth track record
of 3 years or have 75% of its capital.
Minimum promoters contribution shall be 20% which shall be
locked in for 3 years.
SEBI has decided to give flexibility to the mutual funds to invest
in unlisted non-convertible debentures up to a maximum limit
of 10 per cent of the debt portfolios of the scheme.

47. Small startups with turnover up to Rs 25 cr to get promised tax holiday: CBDT
 The Central Board of Direct Taxes (CBDT) has clarified Q1. As per CBDT instructions start-
that small start-ups with turnover upto Rs. 25 crores will ups with turnover upto ________
continue to get the promised tax holiday as specified in will continue to get the promised
the Income Tax Act, 1961. tax holiday.- Rs. 25 crores
 The term has been specified in the Section 80-IAC of IT
Act 1961, which provides deduction for 100 per cent of
income of an eligible start-up for 3 years out of 7 years
from the year of its incorporation.

48. RBI to transfer Rs 1,76,051 crore to the Government

 The Reserve Bank of India (RBI) has decided to transfer a Q1. What total amount of money
sum of Rs 1,76,051 crore to the Government of India. will RBI transfer to GOI as per the
 This comprises of Rs 1,23,414 crore of surplus for the recommendation of Jalan
year 2018-19 and Rs 52,637 crore of excess provisions Committee? – Rs 1,76,051 crore
identified as per the revised Economic Capital Q2. What amount of surplus will
Framework (ECF). RBI transfer to GOI for 2018-19? –
 The decision has been taken as per the recommendation Rs 1,23,414 crore
of the Expert Committee to Review the Extant Economic Q3. What amount will RBI transfer
Capital Framework of the Reserve Bank of India to GOI asf excess provisions
(Chairman: Dr. Bimal Jalan). identified as per the revised
Economic Capital Framework
(ECF)?- Rs 52,637 crore

49. Alphalogic Techsys floats India’s first startup IPO

 Alphalogic Techsys became the first enterprise to float Q1. India’s first startup IPO has
India’s first startup IPO. It is a Pune based boutique been floated by?-
software consulting firm.
 The Initial Public Offering (IPO) of Rs 6.18 crore of
Alphalogic Techsys is open for bidding today from
August 26, 2019 at a fixed price of Rs. 84 per equity
share. The issue will close on August 28, 2019.
 The company is the first company to be listed on BSE
Start-up platform. The BSE Startups was launched in
December 2018.

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50. India’s GDP growth rate pegged at 6.9%: FICCI Survey

 Federation of Indian Chambers of Commerce and Q1. As per the Economic Outlook
Industry (FICCI) has released the latest edition of Survey of FICCI what is the GDP
Economic Outlook Survey. growth forecast for India in FY20.
 As per the report, the annual median GDP growth rate
for India in 2019-20 (FY20) is predicted at 6.9%.

51. In a first, HDFC Bank, MasterCard launch Millennia cards aimed at ‘Young India’
 HDFC Bank, MasterCard have launched Millennia Cards. Q1. First bank to launch card
This is India’s first range of cards catering exclusively to aimed at millennials.?
the lifestyles and aspirations of the millennials. The
cards are in four variants including both debit and credit
card.
 Millennials were those born between 1982 and 2000 and
represents the demographic of the first generation of
people reaching adulthood in the early 21st century.
 After HDFC, Freecharge has also launched Digital Credit
Card for millennials in partnership with Axis Bank.

52. India Ratings predicts India’s GDP forecast at 6.7% for FY’20
 India Ratings has decreased India’s GDP growth forecast Q1. India’s GDP growth rate
at 6.7% for 2019-20 (FY20) from an earlier estimate of prediction for FY20 as per Ind-Ra?
7.3%.
 This is the lowest prediction as per India Ratings for
India in six years.

53. Cabinet approves 100% FDI in contract manufacturing, coal mining

Union Cabinet headed by Prime Minister Narendra Modi has Q1. Various FDI limit.
taken the following decision related to FDI: Q2. definition of mandatory
domestic sourcing norm for single
 100% FDI under automatic route in coal mining and brand retailing.?- 30%
associated infrastructure has been approved
 100% FDI in contract manufacturing under automatic
route has been approved
 26% FDI in digital media has been approved
 Cabinet has expanded the definition of mandatory 30%
domestic sourcing norm for single-brand retailing.
 Removal of condition of setting up a mandatory brick-
and-mortar store for single-brand retailers and hence
now they can start online sales without the need of any
brick-and-mortar store.

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54. Canara Bank launches OTP facility for ATM cash withdrawals over Rs 10,000
 Canara Bank has launched the facility of OTP based cash Q1. First bank to introduce OTP
withdrawal from ATMs for transactions over Rs 10,000. based ATM transactions?
This is India’s first OTP facility for ATM withdrawals.
 This has been done to make the ATM environment safer.
This additional factor of authentication protects from
unauthorized ATM cash withdrawals for our cardholders.

55. MD & CEO of Lakshmi Vilas Bank, Parthasarathi Mukherjee resigns

 Parthasarathi Mukherjee the MD and CEO of Lakshmi Q1. Parthasarathi Mukherjee was
Vilas Bank has announced his resignation citing personal the MD and CEO of which bank
reasons. lastly?
 Lakshmi Vilas Bank is headquartered at Chennai, Tamil Q2. Headquarters of Lakshmi Vilas
Nadu Bank

56. In a first, ICICI Bank deploys ‘Robotic Arms’ for currency sorting at its chests
 ICICI Bank has become the first in the country to deploy Q1. Which bank has become the
industrial ‘Robotic Arms’ to count currency notes at its first in the country to deploy
currency chests across the country. industrial ‘Robotic Arms’ to count
 ICICI Bank has deployed 14 industrial ‘Robotic Arms’ in currency notes?
12 cities. It will help sort over six million notes on all
working days, or about 1.80 billion notes annually.
 How the robotic arm works: Each industrial robotic arm
feeds unprocessed cash in three high-end note-sorting
machines simultaneously, picks up processed cash from
the output stackers, aligns the loose notes, binds the
packets and finally drops them in the respective trays as
per the quality of the note.

57. RBI reiterates banks for Cash Withdrawal at Points-of-Sale (PoS) Devices
 The Reserve Bank of India has reiterated banks to follow Q1. Maximum cash withdrawal
the norms regarding cash withdrawals at PoS devices limit through PoS per day at Tier I
enabled for all debit cards/open-loop prepaid cards and II centres?
issued by banks. As per RBI instructions the limit for cash Q2. Maximum cash withdrawal
withdrawal via Points-of-Sale (PoS) Devices is: limit through PoS per day at Tier III
 Rs 1000/- per day in Tier I and Tier II centres to VI centres?
 Rs 2,000/- per day in Tier III to Tier VI centres Q3. Maximum customer charge for
 Apart from this, customer charges, if any, on such cash cash withdrawal at PoS device?-
withdrawals to not more than 1% of the transaction 1% of the transaction amount
amount.
 RBI stated that it has come to the notice of RBI that the
instructions regarding this have not been implemented

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58. RBI increases timeline for conversion of minimum detail PPIs to full KYC PPI to 24
months
 The Reserve Bank of India has increased the timeline for Q1. A ‘minimum detail PPI’ can be
the conversion of a minimum detail Prepaid Payment held for a maximum period of
Instruments (PPIs) to KYC compliant PPIs from 18 _______?- 24 months
months to 24 months. These 24 months shall be counted Q2. Limits for minimum detail PPI?
from the day of the opening of such a PPI.
 What is minimum detail PPI: A Prepaid Payment
Instrument where the holder has submitted minimum
KYC related information like only mobile number and
self-declaration of name and the unique identification
number is a minimum detail PPI.
 Limit for minimum details PPI: The amount loaded
during any month shall not exceed Rs 10,000/- and the
total amount loaded during the financial year shall not
exceed Rs 1,00,000/-.

59. Government announces merger of Public Sector Banks to bring down number of
PSBs to 12
Finance Minister Nirmala Sitharaman has announced the Q1. Name of all banks that are
merger of 10 PSU banks to become four major entities. After being merged and their anchor
this, the total number of PSBs will come down to 12 from 24 banks?
banks. In 2017, there were 27 PSBs. Q2. Capital infusion of Rs __ for
PSBs?
The details of the merger are given below: Q3. Which bank got the highest
amount in the capital infusion of
Merger 1: Punjab National Bank, Oriental Bank of Commerce Rs 55,250 crore?- PNB
and United Bank will be merged into one entity. It will become
the second-largest PSB with a business of Rs 17.95 lakh crore
and 11,437 branches. (Anchor Bank- PNB)

Merger 2: Canara Bank and Syndicate Bank will be merged into

one entity. It will become fourth-largest PSB with a business of
Rs 15.2 lakh crore. (Anchor bank- Canara Bank)

Merger 3: Union Bank of India, Andhra Bank and Corporation

Bank into one entity. It will become fifth largest PSB. (Anchor
bank – Union Bank of India)

Merger 4: Indian Bank and Allahabad Bank will merger into one
entity. It will become seventh-largest PSB with a business of Rs
8.08 lakh crore. (Anchor bank – Indian Bank)

PSBs that will continue as before: Bank of India, Central Bank of

India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra
and Punjab and Sindh Bank will continue to operate on their
own. It is expected that the remaining PSBs may be merged in
the near future.

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Apart from this the government also announced the Rs 55,250

crore upfront as a capital infusion in the PSBs. In this PNB has
got the highest amount of Punjab National Bank — Rs 16,000
crore.

All PSU banks will now have a non-executive chairman. Earlier

this position was available only in SBI.

60. Nomura predicts India’s GDP at 6.9% in 2020

 Global research and brokerage firm Nomura has Q1. What is India’s GDP growth
predicted the GDP growth rate for India for the year rate as per Nomura for 2020?
2020 at 6.9%. It has reduced the prediction from earlier Q2. What is the Global GDP growth
7.1%. rate as per Nomura for 2020?
 The global GDP growth rate for 2020 has been predicted
at 3.3% by Nomura.

61. 2% TDS to be levied on cash withdrawals over Rs 1 crore from Sept 01

 The Revenue Department has announced that the from Q1. Amount of TDS on cash
September 01, 2019, 2% TDS will be deducted on cash withdrawal above Rs 1 crore over 1
withdrawal of over Rs 1 crore within a year. year?
 The deduction of 2% TDS on cash withdrawal over Rs 1 Q2. 2% TDS applicable on cash
crore was announced in the Union Budget 2019-20. withdrawal over?- Rs 1 Crore
 For a person who has already withdrawn Rs 1 Crore,
since Apil 1, 2019 till Sept 01, 2019, the TDS of 2% will be
deducted on subsequent cash withdrawal.
 Other than this no cash withdrawal prior to September
1, 2019, will be subjected to the TDS.

62. NPCI revises merchant discount rates for BHIM UPI transactions
 The National Payments Corporation of India (NPCI) has Q1. New MDR Rate for BHIM UPI
revised the Merchant discount rates (MDR) for BHIM UPI transactions?- 0.30%
transactions. The new limits are: Q2. Maximum cap of MDR rate for
o MDR has been revised to 0.30% with a maximum cap BHIM UPI transactions?- Rs 100
of Rs. 100 per transaction. Q3. MDR for offline merchant
o MDR for offline merchant where transactions are where transactions are done
done through QR Scan and Pay will be Zero for through QR Scan and Pay for
transaction up to Rs. 100. transaction less than Rs 100?- Rs 0
 This MDR rates will come into effect from October 01, 2019. Q4. Inward transactions limit for
The present rate of MDR is capped at 0.25% for transactions P2PM category?- Rs 1 lakh per
up to Rs. 2,000 and at 0.65% for transactions above Rs month
2,000.
 NPCI has also raised the inward transactions limit for P2PM
category for small merchants from Rs 50,000 to Rs 1,00,000.
(per month).

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Loans from Banks

 ADB to provide USD 200 mn for rural road project in Maharashtra

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