CURRENT AFFAIRS

01st Feb 2022 to 10th Feb 2022 CA

Contents
................................................................................................................................................................ 2
1. RBI/SEBI/NABARD In NEWS ................................................................................................ 2
1.1. Sebi directs AMCs to form audit committee from August .............................. 2
1.2. Framework for conversion of private listed InvITs ............................................ 3
1.3. Monetary Policy Highlights........................................................................................... 4
1.4. RBI to prematurely redeem SGBs. ............................................................................. 5
2. Finance In NEWS ....................................................................................................................... 6
2.1. ADB Loans to India in 2021 .......................................................................................... 6
3. Reports/Index in NEWS .......................................................................................................... 7
3.1 20 BPS RR hike will help buyer of G-Secs ............................................................... 7
4. Other Important NEWS ........................................................................................................... 8
4.1. NEO Banking ........................................................................................................................ 8
4.2. LIC 3rd largest globally : CRISIL Report ................................................................. 9
4.3. Rs. 1500 Crore through tier-II bonds. .................................................................... 10
5. One Liner ..................................................................................................................................... 11
 Crack Grade B

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1. RBI/SEBI/NABARD In NEWS

1.1. Sebi directs AMCs to form audit committee from

August

Issue: - Markets regulator Sebi asked asset management companies (AMCs)

to form audit committees that will be responsible for oversight of the
financial reporting process, audit process, and compliance with laws and
regulations, among others.
Circular By - SEBI

Key Highlights
The circular will come into force with effect from August 1, 2022. Currently, an audit
committee exists at the level of trustees of mutual funds.
The mandate of the committee is to review the financial reporting processes, the system
of internal controls, and the audit processes for the mutual fund operations of the AMC.
Besides, it would be required to ensure that the rectifications, if any, suggested by
internal and external auditors, among others, are acted upon.
"The Audit Committee of the AMC shall be responsible for oversight of financial
reporting process, audit process, company's system of internal controls, compliance to
laws and regulations and another related process, with specific reference to the
operation of its Mutual Fund business," Sebi said in its circular.
The internal auditor has to submit its report to the audit committees of AMC and the
board of AMC, Sebi said. The committee shall forward their observations on the internal
audit report, if any, to the trustees,"
The chairperson is mandated to conduct at least four meetings in a financial year and
there should not be a gap of over 120 days between two meetings. The meeting can also
be called by the chairperson as and when required and Sebi has also mentioned the
quorum for the meeting.
The members of the audit committee will be appointed by the Board of Directors of
AMC, as per Sebi. On the composition of the committee, Sebi said it shall have a
minimum of three directors as members, and at least two-thirds of members of the
committee shall be independent directors of AMC.

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1.2. Framework for conversion of private listed InvITs

Circular By: - SEBI

Issue: - Capital markets regulator Sebi came out with a framework for
conversion of a private listed Infrastructure Investment Trust (InvIT) into a
public InvIT. In addition, the regulator has issued guidelines for converting a
private unlisted InvIT into a private listed one.
Applicable to: - Private Listed InvIT.

Key Highlights
In a circular, Sebi said a private listed InvIT may convert into a public InvIT on
making a public issue of units through a fresh issue and/or an offer for sale.
A listed private InvIT has to comply with various requirements, including having
at least 5 investors other than the sponsor(s), its related parties and its associates.
Post issuance and listing of such units, the private listed InvIT will stand
transformed and will be considered a public InvIT. Such an entity will be required
to comply with all provisions of the InvIT rules prescribed for public InvITs.
A private listed InvIT will have to fulfill certain conditions, including obtaining
approval from 75 per cent of the unit holders by value for such public issue of
units.
In addition, a private listed InvIT need to be compliant with all the applicable
listing obligations and disclosure requirements since the date of its listing or
preceding three years, whichever is less.
Sebi said that minimum sponsor(s) contribution for the public issue of units will
be either to the extent of 15 per cent of the units issued through the public issue
or 15 per cent of the post-issue capital.
Further, units offered towards minimum sponsor(s) contribution will be locked-in
for 18 months from the date of listing of units allotted in such a public issue.
However, if any units are already locked-in and the remaining lock-in period is
more than 18 months, the units will continue to be locked-in for such remaining
period.

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1.3. Monetary Policy Highlights

By: - RBI
Issue: - The MPC has opted to maintain an accommodative stance while
leaving the repo rate, reverse repo rate, bank rate and the marginal standing
facility (MSF) rate unchanged.

Key Highlights
Key policy rates including repo rate, reverse repo rate, MSF rate remained unchanged
MPC will continue its growth-supportive stance till the time there are signs of a durable
recovery
Retail inflation for FY23 has been pegged at 4.5%; RBI has retained the 5.3% inflation
projection for FY22
Real GDP growth for FY23 is projected at 7.8%
Variable-rate repo and variable rate reverse repo auctions of 14-day tenor will operate
as the main liquidity management tool.
With effect from March 1, fixed-rate reverse repo and MSF operations will be available
between 5:30 p.m. till 11:59 p.m. on all days
The cap under e-RUPI prepaid digital vouchers has been enhanced from ₹10,000
presently, to ₹1 lakh per voucher and can be used more than once
Increasing the NACH mandate limit to ₹3 crore from ₹1 crore currently for trade-related
settlements has been proposed
On-tap liquidity window for healthcare extended till 30 June
Limit for inflows under the Voluntary Retention Scheme hiked to Rs 2.5 lakh crore from
Rs 1.5 lakh crore
On the growth front, the central bank now sees FY23 growth at 7.8%. Further, it has
forecast Q1FY23 growth at 17.2%, Q2 at 7%, Q3 at 4.3%, and Q4 at 4.5%.

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Repo Rate Unchanged at 4%.

MPC maintain its “Accommodative Stance”.

Reverse Repo Rate – 3.35%

MSF and Bank Rate – 4.25%

CRR – 4% and SLR – 18%

Projection for real GDP FY23 – 7.8%

Retail inflation for FY23 has been pegged at 4.5%

1.4. RBI to prematurely redeem SGBs.

Issue: - The Reserve Bank of India (RBI) has decided to prematurely redeem
sovereign gold bonds (SGBs), which were issued in 2016 at a price of Rs
4,813 per unit of SGB.

Key Highlights
Under central government rules, the premature redemption is permitted after the fifth
year from the date of issue of such gold bonds on the date on which interest is payable,
the RBI said in a statement.
The due date of premature redemption of the above tranche shall be February 8.
Further, the redemption price of SGBs is based on the simple average closing gold price
of 999 purity of the week (Monday-Friday) preceding the date of redemption. The price
is published by the India Bullion and Jewellers Association, the RBI added.

Some Unique Features of SBGs

SGBs are government securities denominated in grams of gold. They are
substitutes for holding physical gold. Investors have to pay the issue price in
cash and the bonds will be redeemed in cash on maturity. The bond is issued
by the RBI on behalf of the Government of India.
The quantity of gold for which the investor pays is protected, since he
receives the ongoing market price at the time of redemption/premature
redemption. SGBs offer a superior alternative to holding gold in a physical
form. The risks and costs of storage are eliminated, according to the RBI's
frequently asked questions.

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2. Finance In NEWS

2.1. ADB Loans to India in 2021

Issue: - As per The Asian Development Bank (ADB), it provided a record

USD 4.6 billion loans to India in 2021, including USD 1.8 billion towards
coronavirus response.
Key Highlights
The Asian Development Bank committed a record USD 4.6 billion in sovereign
lending to India in 2021 for 17 loans, including USD 1.8 billion for the country's
coronavirus disease (COVID-19) pandemic response," the multilateral funding agency
said in a statement.
Of the COVID-19-related assistance, USD 1.5 billion was towards vaccine procurement
and USD 300 million to strengthen primary health care in urban areas and the
country's future pandemic preparedness.
The ADB's India portfolio comprised 69 projects worth USD 15.5 billion as of December
31, 2021.
In addition to sovereign loans, the ADB also committed USD 274 million to private
sector projects in 2021 for COVID-19 support, highways improvement, energy
efficiency, affordable housing and increasing farmer incomes.
The ADB's regular funding programme to India is made to support transport, urban
development, finance, agriculture, and skills building.

More About – Asian Development Bank?

The Asian Development Bank (ADB) is a regional development bank established on 19
December 1966, which is headquartered in the Ortigas Centre located in the city of
Mandaluyong, Metro Manila, Philippines.
The bank admits the members of the United Nations Economic and Social Commission for
Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East
or ECAFE) and non-regional developed countries. From 31 members at its establishment, ADB
now has 68 members.
As of 31 December 2020, Japan and the United States each holds the largest proportion of
shares at 15.571%. China holds 6.429%, India holds 6.317%, and Australia holds 5.773%.

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3. Reports/Index in NEWS

3.1 20 BPS RR hike will help buyer of G-Secs

Issue: - An SBI report has called for a 20-bps increase in reverse repo rate
outside the MPC ambit so that the central bank finds buyers for the flooding
new debt papers.
Report By: - State Bank of India

Key Highlights
The budget 2023 has pegged the Centre's gross borrowing at a record Rs 14.3 lakh
crore and for the FY22 at Rs 10.5 lakh crore, lower than Rs 13.5 lakh crore this fiscal,
while together with the states, the gross borrowing will be Rs 23.3 lakh crore and net
will be Rs 17.8 lakh crore.
The budget seeks to pay back Rs 3.1 lakh crore next fiscal, up from Rs 2.7 lakh crore
this fiscal.
Given this and the rising interest scenario elsewhere and along with the fact the budget
did not speak about the government bond inclusion into global bond indices, Soumya
Kanti Ghosh, group chief economic adviser at State Bank of India, feels that the RBI
cannot but hike the repo rate by 20 bps outside the MPC meeting because rising deposit
rates means lending rates will also have to go up else banks will have to cut into their
margins.
Given all this, the time is now appropriate to go in for a 20-bps hike in the reverse repo
rate, but outside the MPC meeting as enshrined in the RBI Act that clearly lays down
that reverse repo is more of a liquidity management, he said, adding a reverse repo hike
is also required as a larger corridor has resulted in rate volatility.

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4. Other Important NEWS

4.1. NEO Banking

Issue: - According to SBI's assessment, YONO is valued at around $40
billion but analysts say that it would have surpassed or hit $50 billion in
2021.

Key Highlights
Neo banks — purely digital banks with no physical presence — are slowly catching the
fancy of Indian consumers.
Some of them are already making waves globally. With 54 million monthly active users
(MAUs), SBI YONO has hit the number one slot in the global list of top neo banks across
the globe with a growth of over 35 per cent in MAUs in 2021 according to latest data
from App Annie.
The number for YONO is even higher if the lighter version of the app, SBI YONO Lite is
also added to its MAU figure.
It is fourth in the global pecking order with 18 million MAUs and when this is added to
SBI YONO’s 54 million MAUs, the total comes to 73 million.
This accounts for over half of the MAUs globally of the top five players in the neo bank
space.

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What is Neo-Banking?
Neo-banks are online-only financial technology (fintech) companies that operate
solely digitally or via mobile apps. Simply put, neo-banks are digital banks without
any physical branches.
It’s a wide umbrella of financial service providers who beseech today’s tech-savvy
customers. Neobanks can be called fintech firms that provide digital and mobile-
first financial solutions payments and money transfers, money lending, and more.
Neobanks don’t have a bank license of their own but count on bank partners to
provide bank licensed services.

4.2. LIC 3rd largest globally : CRISIL Report

Issue: - LIC 3rd largest globally, but offers highest RoE of 82%, says Crisil
report.
Released By: - CRISIL

Key Highlights
Life Insurance Corporation (LIC) is not only the world's largest when it comes to home-
market share with over 64.1 per cent of the total gross written premium as of 2020 but
also the one that offers the highest return on equity at 82 per cent, apart from being
the third largest in terms of life insurance premium, says a Crisil report.
While for LIC the market share has been steadily declining--down from 100 per cent in
the pre-2000 era to 71.8 per cent in 2016 and further down to 64.1 per cent in 2020,
for SBI Life, which is the second largest in the country, the same was only 5 per cent
in 2016 and 8 per cent in 2020, Crisil said in a report prepared in November 2021
which is not yet made publicly available.
LIC is ranked third in terms of gross written premium of USD 56.405 billion in fiscal
2021.
In terms of total assets, LIC is the sixth largest in the world with USD 522 billion
clipping at 8 per cent annually between 2019 and 2021.

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4.3. Rs. 1500 Crore through tier-II bonds.

Issue: - Private sector lender IDFC First Bank has raised Rs 1,500 crore in
capital through maiden issue of tier-II bonds to bolster capital profile and
support business growth.

Key Highlights
The initial issue size was of Rs 1,000 Crore with a green shoe option of up to Rs 500
crore. The subscription participation to bonds placed privately came from domestic
investors including Life Insurance Corporation of India which subscribed to more than
60 per cent of the issue size, bank said in a statement.
With this Tier-2 capital raise, the capital adequacy would be enhanced to 16.5 per cent
(calculated on the financials as of December 31, 2021).
Its capital Adequacy Ratio (CAR) stood at 15.38 per cent with Common Equity Ratio of
14.83 per cent in December 2021. Private bank's assets grew by 11 per cent Year on
Year (YoY) to reach Rs 1,22,219 crore by end of December 2021. The retail Loan and
Commercial finance grew by 26 per cent YoY to reach Rs 86,052 crore.

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5. One Liner

Headline Important Points based on NEWS

Indian Bank ➔ Indian Bank posted a 34 per cent year-on-year
Profit (YoY) rise in net profit during the December
quarter to Rs 690 crore, led by an improvement in
asset quality.
➔ “A major reason for the rise in net profit was
improvement in asset quality. Deposits and Casa
ratio during the quarter also improved,” said
Shanti Lal Jain, the managing director and chief
executive officer.
Xpressbees ➔ Pune-based logistics start-up Xpressbees has
Series F raised $300 million in a Series F funding round,
Funding making it the 8th company in 2022 to become a
unicorn. The latest fundraise values the firm at
$1.2 billion. The funding round was led by private
equity funds Blackstone Growth, TPG Growth and
ChrysCapital, and includes a primary capital
infusion of $100 million and a secondary share
sale worth $200 million.
GST Collection ➔ GST collection in January crossed Rs 1.38 trillion
January in January, a growth of 15 per cent over the year-
ago period, on pick up in economic activity and
anti-evasion measures, the Finance Ministry said
on Monday.
➔ January is the fourth month when Goods and
Services Tax (GST) collection has crossed the Rs
1.3 trillion-mark, and seventh month in a row
when it crossed the Rs 1 trillion-mark.
S&P Ratings ➔ Standard and Poor's (S&P) has lowered Future
Retail Ltd's long-term issuer credit rating from
"CCC-" to "D" after the company failed to repay
dues.
➔ Future Retail Ltd failed to make the principal
payments due on its restructured domestic bank
borrowings on December 31, 2021. The 30-day
review period (grace period to pay) allowed by
India's central bank has ended, S&P said in a
statement.
Licence ➔ The Reserve Bank of India (RBI), vide order dated
Cancelled by February 02, 2022, has cancelled the licence of
RBI Independence Co-operative Bank Ltd., Nashik,
Maharashtra. Consequently, the bank ceases to
carry on banking business, with effect from the
close of business on February 03, 2022. The

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Commissioner for Cooperation and Registrar of
Cooperative Societies, Maharashtra has also been
requested to issue an order for winding up the
bank and appoint a liquidator for the bank.
➔ The Reserve Bank cancelled the licence of the bank
as:
➔ The bank does not have adequate capital and
earning prospects. As such, it does not comply
with the provisions of Section 11(1) and Section 22
(3) (d) read with Section 56 of the Banking
Regulation Act, 1949.
IndusInd Bank ➔ IndusInd Bank has filed for bankruptcy
filed proceedings against Zee Entertainment Enterprises
bankruptcy at the Mumbai Bench of the National Company
proceeding Law Tribunal (NCLT), the company said.
against Zee ➔ The firm said in its exchange filing that IndusInd
Bank claims to be the financial creditor before the
NCLT for initiation of corporate insolvency
resolution process against Zee and has claimed a
default of Rs 83 crore.
Foreign ➔ The country’s foreign exchange reserves fell
Exchange sharply during the week ended January 28, 2022
Reserve due to revaluation among foreign currency assets.
➔ According to the latest Reserve Bank of India (RBI)
data, total reserves fell by $4.5 billion during the
week mainly due to fall in foreign currency assets
of $3.5 billion.
➔ Gold reserves fell by 844 million during the week.
As at end-September 2021, the RBI held 743.84
metric tonnes of gold.
➔ While 451.54 metric tonnes of gold is held overseas
with the Bank of England and the Bank for
International Settlements (BIS), 292.3 tonnes of
gold is held domestically.
ASEAN Digital ➔ During the second ADGMIN, India and ASEAN
Work Plan countries have approved the India – ASEAN Digital
Work Plan. ADGMIN is ASEAN Digital Ministers
meet. The meet was held virtually.
➔ Under the plan, the countries will share their
knowledge in the emerging areas of digital
technologies such as 5G, Internet of Things, cyber
forensics and advanced Satellite communication.
➔ They will work together and develop technologies to
fight against internet hacking, mobile phone
stealing. Also, they will formulate plans to combat
the wrong anti – social use of stolen mobile
phones.

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Corporate Tax ➔ The United Arab Emirates (UAE) announced to
by UAE introduce a corporate tax from mid-2023, in a bid
to diversify its income.
➔ The corporate tax regime of UAE will be amongst
most competitive worldwide. There will be a
corporate tax of 9% for businesses with net annual
profit over AED 375,000, and a 0% for businesses
with net annual profits of less than AED 375,000.
India Press ➔ The India Press Freedom Report, 2021 was
Freedom recently released by the Rights and Risks Analysis
Report, 2021 Group. According to the report, 13 media houses
and newspapers were targeted in the country, 108
journalists were attacked, and 6 journalists were
killed.
➔ The highest number of journalist attack was in
Jammu and Kashmir. J&K faced more than 25
attacks.
➔ The second highest was in Uttar Pradesh with 23.
UP was followed by Madhya Pradesh (16), Tripura
(15), Delhi (8), Bihar (6), Assam (5), Haryana(4) and
Maharashtra (4), Goa (3), Manipur (3), Karnataka
(2), West Bengal (2), Tamil Nadu (2), Andhra
Pradesh (1), Kerala (1), Chhattisgarh (1).
➔ Jammu and Kashmir had maximum number of
attacks. On the other hand, Tripura had maximum
number of attacks by non – state actors.
➔ Eight women journalists faced summons, FIR and
arrest.
➔ 24 journalists were attacked physically,
obstructed, threatened, and harassed for doing
their works. All these attacks were made by public
officials. This includes police attacks as well. 17 of
these attacks were police attacks.
➔ 44 FIRs were registered against journalists in
2021. Of this 21 were registered under Section 153
of IPC.
Sales Force ➔ India scored the highest place in Sales Force
Global Digital Global Digital Skills Index, 2022. The index was
Skills Index, created comparing 19 countries. The index was
2022 calculated based on the readiness of the citizens in
learning new digital skills and employee
sentiments. Of all the countries, India had the
highest readiness score. India scored 63 out of
100.
➔ 60% of the Indians are equipped with digital
resources. Only 25% of the respondents in India
believe that advanced technological skills are must
at workplace. Only 39% of Indians believe that
their work place had advanced digital marketing

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skills. More than half of the respondents wanted to
learn new skills, mainly to progress in their career.
Younger respondents were more confident. They
had ambitious goals of learning new skills.
➔ According to the index, India is create 1,3 million
jobs by 2026. Also, India will generate 66.4 billion
USD of new business revenue by 2026.
Unitary Digital ➔ India has agreed to provide a grant to Sri Lanka for
Identity implementing a ‘Unitary Digital Identity framework’
Framework ➔ The Unitary Digital Identity Framework is
apparently modelled on the Aadhaar card.
➔ Sri Lankan government will give priority to the
implementation of this Framework as a national
level programme.
➔ Sri Lanka’s Cabinet of Ministers approved this
proposal made by President Rajapaksa, to sign a
Memorandum of Understanding with India to
obtain the grant and launch this project.
➔ This project comes amid substantive economic
assistance from India, worth USD 1.4 billion to Sri
Lanka, since the start of 2022 to help Sri Lanka
cope with its dollar crunch, and import food,
medicines and fuel due to shortages.
Women in the ➔ The Women in the Boardroom report was recently
Boardroom released by Deloitte Global. This is the seventh
Report edition of the report. According to the report,
women hold only 17.1% board seats in India.
However, this has increased. In 2014, it was 9.4%.
2014 has been taken as base year of comparison
because in 2013, the companies act mandated that
every board should have at least one woman
member.
➔ The report said that only 3.6% of the chairpersons
are women in the country. The women
representation in chair positions has come down in
the last four years. Globally, the women
representation in boards is 19.7%. This has
increased by 2.8% as compared to 2018. Between
2016 and 2018, the increase was 1.9%. At this
pace, the equality in representation all over the
world shall be achieved only by 2045.

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 CURRENT AFFAIRS
11th Feb 2022 to 20th Feb 2022 CA

Contents
................................................................................................................................................................ 2
1. RBI/SEBI/NABARD In NEWS ................................................................................................ 2
1.1. Regulations Review Authority (RRA 2.0) ................................................................ 2
1.2. Financial Literacy Week 2022 ..................................................................................... 3
1.3. SEBI announced the trading features for (EGR) .................................................. 4
1.4. Separation of MD and Chairman Post Voluntary ................................................ 5
2. Finance In NEWS ....................................................................................................................... 6
2.1. NBFCs get extra 6-months ............................................................................................ 6
2.2. Nepal to become first country ..................................................................................... 6
3. Reports/Index in NEWS .......................................................................................................... 7
3.1 NITI seeks GST waiver for 'rights to use' transfers.............................................. 7
3.2 Financial Times Global MBA Rankings ..................................................................... 8
4. Other Important NEWS ........................................................................................................... 9
4.1. Notorious List ...................................................................................................................... 9
4.2. Fintech Open Hackathon ............................................................................................. 10
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5. One Liner ..................................................................................................................................... 11

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1. RBI/SEBI/NABARD In NEWS

1.1. Regulations Review Authority (RRA 2.0)

Issue: - The Reserve Bank of India has set up a Regulations Review

Authority (RRA 2.0) with an objective to reduce the compliance burden on
Regulated Entities (REs). RRA had recommended withdrawal of few circulars
and other things as below.
Circular By – RBI.
Chairman of the group: - Dr. O.P. Mall, Executive Director
Why: - These recommendations are expected to ease regulatory compliance
for the regulated entities while improving the accuracy, speed and quality of
data submission.

Key Highlights
In continuation of the exercise, RRA has now recommended withdrawal of additional
100 circulars in the second tranche of recommendations.
Further, on the suggestions of an internal group, the RRA has recommended
elimination of paper-based returns and has identified 65 regulatory returns which
would either be discontinued/ merged with other returns or would be converted into
online returns.
The RRA has also recommended creation of a separate web page “Regulatory Reporting”
in the RBI website to consolidate information relating to regulatory reporting and return
submission by the regulated entities at a single source.

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1.2. Financial Literacy Week 2022

Issue: - Reserve Bank of India (RBI) has been conducting Financial Literacy
Week (FLW) every year since 2016 to propagate financial education
messages on various themes among members of public across the country.
Theme: - Go Digital, Go Secure

Key Highlights
The theme selected for current year FLW is “Go Digital, Go Secure” which will be
observed between February 14-18, 2022.
This theme is one of the strategic objectives of the National Strategy for Financial
Education 2020-2025.
Focus will be on creating awareness about
A. Convenience of digital transactions;
B. Security of digital transactions; and
C. Protection of customers.
Banks have been advised to disseminate the information and create awareness
among their customers and general public

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1.3. SEBI announced the trading features for (EGR)

Circular By: - SEBI

Issue: - The gold exchange, which is the ecosystem of trading of EGR and
physical delivery of gold, would be a national platform for buying and selling
EGRs issued against physical gold. SEBI would regulate the entire
ecosystem of the proposed gold exchange.

Key Highlights
SEBI Board in its meeting held on September 28, 2021 approved the framework for
Gold Exchange and SEBI (Vault Managers) Regulations, 2021.
The EGRs were later notified as ‘securities’ under the Securities Contracts (Regulation)
Act 1956 in December 2021, paving the way for operationalization of Gold Exchange in
India. Subsequently, framework for operationalizing the Gold Exchange in India were
also issued.
Trading hours - Trading in EGR segment shall be permitted from Monday to Friday.
The pre-open session will be for a duration of 15 minutes - from 8:45 AM to 9:00 AM,
out of which 8 minutes shall be allowed for order entry, order modification and order
cancellation, 4 minutes for order matching and trade confirmation and the remaining
3 minutes shall be the buffer period to facilitate the transition from pre-open session
to the normal market.
The session shall close randomly during last one minute of order entry i.e. anytime
between 7th and 8th minute of the order entry.
Price bands - The initial price limit for the price band shall be set at 10% of the previous
closing price. In the event of a market trend in either direction, the dynamic price bands
may be relaxed by the stock exchanges in increments of 5%.
Unique Client Code - For transactions in EGR segment, it is mandatory for all clients
to have Unique Client Code (UCC).
The stock exchanges shall not allow execution of trades without uploading of the UCC
details.

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1.4. Separation of MD and Chairman Post Voluntary

Issue: - Sebi makes separation of Chairman, MD posts voluntary for India

Inc.

Key Highlights
The Securities and Exchange Board of India (Sebi) on Tuesday made it voluntary for
India Inc to have a separate chairperson and managing director (MD)/chief executive
officer (CEO). The move comes weeks ahead of the April 1, 2022 deadline by which the
top 500 listed companies by market value had to install two separate, and unrelated,
persons as chairman and MD/CEO.
SEBI Said - Considering rather unsatisfactory level of compliance achieved so far with
respect to this corporate governance reform, various representations received,
constraints posed by the prevailing pandemic situation, and with a view to enabling the
companies to plan for a smoother transition, as a way forward, the Sebi board at this
juncture has decided that this provision may not be retained as a mandatory
requirement and instead be made applicable to the listed entities on a voluntary basis.
Benefits to company like - Some of the top companies that will benefit from the move
are Reliance Industries (where Mukesh Ambani holds both posts), Hindustan Unilever
(Sanjiv Mehta), Bajaj Finserv (Sanjiv Bajaj), and Adani Ports (Gautam Adani).

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2. Finance In NEWS

2.1. NBFCs get extra 6-months

Issue: - NBFCs get extra 6-months to keep system ready to implement NPA
norms. In November 2021, RBI had given time till March 31, 2022 to
implement the rule
Key Highlights
The Reserve Bank of India (RBI) has given finance companies extra time till
September 30, 2022 to have systems ready to implement rule wherein bad loans can
be upgraded as ‘standard’ asset only when entire arrears of interest and principal are
paid.
In November 2021, RBI had given time till March 31, 2022 to implement the rule.
RBI in a notification said the definition of ‘out of order’ will apply to all loans offered as
an overdraft facility. This includes overdrafts not meant for business purposes and also
those which entail interest repayments as the only credits.
The ‘previous 90 days period’ for determining ‘out of order’ status of a Cash Credit and
Overdraft account will include the day for which the day-end process is being run.
Moreover, when borrowers have more than one credit facility with the lender, they have
to repay the entire arrears of interest and principal for all the credit facilities to upgrade
the account from non-performing asset to standard asset category.

2.2. Nepal to become first country

Issue: - Nepal to become first country to deploy India's UPI platform. Also, it will
enable real-time cross-border P2P remittances between Nepal and India. Nepal
becomes the first country outside India to adopt UPI.

Key Highlights

The international arm of National Payments Corporation of India (NPCI), NPCI

International Payments, is set to deploy India's flagship payment platform Unified
Payments Interface (UPI) in Nepal to bolster interoperable real-time person-to-person
(P2P) and merchant payment transactions in the country.
Also, it will enable real-time cross-border P2P remittances between Nepal and India.
Nepal becomes the first country outside India to adopt UPI.

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has joined hands with Gateway Payments Service, the authorised
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operators in Nepal, and Manam Infotech to deploy UPI in Nepal.
 Crack Grade B
3. Reports/Index in NEWS

3.1 NITI seeks GST waiver for 'rights to use' transfers

Issue: - At present, the transfer of 'Rights to Use' is considered a supply

under the GST regime, and attracts 18 per cent tax in the hands of the new
entity or special purpose vehicle.
Report By: - NITI Aayog

Key Highlights
To enable easier monetisation of assets, the NITI Aayog may seek a waiver of goods and
services tax (GST) on ‘Rights to Use’ while transferring an asset to a new entity.
At present, the transfer of ‘Rights to Use’ is considered a supply under the GST regime,
and attracts 18 per cent tax in the hands of the new entity or special purpose vehicle
(SPV). For monetisation, assets are carved out into a separate entity or SPV by
transferring rights. Such assets are housed in the parent entity’s balance sheet, and
need to be separated for monetisation
With the Rs 6-trillion National Asset Monetisation Pipeline (NMP) rolled out last August,
public sector enterprises have realised about Rs 26,800 crore, with another Rs 15,000-
16,000 crore to be realised soon by the roads ministry. Some public sector
undertakings (PSUs) have reached out to the NITI Aayog, the policy think tank
managing the NMP, to seek a GST waiver on transfer of assets.
The 18 per cent GST is seen as a hurdle in acquisition due to additional costs.
While transferring an asset to a separate entity, its value is computed based on its
future cash flows. An 18 per cent GST liability will be recovered from the new investor,
leading to an additional expense for the private sector participant. However, the
intrinsic value of the asset would not include the GST component, experts said. Such
a waiver is being sought to make propositions attractive for investors.

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3.2 Financial Times Global MBA Rankings

Issue: - Global B School rankings by Financial Times

Key Highlights
The FT rankings are based on data provided by participating schools and alumni, with
significant weightings given to salary and salary increase three years after completion,
as well as factors including academic research output, and student and faculty
diversity measured by gender mix and citizenship.
Top Indian business schools (B-schools) fell in their representation in the latest
Financial Times (FT) Global MBA 2022 ranking even as Indian School of Business (ISB)
led the pack from India this year.
While ISB fell by nine places to 32nd rank for its Post Graduate Programme in
Management (PGP), the Indian Institute of Management (IIM) Bangalore fell by 18
places to rank at 53rd position down from last year's 35th rank.
IIM Ahmedabad declined by 14 places to 62nd rank globally while IIM Calcutta was
ranked 68th, down by 24 places from 44th position last year.
Apart from being top ranked in India and fourth in Asia in the FT Global MBA 2022
ranking, ISB was ranked number one globally in terms of salary percentage increase,
underlining ISB students' career path.

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4. Other Important NEWS

4.1. Notorious List

Issue: - US adds e-comm sites operated by Tencent, Alibaba to 'notorious
list'.

Key Highlights
E-commerce sites operated by China's Tencent Holdings Ltd and Alibaba Group
Holding Ltd were added to the U.S. government's latest "notorious markets" list.
The list identifies 42 online markets and 35 physical markets that are reported to
engage in or facilitate substantial trademark counterfeiting or copyright piracy.
China-based online markets Baidu Wangpan, DHGate, Pinduoduo, and Taobao also
continue to be part of the list, along with nine physical markets located within China
"that are known for the manufacture, distribution, and sale of counterfeit goods.
Inclusion on the list is a blow to the reputation of companies but carries no direct
penalties.

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4.2. Fintech Open Hackathon

Issue: - NITI Aayog in association with PhonePe (Digital Payment Service
Provider), will be hosting the first-ever open-to-all Fintech Open Hackathon
that aims to showcase path-breaking solutions for the fintech ecosystem.

Key Highlights
The Hackathon will provide an opportunity for innovators, digital creators and
developers from all over India to think, ideate and code. Winning teams stand to win
exciting cash prizes worth Rs 5 lakhs.
Participants at the hackathon need to use any open-data APIs (Application Programme
Interface) like PhonePe Pulse along with frameworks such as Account Aggregator.
Participants can use data sources like PhonePe Pulse, the Open Government Data
Platform and RBI (Reserve Bank Of India) reports on payments to build on their
submission.
In addition, they can access any other open data platforms that they are aware of along
with the Setu AA Sandbox or the Setu Payments Sandbox to develop their hacks.
By the end of the event, participants will be required to present a working prototype of
their hack to the judges, post which each hack will be judged based on certain
parameters.

What is Fintech?
Fintech describes an emerging financial services sector in the 21st century.
Originally, the term applied to technology applied to the back-end of
established consumer and trade financial institutions.
Since the end of the first decade of the 21st century, the term has expanded
to include any technological innovation in the financial sector, including
innovations in financial literacy and education, retail banking, investment
and even crypto-currencies like bitcoin.

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5. One Liner

Headline Important Points based on NEWS

India’s Factory ➔ India’s factory output growth decelerated to its
Output lowest in 10 months to 0.4 per cent in December
amid Omicron-led restrictions, signaling that the
economic recovery in Asia’s third-largest economy
remains fragile.
➔ The data released by the statistics department on
Friday showed that manufacturing activity
contracted by 0.1 per cent during the month, while
mining and electricity output grew at 2.6 per cent
and 2.8 per cent, respectively.
Replacing ➔ The Central government has set the target for
Diesel by 2024. replacing diesel with renewable energy in the
agricultural sector by 2024.
➔ The Union Minister for Power, New and Renewable
energy, R K Singh on Friday said this is in line
with the government’s commitment to increase the
share of non-fossil fuels by 2030 and become a net
zero emitter by 2070.
Police ➔ The Union government has approved the
Modernisation continuation of a mega police modernisation
scheme for five years up to 2025-26 with a
financial outlay of Rs 26,275 crore.
➔ The Union Home Ministry said the scheme
includes security-related expenditure in Jammu
and Kashmir, northeastern states and Maoists-
affected areas, for raising new battalions,
developing high-tech forensic laboratories and
other investigation tools.
India’s Export ➔ India’s exports grew at a slower pace in January,
after recording the highest-ever monthly outbound
shipments of goods in December, showed data
released by the commerce and industry ministry
on Tuesday.
➔ However, exports remained above the $30 billion-
mark for the eleventh consecutive month amid a
surge in Omicron cases across the globe.
Merchandise exports grew 27.54 per cent year-on-
year (YoY) to $34.5 billion in January as demand
for Indian products remained robust.
➔ Engineering goods, petroleum products, gems and
jewellery, organic and inorganic chemicals, drugs
and pharmaceuticals, were the top export
categories.

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GST Update on ➔ Income earned from providing guest lectures will
Income Earned attract 18 per cent GST, the Karnataka bench of
from Guest AAR has ruled.
Lecture ➔ While passing the ruling, the AAR said the said
service falls under the category of other
professional, technical and business services and
does not fall under the exempted category of
services. Hence, the said services provided by the
applicant attract GST of 18 per cent, it said.
➔ The AAR ruling would mean that service
professionals whose turnover exceeds Rs 20 lakh
will have to pay 18 per cent goods and services tax
(GST) on income earned from providing guest
lectures.
AON Survey ➔ Salary increments in India will touch a five-year
high of 9.9 per cent in 2022 as organisations are
planning to invest in new-age capabilities to build
a resilient workforce amid strong economic
recovery and positive business sentiment, a survey
said on Wednesday.
➔ According to leading global professional services
firm Aon's 26th Salary Increase Survey in India,
organizations across industries project a 9.9 per
cent salary increase in 2022, compared to 9.3 per
cent in 2021.
➔ The study that analysed data across 1,500
companies from more than 40 industries, noted
that the industries with the highest projected
salary increases are e-commerce and venture
capital, hitech/IT and IT enabled services (ITeS)
and life sciences.
➔ The country's foreign exchange reserves declined
by USD 1.763 billion to USD 630.19 billion in the
week ended on February 11, the RBI data showed.
Foreign ➔ In the previous week ended February 4, the
Exchange reserves had risen by USD 2.198 billion to USD
Reserve 631.953 billion. It touched a lifetime high of USD
642.453 billion in the week ended on September 3,
2021.
➔ During the reporting week, the fall in the reserves
was on account of a decline in the foreign currency
assets (FCA), a major component of the overall
reserves.
➔ FCA dipped by USD 2.764 billion to USD 565.565
billion in the week ended February 11.
Central Board ➔ The Central Government has nominated Shri
of RBI Sanjay Malhotra, Secretary, Department of
Financial Services, Ministry of Finance,
Government of India as a Director on the Central

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Board of Reserve Bank of India vice Shri Debasish
Panda. The nomination of Shri Sanjay Malhotra is
effective from February 16, 2022 and until further
orders.
RBI included ➔ ‘Sikkim State Co-operative Bank Ltd.’ has been
Sikkim State included in the Second Schedule to the Reserve
Co-Operative Bank of India Act, 1934 vide notification
bank Ltd on DOR.RUR.No.S1627/19.51.025/2021-22 dated
2nd Schedule. October 12, 2021 published in the Extraordinary
Gazette of India (Part III - Section 4) dated January
18, 2022.
RBI on G-Sec ➔ The Reserve Bank of India will not be conducting
any more conversion of government securities in
the current financial year as the budgetary
provision for switches has been completed, the
central bank.
➔ On a review, as the budgetary provision of switches
for the current year has been completed, it has
been decided, in consultation with the Government
of India, not to conduct the switch auctions
scheduled to be held in February and March
2022,” RBI said in a statement.
Outlook on ➔ Revising the outlook on state finances to
State Finance "improving" in FY23 from "neutral", India Ratings
expects the aggregate fiscal deficit of the states to
come in at 3.6 per cent of their gross domestic
product from 3.5 per cent in FY22 on the back of
robust revenue growth.
➔ The agency had earlier forecast the fiscal deficit of
the states to print in at 4.1 per cent.
➔ The upward revision is due to the better-than-
expected growth in revenue receipts and higher
growth in the nominal GDP in FY22, India Ratings
said in a note on Friday.
➔ The agency also estimates the national nominal
GDP to grow 17.6 per cent this fiscal, higher than
the previous estimate of 15.6 per cent.
➔ Accordingly, the agency expects gross and net
market borrowings by the states in FY22 to be
lower than at Rs 6.6 lakh crore and Rs 4.6 lakh
crore, respectively, than its previous estimate of Rs
8.2 lakh crore and Rs 6.2 lakh crore.
➔ The report also expects the states' aggregate debt
to GDP ratio to increase marginally to 29.5 per
cent in FY23 from 29.3 per cent in FY22 keeping
with the debt burden trajectory recommended by
the 15th Finance Commission for the FY22-26
award period. The Finance Commission has

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 Crack Grade B
recommended the states' aggregate debt/GDP at
31.3 per cent for FY23.
SBI Ecowrap ➔ The country's gross domestic product (GDP) is
Report likely to grow at 5.8 per cent in the third quarter of
fiscal 2022, according to an SBI's research report-
Ecowrap.
➔ The country's economy expanded by 8.4 per cent
in the second quarter of 2021-22, to cross pre-
pandemic levels.
➔ However, the GDP growth in July-September
period was slower than the 20.1 per cent
expansion in the previous quarter.
➔ The National Statistical Office (NSO) will declare
the GDP estimates for Q3 FY 2021- 22 on February
28.

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 CURRENT AFFAIRS
21st Feb 2022 to 28th Feb 2022 CA

Contents
................................................................................................................................................................ 1
1. RBI/SEBI/NABARD In NEWS ................................................................................................ 1
1.1. RBI asked NBFC to implement Core Banking Solutions .................................. 1
1.2. Quarterly Statistics on Deposits and Credit of SCBs ........................................ 2
1.3. All-India House Price Index (HPI) for Q3:2021-22 .............................................. 3
1.4. Corporate Governance: Related Party Transaction ............................................ 4
1.5. Amendments in Payments Systems Rules ............................................................. 5
2. Finance In NEWS ....................................................................................................................... 6
2.1. API Holdings gets Sebi nod for Rs 6,250-cr IPO .................................................. 6
2.2 Non-Fungible Tokens ......................................................................................................... 7
2.3. Russia Banned from SWIFT ........................................................................................... 8
3. Reports/Index in NEWS .......................................................................................................... 9
3.1 Liberalised Remittance Scheme (LRS)....................................................................... 9
3.2 Annual Frontiers Report 2022 .................................................................................... 10
3.3 USCC International Intellectual Property Index ................................................. 11
4. Other Important NEWS ......................................................................................................... 12
4.1. ‘REWARD’ Project ............................................................................................................ 12
5. One Liner ..................................................................................................................................... 13
 Crack Grade B
1. RBI/SEBI/NABARD In NEWS

1.1. RBI asked NBFC to implement Core Banking Solutions

Issue: - RBI asks NBFCs to enable Core Fin Services Solution akin to that in
banks.
Circular By – RBI.
Applicable to: - All Non-Banking Financial Companies.
Why: - It will provide seamless customer interface in digital offerings and
transactions relating to products and services with anywhere / anytime
facility, the RBI said in a statement. Further, it will enable integration of
NBFCs’ functions, provide centralised database and accounting records, and
be able to generate a suitable management information system (MIS), both for
internal purposes and regulatory reporting.

Key Highlights
NBFCs – Middle Layer and NBFCs - Upper Layer with 10 and more ’Fixed point service
delivery units’1 as on October 1, 2022 shall be mandatorily required to implement ‘Core
Financial Services Solution (CFSS)’, akin to the Core Banking Solution (CBS) adopted
by banks.
The CFSS shall provide for seamless customer interface in digital offerings and
transactions relating to products and services with anywhere / anytime facility, enable
integration of NBFCs’ functions, provide centralised database and accounting records,
and be able to generate suitable MIS, both for internal purposes and regulatory
reporting.
A quarterly progress report on implementation of the Core Financial Services Solution,
along with various milestones as approved by the Board / Committee of the Board,
shall be furnished by the NBFC to the Senior Supervisory Manager (SSM) Office of
Reserve Bank starting from quarter ending March 31, 2023.
This circular is issued under Sections 45L and 45M of Reserve Bank of India Act,1934.

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 Crack Grade B
What is Fixed Point Service Delivery Unit?
A fixed-point service delivery unit is a place of operation from where the
business activity of non-banking financial intermediation is carried out by the
NBFC and which is manned either by its own staff or outsourced agents. It
carries uniform signage with the name of the NBFC and functions under
administrative control of the NBFC.

1.2. Quarterly Statistics on Deposits and Credit of SCBs

Issue: - Data on credit and deposits disaggregated by type, are classified by

states/union territories (UTs), districts, centres, population groups and
bank groups. These data are collected from all SCBs (including Regional
Rural Banks, Small Finance Banks and Payments Banks) under the Basic
Statistical Return (BSR)
By: - RBI

Key Highlights
Bank credit growth (y-o-y) improved during successive quarters of the current
financial year and stood at 8.4 per cent in December 2021 (5.6 per cent in March
2021).
Higher credit growth was driven by pick-up in lending by metropolitan branches
of banks, which accounted for over 60 per cent of total bank credit of SCBs and
recorded 6.4 per cent growth (y-o-y) in December 2021 (1.7 per cent in March
2021); urban, semi-urban and rural branches maintained double digit growth.
Growth (y-o-y) in aggregate deposits moderated to 9.6 per cent in December 2021
(12.3 per cent in March 2021) as both public sector and private sector banks
recorded lower growth.
Private sector banks continued to outpace public sector banks in credit and
deposit growth.
The share of current account and savings account (CASA) deposits in total
deposits of SCBs increased further to 44.7 per cent in December 2021 (44.1 per
cent in March 2021); CASA deposits had 57.1 per cent share in incremental
deposits during the first nine months of the current financial year.
All-India credit-deposit (C-D) ratio at 71.6 per cent in December 2021 remained
close to its March 2021 level; the ratio exceeded 90 per cent for Andhra Pradesh,
Tamil Nadu, Telangana and Maharashtra as well as the union territory of
Chandigarh.

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1.3. All-India House Price Index (HPI) for Q3:2021-22

Data By: - RBI

Issue: - The Reserve Bank released its quarterly house price index (HPI)1
(base: 2010-11=100) for Q3:2021-22, based on transaction-level data
received from housing registration authorities in ten major cities (viz.,
Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata,
Lucknow, and Mumbai).

Key Highlights
All India HPI recorded an annual growth (y-o-y) of 3.1 per cent in Q3:2021-22 as
compared with 2.4 per cent in the previous quarter and 2.2 per cent a year ago. HPI
growth varied widely across the cities - ranging from an increase of 19.8 per cent (Kochi)
to a decline of 4.1 per cent (Chennai).
On a sequential (q-o-q) basis, all India HPI registered an increase of 3.1 per cent in
Q3:2021-22. While Chennai and Kanpur recorded sequential decline in HPI during the
current quarter, the index increased for the remaining cities with Delhi recording the
highest sequential growth of 9.5 per cent.

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1.4. Corporate Governance: Related Party Transaction

Background: - In February 2019, as regulators stepped up scrutiny of

corporate governance and business practices in the fraud-hit housing
finance company, Dewan Housing Finance Corporation, the resignation
letter of one of the independent directors cited allegations of illegal related
party transactions (RPTs) involving promoter group companies.
Inte-rest-ingly, in its communication to the stock exchange, the company
cited “personal reasons” for the resignation of the independent director.
What is RTPs: - RPTs are susceptible to use and abuse by promoter groups
and businesses to siphon off funds is something regulators, policymakers,
investigators and board members have been acutely aware of for many
years. As a result, the regulatory scrutiny over such transactions has
progressively increased over the years. But so has the pushback from
companies and business to enhance oversight, citing higher compliance
burden, which, they argue, goes against the grain of declared government
policy of making it easier to do business.
OEDCs Factbook 2021 Says: - Data from OECD Factbook on Corporate
Governance, 2021, points out that corporate ownership of three largest
shareholders in 28 out of 45 large jurisdictions was at more than 50 per
cent of the company’s equity, with countries such as the Un­ited States,
Australia, Finland, Canada and United Kingdom showing the least
ownership concentration ranging between 33 and 36 per cent. “In the case
of India, the ownership concentration of the promoter group goes above 70
per cent for listed groups.
Challenges with RTPs: - Corporate governance experts point out that the
biggest challenge for regulators to curb misuse is figuring out non-
disclosure of RPTs.
What SEBI Says: -

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 Crack Grade B
1.5. Amendments in Payments Systems Rules

Issue: - The Reserve Bank of India has amended the Payments and
Settlement Systems Regulations. This system allows the companies who are
seeking to run payment businesses to apply for licenses from the regulator.

Key Highlights
The application for licensing should include the technology platform which is to be
used, the operator’s process flow, interoperability with operators of the other payment
systems, and security features.
As per the rules that have been set, the operators will be required to submit all
documents and information which are desired by the RBI from time to time.
Three months after the closing of the account, annual accounts also have to be
submitted by the system provider to the regulator along with a copy of the audited
balance sheet.

What is a Payment System?

It is a system that is used to settle financial transactions. It is done through
monetary value transfer and includes several mechanisms that facilitate
fund transfer from one party to another. The payment system includes the
participants and the users, the technologies and standards on which the
system operates, and the rules and regulations that guide its operation.

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2. Finance In NEWS

2.1. API Holdings gets Sebi nod for Rs 6,250-cr IPO

Issue: - API Holdings, the parent company of PharmEasy, Adar Poonawalla-
backed Wellness Forever Medicare and metal recycling firm CMR Green
Technologies received Sebi's nod for IPOs.
Key Highlights
API Holdings, the parent company of pharmacy platform PharmEasy, Adar
Poonawalla-backed Wellness Forever Medicare and metal recycling firm CMR Green
Technologies have received markets regulator Sebi's go-ahead to raise funds through
initial share sales.
These firms, which filed their preliminary papers with Sebi between September and
November 2021, obtained observation letters from Sebi during February 16-17, an
update with the regulator showed on Monday.
Going by the draft papers, API Holdings is looking to raise Rs 6,250 crore through the
IPO.
The IPO consists of a fresh issue of equity shares aggregating to Rs 400 crore and an
offer for sale up to 16,044,709 equity shares, as per the Draft Red Herring Prospectus
(DRHP).

What is IPO?
An initial public offering (IPO) refers to the process of offering shares of a private
corporation to the public in a new stock issuance. An IPO allows a company to
raise capital from public investors.
The transition from a private to a public company can be an important time for
private investors to fully realize gains from their investment as it typically includes
a share premium for current private investors. Meanwhile, it also allows public
investors to participate in the offering.

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2.2 Non-Fungible Tokens

Issue: - According to a report, the sales of Non-Fungible Tokens (NFTs) surged USD
25 billion in 2021 as the crypto asset exploded in popularity. However, some
experts believe NFTs are a bubble that might pop.
*Only this much, rest What is NFT is important and is given below*

All About NFT

Anything that can be converted into a digital form can be an NFT. If anyone
converts its digital asset to an NFT, he/she will get proof of ownership, powered by
Blockchain.
How to trade - There is a need for a cryptocurrency wallet and an NFT marketplace
where one can buy and sell NFTs.
NFT Marketplace - Some of the NFT marketplaces are OpenSea.io, Rarible,
Foundation.
Technology - NFTs are different from other digital forms in that they are backed by
Blockchain technology.
Ownership - NFTs can have only one owner at a time, as it can be everything from
drawings, photos, videos, GIFs, music, in-game items, selfies, and even a tweet can
be turned into an NFT, which can then be traded online using cryptocurrency.
Who created it - Terra Nulius was the first NFT(started in 2015) on Ethereum
Blockchain, although this project was merely an idea that only allowed to
customise a short message which was then recorded on the blockchain.
Is NFT same as Cryptocurrency - No, NFTs and cryptocurrencies being built on
Blockchain, both are different from each other. Cryptocurrency is a currency and is
fungible, meaning that it is interchangeable. For instance, if one holds one crypto-
token, say one Ethereum, the next Ethereum that the one holds will also be of the
same value.
Risk - 1. Fraud Risks: In the recent past, several incidents of NFT scams have been
reported including the emergence of fake marketplaces, unverified sellers often
impersonating real artists and selling copies of their artworks for half price.
2. Environmental Risks: In order to validate transactions, crypto mining is done,
which requires high powered computers that run at a very high capacity, affecting
the environment ultimately.

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2.3. Russia Banned from SWIFT

Issue: - Recently, in a move to counter Russia’s war over Ukraine, the US and the
European Commission issued a joint statement to exclude some Russian banks
from the Society for Worldwide Interbank Financial Telecommunication (SWIFT)
messaging system.
*Only this much, rest What is SWIFT and its important and is given below*

What is SWIFT?

It was established in 1973 and is based in Belgium.

It is overseen by the central banks from eleven industrial countries: Canada,
France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United
Kingdom, and the United States, besides Belgium.
SWIFT provides the trusted messaging platform that enables financial institutions
to exchange information about global monetary transactions such as money
transfers.
While SWIFT does not actually move money, it operates as a middleman to verify
information of transactions by providing secure financial messaging services to
more than 11,000 banks in over 200 countries.
India’s financial system has access to the SWIFT.

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3. Reports/Index in NEWS

3.1 Liberalised Remittance Scheme (LRS)

Issue: - $14 bn remitted by Indians in Apr-Dec as Covid-19 restrictions

ease.
Report By: - RBI

Key Highlights
According to the latest data released by the RBI, outflows under the scheme were $13.8
billion in the first nine months of the current financial year as compared to 12.7 billion
for the entire FY21.
Remittances in the last three months of 2021 were $4.9 billion, mainly due to a surge
in travel and studies abroad-related remittances. Capital India, which provides foreign
exchange-related solutions via its arm Remitx, said opening up of visas by several
countries for leisure travel was one of the factors for the sharp increase in travel-related
remittances.
Total outward remittance in December was $1.78 billion as compared to 1.5 billion
each in November and October.
In the financial year 2019-20, outward remittances hit a record $18 billion, a year
before the Covid-19 pandemic broke out. Capital India said the actual spike in
remittances is expected in 2023-24.

What is Liberalised Remittance Scheme (LRS)?

The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The
LRS limit has been revised in stages consistent with prevailing macro and micro
economic conditions.
Under the LRS, all resident individuals, including minors, are allowed to freely remit
up to $250,000 in every financial year for any permissible current or capital account
transactions, or a combination of both.
The LRS for individuals, while it is open for both current and capital account
transactions, is largely in current account transactions like travel, studies, etc.

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3.2 Annual Frontiers Report 2022

Issue: - Recently, the United Nations Environment Programme (UNEP) has

released its Annual Frontiers Report.
Name of the Report: - “Noise, Blazes and Mismatches: Emerging Issues of
Environmental Concern.”
What is the report all about: - The Frontiers report identifies and offers
solutions to three environmental issues: urban noise pollution, wildfires and
phenological shifts that merit attention and action from governments and the
public at large to address the triple planetary crisis of climate change,
pollution and biodiversity loss.

Key Highlights
The Urban Noise Pollution which is unwanted, prolonged, and high-level sounds from
road traffic, railways, or leisure activities, impair human health and well-being.
The trends towards wildfires which are more dangerous fire-weather conditions are
likely to increase due to rising concentrations of atmospheric greenhouse gasses and
the attendant escalation of wildfire risk factors.
Wildfires have also become more common in the Savannah ecosystem, which has
affected over one-fourth of species in the Savannah ecosystem.
Wildfires are also responsible for air pollution.
Recommendation: -

• Appreciating and adopting indigenous fire management techniques.

• A preventive approach, rather than reactive approach by engaging vulnerable
groups, will help adapt to the wildfires.
• It is important to enhance fire-fighting capabilities and strengthen community
resilience-building programmes
• It is important to focus on long-range weather forecasting.
• Focus on remote-sensing capabilities such as satellites, ground-based radar,
lightning detection as well as data handling.

UNEP
The UNEP is a leading global environmental authority established on 5th June
1972. It works to identify and draw attention to emerging issues of
environmental concern.
Major Reports: Emission Gap Report, Adaptation Gap Report, Global
Environment Outlook, Frontiers, Invest into Healthy Planet. Headquarters:
Nairobi, Kenya

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3.3 USCC International Intellectual Property Index

Issue: - According to an annual report which has been published by the

prominent US Chamber of Commerce’s Global Innovation Policy Center, India’s
total IP score has risen from 38.4 percent to 38.6 percent.
Rank: - India is now ranked 43 out of 55 countries on the International
Intellectual Property Index.

Top 5 Country

1. United
2. United
States of 3. Germany 4. Sweden 5. France
Kingdom
America

Key Highlights
The overall score of India has increased from 38.40 percent (19.20 out of 50) in the
ninth edition of this report to 38.64 percent (19.32 out of 50) in the latest edition.
The report of this year analysed data of the last 10 years and revealed that the global
IP environment has consistently improved over time, even in the last two years of
turmoil due to the pandemic. The report also states that emerging economies are
strengthening their IP regimes.

What is Intellectual Property

Intellectual property (IP) refers to creations of the mind, such as inventions; literary
and artistic works; designs; and symbols, names and images used in commerce.
IP is protected in law by, for example, patents, copyright and trademarks, which
enable people to earn recognition or financial benefit from what they invent or create.
By striking the right balance between the interests of innovators and the wider public
interest, the IP system aims to foster an environment in which creativity and
innovation can flourish.

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4. Other Important NEWS

4.1. ‘REWARD’ Project

Issue: - The World Bank, the Government of India, the State Governments of
Karnataka, and Odisha, have signed a USD 115 million deal.
Why: - For the Rejuvenating Watersheds for Agricultural Resilience through
Innovative Development Programme to help national and state governments
adopt improved watershed management practices to help farmers become
more resilient to climate change, improve incomes, and promote higher
productivity.

Key Highlights
Rejuvenating Watersheds for Agricultural Resilience through Innovative Development
(REWARD) is a project which is being implemented in three-four Indian states. It is
planned as a six-year project and is one of the largest water management programs
around the world.
This project Is a joint initiative of the Department of Land Resources, Ministry of Rural
Development in association with the World Bank.
World Bank’s lending arm, the International Bank for Reconstruction and Development
(IBRD) will provide financial support of USD 115 million to this project. The loan has a
15 years maturity period with 4.5 years grace period.
Karnataka will receive USD 60 million, Odisha will receive USD 49 million while the
remaining USD 6 million will be utilized by the Indian government’s Department of
Land Resources.

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5. One Liner

Headline Important Points based on NEWS

Second ➔ The name of ‘Sikkim State Co-operative Bank Ltd.’
Schedule of the has been included in the Second Schedule to the
RBI Reserve Bank of India Act, 1934 vide notification
DOR.RUR.No.S1627/19.51.025/2021-22 dated
October 12, 2021 published in the Extraordinary
Gazette of India (Part III - Section 4) dated January
18, 2022.
Bilateral Swap ➔ Japan and India renewed the Bilateral Swap
Arrangement (BSA) effective today (Feb. 28, 2022).
➔ The Bank of Japan, acting as agent for the
Minister of Finance of Japan, and the Reserve
Bank of India signed the Amendment and
Restatement Agreement of the BSA. The BSA is a
two-way arrangement where both authorities can
swap their local currencies in exchange for the US
Dollar. The size of the BSA remains unchanged,
that is, up to 75 billion US Dollars.
➔ Japan and India believe that the BSA, which aims
to strengthen and complement other financial
safety nets, will further deepen financial
cooperation between the two countries and
contribute to regional and global financial stability.
Sovereign Gold ➔ The Sovereign Gold Bond Scheme 2021-22 - Series
Bond Issue X will be open for subscription for the period from
Price February 28 – March 04, 2022. The nominal value
of the bond based on the simple average closing
price [published by the India Bullion and Jewellers
Association Ltd (IBJA)] for gold of 999 purity of the
last three business days of the week preceding the
subscription period, i.e. February 23, February 24,
and February 25, 2022 works out to ₹5,109/-
(Rupees Five thousand one hundred and nine only)
per gram of gold.
Unauthorize ➔ The Reserve Bank of India (RBI) has cautioned the
app by sRide : general public that sRide, a company based out
RBI Warns Gurugram, Haryana, is operating a semi-closed
pre-paid instrument (wallet), without any
authorisation from the central bank. Hence, they
should exercise extreme caution while using any
such application.
➔ There are 68 authorised payment system operators
under the Payments and Settlements Act, 2007
and sRide is not one among them.

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PLI investment ➔ Ola Electric has committed total investments of Rs
by Ola Electric 3,500 crore in five years, much higher than the
minimum investment required for such firms (Rs
2,000 crore) under the production-linked incentive
(PLI) scheme for the automobile industry. It is one
of six non-automotive investors that made the cut
for the scheme.
GDP FOrcast ➔ Forecasting a lower-than-previously projected 10
by Barclays per cent GDP growth for the fiscal year 2022 due
to the third wave of the pandemic, foreign
brokerage Barclays said the Indian economy is
likely to have expanded by 6.6 per cent in the
December quarter.
➔ The economy had a relatively stable Q3 with
several sectors returning to pre-pandemic level of
activity, with services playing a bigger role in
activity, the report said, adding that with the mild
Omicron wave in January, there is clear downside
risks to the earlier growth forecast of 10 per cent in
FY22.
➔ The National Statistical Office (NSO) will declare
the GDP estimates for Q3 FY 2021-22 on February
28.
SBI Economic ➔ According to a report by the economic wing of
Wing Report State Bank of India (SBI), rising crude oil prices
can burn a hole as big as Rs 1 trillion in
government’s coffers in fiscal 2022-23 (FY23).
Deloitte Study ➔ India will have 1 billion smartphone users by 2026
with rural areas driving the sale of internet-
enabled phones, as per a Deloitte study.
➔ India had 1.2 billion mobile subscribers in 2021, of
which about 750 million are smartphone users. It
is poised to be the second-largest smartphone
manufacturer in the next five years.
➔ The smartphone market is expected to reach 1
billion smartphone users by 2026," according to
Deloitte's 2022 Global TMT (Technology, Media and
Entertainment, Telecom) predictions.
➔ This growth is likely to be propelled by the rural
sector at a compound annual growth rate (CAGR)
of 6 per cent, compared with the urban sector
growing at a CAGR of 2.5 per cent from 2021 to
2026.
India ➔ Indians are buying more term plans now as term
Protection insurance ownership has gone up to 43 per cent
Quotient from 39 per cent last year, revealed the India
Survey 4 Protection Quotient (IPQ) survey 4.
➔ This is despite life insurance ownership remaining
unchanged at 78, signifying the fact that

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consumers are now diversifying their insurance
holdings and building a holistic portfolio. The term
insurance ownership has gone up from 36 per cent
to 43 per cent in two years’ time.
➔ Overall, the IPQ survey revealed that the
‘Protection Quotient’ of urban India has moved up
3 points to 50, owing to increasing immunization
coverage and a growing positive outlook beyond
Covid-19. Also, urban India’s knowledge index
increased to 69, and the security index increased
to 56.
Retrospective ➔ The Indian government has paid Cairn Energy Plc
Tax Dispute Rs 7,900 crore to refund taxes it had collected to
solved by GoI enforce a retrospective tax demand, ending a
seven-year-old dispute that had tarred the
country's image as an investment destination.
➔ The company, which is now known as Capricorn
Energy PLC, in a statement said it has received
"net proceeds of USD 1.06 billion", of which nearly
70 per cent will be returned to the shareholders.
➔ The tax department had used a 2012 legislation,
which gave it powers to go back 50 years and slap
capital gains levies wherever ownership had
changed hands overseas but business assets were
in India, to seek Rs 10,247 crore in taxes from
Cairn.
Operation ➔ Under “Operation Nanhe Farishte”, the Railway
Nanhe Farishte Protection Force (RPF) have rescued more than
1,000 kids from Railway stations across India, in
the month of January, 2022.
KISAN App ➔ The Indian Institute of Technology Roorkee (IIT
Roorkee) has launched a mobile app named
‘KISAN’ for the farmers. Through this app, agro-
meteorological advisory services will be provided to
the farmers.
➔ A farmer’s awareness program was organized by
IIT Roorkee under the Gramin Krishi Mausam
Sewa (GKMS) project. Farmers from Dehradun,
Haridwar, and Pauri Garhwal districts took part in
this program.
GDP Forecast ➔ The GDP growth prediction for India has been
by Moody raised by Moody’s Investors Service. The prediction
for the current financial year has been raised to
9.5 percent from 7 percent.
➔ The GDP forecast has been increased citing an
economic recovery that has been stronger than
expected starting from the national lockdown of
2020 to the COVID-19 second wave in mid-2021.

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➔ The FY 23 GDP forecast has been retained at 5.5
percent.
➔ According to Moody’s, the retail activity, collection
of sales taxes, and Purchasing Managers Indices
(PMI) all point to further growth. Supply
disruptions and high oil prices will, however,
continue to drag down the GDP.
➔ Moody’s has also said that the forecast of 9.5
percent for 2022 has been based on restricted
consecutive growth rates.
Solar ➔ A 1.7-megawatt solar photovoltaic plant has been
Photovoltaic commissioned by Bharat Heavy Electricals Ltd.
Plant by Indian (BHEL) at Bina, Madhya Pradesh for the Indian
Railway Railways.
Union Bank ➔ On February 25, 2022, the Union Bank of India
MSME RuPay (UBI) launched “Union MSME RuPay Credit Card”
Credit Card in association with National Payments Corporation
of India (NPCI).

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