Financial Awareness for SBI Clerk Exam Set-2

Financial Awareness

1. RBL becomes first private sector bank to open dedicated branch for startups.

The RBL Bank (formerly Ratnakar Bank) became the first private sector bank in India to open dedicated branch for startups.The dedicated branch was inaugurated at Koramangala, Bengaluru by Nandan Nilekani, noted entrepreneur and former chairman of UIDAI.The first exclusive bank branch for start-ups will offer a bouquet of banking products to service the end-to-end needs of the emerging entrepreneurial eco-system.The branch will assist entrepreneurs in setting up new enterprises or companies.It will offer them host of banking products including, foreign exchange services, remittances and cash management. The Branch will also provide a range of value added services including legal and tax formalities, registration etc. through its affiliates and partners.

2. India overtakes China as top FDI destination in 2015: FDI Intelligence Report

India has replaced China as top destination for foreign direct investment by attracting $63 billion worth FDI projects in 2015, says a report.According to FDI Intelligence, a division of The Financial Times Ltd. – “India was the highest ranked country by capital investment in 2015, with $63 billion-worth of FDI projects.There was an 8 per cent increase in project numbers to 697. The boost in FDI has resulted in a whopping increase in job creation from nearly 1 lakh in 2013 to over 2 lakh jobs in 2015.These high-value projects were specifically announced across the coal, oil and natural gas and renewable energy sectors India has replaced China as the top destination for FDI by capital investment following of high-value project announcements.

Note:Greenfield FDI inflow in India and China was followed by Indonesia ($38.5 billion), Mexico ($24.3 billion) and Brazil($17.3 billion).Top FDI State in India – Gujarat was on top which had attracted $12.4 billion.Maharashtra was second attracting $8.3 billion respectively in 2015.

3. PNB becomes top mobiliser under Gold Monetisation Scheme.

 State-owned Punjab National Bank today said it has become the top mobiliser under Gold Monetisation Scheme, which was launched by Prime Minister Narendra Modi in November 2015.The bank has mobilised substantial gold deposit under Short Gold Bank Term Deposit (STGBD) for three years from one of the leading trusts of India – Tirumula Tirupati Devasthanam, Tirpuati (TTD), PNB said in a statement.The bank has mobilised 1,311 kg of gold since the launch of the scheme in November. It would continue to work actively for mobilization of gold deposit under GMS, it added.

Note:Under the GMS, banks are authorised to collect gold for up to 15 years to auction them off or lend to jewellers from time to time.Depositors will earn up to 2.50 per cent interest per annum, a rate lower than bank deposits.

GMS operates under three categories,

Short-term deposit (for one to three years with a rollout in multiples of one year),Medium term deposit (for five to seven years) andLong term deposit (for 12 to 15 years).

 4. Govt. lowers EPF rate to 8.7% from 8.8% for FY16

 The finance ministry has announced an interest rate of 8.7% for the subscribers of employees’ provident fund (EPF) for 2015-16, 10 percentage points lower than the rate prescribed by the EPF Organisation’s Central Board of Trustees (CBT).The CBT, at its meeting held in February 2016, had proposed an interim rate of interest at 8.8% to be credited to the accounts of EPF subscribers for 2015-16. The ministry of finance has, however, ratified an interest rate to 8.7%.This is probably the first time that the finance ministry has not given concurrence to the rate of interest on EPF as decided by CBT, which is headed by the labour minister.

 5. Mahindra & Mahindra becomes first Indian company to join EP100 campaign

Automobile giant Mahindra & Mahindra has become the first Indian company to join a global energy campaign led by an international non-profit group that will work with the world’s most influential businesses in setting commitments to double their energy productivity.By signing up to ‘EP100’ campaign led by ‘The Climate Group‘, the world’s largest manufacturer of tractors has committed to doubling their energy productivity by 2030, a core requirement for any business signing on to the campaign.

6. Goldman Sachs launches online-only bank for the masses

Goldman Sachs has officially launched an online bank aimed at households and small businesses as it expands from its Wall Street base and aims for the masses.The online-only GS Bank permits consumers to open an account for as little as USD 1, a big shift for a financial powerhouse that has built itself around serving billionaires and giant companies undertaking mega-mergers.The move comes on the heels of Goldman’s acquisition of GE Capital’s online deposit platform, after which it assumed about USD 16 billion of deposits from some 145,000 customers.Goldman is offering savers a relatively robust interest rate of 1.05 per cent, much higher than the 0.01 per cent now available at JPMorgan Chase and other retail banks.Goldman Sachs is also offering a five-year certificate of deposit at 2.0 per cent, also much higher than the going rates at other large banks.

7. Govt. hikes minimum wage for contract workers to Rs 10,000

The minimum wage for contract workers has been increased to Rs 10,000 per month, Union minister Bandaru Dattatreya said on Monday.The minister of state for labour and employment informed Lok Sabha that the wage hike has been implemented based on a Supreme Court verdict.”Recently, we have increased minimum wage to Rs 10,000 at the national level taking into consideration the Consumer Price Index and Dearness Allowance. This was based on the verdict of the Supreme Court.

8. India, France launch $1 trillion potential solar programme for developing countries

India and France have launched a programme with $1 trillion potential to help developing countries harness fully their solar resources for a clean energy future to meet the “biggest challenge humanity has ever faced”.Power Minister Piyush Goyal and French Environment Minister Segolene Royal announced the solar finance programme that aims to lower the cost of finance and facilitate the flow of more than $1 trillion investment to members of the International Solar Alliance (ISA).A second programme they launched at the ISA meeting held during the signing ceremonies for the Paris Climate Change Agreement here aims to make available solar technology for farmers.The meeting was attended by representatives of over 25 countries including the US, Brazil, Bangladesh and Nigeria.

Note:The ISA, which was launched at the Paris Climate Change Summit last yearby Prime Minister Narendra Modi and French President Francois Hollande, seeks to empower solar-rich countries located between the tropic of Cancer and the tropic of Capricorn, many of which have at least 300 days of sunshine, and share common challenges and opportunities.During Hollande’s visit to India in January, the two leaders laid the foundation stone for the ISA headquarters in Gurgaon.

9. India ratifies WTO agreement to boost global economic integration

India has ratified the World Trade Organisation’s (WTO) Trade Facilitation Agreement (TFA), which could further “its integration into the global economy” by boosting trade through efficient movement of goods.India’s Permanent Representative to the WTO, Anjali Prasad, formally presented the instrument of acceptance ratifying the agreement to WTO Director General Roberto Azevedo on Friday in Geneva.

Note:India is the 76th WTO member to accept the TFA, which will enter into force once two-thirds of WTO 162 members formally accepted the Agreement.The TFA was agreed upon at the WTO Ministerial Conference in Bali in 2013.The agreement aims at – expediting the movement and clearance of goods, including goods in transit and establishing effective cooperation between customs and other authorities on trade facilitation and customs compliance issues.The implementation of the TFA has the potential to increase global merchandise exports by up to $1 trillion per year, according to the WTO’s 2015 flagship World Trade Report.

10. India’s first small finance bank starts operation

 Capital Small Finance Bank, India’s first small finance bank starts operation on 24th April 2016. It opened 10 new branches in Punjab.It is among the 10 entities that were given the in-principle approval by RBI to set up small finance banks.

Key points –

Sarvjit Singh Samra is a Managing Director of Capital Small Finance Bank.The Jalandhar-headquartered bank had been operating as Capital Local Area Bank since January 2000It had been operating with 47 branches in five districts of Punjab.In the current financial year, the bank would consolidate its business in Punjab by adding 29 branchesOut of this, 10 were opened on 24thApril 2016

Note:RBI on September 15, 2015 grants in-principle approval to 10 Small Banks’ applicants.8 out of 10 companies are Micro Finance Institutions (MFIs) with established track records and significant presence among small borrowers. The selected Applicants are as follows:

(i) Au Financiers (India) Limited,

(ii) Capital Local Area Bank Limited,

(iii) Disha Microfin Private Limited,

(iv) Equitas Holdings P Limited,

(v) ESAF Microfinance and Investments Private Limited,

(vi) Janalakshmi Financial Services Private Limited,

(vii) RGVN (North East) Microfinance Limited,

(viii) Suryoday Micro Finance Private Limited,

(ix) Ujjivan Financial Services Private Limited and

(x) Utkarsh Micro Finance Private Limited.

Major Key points on Small BanksThe small bank shall be registered as a public limited company under theCompanies Act, 2013.The minimum paid-up capital requirement for small banks is Rs. 100 crore.The in-principle approval granted by RBI will be valid for a period of 18 months.As per the guidelines, the promoters’ initial minimum contribution will be at least 40 % of the minimum capital, to be locked in for a period of 5 years.Small banks will offer both deposits as well as loan products.They cannot set up subsidiaries to undertake non-banking financial services activities.The maximum loan size and investment limit exposure to single/group borrowers/issuers would be restricted to 15 percent of total capital funds.Loans and advances of up to Rs 25 lakhs, primarily to micro enterprises, should constitute at least 50 percent of the loan portfolio.

11. Punjab and Sind Bank has revised rate of interest on select domestic term deposits.

The Bank has revised the interest rate on domestic term deposits of less than Rs. 1 crores wit different maturity periods with effect from 28 April,2016.The interest rate on deposits has been reduced from to 7.80 % to 7.55 %. On deposits for more than two years and less than three years has been reduced from 7.5% to 7.30%.

12.Nandan Nilkeni Invests in Rail Yatri.

Co Founder of Infosys Mr. Nandan has invested an undisclosed amount in Train Travel app .

13.Transportation app Ola will expand its micro services to 48 newer cities.

14.Foreign Direct Investment into India has increased 37% after the launch of Make In India.

15.DBS Bank, which is Singapore’s largest Bank has unveiled Digibank , India’s first-only bank,targeting five Million Retail customers.The Bank has said that customer authentication will be done by Aadhaar card only.There will be no paper work involved in the process.

16.Japanese Commercial Vehicle maker ISUZU Motors opened its first manufacturing facility in India at Sricity,Andhra Pradesh.The Production capacity of the plant is 50000 units per year.This will be scaled to 1,20,000 units per year.

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