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Banking, Economy & Business Related -MARCH 2018

1.       Moody's Investors Service estimated that India will grow 7.6% in the calendar year 2018 & 7.5% in 2019.

2.       Indian economy grew at a five-quarter high of 7.2% in the October-December period reflecting overall recovery due to good show by agriculture, manufacturing, construction & certain services. It is expected to grow at 6.6% in the current fiscal ending March 31, as per Central Statistics Office (CSO).

3.       IndusInd Bank announced its partnership with Ripple (the enterprise blockchain solution for Global Payments) to facilitate payments into & out of India. With this, RippleNet can now provide instant access in emerging markets such as India, Brazil & China.

4.       PNB & ICICI Bank hiked the MCLR rates for loan borrowers. ICICI Bank raised the one-year MCLR from 8.2% to 8.3%. PNB increased one-year MCLR to 8.3%.

5.       SBI raised its lending rates by 20 basis points to 8.15%, with immediate effect. 

6.       RBI decided to do away with the per borrower loan limits to Micro/Small & Medium Enterprises (Services) for classification under priority sector lending. So far, loans to Micro/Small & Medium Enterprises (Services) up to Rs. 5 crore & Rs10 crore, respectively, were classified as PSL. Now all bank loans to MSMEs engaged in providing or rendering services as defined in terms of investment in equipment under the MSMED Act, 2006, will qualify under priority sector without any credit cap.

7.       A Steering Committee has been constituted by the Ministry of Finance under the Chairmanship of Secretary, Shri Subhash Chandra Garg, to consider various issues relating to the development of Fintech space in India.

8.       RBI imposed a penalty of Rs. 3 crore on private sector Axis Bank for violation of non-performing asset (NPA classification norms, & Rs 2 crore on state-run Indian Overseas Bank (IOB) for not complying with the Know Your Customer (KYC) regulations.

9.       RBI will conduct additional variable rate repo operations for longer tenors up to 31 days every Tuesday in the month of March 2018 for Rs 25,000 crore each to provide additional liquidity support to banks. What this means is that the central bank is ready to provide liquidity aggregating Rs 1 lakh crore to the banking system in the current month.

10.    Iraq become India’s biggest crude oil supplier by overtaking Saudi Arabia with a wide margin in this current financial year. Iraq supplied 38.9 million tonnes (MT) of oil.

11.    SIDBI signed an MoU with CSC e-governance Services (CSCeGS) to take Udyami Mitra portal to the unserved & the underserved MSMEs. Udyamimitra.in is a portal to improve the accessibility of credit for the MSMEs. CSCeGS is a special purpose vehicle (SPV) set up by the ministry of electronics & IT (MeitY) which acts as connect point for various digitally aligned services to villages in the country.

12.    RBI has imposed a monetary penalty of Rs 40 lakh on State Bank of India for non-compliance of its directions on detection & impounding of counterfeit notes.

13.    ICICI Bank launched instant overdraft ‘InstaOD’ facility for MSME customers in a completely online & paperless manner. Customers can get overdraft facility up to Rs 15 lakh for a year anytime, anywhere.

14.    SBI slashed charges for non-maintenance of Average Monthly Balance (AMB) in savings accounts by nearly 75%. It will be effective from April 01, 2018 & will benefit over 25 crore customers. The charges for nonmaintenance of AMB for customers in Metro & Urban centers reduced from a maximum of Rs 50 per month to Rs 15 per month. Similarly, for Semi-Urban & Rural centers, the charges reduced from Rs 40 every month to Rs 12 & Rs 10. GST charges will be applicable over & above the rates specified above.

15.    World Bank projected India's GDP growth at 7.3% for 2018-19 & accelerates further to 7.5% in 2019-20. It expects the economy to clock a growth rate of 6.7% in the current fiscal ending March 31.

16.    India’s exports grew by 4.5% in February-2018 to 25.8 billion dollars. It was 24.7 billion dollar during the same period in February-2017. 

17.    As per the World Bank Report, GST is one of the most complex with the second highest tax rate in the world among a sample of 115 countries which have a similar indirect tax system.

18.    NITI Aayog released comprehensive roadmaps & detailed timelines for its initiative ‘Sustainable Action for Transforming Human Capital in Education (SATHE)’ project. These roadmaps, which operate between 2018 to 2020, lay out detailed interventions which will be taken by the three participating States- Jharkhand, Madhya Pradesh & Odisha – aiming to become ‘Role Model States’ in school education.

19.    SBI & India Mortgage Guarantee Corporation (IMGC) signed a pact to offer mortgage guarantee scheme for prospective non-salaried & self-employed home loan customers.
20.    Axis Bank opened a representative office in Sharjah, to better serve its customers in the emirate & to expand its retail offerings to customers.  aggregator Ola, giving commuters an option book taxi on its app.

21.    General Insurance Corporation is going to start operations at the Lloyd’s London office in April  2018 thereby increasing its share of international business. This will help GIC Re increase its share of international reinsurance business.

22.    Online Food ordering & delivery platform Swiggy partnered with ICICI Bank to roll out two digital solutions to facilitate the transfer of funds for its delivery partners.

23.    As per the officials of Allahabad Bank, Ministry of Corporate Affairs allowed the amalgamation of its wholly own subsidiary - All Bank Finance Ltd (ABFL)with the lender.

24.    Equitas Small Finance Bank launched a new ‘Yellow Army Savings Account’ to increase its customer base through its association with the Chennai Super Kings (CSK). The yellow army savings account will offer an interest rate of 6% per annum for balance below Rs10 lakh & 6.5% per annum for balance above Rs10 lakh. The average quarterly balance requirement will be Rs10,000 per account.

25.    SWIFT announces the extension of its GPI Tracker to cover all payment instructions sent across the network, enabling GPI banks to track all their SWIFT payment instructions at all times, & giving them full visibility over all their payments activity.

26.    Exim Bank announced that it will provide a USD 500 million credit facility to Economic Community of West

27.    African States (ECOWAS) to fund various development projects in western-south Africa. The LoC of USD 500 million is an umbrella limit for financing developmental projects in 15-member countries.
28.    EPFO launched the pensioner’s portal through which all EPFO pensioners may get the details of pensionrelated information. The pensioner’s portal is a launched service where details like pension payment order number, payment order details, passbook information & other related information are available.

29.    RBI has imposed a monetary penalty of Rs. 58.9 crore on ICICI Bank Limited for non-compliance with the directions issued by the RBI on direct sale of securities from its Held To Maturity (HTM) portfolio & specified disclosure in this regard.

30.    SEBI has allowed physical settlement of both stock options & stock futures. At present only cash settlement of derivatives is allowed.

31.    Rivigo, a homegrown logistics start-up that owns as well as acts as an aggregator of trucks, is tying up with YES Bank, IDFC, & 10 other financial institutions to make cheaper funds available to truck owners & operators on its platform. The funds will be available at an interest rate of 1-2 percent per month, lower than the usual industry standard of 2-3 percent.

32.    Tech giant Microsoft inked its first renewable energy deal in India for powering its new facility in Bengaluru. It will see Microsoft purchase 3 megawatts of solar-powered electricity from Atria Power.

33.    International Solar Alliance (ISA) & the African Development Bank (AfDb), ADB, AIIB, the Green climate fund (GCF), & the New Development Bank (NDB) signed Joint financial partnership Declarations in New Delhi. International Energy Agency (IEA) also signed a Joint partnership Declaration with the ISA. The objective is to deepen their cooperation in support of Renewable Energy.

34.    Paytm announced that its wholly-owned subsidiary, Paytm Money, received approval of SEBI to become a registered investment advisor.

35.    The government made providing passport details mandatory for taking loans of 50 crore rupees & above to ensure a SWIFT action in case of fraud & prevent fraudsters from fleeing the country. As per the Financial Services Secretary, all existing loans of over 50 crore rupees, banks have been asked to collect passport details of borrowers within 45 days.

36.    For intra-State movement, the e-way bill will be rolled out in a phased manner beginning April 15 & will cover all the States by June 1. Businesses will continue to file summary sales return GSTR-3B until June as the GST (Goods & Services Tax) Council has extended the present system of return-filing by three months. Electronic way or e-way bill for movement of goods between States would be implemented from April 1.

37.    Bharat Heavy Electricals Limited (BHEL) has secured significant orders worth Rs. 736 crores, after competitive bidding, for supplying Steam Generators for the Nuclear Power Corporation of India Limited (NPCIL).  The generators will be manufactured at the Tiruchirappalli plant of BHEL & will be installed at the Pressurized Heavy Water Reactor (PHWR), Gorakhpur, Haryana.

38.    Amazon.com Inc launched its first-ever debit card in Mexico, part of a push to encourage shoppers without bank accounts to buy online.

39.    SEBI raised the exposure limit under exchange-traded currency derivatives trading for residents & FPIs to USD 100 million across all currency pairs involving the Indian rupee.

40.    BHEL has commissioned 1st unit of 110 MW of the Kishanganga hydroelectric project (HEP) of NHPC in Jammu & Kashmir.
41.    Indian Oil Corporation (IOC) has launched homedelivery of diesel on a pilot basis in Pune & plans to expand doorstep delivery of the fuel to other parts of the country in near future. This is the first company to have started doorstep delivery after receiving clearance from the Petroleum & Explosives Safety Organisation (PESO).
42.    BHEL entered into a technology collaboration agreement (TCA) with HLB Power, Republic of Korea.


43.    Mukesh Ambani-helmed Reliance Industries Ltd announced an integration with leading music app Saavn for its digital music service JioMusic.

44.    HDFC Bank signed agreement with the Government e-Marketplace (GeM) under which the bank will facilitate a host of services to the public procurement portal for Central & state government organisations.

45.    Ministry of Finance approved a proposal to provide government guarantee of Rs. 5,000 crores in the current financial year for Indian Railway Finance Corporation (IRFC) bonds to be subscribed by Life Insurance Corporation (LIC). The guarantee fee for the amount has also been waived by the Ministry. 

46.    Google acquired US-based Tenor, a GIF platform for Android, iOS, & desktop Govt. allowed export of two million tonnes of sugar until the end of the 2017-18 marketing year, in order to clear surplus stocks & improve cash flow to millers for making payment to sugarcane farmers.

47.    Several Budget proposals, including the reintroduction of the tax on long-term capital gains (LTCG) exceeding Rs 1 lakh from the sale of shares, will kick in from 01st April 2018, the beginning of the 2018-19 financial year. Besides, other tax proposals like the reduced corporate tax of 25 percent on businesses on a turnover of up to Rs 250 crore & a standard deduction of Rs 40,000 in lieu of transport allowance & medical reimbursement, will come into effect from 01st April 2018.

48.    Govt. allowed export of two million tonnes of sugar until the end of the 2017-18 marketing year, in order to clear surplus stocks & improve cash flow to millers for making payment to sugarcane farmers.

49.    Several Budget proposals, including the reintroduction of the tax on long-term capital gains (LTCG) exceeding Rs 1 lakh from the sale of shares, will kick in from 01st April 2018, the beginning of the 2018-19 financial year. Besides, other tax proposals like the reduced corporate tax of 25 percent on businesses on a turnover of up to Rs 250 crore & a standard deduction of Rs 40,000 in lieu of transport allowance & medical reimbursement, will come into effect from 01st April 2018.

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