23rd Year of Publication

B anking
Registration RNI No.67802/98
Volume - XXIII No.01 : January 2020

Update
events

Contents of this Issue

BANKING POLICY : 2 & 3
• IFSC Banking Units
• NETC System
• Introduction of semi-closed PPIs
• Peer to peer lending norms
• NEFT - waiver of charges

BANKING FEATURES : 4-6, 16

• Senior Citizens' Saving Scheme 2019
• Sukanya Smaridhi Scheme 2019
• Public Provident Fund Scheme 2019
• Bimonthly Monetary Policy Review

DIARY OF EVENTS : Dec-2019: 7

• Policy, Economy
• Banking Developments

Those who win, are those, who think they can • Capital Markets & Insurance

General Awareness : 11-12

Corporate & Distribution Office
1008, Sector 45-B, Chandigarh Multi-Option questions:13-15
Phone 0172 2665 623
eMail - bankingupdate123 @ gmail.com Data Bank : 16

www.banking update
update.. com
bankingindiaupdate
We wish our readers, a
very happy and prosperous
New Year 2020
Executive Editor - S. Chand Singh Editor in Chief - Sh. N S Toor
2 ♦ Banking events updatE ♦ January 2020

B ANKING IFSC Banking Units - Activities

POLICY RBI issued directions related to IFSC Banking
Units (IBUs) on 01.04.15. These directions have been modified
any Additional Factor of Authentication (AFA)
and / or pre-transaction notification / alert.
NPCI shall facilitate requests received from
on 23.12.19 as under: banks / non-banks in this regard.
1. RBI will not prescribe any limit for raising short-term liabilities Reporting of Large Exposures to Central
from banks. However, the IBUs must maintain liquidity coverage Repository of Information on Large
ratio (LCR) as applicable to Indian banks on a stand-alone basis Credits (CRILC) – Urban Cooperative
and strictly follow the liquidity risk management guidelines issued Banks (UCBs)
by RBI to banks. Further, NSFR will also be applicable to IBUs
On 27.12.19, RBI decided that Primary
as and when it is applied to Indian banks.
(Urban) Co-operative Banks (UCBs) having
2. IBUs are not allowed to open savings accounts. They can open total assets of Rs.500 crore and above as on
foreign currency current accounts of units operating in IFSC 31st March of the previous financial year shall
and of non-resident institutional investors to facilitate their report credit information, including
investment transactions. They can also open foreign currency classification of an account as Special Mention
current accounts (including escrow accounts) of their corporate Account (SMA), on all borrowers having
borrowers subject to the provisions of FEMA 1999 and regulations aggregate exposures of Rs.5 crore and above
issued thereunder, wherever applicable. However, IBUs cannot with them, to Central Repository of
raise liabilities from retail customers including high net worth Information on Large Credits (CRILC)
individuals (HNIs). Also, no cheque facility will be available for maintained by the Reserve Bank. Aggregate
holders of current accounts in the IBUs. All transactions through exposure shall include all fund-based and non-
these accounts must be undertaken via bank transfers. fund based exposure, including investment
3. IBUs can accept fixed deposits in foreign currency of tenor exposure on the borrower.
less than one year from non-bank entities and can also repay To start with, UCBs will be required to submit
fixed deposits prematurely without any time restrictions. CRILC Report on quarterly basis with effect
4. IBUs will be required to scrupulously follow “Know Your from December 31, 2019.
Customer (KYC)”, Combating of Financing of Terrorism (CFT) Introduction of a new type of semi-closed
and other anti-money laundering instructions issued by RBI from Prepaid Payment Instrument (PPI) –
time to time, including the reporting thereof, as prescribed by the PPIs upto Rs.10,000/- with loading only
Reserve Bank /other agencies in India. IBUs are prohibited from from bank account
undertaking cash transactions.
To give impetus to small value digital payments
Enhancing facilitation of National Electronic Toll and for enhanced user experience, on 24.12.19,
Collection (NETC) system RBI decided to introduce a new type of semi-
India is progressing ahead with NETC gaining large scale closed PPI with the following features:
acceptance. Currently, the NETC system allows linking of 1. Such PPIs shall be issued by bank and non-
FASTags with bank accounts – savings, current and prepaid. bank PPI Issuers after obtaining minimum
In order to further broad base this system by allowing more details of the PPI holder.
payment choices for the customers, as well as for fostering 2. The minimum details shall necessarily
competition among the system participants, RBI allowed include a mobile number verified with One
(30.12.19) all authorised payment systems and instruments [non- Time Pin (OTP) and a self-declaration of name
bank PPIs, cards and Unified Payments Interface (UPI)] for linking and unique identity / identification number of
with the FASTags, which can be used for various types of any ‘mandatory document’ or ‘officially valid
payments (vehicle toll, parking fee, etc.). document’ (OVD) listed in KYC directions.
The Turn Around Time (TAT) for resolving failed transactions 3. These PPIs shall be reloadable in nature and
shall also be applicable to the transactions carried out in the NETC issued in card or electronic form. Loading /
system. Reloading shall be only from a bank account.
The transactions in the NETC system can be performed without 4. The amount loaded in such PPIs during any

(COMPILATION- SAPANDEEP TOOR & MANJOT TOOR, - on the basis of information available on RBI Website)
 Banking events updatE ♦ January 2020 ♦ 3

Video Lessons
month shall not exceed Rs.10,000 and the total amount loaded
during the financial year shall not exceed Rs.1,20,000.
5. The amount outstanding at any point of time in such PPIs CAIIB-JAIIB-Promotion Exam
shall not exceed Rs.10,000.
B-Sheet Analysis
6. These PPIs shall be used only for purchase of goods and
services and not for funds transfer. Certified Credit Professionals
7. PPI issuers shall provide an option to close the PPI at any Foreign Exchange Operations
time and also allow to transfer the funds ‘back to source’ • Use lap top / Smart Phone, as our class room
(payment source from where the PPI was loaded) at the • No travelling - no boarding/lodging charges
time of closure. • Learn as per your time and place convenience
8. The features of such PPIs shall be clearly communicated • Watch any video any no. of times during validity
to the PPI holder by SMS / e-mail / post or by any other www.banking update
update.. com
bankingindiaupdate
means at the time of issuance of the PPI / before the first
loading of funds.
9. The minimum detail PPIs existing as on the date of this
circular can be converted to the above type of PPI, if desired CORRESPONDENCE
by the PPI holder.
COURSE
Review of Master Directions - Non-Banking Financial
Company – Peer to Peer Lending Platform (Reserve
Bank) Directions, 2017
PROMOTION EXAM
Based on latest trends of IBPS exam. A large no. of bankers
RBI had issued the directions on 04.10.17. On a review, RBI already succeeded by using the course material. If unable to
decided on 23.12.19 that: attend class room program, this is the best option.
Course Kit : The course kit include:
(i) The aggregate exposure of a lender to all borrowers at (a) subject-wise basic study material,
any point of time, across all P2P platforms, shall be subject (b) assignment to improve retention
to a cap of Rs.50,00,000 provided that such investments of (c) objective type practice exercise
the lenders on P2P platforms are consistent with their net- (d) recalled questions
worth. (e) mock test papers.
Fee : May differ from bank to bank. May be checked before
The lender investing more than Rs.10,00,000 across P2P remittance). Fee to be paid in advance.
platforms shall produce a certificate to P2P platforms from How to enrol : Call us at the numbers given below.
a practicing Chartered Accountant certifying minimum net-

CAIIB/JAIIB
worth of Rs.50,00,000. Further, all the lenders shall submit
declaration to P2P platforms that they have understood all
the risks associated with lending transactions and that P2P Course is based on exam pattern of IIB&F. A large no. of
platform does not assure return of principal/payment of candidate have succeeded in all 3 papers in first attempt with
interest. our study material.
Course Kit : The course kit include:
(ii) Escrow accounts to be operated by bank promoted trustee
(a) subject-wise basic study material,
for transfer of funds need not be mandatorily maintained (c) objective type practice exercise
with the bank which has promoted the trustee. (d) mock test papers.
Furthering Digital Payments – Waiver of Charges – Fee : Fee differs for different papers. Fee payable in
National Electronic Funds Transfer (NEFT) System advance, for which details may be obtained by calling
01722665623 .
In order to give further impetus to digital retail payments, on How to enrol : To enrol, advise name, address for
16.12.19, RBI decided that member banks shall not levy any correspondence, eMail id, mobile phone, bank name, subjects
charges from their savings bank account holders for funds for enrolment.
transfers done through NEFT system which are initiated
online (viz. internet banking and/or mobile apps of the banks).
DS Institute of Banking
Office:SCO No.32, Sector 33-D, Chandigarh 160 020
• Phone: 0172-2665623, 09988221167
4 ♦ Banking events updatE ♦ January 2020 BANKING FEATURES
Senior Citizens' Saving Scheme 2019 from the date of extension without any deduction.
The Ministry of Finance, Govt. of India, notified Senior Multiple withdrawals shall not be permitted.
Citizens’ Saving Scheme, 2019 on 12.12.19. Closure of account : The deposit shall be paid on or
Opening of account : (1) An individual may open, one after 5 years (8 years where account was extended).
or more accounts, by making an application in Form-1. (2) In case of death before maturity or extended maturity,
Age : 60 years on the date of opening of the account or balance shall be paid (Application in Form-3) with interest
55 years or more but less than 60 years, for those who till the date of death, to nominee or the legal heirs.
retired on superannuation or otherwise. Account is to be Interest shall earn interest at Post Office Savings Account
opened by such individual within one month of the date rate from date of death till date of final closure.
of receipt of the retirement benefits. Retired personnel In case of a joint account or where the spouse is the
of Defence Services (excluding Civilian Defence sole nominee, spouse may continue the account, if the
employees) - 50 years. spouse meets eligibility conditions on the date of death.
(2) An individual may open an account in individual Where both the spouses have opened separate account
capacity, or jointly with spouse. In case of a joint or accounts and either dies during the currency of such
account, the age of the first account holder shall be account, accounts standing in the name of the deceased
considered to determine the eligibility. account holder shall not be continued and shall be closed.
The whole amount in a joint account shall be attributable Extension after maturity : The account holder may
to the first account holder only. extend the account for a further period of 3 years
Both spouses can open single account and joint accounts, (application in Form-4) within one year from the date of
with each other, with maximum deposit of upto Rs.15 maturity. The extension shall be deemed from the date
lakhs in each account, if both are individually eligible. of maturity irrespective of the date of application.
Deposit : Minimum deposit Rs.1000 or any sum in Extension shall be available only once.
multiples of Rs.1000. Max Rs.15 lac. There shall be Sukanya Samriddhi Account Scheme, 2019
only one deposit in the account. The Ministry of Finance, Govt. of India, notified Sukanya
Interest on deposit : 8.6% p.a. (quarterly review) Samriddhi Account Scheme, 2019 on 12.12.19.
Interest shall be payable from the date of deposit to 31st Opening of a/c : One account in name of a girl child of
March/30th June/30th September/31stDecember on first less than 10 years, can opened by one of the guardians.
working day of April/July/October/January. Account can be for a max of 2 girl children in one family.
(2) If interest payable every quarter is not claimed, such More than 2 accounts may be opened in a family if such
interest shall not earn additional interest. children are born in the first or in the second order of
(3) Any amount of interest in fraction of a rupee shall be birth or in both. This provision shall not apply to girl
rounded off to the nearest rupee. child of 2nd order of birth, if the first order of birth in
(4) If an account is extended after maturity, deposit shall the family results in two or more surviving girl children.
earn interest at the applicable rate on the date of maturity. Deposits : Min initial and annual deposit is Rs.250 and
(5) The interest for any period less than a quarter shall in multiples of Rs.50 thereafter. Max total amount is
be calculated as (Number of days in the period x Interest Rs.150000, in a financial year.
for the quarter) / Total number of days in the quarter. Deposits period : Till completion of 15 years from the
Premature closure : Account holder may withdraw the date of opening of the account.
deposit and close the account in Form-2. Defaut : An account under default may be regularised
(i) In case, the account is closed before one year, interest any time till completion of 15 years on payment of a
paid shall be recovered from the deposit and the balance penalty of Rs.50 for each year of default along with the
shall be paid to the account holder. minimum annual deposit in respect of the defaulted years.
(ii) If account is closed after one year but before 2 years, For a default account, if not regularised whole deposit,
an amount equal to 1.5% of the deposit shall be deducted. shall be eligible for interest at the rate applicable to the
(iii) If account is closed on or after 2 years, an amount Scheme till closure of the account.
equal to 1% of the deposit shall be deducted. Interest on deposit : 8.4% p.a. The interest calculation
Account holder extending the account may withdraw for the calendar month on the lowest balance between
deposit and close account at any time after one year close of 5th day and the end of the month. The interest

Summary edited by : Arundeep Toor - Source RBI website.

BANKING FEATURES Banking events updatE ♦ January 2020 ♦ 5
of 2nd year immediately preceding the year in which
shall be credited to the account at the end of each financial
loan is applied for. Loan can be only once in a year.
year. Amount shall be rounded off to the nearest rupee.
Repayment of loan: Max within 36 months.
Operation of account : By the guardian till the account
holder attains the age of 18 years. Operations shall be by After payment of the principal, interest shall be paid in
account holder after attaining age of 18 years. max 2 monthly instalments @ 1% p.a. of the principal.
Premature closure : Account shall be closed on If loan is not repaid fully, within 36 months, interest
production of death certificate and credit balance and shall be 6% p.a. w.e.f. first day of the month following
interest till date of death shall be paid to the guardian. the month in which the loan was obtained, to the last
Interest between the date of death and date of closure day of the month in which the loan is finally repaid.
shall be at rate applicable on Post Office Savings Account. Withdrawal : Any time after 5 years, account holder
A/c can be closed prematurily after 5 years, in extreme may, avail withdrawal, of max 50% of credit balance at
compassionate grounds such as medical support. end of 4th year immediately preceding year of withdrawal
or at the end of the preceding year, whichever is lower.
Withdrawal : If account holder attained age of 18 years
The withdrawal facility is available only once in a year.
or passed 10th standard (whichever earlier), withdrawal
of upto 50% of the amount at the end of financial year Closure of account or continuation of account
preceding the year of application for withdrawal, shall without deposits after maturity : Any time after 15
be allowed for education of the account holder. years, account holder may apply (Form-3) for closure.
One withdrawal per year may be made in one lump sum The account holder may retain the account after maturity
or in instalments, for a max of 5 years. without making any further deposits for any period and
the balance in the account will continue to earn interest
Closure : Account shall mature on completion of a
at the applicable rate.
period of 21 years from date of opening. The closure is
also permitted after 18 years of age, if account holder The account holder may make one withdrawal, in each
intends to marry (one month before date of intended year, of any amount within the balance.
marriage or after 3 months from the date of marriage). If the account is continued without deposits for more
than a year, the account holder shall not have the option
Public Provident Fund Scheme, 2019. again to continue the account with deposits.
The Ministry of Finance, Govt. of India, notified Public Extension after maturity : On expiry of 15 years,
Provident Fund Scheme, 2019 on 12.12.19. account may be continued for a further block of 5 years
Account : An individual may open an account in his for any no. of blocks, by deposting before expiry of one
name or on for each minor or a person of unsound mind year, from the maturity of the account.
as guardian. Joint accounts are not allowed. Extension is not available, if the account holder fails to
Amount : Min Rs.500 and max Rs.150000 / FY in multiple give his option to continue the account within one year
of Rs.50. Maximum limit shall be inclusive for individual from the date of maturity. Any deposit made in such
and in the account opened on behalf of the minor. account shall be treated as irregular and refunded by
The deposit may be made in the account in one lump the accounts office immediately without any interest.
sum or in instalments. Facility of partial withdrawal shall be available to the
Discontinuation : If account holder fails to deposit min account extended.
amount in following years, a/c shall be treated as Premature closure : It is allowed after 5 years, for (a)
discontinued. It may be revived before its maturity on treatment of life threatening disease; (b) higher education
payment of a fee of Rs.50 along with arrears of minimum in India or abroad; (c) on change in residency status .
deposit of Rs.500 for each year of default. The balance On premature closure, interest shall be 1% lower than
shall continue to earn interest at applicable rate. the rate at which interest has been credited.
The facility of loan and partial withdrawal shall not be Death : A/c shall be closed and balance shall earn interest
allowed in such an account. till end of the month preceeding the month in which the
Interest : 7.9% for a calendar month on lowest credit eligible balance is paid to the nominee or the legal heir.
balance between close of the 5th day and end of month. Attachment: Amount standing to the credit of any
Interest shall be credited to account at end of each year. account holder shall not be liable to attachment under
Loans: After 1 year to 5 years, account holder may, any order or decree of any court in respect of any debt
apply, for a loan up to 25% of credit balance at the end or liability incurred by the account holder.
6 ♦ Banking events updatE ♦ January 2020

Practical Problems based on Banking Ombudsman Decisions eLearning

Study Material
1) The complainant had alleged that she had withdrawn Rs. 400/- from ATM,
of another bank, but received SMS that an amount of Rs.10,000/- had been
withdrawn from the ATM machine.
Documents submitted by both banks showed that the disputed transaction
was successful. From CCTV footage it was observed that there were 2 MOCK TEST - CDs
machines adjacent to each other without any partition. Two suspicious looking Features of CDs
men were inside the ATM enclosures for a considerable time. After some • Explanation for each question/answer.
time, one went out of ATM room. One was constantly stationed inside and • Improve understanding and retention.
tampered with one ATM machine making it temporarily non-operational (by • Remove confusions. .
using chewing gum from his mouth). • Improve time management. Set your own
Whenever a customer visited the ATM to withdraw money and used this time during practice.
non-operational machine he was immediately directed by the fraudster inside • Test your preparation before Exam.
the ATM to use the other adjacent machine. Before this, the customer would • Practice on-line without use of internet.
have inserted his ATM card in the non-operational machine. The fraudster • Questions are shuffled when used again.
stationed inside then pretended to be counting money held in his hand and • Large no. of questions based on latest
watched the customer complete his transaction on the other machine. While guidelines and memory recalled questions.
the customer completed his transaction the second fraudster who was waiting
outside came in. He was seen doing some transaction on the non-operational
machine. Bank Promotion Exam - Rs.300
Complainant had visited the ATM machine enclosure during this time. The Bank Promotion Interview - Rs.300
person inside the enclosure tried the same trick with her. She used the second Banking Ready Recknor - Rs.300
machine, withdrew money and left. She had done only one successful CAIIB (New Syllabus)
transaction.
• Bank Financial Mgmt - Rs.300
On enquiring with the bank, it was ascertained that it was an offsite ATM,
• Advanced Bank Mgmt - Rs.300
where no security guard was posted. BO opined that if a security guard was
• Retail Banking - Rs.300
present such incidents could not have happened and directed the acquiring
bank to pay the complainant the disputed amount, giving the complainant the • Risk Management - Rs.300
benefit of doubt. CAIIB (Case Studies)
2) The complainant was issued two credit cards by the bank. However he • Advanced Bank Mgmt -Rs.300
informed the bank that he was not interested. As advised by the bank he • Bank Financial Mgmt -Rs.300
dropped the cards in bank’s drop box. However, he received a bill JAIIB - All three papers Rs.300 (each)
for Rs.52,017/- pertaining to one of the surrendered cards. The complainant Economics Mock Test - Rs.150
further claimed that he was informed by the bank that the disputed card was Book-Keeping Mock Test - Rs.150
stolen from the drop box and he was assured that the matter was closed.
However, when he checked his CIBIL status it was observed that bank had
reported Rs.52,017/- as due from him. On contacting, the bank informed Online Mock Tests
that it had sold off card-outstanding to the Asset Reconstruction Company . Promotion,CAIIB/JAIIB, log in
The bank in its response to BO stated that the card was initially issued to the nstoorBankingonline.com
customer during January 1989. After merger of the bank with another bank
in 2001, the said card was converted to the latter bank’s credit card and the
outstanding dues were transferred. A supplementary credit card was issued
to the customer during April 2001. The bank had further stated that the IBPS Bank PO / ClerK Exam
customer had dropped the cards in a drop box without defacing them and
also did not dispatch the same along with the cancellation letter to the bank’s Score High with Latest Study Kits
address, as required under card member rules and regulations. The bank
also indicated that the total outstanding dues on both the credit cards Anywhere Anytime Learning
were Rs.52,017.03 and Rs.385.70 respectively and the same were sold to
an ARC. The bank had requested the customer to contact the ARC. Based on E-Books CDs, Videos
the documents submitted by the complainant, the BO advised the bank to
take up the matter with the ARC. The bank confirmed that the ARC had Contact
arranged to reverse the outstanding in the customer’s card account and 09814 331 661
update the status of the card account in the records of the CIBIL. 01722665623
 Banking events updatE ♦ January 2020 ♦ 7
• FM ANNOUNCES NO CHARGES ON RuPay, UPI Financial
TRANSACTIONS: The Union Finance Minister has announced Events
that from January 1, 2020 there will be no merchant discount
rate (MDR) charges for transactions using RuPay Debit Card or TRIAL OF SERVICES: To further
UPI. In addition, businesses with annual turnover of Rs.50 Crore strengthen the conduct of investment
or more will have to mandatorily offer the two digital payment advisors, SEBI has asked them to conduct
options as the Government makes a fresh push for mass use of proper risk profiling of clients and obtain
digital payments. The Government and RBI had earlier ordered a their consent on the same before providing
waiver of MDR charges on transactions up to Rs.2000 using a any advice. SEBI also restrained them
handful of payment tools, which has now been expanded to cover from providing free trial for any product/
all transactions. service. The measures aimed at further
strengthening the conduct of investment
• SEBI TO MAKE PRE-TRADE ALLOCATIONS
advisors while providing investment advice
MANDATORY: SEBI is planning to make pre-trade allocations
and protect the interest of investors
mandatory for all institutional investors. Currently, the institutional
seeking advice will come into effect from
investors buy large blocks of stocks and allocate them to schemes
January 1.
after purchase. However, now the regulator wants investors to
disclose to exchanges in advance what quantity of shares is meant • RBI PLANS TO SET UP A “COLLEGE
for which fund. There is currently no uniform industry practice OF SUPERVISION”: To ensure that
for allocation of shares amongst various funds, but most of the irregularities in the financial sector which
fund houses prefer to buy the shares first and then allocate them. are increasingly becoming complex and
interconnected, do not escape the attention
• GOVT. FOR ONE DIGITAL REPOSITORY OF OFFICIAL
of its inspectors, RBI is planning to set up
DATA: An umbrella information portal collating official data on
a “College of Supervision”. Skill imparting
employment, industry, national health mission, GST and import-
is not a one-time affair. They have to be
export is in the works as the Government plans to put out timely,
re-skilled from time to time because things
credible, user-friendly official data on a single window. The
are evolving and changing and becoming
Ministry of Statistics and Programme Implementation is developing
more complex. The proposed college will
a digital repository of all official statistics in the country called
improve the skill-set of inspectors so that
National Integrated Information Portal (NIPP) to improve
when they assess risk in regulated entities
transparency and easy access to such data. The NIPP will facilitate
such as banks, NBFCs, Urban CO-Co.
the flow of information for quicker generation of key
Banks and Payment System Providers,
macroeconomic indicators and also feed into sustainable
they are mindful of the lurking dangers.
development goals.
• FINMIN NOTIFIES NORM IN GST
• LABOUR MINISTRY RESTORES COMMUTATION OF
DETAILS MISMATCH: In an effort to
PENSION: The Labour Ministry will enforce EPFO’s decision to
curb the menace of fake invoices and tax
restore pension commutation or advance part-withdrawal under
evasion, the Finance Ministry has notified
the Employees’ Pension Scheme from January 1, 2020. This move
a new norm of limiting the input tax credit
will benefit 0.63 million lakh pensioners. These pensioners had
(ITC) to 10% in case of GST details
opted for commutation of their pension and got a lumpsome
mismatch. This will force businesses to
amount at time of retirement from their pension fund before 2009.
restrict themselves to matched details and
• SEBI MANDATES RISK PROFILING AND BANS FREE ignore the mismatched ones and thus incur

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8 ♦ Banking events updatE ♦ January 2020 2019 Financial Events
losses which could go into Crores for big companies due to companies. The code will come into effect
complexities involved. According to the notification to be from April 1, 2020.
effective from January 1, ITC to be availed by a registered • SEBI UNVEILS NEW MECHANISM TO
person in respect of invoices or debit notes, the details of which REWARD WHISTLEBLOWERS: SEBI
have not been uploaded by the suppliers, shall not exceed 10% came out with a new mechanism to reward
of the eligible credit available in respect of invoices or debit whistleblowers and other informants for
notes the details of which have been uploaded by the suppliers. sharing information about insider trading.
• GOVT. CLEARS NPR UPDATE EXERCISE: Union Cabinet It would be mandatory to disclose source
has approved conduct of Census of India 2021 at a cost of of information, the confidentiality regarding
Rs.13000 Crore. The data for National Population Register the identity of the informant would be
(NPR) was collected in 2010 along-with the house-listing phase protected. Insider trading refers to trading
of Censes of India 2011. It was updated in 2015 by conducting of securities while in possession of
door-to-door surveys. The digitisation of updated information Unpublished Price Sensitive Information
has been completed. For the upcoming Census which starts (UPSI) about the particular securities. SEBI
from April, no document or biometric identification will be said that the reward would be given in case
required. It will be done through a Mobile App. Use of Mobile the information provided leads to a
App. for data collection and Central Portal for monitoring purpose disgorgement of at least Rs.1 Crore in
will ensure early release of Census data with improved quality. accordance with the Prohibition of Insider
• NON-FILING OF GST RETURNS MAY LEAD TO Trading Regulations.
PENALTY: The GST Law makes it mandatory for a registered • COMPANIES UNDER IBC PROCESS
person to file returns either monthly (Normal Supplier) or on a TO GET GST RELIEF: The Government
quarterly basis (Supplier opting for Composition Scheme). An may allow companies undergoing resolution
ISD (Input Service Distributor) will have to file monthly returns process under the Insolvency and
showing details of credit distributed during the particular month. Bankruptcy Code (IBC) to pay current levies
Non filing of GST returns may lead to attachment of bank of GST without the mandatory payment of
accounts and even cancellation of registrations. This is a part past dues. This will remove a hurdle in the
of the Standard Operating Procedure (SOP) issued by the bankruptcy resolution process. Tax
Finance ministry to be followed in case of non-filing of returns. authorities are treated on a par with
• SEBI TO DISCONTINUE USAGE OF POOL ACCOUNTS operational creditors and eligible to receive
OF MF: SEBI has proposed to discontinue usage of pool payments with others. However, the GST
accounts by all platforms in transactions of Mutual Funds (MF)) Framework currently does not allow a
schemes with a aim to protect the investors against misuse of company to file current tax dues if it has
their investments. SEBI said that instances have come to light past dues. In some cases, penal action has
where clients funds and securities were diverted by trading or been initiated for noncompliance even in
clearing member towards margin obligations or settlement cases where the corporate insolvency
obligations of itself or some third party or for raising loan against resolution process has been initiated or GST
shares of its own account. Under the proposed framework, registration has been cancelled. This comes
the exchanges are required to facilitate a more direct interface in the way of efforts to revive a company
between clients and the clearing corporation bypassing under the IBC process.
intermediaries. • GOVT. TO IMPLEMENT STRICTER
• SEBI STARTS STEWARDSHIP CODE FOR MFs AIFs: RULES ON TRADE REMEDIES: The
SEBI has put in place a mandatory “Stewardship Code” for Government wants doing away with the
mutual funds (MFs) and all categories of alternative investment lesser duty rule so that higher anti-dumping
funds (AIFs) with regard to their investment in listed equities. and countervailing duties can be imposed
Stewardship code is a principle-based framework that assists on cheap imports hurting domestic
institutional investors in fulfilling their responsibilities to help producers. The lesser duty rule states that
them protect and enhance the value of their clients and in case of imports, once dumping or
beneficiaries. Adherence to the code by institutional investors subsidies are established the penal duty
also enhances the corporate governance of the investee imposed on the item may be less than the
 Banking events updatE ♦ January 2020 ♦ 9

margin if such lesser duty would be adequate to remove the injury Crore or more from April 1, 2020.
to the domestic industry. A large number of WTO members Businesses with a turnover of more than
including EU do not use the lesser duty rule and impose anti- Rs.500 Crore are mandated to issue “e-
dumping and countervailing duty to the full extent of dumping and invoices” with a Quick Response (QR)
subsidy margins. code from April 1. E-invoicing is a system
• GOVT. TO AMEND MSME ACT TOWARDS SINGLE in which invoices are authenticated
DEFINITION: Govt. is going to amend the MSME Act so that the electronically by GSTN for further use
update in the definition of MSMEs may allow a single definition on the common GST Portal. This system
for purposes relating to taxation, investment etc. The Union Cabinet will prescribe an identification number
has already approved the amendments to the law to change the that will be issued against every invoice
criteria for classifying MSMEs from “Investment in Plant and by the Invoice Registration Portal (IRP)
Machinery” to “Annual Turnover”. The proposed definition defines to be managed by GSTN. All invoice
a Micro enterprise as a unit where the annual turnover does not information will be transferred from this
exceed Rs.5 Crore, a Small enterprise as a unit where the annual portal to both the GST Portal and the e-
turnover is more than Rs.5 Crore but does not exceed Rs.75 Crore way bill Portal in real-time.
and a Medium enterprise as a unit where the annual turnover is • SUPREME COURT RULING ON
more than Rs.75 Crore but does not exceed Rs.250 Crore. ASSETS UNDER IBC PROCESS:
• GOVT. TO IMPLEMENT ALL LABOUR CODES IN ONE GO: (Case-Anand Rao VS. Varsha fabrics) In
The Government is planning to implement all the four labour codes this case the Supreme Court has
from a single date. While the labour code on wages has already reiterated that once the National Company
become a law, the remaining three codes each on industrial relations, Law Tribunal (NCLT) starts a corporate
social security and welfare and occupational safety, health and insolvency process, it is not open to a
working conditions have been introduced in the Lok Sabha. After High Court to auction the properties of
all the four codes become law, industry will have to apply for a the corporate debtor or pass an order that
single registration for labour laws, instead of the need to do eight goes against the moratorium. The Apex
separate labour law registrations. Court said that in view of the provisions
of the Insolvency and Bankruptcy Code
• SEBI MANDATES UPFRONT MARGIN DEPOSIT IN SHARE
(IBC), the High Court ought not to have
TRADES: SEBI has now mandated brokers to collect an upfront
proceeded with the auction of the
cash margin from retail investors even for buying and selling of
property of the corporate debtor once
shares. Institutional investors including foreign portfolio investors
the proceedings had commenced.
and mutual funds that treat equity trades as business transactions
have been exempted. So far, clients did not have to pay brokers an • DATA PROTECTION BILL GIVES
initial amount to deal in the cash market segment as the entire CENTRE UNLIMITED POWERS: The
amount was collected on a T+2 (Today+2) basis during settlement. proposed Data Protection Bill gives the
Henceforth, like in the derivatives segment, the TMs/CMs (Trading Government power to access any non-
Members/ Clearing Members) in the cash segment are also be personal information from anywhere at
required to mandatorily collect upfront VAR (Value at risk) and any given time. This gives the unlimited
ELM (Extreme loss margin) from their clients. power over any data that is not listed as
personally identifiable. It will also be able
• E-INVOICING SYSTEM MADE MANDATORY: According to
to exempt Government Agencies from
the notification issued by CBDT, the new invoicing system has
the provisions of the Bill. The Bill also
been made mandatory for businesses having a turnover of Rs.100

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Adv Bank Mgmt Banking/General
Finance 8th Edn Banking 8th Edn Banking 8th Edn
4th Edn Rs.200 4th Edn Rs.175 Awareness
JAIIB BOOKS
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10 ♦ Banking events updatE ♦ January 2020

requires social media companies to create e-KYC followed it.

like validation process. The validated users will • SEBI INSTRUCTIONS REGARDING
get something like a blue tick or visible mark of COMPLAINTS: SEBI has said that it will entertain only
verification which will be visible to all users of those complaints where an investor discloses his identity
the service. and provides supporting documents to substantiate an
• CENTRE EXPANDS AMBIT OF PARTIAL allegation. SEBI further said that it will not take any action
CREDIT GUARANTEE SCHEME: Coming to on complaints where it is not able to reach back to the
the aid of NBFCs, the Union Cabinet gave its nod complainants. The statement has come in the backdrop
to tweak the existing Rs.1 Lakh Crore partial credit of an individual making several complaints wherein he
guarantee scheme. Also, the much-sought –after made grave allegations over certain issues without any
dilution in the minimum credit rating for availing supporting documentary evidence and without disclosing
the scheme has also been given the go ahead, with his/her real identity. SEBI has said clearly “No” to
the minimum rating of the asset pool now lowered complaints without ID, documentary proofs.
to “BBB+” from the earlier stipulated minimum • RBI TO BECOME SOLE REGULATOR OF LARGE
level of “AA”. The centre has now created a UCBs: Large Urban Co-operative Banks (UCBs) may
separate window for those NBFCs/HFCs that may now come to be solely under the provisions of the
have slipped into a SMA-0 (Default1-30 days) Banking Regulation Act in which RBI will be the sole
category during the one year period prior to August regulator. The upcoming changes will bring the curtains
1, 2018 (turbulence due to IL&FS). The guarantee down on the vexed issue of dual control of UCBs which
scheme will remain open till June 30, 2020 or till has been in vogue for last 54 years. In the revised scheme,
such date by which Rs.1 Lakh Cr in assets get the inspection of the UCBs solely under BR Act will be
purchased by banks, whichever is earlier. done by RBI with those of others being carried out by
• CENTRE ISSUES UNIFORM STAMP DUTY the Registrar of Co-operative Societies (ROCS). The
FOR ALL TRANSACTIONS: In a move that will new framework will affect 1551 UCBs in the country
curb menace of different states flexing their which had a total business of Rs.7.36 trillion.
muscle on stamp duty collection in equity, • GOVT. PLANS TO ISSUE STRICTER AUDIT
currency and commodity markets, Centre has NORMS: Ministry of Corporate Affairs plans to revise
issued a uniform stamp duty structure across Company Auditors Regulation Order (CARO) 2016.
states, to be effective from January 2020. Detail Government through revised CARO wants auditors to
of stamp duty charged is based on traded volume provide a “Fund to fund” Audit to ascertain how money
and is mentioned in a contract note. Brokers given as loans by one company to the other such as its
collected it and passed it on the respective states own subsidiary or related parties is being utilised. The
where trading volumes come from. idea is to restrict the transfer of such funds as the funds
• INDIA TO SWITCH TO CHAIN BASE are being given to a company which was not eligible to
METOD FOR ESTIMATING GDP: In a radical get a loan on its own All this affects the financial health
change, the Government is considering the of a company. Auditors might soon have to provide a
possibility of moving to the chain base method of detailed report on usage of borrowed funds, comment
calculating India’s GDP from the current practice on critical financial ratios and flag any factors that affect
of a fixed base year to better reflect changes in the going concern nature of the companies under audit.
the economy and prevent controversies. The Chain • INDIA’S FIRST BOND ETF TO BE LAUNCHED: The
base Index is wherein the national account Union Cabinet has approved the launch of India’s First
statistics or GDP estimates are compared with Bond Exchange Traded Fund (ETF) which can be bought
those of the previous period instead of a fixed and sold like any listed security on the bourses. The
base year, which is revised every five years. The ETF- “Bharat Bond ETF” will be made of AAA-rated
chain base method will capture structural changes papers issued by Government-linked companies to start
in the economy faster by allowing new activity with and will come in two maturities- 3 and 10 years.
and items to be added every year. Current GDP The Bond ETF will provide safety, since the underlying
estimates are based on data for 2011-12 and are bonds would be issued by Government-linked entities,
due for an update. The US shifted to the chain liquidity and predictable tax efficient returns.
base method in 1996 and other developed countries
 Banking events updatE ♦ January 2020 ♦11

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12 ♦ Banking events updatE ♦ January 2020 DIARY OF EVENTS
• India has been placed at 142nd ranking among 190 nations after • Govt. scheme under which NPAs have
having jumped 14 places- Ease of Doing Business Index. increased from 2.52% in FY 2018 to 2.86%
• Policy which will come into effect by April 1, 2020- New in FY 2019- Pradhan Mantri Mudra
Foreign Trade Policy. Yojana.
• Bank which has approved a total loan of $210 million for • India has been ranked 73 rd out of 152
irrigation and solar energy projects in India- Beijing-based countries in- B2C E-Commerce UN Index.
Asian Infrastructure Investment Bank. • Union Cabinet has approved the launch of
• Bank which has developed and handed over to RBI a Unique India’s First Bond Exchange Traded Fund
Digital Banking and Financial Literacy Tool for the “Hearing (ETF)- Bharat Bond ETF.
Impaired”- ESAF Small Finance Bank. • Bank which has introduced a “Atoot
• Sangeeta Reddy, Joint MD of Apollo Hospital has been taken Scheme” to provide immediate relief to the
over as- FICCI President. family of an employee dying in harness-
• Scheme under which the centre has approved Rs.1855 Crore SBI.
for new projects- Swadesh Darshan Scheme. • Rating Agency which has downgraded its
• Scheme under which the Union Cabinet approved Rs.6000 Crore outlook for “Global Banks” to “Negative”
to improve groundwater management- Atal Bhujal Yojana. from “Stable” citing slowing growth, low
interest rates and volatile operative
• Bank Frauds increased from 5916 with amount of Rs.41167
conditions- Moody’s.
Crore in 2018 to 6801 with amount of Rs.71543 Crore in 2019.
• Capacity Utilisation in India’s Manufacturing
• Union Cabinet approved restructuring of the Railway Board
Sector plummeted to 68.9% in September
through merger of its existing 8 Group A services into a Central
quarter, which is -Worst-ever Level since
service called- Indian Railway Management Service
2008.
(ARMS).
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• State which has approved Loan waiver of farm loans up to
November vis-s-vis 89.4 in September based
Rs.2 Lakh- Maharashtra Govt.
on current perception of the economic
• While Tamilnadu has topped in the country in “Good situation, employment and price level- RBI’s
Governance”, State which is the poor performer - Odisha Consumer Confidence Index.
followed by Bihar.
• Scheme under which the Centre has so far
• Notification has been issued by the Finance Ministry for setting disbursed around Rs.36, 000 Crore to the
up - GST Grievance Redressal Committee. beneficiaries – Pradhan Mantri Kisan
• State which has got “Best Performing Award for Rural Samman Nidhi Scheme.
Employment”- Andhra Pradesh. • Scheme under which for First time since
• Two Banks are the only Public Sector Lenders that have shown launch of the scheme in February Govt.
“Good Performance” in Digital Transactions in October as per insists for “Aadhar-linked Accounts” only
“Monthly Rankings” by Ministry of IT- SBI & Bank of in which funds under 4th instalment will be
Maharashtra. given to Farmers-beneficiaries’- PM-
• As per ET Awards, Bajaj Finance has been awarded as- KISSAN Income Support Scheme.
Company of the Year. • While Norway has topped the Index, India
• Soma Roy Barman, a 1986- batch Indian Civil Accounts Service has risen one rank to 129 in- Human
Officer has been appointed by the Govt. as- 24th Controller Development Index.
General of Accounts. • Scheme under which 5.91 Crore people
• Navy has got Sub-Lieutenant Shivangi as- First Woman Pilot. have been enrolled in the country- Pradhan
Mantri Jeevan Jyoti Bima Yojana.
• In a First for both, who have launched a co-branded Credit
Card for more than a million members (mostly kiryanas) of the • Agency which has banned Russia from
latter’s best price modern wholesale stores in the country- HDFC Global Sporting Events for 4 years after
Bank and Walmart. accusing Moscow of falsifying data from
an anti-doping laboratory- World Anti-
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Doping Agency.
at BBB-with a Stable Outlook- Standard & Poor’s .
Compilation : SP Sharma & Sapandeep Toor Source : Financial Newspapers, Financial News-Magazines & Financial and Institutional Web-sites
 Banking events updatE ♦ January 2020 ♦13
MOCK-TEST business entities with turnover can be issued?
PAPER of Rs.____ are required to a Rs.50000
provide digital payment facility? b Rs.25000
Questions on RBI Policy
a Rs.10 cr and above c Rs.10000
01 Which of the following RBI
direction is not applicable to b Rs.50 cr and above d Rs.5000
IFSC Banking Units? c Rs.60 cr and above 10 What is the annual turnover
a LCR as applicable to bank d Rs.100 cr and above value for which new type of
b NFSR as applicable to a bank 06 With effect from 01.01.2020, semi-closed Prepaid Payment
c Liquidity risk management all business entities with a Instrument can be issued?
specified turnover are required a Rs.5 lac
d none of the above
to provide digital payment b Rs.3.60 lac
02 IFSC Banking Units (IBUs) can facility. If they fail to do so,
maintain the following type of they will have to pay fine of c Rs.2.40 lac
accounts? ____. d Rs.1.20 lac
a saving bank accounts a Rs.10000 per day 11 The aggregate exposure of a
b FC current accounts of units b Rs.5000 per day lender to all borrowers at any
operating in IFSC and their point of time, across all P2P
c Rs.100 per transaction platforms, shall be subject to a
corporate borrowers
d Rs.50 per transaction cap of ___ provided that such
c deposits from high net worth
individuals 07 Which of the following groups investments of the lenders on
of banks in not required to send P2P platforms are consistent
d all the above with their net-worth.
credit information on large
03 IFSC banking units (IBUs) exposures to CRILC? a Rs.100 lac
maintain FC fixed deposits of
a scheduled commercial banks b Rs.50 lac
non-bank entities for a maturity
period of: b private banks c Rs.25 lac
a less than one year c urban cooperative banks d Rs.10 lac
b one year *d none of these 12 Member banks cannot levy any
c 1 year to 3 years 08 Which of the following is a charges from _____ for funds
feature of new type of semi- transfers done through NEFT
d at their discretion system which are initiated
closed Prepaid Payment
04 All authorised payment systems Instrument? online (viz. internet banking
and instruments such as ______ and/or mobile apps of the
a can be issued by banks and
are permitted by RBI for linking banks)
non-bank PPI providers
with the FASTags, which can be a saving bank accounts
used for various types of b mobile phone and OTP is
payments (vehicle toll, parking mandatory b current accounts
fee, etc. c can be used to buy goods and c cash transactions
a non-bank PPIs, services and not for transfer of d all the above
funds RECALLED QUESTIONS
b cards
d all the above 13 On which of the following
c Unified Payments Interface
(UPI) 09 What is the value for which accounts relating to an NRI,
new type of semi-closed income tax would be deducted
d all the above
Prepaid Payment Instrument at source and at what rate:
05 With effect from 01.01.2020, all
Disclaimer : We have taken every care to provide information, we believe to be accurate We strongly believe that the subscribers
and reliable and do not assume responsibility of any kind nor shall be liable for losses & are the best consultants, we have. Based
consequence arising from use thereof. Since this information is based on the published on their feed back, we keep on redesigning
reports mostly, correctness or otherwise thereof may be verified by the user with the and restructring this publication. Kindly
original sources, in advance. .......................................................................Editor send your suggestions and views.
14 ♦ Banking events updatE ♦ January 2020
a all accounts at 10% b 11 (current account) only of the value assessed
b for NRE account at 10% c 13 (cash credit) only 23 Loan sanctioned by a bank to
c for FCNR account at 10% d all transaction codes, other than finance plant tissue culture and
those relating to government agri-biotechnology, seed
d for NRO at 30%
cheques. production, production of bio-
e for all accounts at uniform rate pesticides, bio-fertilizer and
of 30% 19 Establishment of Lok Adalt is
vermi composting is part of
governed by which of the
14 Which of the following keys ____ within agriculture
following Acts:
are used in digital signature: advances in priority sector.
a SARFAESI Act
a master key a farm credit
b Recovery of Debt and
b public key b development loans
Bankruptcy Act
c private key c ancillary activity
c Legal Services Authority Act
d customer key 1987 d agriculture infrastructure
e b and c both d Lok Adalt Act 1985 24 In a partnership firm, a minor
15 What the lending target in is admitted for benefits and he
20 Who among the following bears
priority sector for micro attains majority and decides to
the exchange fluctuation risk
enterprises: be a partner. His liability in this
for the foreign currency in
a 7.5% of ANBC case shall begin from:
respect of Foreign Currency
B 7% of ANBC Non-resident (banks) accounts a the date when he was admitted
? for benefits
C 8% of ANBC
a Reserve Bank b the date of majority
D 7% of MSE loans
b Ministry of Commerce c the date when he decided to
16 In the beginning of the financial become partner
year, the capital of a firm was c Ministry of Finance
Rs.24000. The firm earned a d the date when he actually
d Depositor
profit of Rs.4500 and paid tax became full fledged partner
e Concerned banks
at 20%. The partners also 25 A company proposes to pay
21 The payment of a cheques is dividend to its a very large no.
withdrawn Rs.1500. What is
made by a bank, without of shareholders holding small
the closing balance in the capital
receiving the physical cheque no. of shares. The most
account.
from collecting bank, on the appropriate mode for such
a Rs.24000 basis of electronic image, by payment would be:
b Rs.26100 using which of the following
a send dividend cheques to them
c Rs. 27000 system:
b get dividend warrants printed
d inadequate information a RTGS b CTS
c send demand draft to them
17 What is the margin on loan c NEFT d ECS
against physical shares that d send dividend warrants in
22 What is the extent of loss of
banks are to retain: manageable lots of shareholders
security for considering an
a 25% of the market value account as doubtful NPA e use ECS-Credit service
b 50% of the market value directly, in doubtful up to one 26 Loans to distressed persons
year category: (other than farmers) up to Rs.
c 50% of the face value
a 50% of the balance in the ______ per borrower to prepay
d at discretion of the bank their loans to non-institutional
account
18 Speed Clearing is enabled for lenders can be classified as part
b more than 50% of the
cheques issued by account of other priority sector:
sanctioned limit
holders with the following a 25000
transaction codes: c realisable value is less than 50%
of the value assessed b 35000
a 10 (savings bank) only c 50000
d realisable value is 50% or less
 Banking events updatE ♦ January 2020 ♦15
directives is restricted to: 36 Section 269 T of Income Tax
d 100000
a 12% of the capital fund Act deals with which of the
27 On the death of an FD holder following aspects:
his nominee claims the payment b 20% of Tier-1 capital
a payment of FDR in cash less
before maturity, but the legal c 18% of paid up capital
than Rs.20000
heirs oppose such payment: d 22.5% of paid up capital
b preparation of bank draft in cash
a The bank will not pay e 15% of the paid up capital for less than Rs.50000
b The bank will not pay because 32 Bank notes should not be c obtaining PAN for opening term
the legal heirs may also claim the stapled. These instructions have deposit account
amount on maturity been issued by RBI under:
d all the above
c Bank will pay as now the a RBI Act Section 21
nominee has all rights of the 37 Bank-B maintained FDR
b Banking Regulation Act Sec 35- account of X, who has expired.
depositor to obtain payment
A The FDR had matured after his
d a and b
c Banking Regulation Act Sec 21 death. What interest rate would
28 A wants to have a bank be paid from date of maturity
d Coinage and Currency Act Sec
account, where, after his death, to date of payment to legal heirs:
12
B should be able to get payment
33 What is the maximum amount a no interest is payable
of balance. He can:
per withdrawal from SB b interest at saving rate is payable
a open a joint ‘former or survivor’
account that can be withdrawn c interest applicable to FDR for
account
by a customer by using ATM of the period deposit remained with
b nominate B in the account other bank under RBI ATM Free bank is payable
c appoint B as his agent after his Access Policy?
d simple interest applicable to FD
death a Rs.1000 for the period, the deposit
d any of the above b Rs.5000 remained with bank after
29 X and Y have a joint locker in c Rs.10000 maturity, is payable
their name and Z is the nominee. 38 The insurance sector and capital
d no such limit
In case Y dies, the access to the market is regulated by which of
locker will be given by the bank 34 According to RBI definition
under RBI (Interest Rate on the following:
to which of the following:
Deposits) Directions 2016, the a SEBI
a X alone
maximum maturity period of a b IRDA
b X and legal heirs of Y term deposit can be: c IRDA and SEBI respectively
c X and Z a one year d SEBI and IRDA respectively
d X, Z and legal heirs b five years 39 Star series notes replace:
30 Unsecured exposure in the c 10 years a mutilated notes
context of bank loans means
d at bank discretion b mismatched notes
where the quantum of security
is ____, compared to amount of 35 Your branch has sanctioned a c soiled notes
loan: loan of Rs.15 lac under Agri
d counterfeit notes
Clinics and Agro-Business
a 50% or less e defectively printed notes
Centres scheme. It will be
b 20% or less Answers
classified in priority sector as:
01 d 02 b 03 a 04 d 05 b
c 10% or less a direct agriculture advance 06 b 07 d 08 d 09 c 10 d
d 5% or less b agriculture advance for allied 11 b 12 a 13 d 14 e 15 a
31 The normal exposure ceiling on activity 16 b 17 b 18 d 19 c 20 e
individual borrowers under the c direct MSE advance 21 b 22 c 23 d 24 a 25 e
large exposure framework in 26 d 27 c 28 a 29 c 30 c
d indirect agriculture advance 31 b 32 b 33 c 34 d 35 b
Indian banks as per RBI
36 a 37 d 38 c 39 e
16 ♦ Banking
Banking events ♦
events updatE updatE ♦ January
January 2020 ♦ 2020
16 Registration RNI No. 67802/98 Postal Regn No.CHD /0001/2015-17
RBI Bi-monthly Monetary Policy Dec 2019 DATA COLUMN
The monetary policy review was undertaken by RBI on 5th Dec 2019. It Business of Banks
(Rs.in cr) Mar31'18 Dec20-19
kept its policy Repo rate and other rates unchanged. It announced certain Aggregate deposits 10805150 13008651
measures, the details of which are given as under: Cash in hand/RBI 570490 644704
Investments 3043660 3724228
1. Primary (Urban) Co-operative Banks – Exposure Limits and Priority Bank Credit: 7881890 9947202
-Food 53930 85143
Sector Lending -Non-Food 7827960 9862059
Cash-Deposit Ratio 5.27 4.63
With a view to reducing concentration risk in the exposures of primary Investment-Deposit 28.14 28.03
(urban) co-operative banks (UCBs) and to further strengthen the role of Credit-Deposit 72.95 76.91
UCBs in promoting financial inclusion, RBI proposed to amend certain Money Stock
(Rs.in cr) Mar31'19 Dec20-19
regulatory guidelines relating to UCBs. M3 (Out of which) 15430870 16061648
(a) Currency with public 2052230 2179500
2. Primary (Urban) Co-operative Banks - Reporting to Central Repository (b) Demand deposits-Banks 1626310 1474941
of Information on Large Credits (CRILC) (c) Time Deposits - Banks 11720590 12374227
(d) Other deposits with RBI 31740 33979
RBI created a Central Repository of Information on Large Credits (CRILC) Sources of Money Supply
(a) Net Bank credit to Govt 4387790 4919683
of scheduled commercial banks, all India financial institutions and certain (b) Bank credit to Comrcl sectr 10380180 10599400
non-banking financial companies with multiple objectives, which, among (c) Net Forex assets of Banks 2977860 3434127
Important Banking Indicators
others, include strengthening offsite supervision and early recognition of Statutory Liquidity Ratio 18.25% (10.01.2020)
financial distress. With a view to building a similar database of large credits Cash Reserve Ratio 04.00% (15.02.2013)
Overnight LAF (of NDTL) 0.25%
extended by primary (urban) co-operative banks (UCBs), RBI decided to 14days term Repo(of NDTL) 0.75%
bring UCBs with assets of Rs.500 crores and above under the CRILC Reverse Repo Rate 04.90% (04.10.2019)
Repo Rate 05.15% (04.10.2019)
reporting framework. MSF Rate 05.40% (04.10.2019)
Bank Rate 05.40% (04.10.2019)
3. Comprehensive Cyber Security Framework for Primary (Urban) Small Savings Interest Rates
Cooperative Banks (UCBs) – A Graded Approach PPF 7.9% (01.07.2019)
5-year NSC 7.9% (01.07.2019)
RBI had prescribed a set of baseline cyber security controls for primary Sukanya Smridhi 8.4% (01.07.2019)
Senior Citizen Saving 8.6% (01.07.2019)
(Urban) cooperative banks (UCBs) in October 2018. It further decided to
Capital & Money Market Indicators
prescribe a comprehensive cyber security framework for the UCBs, as a Parameter end-Dec18 end-Dec19
graded approach, based on their digital depth and interconnectedness Dollar-spot TT (Rs.) 70.91 71.80
BSE - Sensex (points) 35312 41464
with the payment systems landscape, digital products offered by them NSE - Nifty(S&P CNX) 10601 12227
and assessment of cyber security risk. Foreign reserves (Million $) 392785 457468
Gold /Oz in USD) 1234 1542
4. Development of Secondary Market for Corporate Loans – setting up
of Self-Regulatory Body INDIAN ECONOMY-IMPORTANT PARAMETERS
RBI's growth estimate for FY 2019-20 : 7.2%
As recommended by the Task Force on Development of Secondary GDP@constant mkt prices (cr) 2018-19 : 14077586
Market for Corporate Loans, RBI will facilitate the setting up of a self- GVA@2011-12 basic prices (cr) 2018-19 : 12906936
regulatory body (SRB) as a first step towards the development of the GDP projected by Govt. for 2019-20 : 21007439
secondary market for corporate loans. The SRB will be responsible, inter- Fiscal Deficit Target (2019-20) 3.4% of GDP : 703999 cr
Revenue Deficit Target (2019-20) 2.2.% of GDP : 470214 cr
alia, for standardising documents, covenants and practices related to Wholesale Price Index : 3.2%
secondary market transactions in corporate loans and promoting the Money Supply (M3) expansion - YoY : 10.3%
growth of the secondary market in line with regulatory objectives. Exports during 2018-19 : 331.0 bn
Imports during (2018-19) : 507.06 Bn
5. Baseline Cyber Security Controls for ATM Switch application service Export target - 2017-18 (in $) : 310 bn
providers of RBI regulated entities India's share in world merchandise export : 1.70%
India's currency rating (S&P) : BB Postv
A number of commercial banks, urban cooperative banks and other India's external debt (Mar 2019) US $ : 543.0 Bn
regulated entities are dependent upon third party application service Tax-GDP ratio (2018-19) : 12.1%
providers for shared services for ATM Switch applications. Since these Apr- Oct19:Export $ 185.6 bn Imports : 280.7 bn
Per capita Income 2018-19 (Rs.) : 126406
service providers also have exposure to the payment system landscape
Indian economy's ranking in PPP terms : 3rd
and are, therefore, exposed to the associated cyber threats, it has been Indian economy's ranking in world in value: 7th
decided that certain baseline cyber security controls shall be mandated
by the regulated entities in their contractual agreements with these service OUR PUBLICATIONS : REFER PAGE 9,11
providers. •
DATE OF DESPATCH - Jan 7/ 10, 2020

Published by Chand Singh at 1008, Sector 45-B, Chandigarh - Printed by Chand Singh in digital form. Editor - Chand Singh