December 2024-January 2025 Banking News

Banking & Finance ●​ Deloitte Haskins & Sells:

Indian economy to grow at around 6.5% in FY25: ●​ Penalty: ₹2 crore.
Government ●​ CA A B Jani (Engagement Partner for ZEEL’s
●​ India's economy is projected to grow at audit):
6.5% in FY25. ●​ Penalty: ₹10 lakh.
●​ Projected by: Finance Ministry’s Monthly ●​ Ban: Five years from acting as an auditor or
Economic Review internal auditor for any company or
●​ Rebounding after a sluggish first half corporate entity.
caused by weaker manufacturing, ●​ CA Rakesh Sharma (Engagement Quality
consumption, and RBI's restrictive Control Reviewer for ZEEL’s audit):
monetary policy. ●​ Penalty: ₹5 lakh.
●​ Rural demand remains resilient, urban ●​ Ban: Three years from being appointed as
demand is recovering, and inflation is an auditor.
easing. Monthly Per Capita Expenditure increases by 9% in
●​ Note: rural areas
●​ The RBI has kept key interest rates ●​ The Monthly Per Capita Expenditure
unchanged for 11 consecutive policy (MPCE) has increased by 9 percent in rural
meetings, aiming to control inflation, areas and around 8 percent in urban areas
contributing to the slowdown. in 2023-24 from the level of 2022-23.
●​ 5.4% growth in the July-September quarter. ●​ Data released by: Ministry of Statistics and
●​ CPI inflation projected at 4.8% for FY25, Program Implementation
with a quarterly forecast of 5.7% (Q3) and ●​ Survey title: Household Consumption
4.5% (Q4). Expenditure Survey 2023-24
●​ The RBI’s reduction of Cash Reserve Ratio ●​ The average MPCE in rural India has been
(CRR) from 4.5% to 4%. estimated to be 4,122 rupees.
●​ ADB cuts India FY25 GDP growth forecast ●​ The average MPCE in urban India has been
to 6.5%, 7% in FY26 estimated to be 6,996 rupees.
●​ IMF retains India's GDP growth forecast at ●​ Data showed that rural consumption is
7% for FY25, 6.5% for FY26 growing faster than urban consumption,
●​ HDFC Securities expects India GDP to with the urban-rural consumption gap
moderate to 6.4% in 2024-25 narrowing significantly.
●​ Moody's kept India growth forecast for CY ●​ The urban-rural gap in MPCE has declined
2025 unchanged at 6.5%. to 71 percent in 2022-23 from 84 percent
●​ S&P affirms India's FY25 GDP growth at in 2011-12.
6.8%. Growth forecasts for FY26 and FY27 ●​ Non-food items remain the major
are lowered to 6.7% and 6.8% contributor to the household’s average
●​ CARE Ratings pares down India's FY25 GDP monthly expenditure, with about 53
growth forecast to 6.5% percent in the MPCE of rural areas and 60
NFRA Penalizes Deloitte and Auditors for Lapses in percent in the MPCE of urban areas.
Zee Entertainment Audit World Bank approves project worth $325 Mn to
●​ The National Financial Reporting Authority boost agriculture in Uttar Pradesh
(NFRA) has taken strict action against ●​ Loan To: Uttar Pradesh Government
Deloitte Haskins & Sells and two chartered ●​ Loan By: World Bank
accountants for serious lapses in the audit ●​ Loan Amount: $325.10 million
of Zee Entertainment Enterprises Ltd ●​ Project title: Uttar Pradesh Agriculture
(ZEEL) for FY2018-19 and FY2019-20. Growth and Rural Enterprise Ecosystem
●​ Key Penalties and Bans Strengthening (UP-AGREES) Project
 December 2024-January 2025 Banking News
●​ Reason: increase farmers’ incomes through ●​ Loan to: Amaravati Integrated Urban
improved crop productivity, adoption of Development Program for building Andhra
digital technologies and climate-resilient Pradesh's greenfield capital city Amaravati.
practices, and strengthened market ●​ Loan by: World Bank:
linkages. ●​ Loan amount: $800 million
●​ Final maturity: 33.5 years, including a grace ●​ Final maturity period: 29 years (including a
period of 6 years grace period of six years)
HDFC Bank carries out first gold forward deal from ●​ The government has decided to avail the
GIFT City financing in Japanese Yen.
●​ HDFC Bank has become the first domestic ●​ President: Ajay Banga
bank to execute a gold forward deal from ●​ Headquarters: Washington, D.C., United
GIFT City. States
●​ Executed by: HDFC BANK GIFT City IBU in ●​ Parent organization: World Bank Group
collaboration with Hindustan Platinum Pvt. ●​ Founded: July 1944, Bretton Woods, New
Ltd Hampshire, United States
●​ Role of Bank’s IBU in GIFT City: It serves as ●​ CFO: Anshula Kant
a trading and clearing member on the India to grow 6.6% in FY26
Indian International Bullion Exchange ●​ Rating agency: India Ratings and Research
(IIBX). ●​ Report title: FY2026 Macro Economic
●​ HDFC Bank, a nominated agency, is in the Outlook
process of becoming a special category ●​ Projection: 6.6 per cent (FY26), 6.4 per
client on IIBX and is now offering gold and cent for 2024-25
silver forwards from GIFT City. ●​ Capital formation is forecasted to increase
●​ Gold Forward deal: by 7.2 per cent in FY26.
●​ It is an agreement to buy or sell a specific India and ADB sign $42 million loan to help fortify
quantity of gold at a predetermined price Maharashtra’s coastline
on a future date. ●​ Loan to: Central government
●​ This enables business which deal with gold ●​ Loan by: Asian Development Bank (ADB)
to hedge against price risks. ●​ Loan amount: $42 million loan
SBI-SG Global pays Rs 29.25 lakh, settles FPI ●​ Aim: To provide coastal and riverbank
violation case with Sebi protection to increase resilience of local
●​ SBI-SG Global Securities Services settled a communities and natural ecosystems in the
case related to an alleged violation of FPI state of Maharashtra.
(foreign portfolio investors) rules and other ●​ Headquarters: Mandaluyong, Philippines
regulatory norms with Sebi by paying Rs ●​ Founded: 19 December 1966
29.25 lakh towards settlement charges. ●​ President: Masatsugu Asakawa (until
●​ SBI-SG Global Securities Services Pvt Ltd February 23, 2025), Masato Kanda
(applicant) is a Sebi-registered designated ●​ Membership: 69 countries
depository participant (DDP). Mandatory masking of key identity proofs in CKYC
●​ The order came after SBI-SG Global from Jan 20 to prevent fraud
Securities Services submitted a settlement ●​ The Central KYC Records Registry has
application, requesting for settlement of the extended the deadline for masking (a
adjudication proceedings under the Sebi's security measure) Know Your Customer
settlement regulations. (KYC) documents to January 20, 2025.
World Bank okays $800 million loan to develop ●​ Registered reporting entities (REs) will
Amaravati only be able to view the last four digits of
KYC identifiers
 December 2024-January 2025 Banking News
●​ Such as: Aadhaar, PAN, voter ID, and driving ●​ Loans of up to Rs 2 lakh with a 10% margin
licence. money requirement, collateral-free
●​ Central KYC Records Registry (CKYCRR): financing, a competitive interest rate of 7%
●​ It is a centralised repository of customer p.a., and a tenure of up to 10 years.
KYC records of the Indian financial sector. ●​ For systems between 3 kW and 10 kW:
●​ Aim: To reduce the burden on customers ●​ Loans of up to Rs 6 lakh with a 20% margin
having to produce and verify documents money requirement, collateral-free
each time they open a new financial financing, and interest rates at 10% per
account. annum, with a maximum tenure of 10
IFC invests $75 mn in NDR InvIT's years.
sustainability-linked bonds TCS expands five-year deal with Bank of Baroda
●​ International Finance Corporation (IFC) has ●​ Tata Consultancy Services (TCS) has
invested $75 million (about Rs 630 crore) expanded partnership with Bank of Baroda.
in sustainability linked bonds (SLB). ●​ Aim: To continue implementing its financial
●​ Issued by: NDR InvIT, an infrastructure inclusion solution
investment trust (InvIT) ●​ Tenure: Next five years
●​ Sponsored by: NDR Warehousing Pvt Ltd ●​ The deal aims to enhance banking services
●​ The SLB, in domestic currency, is the first for unbanked populations across India.
by a warehousing InvIT in India. ●​ Bank of Baroda:
●​ Aim of Funding: To support expansion of ●​ Founded: 20 July 1908
NDR InvIT’s warehousing operations, ●​ Headquarters: Vadodara, Gujara
enhance infrastructure quality, and ●​ Chairman: Hasmukh Adhia
promote sustainable practices. ●​ MD & CEO: Debadatta Chand
●​ Note: NDR InvIT Trust is the first ‘perpetual Sebi introduces uniform data sharing policy for
warehousing and industrial parks’ InvIT to research purposes
be listed on an Indian stock exchange ●​ Organization: SEBI
(NSE). ●​ Introduction: Uniform data sharing policy
Sebi eases rules for AMCs' scheme documents for research purposes
Organization: SEBI ●​ Direction to: Market Infrastructure
●​ Simplified the framework for asset Institutions (MIIs) (stock exchanges,
management companies (AMCs). clearing corporations, and depositories)
●​ Reduced the requirement to upload draft ●​ Introduction of: Two baskets:
Scheme Information Documents (SIDs) to 8 ●​ (1) Can be shared with the public
working days from 21 days earlier. ●​ (2) Cannot be made public
●​ Reason: To streamline the process, ●​ First basket:
reducing timelines, and enhancing investor ●​ Only aggregate and analysed data, such as
protection while simplifying compliance for reporting and disclosure data mandated by
AMCs. regulators.
●​ Effective immediately. ●​ Second basket:
Tata Power, Canara Bank partner to offer loans for ●​ Know-your-customer (KYC) information,
rooftop solar systems trade logs, and holding details of an entity
●​ Sign between: Tata Power Renewable or individual, along with the identity of the
Energy Ltd (TPREL) and Canara Bank entity or individual.
●​ Aim: To promote the adoption of rooftop ●​ Any collateral or bank-wise collateral
solar systems under the PM Surya Ghar information present with the clearing
Scheme. corporations will also fall under the second
●​ For systems with a capacity of up to 3 kW: basket.
 December 2024-January 2025 Banking News
ICAI launches residential programme and AI representation than the pan India average
platform 'CA-GPT' of 23.9 per cent in FY25 YTD (year-to-date)
●​ Launch of: AI Platform 'CA-GPT' ●​ Bihar (15.4%), Uttar Pradesh (18.2%) and
●​ Launched by: Institute of Chartered Odisha (19.4%) had sub-20% female share
Accountants of India (ICAI) in their respective registered investor
●​ Aim: To provide students and members bases.
with access to ICAI's comprehensive
database.
●​ Note:
●​ ICAI launched its first advanced flagship
residential programme.
●​ Title: Advanced Flagship Program:
Empowering Trusted Advisors – Unlocking
the Potential of Family Enterprises
(Residential)
●​ Date: January 7 - January 11, 2025
●​ ICAI is aiming to open a total of 11 Centre
of Excellence around the country.
●​ The registration fee for the programme is Draft Bill moots unregulated lending ban, up to
Rs 50,000 plus 18% GST 10-year imprisonment
1% rise in m-cap leads to 0.6% rise in GDP growth ●​ Proposal: To classify unregulated lending as
rate: SBI Eco Research a cognizable and non-bailable offence
●​ Report by: SBI Eco Research ●​ Draft by: Finance ministry in collaboration
●​ Highlights: with states
●​ Higher market capitalisation signals a ●​ Draft bill title: BULA (Banning of
robust economy Unregulated Lending Activities)
●​ Reflection: Increased investor confidence ●​ Aim: To address both traditional and digital
●​ Result: Drives overall economic growth lending
●​ A 1% rise in market capitalisation leads to a ●​ Highlights:
0.6% rise in gross domestic product (GDP) ●​ Illegal lending practices, whether digital or
growth rate. otherwise:
●​ Funds mobilised by Indian companies from ●​ Imprisonment for terms ranging from 2 to
capital markets: Increased 7 years
●​ 2014: Rs 12,068 crore ●​ Fines: Between Rs 2 lakh and Rs 1 crore
●​ FY25 (till October): Rs 1.21 trillion crore ●​ Use of unlawful methods to harass
●​ Savings of households in “shares and borrowers or recover loans:
debentures”: Increased to 1% of GDP in ●​ Imprisonment of 3 to 10 years and hefty
FY24, from 0.2%in FY14. fines
●​ Share in household financial savings has ●​ The Central Bureau of Investigation (CBI) to
increased from 1% to 5%. handle probes in cases where the lender,
●​ Total demat accounts in the country borrower, or property are spread over
crossed 150 million in FY24. multiple states or Union Territories (UTs),
●​ Female participation: or if the value of the transaction is large
●​ Participation: Increased enough to significantly impact public
●​ Delhi (29.8%), Maharashtra (27.7%) and interest.
Tamil Nadu exhibit higher female India Secures $500 Million ADB Loan for Green
Infrastructure Projects
 December 2024-January 2025 Banking News
●​ Loan to: India ●​ No GST is payable on ‘penal charges’ levied
●​ Loan by: Asian Development Bank (ADB) and collected by banks and NBFCs from
●​ Loan amount: 500 million dollar borrowers for non-compliance with loan
●​ Reason: To support green and sustainable terms
infrastructure projects aligned with the ●​ Reduction of payment of pre-deposit for
country’s climate commitments. filing an appeal before the Appellate
●​ The loan, with a sovereign guarantee, will Authority in respect of an order passed
be extended to the India Infrastructure which involves only penalty amount
Finance Company Limited (IIFCL) DBS Bank launches overseas education solutions
●​ ADB: ●​ Name of program: DBS Study Abroad Total
●​ Headquarters: Mandaluyong, Philippines Assist
●​ Founded: 19 December 1966 ●​ Launched by: DBS Bank India
●​ President: Masatsugu Asakawa (until ●​ Beneficiary: Non-resident Indians (NRIs)
February 23, 2025), Masato Kanda and high net-worth individuals (HNIs)
●​ Membership: 69 countries ●​ Aim: To navigate the challenges of overseas
Recommendations of the 55th Meeting of the GST education
Council ●​ This programme is tailored to support DBS
●​ Meeting: 55th GST Council Treasures customers.
●​ Chairperson: Union Minister for Finance & ●​ Chairperson: Ravindra Bahl
Corporate Affairs, Nirmala Sitharaman ●​ Managing Director & CEO: Surojit Shome
●​ Date: 21st December 2024 ●​ HQ: Mumbai
●​ Location: Jaisalmer, Rajasthan Nissan and Honda Announce Strategic Merger
●​ Key Recommendations: Plans
●​ GST rate on Fortified Rice Kernel (FRK), ●​ Expected merger: Honda Motor Company
classifiable under 1904: 5% (Honda) and Nissan Motor (Nissan)
●​ Sale of all old and used vehicles: 18% ●​ Merger completed by: August 2026
●​ Autoclaved Aerated Concrete (ACC) blocks (Expected)
containing more than 50% fly ash content: ●​ Reason: To co-develop future products and
12% form a holding company that could
●​ GST on premiums paid for policies with potentially become third largest in the
health insurance cover of over Rs 5 lakh: world.
18% Claims ratio of non-life insurers dips to 82.52% in
●​ Ready to eat popcorn Mixed with salt and FY24: Irdai report
spices: 5% ●​ Name of Report: Annual Report 2023-24 of
●​ Ready to eat popcorn Pre-packaged and the Insurance Regulatory and Development
labelled mixed with salt and spice: 12% Authority of India (Irdai)
●​ Ready to eat popcorn Caramelised popcorn: ●​ Highlights:
18% ●​ Net incurred claims to net earned premium
●​ Exemption of GST: (claims ratio) of non-life insurance industry
●​ Gene therapy: Fully exempt stood at 82.52% during 2023-24 as against
●​ Contributions by general insurance 82.95% in the preceding fiscal year.
companies from third-party motor vehicle ●​ The non-life insurance industry
premiums for Motor Vehicle Accident Fund underwrote a total direct premium of Rs
●​ No GST on transaction of vouchers as they 2.90 lakh crore in India registering a
are neither supply of goods nor supply of growth of 12.76 per cent from previous
services year.
 December 2024-January 2025 Banking News
●​ The contribution of public sector general ●​ No cap on ITC transfer.
insurers increased 8.88 per cent from Rs ●​ Tier 3: Existing Businesses with Higher ITC
82,891 crore in 2022-23 to Rs 90,252 crore Needs:
in 2023-24. ●​ For businesses seeking ITC beyond the
●​ Private sector insurers, including specified limit but not categorized as
standalone health insurers, have “trusted.”
underwritten Rs 1.88 lakh crore as against ●​ Tier 4: Change of Category for Higher ITC
Rs 1.58 lakh crore in 2022-23. Needs:
●​ The aggregate profit of the non-life ●​ Businesses seeking to upgrade their
insurance sector was Rs 10,119 crore as category for increased ITC transfer will
against a net loss of Rs 2,566 crore in follow this tier.
2022-23. Bank frauds jump to Rs 21,367 crore in first half of
●​ During 2023-24, the aggregate net incurred FY25
claims saw a 15.39 per cent increase to Rs ●​ In H1FY25, the incidence of fraud and the
1.72 lakh crore from Rs 1.49 lakh crore. amount involved have increased
●​ The insurance penetration for life insurance substantially.
industry marginally declined from 3 per ●​ Over 18,000 incidents occurred, involving
cent in the previous year to 2.8 per cent Rs 21,367 crore, with the majority of the
during 2023-24. frauds occurring in the advances.
●​ The penetration with respect to non-life ●​ In H1FY24, there were 14,480 incidents of
insurance industry remained the same at 1 fraud, with the amount involved being only
per cent during 2023-24 as in 2022-23. Rs 2,623 crore.
●​ There were 26 life insurers, 25 general ●​ In FY24, the amount involved in frauds was
insurers, eight standalone health insurers, the lowest in a decade, while the average
12 reinsurers and foreign reinsurance value was the lowest in 16 years.
branches, and two specialised insurers, Nuclear Power Corp raises Rs 4,600 cr at 7.14%
registered as on March 31, 2024. ●​ Organization: Nuclear Power Corporation
Small, new businesses may get GST registration of India (NPCIL)
within 3 working days ●​ Raised: Rs 4,600 crore
●​ Context: Simplified GST registration ●​ Via: 15–year bonds
process for small and new businesses ●​ Coupon rate: 7.14 per cent
●​ Reason: To curb fraudulent registrations ●​ About Nuclear Power Corporation of India
●​ Proposed Four-Tier Structure (NPCIL):
●​ Tier 1: New and Small Businesses: ●​ Headquarters: Mumbai
●​ For businesses with limited or no ITC ●​ Founder: Government of India
transfer, registration will be granted within ●​ Founded: 1 September 1987
3 days based on Aadhaar-based ●​ CMD: Bhuwan Chandra Pathak
authentication. State-owned REC raises Rs 2,195 crore via bonds of
●​ Cap on ITC transfer set at ₹5 lakh per different maturities
month. ●​ Organization: Rural Electrification
●​ Tier 2: Trusted Businesses: Corporation Ltd. (REC)
●​ Includes businesses with better compliance ●​ Raised: Rs 2,195 crore
records such as: ●​ Via: Bonds of different maturities
●​ Public sector companies, government ●​ Rs 575 crore via bonds maturing in 15
entities, and compliant private firms. years at a coupon rate of 7.14%.
●​ No biometric Aadhaar authentication or
physical verification required.
 December 2024-January 2025 Banking News
●​ Rs 1,620 crore at 7.10 per cent through ●​ Introduction of: Reversal Trade
bonds maturing in 10 years and four Cancellation Mechanism (RTCM) for its
months. equity derivatives segment
●​ REC is a ‘Maharatna’ company under the ●​ Organization: National Stock Exchange of
administrative control of the Ministry of India (NSE)
Power, Government of India. ●​ Design: To identify and cancel trades that
SEBI launches Association of Registered Research exhibit characteristics of reversal
Analysts of India (ARRAI) transactions, whereby a pair of clients
●​ Organization: SEBI engage in a series of trades with each other,
●​ Launch: Website for the Association of potentially creating artificial volume.
Registered Research Analysts of India ●​ The mechanism will monitor trades on an
(ARRAI). intraday basis and trigger cancellations if
●​ ARRAI: Represents the interests of certain thresholds are breached.
SEBI-registered research analysts (RAs). ●​ Founded: 27th November 1992
●​ Goal: ●​ MD & CEO: Ashishkumar Chauhan
●​ It include fostering a strong, collaborative ●​ HQ: Mumbai, Maharashtra
community among RAs, actively SEBI Introduced Specialised Investment Funds
participating in shaping effective industry (SIFs)
policies alongside SEBI and other ●​ It is designed for informed investors willing
regulatory bodies, to take on riskier investments.
●​ Promoting the adoption of best practices ●​ SIF bridges the gap between mutual funds
and ethical standards (MFs) and portfolio management services
●​ Elevating the role of RAs in promoting (PMS).
long-term investing and building and ●​ It requires a minimum investment of Rs 10
enhancing investor trust. lakh.
Sebi mulls service platform for tracking inactive, ●​ Asset Class : It is a group of investments
unclaimed mutual fund folios that share similar characteristics and are
●​ Organization: Securities and Exchange governed by the same regulations.
Board of India (Sebi) ●​ Equities (stocks), fixed income (bonds),
●​ Proposed: New platform for investors to cash and cash equivalents, real estate,
track inactive or unclaimed mutual fund commodities, and currencies.
folios. ●​ MFs: These are investment vehicles that
●​ Name of Platform: Mutual Fund Investment pool money from multiple investors to
Tracing and Retrieval Assistant (MITRA) purchase securities such as bonds, stocks,
●​ Aim: To enable investors to identify the or a combination of both.
overlooked investments or any other ●​ PMS: It provides personalized investment
investment made by someone else for management, where a dedicated portfolio
which they are a rightful legal claimant. manager tailors strategies to an investor’s
●​ Developed by: RTAs Computer Age specific needs, risk tolerance, and financial
Management Services (CAMS) and KFIN goals.
Technologies ●​ Asset Class : It is a group of investments
●​ A folio is considered inactive when no that share similar characteristics and are
investor has initiated any transaction in the governed by the same regulations.
last 10 years but the unit balance is ●​ Equities (stocks), fixed income (bonds),
available. cash and cash equivalents, real estate,
Reversal Trade Cancellation Mechanism (RTCM) in commodities, and currencies.
Equity Derivatives Segment
 December 2024-January 2025 Banking News
Suspension of futures trading in key farm ●​ Context: Tightens norms for investment
commodities extended advisors
●​ Organization: Securities and Exchange ●​ Organization: SEBI
Board of India (SEBI) ●​ Changes:
●​ Context: Extended the suspension of ●​ Mandate: Any person wishing to give
derivatives trading in seven agricultural investment advice must be qualified and
commodities. registered under the Investment Advisor
●​ Extended till: January 2025 (Suspended on: Regulations (IA Regulations), 2013.
December 20, 2024) ●​ Investment adviser (IA) who uses Artificial
●​ 7 agriculture commodities: Paddy Intelligence (AI) tools for servicing their
(non-basmati), wheat, chana, mustard seed clients be solely responsible for:
and its derivatives, soyabean and its ●​ (a) Security, confidentiality, and integrity of
derivatives, crude palm oil and moong the client data,
●​ Aim: To curb excessive speculation and ●​ (b) Use of any other information or data to
volatility in the commodity markets, arrive at investment advice
particularly in these essential agricultural ●​ (c) Investment advice based on output of
products, which have a significant impact Artificial Intelligence tools
on food prices and inflation. ●​ (d) Compliance with any law for the time
MFA required for E-Way Bill and E-Invoice being in force
generation for all GST assesses ●​ Disclose the extent of the use of artificial
●​ Context: Multi-Factor Authentication (MFA) Intelligence tools in providing investment
for using the updated versions of the E-Way advice to the clients.
Bill and E-Invoice Systems for all assesses ●​ Qualification of IA: Graduate (Minimum
will be made mandatory for all taxpayers Qualification)
●​ Effective from: April 1, 2025 ●​ Base certifications from NISM will be
●​ Also, there will be new provisions for required initially for registration.
restricting the generation of E-Way Bill. ●​ An investment adviser shall maintain a
●​ MFA will become mandatory for taxpayers deposit of such sum, as specified by the
with AATO (Aggregate Annual Turnover) Board from time to time.
exceeding ₹20 crore from January 1, 2025. ●​ Individuals registered as investment
●​ MFA will become mandatory for those with advisers whose number of clients exceed
AATO exceeding ₹5 crore from February 1, 300 (earlier 150) at any point of time or the
2025. fee collected during the financial year
●​ From April 1, 2025, it is mandatory for all exceeds 3 crore rupees, whichever is
other taxpayers and users earlier.
●​ Note: MFA is mandatory for taxpayers with ●​ For part-time advisors, the limit has been
an AATO exceeding ₹100 crore since August set at 75 clients.
20, 2023 ●​ The in-principle registration shall be valid
●​ Registered Person – Eway bill must be for a period of three months to assist in the
generated when there is a movement of transition from registration as individual
goods of more than Rs 50,000 in value to or investment adviser to non-individual
from a registered person. investment adviser.
●​ A registered person or the transporter may SEBI tightens norms for FPIs issuing offshore
choose to generate and carry eway bill even derivative instruments
if the value of goods is less than Rs 50,000. ●​ Context: Tightened rules on issuance of
SEBI tightens norms for investment advisors offshore derivative instruments (ODI) by
foreign portfolio investors (FPI).
 December 2024-January 2025 Banking News
●​ New Rules: ●​ Collab: ICICI Bank, Times Internet and Visa
●​ FPIs will not be able to issue ODIs with ●​ Launch: Times Black ICICI Bank Credit Card
derivatives as underlying. ●​ A new offering aimed at high-net-worth
●​ The investors cannot hedge their ODIs with individuals.
derivative positions on stock exchanges in ●​ The card also provides an annual fee waiver
India. on spending ₹25,00,000 within the year
●​ Accordingly, ODIs will only have securities and continues to offer benefits upon
other than derivatives as underlying and renewal.
will be fully hedged with the same Life Insurance Corporation’s Unclaimed Maturity
securities on a one-to-one basis, Amounts Reach Rs 881 Crore in FY24
throughout the tenure of the ODI. ●​ In FY 2023-24, Life Insurance Corporation
●​ ODI subscribers having more than 50 per (LIC) had unclaimed maturity amounts
cent of their equity ODI positions totaling Rs 880.93 crore, with 372,282
referenced to securities of a single Indian policyholders not claiming their maturity
corporate group and subscribers having benefits.
equity positions worth more than ₹25,000 ●​ 2022-23: Unclaimed amounts were Rs
crore in the Indian markets will be subject 815.04 crore for 373,329 policyholders.
to additional disclosures. ●​ 10 death claims worth Rs 14 lakh remained
SEBI Cracks Down On YouTuber Ravindra Balu unclaimed during FY 2023-24.
Bharti ●​ Founded: 1 September 1956
●​ Ban on: YouTube finfluencer Ravindra Balu ●​ Headquarters: Mumbai
Bharti and his company ●​ Siddharth Mohanty (Chairperson)
●​ Banned by: Securities and Exchange Board ●​ Founded: 1 September 1956
of India (SEBI) ●​ Headquarters: Mumbai
●​ Fine of: ₹9.49 crore ●​ Siddharth Mohanty (Chairperson)
●​ Reason: Unlawful gains ●​ Bima Sakhi Yojana
●​ Banned from: Dealing in or accessing the ●​ Eligibility : women aged 18-70 years who
securities markets until April 4, 2025. have completed Class 10.
Bajaj Allianz launches innovative motor ●​ The first year's commission for women will
insurance add-ons be Rs 48,000 (bonus excluded).
●​ Organization: Bajaj Allianz General LazyPay Unveils ‘LazyPay EMI’ to Simplify
Insurance High-Value Purchases
●​ Introduce: Two motor insurance add-on ●​ LazyPay has launched ‘LazyPay EMI’ in
covers: partnership with its partner lender, PayU
●​ (1) Eco Assure—Repair Protection Finance.
●​ (2) Named Driver Cover ●​ It is a leading digital financial services
●​ Aim: To enhance value and customisation provider by PayU.
for policyholders ●​ This innovative solution is designed to
●​ The Eco Assure - Repair Protection add-on make high-value online purchases more
is available for private cars up to 12 years affordable and accessible for consumers
old under the Own Damage section of the across India.
policy. ●​ By eliminating the need for a credit card,
●​ The Named Driver Cover is tailored for the feature offers a hassle-free way for
individuals owning one or multiple cars users to finance their purchases.
driven primarily by specific individuals. ●​ Consumers can finance purchases between
13. Times Black ICICI Bank Credit Card Rs 5,000 to Rs 1 lakh with flexible
launched
 December 2024-January 2025 Banking News
repayment options ranging from 3 to 12 ●​ HQ : London
months. ●​ Chairperson : Jose Vinals
●​ Static GK Pro ●​ StanChart names ex-JPMorgan chief PD
●​ PayU Singh as India, South Asia CEO nominee
●​ Netherlands based Payments and Fintech ●​ Stanchart opens second International
Company Banking Centre in Chennai
●​ 2002 ●​ Standard Chartered India CEO Zarin
●​ Anirban Mukherjee (CEO) Daruwala to retire in April 2025
●​ PayU partners with Google Pay to facilitate ●​ Kotak Mahindra Bank to buy Standard
faster online transactions Chartered's Rs 4,100 crore personal loan
●​ PayU and AWS launches accelerator banking business.
programme to help early-stage Indian India’s WPI inflation eases to 1.89% in November
fintech startups ●​ India’s wholesale price index (WPI)-based
●​ PayU and AWS unveil InFINity 2.0 – India’s inflation for November eased to 1.89% on
premier fintech accelerator. an annual basis.
HSBC India, Indian Hotels Company launch India’s ●​ October 2024: 2.36 per cent
first co-branded hospitality credit card ●​ Data by: Ministry of Commerce and
●​ HSBC India and Indian Hotels Company Ltd Industry
(IHCL), in partnership with Visa, have ●​ The annual inflation rate for Primary
introduced the HSBC Taj Credit Card. Articles in the Wholesale Price Index (WPI)
●​ It is India’s first premium co-branded declined to 5.49 per cent in November
hospitality credit card. 2024.
●​ The card targets affluent individuals ●​ Food inflation in food items fell to 8.92 per
seeking luxury travel, lifestyle, and wellness cent in November.
experiences. ●​ Meanwhile, in the manufactured products
●​ 25% discount on room rates at category, inflation rose to 2 per cent, up
participating Taj Palaces, Safaris, and from 1.5 per cent in the previous month.
hotels. ●​ Base year: 2011-12
●​ Other Credit Cards ●​ The Wholesale Price Index (WPI) measures
●​ ICICI Bank and Times Internet launch the average change in the price of
Super-Premium Credit Card commodities traded in the wholesale
●​ Name : Times Black ICICI Bank Credit Card market.
●​ BOBCARD launches TIARA Credit Card for ●​ It covers 3 commodity groups: Primary
women Products, Fuel, and Power, Manufactured
Standard Chartered Bank, India, launches “FEMA Products
Centre of Excellence” ●​ It is compiled and released by the Office of
●​ Standard Chartered Bank, India, has Economic Advisor, Ministry of Commerce
launched a “FEMA (Foreign Exchange and Industry on a monthly basis..
Management Act) Centre of Excellence.” CBIC chairman launches four new initiatives
●​ Aim: To help clients navigate and comply ●​ Launch of: Four new initiatives
with the dynamic regulatory environment ●​ Launched by: Central Board of Indirect
and enhance efficiencies. Taxes and Customs (CBIC) chairman Sanjay
●​ FEMA desk currently has team members Kumar Agarwal
based out of the metros namely Mumbai, ●​ Aim: To enhance taxpayer services
Delhi, Bengaluru and Chennai. ●​ These four citizen-centric initiatives
●​ Standard Chartered Bank include:
●​ 1853 ●​ A revised citizen’s charter,
 December 2024-January 2025 Banking News
●​ A revamped citizen’s corner for complete
tax-related information,
●​ An ease of doing business tab for making
suggestions,
●​ CBIC archives for tax repository.
●​ These initiatives are a testament to CBIC’s
unwavering commitment to simplifying tax
processes and fostering a culture of
transparency and trust.
●​ Static GK Pro
●​ CBIC Centre Earns ₹8,625 Crore via Disinvestment in
●​ Central Board of Indirect Taxes and 2024-25
Customs ●​ The Indian government has collected
●​ Chairman : Sanjay Kumar Agarwal ₹8,625 crore through various minority
●​ 26 January 1944 stake sale disinvestment transactions
●​ HQ : New Delhi during the current financial year 2024-25.
●​ CBIC Chairman inaugurates GST & Customs ●​ No specific target or estimate for FY25.
Pavilion with the theme “Facilitating Trade, ●​
Fostering Economy” at the 43rd India Asian Development Bank approves $788 million
International Trade Fair in New Delhi loan for Amaravati in AP
Public Sector Banks Record Net Profit of Rs 85,520 ●​ Loan to: Andhra Pradesh government
Crore In First Half FY2024-25 ●​ Loan by: Asian Development Bank (ADB
●​ Duration: first half of FY 2024-25 ●​ Loan amount: USD 788.8 million (over Rs
●​ Public Sector Banks (PSBs) reported a net 6,600 crore)
profit of ₹85,520 crore compared to ●​ Reason: For the development of Amaravati
₹67,850 crore during the same period in as a green and smart capital city that offers
the previous year. world-class infrastructure.
●​ Growth%: 26% growth ●​ The loan will be provided in Japanese yen,
●​ Aim: To strengthen governance practices amounting to 121.97 billion yen.
and a bolstered capital base ●​ Static GK Pro
●​ Gross Non-Performing Assets (GNPA): ●​ ADB
Decline to 3.12% in September 2024, down ●​ 19 December 1966
from their peak of 14.58% in March 2018. ●​ 69 countries
●​ Net NPAs (NNPA): Fallen to below 1%, ●​ President : Masato Kanda
showcasing significant progress in ●​ ADB is funded by its member countries.
managing bad loans. ●​ Japan and the United States each holds the
●​ The Kisan Credit Card (KCC) Scheme aims largest proportion of shares at 15.571%.
to provide short-term crop loans to China holds 6.429%, India holds 6.317%,
farmers. Total operative KCC accounts as of and Australia holds 5.773%
September 2024 stood at 7.71 crore with a ●​ Static GK Pro
total outstanding of Rs. 9.88 lakh crore. ●​ Andhra Pradesh
●​ The gross advances of Scheduled ●​ Lakes : Kolleru Lake, Pulicat Lake
Commercial Banks grew from Rs. 8.5 lakh ●​ Folk Dance : Kuchipudi, Vilasini Natyam,
crore to 61 lakh crore during 2004-2014, Andhra Natyam, Burrakatha, Veeranatyam,
which has significantly increased to Rs. 175 Butta bommalu
lakh crore in March 2024. ●​ Ports : Visakhapatnam Port ,
Krishnapatnam Port
 December 2024-January 2025 Banking News
●​ National Parks : Papikonda National Park, ●​ CRISIL; CARE; ICRA; SMREA; Brickwork
Sri Venkateswara National Park Rating; India Rating and Research Pvt. Ltd
●​ Nuclear Power Plant : Kovvada Atomic and Infomerics Valuation and Rating Pvt.
Power Project ●​ Credit Information Companies
●​ Solar Power Plant : Kurnool Ultra Mega ●​ TransUnion CIBIL, Experian, Equifax, and
Solar Park CRIF High Mark
●​ GI Tags : Srikalahasti Kalamkari, Kondapalli ●​ By January 1, 2025, RBI asks ARCs to
Bommalu, Budiiti Bell & Brass Craft, become members of all 4 credit information
Tirupati Laddu companies
●​ Ramsar Site : Kolleru Lake ●​ RBI has decided to increase the frequency
HSBC, IFC launch $1 bn trade finance programme of reporting of credit information by
for emerging markets lenders, including Banks and NBFCs, to
●​ HSBC and the World Bank’s International Credit Information Companies (CICs) from
Finance Corporation (IFC) will jointly monthly intervals to fortnightly basis or
provide funding to trade shorter intervals.
●​ Transactions valued at up to $1 billion UPI achieves 15,547 crore transactions worth Rs
●​ Aim: To fill a gap in financing for emerging 223 lakh crore from January to November
market trade. ●​ The Unified Payments Interface (UPI) has
●​ They would equally share the risk on a achieved 15,547 crore transactions worth
portfolio of trade-related assets held by Rs 223 lakh crore from January to
emerging-market banks in 20 countries in November this year.
Africa, Asia, Latin America, and the Middle ●​ Currently, UPI is operational in seven
East. countries, including key markets like the
●​ Static GK Pro UAE, Singapore, Bhutan, Nepal, Sri Lanka,
●​ HSBC Bank India France, and Mauritius.
●​ Hongkong and Shanghai Banking ●​ UPI is a digital payment system that allows
Corporation Limited, India users to make instant money transfers
●​ HQ : Mumbai between bank accounts.
●​ M.D. & CEO : Hitendra Dave ●​ Launched in 2016 by the National
●​ Pam Kaur : First Female CFO, HSBC Bank Payments Corporation of India (NPCI).
●​ HSBC India launches premium credit card India's gold imports up 331% to record high of
Prive for private banking clients $14.86 billion in Nov
CARE Ratings pares down India's FY25 GDP growth ●​ India's gold imports in November 2024 has
forecast to 6.5% reached a record high of $ 14.86 billion.
●​ CARE Ratings revised downwards its gross ●​ Four-fold increase.
domestic product (GDP) growth forecast for ●​ Reason: Account of festival and wedding
FY25 to 6.5 per cent from 6.8 per cent demands
estimated earlier. ●​ Data by: commerce ministry
●​ The economy is projected to grow by 6.7 ●​ Cumulatively, imports during
per cent in FY26. April-November this fiscal year rose 49% to
●​ The economy hit a seven-quarter low of 5.4 $49 billion as against $32.93 billion in the
per cent in Q2FY25, down from 6.7 per cent same period last fiscal year.
in the preceding quarter. ●​ In the Budget, the government slashed the
●​ Static GK Pro duty from 15% to 6%.
●​ Credit Rating Agencies in India ●​ India's gold imports, which have a bearing
on the country's current account deficit
 December 2024-January 2025 Banking News
(CAD), surged 30% to $ 45.54 billion in CRISIL to acquire 4.08% stake in Online PSB Loans
2023-24. ●​ CRISIL Ltd will acquire a 4.08% stake in
●​ Switzerland is the largest source of gold Online PSB Loans Limited (OPL), a pioneer
imports, with about 40 per cent share, in the digital MSME credit infrastructure
followed by the UAE (over 16 per cent) and ecosystem, for ₹33.25 crore.
South Africa (about 10 per cent). ●​ CRISIL
Sebi plans to introduce rules to streamline ●​ Headquarters: Mumbai, Maharashtra
algo-trading for amateurs ●​ MD & CEO: Amish Mehta
●​ The SEBI has proposed Algorithmic Trading ●​ CFO: Sanjay Chakravarti
(algotrading)through Direct Market Access SBI chief to head panel to recommend fresh list of
(DMA)Facility accounts for NARCL: DFS
●​ Famework for: Retail investors ●​ The Department of Financial Services (DFS)
●​ In 2008, the SEBI had introduced in the Finance Ministry has decided to set
algorithmic trading which provided up a Committee under the Chairmanship of
facilities like faster order execution, SBI Chairman C S Setty.
reduced transaction costs and greater ●​ Reason: To submit a fresh list of accounts
transparency. for transfer to the National Asset
●​ However, algo trading was permitted only Reconstruction Company Limited (NARCL),
for institutional investors. colloquially known as ‘Bad Bank’.
●​ Algos developed by “tech-savvy” retail ●​ Till date, NARCL, which came into the scene
investors will need to be registered with in mid-2021, has acquired 22 accounts with
exchanges. an exposure of ₹95,711 crore.
●​ Exchanges will be responsible for ●​ The Finance Ministry was targeting
supervising algorithmic trading for retail stressed assets transfer of ₹1 lakh crore to
investors, including defining the roles and the National Asset Reconstruction
responsibilities of brokers. Company Ltd (NARCL) by March 2025.
YES BANK launches YES Business empower MSMEs India records 45% surge in FDI to $29.79 billion in
●​ YES BANK has launched YES Business. April-Sept
●​ It is designed to bring banking and related ●​ The Foreign Direct Investment (FDI) has
services for MSMEs under one roof. witnessed tremendous growth of 45% to
●​ This business segment offers a single point over 29 billion dollars in April to
access to a wide range of tools and September 2024.
resources that help MSMEs in managing ●​ According to the Department for Promotion
their day-to-day operations and achieving of Industry and Internal Trade (DPIIT), the
long-term growth. main sectors of the economy that benefited
●​ Central to this launch is the IRIS Biz by YES from the FDI include services, computer
BANK (IRIS Biz). software and hardware, telecom,
●​ It is a digital interface that provides a wide automobile, pharmaceuticals and
range of integrated solutions to both chemicals.
simplify and strengthen business ●​ The FDI inflows lead to higher investments
operations. and job creation in the economy along with
●​ YES Bank better technology.
●​ 2004 ●​ The FDI inflows for the second quarter
●​ HQ : Mumbai from July to September also surged by 43
●​ M.D. & CEO : Prashant Kumar per cent to 13.6 billion dollars during the
●​ Yes Bank partners with Vegapay to provide current financial year compared to the
credit line on UPI same quarter last financial year.
 December 2024-January 2025 Banking News
●​ Singapore was the largest source of FDI for GoM proposes fresh band: 35% GST slab likely for
India in the July-September 2024-25 tobacco, aerated drinks
quarter, contributing 50% of the total FDI ●​ The Group of Ministers (GoM) on Goods
inflows, which amounted to USD 13.6 and Services Tax (GST) rate rationalisation,
billion. led by Deputy Chief Minister of Bihar
Windfall tax on domestic oil, fuel exports scrapped Samrat Chaudhary, recommended a new
●​ The Centre scrapped the windfall tax on slab of 35 per cent for tobacco, tobacco
domestically produced crude oil, and the products and aerated drinks.
export of diesel, petrol, and aviation turbine ●​ At present, such products are taxed at 28
fuel, with immediate effect. per cent.
●​ The road and infrastructure cess (RIC) on ●​ The upcoming GST Council meeting, to be
exporting petrol and diesel too has been chaired by Finance Minister Nirmala
removed. Sitharaman, on December 21, is expected to
●​ Falling global crude oil prices, and the take up this matter.
subsequent shrinking of profits of domestic ●​ The meeting, to be held in Jaisalmer, would
oil producers, has led to the tax being deliberate on a host of other issues that the
withdrawn. GoM has recommended including an
increase in GST
Razorpay partners MHA, I4C for digital payments
security
●​ Fintech firm Razorpay has announced its
support for the Ministry of Home Affairs
(MHA) and the Indian Cyber Crime
Coordination Centre (I4C).
●​ India contributes to 46 per cent of the
world's digital payment volume.
●​ This collaboration aims to empower
businesses and end customers with critical
knowledge to protect themselves while
promoting widespread awareness about
cybersecurity across India.
●​ Recent data from the National Cybercrime
Reporting Portal reveals a sharp increase in
digital fraud incidents across India, with
over 7,000 complaints reported daily
between January and April 2024.
●​ Alarmingly, 85 per cent of these complaints
involved financial fraud, underscoring the
growing vulnerability of online
PMI slips to 56.5 in Nov 2024 transactions.
●​ The seasonally adjusted HSBC India ●​ This is not the first instance where the
Manufacturing Purchasing Managers’ Index government has collaborated with a
(PMI) stood at 56.5, slipping from October’s financial technology company.
57.5 and matching an 11-month low. ●​ Note:
●​ However, the PMI remained well above the ●​ Globally, UK and US sanctions data has been
50-mark threshold, signaling continued incorporated into a newly launched
expansion in the sector.
 December 2024-January 2025 Banking News
AI-driven fraud detection tool being used ●​ Feature: Complimentary insurance cover,
by UK authorities to identify criminals. Travel convenience, Family benefits, and
●​ the UK government revealed that its Single Cost-effective banking
Network Analytics Platform ●​ Federal Bank:
(SNAP)—introduced by the Public Sector ●​ Headquarters: Aluva
Fraud Authority (PSFA) in collaboration ●​ CEO: Manian Kvs
with fintech firm Quantexa—has been ●​ Founder: K. P. Hormis
enhanced with thousands of additional No TDS on cash withdrawal by foreign
sanctions and debarment records. representations from Dec 1
NBFC asset growth may decline to 15 17% in FY25, ●​ Cash withdrawal by foreign representations
FY26: CRISIL will not attract tax Deducted at Source
●​ The growth in assets of non-banking (TDS) from December 1, 2024.
finance companies (NBFCs) in India is ●​ The provisions of section 194N of the said
expected to sharply decline to 15-17 per Act shall not apply to Foreign
cent year-on-year (Y-o-Y) in the current Representations duly approved by the
(FY25) and next financial year (FY26) from Ministry of External Affairs of the
23 per cent in FY24. Government of India which are exempt
●​ The factors that will weigh in growth from paying taxes in India as per the
include recalibration in strategies amid Diplomatic Relations (Vienna Convention)
rising delinquencies, funding and liquidity Act 1972 and the United Nations (Privileges
conditions including slowing of bank and Immunities) Act 1947, including:
funding and tight regulations, according to ●​ Diplomatic Missions,
CRISIL Ratings. ●​ Agencies of the United Nations,
TCS to modernise Bank of Bhutan's digital system ●​ International Organisations,
●​ Tata Consultancy Services (TCS) signed a ●​ Consulates and Offices of Honorary Consuls
partnership with the Bank of Bhutan. ●​ According to section 194N of the Act, TDS
●​ Reason: To modernise the lender’s digital has to be deducted if a sum or aggregate of
system and improve customer service. the sum withdrawn in cash by a person in a
●​ Work: To implement TCS BaNCS Global particular, fiscal year exceeds ₹ 20 lakh (if
Banking Platform to optimise the bank’s no ITR has been filed for all the three
operations and integrate with various previous Assessment Years or AYs), or ₹ 1
public services within the digital ecosystem crore (if ITRs have been filed for all or any
of Bhutan. one of three previous AYs).
●​ Bank of Bhutan, the country's largest Lok Sabha clears Banking Bill, to strengthen
commercial bank, has data of more than governance
400,000 customers who are served through ●​ The government passed an amendment bill
45 branches and a range of financial in the Lok Sabha that brings about changes
products and services. to five banking laws.
●​ TCS has been the bank's technology partner ●​ Reason: To improve bank governance and
since 2016. enhance investor protection
Federal Bank new savings account for seniors with ●​ Changes in Banking Laws, RBI Act
insurance, lounge access ●​ Allow for the nomination of up to four
●​ Name of Account: Esteem Savings Account persons, including provisions for
●​ Launched by: Federal Bank simultaneous and successive nominations
●​ Type: special savings account regarding deposits, articles in safe custody,
●​ Beneficiary: senior citizens (for people and safety lockers
aged 55 and above offers)
 December 2024-January 2025 Banking News
●​ Increasing the threshold for shareholding ●​ Enable auditors to submit audit evidences
of a beneficial interest by an individual, etc., and audit report through web portal for
to Rs 2 crore from Rs 5 lakhs speedy processing
●​ To revise the reporting dates for the ●​ Aim: To cover technical glitch related
submission of statutory reports by banks to aspects in system audit.
the Reserve Bank of India, so as to align SBI Launches Nationwide Drive to Reactivate
them to the last day of the fortnight or Inoperative Accounts
month or quarter ●​ State Bank of India (SBI) has launched a
●​ Increasing the tenure of directors nation-wide drive to raise awareness about
(excluding the chairman and whole-time the importance of inoperative account
director) in co-operative banks to 10 years activation.
from 8 years ●​ A savings or a current account is treated as
●​ Allow a director of a central co-operative inoperative if the customer has no
bank to serve on the board of a state transaction in the account for a period of
co-operative bank over two years.
UPI transactions on RuPay credit card doubled in ●​ Activation of these accounts requires
Apr Oct Re-KYC.
●​ Transactions processed through the Unified ●​ Necessity of regular transactions in the
Payments Interface (UPI) on RuPay credit account and preventing categorization into
cards doubled in the first seven months of in-operative was the key message.
financial year 2025 (FY25) compared to the ●​ The need to drive Re-KYC exercise in letter
same period of FY24, data from the and spirit, to maintain PMJDY accounts in
Ministry of Finance shows. active status and enabling customers to
●​ Till October, over 750 million such conduct transactions seamlessly.
transactions amounting to ₹ 63,825.8 crore ●​ About State Bank of India (SBI)
were processed. ○​ Founded – 1 July 1955
●​ In FY24, UPI RuPay credit card transactions ○​ Headquarters – Mumbai,
were recorded at 362.8 million with a Maharashtra
cumulative value of ₹ 33,439.24 crore. ○​ Chairman – Challa Sreenivasulu
●​ RuPay is India´s own payment network Setty; 27th (replace Dinesh Kumar
system. Khara)
●​ It was launched in 2012 by government Finance Ministry Reports India’s $2 Billion
backed National Payments Corp of India Contribution to BRICS Bank
(NPCI). ●​ India has contributed nearly $2 billion to
●​ While the RuPay credit card was started in the BRICS New Development Bank (NDB).
June 2017. ●​ The contribution was paid in seven
SEBI proposes online monitoring of system audit of instalments from the fiscal year 2015-16 to
stock brokers 2021-22.
●​ SEBI has proposed a framework to help ●​ 20 externally aided projects are currently
stock exchanges to do online monitoring of underway in India, funded by the NDB, with
system audit of stock brokers. a total loan amount of $4,867 million.
●​ This framework will make the auditor more ●​ These projects focus on sectors such as
responsible for the system audit, ensure transportation, water conservation, food
that - management, and connectivity in rural
●​ The auditor is physically visiting stock areas.
broker’s premises to check IT systems Microfinance Industry Network Tightens Loan
●​ Not outsourcing the audit activity Underwriting Standards
 December 2024-January 2025 Banking News
●​ The Microfinance Industry Network ●​ Loan Amounts and Target Audience:Loans
(MFIN), an RBI-recognized self-regulatory ranging from ₹50,000 to ₹3 lakh will be
organization (SRO), has further tightened provided to identified and eligible
the loan underwriting standards due to customers.
rising stress in the microloan sector. ●​ The focus is on members of Joint Liability
●​ Microfinance clients can now take loans Groups (JLGs), primarily involved in
from only three MFIs (Microfinance agriculture, allied activities, and other
Institutions), reduced from the earlier limit income-generating ventures.
of four. World Bank approves $188 mn loan to boost
●​ The total indebtedness of a microfinance growth in Maharashtra's districts
borrower is capped at ₹2 lakh, which ●​ The World Bank has approved a
includes both microfinance loans and $188.28-million loan to stimulate economic
unsecured retail loans. growth in Maharashtra, especially in the
●​ MFIs cannot lend to borrowers who are lagging districts.
NPAs (non-performing assets) with ●​ Aim: To strengthen institutional capabilities
overdue loans greater than ₹3,000 and a in districts for enabling growth operation
default period of over 90 days. will support district planning and growth
●​ MFIN has mandated that MFI loan interest strategies
rates must be reviewed by the board of ●​ Investments under the operation will equip
member organisations to ensure that any districts with the necessary data, funds, and
efficiency gains are passed on to the clients. expertise to maximize the value of public
PhonePe Ends Partnership with Juspay, Opts for money employed for driving growth and
Direct Integration with Merchants job creation.
●​ PhonePe has ended its partnership with ●​ Loan from the International Bank for
Juspay, a payment orchestration platform, Reconstruction and Development (IBRD)
and decided to integrate with merchants has a final maturity of 15 years, including a
directly. grace period of 5 years
●​ RBI Payment Aggregator Licenses: Airtel awards 'multi-year, multi-billion' extension
●​ BharatPe received the RBI payment deal to Ericsson
aggregator license in January 2023. ●​ Ericsson (Sweden) has won a multi-year,
●​ Google Pay received the license in multi-billion USD extension deal from
December 2023. Bharti Airtel (India) for 4G and 5G RAN
●​ Amazon Pay received the license in 2024. products and solutions.
●​ RBI cancelled Paytm’s license in November ●​ Ericsson will deploy centralized RAN and
2022, but Paytm plans to re-apply. Open RAN-ready solutions for network
●​ PhonePe received the payment aggregator transformation which will help customers
license in March 2023. with wider coverage and the enhanced
Muthoot Microfin Begins Co-Lending Loan capacity on the network.
Disbursals in Partnership with State Bank of India ●​ Ericsson has been a trusted connectivity
●​ Muthoot Microfin, a Kochi-based partner for Airtel for over 25 years,
microfinance institution, has started loan supporting every generation of mobile
disbursements under its co-lending communications.
partnership with the State Bank of India India's external debt rises by $31 bn to $647 bn in
(SBI). 2023: World Bank report
●​ Loan Limit:SBI has sanctioned a total limit ●​ Report by: World Bank
of ₹500 crore for this partnership, to be ●​ Report title: World Bank International Debt
disbursed in tranches of ₹100 crore. Report
 December 2024-January 2025 Banking News
●​ Highlights: ●​ Services sector grew by 7.1%, industry
●​ India's total external debt has increased by sector grew by 3.9%.
$ 31 billion to $ 646.79 billion in 2023. ●​ Expected recovery in H2 FY25 with 6.6%
●​ Interest payment increased from $ 15.08 growth.
billion in 2022 to $ 22.54 billion in 2023. ●​ Driven by government spending, rural
●​ While the long-term debt stocks have risen demand, and easing financial conditions.
7% to $ 498 billion in 2023, short-term SEBI Fines Reliance Securities ₹9 Lakh for Rule
debt stocks declined marginally to $ 126.32 Violations
billion in 2023. ●​ SEBI has fined Reliance Securities ₹9 lakh
●​ External debt stock as percentage of for failing to comply with stock broker
exports was 80%, while debt servicing was regulations during an inspection from April
10% of exports in 2023. 2022 to December 2023.
●​ Net debt inflows during the year worked ●​ Violations included poor record-keeping,
out to be $ 33.42 billion, while the net unauthorized use of trading terminals, and
equity inflows was higher at $ 46.94 billion inadequate office segregation.
in 2023. NSIC Pays Record Dividend of Rs. 37.97 Crore for FY
PhonePe introduces health insurance for Dengue 2023-24
and Malaria ●​ The National Small Industries Corporation
●​ PhonePe has introduced a new health (NSIC) paid its highest-ever dividend of Rs
insurance plan that offers continuous 37.97 crore to the Government of India for
coverage for dengue, malaria, and other FY 2023-24, with revenue surging to Rs.
vector-borne diseases. 3,273 crore (18.16% growth) and Profit
●​ Starting price: Rs 59 per year (Premium) After Tax reaching Rs 126.56 crore (14.55%
●​ The plan provides up to Rs 1 lakh in growth).
coverage for medical expenses associated ●​ Chairman-cum-Managing Director of NSIC:
with more than 10 diseases. Dr. Subhransu Sekhar Acharya
●​ Covered illnesses include malaria, dengue, ●​ NSIC is a Mini Ratna Enterprise under the
chikungunya, and swine flu, with benefits Ministry of MSME.
for hospitalization, diagnostics, and ICU Bank of India to Issue Additional Rs 5,000 Crore in
stays. Infrastructure Bonds
●​ Focus on Tier 2 and Tier 3 cities where ●​ Bank of India (BoI) plans to raise an
access to affordable health insurance has additional Rs 5,000 crore through the
been limited. issuance of infrastructure bonds.
●​ CEO of PhonePe Insurance Broking ●​ The bond issuance is in line with the
Services: Vishal Gupta current soft interest rate trends.
Morgan Stanley Cuts India’s FY25 GDP Growth to ●​ In November 2024, BoI raised Rs 5,000
6.3% crore through a 10-year infrastructure
●​ Morgan Stanley has revised India’s GDP bond with a coupon rate of 7.41%.
growth projection for FY25 down to 6.3%, ●​ Earlier in July 2024, the bank raised
from its previous estimate of 6.7%. another Rs 5,000 crore through a similar
●​ This downward revision comes after India’s bond offering, but at a slightly higher
GDP growth slowed to 5.4% in the coupon rate of 7.54%.
July-September 2024 quarter, marking its ●​ In total, BoI has raised Rs 10,000 crore in
lowest level since March 2023. two tranches of infrastructure bonds.
●​ Note: Sa-Dhan and Indian Institute of Banking & Finance
●​ Private consumption grew by 6%, capex Collaborate to Launch Certification Course
grew by 5.4%.
 December 2024-January 2025 Banking News
●​ Sa-Dhan has partnered with the Indian personalized investment options,
Institute of Banking & Finance (IIBF) to healthcare discounts, and more.
launch a new certification course for ●​ ARISE Debit Card: Higher transaction limits
microfinance professionals. with Rs 5 Lakh on POS and Rs 1 Lakh at
●​ The course aims to train new employees of ATMs.
microfinance institutions and offer career ●​ According to the recent data from the
opportunities for those interested in joining National Statistical Office (NSO), women
the microfinance industry. hold only 20.8% of India’s total bank
●​ Sa-Dhan is a Reserve Bank of India (RBI)- deposits, despite constituting 36.4% of all
recognised Self-Regulatory Organization bank account holders.
(SRO) for microfinance and impact finance ●​ In metropolitan areas, women’s deposits
institutions. are only 16.5%, compared to 30% in rural
●​ Indian Institute of Banking & Finance : areas.
●​ Headquarters : Mumbai, Maharashtra GST collection rises by 8.5% to over Rs 1.82 lakh
●​ CEO : Shri. Biswa Ketan Das crore in November
SBI Mutual Fund Unveils SBI Quant Fund ●​ The total gross Goods and Services Tax
●​ SBI Mutual Fund has launched the SBI (GST) collections grew 8.5% to over 1.82
Quant Fund, an open-ended equity scheme lakh crore rupees in November 2024 as
designed around a quant-based investing compared to the same month last year.
approach. ●​ The total gross GST revenue in November
●​ The scheme aims to generate long-term last year was 1.68 lakh crore rupees.
capital appreciation through equity and ●​ Central GST: 34 thousand 141 crore rupees
equity-related instruments selected using ●​ State GST: 3 thousand 47 crore rupees
an in-house quant model. ●​ Integrated IGST: 91 thousand 828 crore
●​ The SBI Quant Fund will predominantly rupees
allocate: ●​ Cess: 13 thousand 253 crores
●​ 80%-100% to equity and equity-related ●​ In October 2024, Gross GST collection had
instruments selected through the quant grown 9 percent to over 1.87 lakh crore
model. rupees, the second-highest ever, mainly due
●​ 0%-20% to other equity instruments and to rise in domestic sales and improved
debt instruments. compliance.
●​ 0%-10% to REITs and InvITs, in line with UPI sets new record in October with 16.58 billion
SEBI limits. transactions
●​ Additionally, the scheme may invest up to ●​ The Unified Payments Interface (UPI)
20% in mutual fund units and 35% in achieved a milestone by processing nearly
overseas securities, including ADRs, GDRs, 16.58 billion financial transactions in a
ETFs, and foreign equity. single month in October 2024.
Axis Bank's new savings account for women ●​ UPI processed around 23.49 lakh crore
●​ Axis Bank has launched the ARISE Women’s rupees across 16.58 billion financial
Savings Account. transactions in October 2024.
●​ It is a specialized solution designed to cater ●​ This marks 45% year-on-year growth as
to the financial needs of women. compared to October last year.
●​ The account was introduced by Arundhati ●​ The UPI was launched in 2016 by the
Bhattacharya, Chairperson of Salesforce National Payments Corporation of India.
India. ●​ UPI being operational in seven countries -
●​ It offers a range of benefits, including UAE, Singapore, Bhutan, Nepal, Sri Lanka,
access to women financial experts, France, and Mauritius.
 December 2024-January 2025 Banking News
●​ NPCI Chairman: Ajay Kumar Choudhary ●​ India’s Approach : “remove, target, and
●​ NPCI CEO: Dilip Asbe shift”
Bajaj Fin exits co-branded credit card biz, ends ●​ Reduction in Subsidies since 2010 : 85%
tieup with DBS India, RBL ●​ Impact on Subsidies : Reduction in
●​ Bajaj Finance has decided to exit the subsidies from $25 billion in 2013 to $3.5
co-branded credit card space. billion in 2023.
●​ It has ended its eight-year tie-up with RBL ●​
Bank and DBS Bank India ●​ UPI and Rupay set to expand in 10 more
●​ The move comes on the back of a Reserve countries : NPCI
Bank of India direction that restricted the ●​ UPI Countries : France, UAE, Singapore,
co-brand partners’ role to only sourcing Bhutan, Sri Lanka, Mauritius, and Nepal.
cards, and providing access to the ●​ In Process : Namibia, Trinidad and Tobago,
cardholder for the goods/services offered. and Peru.
●​ Collection of dues, an activity, which Bajaj ●​ UPI’s daily transactions crossed 500 million
Finance has built capabilities over the for the first time in September 2024.
years, was not allowed by a co-brand ●​ According to the ACI Worldwide Report
partner. 2024, India now accounts for around 49%
Groww Mutual Fund Launches Multicap Fund: NFO of global real-time payment transactions as
Monitor of 2023.
●​ Name of Fund : Groww Multicap Fund, ●​ First European Country with UPI : France
●​ open-ended equity scheme ●​ First Latin American Country with UPI :
●​ NFO : New Fund Offer Peru
●​ Exit load: 1% for redemptions within a OECD Raises India’s FY25 Growth Forecast to 6.8%
year, and nil after one year. ●​ The Organisation for Economic
●​ Minimum investment: ₹100, and in Co-operation and Development (OECD) has
multiples of ₹1 thereafter. upgraded India’s GDP growth forecast for
●​ Groww Mutual Fund FY25 to 6.8%, up from 6.7%.
●​ Established : 2017 ●​ Reason: Robust public infrastructure
●​ Headquarters : Bangalore, Karnataka spending, strong private consumption, and
●​ CEO : Varun Gupta recovery in agricultural output.
Axis Bank’s Asset Book at GIFT City IFSC Unit ●​ This growth momentum is expected to be
Doubles to $4 Billion Since 2019 sustained through FY25 and FY26, with
●​ Name of Bank : Axis Bank investment and rural income growth being
●​ Branch : IFSC Banking Unit (IBU) central to the economy’s expansion.
●​ Location : Gujarat International Finance Irdai issues show cause notice to Star Health for
Tec-City (GIFT City) violating norms
●​ Asset Book : $2 billion in 2019 to $4 billion. ●​ The Insurance Regulatory and
●​ Axis Bank Development Authority of India (Irdai) has
●​ Established : 3 December 1993 issued a show cause notice to Star Health
●​ Headquarters: Mumbai, Maharashtra, India and Allied Insurance on December 4, 2024.
●​ MD & CEO: Amitabh Chaudhry ●​ Reason: For violation of norms based on the
●​ Tagline : Badhti Ka Naam Zindagi general inspection conducted by the
ADB report on India adopting policies that reduce regulator for the period from January 31,
fossil fuel subsidies 2022, to February 11, 2022.
●​ Focus : Create fiscal space for renewable ●​ The notice has been issued for violation of
energy initiatives and electric vehicles. the Irdai (Health Insurance) Regulations,
2016, Irdai (TPA – Health Service)
 December 2024-January 2025 Banking News
Regulations, 2016, and Irdai (Protection of ●​ Term deposits also outpaced the growth in
Policyholders’ Interest) Regulations, 2017, CASA deposits, and their share in total
among others. deposits rose to 61.4 per cent in September
Collateral-free agriculture loans limit upped from 2024 from 59.8 per cent a year ago.
₹1.6 lakh to ₹2 lakh ●​ Lower yielding savings account outstanding
●​ Reserve Bank of India (RBI) Governor deposits, meanwhile, remained almost flat,
Shaktikanta Das has decided to increase the at ₹32,485 each account in September 2024
limit for collateral free agricultural loans from a year ago period.
from Rs 1.6 lakh per borrower to Rs 2 lakh ●​ Region wise credit-deposit (CD) ratio
per borrower. indicates that except south and western
●​ At present, banks are required to extend region, CD ratio of all other regions is
collateral-free agriculture loans up to Rs 1.6 below the national level of 79.9%.
lakh per borrower. ●​ Interestingly, some states like Andhra
●​ This limit was enhanced from Rs 1 lakh, set Pradesh, Telangana, Tamil Nadu and
in the year 2010 to Rs 1.6 lakh in the year Maharashtra have crossed 100 percent CD
2019. ratio.
RuPay credit card UPI transactions double in first UPI transactions see 6.6% decline in November
seven months of FY25 ●​ UPI transactions in November 2024 stood
●​ According to the data from the Ministry of at 15.48 billion.
Finance, transactions processed through ●​ This marked a 38% year-on-year growth,
the Unified Payments Interface (UPI) on according to the National Payments
RuPay credit cards doubled in the first Corporation of India (NPCI).
seven months of financial year 2025 (FY25) ●​ The total transaction value was ₹21.55 lakh
compared to the same period of FY24. crore, a 24% increase compared to
●​ Till October, over 750 million such November 2023.
transactions amounting to Rs 63,825.8 ●​ Daily transactions averaged 516 million,
crore were processed. with a daily value of ₹71,840 crore.
●​ In FY24, UPI RuPay credit card transactions ●​ However, these figures were slightly lower
were recorded at 362.8 million with a than October’s record.
cumulative value of Rs 33,439.24 crore. ●​ In October, UPI transactions peaked at
●​ RuPay is India’s own payment network 16.58 billion, worth ₹23.5 lakh crore.
system. ●​ This remains the highest since UPI’s launch
●​ It was launched in 2012 by in April 2016.
government-backed National Payments
Corp of India (NPCI).
●​ While the RuPay credit card was started in
June 2017.
Customers park more funds in term deposits: SBI
report
●​ According to a research report released by
SBI, the outstanding balance per deposit
account in India has risen by ₹7,014 a year
to ₹91,472 in September 2024.
●​ Reason: As customers invested more funds
in higher yielding term deposits than
savings deposit accounts.
 December 2024-January 2025 Banking News
BOBCARD unveils a women-centric credit card
●​ Name of Credit Card: TIARA Credit Card
●​ Launched by: BOBCARD LIMITED
●​ Type: Premium credit card
●​ Designed exclusively for women
●​ Complimentary vouchers and memberships
worth up to Rs 31,000 from leading brands.
●​ Joining and annual fee: Rs 2,499 + GST
●​ Joining Fee reversal on spending Rs 25,000
within the first 60 days.
●​ Annual Fee waiver for spending Rs
2,50,000 in a year.
●​ Static GK Pro
●​ BOB CARD
●​ Ravindra Rai, MD & CEO of BOBCARD
LIMITED.
●​ BOBCARD LIMITED, formerly known as
BOB Financial Solutions Limited, was
SEBI: SDP Recognition for Digital Platforms is established in the year 1994.
Voluntary ●​ It is a non-banking Financial Company,
●​ SEBI clarified that digital platforms are not wholly owned by Bank of Baroda
obligated to register as Specified Digital ●​ BOB
Platforms While SDP recognition simplifies ●​ 1908
compliance for regulated entities (REs), ●​ HQ : Vadodara, Gujarat
platforms can opt out of it. ●​ M.D. & CEO : Debadatta Chand
●​ Partnerships via non-SDP platforms require Max Life rebrands to Axis Max Life Insurance after
REs to ensure compliance with SEBI’s regulatory approval
regulations. ●​ Context: Change in its corporate name
●​ SEBI introduced the SDP framework as part ●​ Old Name: Max Life Insurance
of its compliance strategy to prevent ●​ New Name: Axis Max Life Insurance
misuse of digital platforms in areas such as ●​ Approval: Received the corporate and
unauthorized investment advice and stock regulatory approval
market manipulation. ●​ Axis Bank’s board of directors approved the
India’s Forex Reserves rise by 1.51 billion dollars to proposal to acquire Max Life shares, raising
658.09 billion dollars Axis entities’ total holding in the insurance
●​ India’s foreign exchange (FOREX) reserves company to 19.99 per cent from 19.02 per
increased by 1.51 billion dollars to 658.09 cent
billion dollars in the week ending ●​ Following this stake acquisition by Axis
November 29. Bank, the stake of MFSL in Max Life reduced
●​ This marks the first rise in nine weeks, to 81 per cent from 87 per cent earlier.
recovering from a five-month low. ●​ Static GK Pro
●​ The latest rise is mainly due to a 2.06 ●​ Max Life Now Axis Max Life
billion dollars increase in foreign currency ●​ Life Insurance Company
assets, which now stand at 568.85 billion ●​ Established : 2001
dollars. ●​ HQ : New Delhi
●​ Special Drawing Rights (SDRs) increased by ●​ Prashant Tripathy (Managing Director and
22 million dollars to 18.01 billion dollars. CEO)
 December 2024-January 2025 Banking News
India’s Retail Inflation Eases to 5.48% in November ●​ Since 2015, the government implemented a
●​ Index: CPI (retail inflation) comprehensive 4Rs (recognition,
●​ November 2024: 5.48% (Eased) recapitalisation, resolution, and reform)
●​ October 2024: 6.21% (14-month high) strategy of recognising NPAs transparently
●​ Food Inflation: Declined from 10.87% in to address the challenges faced by PSBs.
October to 9.04% in November 2024 ●​ Capital adequacy ratio of PSBs:
●​ CPI Weightage: Food accounts for 40% of ●​ September 2024: 15.43 per cent
the Consumer Price Index (CPI). ●​ March 2015: 11.45 per cent
●​ Vegetable Prices: Primary driver for the ●​ Status: Improve
easing of inflation in November 2024. ●​ During 2023-24, PSBs recorded the
●​ Static Gk Pro highest-ever aggregate net profit of Rs 1.41
●​ economic measure that tracks the average lakh crore against Rs 1.05 lakh crore in
change in the prices paid by consumers for 2022-23.
a basket of goods and services over time. ●​ Mudra scheme: 68% of beneficiaries are
●​ CPI in India is compiled by the National women
Statistical Office (NSO) and is categorized ●​ PM-SVANidhi scheme: 44% of beneficiaries
into CPI for urban and rural areas. are women
●​ Base Year For CPI is 2012. ●​ The number of bank branches has gone up
India’s FDI journey reaches $1 trillion milestone from 1,17,990 in March 2014 to 1,60,501 in
●​ India surpassed $1 trillion in FDI inflows September 2024.
since April 2000, with $709.84 billion ●​ Of 1,60,501 branches, 1,00,686 are in rural
received between 2014-2024. and semi-urban (RUSU) areas
●​ First half of FY 2024-25 saw a 26% ●​ KCC Accounts as on September 2024 stood
increase to $42.1 billion. at 7.71 crore with total outstanding of Rs.
●​ India improved to 40th in the World 9.88 lakh crore.
Competitiveness Index 2024 and ranked Sebi issues warning letter to HDFC Bank for
3rd globally for greenfield investments in regulatory non-compliance
World Investment Report 2023. ●​ Warning letter to: HDFC Bank
●​ Data released by Department for Promotion ●​ Letter by: SEBI
of Industry and Internal Trade (DPIIT) ●​ Reason: non-compliance with multiple
●​ Top Investors : Mauritius and Singapore regulations
●​ Mauritius emerged as the top source of FDI, ●​ 1. Sebi (Merchant Bankers) Regulations,
contributing 25% of the total inflows, 1992
followed closely by Singapore at 24%. ●​ 2. Sebi (Issue of Capital and Disclosure
●​ The United States ranked third with 10% Requirements) Regulations, 2018
●​ Netherlands (7%), Japan (6%), and the ●​ 3. Sebi (Prohibition of Insider Trading)
United Kingdom (5%) Regulations, 2015
●​ The services sector led the inflows ●​ HDFC Bank:
GNPA of PSBs declines to 3.12% in Sep from ●​ HQ: Mumbai
14.58% in March 2018 ●​ CEO: Sashidhar Jagdishan
●​ Data by: Ministry of Finance ●​ SEBI has recently proposed to widen the
●​ Gross non-performing assets (NPAs) of UPSI.
public sector banks (PSBs) ●​ UPSI : Unpublished Price Sensitive
●​ September 2024: 3.12% Information.
●​ March 2018 (Comparing year): 14.98 per ●​ It is a critical information related to a
cent company's securities that has not yet been
●​ Status: Decline
 December 2024-January 2025 Banking News
made public and could significantly affect ●​ Organization: Securities and Exchange
its share price if disclosed. Board of India (Sebi)
●​ Additions ●​ Proposal:
●​ Fundraising Decisions ●​ Leveraging the DigiLocker platform
●​ Corporate Insolvency and Loan ●​ Depositories and mutual funds be required
Restructuring to provide demat and mutual fund (MF)
●​ Management and Control Agreements holding statements, respectively, in
●​ Fraud and Forensic Audits DigiLocker.
●​ Regulatory and Legal Actions: ●​ Automatic updating of a DigiLocker user's
●​ Business Operations and Transactions status upon their demise, using data from
●​ Licenses and Guarantees the Registrar General of India
●​ The SEBI governs UPSI under the ●​ An automatic intimation to the DigiLocker
Prohibition of Insider Trading Regulations, nominee would be sent via SMS and email.
2015 (PIT Regulations). ●​ The nominees could then access the digital
ADB approves $500 million loan to boost India’s information in the account of the deceased
sustainable infrastructure user or investor and initiate the process of
●​ Loan Amount: $500 million loan transmission of the financial asset.
●​ Loan to: India ●​ Reason: To streamline the process of
●​ Loan by: ADB claiming unclaimed assets of deceased
●​ Reason: To support India’s economic investors.
growth by promoting environmentally Gross NPAs of public sector banks at Rs 3.16 trn,
sustainable infrastructure. 3.1% of outstanding loans
●​ The ADB loan, with a sovereign guarantee, ●​ Data shared in Rajya Sabha
to India Infrastructure Finance Company ●​ Data as of September 30, 2024
Limited (IIFCL) will advance sustainable ●​ Data shared by: Minister of State for
infrastructure development. Finance Pankaj Chaudhary
ICICI Bank Partners with Commonwealth Bank of ●​ Gross NPA of PSBs: Rs 3.16 trillion (3.09%
Australia of the outstanding loans)
●​ ICICI Bank has signed an MoU with the ●​ Gross NPA of Private Bank: Rs 1,34,339
Commonwealth Bank of Australia (CBA) crore (1.86% of the outstanding loans)
●​ Aim: To enhance support for customers ●​ 580 unique borrowers (excluding
engaged in the Australia-India business individuals and overseas borrowers), each
corridor. having loan outstanding of more than Rs 50
●​ ICICI Bank Chairperson: Pradeep Kumar crore, were classified as wilful defaulters by
Sinha Scheduled Commercial Banks.
Coca-Cola Sells 40% Stake in India Bottling ●​ Aggregate claim of creditors, including
Business to Jubilant Bhartia Group banks was Rs 11.45 trillion, whereas the
●​ Coca-Cola has sold a 40% stake in aggregate liquidation value was Rs 2.21
Hindustan Coca-Cola Holdings (HCCH) to trillion.
Jubilant Bhartia Group. Sebi revises guidelines for real-time performance
●​ Deal Value: ₹12,500 crore monitoring of MIIs
●​ Value of the company: ₹31,250 crore ●​ Organization: SEBI
●​ Advisors for the Deal:​ Morgan Stanley ●​ New guidelines for: Stock exchanges,
(Jubilant Bhartia Group), Rothschild & Co Clearing corporations and depositories
(Coca-Cola). ●​ Reason: To ensure robust capacity planning
Sebi aims to ease the process on unclaimed assets and real-time performance monitoring of
through DigiLocker their critical IT systems.
 December 2024-January 2025 Banking News
●​ New Guidelines: ●​ Aim: To ready the market ecosystem to
●​ Market infrastructure institutions (MIIs) speed up the settlement cycle, which
have been directed to develop future-ready currently stands at T+1.
frameworks to estimate capacity needs ●​ Effective on: January 31, 2025
based on trends, historical data, transaction ●​ The same-day settlement cycle will
growth, and business changes. continue to be optional.
●​ They have been asked to submit ●​ Present status: Only 25 stocks are available
methodology details to Sebi within three for the T+0 settlement.
months after approval from the Standing ●​ Beta version launched in March 2024
Committee on Technology (SCOT) and the ●​ The market capitalisation will be computed
Governing Board. as of December 31.
●​ MIIs have been asked to ensure adequate ●​ Sebi announced a block deal window from
system capacity in place to handle high 8:45 am to 9:00 am for the T+0 settlement
volumes to ensure high level of service cycle, in addition to the existing block deal
availability. windows for the T+1 settlement.
●​ The installed capacity should be at least 1.5 Sebi proposes simplification of NRI trading in
times of the projected peak load. derivatives
●​ The projected peak load should be based on ●​ Proposal: Simplification of the process for
trends from the past 180 days and other non-resident Indians (NRIs) to trade in
relevant factors. exchange-traded derivatives contracts.
●​ They have been asked to conduct quarterly ●​ Proposed by: Securities and Exchange
stress tests to assess the impact on system Board of India (Sebi)
performance under heavy loads. ●​ Current status:
●​ They are required to implement automated ●​ NRIs are required to obtain a custodial
systems to monitor and generate alerts for participant (CP) code from the clearing
real-time performance issues, with defined corporation (CC) through a clearing
thresholds to ensure early detection and member (CM).
resolution. ●​ Further, they are allowed to deal with one
●​ Sebi has asked stock exchanges and CM at a time.
clearing corporations to take immediate ●​ However, with the introduction of the
action if IT component utilization exceeds permanent account number (PAN) as a
75 per cent of installed capacity. unique identifier in the securities market,
●​ Depositories must act if utilization exceeds Sebi proposes to dispense with the
75 per cent for 15 consecutive days. requirement for a CP code.
●​ They have been directed to establish a ●​ Proposed changes:
capacity planning and real-time ●​ NRIs can use their PAN to monitor position
performance monitoring policy, approved limits, and can deal with multiple CMs.
by SCOT and the Sebi, to ensure smooth ●​ This is expected to bring ease of investment
operations and timely resource upgrades. for NRIs and simplify the procedure for
Sebi widens scope of T+0 settlement to top 500 monitoring NRI position limits.
stocks from Jan 31 Retail Inflation Eases for Farm and Rural Workers
●​ Organization: Securities and Exchange in October 2024
Board of India (Sebi) ●​ Index: Consumer Price Index for
●​ Top 500 stocks will be eligible for the Agricultural Labourers (CPI-AL)
same-day settlement cycle (T+0) in a ●​ Increased by: 11 points reaching 1,315
phased manner.
 December 2024-January 2025 Banking News
●​ Year-on-Year Inflation Trends: 5.96% in ●​ The University will have one College of
October 2024, compared to 7.08% in Horticulture for Graduate and
October 2023. Post-Graduate studies and five schools
●​ Index: Consumer Price Index Rural covering 10 horticulture disciplines.
Labourers (CPI-RL) ●​ It will work towards crop diversification
●​ Increased by: 10 points, reaching 1,326 and world class research for development
●​ Year-on-Year Inflation Trends: 6.00% in of horticulture technologies.
October 2024, compared to 6.92% in HSBC India launches credit card for global private
October 2023. banking
●​ September 2024 Inflation Rates: CPI-AL at ●​ HSBC India has launched the HSBC Privé.
6.36% and CPI-RL at 6.39%. ●​ It is a premium credit card.
India’s CPI Inflation Drops to 5.5% in November ●​ Designed exclusively for its high-net-worth
●​ Index: Consumer Price Index (CPI) and ultra-high-net-worth clients
●​ November 2024: 5.53% ●​ The card was developed in partnership
●​ October 2024: 6.21% with Mastercard.
●​ Reason: Fall in vegetable prices, after a ●​ Note:
sharp rise in October ●​ Recently, Axis Bank introduced its
●​ This moderation, along with stabilizing ultra-premium Primus credit card, which
edible oil prices, offers relief to households. boasts a hefty joining fee of Rs 5 lakh.
●​ Core inflation remains steady at 3.7%. ●​ HSBC India CEO: Hitendra Dave
Prime Minister to launch ‘Bima Sakhi Yojana’ ●​ Headquarters: Mumbai
●​ Launch of: ‘Bima Sakhi Yojana ●​ HSBC Bank has named Indian-origin Pam
●​ Launch in: Panipat, Haryana Kaur as its new Chief Financial Officer
●​ Launch by: PM Narendra Modi (CFO)
●​ Aim: To women empowerment and ●​ IIT Bombay Partners With HSBC India To
financial inclusion Advance Green Hydrogen Solutions
●​ Initiative of: Life Insurance Corporation of ●​ Maruti Suzuki ties up with HSBC India for
India (LIC) inventory funding
●​ Age group: 18-70 years ●​ HSBC launches ‘Helping hands mela’, an
●​ Eligibility: Class X pass expo of products made by NGOs
●​ They will receive specialized training and a BharatPe UPI Launches ‘Shield’
stipend for the first three years to promote ●​ Name of Plan: Shield
financial literacy and insurance awareness. ●​ Launch by: BharatPe App
●​ After training, they can serve as LIC agents ●​ Aim: Safeguarding digital UPI transactions
and the graduate Bima Sakhis would have ●​ It is designed to provide users with a secure
the opportunity to qualify for being and worry-free payment experience.
considered for Development Officer roles in ●​ BharatPe Shield offers robust coverage and
LIC. seamless support against digital fraud.
●​ Prime Minister will also distribute ●​ Users making their first UPI transaction
appointment Certificates to prospective with the BharatPe App will receive 30 days
Bima Sakhis. of complementary fraud protection for
●​ He will also lay the foundation stone of the amounts up to ₹5,000.
Main campus of Maharana Pratap ●​ Following this free period, users can
Horticultural University, Karnal. continue the service at an affordable fee of
●​ Spread over: 495 acres ₹19 per month.
●​ Cost of: over Rs 700 crore
 December 2024-January 2025 Banking News
●​ It also offers a pre-reporting period, sustainability-linked-loan to SMFG India
enabling claims for losses incurred up to 10 Credit (SMICC).
days prior to reporting. ●​ The loan was facilitated via the Bank’s Gift
●​ Bharatpe CEO: Nalin Negi City Branch.
UPI enabled significant expansion of credit among ●​ The loan will help to expand SMICC’s
underserved borrowers: Study portfolio and enable channeling funds
●​ Study by: Open Banking and Digital toward MSMEs and also empower women
Payments: Implications for Credit Access entrepreneurs in underserved segments
●​ Highlights: across India.
●​ UPI has enabled nearly three hundred ●​ Deutsche Bank
million individuals and around fifty million ●​ German multinational investment bank
merchants to perform seamless digital ●​ Established : 10 March 1870
transactions. ●​ HQ : Frankfurt, Germany
●​ 75% percent of all digital retail payments in ●​ SMFG India Credit
India were done through UPI by October ●​ SMFG India Credit Co. Ltd., also known as
2023. SMICC (formerly Fullerton India Credit Co.
●​ It has also enabled underserved groups, Ltd
including subprime and new-to-credit ●​ Indian non-banking financial company
borrowers, to access formal credit for the headquartered in Mumbai, India.
first time. ●​ Launched in 2007
●​ The affordability of digital technology ●​ M.D. CEO : Shantanu Mitra
played a critical role, enabling widespread ●​ Part of Sumitomo Mitsui Banking
UPI adoption in rural and urban areas alike Corporation
●​ Despite the credit surge, default rates did Paytm to add Rs 2,364 crore to its kitty through
not rise, showing that UPI-enabled digital sale of PayPay shares
transaction data helped lenders expand ●​ Paytm will sell its 5.4% shareholding in
responsibly. Japanese payment company PayPay for Rs
ADB approves $350 mn loan to enhance India's 2,364 crore, or nearly $280 million, to
logistics and exports SoftBank.
●​ Loan from: Asian Development Bank ●​ The shares will be transferred to SoftBank
●​ Loan Amount: $350 million Vision Fund 2.
●​ Loan to: India ●​ Through the deal, PayPay will be valued at
●​ Reason: To bolster India's logistics sector 1.06 trillion Japanese yen ($7 billion
●​ This funding supports government approximately).
initiatives like the PM Gati Shakti plan and ●​ Softbank Group
National Logistics Policy, aiming to ●​ Japanse Company
modernize infrastructure, streamline ●​ HQ : Tokyo, Japan
processes, and integrate digital ●​ Chairman and CEO : Masayoshi Son
technologies. ●​ Founded : September 1981
●​ These improvements are expected to boost SBI Card Surpasses 20 Million Credit Cards
manufacturing competitiveness, create Milestone
jobs, and promote economic growth. ●​ SBI Card has surpassed 20 million credit
Deutsche Bank AG, India, provides € 91 million cards in circulation, a significant
sustainability-linked-loan to SMFG India Credit achievement since its 1998 inception.
●​ Deutsche Bank AG, India has provided a ●​ With a 25% CAGR in cards and 26% in
€91 million (about ₹814 crore) spending from FY19 to FY24, it remains the
 December 2024-January 2025 Banking News
second-largest issuer in India, following shareholding of Shiprocket Private Limited
HDFC Bank. by MUFG Bank, Ltd.
●​ Total number of credit cards in circulation ●​ The Proposed Combination envisages
in India rose by 12.85% YoY to 106.88 acquisition of certain shareholding of
million. Shiprocket Private Limited (Target) by
●​ MD & CEO of SBI Card: Abhijit Chakravorty MUFG Bank, Ltd. (Acquirer).
SBI looks to sell Rs 2,732 cr of bad loans in ARSS ●​ The Acquirer is incorporated in Japan and
Infrastructure Projects is a wholly-owned subsidiary of Mitsubishi
●​ India's largest lender State Bank of India UFJ Financial Group, Inc. (MUFG), being the
(SBI) is looking to sell bad loans worth Rs ultimate parent company.
2,732.5 crore. ●​ It is engaged in banking services in India.
●​ It is related to Odisha-based ARSS NPCI approves Phi Commerce’s UPI Switch
Infrastructure Projects Ltd ●​ Phi Commerce : a fintech digital payment
●​ SBI will sell through a Swiss challenge company
auction ●​ UPI Switch : UPI Switch is a software that
●​ It has invited expressions of interest (EoIs) enables communication between core
from entities interested in submitting banking systems and NPCI's UPI systems to
counter bids for the asset on a full cash process UPI transactions
basis. Asian Development Bank approves grant of c to
●​ SBI holds primary securities worth Rs Solomon Islands
230.46 crore against the asset; collateral ●​ Laon to: Solomon Islands
securities worth Rs 31.58 crore; and ●​ Loan by: Asian Development Bank
third-party guarantees of Rs 23.28 crore. ●​ Loan amount: Asian Development Bank
●​ The bank has an offer in hand to sell the ●​ Focus area: Sustainable, inclusive, and
asset, which has been set as the anchor bid climate-resilient water supply and
or the base bid. sanitation services in the greater Honiara
●​ The reserve price for the asset is set at Rs area and in five other towns
125 crore. ●​ Solomon Islands Capital: Honiara
●​ About SBI: ●​ Solomon Islands Currency: Solomon
●​ Founded: 1 July 1955 Islands Dollar
●​ Headquarters: Mumbai, Maharashtra ●​ About Asian Development Bank:
●​ Chairman: Challa Sreenivasulu Setty ○​ Formation: 19 December 1966
●​ CFO: Kameshwar Rao Kodavanti ○​ Purpose: Social and Economic
India's GDP expected to fall below 6.5 pc in FY25 : Development
SBI ○​ Headquarters: Manila, Philippines
●​ GDP Forecast : FY25 ○​ Membership: 69 countries
●​ RBI : 6.6% ○​ President: Masatsugu Asakawa
●​ JP Morgan : 6.4% (until February 23, 2025), Masato
●​ S&P : 6.8%, FY26 : 6.7% Kanda
●​ OECD : 6.8% Asian Development Bank lowers India's growth
●​ Morgan Stanley : 6.3%, 6.5% : FY26 forecast to 6.5% for FY25
CCI approves the acquisition of certain ●​ Name of organization: Asian Development
shareholding of Shiprocket Private Limited byc, Bank
Ltd. ●​ Context: Lowers India's growth forecast
●​ Competition Commission of India (CCI) has ●​ Previous forecast: 7% for FY25
approved the acquisition of certain ●​ Current Forecast: 6.5% for FY25
 December 2024-January 2025 Banking News
●​ ADB kept the forecast unchanged at 4.7 per
cent for FY25, but lowered the FY26
outlook to 4.3 per cent
●​ RBI lowered the growth estimate for FY25
to 6.6 per cent from 7.2 per cent.

HSBC gets RBI okay for 20 new branches

●​ HSBC has received approval from the
Edelweiss launches India's first ETF for capital Reserve Bank of India to open 20 new
markets, insurance Sectors branches in cities like Surat and Indore.
●​ Context: India's first ETF for capital ●​ It will bring the total to 46 branches.
markets, insurance Sectors ●​ Expansion follows a previous consolidation
●​ Launched by: Edelweiss in 2016, when HSBC closed 24 branches.
●​ Designed to: Replicate and track the BSE ●​ HSBC CEO: Georges Elhedery
Capital Markets & Insurance Total Return ●​ HSBC CFO: Pam Kaur
Index CCI slaps ₹40 lakh fine on Goldman Sachs
●​ Subscription from: December 10 to ●​ The Competition Commission of India (CCI)
December 24, 2024 has imposed a ₹40 lakh penalty on
●​ Aim: To benefit from the wealth creation Goldman Sachs (India) Alternative
potential in capital markets and the Investment Management Private Limited
expanding insurance industry. (GS AIMPL).
●​ The maximum constituents are capped at ●​ Reason: For failing to notify its investment
30. in Biocon Biologics Limited (Biocon) under
●​ Minimum subscription amount of Rs. 5,000 the Competition Act, 2002
and in multiples of Re. 1 thereafter. ●​ The regulator found that Goldman Sachs’
FDI equity flows up 45% at $29.8 billion in H1FY25 acquisition of optionally convertible
●​ Foreign direct equity investment witnessed debentures (OCDs) in Biocon, which would
a 45% jump at $29.8 billion in the first six have translated to a 3.81% stake in the
months of the current financial year. company on a fully diluted basis, should
●​ Data by: Department for Promotion of have been reported as a notifiable
Industry and Internal Trade (DPIIT) transaction.
●​ The rise in foreign direct investment (FDI) ●​ Goldman Sachs
equity inflows comes after a contraction in ●​ HQ: New York
inflows for three consecutive financial ●​ CEO David Solomon
years: FY22, FY23, FY24. ●​ Competition Commission of India
●​ 14 October 2003
●​ Ravneet Kaur IAS
 December 2024-January 2025 Banking News
●​ It is the chief national competition 8. PFC signs ₹6,600-cr loan pact with Japan's JBIC
regulator in India. ●​ State-owned PFC has inked an agreement
India's First Railway PSU Index Fund and ETF with the Japan Bank for International
●​ Groww Mutual Fund has introduced the Cooperation (JBIC) for 120 billion Japanese
Groww Nifty India Railways PSU Index yen (around ₹6,600 crore) loan facility.
Fund and Groww Nifty India Railways PSU ●​ JBIC will provide funding of JPY 72 billion,
ETF. and the balance will be funded by
●​ Aim: To offer investors the opportunity to commercial banks.
invest in one of India’s most critical ●​ The funds will be utilised to finance
infrastructure sectors - railways. renewable energy portfolio, advancing
●​ The New Fund Offer period for these funds India’s transition to non-fossil-fuel-based
is between January 16, 2025 and January energy sources.
30, 2025. Indian Economy Projected to Grow at 7% in FY25:
●​ Both funds aim to track the Nifty India Moody’s Revises Forecast
Railways PSU Index, which comprises ●​ The global ratings agency Moody’s has
Public Sector Undertakings (PSUs) integral downgraded India’s economic growth
to the Indian Railways sector, covering forecast for the fiscal year 2024-2025 to
everything from infrastructure and logistics 7%, down from the 8.2% growth recorded
to financial services and technology. in the previous fiscal year.
Government of India announces the buyback of its ●​ This revision reflects a combination of
Securities through auction for an aggregate domestic and global economic slowdown
amount of ₹20,000 crore and a weaker-than-expected performance
●​ Government of India has announced the in key sectors.
buyback of its Securities through auction IDFC FIRST Bank Launches all new FIRST EA₹N
for an aggregate amount of ₹20,000 crore. RuPay Credit Card
●​ Location:Reserve Bank of India Core ●​ IDFC FIRST Bank, in partnership with
Banking Solution (E-Kuber) system RuPay has launched the UPI enabled RuPay
Shriram Life Launches Sunishchit Laabh Starting at Credit Card called - FIRST EARN.
Rs. 30,000 a Year ●​ This credit card is backed by Fixed Deposit.
●​ Shriram Life Insurance has launched ●​ Hence everyone is eligible to instantly avail
Shriram Life Sunishchit Laabh - a this unique credit card, online.
non-participating individual savings plan. ●​ It also offers cashback on UPI payments
●​ It guarantees high returns of up to 668% of thus making the product rewarding for
the total premium paid. users.
●​ The plan offers flexible entry options with ●​ Interest on Fixed Deposit: Earn 7.25% p.a.
ages ranging from 30 days to 60 years, and interest on 1 year 1 day FD.
a minimum ticket size starting at Rs. 30,000 ●​ Comprehensive Protection:
annually, Rs. 15,500 half-yearly, Rs. 8,000 ●​ Complimentary roadside assistance worth
quarterly, and Rs. 3,000 monthly. Rs1,399.
●​ The plan features flexible maturity income ●​ Lost card liability cover of Rs25,000.
payout options that include tax-free ●​ Personal accident cover of Rs2,00,000.
payouts for up to 40 years (up to a ●​ About IDFC First Bank:
maximum age of 101), ensuring consistent ●​ Headquarters: Mumbai
income, even in retirement, for the ●​ Founded: October 2015
long-term. ●​ CEO: V. Vaidyanathan
●​ It offers death benefits up to 160 times the Bajaj Finance, Airtel collab to launch digital
annualised premium. financial services platform
 December 2024-January 2025 Banking News
●​ Bajaj Finance has entered into a disbursement since the scheme’s inception
partnership with Bharti Airtel to create a in 2015.
digital platform for financial services. ●​ This significant uptick underscores the
●​ With this pact, the telecom company will government’s ongoing commitment to
progressively offer most of the non-banking bolstering micro and small enterprises
financial company’s (NBFC’s) retail across India.
financial offerings to all its 370 million ●​ Effective October 24, 2024, the government
customers. raised the maximum loan amount under
●​ Airtel will initially offer Bajaj Finance’s PMMY from ₹10 lakh to ₹20 lakh.
retail financial products on its Airtel ●​ In July 2024, a new credit guarantee
Thanks App. scheme was launched to assist medium and
●​ This is for seamless and secure customer small enterprises in the manufacturing
experience, and later through its sector.
nationwide network of stores. Skydo gets RBI nod to operate as a Payment
Bank of Baroda Unveils 5 All-Women Branches Aggregator - Cross Border entity
●​ Bank of Baroda launched five all-women ●​ Skydo Technologies, a cross-border
bank branches under the motto “By payments company, has received
Women, For Women” in the states of Odisha in-principle authorisation from the Reserve
& Jharkhand. Bank of India (RBI) to operate as a Payment
●​ These branches, staffed entirely by women Aggregator-Cross Border (PA-CB) entity.
employees, are designed to create a ●​ Skydo is among the first companies in the
supportive and empowering environment cross-border payments space to receive this
for both the bank’s women employees and authorisation.
women customers as well as general ●​ This move strengthens Skydo’s mission of
customers at large. making cross-border payments compliant,
●​ The bank is opening three such branches in seamless, and cost-effective for India’s
Odisha and two in Jharkhand. exporters.
●​ Out of the 5 branches, three are urban ●​ About Payment Aggregator-Cross Border
branches and two are rural. (PA-CB)
●​ The newly inaugurated branches are ●​ PAs-CB facilitates cross-border online
located at Niladri Vihar (Bhubaneswar), payments for import and export of
Khunta (Cuttack), Irba (Ranchi), Dhanupali permissible goods and services.
(Sambalpur), and Jamshedpur Women’s ●​ The RBI has set a minimum net worth
College (Jamshedpur). requirement of Rs 15 crore for these
●​ The branches will focus on women entities, which will be categorized as PA-CB.
customers with tailored savings and loan ●​ A payment gateway is a software that
schemes, including the BoB Mahila Shakti allows online transactions to take place,
Savings Account, Women Power Current while a payment aggregator is the inclusion
Account, and Mahila Swavalamban Loan for of all these payment gateways.
entrepreneurs. Tata AIG unveils CyberEdge , target 25% cyber
Mudra Loans Disbursal Hits Record ₹3.39 Lakh insurance market share by 2030
Crore in Q3 FY25 ●​ TATA AIG General Insurance Company, has
●​ In the third quarter of the fiscal year introduced CyberEdge, a new cyber
2024-25, the Pradhan Mantri Mudra Yojana insurance solution designed to protect
(PMMY) achieved a historic milestone by businesses of all sizes against a wide array
disbursing ₹3.39 lakh crore in loans, of cyber risks.
marking the highest quarterly
 December 2024-January 2025 Banking News
●​ The policy offers robust financial and ●​ Regulated platform that connects social
operational support, covering forensic enterprises and potential donors.
investigations, legal fees, data recovery, ●​ Facilitate funding for the growth of social
extortion payments, and losses from enterprises.
business interruptions. ●​ The SSE allows investors to subscribe to
●​ With a strong commitment to enhancing zero-coupon, zero-principal (ZCZP) bonds
cybersecurity resilience, CyberEdge aims to issued by NPOs, thereby enabling donations
capture 25 per cent of the cyber insurance for various activities undertaken by these
market in the coming five years. organisations.
SEBI to ease norms for Social Stock Exchanges ●​ The first listing on the SSE took place in
●​ Expanding definition of NPOs December 2023.
●​ Social enterprise registered under a ●​ Registered NPOs must comply with annual
charitable trust registered under Indian disclosure requirements and submit impact
Trusts Act, 1882 or under the public trust assessment reports to maintain
statute of the relevant State. transparency.
●​ Charitable society registered under ●​ Sebi has further proposed revisions to
Societies Registration Act, 1860. disclosure requirements, impact reporting,
●​ Company incorporated under Section 8 of and target activities to enhance
Companies Act, 2013. transparency and accountability.
●​ Expanded definition includes: Deloitte Projects Indian Economy to Grow 6.5-6.8%
●​ Trusts registered under Indian Registration in FY 2024-25
Act with relevant sub registrar. ●​ Projected Growth Rate: Indian economy
●​ Charitable society registered under the expected to grow at 6.5%-6.8% in FY
society registration statute of the relevant 2024-25.
State. ●​ The economy faces challenges with
●​ Companies registered under Section 25 of lower-than-expected Q2 growth (5.4%).
the Companies Act, 1956. ●​ Resilient Growth: Economy remains robust
●​ Expanding Eligible list of activities despite global economic challenges and
●​ welfare of disadvantaged children, women, uncertainties.
destitute, elderly and disabled; ●​ Note:
●​ vocational skills ●​ The RBI lowered its annual growth forecast
●​ promotion and education of art, culture and to 6.6 percent, while the latest NSO survey
heritage. estimated growth at 6.4 percent for the
●​ Easing conditions for renewal of current fiscal year.
registration Sebi proposes launch of Rs 250 Sachet SIPs by
●​ Now, NPOs shall be permitted to register mutual funds
with SSEs for two years without raising ●​ Sebi has proposed a small ticket systematic
funds through SSEs. investment plan (SIP) of ₹ 250 to promote
●​ Social Stock Exchange (SSE) is a separate financial inclusion and systematic savings
segment of the existing Stock Exchange that among new investors to mutual funds.
can help Social Enterprises to raise funds ●​ Each investor can make three discounted
from the public through the stock exchange SIPs, committing for five years, with no
mechanism. premature withdrawal restrictions.
●​ The primary goal of an SSE is to channel ●​ Only growth options are available under
funds towards entities that create certain schemes.
measurable social impact. Tata AIA Life Insurance introduced Shubh Muhurat
●​ Objectives:
 December 2024-January 2025 Banking News
●​ In order to assist parents in saving for their ●​ At present, once the bidding process for an
child's wedding, Tata AIA Life Insurance has IPO closes, shares have to be listed on
introduced "Shubh Muhurat," a life bourses in trading plus three (T+3)
insurance plan. working days.
●​ The solution is appropriate for parents who ●​ The allotment of shares has to be done on
are between the ages of 31 and 50 and with T+1 day.
children of ages 1 to 20. ACKO Introduces E-Challan Service for Traffic Fine
●​ By making an early investment in this, the Payments in Karnataka
parent may have enough time to build up ●​ ACKO launched its innovative e-challan
the corpus needed for the child's wedding. service.
●​ Shubh Muhurta provides equity exposure ●​ It offers the convenience and accessibility
along with a capital guarantee. of checking e-challan status in the
●​ Tata AIA Life Insurance has launched a Karnataka.
fresh, engaging campaign titled Kuch ●​ Even Bangalore traffic challan can be
Income Life Ke Liye, Kuch Life Insurance Ke checked through the ACKO app or website.
Liye, aimed at changing the perception of ●​ So, no more tiring queues to stand to check
life insurance among younger audiences. and pay traffic fines.
●​ TATA AIG unveils CyberEdge, targets 25% ●​ Headquarters: Bengaluru
cyber insurance market share by 2030 ●​ MD & CEO: Animesh Kumar Das
Sebi plans pre-listing trading for IPOs YES Bank launches frictionless finance accelerator
●​ SEBI is planning to introduce a programme
“when-listed” platform, which will allow ●​ YES Bank has unveiled the Frictionless
trading companies’ shares in a period Finance Accelerator Programme.
between allotment of shares post the ●​ Collaboration with: (1) Reserve Bank
closure of the initial public offering. Innovation Hub (RBIH) and (2) S.P. Jain
●​ The platform aims to reduce ‘grey market Institute of Management and Research
activity’ in companies’ stocks. (SPJIMR)
●​ grey market refers to the unofficial trading ●​ It was launched on National Startup Day
of securities even before being listed on (16th January 2025).
stock exchanges ●​ Aim: To empower fintech startups to tackle
●​ The grey market is a cash market and there critical challenges, scale innovations, and
is no delivery of shares. enhance financial inclusion in India.
●​ Many retail investors also look at the ●​ Managing Director & CEO, YES Bank:
premium offered in the grey market on Prashant Kumar
shares of a company which has launched an ●​ CEO, Reserve Bank Innovation Hub: Rajesh
IPO, before considering investing in the Bansal
offer. ●​ IIM-K, RBIH sign pact to foster innovation,
●​ Currently, shares are allotted at T+3 research in FinTech
(trading plus three working days) from ●​ SwanariTM TechSprint 3.0 launched by
closure of the issue to listing. RBIH and IIM Ahmedabad.
●​ In those three days there is a lot of “kerb ●​ RBIH launches MuleHunter.ai
trading” (grey market trading). ●​ 9th Anniversary of Startup India Initiative
●​ T is the day when an IPO closes for ●​ DPIIT- recognized startups increased from
subscription while kerb trading refers to 500 (2016) to 1.59 lakh (2025).
trading outside the ambit of stock ●​ India is now the 3rd largest startup
exchanges post official market hours ecosystem globally
 December 2024-January 2025 Banking News
●​ As of 2024, 73,151 startups have at least IRDAI imposes ₹1 crore penalty on Royal Sundaram
one woman director. General Insurance
Kotak Mahindra Bank acquires StanChart's Rs ●​ The Insurance Regulatory and
3,330-cr personal loan portfoilio Development Authority has found fault
●​ Kotak Mahindra Bank has completed the with Chennai based Royal Sundaram
acquisition of Rs 3,300 crore personal loan General Insurance(RSGI) for violating a few
book of Standard Chartered Bank India provisions of existing regulations and has
following regulatory approvals. imposed a fine of Rs 1 crore against the
●​ After having received the necessary insurer for not complying with the
regulatory approvals and upon fulfillment Outsourcing norms.
of the relevant conditions precedent, the ●​ In News
bank on January 23, 2025, completed the ●​ FIU-IND and IRDAI sign MoU for enhanced
acquisition. coordination and information exchange
●​ Standard Chartered launches SC PrismFX, a ●​ The life insurance sector has reported
Transactional FX solution unclaimed amounts totalling Rs 20,062
●​ It is a cross-currency Transactional foreign crore as of March 2024, according to the
exchange (FX) solutions suite. SC PrismFX Insurance Regulatory and Development
is available for Financial Institution (FI), Authority of India (IRDAI).
Non-Banking Financial Institution (NBFI), PNB MetLife partners with Saraswat Co-operative
PayTech, and Corporate clients globally. Bank to offer insurance solutions
●​ Standard Chartered Bank, India, launches ●​ PNB MetLife India Insurance Company Ltd
“FEMA Centre of Excellence”. (PNB MetLife) has forged a strategic
●​ Standard Chartered Bank opens specialised bancassurance partnership with Saraswat
branch to cater to high net worth Co-operative Bank Ltd, one of the largest
individuals in Mumbai urban co-operative banks in India.
●​ Kotak Mahindra Bank launches BizLabs ●​ Aim: To enhance financial inclusion by
Accelerator Programme to empower offering a comprehensive suite of life
startups insurance solutions, including savings,
iSPIRT & UGRO Capital unveil PSLAI, Priority Sector protection, retirement, and group plans, to
Lenders Association of India Saraswat Bank’s extensive customer base
●​ iSPIRT has announced the formation of ●​ Bancassurance is an insurance distribution
PSLAI, an industry body. model where companies partner with
●​ The Priority Sector Lenders Association of banks to sell insurance policies or products.
India (PSLAI) is a Section 8 company ●​ Managing Director & CEO of PNB MetLife:
focused on promoting loans under the Sameer Bansal
Reserve Bank of India's (RBI) Priority MobiKwik Joins Forces with Piramal Finance
Sector Lending (PSL) norms. ●​ MobiKwik has partnered with Piramal
●​ It includes lending institutions like UGRO Capital & Housing Finance Ltd to provide
Capital, IIFL, and fintechs like GetVantage personal loans to its customers.
and GetGrowth Capital as founding ●​ Through this partnership, MobiKwik users
members. will now be able to apply for and access
●​ PSLAI aims to ensure that sectors like personal loans seamlessly through the
agriculture, small businesses (MSMEs), and platform.
affordable housing receive necessary credit. ●​ Under the partnership, MobiKwik app users
●​ As per RBI rules, banks must allocate 40% pan India will have access to with the loan
of their Adjusted Net Bank Credit (ANBC) to amount for ZIP EMI ranging from Rs 50,000
PSL. to 2 lakh.
 December 2024-January 2025 Banking News
●​ ZIP EMI is a personal loan service provided Sebi, NISM launch eLearning course on municipal
by MobiKwik. bonds
●​ Eligibility criteria for these loans are ●​ Markets regulator Sebi launched an
income exceeding Rs 25,000 and between eLearning course on municipal bonds.
the ages of 23 and 55 with payment tenure ●​ Aim: To equip officials of municipal
ranging between 6 months to 24 months. corporations and urban local bodies with
●​ MobiKwik the knowledge and practical skills to
●​ April 2009 leverage such bonds as a tool for financing
●​ HQ : Gurugram, Haryana development projects.
●​ Piramal Group ●​ The course has been conceptualised and
●​ 1984 designed by Sebi in collaboration with
●​ Chairperson, CEO : Ajay Piramal National Institute of Securities Markets
●​ HQ : Mumbai, Maharashtra (NISM).
Bank of Maharashtra plans Rs 2,500 crore ●​ Municipal bonds or muni bonds are
Qualified Institutional Placement in FY26 referred as debt securities issued by urban
●​ Public sector lender Bank of Maharashtra is local government and agencies to fund
planning to go for another round of equity day-to-day obligations and to fund finance
capital raise in the next financial year capital projects like highways, roads and
(FY26) to support business growth and schools.
reduce the government holding to 75 per ●​ SEBI in News
cent. ●​ Sebi proposes mandatory dematerialisation
●​ The fresh equity capital raise could be of securities in case of stock split,
around Rs 2,500 crore through institutional consolidation
placement. ●​ It will ammend the LODR Regulations, 2015
●​ In October 2024, Pune-based lender had ●​ Listing Obligations and Disclosure
raised equity capital of Rs 3,500 crore Requirements Regulations 2015
through Qualified Institutional Placement ●​ SEBI has ordered research analysts are
(QIP). required to maintain a deposit based on
●​ It issued share equity at Rs 57.36 per share. their client base, ranging from Rs 1 lakh for
●​ Consequently, the government’s holding up to 150 clients to Rs 10 lakh for over
was reduced from 86.46 per cent to 79.60 1,000 clients.
per cent. ●​ SEBI relaxes norms for settling client
●​ Bank of Maharashtra accounts inactive for 30 Calendar Days.
●​ 1935 Shriram Housing Finance Rebrands as Truhome
●​ HQ : Pune Finance
●​ M.D. & CEO : Nidhu Saxena ●​ Shriram Housing Finance has officially
●​ Bank of Maharashtra Penalized for ATM rebranded as Truhome Finance following
Transaction Error, ₹39,500 Compensation an acquisition by Warburg Pincus and
Awarded Qatar’s QIA, which invested ₹1,225 crore
●​ Complainant had attempted to withdraw into the company.
₹10,000 from PMC building ATM in January ●​ The rebranding aligns with the company’s
2017. vision to enhance accessibility to affordable
●​ As per Reserve Bank of India (RBI) home loans.
guidelines, banks must refund such debited ●​ This investment has bolstered the
amounts to customers' accounts within 12 company’s net worth to over ₹3,300 crore,
working days. providing a solid foundation for future
growth.
 December 2024-January 2025 Banking News
India to grow at 6.7% for next two years: World ●​ FICCI is set to host the third edition of
Bank Maritime India Conference & Expo 2025
●​ India is projected to sustain its position as from 22-24 January at the Bombay
the fastest-growing major economy, with a Exhibition Centre
growth rate of 6.7% in both FY26 and FY27. CSE Partners with NCDEX to Explore Opportunities
●​ Projection by: World Bank’s latest Global in Derivatives & Commodities Trading
Economic Prospects (GEP) report ●​ India’s leading agriculture commodity
●​ It outpacing a global growth projection of exchange, the National Commodity and
2.7% for 2025-26. Derivatives Exchange (NCDEX) signed a
●​ Complementing the World Bank report, the memorandum of understanding (MoU)
latest update from the International with the Colombo Stock Exchange (CSE), for
Monetary Fund’s (IMF) World Economic setting up a comprehensive framework for
Outlook (WEO) also reinforces India’s commodities and derivatives trading.
strong economic trajectory. ●​ The agreement will enable knowledge
●​ IMF : 6.5% - FY26, FY27 transfer between the two exchanges where
●​ World Bank In News they will share expertise in product
●​ World Bank approves $188 million loan to designing and development, trading
Maharashtra to stimulate growth in systems and regulatory framework.
backward districts PNB Pioneers Real-Time Cybercrime Response with
●​ The $188.28-million loan from the Clari5 Integration
International Bank for Reconstruction and ●​ Punjab National Bank (PNB) has become
Development (IBRD) has a final maturity of the first Indian bank to launch Clari5’s
15 years, including a grace period of 5 years National Cybercrime Reporting Portal
●​ World Bank approves $35 million project to (NCRP) Integration Solution.
empower 5,00,000 Meghalaya adolescents ●​ This system was developed with the Indian
●​ Scheme : Meghalaya Multisectoral Project Cyber Crime Coordination Centre (I4C).
for Adolescent Wellbeing, Empowerment ●​ It allows for real-time processing of
and Resilience (MPOWER) cybercrime complaints and fraud
FICCI cuts India's GDP growth estimate to 6.4% for prevention.
FY25 21% of Jan Dhan accounts turned inoperative by
●​ FICCI has revised India's GDP growth December
projection for 2024-25 down to 6.4% from ●​ More than one in every five accounts under
7%. the Pradhan Mantri Jan Dhan Yojana
●​ The agriculture, industry, and services (PMJDY) has turned inoperative by
sectors are expected to grow at 3.6%, 6.3%, December 2024.
and 7.3% respectively. ●​ This translates to approximately 110
●​ Economists emphasize fiscal consolidation million inoperative accounts.
and boosting private consumption, while ●​ A bank account is classified as “inoperative”
also focusing on manufacturing incentives if there are no “customer-induced
and export support amidst external transactions” for a continuous period of 24
challenges. months.
●​ FICCI ●​ Inoperative Jan Dhan accounts rose from 19
●​ Federation of Indian Chambers of per cent of total accounts in March 2024 to
Commerce & Industry 21 per cent in December that year.
●​ 1927
●​ President : Harsh Vardhan Agarwal
●​ HQ : New Delhi
 December 2024-January 2025 Banking News
●​ International Finance Corporation (IFC) has
sanctioned a $ 100 million
Sustainability-Linked Loan (SLL) to JK Tyre
& Industries (JK Tyre).
●​ The funding includes $30 million to JK Tyre
and up to $70 million for Cavendish
Industries (CIL), a subsidiary of JK Tyre.
Jio launched jioSoundPay ●​ The funding will support the expansion of
●​ Reliance Jio Infocomm launched a tyre manufacturing capacity, focusing on
‘JioSoundPay’ feature for its JioBharat Passenger Car Radial (PCR) tyres at JK
device, replacing merchant sound boxes for Tyre's Banmore plant in Madhya Pradesh
UPI payments. and Truck and Bus Radial (TBR) tyres at
●​ The feature provides sound alerts for UPI CIL's Laksar plant in Uttarakhand.
payments received. ●​ The initiative aims to promote
●​ Existing small and micro merchants pay energy-efficient tyre production,
around ₹ 125 a month for a sound box. strengthen local supply chains, and create
●​ Now, with JioSoundPay being provided free, jobs.
JioBharat users will save ₹1,500 annually RBI cancels registration of Mumbai-based X10
Tata Electronics acquires 60% in Pegatron India Financial Services
●​ Tata Electronics Pvt Ltd (TEPL) has ●​ The Reserve Bank of India canceled the
acquired a controlling 60% stake in registration of X10 Financial Services Ltd,
Pegatron Technology India, a subsidiary of an NBFC, due to irregularities in its digital
Taiwanese giant Pegatron Corporation. lending operations.
●​ This strategic acquisition bolsters Tata’s ●​ The company outsourced key functions like
position as a key Apple supplier, further credit appraisal and customer verification
advancing its plans for iPhone production to service providers without due diligence,
in India. violating outsourcing guidelines.
●​ The total production value of iPhones UNCTAD Global Investment Trends Monitor 2024
assembled in India reached approximately ●​ The Global Investment Trends Monitor
Rs 1,50,000 crore: Foxconn accounted for a report was recently released by UNCTAD.
production value of around Rs 84,000 crore ●​ Global Foreign Direct Investments (FDI)
(56 per cent of the total), Tata Electronics increased by 11% to $1.4 trillion in 2024.
contributed Rs 40,000 crore (26 per cent), ●​ However, FDI dropped 8% when excluding
and Pegatron made up the remainder. flows through European conduit
HDFC Life announces corporate agency tie-up with economies.
CARS24 ●​ FDI to developing countries fell by 2%,
●​ HDFC Life partners with CARS24 Financial marking a second consecutive decline for
Services Pvt. Ltd. to distribute life the Global South.
insurance products, aiming to extend their ●​ Investments in SDG-related sectors
reach through CARS24's extensive digital dropped by 11% globally in 2024.
and branch network. ●​ India saw a 13% rise in FDI and growth in
●​ This collaboration seeks to enhance greenfield project announcements.
insurance accessibility nationwide, ●​ UNCTAD
contributing to the goal of 'Insurance for all ●​ 30 December 1964
by 2047'. ●​ Geneva, Switzerland
JK Tyre secures $100 million Sustainability-Linked ●​ Rebeca Grynspan
Loan from International Finance Corporation ●​ Parent Organisation : UNGA
 December 2024-January 2025 Banking News
●​ UNCTAD projected India's GDP growth slip
to 6.5% in 2024
●​ VietNam to host the 16th UN Conference on
Trade and Development in October 2025
●​ Theme : “Shaping the future: Driving
economic transformation for equitable,
inclusive and sustainable development”.
State Bank of India Payments and Pine Labs
Partner
CBIC Introduces Temporary Identification Number
●​ SBI Payments and Pine Labs announced an
●​ The Central Board of Indirect Taxes and
expanded strategic alliance, building on
Customs (CBIC) has recently implemented
their long-standing 12-year partnership.
changes to the Goods and Services Tax
●​ SBI Payments is a Joint Venture formed
(GST) framework in India.
between State Bank of India, and Hitachi
●​ These changes include the introduction of a
Payment Services Pvt. Ltd. Pine Labs is a
Temporary Identification Number (TIN) for
merchant commerce platform.
businesses that do not require mandatory
●​ Focus on: Accelerating the adoption of
registration.
digital payments and digital commerce
●​ Aim: To streamline tax compliance and
solutions.
facilitate payments under the GST regime.
Reserve Bank of India imposes monetary penalty
●​ Additionally, the CBIC has announced a
on Datson Exports Limited, West Bengal
waiver of excess late fees for the financial
●​ A penalty of Rs 1 lakh has been imposed on
years 2017-18 to 2022-23 concerning
Datson Exports, West Bengal for
annual returns.
non-compliance with certain directions
●​ The notification clarifies that these TINs
issued by the RBI on Managing Risks and
will be granted under specific conditions
Code of Conduct in Outsourcing of Financial
outlined in Part B of FORM GST REG-12.
Services by NBFCs'
●​ Threshold Limits for Registration
India's forex reserves decline by $1.88 billionn to
●​ Under the GST framework, businesses must
$623.983 billion
register if their turnover exceeds certain
●​ India's forex reserves dropped by $1.88
thresholds.
billion to $623.983 billion in the week
●​ For the manufacturing sector, the limit is
ended January 17, 2025.
₹40 lakh.
●​ This follows a steeper decline of $8.714
●​ For the service sector, it is set at ₹20 lakh.
billion the previous week, bringing the
●​ Special Category States have different
reserves down from $625.871 billion.
thresholds, with some like Jammu and
●​ The reserves had previously peaked at an
Kashmir opting for a ₹40 lakh limit for
all-time high of $704.885 billion in late
commodities.
September.
●​ Other states, such as Puducherry, have
●​ Foreign currency assets is the largest
chosen a ₹20 lakh limit for goods.
component of the reserves.
Banks disburse ₹38,000 crore of loans under ULI
pilot
●​ The Unified Lending Interface (ULI) was
launched by the Reserve Bank of India
(RBI) to streamline the lending process.
 December 2024-January 2025 Banking News
●​ Since its pilot inception in August 2023, ULI ●​ The benefits will be extended to SCR
has facilitated the disbursement of ₹38,000 employees across six states: Telangana,
crore across 7.5 lakh loans. Andhra Pradesh, Maharashtra, Karnataka,
●​ This platform aims to revolutionise credit Madhya Pradesh, and Tamil Nadu.
delivery by connecting lenders with diverse ●​ The MoU offers enhanced personal accident
data sources through a single interface. insurance coverage, free Hospicash
●​ ULI is a technology platform designed to facilities, and special offers on retail loans,
enable seamless access to digitised debit cards, and credit cards.
financial and non-financial data. ●​ Unique add-on benefits include
●​ It connects lenders to multiple data service reimbursement for girl child marriage
providers via standardised Application (aged 18-25), higher education cover, and
Programming Interfaces (APIs). transportation of imported medicines.
●​ This ‘plug and play’ approach simplifies the Government Approves Rs 500 Crore Capital
credit underwriting process, making it Infusion into Industrial Finance Corporation of
easier for borrowers to access loans. India for Financial Year 2024-25
CheQ Unveils Wisor: India’s First AI-Powered Credit ●​ The government has approved Rs 500 crore
Card Expert capital infusion in the company through the
●​ CheQ, founded by former Flipkart executive preferential issue of shares.
Aditya Soni, has introduced Wisor, India’s ●​ The Department of Financial Services has
first AI-driven credit card expert. conveyed sanction of the President of India
●​ This innovative tool aims to transform to release funds of Rs 500 crore to IFCI Ltd
credit card management by providing towards subscription to the share capital
personalized insights, seamless during FY 2024-25.
management, and maximizing rewards for ●​ The Industrial Finance Corporation of India
users. was set up by the government on July 1,
Bharat Interface for Money Partners with FinTech 1948, as the first development financial
Yatra 2025 institution in the country.
●​ BHIM, India’s flagship digital payments app ●​ The Finance Ministry, in November 2024, in
powered by NPCI BHIM Services Ltd principle approved the 'Consolidation of
(NBSL) has joined forces with The FinTech IFCI Group', which entails the
Yatra 2025 as a Principal Partner. merger/amalgamation of IFCI Limited and
●​ The FinTech Yatra is a 10,000 km long epic StockHolding Corporation of India Limited
road journey. and other group companies.
●​ Aim: To identifying, understanding and BIMTECH launches blockchain-based currency
catalysing players in financial services BIMCOIN
across India. ●​ Birla Institute of Management Technology
●​ This strategic collaboration aims to (BIMTECH) has introduced a
accelerate India’s digital payment blockchain-based digital currency,
revolution by empowering communities ‘BIMCOIN’
and fostering financial inclusion. ●​ Designed exclusively for the BIMTECH’s
Bank of Baroda Signs MoU with South Central ecosystem
Railway ●​ The blockchain platform facilitates secure,
●​ Bank of Baroda has signed a Memorandum transparent, and instant transactions
of Understanding (MoU) with South Central among students, vendors, and
Railway (SCR) to provide a comprehensive administrators.
salary package for over 85,000 employees. ●​ Unlike traditional systems, BIMCOIN
operates on a blockchain, offering
 December 2024-January 2025 Banking News
decentralisation, transparency, and across multiple airline and hotel partners,
programmable features like smart enabling users to convert points into air
contracts. miles and hotel stays via the HSBC mobile
CRED launches e₹ Wallet in collaboration with RBI app.
& YES Bank ●​ New users who spend ₹10,000 within the
●​ Fintech unicorn CRED has launched a beta first 30 days will receive ₹1,000 cashback,
version of its e₹ wallet. ₹3,000 PostCard vouchers, and three
●​ Developed in partnership with the Reserve months of EazyDiner Prime Membership.
Bank of India (RBI) and YES BANK as the ●​ The card also provides purchase protection
sponsor bank. up to $20,000 annually.
●​ This launch makes CRED the first fintech ●​ RBI Report on Credit card usage
platform to implement RBI’s Central Bank ●​ The number of credit cards has more than
Digital Currency (CBDC). doubled to around 10.80 crore at the end of
●​ The e₹ wallet integrates the security and December 2024, compared to December
reliability of a sovereign currency with 2019 when there were 5.53 crore cards in
CRED’s payment experience. circulation.
●​ It will allow members whitelisted for the ●​ With effect from January 1, 2019, the RBI
beta program to pay UPI-linked bank has mandated the use of only EMV Chip and
accounts, as well as send and receive PIN-based debit and credit cards.
money to other CBDC wallets. Investment Announcements Soar 39% in FY25:
●​ The wallet supports transactions of up to State Bank of India Report
Rs 10,000 per transfer, with a daily limit of ●​ Ministry of Finance stated in a latest update
Rs 50,000, and can store up to Rs 1 lakh. that India's investment ecosystem and
●​ Central Bank Digital Currencies (CBDCs) external commercial borrowings (ECBs)
are digital versions of a country’s fiat have witnessed significant developments
currency, issued and regulated by the over the past few years.
central bank ●​ The recent report by the State Bank of India
●​ Unlike decentralized cryptocurrencies, (SBI) has highlighted trends in investment
CBDCs are centralized and fully controlled announcements, private sector's
by the government, offering a state-backed contribution, and role of ECBs in corporate
alternative to physical cash. financing.
●​ The Bahamas was the first country to ●​ Investment activity in India continues to
launch a nationwide Central Bank Digital grow at a rapid pace, with significant
Currency (CBDC), named the Sand Dollar, in contributions from the private sector. In
2020. 9MFY25 i.e., the nine months of FY25
●​ Following this, Nigeria also rolled out its (April-December 2024), total investment
eNaira in the same year. In April 2020, announcements stood at Rs 32.01 lakh
●​ China became the first major economy to crore.
pilot its digital currency, the e-CNY or ●​ This marks a 39% increase from Rs 23 lakh
Digital Yuan. crore in 9MFY24, reflecting a positive
HSBC launches TravelOne Credit Card investment outlook.
●​ HSBC has introduced the TravelOne Credit ●​ The private sector accounted for nearly
Card. 56% (FY24) and nearly 70% (9MFY25) of
●​ Designed to cater to the needs of frequent these announcements, signaling strong
travelers. corporate confidence.
●​ The card offers a range of features,
including instant reward redemptions
 December 2024-January 2025 Banking News
●​ Household Net Financial Savings (HNFS) in using the existing login credentials of SI
India improved to 5.3% of GDP in FY24 portal.
from 5.0% in FY23. Unified Pension Scheme (UPS) Notified, To be
●​ Additionally, savings in physical assets Effective from April 1, 2025
increased from 12.9% of GDP in FY23 to ●​ The Finance Ministry has officially notified
13.5% in FY24. the Unified Pension Scheme (UPS) under
Ratnakar Bank Limited & Piramal Finance partner the National Pension System (NPS), which
to offer Co-Lending Business will come into effect from April 1, 2025.
●​ RBL Bank and Piramal Capital and Housing ●​ The government’s contribution will
Finance Limited announced a strategic increase from 14% to 18.5% of basic pay
partnership under their co-lending plus Dearness Allowance (DA).
business. ●​ The employee’s contribution will remain
●​ Both the lenders will offer loans to the unchanged at 10% of basic pay plus DA.
middle and low-income segment borrowers ●​ Employees must have a minimum of 10
with focus on rural and semi-urban regions years of qualifying service for
by providing competitive interest rates and superannuation benefits.
tailored credit solutions in Tier 2 and Tier 3 ●​ For voluntary retirement, the minimum
markets. qualifying service will be 25 years.
●​ RBL Bank ●​ Assured payouts will not apply in cases of
●​ August 1943 removal, dismissal, or resignation from
●​ Mumbai service.
●​ R Subramaniakumar (M.D. & CEO) ●​ Full assured payout: 50% of the average
●​ Tagline : "Apno Ka Bank" basic pay of the last 12 months before
Sebi develops web portal(iSPOT) for reporting superannuation.
glitches ●​ Minimum guaranteed payout: ₹10,000 per
●​ Markets regulator Sebi has developed a month for employees with 10 years or more
web-based portal for submission of of qualifying service.
preliminary and final root cause analysis ●​ Upon the death of the payout holder, a
(RCA) reports of technical glitches by stock family payout of 60% of the last payout
exchanges and other market infrastructure amount will be provided to the legally
institutions (MIIs). wedded spouse.
●​ The new portal -- Integrated Sebi Portal for ●​ A lump-sum payment of 10% of monthly
Technical Glitches (iSPOT) -- is aimed at emoluments (basic pay + DA) for every six
streamlining the reporting process of months of completed service will be
technical glitches across MIIs as well as allowed at superannuation.
creating a centralized repository of
technical glitches.
●​ Presently, the MIIs -- stock exchanges,
clearing corporations and depositories --
are required to report information about
technical glitches and submit the Root
Cause Analysis (RCA) reports to Sebi on a
dedicated email ID.
●​ iSPOT has been integrated with Sebi's
Intermediary(SI) portal for ease of access
to MIIs and can be accessed by MIIs by NPCI bans special characters in UPI transaction IDs
 December 2024-January 2025 Banking News
●​ Unified Payments Interface (UPI) ●​ Users can pay by scanning any UPI QR code
transaction IDs will no longer be allowed to using e₹, as the wallet is fully compatible
contain special characters from February 1, with the Unified Payments Interface (UPI).
2025. ●​ The wallet allows daily transactions of up to
●​ Announced by: National Payments ₹50,000, with a limit of ₹10,000 per
Corporation of India (NPCI) transaction.
●​ Any transactions with such special ●​ It supports denominations ranging from
characters will be automatically rejected by ₹0.50 to ₹500.
the central system. ●​ The number of such UPI transactions hit
●​ The NPCI instructed all payment companies 16.73 billion in December 2024 that is an
to use only alphanumeric characters for 8% increase from 15.48 billion in
transaction IDs. November.
Narayana Health launches ‘Arya’ ●​ The total value of these transactions also
●​ Narayana Health Insurance has introduced reached ₹23.25 lakh crore in December,
‘Arya,’ aimed at bridging gaps in the health compared to ₹21.55 lakh crore in
insurance industry. November.
●​ The ‘Arya’ insurance plan offers ●​ The daily average transaction count grew to
hospitalisation coverage ranging from ₹25 539.68 million in December,a big increase
lakh to ₹1 crore, with flexible top-up from 516.07 million in November,
options starting at ₹25,000. India Post Payments Bank and PNB MetLife partner
●​ In addition, the plans include consultations to expand life insurance access nation wide
with general practitioners, pediatricians, ●​ Basic Summary :
and OBGYNs, providing a comprehensive ●​ India Post Payments Bank (IPPB) and PNB
healthcare solution. MetLife India Insurance Company Limited
●​ Currently available in Bengaluru have partnered to offer life insurance
Competition Commission of India Approves Renew solutions to millions across India
Exim DMCC’s Acquisition of 72.64% Stake in ITD ●​ This collaboration aims to promote
Cementation India financial inclusion by providing life
●​ Adani Group’s Renew Exim DMCC has insurance products
secured CCI approval to acquire a 72.64% ●​ India Post Payments Bank (IPPB) has been
stake in ITD Cementation India for ₹5,757 established under the Department of Posts,
crore. Ministry of Communication with 100 per
●​ This move strengthens Adani’s position in cent equity owned by Government of India.
the infrastructure and construction sector ●​ IPPB was launched on September 1, 2018.
while intensifying competition with ●​ R. Viswesvaran, MD and CEO of India Post
UltraTech Cement. Payments Bank
MobiKwik Becomes First Fintech To Fully Roll Out Sebi launches digital knowledge repository
CBDC Dharohar on Republic Day
●​ MobiKwik has become the first fintech in ●​ On Republic Day, Sebi launched a digital
India to launch a full-scale Central Bank knowledge repository called 'Dharohar -
Digital Currency (CBDC) wallet, e-rupee Milestones in the Indian securities market'.
(e₹), in collaboration with the Reserve Bank ●​ It showcases the history and evolution of
of India (RBI) and Yes Bank. the Indian securities market using an
●​ The e₹ wallet, now available to all Android interactive website with significant events,
users of MobiKwik, enables peer-to-peer 3D galleries, and over 3,000 assets
(P2P) and peer-to-merchant (P2M) including articles, interviews and videos.
transactions.
 December 2024-January 2025 Banking News
●​ Dharohar has been designed to document ●​ The Nippon India Large Cap Fund GIFT is a
and showcase this rich heritage and feeder fund that will invest in the Nippon
evolution of the Indian securities market. India Large Cap Fund.
●​ The repository, Dharohar, can be accessed ●​ What is Feeder Fund?
at www.mism.org. ●​ A feeder fund is an investment fund that
invests most of its capital into a master
fund, which is an umbrella fund that
performs all the investments.
●​ About GIFT City:
●​ Gujarat International Finance Tec-City
●​ Establishment: 10 April 2015
Centre Releases ₹1.73 Trillion to States to Boost ●​ District: Gandhinagar
Capital Spending ●​ Tapan Ray is the Managing Director and
●​ The Centre has released tax devolution of Group CEO of GIFT City.
Rs 1.73 trillion to state governments Indian economy expected to grow at 6.8 % in
against the devolution of Rs 89,086 crore in FY2025-26: Bank of Baroda
December 2024. ●​ Projection by: Bank of Baroda
●​ This move aims to boost states' capital ●​ Projection rate: 6.8% (FY2025-26)
expenditures, fund welfare projects, and ●​ Reason: Strong private consumption, robust
stimulate economic growth. high-frequency indicators like GST
●​ Highest allocation (States): Uttar Pradesh, collections and services PMI, and improved
Bihar, Madhya Pradesh, and West Bengal agricultural output.
●​ Budget Estimates for FY25 have pegged ●​ Bank of Baroda:
states' share at Rs 12.2 trillion, an increase ●​ MD & CEO: Debadatta Chand
of over 10.4% to the amount devolved ●​ HQ: Vadodara, Gujarat
according to Revised Estimates for FY24. ●​ Predecessor: Vijaya Bank + Dena Bank
●​ The final report of the 15th Finance ●​ The tagline of Bank of Baroda is "India's
Commission had recommended the transfer International Bank".
of 41% to the states after Jammu and Sebi proposes to double FPI disclosure threshold to
Kashmir was carved out into two union Rs 50,000 crore
territories. ●​ Proposal by: SEBI
●​ Prior to this, the 14th Finance Commission ●​ Proposal:
had recommended the devolution of 42% ●​ Increase in the investment threshold for
of central taxes to states. granular disclosures by foreign portfolio
Nippon Life India AMC announces its first fund investors (FPIs).
from GIFT City ●​ Present threshold: Rs 25,000 crore
●​ Launch of: Nippon India Large Cap Fund ●​ Proposed threshold: Rs 50,000 crore
GIFT ●​ Reason of this move: Substantial rise in
●​ Launched by: Nippon Life India Asset daily market turnover
Management Limited ●​ Existing framework:
●​ Launched from: GIFT City, Gujarat ●​ FPIs holding more than 50% of their Indian
●​ Aim: To provide global investors access to equity assets under management (AUM) in
high-quality large-cap stocks in India, a single Indian corporate group or
tapping into the growing interest in Indian exceeding Rs 25,000 crore in Indian equity
markets. AUM are required to provide detailed
disclosures of their holdings.
 December 2024-January 2025 Banking News
SEBI renews recognition to AMC Repo Clearing for ●​ Bank of Baroda (BoB) is providing
1 year to clear transactions enhanced banking services for the Maha
●​ Context: SEBI has renewed its recognition Kumbh Mela 2025, including:
of AMC Repo Clearing Ltd as a clearing ●​ AI-driven customer support,
corporation ●​ Forex facilities,
●​ Reason: For clearing and settling ●​ Digital payment solutions
transactions in repo and reverse repo in ●​ BoB aims to leverage this event to promote
debt securities. digital payments and enhance customer
●​ Validity: 1-year engagement.
●​ Till: January 16, 2026 ●​ The Bank has developed a GenAI-powered
●​ Effectve from: January 17, 2025 Virtual Relationship Manager, Aditi, to
●​ Under the rules, AMC Repo Clearing Ltd will answer banking-related queries and
not undertake any activity except that of enhance customer service to the pilgrims
clearing and settling of transactions in repo visiting Mahakumbh.
and reverse repo in the debt securities that ●​ BoB
are dealt with or traded on a recognised ●​ Headquarters: Alkapuri, Vadodara
stock exchange. ●​ Founded: 20 July 1908, Vadodara
Sebi modifies credit rating agency rules to enhance ●​ Founder: Sayajirao Gaekwad III
ease of doing business ●​ Hasmukh Adhia (Chairman)
●​ Context: Revised timelines for credit rating ●​ M.D. and CEO : Debadatta Chand
agencies (CRAs) ●​ IREDA
●​ Notified by: SEBI ●​ Indian Renewable Energy Development
●​ Reason: To enhance the ease of doing Agency
business ●​ 1987
●​ Previous timeline: "days" for compliance ●​ Chairman and MD : Pradip Kumar Das
deadlines ●​ Keyword : Renewable
●​ Revised timeline: "working days" for ●​ India adds record renewable energy
compliance deadlines capacity of about 30 GW in 2024, it is more
●​ Under the revised rules, credit rating than 113 per cent higher than 13.75 GW
agencies are required to publish press recorded in 2023
releases on rating actions within seven ●​ Waaree Energies inks pact to acquire Enel
working days of the relevant event, Green Power India for Rs 792-cr
replacing the previous mandate of seven ●​ Union Minister Piyush Goyal Launches
calendar days. Bharat Cleantech Manufacturing Platform
●​ Similarly, for reviewing ratings in cases of to Boost India’s Renewable Energy
delays in debt servicing, the timeline has ●​ The new platform was announced by Goyal
been adjusted to two working days from at the Bharat Climate Forum 2025 event in
two calendar days. New Delhi on (January 11).
●​ Aim: To standardise rating processes and ●​ Bharat Climate Forum 2025 a national
publication protocols. platform dedicated to unifying stakeholders
●​ These changes follow recommendations from policy, industry, finance, and research
from a working group on CRAs that to accelerate cleantech manufacturing in
highlighted the challenges posed by India — was launched on 10th January.
existing timelines, especially during
non-working days.
Bank of Baroda to provide AI-driven support for
Maha Kumbh 2025
 December 2024-January 2025 Banking News
IBBI mandates eBKray auction platform to sell
assets under liquidation
●​ The Insolvency and Bankruptcy Board of
India (IBBI) has mandated the exclusive use
of the eBKray auction platform to sell assets
under the liquidation process from April 1.
●​ The eBKray is now known as Bank Asset
Auction Network.
●​ It is a property listing and e-auction
platform designed for banks and lending
institutions, addressing recovery of
non-performing asset (NPA) loans through
efficient property auctions.
World Bank to Support India’s Meghalaya State
●​ IBBI directed the IPs (insolvency
●​ The World Bank’s Board of Executive
professionals) to list unsold assets from
Directors approved a new project in
ongoing liquidation cases for auction on the
Meghalaya.
eBKray platform by March 31.
●​ Aim: To better equip 500,000 adolescents
●​ eBKray platform run by PSB Alliance
to make the transition from school to work
●​ eBKray has been conducting auctions for
– by reducing dropouts, improving learning
assets, mortgaged to state-run banks, under
outcomes and offering guidance for
the SARFAESI Act for the past five years.
accessing jobs and starting businesses.
●​ IBBI has tied up with IBA for the usage of
●​ The $35 million Meghalaya Multisectoral
eBKray platform.
Project for Adolescent Wellbeing,
●​ Summary : The Insolvency and Bankruptcy
Empowerment and Resilience (MPOWER)
Board of India has required the use of the
will help in strengthening learning
eBKray auction platform for selling assets
outcomes for adolescents in grades 6-12, by
under liquidation from April 1.
closing gaps in students’ reading and math
●​ Insolvency professionals must list all
skills.
unsold assets on the platform by March 31.
●​ The $35 million variable spread loan from
●​ The platform is being piloted and already
the International Bank of Reconstruction
has 210 listed assets.
and Development (IBRD) has a final
●​ Insolvency and Bankruptcy Board of India
maturity of 15 years, including a grace
(IBBI):
period of 5 years.
●​ It was established on 1st October 2016
●​ President: Ajay Banga
under the Insolvency and Bankruptcy Code
●​ Headquarters: Washington, D.C., United
(IBC), 2016.
States
●​ It is responsible for the implementation of
●​ Founded: July 1944, Bretton Woods, New
the IBC.
Hampshire, United States
●​ The IBC amends and consolidates the laws
●​ CFO: Anshula Kant
relating to insolvency resolution of
●​ Meghalaya:
individuals, partnership firms and
●​ Capital: Shillong
corporate persons in a time-bound manner.
●​ Chief minister: Conrad Sangma
●​ Chairman : Ravi Mittal
●​ Governor: C. H. Vijayashankar
●​ Executive Director : Kulwant Singh
●​ Before was: Part of Assam
GMR Secures INR 2128 Crore Loan from IREDA
●​ Bird: Hill myna
●​ GMR Power and Urban Infra Ltd has
secured approval from the Indian
 December 2024-January 2025 Banking News
Renewable Energy Development Agency ●​Founded: 20 July 1908
Limited (‘IREDA’) to part finance the project ●​HQ: Vadodara, Gujarat
to install and maintain 75.69 lakh smart ●​MD & CEO: Debadatta Chand
meters across various zones in Uttar ●​The tagline of Bank of Baroda is "India's
Pradesh. International Bank"
●​ The project, estimated to cost ₹3,467.02 Wholesale price inflation rises to 2.37% in
crore, is being executed in consortium with December 2024
Bosch Global Software Technologies Private ●​ Wholesale price inflation rose to 2.37% in
fLtd (Bosch) as the technical partner. December 2024.
●​ It covers key zones, including Varanasi, ●​ Reason: Due to spike in prices of non-food
Azamgarh, Prayagraj, and Mirzapur under articles, manufactured items as well as fuel
Purvanchal Vidyut Vitran Nigam Limited and power, even though food items saw
(PUVNL) as well as the Agra and Aligarh marginal easing
zones under Dakshinanchal Vidyut Vitran ●​ The base year for the Wholesale Price Index
Nigam Limited. (WPI) in India is 2011-12.
Suryoday Small Finance Bank Collaborates with ●​ This series became effective in April 2017
Tata Digital to Offer Fixed Deposit Services
●​ Partnership between: Suryoday Small
Finance Bank (SSFB) + Tata Digital
●​ Aim: To extend its FD offerings
●​ SSFB’s FD offering will be available on the
Tata Neu platform, where customers can
invest in fixed deposits at interest rates of
up to 9.1% without the need for a savings
account.
●​ Customers can start investing with as little
as Rs 1,000 and the onboarding process can
be completed in a few minutes.
●​ Suryoday SFB offers interest rates between
4% and 8.60% for general citizens for
BoB raises Rs 5,000 crore through 10-year
tenures ranging from 7 days to 10 years.
infrastructure bond
●​ For senior citizens, the bank offers 4.50%
●​ State-owned Bank of Baroda (BoB) raised
to 9.10% on fixed deposit tenures
Rs 5,000 crore through 10-year
Bank of Baroda Joins Forces with Truworth
infrastructure bonds at a coupon rate of
Wellness
7.23 per cent.
●​ Partnership: Bank of Baroda + Truworth
●​ BoB’s infrastructure bond, rated AAA by
Wellness
CRISIL and India Ratings.
●​ Reason: To nurture the emotional, mental
●​ Additionally, Indian Railway Finance
and psychological wellbeing of its
Corporation (IRFC) raised Rs 2,780 crore
75,000-plus employees and their family
through ten-year bonds at a cut-off rate of
members.
7.25 per cent.
●​ The Bank has partnered with Truworth
Surpassing Japan, India to become 4th largest
Wellness to introduce an enhanced version
economy by 2026
of its "Employee Assistance Program” (EAP)
●​ India's economy is expected to become the
– a pioneering initiative in the corporate
fourth largest in the world by 2026,
wellness space.
surpassing Japan.
●​ Bank of Baroda:
 December 2024-January 2025 Banking News
●​ Suggested by: PHD Chamber of Commerce ●​ November 2024: 5.48%
and Industry (PHDCCI) ●​ It is based on the consumer price index
●​ Reason: As it projected the nation's GDP to (CPI).
grow 6.8 per cent in the current financial ●​ Data released by: National Statistics Office
year ending March and 7.7 per cent in (NSO)
FY26. ●​ Base year: 2012
NPCI International, UAE fintech partner to enable Sebi proposes mandatory demat issuance for
UPI for Indian travellers securities
●​ NPCI International Payments Ltd (NIPL), ●​ Securities and Exchange Board of India
the international arm of the National (SEBI) has proposed mandating listed
Payments Corporation of India (NPCI), has companies to issue securities only in demat
partnered with a United Arab Emirates form following the stock split, consolidation
(UAE)-based payment solutions provider. of the face value of shares, and merger or
●​ Reason: To offer Unified Payments Interface demerger.
(UPI) as a transaction method for Indians ●​ The new proposal aligns with its constant
visiting the West Asian country. endeavour to encourage demat holding of
●​ The collaboration with fintech firm Magnati securities.
will enable QR-based UPI merchant ●​ If an investor does not have a demat
payments through point-of-sale (POS) account, the issuer companies will be
terminals across the UAE. required to open a separate demat account
●​ Initially, UPI acceptance will be available at with a suitable ledger of ownership or a
Dubai Duty Free. suspense escrow account for dealing with
●​ NIPL is also targeting international use such securities.
cases such as peer-to-peer (P2P) and ●​ Benefits of Dematerialisation of securities:
peer-to-merchant (P2M) transactions, Reduction of frauds and forgery,
mirroring UPI’s offerings in India. elimination of loss and damage of
Bank of Baroda launches ‘bob Liquid FD’ securities, faster and more efficient
●​ Bank of Baroda has introduced “bob Liquid transfers, improved
Fixed Deposits” as an alternative to the Irdai expands scope of regulatory sandbox
traditional fixed deposit (FD). framework to foster innovation
●​ It is combining the benefits of FD interest ●​ Irdai has expanded the scope of regulatory
rates with the convenience of easy liquidity sandbox framework to encourage proposals
associated with a Savings Account. that foster innovation, improve efficiency
●​ It has features such as flexible deposit and ease of doing business.
amounts starting at ₹5,000, tenure ranging ●​ The IRDAI (Regulatory Sandbox)
from 12 to 60 months and partial Regulations, 2025 is now more of
withdrawals accepted in multiples of principle-based whereby operational
₹1,000. aspects will be issued through a master
●​ Further, no penalty is levied for premature circular.
withdrawals on Fixed Deposits up to ₹5 ●​ A notable addition is an enabling provision
lakh that have completed a tenor of at least to file Inter-Regulatory Sandbox proposals,
12 months. cutting across more than one financial
India’s retail inflation eases to a four-month low of sector.
5.22% in Dec ●​ Regulatory sandbox usually refers to live
●​ Retail inflation has been recorded testing of new products or services in a
four-month low of 5.22% in December controlled/test regulatory environment for
2024, due to ease in food inflation which regulators may (or may not) permit
 December 2024-January 2025 Banking News
certain relaxations for the limited purpose ●​ The sector had raised USD 5.6 billion in
of the testing. 2022.
●​ The regulation mandates electronic ●​ The highest funding of USD 805 during
record-keeping with robust security and 2024 was received by the sector in the third
privacy measures, and requires regulated quarter which was 61 per cent higher on a
entities to adopt data governance year-over-year (Y-o-Y) basis.
framework and implement board-approved Dunzo app and website shut down after cofounder
policies for record maintenance. Kabeer Biswas joins Flipkart
IDBI Bank unveils Chiranjeevi Super Senior Citizen ●​ Reliance-backed hyperlocal delivery app
FD Dunzo has gone offline following the
●​ IDBI Bank has introduced a new specialised departure of cofounder and CEO Kabeer
fixed deposit scheme named, 'IDBI Biswas after he joined Flipkart.
Chiranjeevi-Super Senior Citizen FD.' Tata Capital raises $400 million via bonds
●​ Customer: Aged 80 years and above ●​ India's Tata Capital has raised $400 million
●​ The 555-day tenure under this scheme through the sale of US dollar-denominated
offers an interest rate of 8.05% per annum, bonds maturing in three-and-a-half years.
making it one of the most competitive ●​ The non-banking finance company will pay
options in the market for super senior a coupon of 5.3890 per cent on what is its
citizens. maiden dollar-bond issue.
Government announces setting up of 8th Pay ●​ Due to healthy investor interest, the deal
Commission was launched with an initial price guidance
●​ The government announced the setting up of US Treasury yield plus a spread of 125
of the 8th Pay Commission for the Central basis points, but strong demand lifted the
government employees and pensioners. final pricing to Treasury yield plus 92 bps.
●​ The term of the 7th Pay Commission is ●​ The transaction drew global investors from
going to end in 2026. Asia and EMEA and included asset
●​ The setting up of the 8th Pay Commission managers, insurers, banks and others, the
now will give enough time to receive company said.
recommendations of the Pay Panel. Bank of India Plans Its First Dollar Loan of $400
●​ The appointment of the Chairman and two Million in Over Ten Years
members of the Commission will be made ●​ Bank of India is marketing its first dollar
soon. syndicated loan since 2012 of as much as
Tracxn’s Annual India Fintech Report 2024 $400 million, at a time when more Indian
●​ India ranked third globally in terms of borrowers are tapping global credit
funding received in the fintech segment markets.
despite a decline of 33 per cent on a ●​ The Indian lender is raising the loan — split
year-over-year basis to USD 1.9 billion in into three- and five-year tranches — via its
2024. branch located in Gujarat International
●​ Data by: Tracxn's Annual India fintech Finance Tec-City.
report 2024 ●​ CTBC Bank Co. and Standard Chartered Plc
●​ The sector witnessed a decline in funding, are the arrangers of the facility.
driven by a broader slowdown in demand 3 Indian Banks Rank Among Top 25 Global Banks
and geopolitical headwinds by Market Cap, with ICICI as a Standout Performer
●​ The Indian fintech ecosystem has solidified ●​ Three Indian banks -- HDFC Bank, ICICI
its position as one of the top three globally Bank, and the State Bank of India (SBI) --
funded fintech ecosystems in 2024, trailing ended the fourth quarter (Q4) of 2024 at
only the US and the UK. the 13th, 19th, and 24th spots in the top 25
 December 2024-January 2025 Banking News
global banks by market capitalisation, ●​ Viacom18 Media has become a direct
respectively subsidiary of Reliance Industries following
●​ While HDFC Bank ended Q4 2024 with the conversion of over 24.61 crore
$158.5 billion in market cap, ICICI Bank had compulsorily convertible preference shares
a market cap of $105.7 billion, and the SBI, (CCPS) into an equivalent number of equity
$82.9 billion, according to a report by shares.
GlobalData, a leading data analytics and ●​ Earlier, Viacom18Media was a material
research company. subsidiary of Network18 Media &
●​ Indian banks demonstrated resilience, with Investments Ltd, a subsidiary of Reliance
ICICI Bank emerging as a standout Industries Ltd (RIL).
performer, with its market cap growing by Federal Bank Launches FedOne with FinnAxia for
25.8 per cent to $105.7 billion, highlighting Digital Banking
the strength of India's expanding digital ●​ Federal Bank has launched FedOne™.
banking and credit ecosystem. ●​ The bank has implemented Nucleus
Decline in India’s rural poverty from 25.7% to Software’s cutting-edge transaction
4.86% in last 12 years banking platform FinnAxia®.
●​ Report Title: Consumption Expenditure ●​ This partnership signifies a transformative
Survey moment in modernizing Federal Bank’s
●​ Report by: State Bank of India’s research corporate banking services, focusing on
●​ Highlights: delivering exceptional value to corporate
●​ India’s rural poverty has declined and SME customers.
significantly to 4.86% in the financial year ●​ By implementing this transaction banking
2023-24, compared to 25.7% in the platform, Federal Bank is poised to
financial year 2011-12. capitalize on emerging business
●​ Urban poverty has fallen to 4.09% from opportunities while establishing itself as a
13.7% over the last twelve years. market leader in providing swift, reliable,
●​ The sharp decline in the rural poverty ratio and innovative financial solutions to its
is due to higher consumption growth in the clients.
lowest 0-5 per cent decile, along with ●​ Headquarters: Aluva
significant government support. ●​ CEO: Krishnan Manian
●​ At an aggregate level, the report projected Reliance Industries raises $3 bn from 11 banks in
that poverty rates in India could now be in dual-currency loan deal
the range of 4 per cent-4.5 per cent, with ●​ Loan raised by: Reliance Industries Limited
minimal extreme poverty remaining. (RIL)
●​ The research also highlighted that the gap ●​ Raised amount: $3 billion
between rural and urban monthly per ●​ Raised from: Consortium of 11 banks
capita consumption expenditure (MPCE) ●​ Key Banks:
has now narrowed to 69.7 per cent, a sharp ●​ Bank of America (Largest share of the loan
decline from 88.2 per cent in 2009-10. at $343 million)
●​ This improvement is largely attributed to ●​ India’s State Bank of India ($275 million)
government initiatives such as Direct ●​ Other 9 Banks: DBS Bank, HSBC, Japan’s
Benefit Transfers (DBT), the development MUFG, Standard Chartered, Mizuho Bank,
of rural infrastructure, augmenting farmers’ SMBC, First Abu Dhabi Bank, Citibank, and
incomes, and significantly improving rural Credit Agricole CIB
livelihoods. ●​ Loan pricing and terms
Viacom18 becomes subsidiary of Reliance ●​ The three-month SOFR rate stood at
Industries approximately 4.80% in mid-December.
 December 2024-January 2025 Banking News
●​ With an additional 120 basis points, the ●​ December 2024 demand: 8.3%
dollar-denominated loan is priced at ●​ In November 2024, work demand was
around 6%. almost 4 per cent more than the same
●​ The yen-denominated portion of the loan is month in 2023.
priced at 75 basis points above the ●​ In 2024-25 (FY25), November and
three-month Tokyo Interbank Offer Rate December have been the only two months
(TIBOR), the Japanese benchmark rate. when the Y-o-Y growth in demand stood in
Securitisation Volume In India Estimated At Rs positive territory.
68,000 Cr In Q3 FY25: ICRA ●​ MGNREGA budget FY25: Rs 86,000 crore
●​ Estimate by: ICRA credit rating agency ●​ MGNREGA:
●​ Securitisation volumes topped Rs 68,000 ●​ Bill published on: 22 March 2005
crore in October-December FY25 (Q3FY25). ●​ Enacted by: Parliament of India
●​ Reason: Increased participation by banks ●​ Introduced by: Raghuvansh Prasad Singh,
●​ Of the Rs 68,000 crore, ICRA estimates, Minister of Rural Development
●​ Rs 25,000 crore is on account of private ●​ Passed: 23 August 2005
banks acting as originators Remaining Rs HDFC Bank gets RBI nod to pick up 9.5% stake in
43,000 crore has been securitised by Kotak Bank, AU and Capital SFBs
non-banking financial companies (NBFCs). ●​ Nod from: Reserve Bank of India (RBI)
●​ Note: ●​ Approval to: HDFC Bank
●​ Of the banks, securitisation by HDFC Bank ●​ Approval for: To pick up an aggregate stake
is nearly Rs 12,000 crore, via pass-through of up to 9.5% in Kotak Mahindra Bank, AU
certificates (PTCs) as against approximately Small Finance Bank and Capital Small
Rs 9,000 crore in Q2FY25. Finance Bank.
●​ Securitisation ●​ Approval Validity: January 2, 2026
●​ It is a financial process where a lender ●​ HDFC Bank In News
transfers future receivables, such as loan ●​ HDFC Bank Divests 100% Stake in HDFC
repayments, to another party in exchange Edu for ₹192 Crore
for immediate upfront cash. ●​ Pragati Savings Account
●​ ICRA ●​ HDFC Opens First Singapore Branch to
●​ Originally named Investment Information Expand Global Presence
and Credit Rating Agency of India Limited ●​ Small Finance Bank In News
(IICRA India). ●​ Slice Completes Merger with North East
●​ 1991 Small Finance Bank
●​ HQ : Gurgaon, Haryana ●​ BharatPe to Sell 25% Stake in Unity Small
●​ Ramnath Krishnan, Managing Director & Finance Bank
Group CEO ●​ Microfinance Firm VFS Capital Reapplies
●​ Seven credit rating agencies in India. for Small Finance Bank License
●​ They are CRISIL; CARE; ICRA; SMREA; EPFO Launches Centralised Pension Payments
Brickwork Rating; India Rating and System
Research Pvt. Ltd and Infomerics Valuation ●​ Launch of: Centralised Pension Payments
and Rating Pvt. Ltd. System
Work demand under MGNREGA rises 8.3% in ●​ Launched by: Employees’ Provident Fund
December 2024 Organisation (EPFO)
●​ Data for: December 2024 ●​ Status: Fully operational
●​ Context: Increase in work demand under ●​ Beneficiary: Pensioners
the flagship Mahatma Gandhi National ●​ The first pilot of CPPS was successfully
Rural Employment Guarantee Act completed in October 2024 in Karnal,
 December 2024-January 2025 Banking News
Jammu and Srinagar regional offices ●​ TPAPs enable users to conduct transactions
through the disbursement of about ₹11 on India’s real-time payments system, the
core to more than 49,000 EPS pensioners. Unified Payments Interface (UPI).
●​ Total pension disbursing Regional offices of ●​ Bharat connect was earlier known as
EPFO for December 2024: 122 pension Bharat Bill Payment System (BBPS).
●​ What is CPPS? ●​ It is an integrated bill payment system in
●​ The Centralised Pension Payments System India.
(CPPS) is a paradigm shift from the existing ●​ NPCI functions as the authorized Bharat
pension disbursement system, which is Bill Payment Central Unit (BBPCU).
decentralised. ●​ Launched in 2013.
●​ Under the existing system, each of the SBI Life picks up 10% stake in Bima Sugam India
EPFO's zonal/regional offices maintains Federation
separate agreements with only three to four ●​ SBI Life has approved picking up of 10%
banks. stake in Bima Sugam India Federation for
●​ However, with the introduction of CPPS, the ₹6.6 crore.
pensioner will now be allowed to take ●​ Bima Sugam India Federation, an unlisted
his/her pension from any bank. company, incorporated on June 18, 2024,
●​ Also, the pensioners will not be required to aims to create and operate a centralised
visit the bank for any verification at the marketplace of insurance products and
time of commencement of pension. services.
●​ Under the CPPS, the pension will be ●​ The board in its meeting approved an
immediately credited upon release. aggregate investment in Bima Sugam not
●​ EPFO exceeding 10 per cent of the paid-up equity
●​ Employees' Provident Fund Organisation share capital of Bima Sugam, for cash, at
●​ 4 March 1952 par, subject to commensurate increase in
●​ New Delhi the authorised share capital of Bima Sugam.
●​ Ramesh Krishnamurthi ●​ Bima Sugam An online platform designed to
●​ EPFO 3.0 rollout by June help customers choose suitable insurance
●​ EPFO will issue ATM cards to its members schemes from multiple options provided by
following the launch of EPFO 3.0 various companies.
●​ The withdrawals will be restricted to 50% ●​ Brokers and agent bodies will each own a
of the total balance in the beneficiary's 2.5% stake.
account. ●​ Apex decision-making body – IRDAI
UPI moment for B2B payments: Bharat Connect (Insurance Regulatory and Development
likely to go live by March Authority of India)
●​ National Payments Corporation of India’s ●​ Bima Sugam:
(NPCI’s) bill-aggregation platform Bharat ●​ It is a unified platform that combines
Connect is expected to roll out its Bharat insurers and distributors. It simplifies
BillPay for Business offering by March policy purchases, service requests, and
2024. claims settlement for customers in one
●​ Bharat Connect, which was earlier known convenient portal.
as Bharat BillPay, will authorise companies ●​ Bima Vistar:
to handle business-to-business (B2B) ●​ It is a comprehensive bundled policy that
payments following a model similar to the covers life, health, property, and accidents.
issuances the NPCI provides to third-party It provides defined benefits for each risk
application providers (TPAPs). category, ensuring quick claim payouts
without surveyors.
 December 2024-January 2025 Banking News
●​ Bima Vaahaks: contactless payment solution for public
●​ It is a women-centric workforce operating transit.
at the Gram Sabha level. They will educate ●​ This partnership allows commuters to
and convince women about the benefits of travel across Chennai Metro, MTC buses,
comprehensive insurance, particularly and Chennai Metro parking facilities using a
Bima Vistar. single card.
Manufacturing PMI falls to 12-month low of 56.4 in ●​ RuPay On-The-Go simplifies the transit
Dec 2024 experience by addressing common issues
●​ Index: HSBC India Manufacturing like long queues, the need for exact change,
Purchasing Managers' Index (PMI) and complex ticketing processes.
●​ Compiled by: S&P Global SBI lowers India's FY25 GDP growth forecast to
●​ India's manufacturing sector growth 6.3%
slipped to 56.4 in December 2024 from ●​ Forecast by: State Bank of India (SBI)
56.5 in November 2024. ●​ India's GDP growth in FY25 to be 6.3 per
●​ Indicate: Weaker improvement in operating cent
conditions ●​ "Downward bias"
●​ Note: A figure above 50 in the index ●​ Reason: Due to several challenges affecting
denotes expansion in activity and below it economic growth.
signifies contraction. ●​ The projection is also below the National
Nomura projects growth will slow down to 6% in Statistical Office's (NSO) latest estimate of
FY25 6.4 per cent rowth seen in this fiscal year,
●​ Projection by: Global research agency which is a four-year low.
Nomura ●​ About SBI:
●​ Projected for: India GDP Growth ●​ Founded: 1 July 1955
●​ FY25: 6% (cut by 70 basis points) ●​ Headquarters: Mumbai
●​ FY2026 Forecast: 5.9 per cent ●​ Chairman: Challa Sreenivasulu Setty
●​ CPI (Consumer Price Index) inflation: 4.9 Exim Bank raises $1 bn via 10-year dollar bonds
per cent in FY25F and fall further to 4.3 per ●​ Exim Bank has raised $1 billion through
cent in FY26F. 10-year senior secured dollar bonds.
BharatPe to Sell 25% Stake in Unity Small Finance ●​ The first dollar bond issuance by an Indian
Bank entity in 2025.
●​ Name of Company: Resilient Innovations, ●​ The bonds were issued at the tightest-ever
the parent company of BharatPe spread of 100 basis points over 10-year US
●​ Selling: 25% of its 49% stake in Unity Small Treasuries.
Finance Bank (Unity SFB). ●​ BofA Securities, Citigroup, HSBC, J.P.
●​ Aim: To raise anywhere around $800 Morgan, and Standard Chartered Bank were
million the joint lead managers and joint
●​ The move is in line with regulatory bookrunners for the offering.
requirements to reduce its holding in the ●​ EXIM Bank:
bank to 10% by 2029, irrespective of the ●​ Founded: 1 January 1982
listing of Unity SFB. ●​ Headquarters: Mumbai
NPCI and MTC partner to offer mobility across Punjab & Sind Bank to roll out instant loan scheme
Chennai through RuPay On-The-Go for MSMEs based on GST return
●​ The National Payments Corporation of ●​ Name of Bank: Punjab & Sind Bank
India (NPCI) has teamed up with the ●​ Launch: Instant loan scheme up to Rs 25
Metropolitan Transport Corporation (MTC) lakh for the MSME sector
to introduce RuPay On-The-Go, a
 December 2024-January 2025 Banking News
●​ Aim: To push credit through its digital financing solutions for MSMEs investing in
platform commercial rooftop solar installations.
●​ The bank has already introduced digital ●​ The program targets financing 3,600 kW of
home loan and vehicle loan schemes under rooftop solar installations annually,
which in-principle approval to an benefiting numerous MSMEs while cutting
application is given within 15 minutes. over 2,500 tons of CO2 emissions each
●​ P&S Bank: year—accelerating decarbonisation and
●​ Headquarters: New Delhi fostering sustainable growth.
●​ CEO: Swarup Kumar Saha IDFC FIRST Bank launch of india’s first AI-powered
RBI lifts ban on NBFCs Asirvad Micro Finance and holographic avatar of Amitabh Bachchan
DMI Finance ●​ IDFC FIRST Bank launched the
●​ The Reserve Bank of India lifted first-of-its-kind AI-Powered holographic
restrictions on Asirvad Micro Finance and avatar of its brand ambassador and
DMI Finance. legendary actor Amitabh Bachchan.
●​ These restrictions had been imposed in ●​ This initiative comes along the lines of its
October 2024. customer-first engagement approach,
●​ Reason: Due to non-compliance with which enables personalised assistance and
regulatory guidelines. immersive service experience.
●​ After remedial measures and compliance ●​ IDFC FIRST Bank
reports were submitted by the companies, ●​ October 2015
the central bank reviewed and approved ●​ Mumbai
the changes, allowing them to resume loan ●​ V Vaidyanathan
sanctioning and disbursal. ●​ IDFC FIRST Bank has become the first
●​ The business restrictions that were Indian bank to offer real-time tracking for
imposed on two other NBFCs on Reserve money sent abroad. This service, developed
Bank’s orders dated October 17, 2024, viz. in partnership with SWIFT.
Navi Finserv Pvt Ltd and Arohan Financial ●​ Society for Worldwide Interbank Financial
Services Limited have been lifted vide our Telecommunications
orders dated December 2, 2024 and PhonePe, ICICI launch Rs 59 insurance plan for
January 3, 2025, respectively. train and bus travellers
●​ The NBFC-MFI is a non-deposit taking ●​ PhonePe in partnership with ICICI Lombard
financial company. launched insurance coverage.
●​ Minimum Net Owned Funds (NOF) of Rs. 5 ●​ It is designed for travellers attending the
crore. upcoming Maha Kumbh Mela from January
●​ An NBFC-ICC, or Non-Banking Financial 13 to February 26, 2025.
Company - Investment and Credit Company, ●​ The insurance plan is available in two
is a financial institution that primarily deals variants:
with asset finance. ●​ Rs 59 per traveler for individuals traveling
●​ Asset finance is a finance option that allows by train or bus
business to grow by acquiring much needed ●​ Rs 99 per traveler for individuals traveling
equipment such as plant machinery, by domestic flights.
vehicles, aircrafts and more ●​ ICICI Bank
Federal bank partners with Ecofy to tackle green ●​ Headquarters: Mumbai
financing for MSMEs ●​ Pradeep Kumar Sinha (Part-time Chairman)
●​ Federal Bank partnered with Ecofy, India’s ●​ Sandeep Bakhshi (MD & CEO)
first green-only NBFC, backed by SEBI Eases Settlement Norms for Inactive
Eversource Capital, to offer innovative Brokerage Accounts
 December 2024-January 2025 Banking News
●​ Under the updated norms, brokerage ●​ Similarly, all research analysts must meet
accounts deemed inactive—those with no the deposit requirements by April 30, 2025.
trades for 30 calendar days—will now have JPMorgan joins major U.S. banks in exiting the
their funds returned on the next scheduled NZBA
monthly settlement date. ●​ JPMorgan Chase has become the latest
●​ This change applies irrespective of whether major U.S. bank to leave the Net Zero
clients opt for monthly or quarterly Banking Alliance (NZBA), a coalition of
settlement cycles. financial institutions committed to aligning
●​ Previously, brokers were required to return their lending and investment portfolios
funds within three working days of with net-zero carbon emissions by 2050.
identifying inactivity. ●​ What is Net Zero Banking Alliance?
●​ However, the Brokers’ Industry Standards ●​ It is a group of leading global banks
Forum (ISF) highlighted the operational committed to aligning their lending,
difficulties of adhering to this timeline, investment, and capital markets activities
even though client funds remained securely with net-zero greenhouse gas emissions by
held by clearing corporations. 2050.
●​ SEBI’s circular addressed these challenges ●​ NZBA’s framework, guidance, and learning
by aligning settlement timelines with the opportunities support members to design,
stock exchanges’ annual calendars. set, and achieve credible science-based
Bajaj Broking partners with Tamilnad Mercantile net-zero targets for 2030 or sooner that
Bank deliver value for their investors and clients.
●​ Bajaj Broking has entered into a strategic BIH & IIMA Ventures Launch Swanari TechSprint
partnership with Tamilnad Mercantile Bank 3.0
(TMB) to introduce a comprehensive 3-in-1 ●​ Launch of: Swanari TechSprint 3.0
account solution - (1) Integrating banking, ●​ Launched by: Reserve Bank Innovation Hub
(2) Broking, and (3) Investment services and IIMA Ventures
●​ Aim: To offer Tamilnad Mercantile Bank ●​ Aim: To foster women-centric fintech
customers a seamless online trading startups in India.
experience through Bajaj Broking’s ●​ The programme provides a platform for
platform. fintech innovators to conceptualise,
●​ About TMB develop, and scale solutions that address
●​ Headquarters: Thoothukudi the unique financial needs of women.
●​ CEO: K V Rama Moorthy ●​ The Reserve Bank Innovation Hub (RBIH) is
●​ Founded: 11 May 1921 a wholly-owned subsidiary of the Reserve
Sebi issues new guidelines for research analysts, Bank of India (RBI).
investment advisers Emami rebrands ‘Fair and Handsome’
●​ Guidelines on the regulatory framework ●​ FMCG maker Emami Ltd is rebranding of its
for research analysts and investment major male grooming brand “Fair and
advisers. Handsome” to “Smart And Handsome.”
●​ Published by SEBI. ●​ Reason: To address the consumers
●​ Research analysts are required to maintain preference for “redefining fairness” and
a deposit based on their client base, ranging tapping into almost all segments of the
from Rs 1 lakh for up to 150 clients to Rs 10 highly-growing market.
lakh for over 1,000 clients. CRISIL unveils new brand identity
●​ Existing IAs must comply with the deposit ●​ Crisil Limited has unveiled its new brand
requirements by June 30, 2025. logo.
 December 2024-January 2025 Banking News
●​ New logo reflects ability to power ●​ KredX receives final approval from the
mission-critical decisions with confidence. Reserve Bank of India to commercially
●​ The new brand identity, ‘Crisil’ (earlier launch its Trade Receivables Discounting
written as CRISIL), reinforces the System (TReDS) platform, DTX.
company’s position as a global, ●​ With this approval, KredX became the fifth
insights-driven analytics firm, building on a RBI-regulated TReDS platform in India.
distinguished legacy of close to four ●​ DTX aims to address payment delays and
decades. working capital gaps in the MSME sector,
●​ Managing Director & CEO, Crisil: Amish promoting transparency, timely payments,
Mehta and liquidity.
PNB launches its first cybersecurity Hackathon ●​ The TReDS platform is a
2024-25 government-mandated initiative aimed at
●​ Punjab National Bank (PNB) has launched addressing the challenge of delayed
its first Cybersecurity Hackathon 2024-25 payments and working capital gaps in the
with the theme “Code Against Malware”. micro, small, and medium enterprise
●​ Aim: To combat the rising menace of (MSME) sector
cybercrime ●​ Manish Kumar, CEO & Co-founder of KredX
●​ This hackathon is also aimed to bring UCO Bank celebrates 83rd foundation day
together innovators, researchers, and ●​ Founded: January 6, 1943
academicians from across India to address ●​ Founder: Ghanshyam Das Birla
the growing threat of malware and ●​ Headquarters: Kolkata, West Bengal, India
strengthen the nation’s cybersecurity ●​ Ownership: Government of India
defences. ●​ Tagline: "Honours Your Trust"
●​ Key focus areas: Intelligence-powered Govt launches revamped portal ‘BAANKNET’ for
malware detection and removal, real-time e-auction of properties
threat monitoring and mitigation, ●​ Launch of: Revamped portal ‘BAANKNET’
ransomware resilience solutions, and ●​ Launched by: Secretary of the Department
next-generation antivirus tools and attack of Financial Services, M. Nagaraju
surface management ●​ Reason: For the e-auction of properties
India's economy may grow 6.6% in 2025, 6.7% in ●​ The platform consolidates information on
2026: UN Report e-auction properties from all public sector
●​ The United Nations flagship report “ World banks and offers a one-stop destination for
Economic Situation and Prospects 2025” buyers and investors to discover a wide
has predicted that the Indian economy is range of assets.
likely to grow by 6.6% in 2025 and 6.7 % in ●​ The introduction of the platform will aid
2026. the recovery process of PSBs, improve the
●​ The report expects the world economy to balance sheets of banks, and enhance credit
grow by 2.8 % in 2025. availability to businesses and individuals.
●​ The United Nations follows calendar years ●​ The listings in the portal include residential
(January-December) properties such as flats, independent
●​ Indian government follows a fiscal year houses, and open plots, as well as
April - March national accounting method. commercial properties, industrial land and
●​ The National Statistical Office (NSO) in its buildings, shops, vehicles, plant and
first advance estimates of gross domestic machinery, and agricultural and
product (GDP) for the fiscal year 2024-25 non-agricultural land.
has estimated a GDP growth of 6.4%. ●​ 1,22,500 properties properties have
KredX gets RBI nod to launch TReDS platform already been added to the auction.
 December 2024-January 2025 Banking News
●​ The listings in the portal include residential ●​ There was a 39% Year-on-Year growth in
properties such as flats, independent the transactions count and 28%
houses, and open plots, as well as Year-on-Year growth in the transaction
commercial properties, industrial land and amount.
buildings, shops, vehicles, plant and ●​ The average daily transaction amount has
machinery, and agricultural and reached 74 thousand 990 crore rupees last
non-agricultural land. month.
SBI launches innovation products to attract ●​ UPI In November 2024
deposits ●​ Volume : 15.48 billion
●​ The State Bank of India (SBI) has launched ●​ Value : 21.55 lakh crore
two new deposit schemes. ●​ The average daily transaction count during
●​ (1) Har Ghar Lakhpati December was 539.68 million, up from
●​ (2) SBI Patrons 516.07 million in November.
●​ Aim: To provide customers with greater
financial flexibility and enhanced value.
●​ Recognising the widespread aspiration for
financial security, Har Ghar Lakhpati a
pre-calculated recurring deposit scheme
designed to help customers accumulate Rs
1,00,000 or multiples thereof. Centre forms working group for base revision of
●​ The bank also introduced SBI Patrons, a WPI
specialised term deposit scheme tailored ●​ Formation of working group to revise the
for senior citizens aged 80 years and above. base year for the Wholesale Price Index
●​ This product offers enhanced interest rates, (WPI).
recognising the long-standing relationship ●​ Formed by: Ministry of Commerce and
many senior customers have with the bank. Industry
●​ SBI has also announced the launch of a ●​ Existing Base year: 2011-12
TAB-based end-to-end digital on-boarding ●​ Proposed Base year: 2022-23
process for Non-Resident Indians (NRIs) to ●​ Group members: 18
streamline the opening of NRE ●​ Chaired by: Prof. Ramesh Chand, member,
(Non-Resident External) and NRO NITI Aayog
(Non-Resident Ordinary) accounts. ●​ Task of Working Group:
●​ This product offers enhanced interest rates, ●​ The working group has been tasked with
recognising the long-standing relationship revising the commodity basket of WPI and
many senior customers have with the bank. Producer Price Index (PPI) in light of
●​ SBI Chairman: CS Setty structural changes in the economy, to
●​ HQ : Mumbai review the existing system of price
UPI transactions surge to record 16.73 bn in Dec: collection and suggest changes for
NPCI improvement.
●​ UPI: Unified Payments Interface (UPI) ●​ It will also decide on the computational
●​ Data by: National Payments Corporation of methodology to be adopted by WPI or PPI,
India (NPCI) and will suggest further improvement in
●​ UPI transaction in December 2024: 16.73 compilation and presentation, to
billion recommend roadmap for switchover from
●​ UPI processed around 23.25 lakh crore WPI to PPI.
rupees in the transactions done. ●​ The Working Group has been asked to
submit its final report to the Office of the
 December 2024-January 2025 Banking News
Economic Adviser within 18 months of the Microfinance company VFS Capital applies for
issue of this notification. small finance bank licence
Abu Dhabi’s Mubadala Tops Global Sovereign ●​ Applied for: Small finance bank licence
Investments with $29.2 Billion in 2024 ●​ Applied by: Microfinance company VFS
●​ Mubadala Investment Company, Abu Capital
Dhabi’s sovereign wealth fund, has claimed ●​ About Small Finance Bank (SFB)
the title of the world’s leading sovereign ●​ Genesis: Announced in the Union budget of
investor in 2024 2014-15.
●​ It has deployed an impressive 29.2 billion ●​ Registrations: Registered as a public
dollars across 52 deals. limited company under the Companies Act,
●​ Surpassed Saudi Arabia’s Public Investment 2013.
Fund and accounted for approximately 20% ●​ Licensing: Licensed and governed under
of the 136.1 billion dollars in total the Banking Regulation Act, 1949 and have
sovereign wealth fund spending globally no restrictions on where to operate.
last year. ●​ Capital Requirement: 200 crore (except for
●​ The list was published by Global SWF. some SFBs)
●​ Middle East sovereign wealth funds made ●​ Mandates for financial inclusion: They are
up five of the top 10 most active sovereign required to extend 75% of their ANBC
funds. (Adjusted Net Bank Credit) to the priority
●​ A sovereign wealth fund is a state-owned sector.
investment fund. NPCI extends UPI market share cap deadline to
●​ The fund comprised of money generated by 2026
the government for investment in assets ●​ National Payments Corporation of India
and others. (NPCI) has extended the deadline for
Banks’ non-food credit growth slows to 11.8% in Unified Payments Interface (UPI) providers
November to adhere to its 30% market share limit by
●​ Data by: The Reserve Bank of India two more years to December 31, 2026.
●​ Growth in non-food credit of scheduled ●​ This delay provides temporary relief to
commercial banks: Walmart-owned PhonePe and Google Pay,
●​ November 2024: 11.8 per cent (Slow) which together control over 85% of the UPI
●​ November 2023: 16.5 per cent payments market, offering them more time
●​ The non-food credit of banks stood at Rs to adjust to the new limit
170.02 lakh crore (y-o-y) in November ●​ Market Share Cap Rule:
2024. ●​ Introduced in 2020
●​ Non-food credit is generally used as a gauge ●​ It mandates that no single UPI app can
of bank lending. process more than 30% of the total UPI
●​ It is categorised into four broad categories transactions in a month.
– agriculture and allied activities; industry; ●​ The rule aims to prevent monopolization
services; and personal loans and ensure a level playing field.
●​ Industry segment witnessed a loan growth M2P Fintech partners with SBI to revolutionize
of 8.1 per cent in November 2024. Prepaid Payment Systems
●​ Loans to micro and small segment: 10.1% ●​ M2P Fintech and State Bank of India (SBI)
in November 2024 (Moderate growth) have teamed up.
●​ Advances to medium industry: 20% in ●​ Reason: To enhance prepaid payment
November 2024 (Increase) systems.
●​ Bank advances to industry increased to Rs
37.98 lakh crore in November 2024
 December 2024-January 2025 Banking News
●​ This partnership aims to create innovative, ●​ Eight Core Industries: Cement, Coal, Crude
secure, and user-friendly prepaid payment Oil, Electricity, Fertilizers, Natural Gas,
solutions. Refinery Products and Steel
GST Collection for December at 1.77 lakh crore ●​ The Eight Core Industries comprise 40.27
●​ India’s goods and services tax (GST) percent of the weight of items included in
collections rose 7.3% to ₹1.77 lakh crore in the Index of Industrial Production.
December Interest Rates on Small Savings Schemes Remain
●​ It slowed from an 8.5% year-on-year Unchanged for Q4 of FY 2024-25
increase in November. ●​ The rates of interest on Small Savings
●​ The overall gross GST collections from April Schemes from 1st January to 31st March,
to December stood at ₹16.33 lakh crore 2025, will remain unchanged.
●​ Arunachal Pradesh remained the worst hit ●​ Informed by: Ministry of Finance
for the third straight month, with revenues ●​ Sukanya Samriddhi Yojana: 8.2%
dropping 27% in December. ●​ Public Provident Fund (PPF): 7.1%
●​ Net GST collection growth slumps to 3.3% ●​ Post office savings deposits: 4%
in December ●​ Senior Citizen Savings Scheme (SCSS): 8.2%
India’s Fiscal Deficit Hits ₹8.47 Lakh Cr Through ●​ Kisan Vikas Patra: 7.5%, with maturity in
November 2024 115 months
●​ Data by: Ministry of Finance ●​ National Savings Certificate (NSC): 7.7%
●​ India’s fiscal deficit for the first eight IRFC raises Rs 2,840 cr through 10-year bonds
months of this fiscal year through ●​ Name of organization: Indian Railway
November 2024 stood at 8.47 lakh crore Finance Corporation (IRFC)
rupees (52.5% of annual estimates). ●​ Raised amount: Rs 2,840 crore
●​ Total receipts stood at 18.94 lakh crore ●​ Tenure: 10-year bonds
rupees (59.1% 2024 budget target) ●​ Coupon rate: 7.15%
●​ Overall expenditure in April to November ●​ The bonds were rated ‘AAA’ by CRISIL, ICRA
2024 was at 27.41 lakh crore rupees and CARE, all domestic agencies.
(56.9% budget target) Customers likely to gain as high-end hotels get GST
●​ Tax revenue was 14.43 lakh crore rupees, options on dining
and non-tax revenue was 4.27 lakh crore ●​ Recommended at: 55th GST Council
rupees. ●​ Recommendation:
●​ The central government’s fiscal deficit ●​ To allow high-end hotels to choose between
target is 4.9 percent of the gross domestic two indirect tax rates for restaurant
product for 2024-25. services provided on their premises.
India’s Core Sectors Grow by 4.3% in November ●​ High-end hotels will have the option to
2024 choose between two GST rates - 5%
●​ Data by: Ministry of Commerce without Input Tax Credit (ITC) or 18% with
●​ India’s core sectors’ output growth ITC.
increased by 4.3 percent in November 2024 ●​ Effective from: 1st April 2025
●​ Positive growth: Production of cement, coal, ●​ Currently, hotels with a “declared tariff”
steel, electricity, refinery products, and (room rent before discount) above ₹ 7,500
fertilisers are charged GST at 18% with ITC for
●​ Increased by: Coal production (7.5 restaurant services, and hotels with room
percent), petroleum refinery products (2.9 rent below ₹ 7,500 are charged 5% GST for
percent), fertilisers (2 percent), steel (4.8 restaurant services without ITC.
percent), and cement (13 percent), while ●​ Input Tax Credit (ITC) refers to the tax
electricity (3.8 percent) already paid by a person or business and
 December 2024-January 2025 Banking News
which is available as a deduction from the
final tax to be payable.
●​ In simple words, GST paid by a
manufacturer on buying raw materials or
services as inputs used in the production
process can be adjusted against the final
payment of GST by him at the time of sale of
his/her final product.
●​ For example, suppose a shoe manufacturer
procures leather as raw material for ₹100 +
Private banks outrun public sector peers in
5% GST (= ₹5). This ₹5 is his input tax
priority lending benchmarks
credit. Later, when he sells his final product
●​ Private sector banks as a group met priority
i.e. shoe for say ₹300 + 12% GST (=₹36),
sector lending targets, including
this ₹5 will be adjusted against the final
sub-targets for major heads in 2023-24,
GST.
particularly in agriculture.
●​ Thus, the final value of GST paid to him will
●​ Although all bank groups managed to
be = ₹36-₹5 = ₹31.
achieve their stipulated overall targets and
sub-targets, private sector banks did better
than their public sector peers.
●​ For the public sector, private and foreign
banks, the target is 40% of adjusted net
bank credit or credit equivalent of
off-balance sheet exposure, whichever is
higher.
●​ For small finance banks, the target is higher
at 75%.
IFSCA approves 200th fund; 13 funds relocate from
Singapore, Mauritius & Dubai
●​ Motilal Oswal’s Fund, an Alternate
Investment Fund (AIF), has become the
200th fund to be registered in GIFT IFSC.
●​ Gift city is now houses 13 AIFs that have
relocated to India from foreign jurisdictions
like Singapore, Mauritius and Dubai.
●​ About IFSCA:
●​ Established on: April 27, 2020
●​ It was set up under the International
Financial Services Centres Authority Act,
2019.
December 2024-January 2025 Banking News