Banking Current Affairs | February 2022

Banking
Government permitas up to 20% FDI under automatic route in LIC
 Government has permitted up to 20 percent Foreign Direct Investment (FDI) under automatic
route in Life Insurance Corporation of India (LIC).
 The aim is to facilitate the disinvestment of the country's largest insurer.
 The existing FDI Policy does not prescribe any specific provision for foreign investment in LIC,
which is established under the LIC Act, 1956.
Centre to recapitalise weak PSBs as part of its capital infusion
 Centre has announced to provide capital support to weak public sector lenders like the Central
Bank of India and Punjab and Sind Bank.
 Such banks will get a big chunk of the ₹15,000 crores earmarked for capital infusion in state-
owned banks for the current fiscal (2022-23).
 The capital infusion would go mostly to banks that had got money through non-interest-bearing
bonds in 2021.
RBI announces dollar/rupee two-year sell buy swap auction
 RBI has announced a US Dollar/Rupee two-year sell-buy swap auction.
 It will conduct a sell/buy swap auction for $5 billion on March 8, 2022, a move that will help
rationalise plunging forwards premia and level out the rupee liquidity.
 In the first leg of the transaction, the banks will buy US dollars from RBI at the reference rate of
the auction date.
MSME Minister Narayan Rane launches Union Bank MSME RuPay Credit Card
 Union Minister for Micro, Small, and Medium Enterprises Narayan Rane launched the Union
MSME RuPay Credit Card of Union Bank of India, on 25 Feb 2022.
 It was launched at Sindhudurg at the two-day MSME Conclave.
 The card is being offered by the Union Bank of India in association with the National Payments
Corporation of India (NPCI).
Adani Enterprises divests stake in DC Development Hyderabad, NDCL
 Adani Enterprises Ltd has announced divestment of its entire stake in DC Development
Hyderabad Pvt Ltd and Naida Data Center (NDCL) to AdaniConnex Pvt Ltd.
 Consequently, DC Development Hyderabad and NDCL have ceased to be wholly-owned
subsidiaries of the company.
 The divestment was done on 22 February 2022.

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 Banking Current Affairs | February 2022

Ideal Finance rebrands itself as Mahindra Ideal Finance

 Ideal Finance Ltd, a subsidiary of Mahindra and Mahindra Financial Services Ltd has
announced the rebranding of its company as Mahindra Ideal Finance Ltd (MIFL).
 Ideal Finance provides financial services products to Sri Lankan customers.
 The rebranded entity will further look at enhancing its customer value proposition by offering an
even wider suite of products including gold loans.
Paytm Payments Bank signs up as acquiring partner for e-RUPI service
 Paytm Payments Bank has become an official acquiring partner for the government's e-RUPI
vouchers initiative.
 The bank has partnered with Paytm parent One97 Communications Ltd (OCL) to leverage the
latter’s merchant base.
 With this, Paytm’s merchants will be able to collect payments through e-RUPI.
 e-RUPI is a cashless prepaid voucher that beneficiaries can present through SMS or QR Code.
Mirae Asset MF launches Nifty Midcap 150 ETF scheme
 Mirae Asset Mutual Fund has launched Mirae Asset Nifty Midcap 150 Exchange-Traded Fund
(ETF).
 It is an open-ended equity scheme that aims to track the performance of 150 mid-market
capitalization companies.
 The minimum initial investment in the scheme during the NFO (new fund offer) period will be
₹5,000 and in the multiples of Re 1, thereafter.
Rajasthan CM Ashok Gehlot presented the state budget 2022-23
 Ashok Gehlot presented the state budget 2022-23 on 23 Feb with the main focus on
employment and healthcare.
 He said tourism and hospitality sector will be recognized as an industry in the state.
 He announced the implementation of the Indira Gandhi Urban Employment Guarantee Scheme
and an allocation of Rs 5,000 crore for CM Krishak Saathi Yojna, which was Rs 2,000 crore in
the last budget.
Mahindra Finance launches a deposit scheme to be offered digitally
 Mahindra Financial Services Limited (Mahindra Finance) has announced the launch of a special
deposit scheme for digitally savvy customers
 Under this, the depositors can place their deposits for a tenure of 30 and 42 months, which will
carry 6.20% and 6.50% interest rate respectively.
 Senior citizens shall be eligible for another 20 bps higher rates.

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 Banking Current Affairs | February 2022

Navi Mutual Fund launches Navi Nifty Midcap 150 Index Fund
 Navi Mutual Fund has launched Navi Nifty Midcap 150 Index Fund.
 It is a passive equity scheme that will replicate the Nifty Midcap 150 Index, which represents the
emerging companies of the country.
 The fund will have a total expense ratio (TER) of 0.12% for the direct plan, which is the lowest
cost compared to many other index funds in the category.
IBM to launch its first cyber security hub in India
 IBM Corp. will be launching a cyber security hub in Bengaluru, to address the concerns of its
clients across the Asia Pacific (APAC).
 The security hub will be one of the only two centres globally, the other one situated in the US.
 The centerpiece of this investment is the new IBM Security Command Center, the first-of-its-
kind in the region, for training cybersecurity response techniques.
ITI Mutual Fund launches ITI Conservative Hybrid Fund
 Asset management company ITI Mutual Fund has launched ITI Conservative Hybrid Fund.
 It is an open-ended hybrid scheme that will invest into an array of high-quality debt instruments
and also into leading Nifty50 index stocks.
 The scheme will be jointly managed by Vikrant Mehta and Pradeep Gokhale.
 The minimum investment during the NFO (new fund offer) period is ₹5,000.
Axis Mutual Fund launches Axis Nifty Smallcap 50 Index Fund
 Axis Mutual Fund has announced the launch of Axis Nifty Smallcap 50 Index Fund, an open-
ended index fund tracking the Nifty Smallcap 50 Index.
 The NFO opened for subscription on 21 February and closes on 7 March 2022.
 The minimum application amount is ₹5,000 and investors can invest in multiples of ₹1,
thereafter.
 The fund will be managed by Jinesh Gopani, Head – Equity.
SEBI approves three IPOs including PharmEasy
 SEBI has approved the initial share sales of API Holdings, which operates PharmEasy, Adar
Poonawalla-backed Wellness Forever Medicare, and metal recycling firm CMR Green
Technologies.
 It has issued observation letters to the three companies, effectively giving nod to float their
IPOs.
 PharmEasy's IPO (initial public offering) will only be a primary share sale of shares of ₹6,250
crores.

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 Banking Current Affairs | February 2022

BOB Financial, IRCTC launch co-branded RuPay contactless credit card

 BOB Financial Solutions Limited (BFSL) and the Indian Railway Catering and Tourism
Corporation Ltd (IRCTC) have launched the IRCTC BoB RuPay contactless credit card.
 The card is specially curated to offer maximum savings to frequent railway travellers.
 They will be able to earn up to 40 reward points on 1AC, 2AC, 3AC, CC, or EC bookings made
through the IRCTC website or mobile app.
IIFL Home Finance to get $68 million ADB loans
 The Asian Development Bank has offered $68 million in funding to IIFL Home Finance for
expanding footprint in the affordable and green housing segment.
 The funding comprises a direct ADB loan of $58 million and another $10 million concessional
loan from the Canadian Climate Fund.
 This is IIFL Home Finance’s first loan from ADB or any other development finance institution.
Jio Platforms picks up 25% stake in tech startup TWO for $15 mn
 Jio Platforms has picked up a 25% stake in US-based deep-tech startup company TWO
Platforms for $15 million.
 Founded by Indian-origin computer scientist Pranav Mistry in July 2021, TWO Platforms is an
artificial reality company that focuses on building interactive AI experiences.
 Its platform enables real-time AI voice and video calls, digital humans, immersive spaces and
life-like gaming.
Vedanta to invest USD 20 Billion in semiconductor business in India
 Vedanta has announced to invest upto USD 20 billion into the electronic chip and display
manufacturing space in Feb 2022.
 It expects to roll out display units, for use in mobile phones and electronics devices, by 2024 and
electronic chips from Indian manufacturing plants by 2025.
 Vedanta Group has applied for setting up a semiconductor plant under the government's
incentive scheme.
India, UAE sign CEPA to boost goods trade to $100 billion in 5 years
 India and UAE signed the historic Comprehensive Economic Partnership Agreement (CEPA)
aimed at boosting the trade to US$ 100 billion over next five years.
 India is celebrating its 75 years of independence and UAE is celebrating 50 years of its
foundation in 2022.
 CEPA would generate 10 lakh jobs across multiple labour-intensive sectors.

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 Banking Current Affairs | February 2022

Edelweiss Asset Management launches MF investing app ‘eInvest’

 Edelweiss Asset Management has launched the mutual fund investing mobile application
eInvest to help investors perform all financial transactions on the go.
 The app comes with an Insta Money feature that is a mutual fund savings account with an
instant withdrawal facility to the registered bank account.
 Investors can use the app to start Systematic Investment Plans (SIPs) in mutual funds.
CBI finds biggest bank fraud by ABG Shipyard of Rs 22,842 crores
 ABG Shipyard Limited has been booked by the Central Bureau of Investigation (CBI) for
defrauding 28 banks to the tune of Rs 22,842 crore.
 It is one of India’s largest private sector shipyard firm.
 It is one of the biggest bank fraud (bigger than the Punjab National Bank scam involving Nirav
Modi and Mehul Choksi) cases that the CBI will be investigating.
Grant of Rs. 1154.90 crore released to states for Urban Local Bodies
 The Department of Expenditure, Ministry of Finance released an amount of Rs. 1154.90 crore to 4
states for providing grants to Urban Local Bodies, on 14 Feb 2022.
 The states are Andhra Pradesh (Rs. 225.60 crore), Bihar (Rs. 769 crore), Gujarat (Rs. 165.30 crore),
and Sikkim (Rs.5 crore).
 The grants released are meant for Non-Million Plus cities (NMPCs) including Cantonment
Boards.
UTI Mutual Fund launches UTI S&P BSE Low Volatility Index Fund
 UTI Mutual Fund (UTI) has launched an open-ended scheme UTI S&P BSE Low Volatility Index
Fund, replicating/tracking the S&P BSE Low Volatility Total Return Index (TRI).
 The index fund is designed to track the performance of the 30 companies in the S&P BSE Large-
Midcap space with the lowest volatilities.
 Sharwan Kumar Goyal will be the fund manager for the scheme.
Yes bank launches ‘YES BANK Agri Infinity’ program
 Yes Bank has announced the launch of an annual startup enabler program, YES BANK Agri
Infinity.
 It seeks to co-develop digital financial solutions for the food and agriculture ecosystem by
mentoring entrepreneurial ventures in the field.
 As part of the agri-fintech enabler program, early as well as growth-stage startups are invited to
apply with their proposals.

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 Banking Current Affairs | February 2022

Reliance Jio Platforms forms JV for offering satellite-based broadband

 Reliance Industries Ltd (RIL) has announced that Jio Platforms Ltd (JPL) and SES, a global
satellite-based content connectivity solutions provider, have formed Joint Venture (JV) for
satellite-based broadband services.
 Jio Platforms will own 51% and SES 49% in the JV firm, Jio Space Technology Limited.
 The joint venture will use multi-orbit space networks.
Kotak Life launches Kotak Fortune Maximiser life insurance plan
 Kotak Mahindra Life Insurance Co. Ltd. (Kotak Life) has announced the launch of Kotak Fortune
Maximiser.
 It is a limited pay participating endowment plan, which can be tailored as per customer
requirements.
 Under the plan, customers have the option to choose their premium amount and also select
their premium payment term from 6-15 years and still reap life-long benefits.
RBI proposes to increase cap on e-RUPI vouchers to ₹1 lakh
 The Reserve Bank of India (RBI) has enhanced cap under e-RUPI prepaid digital vouchers.
 The present cap of ₹10,000 will be increased to ₹1 lakh per voucher and to be used more than
once, governor Shaktikanta Das said on Feb 10, 22.
 The e-RUPI pre-paid digital voucher developed by the NPCI was launched in August 2021.
 Earlier, the single use cashless payment voucher has a cap of ₹10,000.
RBI Extends Liquidity window for emergency health services
 The Reserve Bank of India (RBI) on Feb 10, 2022 proposed to extend the Rs 50,000 crore on-tap
liquidity window for emergency healthcare services till June 30.
 RBI had introduced the liquidity window at the repo rate with tenors of up to three years on May
5, 21.
 It has introduced to provide immediate capital for ramping up Covid-19 related healthcare
infrastructure and services.
Government bans import of drones; provides certain exceptions
 The Indian government has banned the import of foreign drones to promote Made in India drones
with immediate effect on February 9.
 The import of drones for R&D, defense, and security purposes have been exempted from the ban
but such imports will require due clearances.
 The import of drone components hasn't been banned and will not require any approvals, as per
the civil aviation ministry.

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 Banking Current Affairs | February 2022

RBI increases FPI limit in debt market to Rs 2.5 lakh crore

 Reserve Bank of India (RBI) has increased the limit for foreign portfolio investors (FPIs) to invest in
the local debt market under the voluntary retention route (VRR) by ₹1 lakh crore to ₹2.5 lakh crore.
 The VRR for investment in government and corporate debt securities by FPIs was introduced in
March 2019 with a view to facilitating stable investments in debt instruments in the country.
Reliance completes acquisition of 40% stake in Sterling & Wilson Solar
 Mukesh Ambani's Reliance Industries Limited has completed the acquisition of a 40% stake in
Shapoorji Pallonji Group's Sterling & Wilson Renewable Energy Ltd (SWREL) for Rs 2,845 crore.
 The acquisition is to help the oil-to-retail conglomerate create a multi-billion-dollar clean energy
portfolio.
 Reliance New Energy Ltd (RNEL) holds 40% of the total paid-up capital of SWREL.
RBI Policy increases NACH mandate for MSMEs from ₹1 crore to ₹3 crore
 The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) on Feb 10 announced steps
to help the worst MSME sector by enabling better infrastructure for receivables financing.
 RBI will increase the National Automated Clearing House (NACH) mandate limit for Trade
Receivables Discounting System (TReDS) settlements from Rs 1 crore at present to Rs 3 crore.
Reserve Bank of India (RBI) Monetary Policy: Repo rate unchanged at 4%
 The six-member Monetary Policy Committee(MPC) headed by Reserve Bank of India (RBI)
Governor Shaktikanta Das kept the repo rate unchanged at 4% for the tenth consecutive time.
 RBI maintained an ‘accommodative stance’, while the reverse repo rate was also kept unchanged
at 3.35%, CPI inflation target of 5.3%.
 The real GDP growth is projected at 7.8% for the next financial year 2022-23 (FY23).
HDFC ERGO launches cyber sachet insurance policy
 HDFC ERGO General Insurance Company has announced the launch of its cyber sachet
insurance policy.
 It is aimed at mitigating cyber-related, digital risks for individual customers and keeping them
internet insured.
 Customers can be internet insured with a pocket-sized insurance cover at a nominal premium of
less than ₹2 per day.
 The sum insured ranges from ₹10K to ₹5 crores.
HDFC Mutual Fund launches NFOs of two Nifty 100 based index funds

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 Banking Current Affairs | February 2022

 HDFC Asset Management Company has announced the launch of twin new fund offers (NFOs):
HDFC NIFTY 100 Index Fund and HDFC NIFTY 100 Equal Weight Index Fund.
 They will invest in the largest companies in India that are part of the NIFTY 100 Index.
 NIFTY 100 Index gives weights based on free-float market cap and NIFTY100 Equal Weight
Index gives equal weights to all constituents.
Paytm Money introduces first intelligent messenger for investment
 Paytm Money has introduced India’s first intelligent messenger.
 The company has launched ‘Pops’, with which users can receive specific information related to
their stocks, analysis about their portfolio, market news, and important market movements in an
easy to consume format, all in one place.
 Paytm Money has partnered with InvestorAi to offer stock recommendations.
Vedanta ties up Rs 8,000-crore facility with Union Bank
 Vedanta has tied up a facility of Rs 8,000 crore with Union Bank of India to take over a majority
of the syndicated facility after multiple discussions with potential lenders.
 The replacement facility was availed on 28 Dec'21 to take over the existing Syndicated facility.
 During 2020, it had tied up a syndicated facility of Rs 10,000 cr with SBI as the lead bank at a
running cost of 10.5%.
Banks to transfer 15 accounts worth Rs 50,000 crore to NARCL in FY22
 The two arms of India’s bad bank – National Asset Reconstruction Company (NARCL) and India
Debt Resolution Company (IDRCL) – have received all the requisite approvals.
 The banking sector will transfer 15 assets worth Rs 50,000 crore to NARCL in financial year 2022.
 The IDRCL, under an exclusive arrangement, will handle the debt resolution process.
TN receives budgetary allocation of Rs 7,134.56 cr for railway project
 In the union budget 2022-23, a total of Rs 7,134.56 crore was earmarked for taking up various
railway projects in Tamil Nadu.
 Southern Railway was allocated Rs 7,134.56 crore for FY 2022-23 in addition to Rs 1,064.34 crore
which was extra budgetary resource.
 In Kerala, Rs 9,489 crore has been allocated for 8 projects covering a length of 439 kms.
Govt allocates Rs 283.5 cr for Startup India Seed Fund Scheme
 The government has allocated Rs 283.5 cr for the Startup India Seed Fund Scheme in Budget
2022-23, which is higher than the revised estimate of about Rs 100 crore.
 The budget for the Petroleum and Explosives Safety Organisation (PESO) has also been
enhanced to Rs 66.16 cr.

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 Banking Current Affairs | February 2022

 The cumulative allocation for the Department for Promotion of Industry and Internal Trade
(DPIIT) stood at Rs 8348 cr.
CCI imposes penalty of ₹1,788 crores on 5 tyre manufacturers
 The Competition Commission of India (CCI) has imposed penalties of over ₹1,788 cr on 5 tyre
companies.
 A penalty of Rs 425.53 crore was levied on Apollo Tyres, Rs 622.09 crore on MRF Ltd, Rs 252.16
crore on CEAT Ltd, Rs 309.95 crore on JK Tyre and Rs 178.33 crore on Birla Tyres.
 They had exchanged price-sensitive data amongst each other through Automotive Tyre
Manufacturers Association.
Ministry of Ayush receives Rs 3,050 crore in Union Budget
 The Ministry of Ayush has received an allocation of Rs 3,050 cr in the Union Budget 2022-23, a
slight increase of 2.69% from 2021-22.
 An amount of Rs 306 crore has been set aside for the Central Sector Schemes, while Rs 110 crore
has been allocated for Statutory and Regulatory Bodies.
 The allocation for the National AYUSH Mission has increased to Rs 800 crore from Rs 553 cr in
2021-22.
Sports Budget increased by Rs 305.58 crore to Rs 3062.60 crore
 The central government has allocated Rs 3062.60 crore for the financial year 2022-23, an
increase of Rs 305.58 crore.
 In the previous financial year, the government had allocated Rs 2596.14 crore for sports, which
was later revised to Rs 2757.02 crore.
 The financial allocation towards Khelo India programme, which got Rs 657.71 crore in the last
budget, was increased to Rs 974 crore.
Culture Ministry gets over Rs 3,000 crores in budget
 Budgetary allocation for the Culture Ministry for 2022-2023 has been increased by 11.9 percent
compared to the Budget Estimate (BE) for 2021-2022.
 The Archaeological Survey of India (ASI) has been allocated Rs 1,080 crore, 35 percent of the
total amount.
 Rs 3,009.05 crore has been allocated for the Culture Ministry, up from Rs 2,687.99 crore in the
previous budget.
India to provide Rs 6292 cr as development assistance to other nations
 India has set aside in its budget an amount of Rs 200 crore as development assistance to
Afghanistan.

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 Banking Current Affairs | February 2022

 Finance Minister Nirmala Sitharaman allocated a total of Rs 17,250 crore to the Ministry of
External Affairs in the Union Budget 2022-23.
 Out of this, Rs 6,292 crore is for development assistance to countries in India's neighborhood as
well as in Africa and Latin America.
Rs 13,700 crore allocated for Department of Space
 Finance Minister Nirmala Sitharaman has allocated Rs 13,700 crore to the Department of Space
in the Union Budget.
 The allocation was an increase of Rs 1,058 crore over the revised estimate of Rs 12,642 crore in
the previous budget.
 A giant share of the allocation - Rs 10,534 crore - has been made under the head of space
technology that covers most of the centres of ISRO.
Railway Ministry allocated ₹1,40,367.13 crores
 The Union Budget has allocated ₹1,40,367.13 cr to the Railway Ministry – ₹20,311 cr more than
the revised figures of the previous fiscal (2021-22).
 It also allocated ₹15,710.44 cr to the Dedicated Freight Corridor, whose assets will be monetized
by the Railways for operations and maintenance.
 ₹38,686.59 cr was earmarked for investment in PSUs, joint ventures and special purpose
vehicles.
Union Budget for financial year 2022-2023 presented
 Union Finance Minister Nirmala Sitharaman on 1 February 2022 presented the Union budget
2022-2023.
 The govt has decided to levy 30% tax, the highest tax band in the country, on income arising
out of the transfer of digital assets.
 Digital rupee will be issued using blockchain technology by the RBI starting 2022-23.
 A reduction of surcharge on unlisted shares has been made from 28.5% to 23%.
Budget: e-Passports to be issued in 2022-23
 The government will issue e-passports in the financial year 2022-23.
 The e-passport will use Radio-Frequency Identification (RFID) and biometrics to verify the
identity.
 The Union government will introduce a 'Battery Swapping Policy' to promote the use of electric
vehicles.
 The fiscal deficit for 2022-23 has been pegged at 6.4% of GDP.
 Total expenditure has been pegged at ₹39.45 trn.

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