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RBI In News From August to October by gkrecall

We bring you the complete and important daily Current Affairs of  MARCH 2020 Quiz to achieve more marks in Banking, Insurance, UPSC, SSC, CLAT, Railways and all other competitive Exams. We prepare it based on our daily current affairs.Hope you like it.

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1.Cyber Security Vision Framework for Urban Cooperative Banks Released

The Reserve Bank of India released Cyber Security Vision Framework under the title ‘Technology Vision for Cyber Security’ for Urban Co-operative Banks (UCBs) – 2020-2023 on September 25, 2020. The central bank referred to four guiding principles in order to formulate the framework because of the heterogeneity of UCBs in India in terms of regions.

2.Why FM allowed Five States to raise financial resources through Open Market Borrowings?

Union Finance Ministry Smt. Nirmala Sitharaman has granted permission to raise additional financial resources of Rs. 9,913 crore to five states through Open Market Borrowings (OMBs). The five states Andhra Pradesh, Telangana, Karnataka, Goa, and Tripura. Key Facts This permission allows Karnataka to raise Rs. 4,509 crore. Andhra Pradesh can borrow Rs. 2,525 crore.

3.RBI unveils National Strategy for Financial Education 2020-2025

Reserve Bank of India (RBI) has launched the National Strategy for Financial Education (NSFE) to be implemented for the period of next five years i.e. 2020 to 2025. This is the second national strategy; the first NSFE was launched in 2013.

4.RBI creates Payment Infrastructure Development Fund

On June 5, 2020, the Reserve Bank of India created Payment Infrastructure Development Fund of Rs 500 crores. Highlights The apex bank has made an initial contribution of Rs 250 crores towards the funds. The rest of the fund is to come through the card issuing banks.

5.RBI announces Special Liquidity Mutual Funds worth Rs 50,000 crores

the Reserve Bank of India announced the special liquidity facility for mutual funds of Rs 50,000 crores. The Reserve Bank of India is increasing liquidity flow in capital markets as COVID-19 has imposed liquidity strains on mutual funds.

6.RBI Announced "Co-Lending Model (CLM)" for Banks, NBFCs for Priority Sector Lending

the Reserve Bank of India (RBI) has revised the loan scheme of the Co-origination Model between Banks and Non-Banking Financial Companies – Non-Deposit taking – Systemically Important (NBFC-ND-SIs) launched in September 2018 with the improved”Co-Lending Model (CLM)“.
The Scheme CLM helps banks to provide loans along with NBFCs (Non-Banking Financial Companies) including HFCs (Housing Finance Companies) for priority sector borrowers based on a prior agreement.

7.IndusInd Bank Becomes the 1st bank in India to Go Live on RBI’s Account Aggregator Framework

IndusInd Bank announced that it has gone live as a Financial Information Provider (FIP) under the new Account Aggregator(AA) Framework of the Reserve Bank of India (RBI). IndusInd Bank becomes the 1st bank in India to do so. The bank went live as FIP with DigiSahamati Foundation, a self-organised Collective of the Account Aggregator ecosystem.

8.Banks to Deploy on-tap TLTRO funds in 6 sectors; NBFCs wrote to RBI to include them as Beneficiaries

On October 9, 2020, during a Bi-Monthly Monetary Policy Committee (MPC) 2020-2021 meeting Reserve Bank of India (RBI) announced to conduct on-tap targeted long-term repo operations (TLTRO) worth Rs 1 lakh crore with tenors of up to three years at a floating rate linked to the policy repo rate till March 31, 2021. 

Then on October 21, 2020, the apex bank has informed that banks can deploy money drawn from this TLTRO in six sectors – agriculture, agri-infrastructure, secured retail, MSMEs (Ministry of Micro, Small & Medium Enterprises), drugs, pharmaceuticals and healthcare.

9.RBI Pegs Minimum NOF for HFCs at Rs 25 cr; Issued guidelines for PSO’s SRO & on QR Codes: October 2020

the government has exercised the Finance (No.2) Act, 2019 (23 of 2019) for amending the National Housing Bank Act, 1987 resulting in transfer of regulation of housing finance companies (HFCs) to Reserve Bank of India (RBI) from the National Housing Bank (NHB). After this, Part VII of Chapter VI of the Finance (No.2) Act, 2019 (23 of 2019 came into effect, stating an issue of revised regulations. 

hanges to be prescribed for HFCs with an aim to increase their efficiency and address concerns of liquidity and double financing

Notably, liquidity availed by banks under the scheme has to be deployed in corporate bonds, commercial paper and non-convertible debentures issued by the entities in specific sectors. It can also be used to extend loans and advances to these sectors

10.Digital payments increased in 5 years to 3,434.56 cr in FY20; RBI to Adopt NGTA for Managing Forex, Gold Reserves

11.RBI Approved a 3 member Interim Committee of Directors, headed by G Subramonia Iyer to Run Dhanlaxmi Bank

The Reserve Bank of India(RBI) approved a 3 member interim Committee of Directors (CoD) to exercise the powers of Managing Director(MD) & Chief Executive Officer(CEO) of Dhanlaxmi Bank Ltd till a new MD & CEO takes charge. G. Subramonia Iyer will head(Chairman) the CoD, G. Rajagopalan Nair and P.K Vijayakumar will serve as its members.

12.RBI Defers Basel III provisions amid Covid Uncertainty; Borrowing Limit for Banks & States Extended till Mar 31, 2021

On September 29, 2020, the Reserve Bank of India (RBI) deferred implementation of provisions made under Basel III capital due to uncertainty related to Covid crisis. In this regard, RBI will repel the final tranche of the capital conservation buffer (CCB) and the implementation of net stable funding ratio (NSFR) by six months i.e. April 1, 2021.

About Reserve Bank of India (RBI):
Headquarters– Mumbai, Maharashtra
Formation– 1 April 1935
Governor– Shaktikanta Das
Deputy Governors– 4 (Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra, one is yet to be appointed).

13.RBI Approved 3-Member Committee Headed by Meeta Makhan to Function as ad-interim MD & CEO of LVB

The Reserve Bank of India(RBI) approved that the daily affairs of Lakshmi Vilas Bank (LVB)will be run by a Committee of Directors (CoD) composed of 3 independent directors namely, Meeta Makhan, Chairperson of the CoD, Shakti Sinha, Member and Satish Kumar Kalra, Member. The CoD will exercise the discretionary powers of Managing Director(MD) and Chief Executive Officer(CEO) in the ad-interim.

14.RBI to Initiate Positive Pay system for Cheques above Rs 50,000 from Jan 1, 2021: September 2020

*To be developed by National Payments Corporation of India (NPCI), this system will require re-confirmation of key details for payments beyond Rs 50,000.

*It should be noted that the usage of Positive Pay System is at the choice of account holder; however, banks may make it mandatory in case of cheques for amounts of Rs 5 lakh and above.

15.The Reserve Bank of India(RBI) roped in Indian Film Actor Amitabh Bachchan for the customer awareness campaign to prevent naive account holders from being deceived by fraudsters.

i.RBI has become the most popular central bank on twitter, with about 9.66 lakh followers while US Federal Reserve, world’s most powerful central bank has about 6.64 lakh followers

ii.The second most powerful monetary authority in the world, The European Central Bank, has 5.81 lakh followers.

16.Vakrangee Ltd gets RBI nod to setup Bharat Bill Payment Operating Unit

Reserve Bank of India (RBI) granted in-principle approval for Vakrangee Ltd to set up Bharat Bill Payment Operating Unit (BBPOU) to handle payment services related to bills.

It has received the authorisation under the Payment and Settlement Systems Act, 2007.

17.RBI Released “’Technology Vision for Cyber Security’ for Urban Co-operative Banks – 2020-2023”

Reserve Bank of India(RBI) released “’Technology Vision for Cyber Security’ for Urban Co-operative Banks (UCBs) – 2020-2023”. It aims to enhance the cyber security in the Urban Co-operative banking sector against the growing Information Technology (IT) and cyber threat environment. Based on the inputs from diverse stakeholders, the technology vision document was formalised.

18.Reserve Bank of India (RBI) appointed AK Dixit, ex-General Manager of Union Bank of India(UBI) as the new administrator of Punjab and Maharashtra Cooperative (PMC) Bank Limited with effect from September 23, 2020. He succeeds J.B. Bhoria, ex-chief general manager with the central bank who stepped down from the post of administrator on September 22, 2020, due to health reasons.

19.RBI Issued Draft Rupee Interest Rate Derivatives (Reserve Bank) Directions: September 2020

the Reserve Bank of India (RBI) issued Draft Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2020 under Section 45 W of the RBI Act, 1934 to allow foreign portfolio investors (FPIs) to undertake exchange-traded rupee interest rate derivatives transactions subject to an overall ceiling of Rs 5,000 crore. The RBI has sought comment on these directions by October 15, 2020.

20.RBI Mandate Banks to Fully Automate NPA Recognition Process by June 30, 2021

the Reserve Bank of India (RBI) issued circular advising banks to switch to automatic identification of non-performing assets (NPAs), using appropriate IT (information technology) systems, from manual identification for regulatory reporting and bank’s own management information system (MIS) requirements. However, over this period of time, the processes for NPA identification, income recognition, provisioning and generation of related returns in many banks are not yet fully automated.

21.RBI Accepted Kamath Panel Recommendations; Specifies Parameters for Loan Restructuring

Reserve Bank of India (RBI) specified five financial ratios and sector-specific thresholds for resolution of COVID-19-related stressed assets in 26 sectors on the basis of the recommendations of an expert committee under the chairmanship Kundapur Vaman Kamath, which was formulated by RBI in August 2020 to set a parameters and benchmarks for stressed assets that need rescuing.

These five ratios are: Total outside liabilities/adjusted tangible net worth (TOL/ATNW), total debt/EBITDA, current ratio, debt service coverage ratio (DSCR), average debt service coverage ratio (ADSCR).
In respect of other sectors where certain ratios have not been specified, the lenders shall make their own assessment keeping in view the “Resolution Framework for COVID-19-related Stress”.

22.RBI Announced Additional OMO of Rs 20,000 Cr to Ensure Orderly Market Conditions; HTM raised to 22% from 19.5%

23.FIDC Requested RBI to Review New Current Account Rules; Concerns on Routing All Transactions through CC/OD

the umbrella body for non-banking financial companies (NBFCs), Finance Industry Development Council (FIDC) requested the Reserve Bank of India (RBI) to review the current account circular dated August 6, 2020 which stated that no bank is allowed to open current accounts for the customer who availed credit facilities in the form of cash and credit (CC) or overdraft (OD) from the banking system.

24.RBI Releases Revised Priority Sector Lending Guidelines : September 2020

Reserve Bank of India (RBI) reviewed the Priority Sector Lending (PSL) Guidelines to align it with emerging national priorities amid COVID-19 impact. In this regard, new categories are included under priority sector for financing viz. start-ups (up to Rs 50 crore); loans to farmers for installation of solar power plants for solarisation of grid connected agriculture pumps and loans for setting up Compressed Bio Gas (CBG) plants.

25.Highlights of RBI Annual Report 2019-20; India’s Growth Projected at -4.5%

Reserve Bank of India (RBI) released its Annual Report for 2019-20. It is Report of the Central Board of Directors on the working of the Reserve Bank of India (RBI) for the year ended June 30, 2020 submitted to the Central Government in terms of Section 53(2) of the Reserve Bank of India Act, 1934

26.Reserve Bank to evaluate impact of 'RBI Kehta Hai' awareness campaign
RBI to evaluate the impact of multi-media public awareness campaign RBI Kehta Hai, which was launched in 14 languages to educate the public about safe banking and financial practices. It was the first even 360-degree campaign initiated by the central bank.
RBI invited Expression of Interest from eligible companies.

27.RBI issues guidelines for appointment of CCO in banks RBI has issued guidelines for the appointment of Chief Compliance Officer (CCO) in banks to ensure a uniform
approach with regard to compliance
and risk management culture across the
banking industry. A person should be a
senior executive of the bank.
CCO must be appointed for a minimum
fixed period of three years

28.RBI’s Central Board headed by Shaktikanta Das approved a dividend of Rs 57,128 crore to Central Govt

29.The 584th meeting of the Central Board of Reserve of Board(RBI) under the Chairmanship of Governor Shaktikanta Das approved the transfer of Rs 57,128 crore in surplus as dividend to the Central government for the accounting year 2019-20. The board decided to maintain the Contingency Risk Buffer at 5.5%.

30.RBI Mandates System-based Asset Classification for Urban Co-operative Banks (UCBs)

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