Daily Current Affairs 28 December 2023 for Banking/Insurance/SSC and other related exams.
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BANKING & FINANCE
RBI Unveils Forex Correspondent Scheme to Enhance Foreign Exchange Services
The Reserve Bank of India (RBI) has recently set the ball rolling for the licensing framework for authorised persons under the Foreign Exchange Management Act (FEMA). In other words, a new set of rules are being drafted to give permission to authorised persons to become money changers.
- It was first announced in the statement on Development and Regulatory Policies dated June 8, 2023.Following this, the draft licensing framework for authorised persons under Foreign Exchange Management Act has been placed on the RBI’s portal.
- These money changers may conduct “Money changing business through any agency model by becoming forex correspondents of Category-I and Category-II authorised dealers,” reads the draft uploaded on RBI’s portal.The transactions carried out by the forex correspondents on AD’s behalf will be reflected in the books of the principal AD.
RBI Approves IDFC-IDFC First Bank Merger
Reserve Bank of India has given its nod for the reverse merger of IDFC Ltd with its banking subsidiary IDFC First Bank. The boards of IDFC First Bank and IDFC have approved the reverse merger in July.
- IDFC Bank was given a licence by the RBI along with Bandhan Bank in 2014. In 2018, IDFC Bank Ltd and Capital First Ltd announced the completion of the merger to become IDFC First Bank.
Bank of Baroda looks for buyer to sell off its 100% stake in New Zealand arm
Public sector lender Bank of Baroda (BOB) invited proposals for the selection of investment bankers for the sale of its entire stake in the New Zealand subsidiary.The boost came following the bank’s announcement inviting potential buyers to sell stake in its New Zealand arm.
- The bank is actively seeking an investment banker for the sale and disinvestment process. The deadline for the submission of proposals has been set at 2:00 pm on January 24.
Indian Banks Achieve 12.2% Growth in FY23: RBI Report
The Reserve Bank of India (RBI) released a report applauding the performance of Indian banks and non-bank lenders, emphasizing the need for stronger governance and risk-management practices to fortify their balance sheets. Despite a remarkable 12.2% growth in the consolidated balance sheet of scheduled commercial banks (SCBs) in 2022-23, the RBI underscored the importance of continued improvement.
- The consolidated balance sheet of SCBs witnessed a remarkable 12.2% growth in 2022-23, marking the highest in nine years.Non-food credit growth soared to 15.4% in 2022-23, fueled by the strong demand for loans among individual borrowers, compared to 8.7% in the previous fiscal year.
- Lower slippages contributed to an improvement in asset quality across all bank groups, with gross non-performing assets (GNPA) to total advances ratio dropping to a 10-year low.Higher lending rates, lower provisioning requirements, and improved asset quality boosted the profitability of banks. The consolidated net profit of the banking industry grew by 44.6% in 2022-23.
- GNPA as a percentage of gross loans showed significant improvement, standing at 5% for state-run banks and 2.3% for private banks in 2022-23.Banks strengthened their capital buffers, with the capital adequacy ratio reaching 17.3%, up 50 basis points from the previous fiscal year.
BUSINESS & ECONOMY
Reliance Jio and IIT Bombay Collaborate for Bharat GPT Program and Smart TV Operating System
Reliance Jio Infocomm chairman Akash Ambani said the country’s largest telco is working with Indian Institute of Technology-Bombay to launch a ‘Bharat GPT’ programme.
- The Bharat GPT program, a collaboration with IIT Bombay since 2014, aims to harness generative AI, drawing inspiration from large language models like ChatGPT. This initiative aligns with Jio’s broader strategy to explore the transformative potential of artificial intelligence across various industries.
CEBR Forecasts India As Third-Largest Economy By 2032, Global Economic Leader By Century’s End
India is set to become the world’s third-largest economy by 2032, and will eventually surpass China and the United States to become the “world’s largest economic superpower” by the end of this century, as per a report released by the Centre for Economics and Business Research (CEBR).
- India will sustain “robust economic growth”, averaging 6.5 percent from 2024 to 2028, CEBR stated in its ‘World Economic League Table 2024’ report. This will result in the country surpassing Germany to become the fourth-largest economy in 2027, and overtaking Japan to become the third-largest economy by 2032, it added.
- Key drivers include India’s large and youthful population, a growing middle class, a dynamic entrepreneurial sector, and increasing global economic integration, the report said.
Israel grants Intel $3.2 billion for new $25 billion chip plant
Israel’s government agreed to give Intel Corp. a $3.2 billion grant for a new $25 billion chip plant it plans to build in southern Israel, both sides said, in what is the largest investment ever by a company in Israel.
- This marks the largest investment ever made by a company in Israel, showcasing significant support amid the ongoing conflict with the Palestinian militant group Hamas.
- The chosen site for the expansion, Kiryat Gat, is located 42 km (26 miles) from the Hamas-controlled Gaza Strip. Intel views this expansion as a crucial element in fostering a more resilient global supply chain, aligning with the company’s broader strategy.
SPORTS
IOA forms three-member ad hoc committee to run affairs of suspended WFI
The Indian Olympic Association (IOA) announced a three-member ad-hoc committee, headed by its Executive Committee member Bhupinder Singh Bajwa, to run the Wrestling Federation of India (WFI) following the newly-elected federation’s ‘suspension.’
- Two days ago, the Union Sports Ministry had asked the WFI to suspend its activities following some arbitrary decisions taken by its newly-elected president and requested the IOA to form a panel to run the WFI.
- The IOA has named a three-member panel, also comprising Olympic gold medallist hockey player M.M. Somaya and former National champion shuttler Manjusha Kanwar, and tasked it “with overseeing and supervising WFI’s operations, which include athlete selection, submitting entries for athletes to participate in international events, organising sports activities, handling bank accounts, managing the website, related responsibilities.
Indian Wrestler Pooja Dhanda Suspended for One Year Due to Whereabouts Failures
Indian wrestler Pooja Dhanda, a decorated athlete with international accolades, has been suspended for one year by the National Anti-Doping Agency (NADA) due to three whereabouts failures.
- Pooja Dhanda was charged with three whereabouts failures and banned for one year by the disciplinary panel on December 5, 2023. Her suspension started on June 15, 2023.
- Apart from being a world championships bronze medallist, Pooja Dhanda won the silver medal at the 2018 Commonwealth Games and also the silver medal at the Youth Olympic Games in 2010.
SCIENCE & TECHNOLOGY
Pakistan Successfully Tests Advanced Rocket System Fatah-II
Pakistan’s military successfully conducted a flight test of the indigenously developed guided multi-launch rocket system Fatah-II , showcasing a significant advancement in its missile capabilities. The system boasts a 400-kilometer range and advanced features, marking a major milestone for the country’s defense program.
- With a 400-kilometer range, Fatah-II significantly expands Pakistan’s strike capabilities compared to the previous Fatah-1 system (250 kilometers). This enhances strategic deterrence and provides greater operational flexibility.
- The system features “state-of-the-art avionics, sophisticated navigation system, and unique flight trajectory,” according to the Inter-Services Public Relations (ISPR), ensuring high accuracy in hitting designated targets.