1. ICICI Prudential mutual fund launches India’s first Nifty auto Index
Tags: Economy/Finance
The ICICI Prudential Mutual Fund has launched the country’s first auto index fund, the ICICI Prudential Nifty Auto Index Fund.
The fund will track the Nifty Auto Index which has been designed to reflect the performance of the automobiles sector. The index comprises 15 listed companies and represents auto-related sectors such as auto ancillaries and tyres too.
Nifty is an Index of the National Stock Exchange.
Mutual Funds are regulated by Securities Exchange Board of India (SEBI).
IMPORTANT FACTS -
ICICI Prudential Mutual Fund :
- ICICI Prudential mutual fund is one of the largest Asset management Company in India.
- It is a joint venture of ICICI Bank and United Kingdom’s Prudential Company.
- Chief executive officer: Nimesh Shah
- Headquarters: Mumbai
2. HDFC, ICICI, Axis Bank allowed to provide services for overseas procurement
Tags: Economy/Finance
The Defence Ministry on 7 July has approved three Private Sector Banks to provide financial services in overseas procurement.
The ministry has allowed HDFC Bank, ICICI Bank and Axis Bank to provide letter of credit and direct bank transfer business for overseas procurement.
In this regard, PCDA on behalf of the Ministry of Defence had recently signed a Memorandum of Understanding (MoU) with these three banks in New Delhi.
Till now only authorized public sector banks were used to provide these services to the Ministry of Defence.
For the first time, three private sector banks have also been allowed by the Defence Ministry to provide financial services for overseas procurement.
Selected banks can be allotted with LC business of Rs 2,000 crore (Rs 666 Crore for each bank under both capital as well as Revenue) on capital and revenue side for a period of one year on concurrent basis.
The performance of these banks will be regularly monitored so that further action can be taken as required.
3. ICICI Bank introduces 'Campus Power' digital platform for higher education
Tags: National
ICICI Bank unveiled a digital platform named "Campus Power" to assist students seeking higher education in India and abroad.
This digital platform will help in meeting the needs of the students as well as their parents and different colleges and universities.
With this platform, children studying abroad will get the benefit of many facilities like education loan, foreign currency exchange, credit and debit card facility, etc., along with transferring money.
Campus Power Platform provides information on various value added services related to higher education in Canada, UK, Germany, USA apart from India.
Through this platform, students will be able to get information about colleges and universities of many countries like America, Canada, Germany, UK etc. for higher education.
It will give all the information about the way of admission, fees, travelling expenses etc. to the children in the college.
Apart from the customers of ICICI Bank, customers of other banks will also get the benefit of this campus power platform of ICICI Bank.
About ICICI Bank -
ICICI Bank is India's leading banking and financial services institution.
Its full name is Industrial Credit and Investment Corporation of India.
It is the third largest bank in India. It is the largest private sector bank in India in terms of market capitalization.
Established – 5 January 1994
MD & CEO- Sandeep Bakshi
4. Govt declares ICICI, HDFC, NPCI's IT resources as critical information infrastructure
Tags: National News
The government has declared the IT resources of ICICI Bank, HDFC Bank and UPI managing entity NPCI as 'critical information infrastructure' under Section 70 of the IT Act, 2000.
Damage to them will have implications for national security and any person who tampers with or accesses them unauthorizedly can be jailed for up to 10 years.
About Critical Information Infrastructure (CII)
According to the Information Technology Act of 2000, 'critical information infrastructure' as a computer resource means its inability or loss to have a disastrous effect on national security, economy, public health or security.
The government has the power, under the Act, to declare any data, database, IT network or communication infrastructure as a CII for the protection of that digital asset.
Why is CII classification and protection necessary?
Governments around the world are moving quickly to protect their critical information infrastructure.
IT resources are the backbone of many important functions in a country's infrastructure, and given their interrelationship, any disruption can have cascading effects across sectors.
For example, failure of information technology in power grids can lead to prolonged disruptions in other sectors like healthcare, banking services.
In October 2020, as India grappled with the pandemic, Mumbai's electricity grid supply suddenly snapped, affecting hospitals, trains and businesses in the big city.
It was caused by a cyber attack.
National Critical Information Infrastructure Sectors- National Critical Information Infrastructure Protection Centre (NCIIPC) has identified the following critical information infrastructure-
Electricity and Energy
Banking, Financial Services & Insurance
Telecom
Transport
Government
Strategic & Public Enterprises
National Critical Information Infrastructure Protection Centre (NCIIPC)
It is the nodal agency for taking all measures to protect the nation’s critical information infrastructure.
It was established in January 2014.
It guards CII from unauthorised access, modification, use, disclosure, disruption, incapacitation or distraction.
5. Airtel Payments Bank partners with ICICI Lombard to provide smartphone insurance
Tags:
In a bid to bolster the Indian mobile insurance industry, Airtel Payments Bank announced its partnership with ICICI General Insurance Company to provide smartphone insurance
The smartphone insurance cover provides financial protection against damage to the phone and its screen resulting from accidents or liquid spills
The customers can get insured for a sum equal to the purchase price of their smartphone in the range of Rs 10,000 to Rs 1,00,000
Monthly Premium starting at Rs 1299
Customers can buy this insurance policy on their own using Airtel Thanks App within 10 days of purchasing the phone
Insurance will be issued without any device health check.
The Company will pay for two claims up to the sum insured for a policyholder during the insurance period, alongside free pickup & delivery for the phone
Important Facts-
As per 2021 Deloitte Report, India have almost 1.2 billion mobile subscribers. Out of these, about 750 million were smartphone users and this number is likely to reach 1 billion by 2026.
In February 2022, these two companies also partnered to offer insurance solutions against cybercrimes, and financial frauds to its customers related to banking, credit or debit card, as well as protection against threats such as identity theft, phishing, and email spoofing.
Important for Exam
The Insurance Regulatory and Development Authority of India (IRDAI) is a regulatory body under the jurisdiction of Ministry of Finance , Government of India and is tasked with regulating and licensing the insurance and re-insurance industries in India.
It was constituted by the Insurance Regulatory and Development Authority Act, 1999
Headquarters are in Hyderabad, Telangana
6. Farmers debt increased by 53% in the last 6 years
Tags: Economy/Finance
The Government of India has informed the Lok Sabha on 15 March 2022 that the farmers’ debts in the country have increased by 53% over the past six years.
In 2015-16 the total debt of the farmers to the scheduled commercial banks was Rs 12 Lakh crores which jumped to Rs 18.4 lakh crore in 2020-21.
The number of such loan accounts increased from 6.9 crore to more than 10 crore.
The growth of farmers’ debt burden is highest in Maharashtra, an increase of 116% in the outstanding amounts due over the six-year period. The state also has the highest agricultural loan in the country with a total loan amount of Rs 5.5. Lakh crore. The State also consistently has the largest number of farmer suicides, as recorded by the National Crime Records Bureau.
Other States which saw significant increase in farmers’ debt burden include Odisha (76%), Tamil Nadu (68%), Andhra Pradesh (65%) and Gujarat (64%).
The state which saw the highest drop in the farmer debt was Karnataka, posting a 37% drop.
Concept Clearing
Scheduled Commercial Banks
Scheduled banks are those banks in India which are included in the second schedule of the Reserve Bank of India act 1934. These banks are all allowed to participate in the clearing house. They can participate in government business (buying and selling of government securities etc). They have to maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) etc.
Commercial means these banks work for profit and earning profit is their main aim.
Which type of banks comes under the Scheduled Commercial Bank category in India?
Public sector banks ; Banks in which the government of India holds 51% or more equity shares are called public sector banks. for e.g SBI, BOB, Canara Bank, PNB etc.
Private Sector Banks : Banks in which the non-government person (private persons)holds 51% or more equity shares are called public sector banks. for e.g HDFC Bank, ICICI bank, Yes bank, IDBI bank, Kotak Mahindra, Karnataka bank etc.
Foreign Banks : Banks in which foreigners hold 51% or more equity shares in the banks. For e.g Citibank, HSBC bank, Standard Chartered Banks etc.
7. RBI lifts all restrictions on HDFC Bank's new digital launches
Tags: Economics/Business
Reserve Bank of India has lifted the restriction placed on the largest private bank , HDFC Bank digital business plan . In December 2020, RBI imposed a ban on the bank from new digital launches and getting new customers for its credit card business.
This was done by the RBI after it received complaints from the bank customers of glitches in the bank's internet banking and mobile banking based services.
In August 2021, RBI lifted the ban on its credit card business but the restriction on its new digital launches was not lifted. Now all the restrictions have been removed.
Important for Exams
The Largest issuer of Credit cards in India : HDFC Bank
The second largest issuer of credit is SBI and then ICICI bank
The largest issuer of Debit Cards in India : SBI .
HDFC Bank
It is the largest private bank in India .
It is the second largest bank in India after SBI
The headquarter of HDFC bank is Mumbai.
- Chief Executive Officer (CEO): Shashidhar Jagdhisan
8. Madhuri Puri Buch to be the new Chairperson of SEBI
Tags: Person in news
Madhuri Puri Buch has been named the chairperson of the Securities and Exchange Board of India (SEBI) for three years.
She is the first woman to head the capital market regulator as the tenure of incumbent Ajay Tyagi ends on February 28, 2022.
Buch will not only be the first woman but also the first person from the private sector to be appointed as the chairperson of SEBI.
She started her career with ICICI Bank and later went on to become Managing Director( MD) and Chief Executive Officer (CEO) at ICICI Securities from Feb 2009 to May 2011. In 2011, she left for Singapore to join Greater Pacific Capital LLP.
How are chief of the various financial regulating bodies in India selected
The candidates are shortlisted by the Financial Sector Regulatory Appointments Search Committee (FSRASC) headed by the cabinet secretary.
Based upon interactions, the FSRASC recommended the name to the appointments committee of the cabinet headed by Prime Minister Narendra Modi.
Important for Exam
Various Regulators in India
Insurance sector regulator : IRDAI (Insurance and Regulatory Authority of India ), Chairman Mr Subhash Chandra Khuntia
Banks regulator: RBI(Reserve Bank of India ) Governor Shakti Kanta Das
Capital Market regulator: SEBI(Securities Exchange Board of India ),Chairman :Madhuri Puri Buch
Pension Market regulator: PFRDA(Pension Fund and Regulatory Development Authority of India ),Chairman Supratim Bandyopadhyay,
Regulator of IFSC(International Financial Service Center ): International Financial Services Centers Authority, Chairperson Mrs .Injeti Srinivas
Current Cabinet Secretary : Rajiv Gauba
SEBI
Securities Exchange Board of India(SEBI) was set up on 12 April 1988 and it was given statutory status by the SEBI act 1992 on 30 January 1992.
It comes under the Ministry of Finance , Government of India .
It is the regulator of the Capital market and Commodities market in India .
Capital markets include securities markets and Secondary markets like stock exchanges .
The first SEBI chairman was Dr S A Dave (1988-90)
Madhuri Puri Buch will be the 10th Chairperson of the SEBI.
U.K.Sinha was the longest-serving chairman . He was chairman from 18 February 2011 to 10 February 2017 (around 6 years).
9. IBA 17th Annual Banking Technology Award 2021
Tags: Awards
Indian Bank Association (IBA) has announced its banking technology award for 2021 on 14 February 2022 .
Winner Banks lists :
| Serial No | Category | Segment | Winner |
| 1 | Best Technology Bank of the Year | Large banks Medium Banks Small Bank Foreign Bank RRB Co-operative Bank | Bank of Baroda |
| 2 | Best Use of AI/ ML T & Data | Large banks Small Banks Regional Rural Banks | ICICI Bank Ltd |
| 3 | Best IT Risk & Cyber Security Initiatives | Large bank Medium bank Small Bank Foreign Bank Regional Rural Banks Co-operative Banks Small Finance/Payments Bank | Union Bank of India |
| 4 | Best Digital Financial Inclusion Initiatives | Large Banks Small Banks Regional Rural Banks | State Bank of India |
| 5 | Best Payments Initiatives | Public Banks Private Banks | State Bank of India |
| 6 | Cloud Adoption | Large Banks Medium Banks Small Banks Foreign Bank Regional Rural Bank | Union Bank of India |
| 7 | Best Fintech Adoption | Large Banks Medium Banks Small Banks Regional Rural Bank | ICICI Bank |
Source IBA
Indian Bank Association
The Indian Banks' Association (IBA) was formed on September 26, 1946 with 22 members. As of April ,2018 the total Membership of the Association is 239.
It includes Public sector Bank., Private Sector Banks , Foreign Banks , Co-operatives ,Regional Rural Bank,and All India Financial Institutions .
It is a representative body of banks in India to promote and develop in India sound and progressive banking principles, practises and conventions and to contribute to the developments of creative banking.
It helps the government in formulating Human Resources policy for the banking sector .
Current Chairman : UCO Bank CEO Atul Kumar Goel is the chairman of the Indian Banks' Association (IBA) for 2021-22
Headquarters of IBA : Mumbai
10. Airtel Payment bank launches cyber insurance for its customer with ICICI Lombard
Tags: National News
India’s first payment bank ,Airtel Payment Bank has launched a cyber insurance policy for its customers in partnership with ICICI Lombard General Insurance company .
The Airtel payment bank customer can buy the policy from the Airtel Thanks App.
The bank’s policyholder will be provided financial protection by ICICI Lombard in case they are a victim of financial frauds while doing online transactions relating to banking, credit cards, debit cards etc.
Airtel Payment Bank :
- It started its operation January 2017 and is the first payment bank in India
- Its Headquarters: New Delhi
ICICI lombard General Insurance
- It is a joint venture of ICICI bank and Canada based Fairfax Financial Holdings.
- The Headquarters of ICICI Lombard General Insurance : Mumbai .
Concepts clearing
What is life Insurance and General Insurance
Life Insurance
- It is a contract between an insurance company and a human being where the company promises to pay a sum of money in case of the death of the human being .
- Important Life Insurance companies in India are LIC, ICICI Prudential,Max Life Insurance etc.
General Insurance
- Unlike life insurance in General Insurance, Non Human beings' life or objects which are not living are insured .
- For example crops insurance , cow insurance,buffallo insurance etc . They are living but they are non-human hence they will come under General Insurance .
- Some of the examples of non life objects are houses, cars, jewellery,etc. So if we insure our cars then it will come under General Insurance
Health Insurance
- In health insurance a person(human being ) is insured for hospitalisation where the insurance company will pay for hospital bills if the person falls ill.
- In India, Health Insurance can be provided by Life Insurance companies, General Insurance companies or specialised Health Insurance companies .
- It means it can be offered by LIC, ICICI Lombard or Star Health.
Insurance sector in India is regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
Headquarters of IRDAI : Hyderabad
