Current Affairs - Banking & Finance
Recently, Finance Secretary accused ratings agencies of “double standards” when assessing emerging markets and developing economies.
- Fitch, a rating agency, had stated that higher deficits and continued lack of clarity on medium-term consolidation plans in the recent Union Budget was its rationale for projecting of a downward trajectory in the country’s debt/GDP.
Former Reserve Bank of India (RBI) governor Urjit Patel has been appointed as a vice-president of the Asian Infrastructure Investment Bank (AIIB), a Beijing based multilateral development bank.
- He will succeed outgoing Vice President D J Pandian.
Airtel Payments Bank has been categorised as a scheduled bank by the Reserve Bank of India (RBI).
Meaning of Scheduled Bank
- The banks in the Indian banking system are sub categorized as Scheduled Banks, Non-Schedule Banks, Private Banks and Public Banks.
- Scheduled banks are those banks that are listed under Schedule II of the Reserve Bank of India Act, 1934.
On 9th December, 2021, Capital markets regulator Securities and Exchange Board of India (SEBI) proposed a regulatory framework for algorithmic trading (algo trading) by retail investors to make such trading safe and prevent market manipulations.
- At present, though the broker can identify the orders emanating from an Application Programming Interface (API), they are unable to differentiate between an algo and non-algo order emanating from an API.
On 12th November 2021, Prime Minister Narendra Modi virtually launched two innovative customer centric initiatives of RBI: ‘Retail Direct Scheme’ and ‘Reserve Bank - Integrated Ombudsman Scheme, 2021’.
Retail Direct Scheme
- RBI’s Retail Direct scheme will enable small investors to participate in the government’s bond market for their financial security.
The Reserve Bank of India (RBI) has issued a Small Finance Bank (SFB) licence to ‘Unity Small Finance Bank’ - a consortium of Centrum Financial Services Limited (CFSL), the small business lending arm of the Centrum Group, and Resilient Innovations Private Limited (BharatPe), a fintech company.
- This new bank license has been issued by the RBI after a gap of nearly 6 years.
Life Insurance Corporation of India (LIC), which is gearing up to launch a mega initial public offering (IPO), will now have a Managing Director and Chief Executive Officer instead of an Executive Chairman on the pattern of public sector banking industry.