Issue: 1133
Govt sets up panel to analyse net FDI inflows amid subdued
numbers: The
central government has set up an inter-departmental committee to examine trends
behind India’s net foreign direct investment (FDI) inflows, amid subdued
numbers, Economic Affairs Secretary Anuradha Thakur said on February 3. The
panel, comprising officers from the Department of Economic Affairs (DEA) and
the Department for Promotion of Industry and Internal Trade (DPIIT), has also
commissioned a detailed statistical analysis from external specialist bodies. The
findings of this panel are expected within the next month.
(Moneycontrol)
India’s interests fully protected in US trade deal, $500 bn
commitment over five years: Govt source: Government sources on Tuesday sought to
clarify key aspects of the India-US trade agreement after US President Donald
Trump’s social media post triggered questions around tariffs, energy imports
and strategic autonomy. Addressing Donald Trump’s claim of a $500 billion
commitment, a government source said, “Trump forgot to write $500 billion in 5
years.” Officials clarified that the figure refers to five years and includes a
wide range of merchandise imports. “$500 billion dollars commitment is over a
five year period, includes many merchandise goods like energy, coal, gold,
silver, tech, aircraft, data centre,” a government source said.
(Moneycontrol)
Goldman Sachs upgrades India’s CY26 GDP growth to 6.9% after US
tariff cut:
Goldman
Sachs has flagged a positive macroeconomic outlook for India following the
conclusion of the US-India trade deal that lowers American reciprocal tariffs
on Indian goods to 18%. In its report titled “India: US-India conclude trade
deal: President Trump lowers ‘reciprocal’ tariffs on India to 18%”, Goldman
Sachs noted that President Trump announced on social media a reduction in the
reciprocal tariffs on Indian goods imports to 18% down from the earlier 25%,
‘effective immediately’. The report added that “on implementation, the deal
would lower India’s tariff rate and bring it in line with most other Asian
countries of around 15-19%”
(Business Line)
UPI transactions hit record high Rs 230 lakh crore in FY26 so
far, govt tells Rajya Sabha: Transactions
through the UPI touched a record value of Rs 230 lakh crore in the current
financial year till December, the government informed the Rajya Sabha on
Tuesday. Responding to supplementary questions during Question Hour, Minister
of State for Finance Pankaj Chaudhary said UPI transaction values were growing
at a fast pace. He noted that the Rs 230 lakh crore recorded so far in 2025-26
compares with a total transaction value of Rs 139 lakh crore in 2022-23.
(Financial Express)
Banks look to get export credit lines ready as US lowers tariff: Banks are poised to reopen
credit lines for Indian export sectors following the US's reduction of import
tariffs to 18%. This move is expected to quickly revive exports of garments,
gems, jewelry, leather, and chemicals, leading to increased demand for bank
loans. Public sector banks anticipate leading this export credit rebound in the
coming quarters.
(Economic Times)
Bharti AXA Life Insurance, Equitas Small Finance Bank ink pact: Bharti AXA Life Insurance has
partnered with Equitas Small Finance Bank. This collaboration aims to expand
life insurance access. Equitas Small Finance Bank's network will offer Bharti
AXA Life Insurance's savings and retirement plans. The partnership seeks to
boost financial preparedness, especially in semi-urban and rural areas. It
strengthens the distribution of life insurance products across India.
(Economic Times)
Ex-SBI MD Vinay Tonse to succeed Prashant Kumar as Yes Bank MD
& CEO: Yes
Bank late on Tuesday disclosed to the stock exchanges that the RBI has approved
Vinay Muralidhar Tonse as the MD & CEO of the bank for a period of three
years. Tonse’s appointment is subject to shareholder approval. Tonse will
succeed Prashant Kumar as the MD & CEO of the bank. Kumar’s term as MD
& CEO was extended by six months by the regulator, effective October 6,
2025. His term is scheduled to end on April 6, 2026. Tonse, like Kumar, is a
former State Bank of India (SBI) banker. He retired from SBI in November 2025
as managing director, heading the bank’s retail operations.
(Business Standard)
Sensex surges over 2,000 points on India-US trade deal, posts biggest single-day gain since November 2024: Markets witnessed a sharp rally on Tuesday, with the Sensex soaring 2,072.67 points or 2.54 per cent to close at 83,739.13, marking its biggest single-day gain in terms of points since November 22, 2024, when it had jumped 1,961.32 points, FPIs returned as big buyers on Tuesday, thanks to Indo-US trade deal. The Nifty 50 surged 639.15 points or 2.55 per cent to settle at 25,727.55, driven by a landmark India-US trade agreement that significantly eased tariff concerns. The Nifty, in fact, opened higher at 26,308.05 and rose further to 26,341.20, almost near its all-time high of 26,373.20, before turning weak from the peak.
(Business Line)
Walmart becomes first retailer to hit $1 trillion market value: Walmart became the first retailer ever to hit
$1 trillion in market valuation on Tuesday, riding on ?a year-long rally that
has seen its shares rise nearly 26%, placing it among the ?ranks of Big Tech
heavyweights such as Nvidia and Alphabet. Walmart’s ascent has been notable as
it has managed to tap into a mix of appealing simultaneously to higher-income
customers seeking value and convenience and retaining its core base of
lower-income shoppers. The stock has surged 468% over the past decade,
outpacing the S&P 500’s 264% gain, in part due to that dual strategy, which
competitors have struggled to replicate.
(Business Line)
Rupee sees best day in 6-years; analysts see more gains on US
trade deal: The
Indian rupee posted its strongest intraday session in nearly six years on
Tuesday after India sealed the long-awaited trade deal with the US. Analysts
expect the currency to strengthen further in the coming months. The currency
opened 1.23 per cent higher at 90.39 level on Tuesday against the greenback,
and rose as much as 90.13, or 1.56 per cent, the steepest gain since March 26,
2020. So far this year, the currency is down 0.28 per cent and has declined
5.17 per cent in the financial year to date. The rupee’s gains come after India
and the US reached a trade agreement following months of negotiations, although
details are yet to be released.
(Business Standard)
Spain considers social media ban for under-16s, joining others
in Europe: Spain
plans to ban social media access for children under 16, Spanish Prime Minister
Pedro Sanchez said Tuesday, in a move designed to shield young people from the
harms of online content. The progressive Spanish leader spoke at a summit in
the United Arab Emirates, where he chided the world's biggest tech companies
for allowing illegal content such as child sex abuse and nonconsensual
sexualised deepfake images and videos on their platforms, saying that
governments also needed to "stop turning a blind eye."
(Business Standard)
RBI to start 3-day deliberations on interest rate from Wednesday: The Reserve Bank's rate-setting panel will
start its three-day brainstorming for the next bi-monthly monetary policy on
Wednesday in the backdrop of growth-focused Union Budget, low inflation and
more recently the long-awaited India-US trade deal ending prolonged uncertainty
on the external front. Experts are of the view that the Reserve Bank of India
(RBI) has already reduced the key short-term lending rate (repo) by 125 basis
points since last February, and may go for status on rates as there are no
pressing concerns on either growth or inflation. However, some are of the
opinion that the central bank may go for one more rate to further borrowing
cost.
(Economic Times)
RBI asks banks to stay open on March 31 to close FY26 govt
accounts: The Reserve Bank of India (RBI) on Tuesday
said the government has asked banks handling government receipts and payments
to remain open on March 31, 2026, to ensure that all government transactions
are accounted for within the current financial year. Hence, the RBI has asked
agency banks to keep all branches dealing with government business open for
customer transactions on Tuesday, March 31. The move is aimed at facilitating
the timely booking of receipts and payments pertaining to the financial year
2025–26, which concludes on the same day.
(Business Standard)
Individually Validated Export License
§ An
Individually Validated License (IVL) is a specific, government-issued
authorization required for exporting controlled items—such as defense articles
or high-tech goods—to designated destinations or end-users.
§ Unlike
general licenses, an IVL requires a detailed, transaction-specific approval
process before shipment is permitted, ensuring compliance with national
security and foreign policy.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI
REF. RATE)
INR /
1 USD : 90.4495
INR /
1 GBP : 123.8875
INR /
1 EUR : 106.8558
INR
/100 JPY: 58.1900
EQUITY INDEX
Sensex: 83739.13 (+2072.67)
NIFTY: 25727.55 (+639.15)
Bnk
NIFTY: 60041.30 (+1422.30)
World cancer day: 4th February is
primarily observed worldwide as World Cancer Day, an international initiative
led by the Union for International Cancer Control (UICC) to raise awareness,
improve education, and catalyze personal, collective, and government action
against cancer. The 2026 theme focuses on "United by Unique,"
emphasizing personalized, patient-centered care.
Historical events: February 4 marks
significant historical events, including the 1922 Chauri Chaura incident in
India that led to the suspension of the Non-Cooperation Movement, and the 1948
independence of Sri Lanka.
****Have a nice
Day****
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