Issue: 1288
·
PM Surya Ghar: Muft Bijli Yojana Achieves Milestone of Over
50 Lakh Rooftop Solar Installations.
·
NaBFID eyes $4 billion via special forex swap facility.
·
ONGC profit doubles to Rs 17,034 crore on higher oil prices.
·
LIC's OFS oversubscribed 3.32 times; govt uses 4% greenshoe
option.
·
Sebi mulls depository receipts against REIT, publicly listed
InvIT units.
·
'No third-party insurance, no fuel': SC asks Centre to launch
pilot project.
·
Govt links nearly 102.8 mn Farmer IDs to PM-KISAN,
procurement platforms.
·
Nabard withdraws Rs.8,000 crore bond issue as investors seek
higher yields.
Household savings as share
of GDP rise to 21.7 pc in FY25: Household savings as a share of GDP have risen
from 20 per cent in FY23 to 21.7 per cent in 2024-25, and both the government
and the RBI have undertaken measures to enhance incomes, Parliament was
informed on Tuesday. "According to the new series of GDP estimates
(Base Year 2022-23) released by the Ministry of Statistics and Programme
Implementation, household savings (inclusive of physical savings) increased
from Rs 52.25 lakh crore in 2022-23 to Rs 69.01 lakh crore in 2024-25,"
Minister of State for Finance Pankaj Chaudhary said in a written reply to the
Rajya Sabha. As a share of GDP, he said, household savings have
grown from 20 per cent in 2022-23 to 21.7 per cent in 2024-25.
(Moneycontrol)
Indian economy to hit USD
5-trillion mark in FY29 as per IMF: FM: Indian economy is set to cross
USD 5-trillion mark in FY29 as per the International Monetary Fund (IMF) and
the government has adopted a broad-based growth strategy to achieve the
milestone, Finance Minister Nirmala Sitharaman said in the Rajya Sabha on
Tuesday. As per the World Economic Outlook database (April 2026) published by
the IMF, India’s GDP at current prices is projected to be around USD 5.1
trillion by 2028-29, she said in a written reply..
(Business Line)
NSE's closing auction skews
MF NAVs, creates winners and losers: The pricing anomaly triggered
by the National Stock Exchange’s new closing auction session (CAS) has spilled
over into mutual fund (MF) schemes’ net asset values (NAVs), producing winners
and losers among investors who transacted over the past two days. Investors who
bought into largecap-oriented schemes before Monday’s 3 pm cutoff were allotted
units at inflated NAVs. Those who submitted redemption requests before the
cutoff, by contrast, benefited from the elevated valuations. Tuesday’s gap-down
opening unwound much of Monday’s late-session surge. But another sharp jump
during the closing auction kept NSE closing prices elevated, preventing the
full impact of the earlier excess from being reflected in fund NAVs. As a
result, investors who subscribed on Monday have yet to absorb the full
mark-to-market loss. Meanwhile, subscriptions and redemptions placed on Tuesday
will also be processed at elevated NAVs, extending the pricing distortion into
a second day.
(Business Standard)
Bank Retirees’ body wants
payment of ex-gratia to private sector bank pensioners: Many private sector banks, who
are party to the 12th Bipartite Settlement/8th Joint Note, have neither
implemented payment of ex-gratia to the pensioners nor extended an option for
pension to the resignees so far, claimed the All Kerala Bank Retirees’
Federation (AKBRF). It is a matter of sadness that the managements of these
banks are not considering the plight of their retired employees and officers,
said KS Krishna, General Secretary, AKBRF.
(Business Line)
Govt moves Bill to levy MDR
on UPI, digital payments on big merchants; no fee for consumers: Any electronic mode of payment
outside the negative list, notified by the Finance Ministry, will attract
Merchant Discount Rate (MDR) and one of them could be unified payment interface
(UPI), sources have said. The list will be notified once the Taxation and Other
Laws (Amendment) Bill (ToLA) is enacted. Finance Minister Nirmala Sitahraman on
Tuesday introduced ToLA Bill in the Lok Sabha. Apart from various provisions,
the Bill aims to amend the Payment and Settlement Systems Act, 2007. The
amendment prescribes removing the reference of provision of Income-tax Act and
also to provide that “no bank or system provider shall impose, whether directly
or indirectly, any charge upon a person making or receiving a payment by using
one or more electronic modes of payment as may be notified by the Central
Government.”
(Business Line)
Banking system liquidity
improves on FCNR (B) inflows: Ahead of the Reserve Bank of
India’s monetary policy announcement on Wednesday, banking system liquidity has
improved on account of inflows from foreign currency non-resident bank {(FCNR)
(B)} deposits. The system liquidity was at a surplus of Rs 2.4 lakh crore as on
Monday, the highest since May 16. It averaged at Rs 1.64 lakh crore over the
past week, compared with Rs 1.07 lakh crore in July, according to data from the
Reserve Bank of India (RBI). Followed by the improved
liquidity, the weighted average call rate (WACR) eased to 5.06% on Tuesday
compared to 5.10% on Monday and an average of 5.23% in July. Volume in the call
market has also come down over the past few days due to improved liquidity.
(Financial Express)
Lack of proper training in
credit monitoring among reasons for frauds: CVC to banks: The Central Vigilance
Commission has advised banks on training to prevent frauds. Lack of proper
credit appraisal and monitoring is identified as a key reason for these issues.
Banks and financial institutions are urged to conduct training programs
focusing on these aspects. This advice comes as part of a preventive vigilance
campaign for public administration. The commission seeks action taken reports
by November 30.
(Economic Times)
Public sector
banks lag in RBI penalty count, but lead in cost: RBI imposes penalties on lenders as the
banking regulator. By number of cases, cooperative banks lead with 71 per cent
of the total in FY26. Public sector banks (PSBs) top the penalty amount list,
accounting for 34 per cent. PSBs’ share of penalty cases has shrunk from 50.98
per cent in FY20 to 5.39 per cent in FY26. Penalty cases against regulated
entities have risen since FY20. Customer-service lapses account for the largest
share of cases of penalty on banks, while KYC (know your customer) and
governance failures dominate for NBFCs.
(Business Standard)
SC asks RBI to
frame uniform protocol for banks dealing with cyber fraud: The Supreme Court on Tuesday directed the
Reserve Bank of India (RBI) to put in place a standard operating procedure
(SOP) for banks to deal with cyberfraud cases, including ‘digital arrests’, and
mule accounts within four weeks. The SOP will cover temporary hold on
debit from suspected accounts, a grievance redressal mechanism, a system for restoring
defrauded money, and measures to create public awareness of these facilities.
(Business Standard)
Govt planning to
incentivize vehicles blended with over 20% ethanol? Heavy Industries Ministry
answers: The Ministry of Heavy
Industries on Tuesday said it has not formulated any separate phased national
policy to incentivise flex-fuel vehicles operating on fuel blended with
"more than 20 per cent ethanol".The Heavy Industries Ministry also
stated that it has not conducted any study regarding incentivization of
flex-fuel and electric vehicles. The Centre has defended its ethanol blending
programme, saying extensive testing and large-scale field experience had found
no evidence that E20 (blended with 20 per cent ethanol) petrol causes abnormal
engine wear, corrosion or reduced vehicle life.
(Moneycontrol)
Govt offers new tax breaks
in bid to lure foreign capital; long-term exemptions across electronics, data
centres:
The Taxation
and Other Laws (Amendment) Bill, 2026, expected to be presented in the
Parliament this week, offers long-term tax holidays for a clutch of sectors,
and extends the waivers for some others. It also eases the conditions for
India-domiciled foreign funds to avail tax exemption on their global income.
The existing tax break for foreign companies providing capital goods and
machinery to contract manufacturers and warehouses in the electronics sector
has been extended by 10 years through March, 2041. The move will come in handy
for Big Tech companies including Apple and Google who plan to scale up
manufacturing in India over the next few years.
(Financial Express)
FSSAI ban: Dabur to explore
legal options, 100% claim labels to be ‘transitioned’: Dabur has been banned from selling multiple products
over allegations of ‘misleading claims’ on the packaging. The Food Safety and
Standards Authority came down heavily against the company on Monday, issuing
prohibition orders directing an immediate end to sale of such products. “FSSAI
has issued a Prohibition Order directing Dabur India Limited to immediately
cease the sale of food products carrying misleading “100%” claims,” the
regulatory body shared via X.
(Financial Express)
SEBI proposes Depository
Receipts for REITs, listed InvITs to widen foreign investor access: The Securities and Exchange
Board of India (SEBI) has proposed a regulatory framework to allow Real Estate
Investment Trusts (REITs) and publicly listed Infrastructure Investment Trusts
(InvITs) to issue Depository Receipts (DRs), a move aimed at broadening
overseas investment avenues and attracting more foreign capital into India's
real estate and infrastructure sectors. In a consultation paper
released on Tuesday, the regulator said the proposal would enable REITs and
publicly listed InvITs to issue foreign currency-denominated Depository
Receipts in permissible overseas jurisdictions. These DRs would be backed by
the underlying REIT or InvIT units deposited with a domestic custodian in
India.
(Business Today)
PM Surya Ghar achieves 5
million rooftop solar installations: The Ministry of New & Renewable Energy
(MNRE) said on Tuesday that the PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY)
has achieved solar power installations on 5 million residential roof tops. “The
PM Surya Ghar: Muft Bijli Yojana has crossed a landmark milestone with over
50.06 lakh households now benefiting from rooftop solar installations across
the country,” the MNRE said. Achieved in just over two years since its launch,
this milestone marks a significant acceleration compared to the 7.94 lakh
rooftop solar installations recorded over the previous 10 years, it added..
(Business Line)
Unexercised ESOP buyback
gains taxable as LTCG, not salary income: ITAT: The Income Tax Appellate Tribunal determined
that employee stock options are not considered part of salary perks until they
are exercised. Any gains from the repurchase of options, which have not yet
been exercised, are to be taxed as long-term capital gains. This case revolved
around a Flipkart executive who received Rs.2.33 crore from repurchased stock
options, affirming that the options are treated as capital assets.
(Economic Time)
WRONG-WAY RISK (WWR)
§ Wrong-Way
Risk refers to a situation where the probability of a counterparty default
increases simultaneously with the bank's exposure to that counterparty. For
example, if a bank lends to an oil company while oil prices are collapsing, the
company's creditworthiness deteriorates precisely when the bank's exposure
becomes riskier..
§ This
risk amplifies potential losses and poses significant challenges in credit risk
management, derivatives trading, and collateral valuation. Banks use stress
testing, diversification, and robust risk measurement models to mitigate
Wrong-Way Risk under Basel guidelines.
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 : 95.3487
INR
/ 1 GBP : 128.0237
INR
/ 1 EUR : 109.7165
INR
/100 JPY: 60.4700
EQUITY INDEX
Sensex:
78428.95 (-210.08)
NIFTY:
24614.90 (-159.40)
Bnk NIFTY: 57907.20 (-340.75)
National Handloom Day: Celebrated every
year since 2015 to honor India's rich handloom heritage and recognize the
contribution of handloom weavers to the country's economy and culture. The date
commemorates the launch of the Swadeshi Movement on 5 August 1905, which
promoted indigenous industries and products. Todsy is also observed as International
Traffic Light Day.
Historical events: 5 August is
associated with several important historical events in India and around the
world. In 1858, the Government of India Act came into effect, transferring the
administration of India from the East India Company to the British Crown after
the Revolt of 1857. In 1960, the African nation of Burkina Faso (then Upper
Volta) gained independence from France. On 5 August 2019, the Government of
India revoked the special status of Jammu & Kashmir by abrogating key
provisions of Article 370.
****Have a nice Day****
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