Issue: 1321
·
Ahead of Fed meeting, Donald Trump says US should have
world's lowest interest rate.
·
Tata Sons listing to unlock Rs.1.20-lakh crore value for
seven group companies.
·
Russia imports record fuel from India as Ukraine strikes hit
refineries.
·
No proposal for BRICS currency as of now, says MEA.
·
EU tables India FTA for Council signature, move closer to
landmark deal.
·
Indian Bank to enter life insurance business, soon to seek
board nod.
Xi says India, China are
partners, not rivals or threats: Chinese President Xi Jinping, in his two-day visit
to New Delhi for the BRICS summit on September 12-13, sought to project
India-China relations as a partnership rather than rivalry and a development
opportunity rather than threat, calling for greater economic cooperation as
well as joint shouldering of responsibility towards the Global South amid
international turbulence. With Beijing taking over chairship of the forum next
year, Xi pitched for a stronger BRICS role in countering unilateralism, tariff
measures and growing geopolitical conflicts while supporting multilateralism
and the WTO.
(Business Line)
Putin asks BRICS to
consider SWIFT alternative, a grain exchange, own reinsurance firm: Stressing that trade within
BRICS member countries has reached $1.2 trillion, Russian President Vladimir
Putin on Sunday sought “a closer look” on his proposals — establishing a BRICS
payment, depository and clearance infrastructure, a reinsurance mechanism, and
a grain exchange — terming those as highly promising. Though India has
clarified that there is no proposal to float a common BRICS currency, the
members are increasingly moving to set up BRICS Pay as an independent digital
payment and clearing infrastructure as an alternative option of systems like
Swift, in which trade settlement will be in local currencies. Similarly,
setting up a reinsurance company within BRICS will help insurers in member
countries not to wholly depend on existing players in Europe and US.
(Business Line)
BRICS Summit: PM Modi
pitches new startup fund, resilient supply chains and AI agriculture: Prime Minister Narendra Modi
on Sunday warned that the weaponisation of technology and critical minerals
could become a hindrance to shared progress. He also pushed for resilient supply
chains, inclusive technology adoption and deeper innovation-led cooperation
among BRICS economies. Addressing the BRICS session on “Resilience, Innovation,
Cooperation and Sustainability: Shaping the Future for Inclusive Global
Growth”, PM Modi proposed a BRICS Startup Innovation Fund. He also highlighted
initiatives covering logistics, digital agriculture, startups and crisis
preparedness.
(Financial Express)
Bharucha, Balasubramanian
believed to be in race for top position at HDFC Bank: HDFC Bank’s board may have
shortlisted the names of its Deputy Managing Director Kaizad Bharucha and K
Balasubramanian, Citi’s Chief Country Officer for India, for getting Reserve
Bank of India’s approval to appoint one of them as the Bank’s chief. The
central bank usually requires private sector banks to propose two names, who
will fit the bill in terms of its “fit and proper” criteria, for the top
position. While HDFC Bank veteran Bharucha’s appointment will signal that its
business as usual at the Bank, selection of Balasubramanian, who has been with
Citi for about three decades, will inject fresh blood into the top echelons of
the Bank.
(Business Line)
Banks seek RBI nod to use
new rules for old trade mismatches: Banks want RBI approval to
apply new rules for closing old trade deals. These unsettled transactions have
accumulated to nearly one lakh crore rupees over time. New regulations,
effective October 1, 2026, will empower banks to resolve these cases. This move
aims to prevent exporters from facing caution listing for past unsettled
trades. RBI deputy governor Rohit Jain will meet bank CEOs this week to discuss
the matter.
(Economic Times)
BoFA deal to get regulatory
go-ahead by December; Jio Credit's product plans, strategy to be redrawn: JFS: Jio Credit expects regulatory
approvals for its Rs 18,268 crore fund raise by December. This capital infusion
will enable Jio Credit to re-evaluate business strategies and product plans.
The company anticipates its assets under management to grow significantly after
the capital comes in. Bank of America will receive two board seats as part of
the partnership agreement.
(Economic Times)
J&K Bank receives ‘Best
CSR Overall Practices’ Award: Jammu and Kashmir Bank
received a national award for its corporate social responsibility practices.
The bank's commitment to sustainable social development was recognized at a
Bengaluru event. J&K Bank has invested ninety-six crores in societal
upliftment over three years. Its CSR programs focus on healthcare, education,
and livelihood generation. The bank continues to expand its reach and deepen
its social impact.
(Economic Times)
Finance Minister meets AIIB
chief and discusses opportunities to further deepen ties: Finance Minister Nirmala
Sitharaman met AIIB President Zou Jiay in New Delhi. They discussed deepening
the India-AIIB partnership and infrastructure priorities. Support for transport
connectivity and local-currency financing was also explored. Increased private
sector participation and AIIB's global presence were key topics. The meeting
occurred on the sidelines of the BRICS Summit.
(Economic Times)
RBI proposes temporary
debit holds on suspected money mule accounts: The Reserve Bank of India
(RBI) has proposed a standard operating procedure (SOP) for banks to place
temporary debit holds on amounts or accounts suspected to be linked to
money-mule activity and cyber-enabled financial fraud. The draft directions
have been issued following the Supreme Court’s August 4 order directing the
central bank to prescribe an SOP for temporary debit holds in such cases. Under
the proposed SOP, banks will have to immediately place a temporary debit hold
on a transaction identified as a suspected money mule transaction. If the
entire account is identified as a suspected money mule account, the hold can be
placed on the account.
(Business Standard)
India's semiconductor
sector draws $1.4 bn funding, half of it since 2025: India's semiconductor sector has attracted $1.4
billion in all-time equity funding across 281 funded companies, with nearly
half of this amount - $701 million - raised since 2025 alone, according to data
from Tracxn. The findings come days ahead of SEMICON India 2026, the country's
flagship semiconductor conference and exhibition, which will be held from
September 17-19 at Yashobhoomi in Dwarka, New Delhi. Prime Minister Narendra
Modi will inaugurate the fifth edition of SEMICON India 2026 on September 17, a
mega-event set to bring together global semiconductor industry leaders, government
officials, state representatives, and sector experts as India builds on the
momentum of its growing semiconductor ecosystem.
(Business Line)
Vodafone Idea denies Bharti
Airtel, Jio's charge of 'unfair' practice: Bharti Airtel and Reliance Jio say Vodafone
Idea (Vi) has been indulging in malpractices to wean away their mobile phone
customers, and want the Telecom Regulatory Authority of India (Trai) to
investigate the matter. In multiple conversations and official communications
to the regulator over the last few weeks, the country’s leading carriers
alleged specific unfair practices by the No 3 carrier, and asked the Trai to
direct Vi to look into these instances, three people aware of the development
said. They said the telcos have shared evidence to support the claims.
(Business Standard)
Government set to unveil
Cloud Sovereignty framework: The Government of India is expected to
announce a unified cloud sovereignty framework in the coming days, aimed at
ensuring that all government entities retain control over the country’s
mission-critical data, sources told businessline. Following consultations with
local cloud service providers (CSPs) and industry stakeholders, the Ministry of
Electronics and Information Technology (MeitY) has drawn up a list of
parameters for government entities to consider when working with cloud and
network service providers. These parameters include the deployment of
air-gapping solutions within the adopted cloud infrastructure, particularly in
the case of international CSPs. In an air-gapped setup, critical systems are
isolated from external networks, allowing them to continue operating
independently even if connectivity with a cloud provider’s overseas
infrastructure is disrupted. Such a solution physically separates information
networks to protect India’s sensitive data, even when hosted on foreign
hyperscaler platforms.
(Business Line)
IBBI proposes tighter
checks on personal guarantors, “related” creditors: The insolvency regulator is looking to tighten
rules aimed at preventing related parties of personal guarantors from
influencing loan repayment plans. In a discussion paper, the Insolvency and
Bankruptcy Board of India (IBBI) suggested a more foolproof definition of
related parties of personal guarantors and explicitly depriving them of any voting rights. It also proposed
independent valuation of the guarantor’s assets and closer scrutiny of
transactions that could undermine the funds available to lenders. The move is
expected to make it even more difficult for creditors to act in concert and
influence how the guarantor’s debts are settled.
(Financial Express)
BRICS Bank to expand with
new members, resources: Leaders of BRICS countries on Saturday resolved to
expand the membership of the New Development Bank (NDB), also known as BRICS
Bank, and create new financing mechanisms to support infrastructure and development
across the Global South. As per the New Delhi Declaration adopted by the
grouping, apart from reforming existing institutions for infrastructure and
development financing, the NDB should be strengthened further with a facility
for expedited consideration of applications from interested BRICS countries. The NDB, which operates
under a mandate set in the BRICS Summit in 2014, currently focuses its
financing on six primary sectors, including clean energy, transport
infrastructure, water and sanitation, social infrastructure and bridging the
digital divide. It is designed to support both public and private sector
projects through customised financial tools. One objective of the bank is also
to scale up local currency lending. Apart from India, China, Brazil, Russia and
South Africa, the UAE, Colombia, Uzbekistan, Egypt, Algeria and Bangladesh are
its members. Another set of countries– Uruguay, Ethiopia, Angola, and Zimbabwe
— are listed as prospective members.
(Financial Express)
TEMPORAL METHOD in currency translation
·
The temporal method, also
known as the historical method, converts the currency of a foreign subsidiary
into the currency of the parent company. It ensures accurate profit and loss
reporting when the subsidiary operates using a different functional currency
from the local currency.
·
The parent company's currency
is often referred to as the 'functional currency,' which is the currency used
for reporting and financial statements.
·
Monetary assets and
liabilities are translated using the exchange rate at the balance sheet date,
while non-monetary items use historical rates.
·
Exchange rate gains or losses
affect the parent company’s net earnings, which can impact earnings volatility.
·
Managing foreign currency
translation effective can enhance a company's financial performance and
stability.
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 : 95.7245
INR
/ 1 GBP : 129.4498
INR
/ 1 EUR : 111.1531
INR
/100 JPY: 62.1400
EQUITY INDEX
Sensex:
74781.76 (-120.83)
NIFTY:
23398.10 (-79.70)
Bnk NIFTY: 56606.55 (+134.60)
****WISHING A NICE DAY****
Visit our website www.thebankingupdates.com
For Regular updates, Monthly e-magazines &
Promotion Study materials
CLICK HERE TO JOIN OUR COMMUNITY/GROUP FOR
DAILY UPDATES
CLICK HERE TO JOIN OUR CHANNEL FOR DAILY
UPDATES & QUIZ
Contact us: # 8261802533
Email: bankingupdates2020@gmail.com
CLICK HERE TO ORDER BANK PROMOTION KIT