Issue: 1245
· Trump, Vance, Iran speaker
Ghalibaf electronically signed deal: US official?.
· Andhra Pradesh, Google to
form task force for AI and digital governance.
· War effect: Gulf-based NRIs
double down on Indian term life plans.
· The rupee rose 0.42 per cent
to a five-week high of 94.72 per dollar, supported by lower oil prices.
· Sebi may reintroduce open
market buyback window in June 19 board meeting.
· India saw $4.7 billion current
account surplus in April.
· Bank of Maharashtra union
flags staff shortages, calls for hiring drive.
· EPFO cannot recover PF money
from retirees over employer lapses: HC
May goods exports jump 18%
to $45 bn; trade deficit widens to $28 bn: India’s goods exports
increased 18 per cent year-on-year in May to $45.20 billion, spurred by sectors
such as petroleum products, engineering goods and electronics, marking a steady
start for the current fiscal year despite persistent global headwinds. Quick
estimates by the Commerce Department showed that imports during the month also
surged, rising 20.62 per cent (year-on-year) to $73.41 billion, driven by
sectors such as petroleum, gold and electronics. Consequently, trade deficit in
May widened to $28.21 billion from $22.56 billion in May 2025, but it was
slightly lower than last month’s trade deficit of $28.38 billion.
(Business Line)
WPI rises to 9.68% in May;
Producer Price Index makes debut: With food and fuel prices on
high, wholesale inflation based on Wholesale Price Index (WPI) surged to 9.68
per cent in May, government reported on Monday. This is the first data based on
new base year of 2022-23. Wholesale inflation was 8.26 per cent in April. According
to a statement by Commerce Ministry, across major Groups, yearly inflation for
primary articles, fuel and power, and manufactured products is 4.99 per cent,
30.33 per cent, and 7.48 per cent, respectively in May whereas it was 3.78 per
cent, 24.89 per cent, and 6.68 per cent, respectively, The sharp rise in WPI
inflation reflects the impact of the West Asia crisis and the effective
blockade of the Strait of Hormuz through which the majority of the crude oil is
imported to India, and its spillover effect on food prices.
(Business Line)
FM Sitharaman hints at more
measures to boost foreign inflows: Finance Minister Nirmala
Sitharaman on Monday indicated more measures are on the way to attract foreign
capital. She also assured that the government is ready for any kind of
exigencies. “The withholding tax treatment which we have offered will be the
first step towards drawing foreign capital back, although at the moment it’s
confined to bond mkt. But certainly, that is not the end of story, there will
be more. We recognize we need more foreign capital to come in,” Sitharaman said
while addressing the ‘Mindmine Summit’, organised by Hero Enterprises.
(Business Line)
RBI tightens rules to curb
mis-selling by lenders, bans 'dark patterns': The Reserve Bank of India on
Monday issued rules to curb mis-selling of financial products by lenders,
banning deceptive marketing tactics and tightening norms around customer
consent, disclosures and sales practices. The central bank has banned
the use of "dark patterns" in digital interfaces, defining them as
design or user-experience techniques that mislead or trick customers into taking
actions they did not intend. Lenders and their agents will now be barred from
employing such practices across websites, mobile apps and other sales channels,
the RBI said. The rules form part of
amendments to the RBI's responsible business conduct directions and will come
into force from January 1, 2027. In cases where mis-selling of
a financial product/service is established, the bank shall refund the entire
amount ... and also intimate the customer about cancellation of the sale,"
the RBI said. The central bank also
prohibited lenders from forcing customers into buying additional products, a
practice known as bundling, unless offered or without additional cost.
(Moneycontrol)
Government to sell up to 5%
stake in ?General Insurance Corporation: The Indian government plans to
sell up to ?a 5 per cent stake in ?General Insurance Corporation (GIC) via an
offer ?for sale (OFS), the ?state-run insurer said on
Monday. The OFS includes ?a base offer
of up to a ?2 per cent equity stake in GIC, ?with ?an option to sell ?an additional 3 per cent if
the issue is oversubscribed. The floor price is ?set at ??352
per share ($3.72), implying a discount of about 9.1 per cent to the ?company’s
last close on Monday.
(Business Line)
SEBI introduces dynamic
price bands for ETFs: SEBI has revamped the trading
framework for exchange traded funds (ETFs), introducing dynamic price bands, a
new methodology for determining base prices and a pre-open call auction for
commodity ETFs to bring ETF trading more in line with movements in their
underlying assets. The changes seek to address
the mismatch created by the existing framework, under which ETF price bands
were based on a two-day-old net NAV and a uniform price limit irrespective of
the underlying asset’s volatility. The revised norms will come into effect from
September 1.
(Business Line)
Govt needs to revive NITI
Aayog's PSU, PSB privatisation program: Arvind Panagariya: Former NITI Aayog vice
chairman Arvind Panagariya urges the government to revive privatization of
public sector undertakings and banks. He believes this is crucial for India's
economic reforms. Panagariya also suggests establishing a dedicated
privatization ministry to speed up disinvestment. He notes that foreign
investors remain positive about India's long-term growth prospects despite
recent capital outflows.
(Economic Times)
NBFCs can distribute
insurance products without seeking RBI approval: RBI on Monday allowed NBFCs to
undertake insurance distribution business without seeking prior approval from
the central bank, provided they obtain the necessary authorisation from the IRDAI.
The move forms part of the RBI’s Responsible Business Conduct (Second
Amendment) Directions, 2026, which will come into effect from January 1, 2027. Under
the revised framework, NBFCs will be permitted to distribute insurance products
subject to compliance with applicable regulations issued by Irdai.
(Business Standard)
Anthropic pulling the plug
will push Indian IT firms to adopt model-agnostic architectures, AI fallback
plans: The US government’s
restrictions on foreign access to Anthropic’s Fable 5 and Mythos 5 models have
exposed a new vulnerability for India’s $280-billion IT services industry. IT
firms will now have to rush to build backup AI strategies and diversify use
cases across multiple models to shield client projects from sudden geopolitical
disruptions. On June 12, Anthropic received a directive
requiring the company to suspend access to Fable 5 and Mythos 5 for all foreign
nationals, whether they are inside or outside the United States, including
foreign-national employees working at the company.
(Moneycontrol)
US Supreme Court rejects
TCS challenge to $168 million award in trade secrets case: The US Supreme Court turned away on Monday a
bid by Tata Consultancy Services to overturn a $168 million award won against
it by DXC Technology for allegedly stealing trade secrets related to
life-insurance software. Tata had appealed after a lower court upheld a
judge's decision to set the award at $56 million in compensatory damages and
$112 million in punitive damages to Ashburn, Virginia-based DXC. Tata had
argued that the damages award could not be justified under U.S. law regarding
trade secrets.
(Moneycontrol)
India hikes
windfall tax on diesel and ATF exports, petrol levy unchanged: The government on Monday hiked windfall
gains tax on exports of diesel and aviation turbine fuel (ATF), while retaining
the levy on petrol for the fortnight beginning June 16. The rate of special
additional excise duty (SAED) on export of diesel will be Rs 14/litre, up from
Rs 13.5/litre at present. SAED on export of ATF will be Rs 12.5/litre, up from
Rs 9.5/litre. There is no change in the rate of duty on exports of petrol and
it continues to be at Rs 1.5 per litre.
(Business Line)
SEBI proposes changes to
ETF base price, price band rules: SEBI, on Monday proposed a new
framework for pricing exchange-traded funds (ETFs), aiming to narrow the gap
between ETF trading prices and the value of their underlying assets. Under
the proposal, the base price used to determine trading limits for ETFs would be
calculated using the volume-weighted average closing price during the final 30
minutes of the previous trading session. If an ETF does not trade during that
period, the base price would be based on its last traded price from the
previous session. In cases where there is no trading activity during the entire
session, the latest available net asset value (NAV) would be used as the base
price. SEBI has also proposed
introducing dynamic price bands for equity and debt ETFs. The initial trading
limit would be set at plus or minus 10 per cent and could be expanded to plus
or minus 20 per cent after a cooling-off period.
(Moneycontrol)
RBI allows banks to open
repatriable rupee accounts for overseas investors: RBI has permitted authorised
dealer (AD) banks to open repatriable rupee accounts for overseas individuals
investing in listed Indian companies, operationalising the government’s move to
broaden participation in the domestic equity market beyond NRIs and OCIs. The
RBI amended foreign exchange regulations governing payment and reporting
requirements for non-debt investments following changes made by the Centre to
the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. The amendment
allows all individuals resident outside India to invest in equity instruments
of listed Indian companies under Schedule III of the regulations. Under
the revised framework, overseas individual investors can make investments
through inward remittances or funds held in repatriable deposit accounts. Such
investors will be required to designate a repatriable rupee account that will
be used exclusively for investments under this route.
(Business Standard)
RBI issues master direction
on authorization to operate a Payment System: Regulatory orders were given
on Monday for consolidating the existing guidelines on the authorisation of
payment system operators (PSOs). The directions, which come
into effect immediately, provide a unified framework covering eligibility
criteria, authorisation, perpetual validity of licences, voluntary surrender of
authorisation, and cooling-off requirements for PSOs. The central bank said
authorisation granted to new PSOs would be perpetually valid.
(Business Standard)
UNIFIED MANAGED ACCOUNT
·
A
unified managed account (UMA) is a professionally managed private investment
account that can include multiple types of investments all in a single account.
Investments may include mutual funds, stocks, bonds, and exchange-traded funds.
Unified managed accounts are often rebalanced on a specified schedule.
·
The
unified managed account is one of a few options a high net worth investor has
for managing their assets. The unified managed account is an evolution of the
separately managed account, which is similar in that it is a professionally
managed account that is rebalanced often. However, separately managed accounts
are typically not known for pooling multiple investments and investment
vehicles with varying objectives. Separately managed accounts are a high net
worth investment alternative, usually offered by an investment manager, that
typically focuses on a targeted strategy managed as a separate account for the
investor.
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 : 94.6772
INR
/ 1 GBP : 127.3124
INR
/ 1 EUR : 109.9108
INR
/100 JPY: 59.1300
EQUITY INDEX
Sensex:
76264.33 (+736.38)
NIFTY:
23853.90 (+231.00)
Bnk NIFTY: 57198.80 (+384.00)
International Day
of Family Remittances: June 16 is
officially recognized as the International Day of Family Remittances by the
United Nations to honor migrant workers supporting their families globally, and
the Day of the African Child, which commemorates the 1976 Soweto Uprising.
Historical
events: 16th
June is rich in global and Indian milestones. On this day in 1963, Soviet
cosmonaut Valentina Tereshkova scripted world history by becoming the first
woman to travel into space aboard Vostok 6. In Indian history, 1606 marks the
martyrdom of Guru Arjan Dev, the fifth Sikh Guru, who was executed by the
Mughal government. Technology and business also took major leaps on this date:
the Ford Motor Company was incorporated in 1903, and in 1911, the company that
evolved into IBM was founded in New York.
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