Financial

  

Banking Updates                                                                                                                                         

 

MORNING BANKING & FINANCIAL NEWS UPDATES 

 

 

ISSUE: 233                               2023                             24 May 2023                                

RBI KEY RATES FOREX (RBI REF. ) EQUITY /COMM. MARKET 

Repo Rate: 6.50% INR / 1 USD : 82.7961 Sensex:  61981.79 (+18.11) 

SDF: 6.25% INR / 1 GBP : 102.0073 NIFTY:  18348.00 (+33.60) 

MSF /Bank Rate: 6.75% INR / 1 EUR : 89.4844 Bnk NIFTY:  43954.40 (+69.30) 

CRR: 4.50% INR /100 JPY: 59.7800 Gold:  60,180.00 (-61.00) 

SLR: 18.00%  Silver:  72,151.00 (-582.00) 

‘Go First tells DGCA it will restart, but offers no 

timeline’: GoFirst has responded to the show cause notice it 

received and expressed its intention to resume operations as soon 

as possible, according to sources at the DGCA. The airline has 

assured the regulatory body of its commitment to restarting services; 

however, no specific timeline has been provided at this stage. 

Additionally, GoFirst has communicated with its pilots through a 

letter, informing them that their salaries for April will be disbursed prior 

to the commencement of operations. Furthermore, the airline has 

promised that going forward, salaries will be paid within the first week 

of each month. 

(Business Line) 

UPI effect: Average ATM visits halve to 8 times a year: 

Every ₹1 increase in value of UPI (unified payments interface) 

transactions is leading to 18 paisa decline in debit card transactions, 

indicating a person is now making a visit to ATM on an average 8 

times a year, down from 16 visits earlier, according to State Bank of 

India’s economic research report “Ecowrap”.The aforementioned 

observation is on the basis of monthly time series data analysis for 

the period of April 2016 to April 2023. Research by SBI’s economic 

  

research department (ERD) found that cash withdrawal through debit 

cards at ATMs has declined from November 2018, ceding way to UPI. 

(Business Line) 

Gross FDI inflows declined 16.3% in FY23 to $71 billion: 

Gross inward foreign direct investment (FDI) in FY23 declined 16.3 

per cent on a year-on-year basis to $71 billion from $84.8 billion in 

FY22, according to RBI. Net FDI declined to $28 billion in 2022-23 as 

compared with $38.6 billion a year ago, mainly due to moderation in 

gross FDI inflows and an increase in repatriation, according to an 

article titled ‘State of the Economy’ in RBI’s latest monthly bulletin. 

“Manufacturing, computer services and communication services 

recorded the highest decline in FDI inflows compared with the 

preceding year. 

(Business Line) 

India GDP crosses $3.5 tn in 2022; Moody's: India's GDP 

has crossed USD 3.5 trillion in 2022 and will be the fastest-growing 

G-20 economy over the next few years, but reform and policy barriers 

could hamper investment, Moody's said on Tuesday. In a research 

report, the US-based rating agency said bureaucracy could slow 

approval processes in obtaining licences and setting up businesses, 

prolonging project gestation. "India's higher bureaucracy in decision-

making will reduce its attractiveness as a destination for foreign direct 

investment (FDI), especially when competing with other developing 

economies in the region, such as Indonesia and Vietnam," Moody's 

Investors Service said. 

(Economic Times) 

Withdrawal of Rs 2000 to have favourable impact on 

deposits, interest rates: SBI study: An SBI study on Tuesday 

said the withdrawal of Rs 2000 currency note is likely to be a non-

event but it will have a favourable bearing on liquidity, bank deposits 

and interest rates. The 131-day window to exchange junked 2000 

rupee currency notes opened on Tuesday with a mixed bag of small 

queues and confusion at some banks over the requirement of 

officially valid identity cards like PAN or Aadhaar, and official forms. 

Unlike November 2016, when old 500 and 1000 rupee notes – 

constituting some 86 per cent of the currency in circulation – were 

banned overnight, resulting in sarpantine ques outside bank 

  

branches across the country, this time no crowding is being 

witnessed. The SBI’s research report ‘Ecowrap’ expects that almost 

the entire amount of Rs 3.6 lakh crore in the form of Rs 2000 will 

come back to the banking system. 

(Financial Express) 

Ravneet Kaur takes charge as CCI Chairperson: Ravneet 

Kaur on Tuesday took charge as the Chairperson of the Competition 

Commission of India, becoming the first woman to hold the post on a 

full-time basis.Kaur, a 1988 Punjab cadre IAS officer, will be the fifth 

full-time Chairperson of the fair trade regulator, which started 

functioning in 2009. “Hon’ble Union Minister of Finance & Corporate 

Affairs Smt. Nirmala Sitharaman had sworn in Smt. Ravneet Kaur as 

Chairperson, Competition Commission of India, & Smt. Ravneet Kaur 

took charge of the office of Chairperson, CCI, today i.e., on 23rd May 

2023. #CCI,” the regulator said in a tweet.  

(Financial Express) 

Infosys announces AI-first offering Topaz to accelerate 

business value for global enterprises: Infosys on Tuesday 

launched Topaz, an AI-first set of services, solutions and platforms 

using generative Artificial Intelligence technologies, and said the 

‘responsible by design’ approach ensures uncompromising ethics, 

trust, privacy, security and compliance. Topaz leverages Infosys 

applied AI framework to build an AI-first core that empowers people 

to deliver cognitive solutions, the company said in a statement. 

(Financial Express) 

ATMs stop dispensing Rs 2,000 notes, CRMs can still 

accept deposits: ATMs have stopped dispensing `2,000 notes 

but cash recycling machines will continue to accept the deposit of 

these currency notes. According to industry experts, withdrawals of 

other denominations of currency from ATMs will not be impacted due 

to the pulling back of `2,000 notes from circulation.  

(Financial Express) 

Post offices barred from exchanging Rs 2,000 notes, 

can accept deposits: Though banks started accepting Rs 2,000 

notes on Tuesday, post offices across the country are not being 

allowed to exchange such notes, but will only be able to accept 

  

deposits as of now, a top banking industry source has said.“The 

exchange facility is available only at banks. Customers can make 

deposits since the Rs 2,000 note is legal tender,” said a top banking 

industry source, to a question on whether the notes can be 

exchanged at post offices. According to the media reports, non-

banking financial companies can also accept deposits in this 

denomination. At present, financial services are being offered across 

155,000 post offices across the country. When the Rs 500 and Rs 

1,000 bank notes were pulled out in November 2016, post offices 

were allowed to handle them.  

(Business Standard) 

FIIs buying slows sharply, inflow at ₹182.5 cr; DIIs 

outrun with ₹397 crore investment: Foreign institutional 

investors' (FIIs) buying slows sharply on Tuesday with an inflow of 

₹182.5 crore in Indian equities. On the other hand, domestic 

institutional investors (DIIs) outrun FIIs today with an investment of a 

little more than ₹397 crore. Indian market closed on a muted note, 

however, the sentiment was broadly positive with auto and oil & gas 

stocks outperforming. Adani stocks witnessed stellar buying. As per 

NSE data, FII buying value stood at ₹7,829.51 crore and selling value 

at ₹7,647 crore --- registering an inflow of ₹182.51 crore in Indian 

equities on Tuesday. 

(Mint) 

Google Pay brings RuPay credit card-based UPI 

payments: Google Pay users in India can now make Unified 

Payments Interface (UPI) payments with RuPay credit cards. The 

company has partnered with National Payments Corporation of India 

(NPCI) to bring the ability to its customers. With the new 

development, Google Pay users can link their RuPay credit cards with 

the Google Pay app. Once linked, they will be able to pay at all online 

and offline merchants through Google Pay app using RuPay credit 

cards where they are accepted. 

(Mint) 

  

  

TODAY’S FINANCIAL TERMINOLOGY/CONCEPTS 

BALLPARK FIGURE 

❖ A ballpark figure is a rough numerical estimate or approximation of the 

value of something that is otherwise unknown. Ballpark figures are 

commonly used by accountants, salespersons, and other 

professionals to estimate current or future results. A stockbroker could 

use a ballpark figure to estimate how much money a client might have 

at some point in the future, given a certain rate of growth. A 

salesperson could use a ballpark figure to estimate how long a product 

a customer was thinking about buying might be viable. 

❖ A ballpark figure is essentially a placeholder established for purposes 

of speculating what the amount or total of something might amount to 

so that the parties involved can move forward in whatever negotiation 

or planning is underway. 

❖ Ballpark figures are estimates used to move a discussion or deal 

forward when the exact measurement of the size or amount of 

something cannot yet be determined. Ballpark figures can be used for 

day-to-day purposes, such as estimating how much food and 

beverages might be needed for a barbecue or how many months it will 

likely take to pay off a new purchase. 

Have a nice day 

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