Reserve Bank of India Current Affairs
According to Reserve Bank of India (RBI) data, Mauritius was top source of foreign direct investment (FDI) into India in 2017-18 followed by Singapore. The total FDI in FY 18 stood at $37.36 billion in financial year which was marginal rise over $36.31 billion recorded in the previous fiscal 2016-17.
FDI from Mauritius was $13.41 billion in 2017-18 as against $13.38 billion in previous year. FDI inflows from Singapore rose to $9.27 billion from $6.52 billion. FDI from Netherlands has declined marginally to $2.67 billion as against $3.23 billion.
FDI into manufacturing sector had witnessed substantial decline to $7.06 billion, as against $11.97 billion a year earlier. FDI into communication services had rose to $8.8 billion in 2017-18 from $5.8 billion. The inflows into retail and wholesale trade increased to $4.47 billion as against $2.77 billion.
FDI in financial services too saw rise to $4.07 billion from $3.73 billion in the previous year. These sectors accounted for more than 50% of total FDI of $37.36 billion in 2017-18 reflects global interest in new areas, including online marketplaces and financial technologies.
India Post Payments Bank (IPPB) is expected to go live with 650 branches in addition to 3,250 access points co-located at post offices in August, 2018 following final clearance from Reserve Bank of India (RBI) to start. RBI has given approval to IPPB after testing its entire system.
IPPB was incorporated on August 17, 2016 under Companies Act, 2013 as a public limited company with 100% Government of India equity under Department of Posts (Ministry of Communication & Technology). It was the third entity to receive payments bank permit after Airtel and Paytm.
Around 11,000 gramin dak sevaks (in rural area) and postmen (in urban area) will provide doorstep banking services. IPPB also has been given permission to link around 170 million postal savings bank (PSB) account with its account. It will also carry out RTGS, NEFT, IMPS transaction that will enable IPPB customers to transfer and receive money from any bank account.
Payments bank is new model of banking allows mobile firms, supermarket chains and others to cater to banking requirements of individuals and small businesses to further enhance financial inclusion. It will be set up as differentiated bank and will confine its activities to acceptance of demand deposits, remittance services, internet banking and other specified services but cannot undertake lending services. Payments bank can accept deposits maximum up to Rs 100,000 per account from individuals and small businesses. They can issue ATM/debit cards but not credit cards and can also issue other prepaid payment instruments. They also can distribute non-risk sharing simple financial products like mutual funds and insurance products.