• Overseas investors pumped more than 9,000 crore rupees into the Indian capital markets in last month on expectations of more business-friendly measures.
  • India’s goods and services tax (GST) revenue collections crossed Rs 1 lakh crore for the third straight month in May to Rs 1,00,289 crore, despite the slowdown in the industrial activities. 
  • Global efforts to impose a unified tax policy on Google, Facebook and other internet giants have cleared a major hurdle ahead of a G20 summit in Japan. The Paris-based Organisation for Economic Cooperation and Development (OECD) stated that 129 countries had signed off on a road-map to grab a fairer tax share of the companies’ booming sales.
  • ONGC, India’s top oil and gas producer, has toppled Indian Oil Corp (IOC) to regain the crown of being the country’s most profitable public sector company. 
  • To encourage digital payments, the Nandan Nilekani committee has suggested a host of measures, including elimination of charges, round-the-clock RTGS and NEFT facility, and duty-free import of point-of-sales machines.
  • The Centre, the Tamil Nadu Government and the World Bank have signed a $287-million loan agreement for the Tamil Nadu Health System Reform Programme (TNHSRP). TNHSRP aims to improve the quality of healthcare, reduce the burden of non-communicable diseases (NCDs), and fill equity gaps in reproductive and child health services.
  • The World Bank retained its forecast of India's growth rate at 7.5% for the current financial Year 2019/20. 
  • The report on 'Benchmarking India's Payment Systems’ which was released mentions that the country is "strong" in areas like having necessary laws and cash in circulation per capita.
  • The 2nd Bi-Monthly monetary policy statement has been released. Reduce the policy repo rate by 25 basis points to 5.75% from 6.00%. Consequently, the reverse repo rate under the LAF stands adjusted to 5.50%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0%. 
  • The country’s foreign exchange reserves increased by USD 1.875 billion to USD 421.867 billion in the week ending 31st May 2019.
  •  The RBI has slapped a penalty of Rs. 2 crores on Kotak Mahindra Bank for the non-state lender’s failure to adhere to the regulator’s diktat on promoter shareholding.
  • Aditya Birla Fashion and Retail Ltd (ABFRL), which retails brands such as Louis Philippe, Peter England and Van Heusen, has acquired ethnic apparel and lifestyle retailer ‘Jaypore E-Commerce Pvt. Ltd‘ which sells ethnic fashion merchandise under its own brand ‘Jaypore’ for Rs 110 crore.
  • The Reserve Bank of India constituted a six-member committee to review the ATM interchange fee structure with a "view to increase the ATM deployment in the unbanked areas". The committee will be led by V G Kannan, Chief Executive, Indian Banks Association.
  • India's largest software services company Tata Consultancy Services (TCS) has surpassed US technology giant IBM in terms of market capitalisation. As of recent closing, the market cap of TCS stood at Rs8.37 lakh crore ($120.5 billion)compared to IBM's $119.5 billion. 
  • The government has reduced the total rate of the contribution made by workers and employers towards the Employees’ State Insurance (ESI) scheme from 6.5% to 4% for the first time in over two decades.
  • According to the Sebi circular, rating companies will now create a uniform probability of default benchmark for each rating category on their website, for one-year, two-year and three-year cumulative default rates, both for the short term and long term.
  • The Reserve Bank of India will infuse Rs 12,500 crore into the financial system through bond purchases under the Open Market Operation (OMO). The RBI uses open market operations (OMO) for injecting liquidity into the system through the purchase of government bonds (G-Sec).
  • Social networking giant Facebook has picked up a minority stake in social-commerce company Meesho in its first startup investment in the country.
  • India’s largest and fastest growing consumer lending technology company ZestMoney, partnered with Digit Insurance to offer EMI insurance to the company’s five million customers. The policy will cover EMI cost in the event of hospitalization, death or permanent disability. The insurance product is specifically designed for ZestMoney’s customers which can be availed while applying for a loan on the digital platform.
  • Mortgage lender HDFC has sold over 4.22% stake in subsidiary Gruh Finance Ltd (Gruh), which is proposed to be amalgamated with Bandhan Bank for ₹899.43 crore.
  • Based on the recommendations of the Committee on Currency Movement (CCM), the Reserve Bank have directed banks to ensure their ATMs are grouted to a wall, pillar, or floor by September-end, except those installed in high secured premises such as airports, to enhance the security of the cash vending machines. The committee to review the entire gamut of security of treasure in transit is chaired by Shri D.K. Mohanty.
  • India’s trade deficit expanded to a six-month high of  $15.4 billion in May, with import growth outpacing export growth. According to data released by the commerce ministry, exports grew 3.93% in May, while imports rose 4.31%.
  • The Asian Development Bank (ADB) has approved projects for infrastructure development worth Rs 1,650 crore ($235 million) in seven of the eight districts headquarter towns in Tripura. The ADB would give 80% of the amount as grant-in-aid and the Tripura Government would have to repay back only 20% loan in due course of time.
  • The Jammu and Kashmir Bank will now come under the purview of Right to Information Act and Central Vigilance Commission (CVC) guidelines as per the decisions taken by the Board of Directors of the Jammu and Kashmir Bank to ensure greater transparency and accountability.

  • Facebook has announced a digital currency called Libra that will allow its billions of users to make financial transactions across the globe. Libra is being touted as a means to connect people who do not have access to traditional banking platforms. Technology to make transactions with Libra will be available as a standalone app as well as on WhatsApp and Facebook Messenger platforms as early as 2020.
  • In its latest Global Economic Outlook, the global rating agency Fitch lowers India's growth forecast from 6.8% to 6.6% for the current fiscal, as manufacturing and agriculture sectors showed signs of slowing down over the past year.
  • Fitch also retained its GDP growth forecast for the next fiscal (2020-21) at 7.1% and 7.0% for 2021-22.
  • The Economic Advisory Council to the Prime Minister releases a detailed note titled‘GDP estimation in India- Perspectives and Facts’.
  •  Reserve Bank fined country's largest private sector lender HDFC Bank Rs 1 crore for not reporting frauds and non-compliance with other directions.

  • From July 1Canara Bank customers can deposit cash of up to Rs 50,000 for free only thrice a month. From the fourth transaction or for cash deposits of over Rs 50,000, there will be a service charge of Rs 1 per thousand, with a minimum of Rs 50 and a maximum of Rs 5,000 plus GST.
  • According to Department for Promotion of Industry and Internal TradeFund of Funds for Startups have provided financial support to 249 startups in last 3 years.
  • Standing Group of Secretaries (GoS) has been constituted on e-Commerce by Ministry of Commerce and Industry.It is constituted to ensure inter-ministerial/inter-departmentalcoordination on resolving issues, cutting across Ministries and Departments of Government of India in e-Commerce.
  • IT firm Tech Mahindra has signed a multi-year contract with Airbus for cabin and cargo design engineering.It aims to capitalise on the specialised skills and competencies in the growing cabin engineering business over the next few years.
  • NSE Clearing Ltd. will head the panel set up by SEBI to review margins on derivatives. The panel will submit its recommendations to the Secondary Market Advisory Committee. These margins on the derivatives segment are pushing up the cost of trading while not managing risk in the most efficient manner.

  • Competition Commission of India (CCI) has approved the merger of the Indiabulls Housing Finance and Lakshmi Vilas Bank. Lakshmi Vilas Bank is going to merge with Indiabulls Housing Finance in a share swap deal with intent to create a combined entity with a larger capital base and wider geographical reach.
  •  The Complaint Management System (CMS) is a software application launched by Reserve Bank of India on its website. It will be used for lodging complaints against banksand NBFCs with a view to improve customer experience in timely redressal of grievances. Customers can lodge complaints against any regulated entity on the platform. These complaints will be directed to the appropriate office of the Ombudsman/Regional Office of the RBI. The RBI is also planning to introduce a dedicated Interactive Voice Response (IVR)system to track the status of complaints.
  • The Reserve Bank of India has advised all Scheduled Commercial Banks to adopt Education Loan Scheme, formulated by Indian Banks Association.Salient features of the Scheme includes:
  1. Loan upto Rs 10 lakh for study in India and upto Rs 20 lakh for study abroad.
  2. Collateral free loans upto Rs 7.5 Lakh under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).
  3. No Margin for loan up to Rs 7.50 Lakh.
  4. Repayment period of 15 years.
  5. One Year Moratorium for repayment after completion of studies in all cases.
  6. Moratorium taking into account spells of unemployment/under employment, say two or three times during the life cycle of the loan.
  7. Moratorium for the incubation period if the student wants to take up a start-up venture after graduation.

  • The Government of India, the Government of Jharkhand and the World Bank signed a $147 Million Loan Agreement.. Jharkhand will invest the amount to provide urban services such as water supply, sewerage, drainage and urban road. 
  • RBI's U.K. Sinha led committee give the following recommendations for MSME sector:
  1. The creation of a distressed asset fund, with a corpus of Rs 5,000 crore, structured to assist MSME units in clusters.
  2. The formation of a government sponsored Fund of Funds of Rs 10,000 crore to support venture capital and private equity firms investing in MSMEs.
  3. SIDBI should deepen credit markets for MSMEs in underserved districts and regions.
  4. SIDBI should develop additional instruments for debt and equity to crystallize new sources of funding for MSMEs and MSME lenders.
  5. The PSBLoansIn59Minutes.com portal should cater to new entrepreneurs, who lacks information like GSTIN, income-tax returns and bank statement
  6. The threshold of loan should be enhanced up to Rs 5 crore.
  7. The introduction of adjusted priority sector lending guidelines for banks to specialize in lending to a specific sector, doubling the collateral free loan limit to Rs 20 lakh and providing insurance coverage to MSME employees by the government.
  • The Central Board of Direct Taxes has directed the Income Tax Department to share in "public interest" the details of assets and accounts of all such loan defaulters whose details are requested by the public sector banks. The policy move is aimed to tighten the noose on such entities and extract recovery of public money.
  • Health insurance provider Max Bupa partners with fintech platform MobiKwik to promote bite sized group health insurance products for MobiKwik’s 107 million customers across the country. Bite-sized insurance offerings are over the counter health insurance products, primarily targeted towards working professionals and millennials.
  • The GoI has reduced interest rates for small savings schemes by 10 basis points for the July-September quarter of the 2019-20 financial year. Some schemes that will fetch lower interest rates are Kisan Vikas Patra (7.6%), Public Provident Fund (7.9%), Sukanya Samriddhi Account (8.4%).
  • The Reserve Bank of India has allowed Asset Reconstruction Companies (ARCs) to buy financial assets from other ARCs. The transactions must be settled in cash between the 2 enitities.
  • The Reserve Bank relaxed the leverage ratio (LR) to 4% for Domestic Systemically Important Banks (DSIBs) and 3.5% for other banks. This has been done to help them boost their lending activities.It will be effective from the quarter commencing October 1, 2019.
  • India has signed a loan agreement worth 400 million dollar with the World Bank to help treat and eliminate Tuberculosis from the country. During this GoI provide Direct Benefit Transfers to patients for acquiring the critical nutrition needed during treatment.