The Reserve Bank of India (RBI) has issued fines to seven banks due to the delayed application of SWIFT-related operational controls. This follows a ₹14,000-crore fraud in Punjab National Bank, which prompted RBI to direct banks towards prompt implementation and strengthening of said controls in February 2018. This article delves into the background and specifics of these developments.
SWIFT: A Brief Overview
Society for Worldwide Interbank Financial Telecommunications (SWIFT) provides a secure network for financial institutions globally to exchange information regarding financial transactions. Established in 1973 and headquartered in Belgium, SWIFT does not hold funds or manage client accounts. It merely offers a standardized communications platform, facilitating the transmission of transaction information. Prior to its advent, the primary mode of confirming international transfers was Telex, which faced challenges such as low speed, security concerns, and unrestricted message format.
Understanding Open Market Operations
Reports highlighting a decrease in the liquidity deficit within the banking system due to the Reserve Bank of India’s (RBI) Open Market Operations (OMO) have surfaced recently. Essentially, OMO is a monetary policy tool used by a country’s central bank to control the money supply in the economy. This is done via sales or purchases of government securities. By selling these securities, the central bank can withdraw liquidity from the system, and inversely, purchasing these securities infuses liquidity into the system. RBI uses OMO along with other methods such as repo rate, cash reserve ratio, and statutory liquidity ratio to manage the quantum and price of money in the system.
Issues at Kole Wetland
Located in Thrissur District, Kerala, the Kole Wetlands have recently come under scrutiny as scientists have discovered alien fish species, which potentially threaten native species. The wetlands, which serve as one of Kerala’s primary rice granaries, are part of the Vembanad-Kole Wetland ecosystem—a Ramsar site since 2002. In terms of bird population, Kole Wetlands rank third in India, trailing Chilika Lake in Orissa and Amipur Tank in Gujarat.
| Fact | Detail |
|---|---|
| Established | 1973 |
| Headquartered in | Belgium |
| Utilities | Providing a communication network for financial institutions |
MSTC’s Initial Public Offering
Recently, MSTC (Metal Scrap Trade Corporation Limited), a mini-Ratna company under the Ministry of Steel secured approval from the Securities Exchange Board of India (SEBI) for an Initial Public Offering (IPO). An IPO essentially refers to the process through which privately owned companies can go public by selling their stocks. This allows companies to raise capital via new shares or current shareholders can sell their shares to the public without the need for fresh capital. Following an IPO, the company’s shares are traded openly on the market.
Param-Shivaay Super-Computer
The Param-Shivaay Supercomputer was recently initiated at Indian Institute of Technology-Banaras Hindu University (IIT-BHU) under the National Supercomputing Mission. Developed by the Center for Development of Advanced Computing (C-DAC), this supercomputer boasts a capacity of 833 teraflops and will contribute to various applications such as climate assessment, weather forecasting, and space engineering. India’s first supercomputer, PARAM 8000, was launched in 1991.
Department of Investment and Public Asset Management (DIPAM)
The Finance Ministry is planning to establish a special cell under the Department of Investment and Public Asset Management (DIPAM) dedicated to the monetization of non-core assets owned by state-run companies. Non-core assets refer to those which are either irrelevant or unused in a company’s operations. The formation of this Asset Monetisation cell also aims to address sales related to immovable enemy property—assets abandoned by individuals who migrated to Pakistan or China and are no longer Indian citizens. NITI Aayog will be creating a list of non-core assets belonging to various CPSEs as the initial step towards this direction.
