New Student Offer - Use Code HELLO

Register Now

Banking and Financial Awareness Digest: September 2022

Published on Saturday, October 08, 2022

India Records Double-Digit Growth In Q1 FY23

  • India's Gross Domestic Product (GDP) in the first quarter (April-June) of the fiscal year grew by 13.5% as per the data released by the National Statistical Office (NSO).
  • The GDP grew at a rate of 20.1% during the same period last year.
  • However, it is less than the estimation made by the RBI in the latest Monetary Policy Meeting where the RBI said that the GDP growth rate was likely to be around 16.2% in the first quarter of this fiscal year.
  • India's fiscal deficit stood at Rs 3.41 lakh crore in April-July, accounting for 20.5% of the full-year target.
  • A Fiscal Deficit indicates the total borrowing that is needed by the government.

Moody’s Cuts India’s Growth Forecast

  • Global rating agency Moody’s on Thursday cut down India’s economic growth for the current fiscal to 7.7% for the year 2022.
  • Moody's earlier estimated India's GDP growth to be 8.8% in 2022.
  • It cited the rising interest rates, uneven distribution of monsoon, and slowing global growth as reasons for the reduced projection.
  • The global credit rating agency also lowered India's GDP forecast for 2023 to 5.2 percent from 5.4%.
  • Credit rating is a numerical representation of the creditworthiness of an individual or a business in general terms or concerning a particular debt or financial obligation.
  • Static part: Moody's was founded in 1909 with its headquarters in New York.

IMF Approves a Loan to Sri Lanka

  • The International Monetary Fund (IMF) and Sri Lanka reached a preliminary agreement on a four-year, $2.9bn bailout package. The loan is aimed at restoring economic stability and debt sustainability for Sri Lanka.
  • The 48-month program will introduce major tax reforms including broadening the tax base for corporate income tax and VAT and making the income tax more progressive.
  • The announcement of the agreement comes at a time when the Headline Inflation rose to 64.3% in August 2022, while Food Inflation soared to 93.7%.
  • Sri Lankan currency, the rupee, has also depreciated more than 44% against the USD since January 2022.
  • Static part: The International Monetary Fund (IMF) is a United Nations agency with its headquarters in Washington DC. It primarily works to foster global monetary cooperation, secure financial stability, and facilitate international trade.

SEBI Issues Guidelines for Stock Brokers

  • The capital market regulator, the Securities and Exchange Board of India (SEBI) came out with guidelines for stock brokers providing algorithmic trading services.
  • As per the SEBI, the objective of the issued guidelines is to prevent instances of "mis-selling".
  • SEBI has warned the stock brokers who indulged in providing algorithmic-based trading facilities offered by unregulated platforms to remove any such content referring to past or future performance of such an algorithm within a week, i.e. by 9th September.
  • The market regulatory board also directed stock exchanges to amend their bylaws rules and regulations for the implementation of SEBI’s provisions in this regard.
  • Algorithmic Trading refers to the use of advanced mathematical models that contain automated execution of the trade to generate results at a superfast pace.

This digest is not complete. Read the complete digest on the Financial Awareness Course.
ebook store

About us

ramandeep singh

Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and 5000+ selections, Ramandeep understands the path to success, having transitioned himself from Dena Bank and SBI. He's passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu