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May 2023

Reading Time:

3 Minutes

Author:

Anamika Upadhya

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Money this Month

From the RBI deciding to withdraw the Rs 2000 denomination banknotes from circulation to the US strengthening military alliances in the region near China to Tata group signing $1.6 bln electric vehicle battery plant deal. One place to know about them all for it is your "Money This Month", that matters. Here's the second in the line of indefinite editions and intellectually stimulating ramblings about the financial world, explained in the most efficient and succinct jargon.

Being published by the Research Department of Finance and Investment Cell at Aryabhatta College, "𝐌𝐨𝐧𝐞𝐲 𝐓𝐡𝐢𝐬 𝐌𝐨𝐧𝐭𝐡", a monthly newsletter that aims to encapsulate the latest developments in the field of money, economics, finance, and geopolitics. Extensive efforts have been put in to compile the most relevant and insightful information from various sources to provide you with a comprehensive overview of the financial world.

Headlines

  • Withdrawal of the 2000 notes.

  • 8.75% FD interest rate: Ujjivan Small Finance Bank hikes fixed deposit rates for all customers

  • RBI releases draft on cyber resilience, digital payment security controls

  • Private banks grew deposits at a faster pace in FY23

  • The US is deepening military alliances in China’s backyard.

  • Tata Group signs $1.6 bln electric vehicle battery plant deal

So, how was the money this month?

Withdrawal of the 2000 notes.


The RBI issued the majority of the Rs 2000 denomination notes prior to March 2017; these notes are now at the end of their estimated lifespan of 4-5 years. This denomination is no longer commonly used for transactions; besides, there is adequate stock of banknotes in other denominations to meet currency requirements. In view of the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation



8.75% FD interest rate: Ujjivan Small Finance Bank hikes fixed deposit rates for all customers


Ujjivan Small Finance Bank has revised the interest rate on fixed deposits, with the highest interest rate for regular customers, NRO rising up to 8.25% for 12 months and 80 weeks (560 days). The highest interest rate for senior citizens has risen to 8.75% for the same tenure.



RBI releases draft on cyber resilience, digital payment security controls


The Reserve Bank of India (RBI) on Friday issued draft Master Directions on Cyber Resilience and Digital Payment Security Controls for Payment System Operators (PSOs).According to the RBI's release, the central bank has invited feedback from the shareholders on the same.


Private banks grew deposits at a faster pace in FY23


The top five banks namely State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank and Union Bank of India – mobilized a total of Rs 8.43 trillion in deposits in FY23. SBI’s total deposits grew the highest incrementally, at Rs 3.72 trillion. Analysts attribute the rise in deposits to the large branch network of people.



The US is deepening military alliances in China’s backyard.


The Biden administration is stepping up security initiatives to boost deterrence and better prepare for potential conflict over Taiwan.The overriding challenge for Washington is to find ways to overcome the so-called tyranny of distance that puts it on the back foot. Not only does China have far more ships and aircraft within striking distance of Taiwan, the US also must contend with the large distances between its deployed forces across the massive region that spans more than 50 per cent of the planet.



Tata Group signs $1.6 bln electric vehicle battery plant deal


Compared to the shape and size of its population, India's car market is tiny. Tata Motors dominates its electric vehicle (EV) sales, which made up just 1% of India's total car sales of about 3.8 million last year. GST Kitty Swells, Factory Activity Hits 31-Mth HighData released Thursday indicated India’s sustained economic momentum at the start of the new fiscal year, with goods and services tax (GST) collection growing at a rapid clip in May as manufacturing activity hit a 31-month high in the month. Vehicle and fuel sales backed up the trend.


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