MONTHLY GENERAL KNOWLEDGE BANKING &
FINANCE CAPSULE – MARCH 2021
RBI Released A Survey On Computer Software And Information Technology Export Service For FY20.
The export of software services in India stood at US $ 128.6 billion during 2019-20, a rise of 9.1 percent over the last year.
The enrichment of Computer services is 66.6%, which of ITES / BPO services is 33.4% within the total software services exports.
The major objective for software exports with a 56.6 percent share was the USA, while 27.6 percent of software was exported in Europe.
Certificate Of Authorisation (CoA) Of Riddisiddhi Bullions Ltd And Ags Transact Technologies Ltd Revoked By RBI.
The CoA of those PSOs (Payment System Operators) has been denied for establishing, controlling, and operating White Label ATMs (WLAs).
RBI exercised its powers in Section 8 of the Payment and Settlement Systems Act, 2007, to revoke the CoA of the PSOs.
White Label ATMs (WLAs) are ATMs that are established, prepared, and operated by non-banks. Under Section 8 of the Payment and Settlement Systems Act, 2007, RBI can revoke CoA granted by it to PSOs.
Standing External Advisory Committee Set Up By RBI.
Standing External Advisory Committee has been found out by RBI to gauge on-tap applications for universal and little finance banks.
RBI’s former Deputy Governor, Shyamala Gopinath, is head of the Standing External Advisory Committee.
In addition to the chairperson, the committee has 4 other members also. The names of four other members are: RBI central board director, Revathy Iyer, NPCI chairman, B Mahapatra
SBI Collaborates With Jp Morgan To Use Its Blockchain-based Data Network, Link.
The Link will enable SBI to exchange payment-related information with other financial institutions on the platform.
Onyx is the name of JP Morgan’s business unit focused on blockchain development. The US-based bank J.P. Morgan established Onyx in October. It operates Link.
J.P. Morgan is an American multinational investment bank headquartered in New York. Fino Payments Bank Limited Included In The Second Schedule To RBI Act, 1934.
The inclusion of Fino Payments Bank Limited in the 2nd schedule to RBI Act, 1934 has been mentioned by RBI in its announcement released on 22 February 2021.
The banks in the 2nd list to RBI Act, 1934 are called Scheduled Banks. Scheduled Banks are further categorized into Scheduled Commercial Banks and Scheduled Co-operative Banks.
As per the RBI website, Scheduled Commercial Banks were additionally classified into five categories until 2005. They are: State Bank of India and its Associates, Nationalised Banks, Regional Rural Banks, Foreign Banks, Other Indian Scheduled Commercial Banks (in the private sector).
Digital Savings Account Opening Facility Via Video-know Your Customer (KYC) Launched By Two Sbi-sponsored RRBS.
The names of 2 SBI-sponsored RRBs are Telangana Grameena Bank and Andhra Pradesh Grameena Vikas Bank.
They have become India’s first Regional Rural Banks to adopt Digital savings account opening facility via Video- KYC.
WhatsApp Banking Launched By AXIS Bank.
Axis Bank launched WhatsApp banking and enrolled into a partnership with WhatsApp to offer basic banking services to its customers.
Now, customers are going to be ready to block their credit or debit cards using end-to-end encrypted messages.
They will even be ready to use WhatsApp banking and chat with Axis Bank on queries about banking transactions.
LIC Will Disinvest Its Stake In IDBI Bank.
Life Insurance Corporation of India (LIC) will reduce its stake in IDBI Bank to spice up strategic disinvestment.
However, LIC has not yet decided what proportion stake it'll reduce from the IDBI bank.
From January 2019, RBI had categorized IDBI Bank as a personal Sector Bank for regulatory purposes. LIC owns a majority stake in IDBI Bank.
NPCI and SBI Payments Joined Hands To Launch ‘rupay Softpos’ Solution.
National Payments Corporation of India (NPCI) has partnered with SBI Payments to launch ‘RuPay SoftPoS ’.
It will transform an NFC-enabled smartphone into merchant Point of Sale (PoS) terminals for the merchants.
It will enable merchants to perform transactions of up to Rs 5,000 through their smartphones.
It will provide an economical infrastructure for merchants to market contactless digital transactions. Wearable Contactless Payment Devices’, Called ‘wear ‘n’ Pay’ Introduced By AXIS Bank.
The device will enable customers to pay on the go. it's within the sort of a band, key chain, and watch loop.
It is presently available at a fee point of Rs 250. Customers are going to be required a PIN to finish the transaction beyond the limit of Rs 5000.
SBI Collaborates With Jp Morgan To Use Its Blockchain-based Data Network, Link.
HDFC Bank has launched the SmartUp Unnati programme on International Women’s Day.
The purpose of the programme is to mentor women entrepreneurs by women leaders at the bank.
Under the programme, senior women leaders from HDFC Bank will mentor women entrepreneurs over the subsequent years. The programme is being offered only to existing customers.
Business Kisht Suraksha Introduced By HDFC Ergo General Insurance.
Business Kisht Suraksha may be a product to guard the record of MFIs, financial institutions, and banks thanks to non-payment of EMIs or thanks to natural calamities.
Business Kisht Suraksha may be a product that will be customized on the idea of the requirements of individual MFI or financial institutions.
HDFC ERGO General Insurance may be a venture between HDFC Ltd and ERGO International AG. ERGO International AG is that the primary insurance entity of Munich Re Group of Germany.
Future Group’s Founder, Kishore Biyani, Deposits Interim Fine To Sebi In Insider Trading Case.
Future Group’s founder, Kishore Biyani, has deposited an interim fine to SEBI in a trading case.
Securities Appellate Tribunal (SAT) has ordered a 11-crore interim fine on Biyani.
On 15 February, Bench at SAT led by Justice Tarun Agarwala stayed SEBI’s order banning Biyani et al. from accessing the stock exchange for one year.
4 | P a g e
In its order, SEBI had found that a couple of entities of the longer term Group traded within the shares of Future Retail. This was done on the idea of unpublished price-sensitive information.
IBBI Introduces Reporting Mechanism To Deal With The Delay In CIR Activities.
Insolvency and Bankruptcy Board of India (IBBI) has introduced a reporting mechanism to affect the delay in completing Corporate Insolvency Resolution Process (CIRP) activities.
The interim resolution professional/ resolution professional (IRP/RP) are going to be required to report within three days to IBBI if CIRP activities aren't completed.
As per the Insolvency and Bankruptcy Code, CIRP is to be completed in 180 days. Reporting to IBBI should now be done on endless basis every 30 days till the completion of CIRP.
DPIIT Changes Norms On Downstream Investments Made By Non-resident Indians (NRIs).
Department for Promotion of Industry and Internal Trade (DPIIT) has changed Norms on downstream investments made by Non-Resident Indians (NRIs).
As per changed norms, NRI downstream investments on a non-repatriation basis will be treated equally with domestic investments or investments made by residents.
They will not be considered for the calculation of indirect foreign investments. Downstream investment is an investment by an Indian entity in another company.
CCI Gives Approval To Acquisition Of 51% Equity Share Of Nesco Utility By Tata Power Company Limited (TPCL).
Competition Commission of India (CCI) has given approval to the acquisition of 51% equity share of NESCO Utility by Tata power service Limited (TPCL).
TPCL will acquire 51% equity share capital of North Eastern Electricity Supply Company of Odisha (NESCO Utility) from Grid Corporation of Odisha Limited (GRIDCO).
Under Section 20 of the Electricity Act, 2003, the Odisha Electricity Regulatory Commission (OERC) initiated a competitive bidding process for acquisition.
Irdai Modifies Guidelines On Standard Individual Health Insurance Products.
Insurance Regulatory and Development Authority of India (IRDAI) modifies guidelines on standard individual insurance products.
In revised guidelines, IRDAI has increased the utmost sum insured limit from Rs 5 lakh earlier to Rs 10 lakh to extend coverage available under “Arogya Sanjeevani Policy” or standard individual insurance product.
Government Has Set Up Asset Monetization Targets For Eight Ministries.
Government has found out asset monetization targets for eight ministries and therefore the asset monetization target is highest within the case of the Ministry of Railways.
Government is additionally considering an idea to mandate NIIF for fixing an independent entity, which can act as an investment manager for all infrastructure investment trusts (InvITs) and REITs.
Union Finance & Corporate Affairs Minister Nirmala Sitharaman Introduces Insurance (Amendment) Bill, 2021.
Union Finance & Corporate Affairs Minister Nirmala Sitharaman has introduced Insurance (Amendment) Bill, 2021.
The bill aims at amending the Insurance Act, 1938. It seeks to boost the FDI limit in domestic insurance companies from the present 49% to 74%.
In Union Budget 2021-22, minister of finance proposed to extend the FDI limit within the insurance sector. A Bill Has Been Approved By The Union Cabinet To Set Up A Development Finance Institute (DFI) With An Initial Capital Of Rs 20,000 Crore.
The bill are going to be presented in Parliament during the present Budget Session. DFI will raise long-term funds for infrastructure development projects in India.
As per minister of finance Nirmala Sitharaman, Rs 5,000 crore are going to be the initial grant to the DFI. She further said that additional increments of the grant would be made within the limit of Rs 5,000 crores.
5 | P a g e
A DFI is an establishment that gives development finance to sectors or sub-sectors of the economy. Industrial Finance Corporation of India was the primary DFI. it had been established in 1948.
National Bank For Financing Infrastructure And Development Bill 2021 Introduced By Finance Minister In Lok Sabha.
The bill will allow the govt to line up a Development Finance Institution to fund infrastructure projects.
Setting up of Development Finance Institution was recently approved by Union Cabinet. Finance Bill Passed By Lok Sabha.
Lok Sabha has passed Finance Bill and therefore the bill will now attend Rajya Sabha.
On 23 March, minister of finance proposed amendments in Budget proposals.
On the difficulty of equalization levy, the minister said that the calculation of levy wouldn't be applicable for goods owned by Indians.
Government has raised Rs 2.5-lakh limit for EPFO taxation to Rs 5 lakh. Now interest earned on contributions above Rs 5 lakh are going to be taxable.
Board Of Approval For SEZs Defers Mundra Solar’s Request For Extension Of Approval.
Board of Approval for SEZs has deferred Mundra Solar’s request for extension of approval.
Mundra Solar is an SEZ unit manufacturing solar cells and modules in Adani Ports and SEZ (APSEZ) at Mundra, Gujarat.
SBI Mutual Fund Launches Its First Ever-international Feeder Fund.
SBI Mutal fund has launched its first ever-international feeder fund.
International feeder fund may be a new scheme. it'll be investing in Amundi Funds - US Pioneer Fund, which is domiciled in Luxembourg.
Rupee depreciation enhances the returns of international funds. SBI Focused Equity may be a domestic scheme of SBI open-end fund . It also invests in international stocks.
AXIS Securities Launched Yield, An Online Platform To Buy And Sell Bonds And Debentures.
Axis Securities launched YIELD, a web platform to shop for and sell bonds and debentures.
The platform will enable retail investors to possess direct access to debt instruments. it'll do away with the necessity for separate KYC with bond institutions.
The platform aggregates only ‘AAA’ to ‘A’ rated quality debt instruments available. Fitch Ratings Revises India’s Gdp Growth Projection For 2021-2022 From 11% To 12.8%.
In its latest Global Economic Outlook (GEO), American credit rating agency Fitch has revised India’s GDP growth projection for 2021-2022 from 11% to 12.8%.
The agency further said that recovery of India’s GDP growth from the lockdown-induced recession has been faster than expected.
However, GDP is predicted to stay below the pre-pandemic forecast trajectory of Fitch. Government Announced New Rule And Said That Aadhaar Is Not Compulsory For Pensioners To Get Jeevan Pramaan.
Government notified the new rule and said that Aadhaar isn't mandatory for pensioners to urge Jeevan Pramaan.
Jeevan Pramaan may be a digital life certificate, which pensioners require to gather their pensions.
Government has also said that Aadhaar verification isn't mandatory for the Government’s instant messaging solution Sanders.
Government May Set Up Central Factory Safety Board And State Factory Safety Boards In Each State.
After the gas leak incident at LG Polymers last May, the Central Government is considering plans to line up Central Factory Safety Board and State Factory Safety Boards in each State.
Styrene vapor was leaked at LG Polymers Ltd in Visakhapatnam on May 6 and seven last year. This killed 12 persons and injured many.
New Executive Directors (Eds) Take Charge Of Four Different Banks.
New Executive Directors (EDs) have taken charge of various banks (Union Bank of India (UBI), financial institution of India (CBoI), Bank of Maharashtra (BoM), and Bank of India (BoI).
The names of newly appointed Executive Directors are given below:
Union Bank of India - Nitesh Ranjan, financial institution of India -Vivek Wahi, Rajeev Puri, Bank of Maharashtra -AB Vijayakumar, Bank of India -Monika Kalia, Swarup Dasgupta, M Karthikeyan, Canara Bank - Satyanarayana Raju.
Matam Venkata Rao Appointed As Md And Ceo Of Central Bank Of India.
He was serving as an executive of Canara Bank until 1 March 2021.
He has been appointed for a period of 3 years. In May 2020, his name was recommended by Bank Board Bureau for appointment as MD and CEO of the financial institution of India.
Companies Must Disclose The Profit Or Loss On Transactions Involving Cryptocurrency.
Ministry of Corporate Affairs has said that companies must reveal the profit or loss on transactions involving cryptocurrency.
Ministry of Corporate Affairs has further asked companies to disclose the quantity of cryptocurrency they hold on the reporting date.
Companies would be required to reveal details of deposits or advances taken for dealing or investing in cryptocurrency in their financial statements.
New Rules, Forms For Trusts, and Non-profit Organisations Announced By CBDT.
The forms for the new scheme for trusts which can be effective from 1 April 2021 are notified by CBDT. Old trusts also will be required to use through new forms.
The new format of application is to grant the approval of a fund, trust, institution, university, any hospital, or other clinics under different clauses and provisions of Section 10.
As per the provisions of section 10, incomes from some funds, trusts, institutions, universities, hospitals aren't included in total income for taxation.