Top Banking Awareness January 2021

FDI equity inflow into India increased by 37% from $32.11 billion to $43.85 billion.

In April-November of FY21, FDI equity inflow into India increased by 37% from $32.11 billion in April-November 2019 to $43.85 billion. In April-November of FY21, total FDI increased by 22% from $47.67 billion in April-November 2019 to $58.37 billion. Total FDI includes reinvested earnings. FDI equity inflow and total FDI were highest ever for the first eight months period of a financial year.

Coal-based power generation stood at 79% of total power generation on 22 January.

As per Coal India Limited, coal-based power generation in India stood at 79% of total power generation on 22 January. All India peak power demand increased from 185.82 GW on 20 January to record level 187.3 GW on 22 January. Thermal power accounts for about 62% of the total installed capacity in India. Out of this installed capacity, coal and lignite account for 53% and 2%, respectively. Gas and diesel account for 6.7% and 0.1%, respectively.

Axis Bank, Axis Capital, and Axis Securities get approval to buy a stake in Max Life Insurance Company.

Axis Bank, Axis Capital and Axis Securities have got approval to buy a stake in Max Life Insurance Company. Earlier, Axis Bank’s proposal to directly acquire a 17% stake in Max Life Insurance was rejected by RBI.  Axis Bank had sought Competition Commission of India approval to buy up to 20% stake in Max Life Insurance Company.

States suggest merger of cess and surcharges with basic tax rate.

During the pre-budget consultations, the states suggested to Finance Minister that cess and surcharges should be merged with basic tax rate. If cess and surcharges are merged with the basic rate of tax, states will receive their share from additional revenue. Textile sector wants the government to bring a uniform GST structure for apparels and textiles to deal with the problem of higher duties on inputs in the next Budget.

Top Banking Awareness December 2020

Atmanirbhar Women Scheme started by Bank of Baroda

Atmanirbhar Women Scheme has been started by Bank of Baroda as part of its Baroda Gold Loan. The bank will offer loans to women at a 0.50% concession rate under the scheme. Under the gold loan scheme, the Bank of Baroda also offers Agri-gold loans and retail loans at 0.25% and 0.50% concession, respectively.

Business Culture Awards 2020 won by UST Global

Business Culture Awards 2020 has been won by UST Global, an American company providing digital technology and IT services. UST Global won the award for ‘Best International Initiative for Business Culture’. The company was recognized for ‘Great Place to Work’ on workplace culture in India, the UK, and the US.

RBI proposes an increase in the limit for contactless card transactions

RBI has proposed an increase in the limit for contactless card transactions from Rs 2,000 to Rs 5,000 from January 1, 2021. RBI has made this proposal in its statement on developmental and regulatory policies released on December 4, 2020. RBI has also proposed to make these changes for e-mandates for recurring transactions through cards (and UPI). However, RBI will issue instructions for these proposals later.

Top Banking Awareness November 2020

Rupee continues to lose against US Dollar while currencies of other emerging economies continue to rise.

Rupee is continuing to lose against US Dollar while currencies of other emerging economies are continuing to rise from April 2020. In 2020, Rupee has lost 3.59% against the greenback (informal term for dollar) and performed worst among Asian currencies such as China’s Renminbi, the Philippines’ Peso, Taiwan’s dollar and Korea’s won. These currencies appreciated by more than 4% against the dollar. Monetary easing by US Federal Reserve has caused the greenback index (US Dollar index) to move down by over 10% from its peak in March 2020.

SDG Investor Map for India launched by UNDP and Invest India

SDG Investor Map for India has been launched by UNDP and Invest India. SDG Investor Map for India has 18 Investment Opportunities Areas (IOAs) spread over six critical areas. It has also identified eight White Spaces in which investors have shown interest. Six critical sectors included in SDG Investor Map are Education, Healthcare, Food & Beverages, Renewable Resources & Alternative Energy, Financials and Sustainable Environment.

Inverted duty structure making domestic rubber industry non-competitive in international markets

The inverted duty structure in India is making its domestic rubber industry non-competitive in international markets. Inverted duty structure means import duty on raw materials is high and import duty on finished products is low. Inverted duty structure causes a rise in imports and negatively affects the domestic industry. Under the Free Trade Agreement with ASEAN countries, import duty on natural latex liquid is 70%. But, import duty on latex products is only 5%. It is easier to import finished products than to manufacture them domestically. The duty on rubber products is between 0 to 10%.