Banking, Financial and Economic Awareness of 01, 02 and 03 March 2020

1. Monthly lottery under GST may be started from April 1

• The government may start a monthly lottery offer under Goods and Services Tax (GST) from April 1.
• The lottery will be offered through lucky draws for invoices of all business to customer (B2C) transactions.
• The range of lottery offer will be between Rs. 10 lakh and Rs. 1 crore.
• In business to customer (B2C) transactions, products are sold directly to consumers.
• Business to business (B2B) transactions are transactions involving two businesses.

2. Bill for change in Banking Regulation Act

• During the Budget session, Parliament may pass a bill for change in the Banking Regulation Act.
• The bill will be an attempt to deal with weaknesses in the cooperative banking sector.
• It will bring multi-state cooperative banks under RBI's effective regulation.
• The bill was approved by the union cabinet in February.

3. Government plans to strengthen District Skill Committees (DSCs)

• Ministry of Skill Development and Entrepreneurship (MSDE) is planning to strengthen District Skill Committees (DSCs).
• The DSCs will be strengthened to impart demand-oriented skills as part of Pradhan Mantri Kaushal Vikas Yojana (PMKVY 3.0).
• PMKVY 3.0 will be launched during 2020-2025. It will focus on providing skills to the migrant workforce also.
• PMKVY was launched in 2015. The second phase of PMKVY was launched in 2016 to provide skills to 10 million youth by 2020.
• Ministry of Skill Development and Entrepreneurship (MSDE) was formed on 9 November 2014.
• Current Minister of Skill Development & Entrepreneurship is Mahendra Nath Pandey.

4. NPPA exempts Meril's stents from price control

• NPPA has exempted stents manufactured by Meril Life Sciences from price control.
• NPPA has decided that therapeutic advantage and increased effectiveness are not conditions required before getting exemption under 32 (ii) of DPCO 2013.
• In 2017, NPPA has put stents under price control in public interest.
• In 2017, NPPA has approved MeRes-100 of Meril. MeRes-100 is a drug-coated stent produced by Meril dissolves naturally.
• Stents are the tubes added to coronary arteries to keep them open. They can be made from metal or plastic.

5. SMEcorner collects $30 million

• SMEcorner has collected $30 million through debt and equity.
• The fund has been raised from investors like Paragon Partners., Quona Capital, Accion Venture Lab and others.
• SMEcorner is a fintech SME lender. It has obtained an NBFC license recently in February 2018.

6. ICAR signs agreement with Patanjali Bio Research Institute (PBRI)

• Indian Council of Agricultural Research (ICAR) has signed an agreement with Patanjali Bio Research Institute (PBRI).
• ICAR and PBRI will develop research programs for sustainable agriculture and provide training and education to students.
• Indian Council of Agricultural Research (ICAR) was established in 1929. Its president is Union Minister of Agriculture.

7. Government decides to give ₹200 crore equity support to IFCI

• The government has decided to give ₹200 crore equity support to the Industrial Finance Corporation of India (IFCI).
• The capital will be infused through preferential allotment route next fiscal.
• The government has kept ₹200 crore for IFCI in current fiscal also.
• In December 2019, the government's share in IFCI was 56.42%. After capital infusion, the government's share in IFCI will increase.
• IFCI is the oldest term lending institution of India. It was established in 1948. It is a Non-Banking Finance Company.

8. SBI starts Cash Budget Based Assessment (CBBA)

• SBI has started the Cash Budget Based Assessment (CBBA) to assess the working capital required for large advances.
• Earlier, SBI was following Projected Balance Sheet (PBS) method for this purpose.
• CBBA of Fund Based Working Capital (FBWC) limits for units having FBWC exposure of over ₹50 crores from the banking system.
• SBI has also launched Risk Intel. It is thinking about the direct uploading of external credit ratings in the Core Banking System.  

Multiple Choice Questions (MCQs)

1. Government is planning to start monthly lottery offer under Goods and Services Tax (GST) from

1. March 2020
2. April 2020
3. March 2021
4. April 2021
5. None of the above

2. During the Budget session, Parliament may pass a bill for change in the Banking Regulation Act. When did the cabinet approve this bill?

1. October 2019
2. November 2019
3. January 2020
4. February 2020
5. March 2020

3. When was Pradhan Mantri Kaushal Vikas Yojana (PMKVY) launched?

1. 2015
2. 2016
3. 2017
4. 2018
5. 2019

4. NPPA has recently granted exemptions to stents manufactured by

1. Edwards Lifesciences
2. Meril Life Sciences
3. Johnson & Johnson
4. Medtronic
5. Abbott Laboratories

5. Which of the following fintech SME lenders was recently in the news for raising $30 million?

1. Quona Capital
2. Accion Venture Lab
3. Capital Float
4. Fundbox
5. SMEcorner

6. The government has recently decided to give ₹200 crore equity support to the Industrial Finance Corporation of India (IFCI). In December 2019, the government's share in IFCI was

1. 26.42%
2. 36.42%
3. 46.42%
4. 56.42%
5. 66.42%

7. Which among the following has recently started Cash Budget Based Assessment (CBBA) to assess working capital required for large advances?

1. SBI
2. PNB
3. RBI
4. OBC
5. Axis Bank

Correct Answers:

1. B
2. D
3. A
4. B
5. E
6. D
7. A

Read Banking Awareness PDF - 01, 02 and 03 March 2020