Banking, Financial and Economic Awareness of 01 and 02 April 2020

1. IFFCO gives Rs 25 crore towards PM-CARES Fund

• Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) has given Rs 25 crore towards Prime Minister's Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund formed on 28 March 2020.
• IFFCO is also giving masks and hand sanitizers to farmers. Additionally, it is also giving soaps, Vitamin-C tablets, and food kits to farmers. 
• Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) was formed in 1967. It is a multistate cooperative society.
• It mainly manufactures and sells fertilizers. But, its businesses also include general insurance and rural telecom.
• Currently, IFFCO owns five fertilizer units in India. They are located in Kalol (Gujarat), Kandla (Gujarat), Phulpur (Uttar Pradesh), Aonla (Uttar Pradesh) and Paradeep (Odisha).
• PM-CARES Fund was formed on 28 March 2020 for relief against COVID-19 pandemic. It will also be used in case of future pandemic like situations.
• Prime Minister is the chairman of this fund. Defence Minister, Home minister and Finance Minister are its members.
• The minimum limit for donations in PM-CARES Fund is Rs 10. The government has exempted contributions to PM CARES Fund before 30 June from tax. This has been done under section 80 (G) of Income Tax Act, 1961.
• PM-CARES Fund is not similar to the Prime Minister's National Relief Fund (PMNRF) of 1948.   

2. NPPA changes ceiling price of scheduled medicines

• National Pharmaceutical Pricing Authority (NPPA) has changed the ceiling price of 883 formulations (medicines) scheduled under Drug Price Control Order-2013 (DPCO-2013).
• NPPA has also revised ceiling price of coronary stents. In February 2020, the Ministry of Health & Family Welfare has notified that all medical devices for human beings or animals should be considered as Drugs from 1 April 2020.
• Now, NPPA has also issued an order to bring into effect notification of Ministry of Health & Family Welfare. So, all medical devices for human beings or animals are governed and regulated under Drug Price Control Order-2013 (DPCO-2013).
• DPCO-1995 used the word Scheduled drugs. But, DPCO-2013 used the word Scheduled formulations for medicines included in its Schedule 1.

3. GlaxoSmithKline Consumer Healthcare Limited (GSKCH) merged with HUL

• GlaxoSmithKline Consumer Healthcare Limited (GSKCH) has been merged with Hindustan Unilever Ltd (HUL).
• The deal for GSKCH's merger with HUL was reported on 3 December 2018.
• The merger brings brands owned by GSKCH such as Boost, Maltova and Viva under HUL.
• HUL has also acquired Horlicks Brand for India from GSK by paying ₹3,045 crores.
• Hindustan Unilever Ltd (HUL) is a British-Dutch manufacturing company. It is headquartered in Mumbai.  
• GSKCH is an associate company of British multinational pharmaceutical corporation, GlaxoSmithKline plc (GSK).

4. RBI takes steps to help exporters and banks

• RBI has taken steps to help exporters and banks in dealing with the COVID-19 pandemic.
• For helping exporters, RBI has increased the time limit to realize and repatriate proceeds for exports from 9 months to 15 months from the date of the export. Only exports made till July 31, 2020 will get exemption.
• WMA (Ways and Means Advances) limit has also been increased by 30% from current limit.
• Revised limit will be effective from April 1, 2020 till September 30, 2020.
• RBI provides credit to central government and state governments through WMA (Ways and Means Advances).
• RBI has also said that the activation of countercyclical capital buffer (CCyB) for banks is not necessary for one year or earlier than one year.
• Countercyclical capital buffer (CCyB) is a regulatory standard announced by the Basel Committee on Banking Supervision as part of the Basel III framework in December 2010.
• CCyB requires banks to maintain a certain amount of capital as a buffer to ensure the flow of credit and prevent banks from lending indiscriminately. Credit-to-GDP gap is the main indicator of CCyB framework.
• RBI has introduced CCyB framework in February 2015. RBI activates CCyB framework on the basis of circumstances and makes an advance announcement about the activation of CCyB framework. 

Multiple Choice Questions (MCQs)

1. Recently, Indian Farmers Fertiliser Cooperative Ltd. (IFFCO) has given Rs 25 crore towards Prime Minister's Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund. When was PM-CARES Fund formed?

1. 28 December, 2019
2. 28 January, 2020
3. 28 February, 2020
4. 28 March, 2020
5. None of the above

2. National Pharmaceutical Pricing Authority (NPPA) has recently changed ceiling price for certain formulations (medicines) scheduled under

1. DPCO-1979
2. DPCO-1986
3. DPCO-1995
4. DPCO-2002
5. DPCO-2013

3. GlaxoSmithKline Consumer Healthcare Limited (GSKCH) has been recently merged with Hindustan Unilever Ltd (HUL). When was the deal for GSKCH's merger with HUL announced?

1. October 3, 2018
2. December 3, 2018
3. January 3, 2019
4. March 3, 2019
5. May 3, 2019

4. RBI has recently decided to increase WMA (Ways and Means Advances) limit by

1. 5%
2. 10%
3. 20%
4. 30%
5. 40%

Solution:

1. D

2. E

3. B

4. D

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