Banking, Financial and Economic Awareness

2020-01-03

1. Bharat Bond ETF listed on NSE and BSE

  • Edelweiss Mutual Fund has listed Bharat Bond Exchange Traded Fund (ETF) on NSE and BSE.
  • Earlier, Edelweiss has raised ₹12,395 crores by issuing initial NFO (New Fund Offer) of first-ever Bharat Bond ETF and both 3-year and 10-year categories were oversubscribed.
  • The listing of Bharat Bond ETF on NSE and BSE will attract more investors.
  • BHARAT Bond ETF with 3-year maturity will follow Nifty Bharat Bond Index – April 2023 and Nifty Bharat Bond Index – April 2030 respectively.
  • BHARAT Bond ETF will invest investors’ money only in AAA-rated Public Sector Bonds.

 

2. RBI to conduct third OMO

  • After conducting two OMOs in December 2019, RBI will conduct third Open Market Operation (OMO) on January 6.
  • In third OMO, RBI will purchase three Government of India dated Securities (G-Secs) maturing in 2024, 2026 and 2029.
  • In earlier OMOs, RBI purchased only one G-Sec with a maturity date of 2029.
  • In the third OMO, RBI will sale four G-Secs having a maturity date of 2020. These were also sold during earlier OMOs.
  • On January 6, RBI will also auction Government of India Cash Management Bill of 70-day tenure for ₹30,000 crores.
  • The cash management bill is a short-term money market instrument. The tenure of Cash Management Bills is less than 90 days. 

 

3. Consultation paper on traffic management practices

  • TRAI has issued a consultation paper to know traffic management practices (TMPs) used by telecom operators.
  • Through consultation paper, TRAI also wants to know which of the traffic management practices currently used by telecom operators can be seen as reasonable from the net neutrality perspective.
  • In November 2017, TRAI has given its recommendations on net neutrality and the Government accepted all of them in July 2018.
  • In its recommendations on net neutrality, TRAI recommended a ban on content-based discrimination in internet access.
  • TRAI had recommended that telecom operators should define their TMPs.
  • Department of Telecommunications (DoT) had asked TRAI to define the role and composition of a multi-stakeholder body for monitoring net neutrality.

 

4. Strategic co-lending partnership between Bank of Baroda (BoB) and JMFHL

  • BoB has entered into a strategic co-lending partnership with JM Financial Home Loans Ltd (JMFHL) to retail home loans to homebuyers.
  • JMFHL is the housing finance arm of JM Financial Group.
  • Among public sector banks in India, Bank of Baroda is the second largest public sector bank after SBI. Earlier, Vijaya Bank and Dena Bank were merged with Bank of Baroda.
  • Among private and public sector banks in India, BoB is the third-largest public sector bank after SBI and HDFC. HDFC is the largest private sector bank in India.

 

5. Acquisition of majority shareholding of Apollo Munich Health Insurance Co Ltd (AMHI) approved

  • Competition Commission of India (CCI), RBI and Insurance Regulatory and Development Authority of India (IRDAI) have approved the acquisition of up to 51.2 % shareholding of AMHI by HDFC Ltd and its subsidiary HDFC ERGO.
  • On June 19, 2019, HDFC ERGO General Insurance, HDFC Ltd and shareholders of AMHI had signed share purchase agreements (SPAs).
  • After the acquisition of shares, AMHI will be merged with HDFC ERGO. But, the merger will also require National Company Law Tribunal (NCLT) approval.

 

Multiple Choice Questions (MCQs)

1. Which of the following Asset Management Company (AMC) has recently listed Bharat Bond ETF on NSE and BSE?

  1. Reliance Nippon Life Asset Management Ltd
  2. Aditya Birla Sun Life AMC Ltd
  3. Edelweiss Asset Management Ltd
  4. UTI Asset Management Co. Ltd
  5. SBI Funds Management Pvt Ltd

2. Third Open Market Operation will not involve G-Secs with maturity date of

  1. 2024
  2. 2026
  3. 2029
  4. 2020
  5. 2030

3. TRAI gave its recommendations on net neutrality in

  1. January 2020
  2. November 2017
  3. July 2018
  4. December 2019
  5. September 2018

4.  Which of the following is the second largest public sector bank in India?

  1. Bank of Baroda
  2. State Bank of India
  3. Punjab National Bank
  4. Canara Bank
  5. Bank of India

5. Which of the following company has been given approval for acquiring the majority shareholding of Apollo Munich Health Insurance Co Ltd (AMHI)?

  1. Star Health & Allied Insurance Co Ltd
  2. HDFC ERGO General Insurance
  3. Cigna TTK Health Insurance Co Ltd
  4. Religare Health Insurance Co Ltd
  5. Max Bupa Health Insurance Co Ltd

 

Solution:

  1. C
  2. E
  3. B
  4. A
  5. B

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