Banking, Financial and Economic Awareness of 04 and 05 March 2020

1. SC permits banks to deal in virtual currencies

• Supreme Court has allowed banks to deal in virtual currencies or cryptocurrencies.
• RBI had banned cryptocurrencies on April 6, 2018. But, SC has cancelled RBI's order now.
• Now, banks will be able to provide services to facilitate any person or entity dealing with virtual currencies or settling them.
• Banks will be able to provide loans against virtual currencies and accept them as collateral.
• Currently, virtual currencies or cryptocurrencies are not a legal tender. They are based on blockchain technology.
• Bitcoin is an example of a crypto currency. It was launched in 2009. Facebook has also announced that it will launch its own cryptocurrency, named as Libra.

2. IRDAI issues guidelines for medical treatment claims under COVID-19

• Insurance Regulatory and Development Authority of India (IRDAI) has issued guidelines for dealing with medical treatment claims reported under COVID-19.
• IRDAI has said that insurers should settle the cost of medical expenses incurred during the treatment and quarantine period as per the terms of the policy.
• As per IRDAI guidelines, claims review committee should review all claims made under COVID-19 before rejecting them
• Though hospitalized persons are allowed to file claims under an existing health cover policy, IRDAI has suggested insurers to develop specific products for the treatment of COVID-19.
• COVID-19:
  • It is the name of the disease caused by a new coronavirus.
  • Official name of new coronavirus causing COVID-19 is Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2).
  • COVID-19 was first reported in Wuhan city, China.
  • On 30 January 2020, COVID-19 has declared a Public Health Emergency of International Concern (PHEIC).

3.  Zomato acquired UberEats India for $206 million

• In January, Zomato had acquired UberEats India for $206 million.
• Zomato's payment of $206 million includes $171 million worth of investment and $35 million of GST reimbursements.
• In 2016, Uber had sold its wing in China to Didi Chuxing. Didi Chuxing is a Chinese platform offering ride-hailing services.
• Earlier, it was reported that Amazon CEO Jeff Bezos and Infosys co-founder NR Narayana Murthy have partnered to enter into India’s online food delivery market through a new joint venture-Prione Business Services.

4. I-T Department finds TDS default in excess of Rs 3500 cr

• Income Tax Department has found Tax Deducted at Source (TDS) default in excess of Rs 3500 cr.
• The default of Rs 3500 cr included Rs 3,200 crore default by a major oil company in Delhi and Rs 324 crore by a telecom company in Delhi.
• The department has found default several hospitals and a real estate group of Delhi.
• Over 45% of direct tax collection in India comes from TDS.

5. NABARD gives Rs 1.46 lakh cr credit to rural banking system

• During the current fiscal, National Bank for Agriculture and Rural Development (NABARD) has given Rs 1.46 lakh cr credit to the rural banking system.
• NABARD has given Rs 66,397 crore and Rs 6,704 crore to rural cooperative banks in the form of short-term credit and long-term credit, respectively.
• Rs 14,141 crore short-term credit and Rs 8,417 crore long-term credit was given to Regional rural banks.
• Farmers are given short-term credit for production purposes. Long-term credit is given to support dairy, poultry, fishery, farm mechanization, irrigation, and non-farm sectors.

Multiple Choice Questions (MCQs)

1. Recently, the Supreme Court has permitted banks to deal in virtual currencies or cryptocurrencies. When was Bitcoin launched?

1. 2000
2. 2005
3. 2007
4. 2009
5. 2010

2. Recently, IRDAI has issued guidelines for medical treatment claims under COVID-19. When was it declared a Public Health Emergency of International Concern (PHEIC)?

1. 31 December 2019
2. 1 January 2020
3. 30 January 2020
4. 11 February 2020
5. None of the above

3. Which of the following has recently acquired UberEats India for $206 million?

1. Swiggy
2. Zomato
3. Amazon
4. Flipkart
5. Just Eat

4.  Recently, the Income Tax Department has found Tax Deducted at Source (TDS) default in excess of Rs 3500 cr. How much percentage of direct tax collection in India comes from TDS?

1. 15%
2. 25%
3. 35%
4. 45%
5. 55%

5. How much credit was disbursed by NABARD to the rural banking system in India?

1. Rs 1.46 lakh cr
2. Rs 2.46 lakh cr
3. Rs 3.46 lakh cr
4. Rs 4.46 lakh cr
5. Rs 5.46 lakh cr

Correct Answers:

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

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