Banking, Financial and Economic Awareness
1. Limits on trade margins of non-scheduled medicines and medical devices also
- The proposal for limiting trade margins on non-scheduled medicines and medical devices is being finalized by NPPA and the Department of Pharmaceuticals (DoP).
- Earlier, most non-scheduled medicines were not part of the price control mechanism. But, the government had fixed a limit of 10 % on the price increase of such medicines.
- NPPA had also lowered ceiling prices of certain non-scheduled drugs (cardiovascular and anti-diabetic) in public interest and extraordinary situations by using its special powers under Drugs (Prices Control) Order, 2013.
- Graded trade margins between 35 % and 50 % for medicines having the price of more than Rs 2 were recommended by the Department of Pharmaceuticals (DoP) expert panel in 2016.
- In February 2019, NPPA put a limit on trade margins of 42 cancer medicines.
- National Pharmaceutical Pricing Authority (NPPA):
- It is an independent authority for the regulation of drug prices in India.
- It was formed in 1997.
- Drug Prices Control Orders (DPCOs) are implemented by NPPA.
2. One lakh crore turnover achieved by mithai and namkeen industry in India and 3rd World Mithai Namkeen Convention at Hitex
- Along with registering annual double-digit growth, mithai and namkeen industry in India had achieved one lakh crore turnover.
- 3rd World Mithai Namkeen Convention will be organized at Hitex, Madhapur in Hyderabad.
- Federation of Sweets & Namkeen Manufacturers (FSNM), in association with Almond House, will organize it on January 9 and 10.
3. SAHAJ and SUGAM notified
- CBDT has notified Income Tax Return (ITR) forms named SAHAJ (ITR-1) and SUGAM (ITR-4) for the assessment year 2020-21.
- SAHAJ (ITR-1) has been notified for salaried individuals.
- SUGAM (ITR-4) has notified for individuals having income from business activity and for Hindu Undivided Family (HUF) and partnership firms.
- SAHAJ and SUGAM will not be applicable to individuals/HUF jointly owning a house property with two or more persons and high spenders and some notified persons.
4. Stronger accreditation system of exporters advised
- Department of Revenue under the Ministry of Finance has advised to Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce for a stronger accreditation system of exporters.
- Department of Revenue has also told DGFT that some exporters having star status are getting Integrated Goods & Services Tax (IGST) refunds with the help of fake invoices.
- Currently, DGFT recognizes exporters as status-holders on the basis of their export performance in the current year and last two years.
- Export houses are recognized as one, two, three, four and five-star export houses based on their export performance in 3 million US dollars, 25 million USD, 100 million USD, 500 million USD, 1000 million USD and 2000 million USD.
- Department of Revenue under the Ministry of Finance comprises of Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC).
5. UCO Bank may be out of RBI's PCA
- UCO Bank may achieve net profit in March 2020 quarter, net NPA below 6%, and come out of RBI's Prompt Corrective Action (PCA) framework by March.
- In July to September quarter, UCO Bank's gross and net non-performing assets declined to 21.87 % and 7.32 %, respectively.
- To disburse more credit, the bank is also launching the UCO Carnival campaign. It is aimed at retail and MSME borrowers.
- Prompt Corrective Action (PCA) Framework:
- Capital to risk-weighted assets ratio (CRAR), net non-performing assets (NPA) and Return on Assets (RoA) are trigger points for the applicability of the PCA framework.
- If the banks CRAR, net NPA and RoA are not within decided limits, banks are required to take urgent steps to lower NPAs and prevent the creation of new NPAs.
- PCA does not apply to co-operative banks and non-banking financial companies (NBFCs).
- UCO Bank:
- Headquarters: Kolkata
- Established: 1943
- Motto: Honours your Trust
- CEO: Atul Kumar Goel
Multiple Choice Questions (MCQs)
1. Who is responsible for controlling the prices of drugs in India?
- Department of Pharmaceuticals (DoP)
- National Pharmaceutical Pricing Authority (NPPA)
- Ministry of Chemicals and Fertilizers
- Ministry of Health and Family Welfare
- National Drug Price Control Authority
2. Where will the 3rd World Mithai Namkeen Convention be organized in India?
3. Income Tax return form named as SAHAJ (ITR-1) has been notified for
- Salaried individuals
- Individuals owning partnership firms
- Individuals having income form business activity
- Salaried individuals who are part of Hindu Undivided Family (HUF)
- Individuals/HUF jointly owning a house property and business
4. Which of the following does not come under Ministry of Finance?
- Central Board of Indirect Taxes and Customs (CBIC)
- Central Board of Direct Taxes (CBDT)
- Directorate General of Foreign Trade (DGFT)
- Department of Expenditure
- Department of Revenue
5. Which of the following is not a trigger point for application of RBI's PCA framework?
- Risk weighted assets ratio (CRAR)
- Net non-performing assets (NPA)
- Return on Assets (RoA)
- Gross non-performing assets (NPA)
- None of the above