Banking, Financial and Economic Awareness

2019-12-09

1. $660 million funds collected by Paytm

  • The fund has been collected from Alipay, T Rowe Price, SoftBank, and others.
  • It will help Paytm in competing with PhonePe and Google Pay.
  • Paytm:
    • Parent organization: One97 Communications
    • Headquarters: Noida
    • CEO: Renu Satti
  • PhonePe:
    • Headquarters‎: ‎Bangalore
    • Founder & CEO: Sameer Nigam
  • Alipay:
    • Headquarters: Shanghai, China
    • Founder: Jack Ma
  • SoftBank:
    • Headquarters: Tokyo, Japan
    • Founder & CEO: Masayoshi Son
  • T Rowe Price
    • It is an American asset management company that provides funds and advisory services.

 

2. SWAMIH Investment Fund I closes at 10,530 crore

  • It aims to provide last-mile funding to complete the construction of unfinished housing projects.
  • SWAMIH Investment Fund I is a category II Alternative Investment Fund (AIF) and was formed under SWAMIH.
  • The fund is sponsored by the Government of India and SBICAP Ventures Limited (SVL) is its Investment Manager.
  • SWAMIH (Special Window for Affordable and Mid-Income Housing):
    • Finance Minister announced SWAMIH on September 14, 2019.
    • Cabinet approved the scheme on November 2, 2019.

 

3. In 2019, Rupee remains weak against the United States dollar

  • Despite an increase in foreign funds, Rupee depreciates by 2.5% and remains weak against the United States dollar.
  • The Foreign Portfolio Investors (FPIs) have invested a total Rs 1.31 lakh crore over previous 11 months.
  • India’s foreign exchange reserves have increased from $428.60 billion on 30 August to $448.59 billion on 22 November.
  • The increase of almost $20 billion shows the buying of dollars by RBI to prevent an increase in the value of Rupee (appreciation).
  • Weak Rupee (depreciation) helps exports and makes the country competitive in the international market.
  • On the other hand, appreciation might have negatively affected exports, particularly manufacturing exports.

 

4. ARGL will go through CIRP again

  • The resolution plan for Amtek Ring Gears Limited (ARGL) has been approved by NCLT.
  • ARGL's lenders have approved Investment Opportunities IV Private's bid on June 4, 2019.
  • SBI took ARGL to National Company Law Tribunal (NCLT) in 2017, and in 2018 NCLT accepted ARGL for resolution under the Insolvency and Bankruptcy Code (IBC).
  • In August 2018, the lenders chose Liberty House as the highest bidder.
  • Later, Resolution Professional (RP) asked Liberty House to begin taking over ARGL.
  • But, Liberty House failed to do that. It was also the highest bidder for Amtek auto and failed to take over Amtek auto.
  • Then, NCLT ordered the liquidation of ARGL, which was stopped by the Supreme Court. However, the Supreme Court later took back its order.  

 

5. IRDAI may start catastrophe insurance

  • After approval by Centre, IRDAI will start catastrophe insurance on a pilot basis in selected states.
  • Currently, losses due to all catastrophes and man-made disasters that are not insured make up 84 % of total losses.
  • Insurance Regulatory and Development Authority of India (IRDAI):
    • It is an autonomous, statutory organization.
    • It was formed in 1999.
    • It regulates and promotes both insurance as well as reinsurance industries in India.
    • It has 10 members, including the chairman, 5 full-time and four part-time members.
    • Government of India appoints part-time members of IRDAI.
    • Chairman: Subhash Chandra Khuntia

 

6. Kerala government starts Kerala Bank

  • State co-operative bank and district co-operative banks will be part of Kerala Bank.
  • As a result, Kerala will have a two-tier co-operative banking system in place of the earlier three-tier system.
  • On 31 March 2017, State Bank of Travancore was merged with the State Bank of India.
  • State Bank of India (SBI):
    • It was formed in 1955 from the Imperial Bank of India.
    • Chairperson: Rajnish Kumar

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