Banking, Financial and Economic Awareness of 1, 2 and 3 October 2020

1. Inter-ministerial committee to examine FDI proposals from India’s boundary sharing countries

• The inter-ministerial committee will examine FDI proposals from India’s boundary sharing countries.
• After examination by the inter-ministerial committee, FDI applications will be forwarded to relevant ministries and departments.
• Final decision on FDI applications will be taken by relevant ministries and departments.
• Senior officials from Home Ministry, Finance Ministry and Commerce & Industry Ministry will be part of the inter-ministerial committee.
• In April 2020, the government has made its prior approval mandatory for FDI from India’s boundary sharing countries.
• Department for Promotion of Investment and Internal Trade (DPIIT) data about FDI from boundary sharing countries between April 2000 and December 2019 is given below.

2. WMA limit for second half of FY 2020-21 decided at ₹1.25 lakh crore

• RBI has decided to keep Ways and Means Advances (WMA) limit for the second half (October 2020 to March 2021) of FY 2020-21 at ₹1.25 lakh crore.
• RBI has decided the limit in consultation with the Government of India and the limit at ₹1.25 lakh crore is lower than the limit of ₹2 lakh crore for first half (April 2020 to September 2020) of FY 2020-21.
• The interest rate on WMA is equal to repo rate (4%) and if the government makes use of overdraft, the interest rate is 2% more than the repo rate.
• RBI can revise the limit any time in consultation with the government. On 20 April 2020, RBI has increased limit for the remaining part of the first half of FY 2020-2021 from ₹1.20 lakh crore to ₹2 lakh crore.
• RBI helps central and state governments in meeting temporary mismatches between receipts and payments through WMA.

3. RBI appoints DK Kashyap as additional director on the board of Dhanlaxmi Bank

• RBI has appointed DK Kashyap as the additional director on the board of Dhanlaxmi Bank for two years.
• DK Kashyap is General Manager, Reserve Bank of India, Bengaluru Regional Office.
• His appointment will be effective from September 28 to September 27 or till further orders, whichever is earlier.
• Now, RBI has two additional directors on the board of Dhanlaxmi Bank.
• In February 2020, G Jagan Mohan was appointed as an additional director for two years.  He was also a General Manager, RBI, Bengaluru Regional Office.
• Dhanlaxmi Bank:
  • It is a private sector bank.
  • Headquarters: Thrissur, Kerala
  • Chairman: Mr. Sajeev Krishnan

4. Gregg Albert Saretsky appointed as Non-Executive, Non-Independent Director of IndiGo

• Gregg Albert Saretsky has been appointed as Non-Executive, Non-Independent Director of IndiGo.
• Earlier, Gregg Albert Saretsky was President and CEO of Canadian airline WestJet.
• He has worked as a Non-Executive Non-Independent Director of Alaska Airlines.
• IndiGo:
  • It is an Indian airline headquartered in Gurugram.
  • Its CEO is Rono Dutta and parent company is InterGlobe Aviation Ltd.
  • In terms of passengers carried and fleet size, IndiGo is the largest airline in India.

5. ITI Ltd signs contract for Phase IV of ASCON project

• ITI Ltd has signed a contract for Phase IV of the Army Static Switched Communication Network (ASCON) project.
• ASCON is the telecom network of the Army. It is spread across terrains in the northern, north-eastern and western regions.
• ASCON covers a communication network based on IP MPLS (Multiprotocol Label Switching).
• Telecom equipment such as IP/MPLS Routers, NMS, mobile nodes, test equipment will be installed under the project.
• Indian Telephone Industries Limited (ITI Limited) is a telecom equipment manufacturer owned by Central Government. Its headquarters are located in Bengaluru.

6. SEBI fines NSE with Rs 6 crore

• SEBI has imposed a fine of Rs 6 crore on NSE for investment in six companies unrelated to stock exchange business with approval from SEBI.
• The names of six companies are Power Exchange India (PXIL), Computer Age Management Systems (CAMS), NSEIT, NSDL E-Governance Infrastructure (NEIL), Market Simplified India (MSIL) and Receivables Exchange of India (RXIL).
• NSE has 25-100 % stake in these companies through NSE Investments with approval from SEBI. NSE Investments is a subsidiary of NSE.
• National Stock Exchange of India Limited (NSE) is located in Mumbai. It was founded in 1992. Its MD & CEO is Vikram Limaye.
• Securities and Exchange Board of India (SEBI):
  • SEBI was set up in 1988.
  • It was given statutory status in 1992.
  • Its headquarters are located in Mumbai.
  • In addition to a chairman, SEBI currently has four whole-time members and three part-time members.

7. Coca-Cola to enter US alcoholic drinks market

• Coca-Cola will enter US alcoholic drinks market by launching an alcoholic version of its Topo Chico sparkling water with Molson Coors Beverage Company in US.
• The launch will happen next year and expand Coca-Cola’s market beyond Latin America and Japan. Coca-Cola sells its Lemon-Do drink in Japan.
• Topo Chico was bought by Coca-Cola in 2017 from Arca Continental.
• Coca-Cola is an American company that sells Coca-Cola, invented by John Stith Pemberton.

Read Banking Awareness PDF - 1, 2 and 3 October 2020