Banking Awareness of 1, 2 and 3 November 2021

Half Yearly (Jan - June 2021)
2021 Book

Banking Awareness

Topic: Appointments

1. Centre appoints Justice Ashok Bhushan as the full-time chairperson of NCLAT.

  • Centre has appointed Justice Ashok Bhushan as the full-time chairperson of National Company Law Appellate Tribunal (NCLAT).
  • Justice Ashok Bhushan is a retired Supreme Court judge. He retired from the Supreme Court in July this year.
  • The post of NCLAT chairperson was lying vacant since the retirement of then chairperson Justice S J Mukhopadhaya, in March 2020.
  • Justice Bhushan has been appointed for four years or till he attains the age of 70 years, or until further orders.
  • Chief Justice of the Manipur High Court, Justice Ramalingam Sudhakar, has been appointed as the full-time chairperson of the National Company Law Tribunal (NCLT).
  • He has been appointed for a period of five years, or till he attains the age of 67 years, or until further orders. NCLT’s first chairperson, Justice M M Kumar, retired in January 2020.

NCLT

Topic: Taxation

2. GST collections reach ₹1.30-lakh crore in October.

  • GST collections have reached ₹1.30-lakh crore in October and this is the second highest level since the introduction of GST in 2017.
  • Highest level (₹1.40-lakh crore) was reached in April 2021. As per Finance Minister, the revenues for October were 24% higher than the GST revenues in October 2020.
  • During October, revenues from import of goods were 39% higher than October month of last fiscal.
  • Revenues from domestic transactions (including import of services) were 19 % higher than October month of last fiscal.

Topic: Taxation

3. Anti-dumping duty on seamless tubes, pipes from China extended for 5 years.

  • Anti-dumping duty on seamless tubes, pipes from China has been extended for 5 years by Finance Ministry.
  • Directorate General of Trade Remedies (DGTR) in the Ministry of Commerce and Industry had earlier recommended the continuation of anti-dumping duty for five years.
  • DGTR has given recommendation in final findings on the sunset review investigations initiated by it in February this year. The final findings came out on July 31 this year.
  • Anti-dumping duty was to expire on May 16, 2021. But it was later extended to October 31, 2021.
  • ISMT and Jindal Saw Ltd had filed the application for initiation of sunset review investigation on the imports from China.

Anti-dumping duty:

It is imposed by customs authorities over normal customs duty in order to prevent cheaper export of goods from a country to another country.

It is recommended by the Directorate General of Trade Remedies (DGTR) and imposed by the Ministry of Finance.

Topic: Banking System

4. The provisions of revised PCA framework to be effective from January 1, 2022.

  • The provisions of the revised prompt corrective action (PCA) framework will be effective from January 1, 2022.
  • As per the revised PCA framework, stressed banks may be prohibited from the expansion of credit portfolio. They may be asked to restrict outsourcing activities.
  • However, they will be allowed to invest in government securities/other high-quality liquid investments.
  • In the revised framework, RBI said it would monitor three key areas — capital, asset quality and leverage. Breach of any risk threshold may result in invocation of PCA. Under the current framework, RBI also monitors profitability.
  • Revised framework also contains the resolution of a PCA bank by Amalgamation or Reconstruction (under Section 45 of Banking Regulation/BR Act 1949).
  • Section 45 of Banking Regulation/BR Act 1949 enables the Reserve Bank to reconstruct or amalgamate a bank.

Topic: MoUs/Agreements

5. Bank of Baroda signs MoU with NCDEX e Markets Ltd (NEML).

  • Bank of Baroda has signed a Memorandum of Understanding (MoU) with NCDEX e Markets Ltd (NEML).
  • Bank of Baroda has signed MoU to become clearing bank for handling financial transactions in the NeML market place and procurement/auction platform.
  • The partnership will help NEML members to further their agriculture businesses.

NEML is an online commodities spot market and services company. It is a wholly-owned subsidiary of agricultural commodity exchange, NCDEX.

Bank of Baroda was founded in 1908. Its chairman is Hasmukh Adhia. It is headquartered in Vadodara.

Topic: RBI

6. RBI authorizes Bandhan Bank as agency bank.

  • RBI has authorized Bandhan Bank as agency bank for undertaking government business.
  • RBI has also authorized other banks as agency bank. In May 2021, RBI has issued guidelines that authorize scheduled private sector banks as agency banks for conduct of government business.
  • Bandhan Bank will now be able to handle transactions related to the collection of State taxes and revenue receipts such as GST and VAT.
  • It will also be able to handle transactions related to collection of stamp duty and pension payments on behalf of the Central and the State governments.

Bandhan Bank is a Kolkata based private sector bank. Dr. Anup Kumar Sinha is its current chairman. Chandra Shekhar Ghosh is its MD & CEO.

Topic: Appointments

7. Sharad Sharma appointed as Non-Executive Director of Yes Bank.

  • Sharad Sharma has been appointed as Non-Executive Director of Yes Bank.
  • The appointment is with effect from November 1. He was the Managing Director of State Bank of Mysore from August 2012 to April 2016.
  • Yes Bank is a Mumbai based Indian private sector bank founded in 2004. Prashant Kumar is its MD and CEO.

Topic: RBI

8. RBI extends the validity of its directions for Kapol Co-operative Bank.

  • RBI has extended the validity of its directions for Kapol Co-operative Bank by six months up to April 30, 2022.
  • RBI had placed Kapol Co-operative Bank under Directions with effect from the close of business on March 30, 2017, for six months.
  • The validity of direction was extended many times since then. Kapol Co-operative Bank is based in Mumbai.

 

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