Banking, Financial and Economic Awareness of 1, 2 and 3 February 2021

By PendulumEdu | Last Modified: 06 Feb 2021 22:20 PM IST

Main Headlines:

Topic: Corporates/Companies

1. Privatisation of Rashtriya Ispat Nigam Ltd (RINL) approved by cabinet.

Privatisation of Rashtriya Ispat Nigam Ltd (RINL) has been approved by cabinet.
But it has not been decided whether its subsidiaries will be part of the privatization or not.
Orissa Minerals Development Company Ltd (OMDC) and Bisra Stone Lime Company Ltd (BSLC) are RINL’s subsidiaries.
BSLC operates mining of limestone and dolomite at mines located in Birmitrapur in Odisha’s Sundargarh district.
OMDC runs six iron ore and manganese ore mining leases. They are located at Barbil in Odisha’s Keonjhar district. The names of mines are given below.

Dalki manganese mines	Kolha Roida iron & manganese mines	Thakurani iron & manganese mines
Bariaburu iron mines	Belkundi iron & manganese mines	Bhadrasai iron & manganese mines

Rashtriya Ispat Nigam Ltd (RINL) is a navratna PSU. It runs Visakhapatnam Steel Plant. Currently, government’s stake in Rashtriya Ispat Nigam Ltd (RINL) is 100%.

Topic: Appointments

Manoj Shenoy has become new Chief Executive Officer (CEO) of IIFL Asset Management.
His appointment has become effective from 2 February. He was working as Executive Director with IIFL Wealth group.
IIFL is an Indian company providing financial services.

Topic: Appointments

Jeff Bezos will become Executive Chairman of Amazon Board and Andy Jassy will become new CEO of Amazon.
Jeff Bezos is currently CEO of Amazon and Andy Jassy is current CEO of AWS (Amazon Web Services).
Jeff Bezos said that as an executive chairman, he will have time and energy to focus on Day 1 Fund, Bezos Earth Fund, Blue Origin, The Washington Post etc.
Blue Origin is an aerospace manufacturer and sub-orbital spaceflight services company founded by Jeff Bezos. Its CEO is Bob Smith.
Amazon was founded by Jeff Bezos in 1994. Alexa is the name of Amazon’s virtual assistant.

Topic: Corporates/Companies

Government will hold at least 75% stake in Life Insurance Corporation of India for coming five years.
As per the amendments to Life Insurance Act, 1956 tabled in Parliament with Finance bill, government will hold at least 51% stake in LIC after five years.
In amendments to Life Insurance Act 1956, it is proposed that authorized share capital of LIC would be increased to 25,000 crore rupees.
In Union Budget 2021-2022 speech, Finance Minister has announced that government would bring Initial Public Offering (IPO) of LIC. LIC is owned by government of India.
Y Viswanatha Gowd has been appointed as new CEO of LIC Housing Finance Ltd (LICHFL). Siddhartha Mohanty has become Managing Director of LIC.
LIC was formed on 1 September 1956. It is headquartered in Mumbai, India. Its chairperson is M R Kumar. Its slogan is yogakshemam vahamyaham (Your welfare is our responsibility).

Topic: Appointments

Rama Mohan Rao Amara has been appointed as MD & CEO of SBI Card for two years.
Ashwini Kumar Tewari was MD & CEO of SBI Card. He resigned as he was appointed as MD of SBI.
SBI Cards and Payment Services (SBI Card) is owned by State Bank of India and The Carlyle Group. It is a payment solutions provider in India.

Topic: Banking System

RBI has appointed an external IT firm for special audit of entire IT infrastructure of HDFC Bank.
The appointment of IT firm has been done under subsections of section 30 of Banking Regulation Act, 1949.
In December 2020, RBI told HDFC Bank to stop all its digital launches. RBI also asked HDFC Bank to stop new sourcing of credit card customers.
In January 2021, HDFC Bank submitted action plan to address the issue of service outages in digital banking services of HDFC Bank.
Section 30 of Banking Regulation Act 1949 is about audit of banking companies.
HDFC Bank Limited is headquartered in Mumbai. HDFC Bank is India‘s largest private sector bank. It was founded in 1994. CEO of HDFC Bank is Sashidhar Jagdishan.

Topic: Indian Economy

India’s first ever digital Union Budget presented by Union Finance Minister on 01 February.
Union Budget 2021-22 is India's first ever digital Union Budget. Union Budget documents have not been printed in physical form for the first time.
Union Budget 2021-22 will be available online on ‘Union Budget Mobile App’. Union Budget 2021-22 has six pillars as given below.
- Health and Wellbeing
- Physical & Financial Capital and Infrastructure
- Inclusive Development for Aspirational India
- Reinvigorating Human Capital
- Innovation and R&D
- Minimum Government and Maximum Governance
In addition to budget speech, the budget also contains Annual Financial Statement (Article 112), Demands for Grants (Article 113), Finance Bill (110) and other documents.
Budget:
- The budget in India is presented by the Finance Minister on the first day of February since 2016.
- James Wilson presented the first budget in India on February 18, 1860.
- After independence, the first union budget was presented on 26 November 1947 by independent India’s first Finance Minister, R.K. Shanmukham Chetty.