Banking, Financial and Economic Awareness of 1 and 2 April 2021

Topic: Reports and Indices

1. UNESCAP said that India’s economic output in 2021 would be below 2019 level.

• In its report titled ‘Economic and Social Survey of Asia and the Pacific 2021’, UNESCAP said that India’s economic output in 2021 would be below 2019 level.
• As per the report, India will record an economic growth of 7 % in 2021-22. The report says that developing Asia-Pacific economies will grow 5.9% in 2021 and 5% in 2022.
• National Statistical Office (NSO) in its second advance estimates of national accounts has estimated 8% contraction in 2020-21.
• United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP):
  • UNESCAP is one of the five regional commissions under United Nations Economic and Social Council.
  • It was formed in 1947. It is headquartered in Bangkok, Thailand.

Topic: Indian Economy

2. Government cuts rates on small savings instruments for the first quarter of 2021-22.

• The government has cut rates on small savings instruments for the first quarter of 2021-22.
• With this, the rate of return on the Public Provident Fund has come down from 7.1% to 6.4%.
• The quarterly interest rate paid on one-year term deposits was cut from 5.5% in January to March Quarter to 4.4% in this quarter.
• Government usually revises interest rates on small saving instruments every quarter. Currently, retail inflation is crossing 6% mark and government is lowering interest rates to implement its borrowing plans for the year. The Government has planned to borrow Rs12.05 lakh crore in 2021-22.
• The government has also cut down the rate of return on the Senior Citizen Savings’ Scheme, Sukanya Samriddhi Account Scheme and others as given below.

Topic: Banking/Financial Schemes

3. Union Cabinet approves a Production-Linked Incentive (PLI) scheme for the food processing sector with an outlay of ₹10,900 crore.

• Union Cabinet has approved a Production-Linked Incentive (PLI) scheme for the food processing sector with an outlay of ₹10,900 crore.
• Government will implement this scheme over six years till 2026-27. Government expects that the scheme will help in the expansion of production capacities to generate processed food output worth Rs 33,494 crore.
• The first component of the scheme aims to incentivize the manufacturing of products in four major food product segments given below. 
  • Ready-to-cook and ready-to-eat foods
  • Processed fruits and vegetables
  • Marine products
  • Mozzarella cheese
• The second component of the scheme relates to support for branding and marketing abroad.
• Innovative or organic products of small and medium-sized enterprises (SMEs) will also come under this scheme.

Topic: Miscellaneous

4. Four labour codes not to be implemented from April 1, 2021.

• Four labour codes (codes on industrial relations, wages, social security and occupational health safety & working conditions) will not be implemented from April 1, 2021.
• Earlier, the labour Ministry was to implement them from April 1, 2021. It had also finalized rules under the labour codes.
• States have not yet finalized rules under codes. Only some states have finalized the rules so the implementation of codes has been deferred.
• Labour is a concurrent subject so both centre and states are required to notify rules under the codes. 

Topic: India Economy

5. Government defers new Foreign Trade Policy (FTP) by six months.

• Government has deferred the new Foreign Trade Policy (FTP) by six months.
• Current FTP has been extended till September 30, 2021. The government has decided to extend various benefits export promotion schemes by six months. Some of them are given next.
  • Exemption from payment of IGST  
  • Exemption from payment of compensation cess on imports made under Advance/EPCG Authorisations
  • Validity period of the Status Holder Certificates
• New FTP was to be implemented from April 1, 2021.  But, it has been extended due to Covid -19.
• India’s goods exports will decrease by 8-10 % in 2020-21.

Topic: Agriculture

6. MoU signed between NCML and Agriculture Skill Council of India (ASCI).

• An MoU has been signed between National Collateral Management Limited (NCML) and the Agriculture Skill Council of India (ASCI).
• The MoU has been signed to provide skill training in the agriculture sector. It will also benefit the agriculture warehousing industry.
• Under the MoU, NCML will recognize prior learning of 8-9 different skills matching the QPs (Qualification Pact) of ASCI.
• NCML will also recognize about 920 people in the country across 19 cities. ASCI will be a facilitator for developing occupational standards.
• Agriculture Skill Council of India (ASCI) is a Section 8 Not for profit concern working under the aegis of the Ministry of Skill Development & Entrepreneurship (MSDE).

Topic: Banking System

7. YES Bank buys Reliance Centre at Santacruz, Mumbai.

• YES Bank has bought Reliance Centre at Santacruz, Mumbai.
• Reliance Infrastructure Limited sold its office Reliance Centre to YES Bank for Rs 1,200 crore.
• YES Bank is taking possession of properties under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
• YES Bank had earlier issued notice to Reliance Infrastructure Ltd under the SARFAESI Act to repay the dues within 60 days. However, the company failed to pay.

Topic: Banking System

8. ICICI Bank and PhonePe enter into partnership to issue FASTag using UPI on PhonePe App.

• ICICI Bank and PhonePe entered into a partnership to issue FASTag using UPI on PhonePe App.
• PhonePe users will now be able to order and track ICICI bank FASTag conveniently on the app. They will be able to buy FASTag without visiting physical stores or toll locations.
• ICICI Bank is the first bank, which has collaborated with PhonePe for the issuance of FASTag.
• ICICI Bank (ICICI Bank Limited) is a private sector bank. Girish Chandra Chaturvedi is chairman of its board of directors. Its MD & CEO is Sandeep Bakhshi.

Read Banking Awareness PDF - 1 and 2 April 2021