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

Topic: Regulatory Bodies/Financial Institutions

1. IBBI introduces graduated system of levy of monetary penalty for minor non-compliances by the IPs.

• Insolvency and Bankruptcy Board of India (IBBI) has introduced graduated system of levy of monetary penalty for minor non-compliances by the Insolvency Professionals (IPs).
• This will ensure IPs better discharge their duties and help distinguish performers and non-performers amongst IPs.
• IBBI has directed three Insolvency Professional Agencies (IPAs) to change their bye-laws to provide for monetary penalty for non-compliance by IPs registered with them.
• Three IPAs registered with IBBI are ICSI Institute of Insolvency Professionals, Insolvency Professional Agency of Institute of Cost Accountants of India and Indian Institute of Insolvency Professionals of ICAI.
• IBBI has specified 14 contraventions as well as minimum and maximum penalties that can be imposed.  
• The contraventions include failure to submit disclosures, returns, etc to IPAs or incorrect disclosures, returns relating to any assignment as required under IBC.
• Accepting an assignment having a conflict of interest with stakeholders is another contravention. In this case, penalty can be upto ₹ 2 lakh or 25 % of fee, whichever is higher, subject to a minimum of ₹1 lakh).

Topic: Banking System

2. UPI reaches beyond 300 crore mark in terms of volume and Rs 6 lakh crore in terms of transaction value.

• As per National Payments Corporation of India data, UPI processed 324 crore transactions worth Rs 6.06 lakh crore in July.
• In June, Unified Payments Interface (UPI) had processed 280 crore transactions worth Rs 5.47 lakh crore.
• In October 2019, UPI processed 100 crore transactions for the first time.
• As per NPCI data, other modes of digital payments have also shown growth.
• Immediate Payments Service (IMPS) reached 34.97 crore transactions worth Rs 3.09 lakh crore in July. This was the first time that IMPS has crossed Rs 3 lakh crore mark.
• Aadhar Enabled Payment System (AePS) transactions have also increased in July.

Topic: Indian Economy/financial Market

3. Government makes changes to import policy by shifting certain pulses to free category.

• Government has made changes to import policy by shifting Tur, Urad and Moong from restricted category to free category.
• The shifting has been done for a limited period from 15^th of May to 31^st October 2021.
• The shifting has been done to enhance the domestic availability and smoothens the inflow of pulses.
• In a written reply to a question in the Rajya Sabha, Agriculture Minister Narendra Singh Tomar informed about MSPs of Tur, Moong and Urad.

Topic: Corpoartes/Companies

4. Centre introduces bill to amend Limited Liability Partnership (LLP) Act 2008 in Rajya Sabha.

• Centre has introduced a bill to amend Limited Liability Partnership (LLP) Act 2008 in Rajya Sabha.
• The bill is titled as the Limited Liability Partnership (Amendment) Bill 2021.
• It introduces the concept of “small Limited Liability Partnership” in line with the concept of “small company” under the Companies Act 2013
• In the bill, small Limited Liability Partnerships (small LLPs) are defined as Limited Liability Partnerships where contribution does not exceed ₹25 lakh or a higher prescribed amount not exceeding ₹5 crore.
• Additionally, the turnover of small LLPs in the preceding financial year should not exceed ₹40 lakh or a higher prescribed amount not exceeding ₹50 crore.
• The bill empowers centre to prescribe “accounting standards” or “auditing standards” for a class or classes of LLPs.
• It also gives centre power to set up or designate as many “special courts” as may be necessary for the purposes of providing speedy trial of offences under the LLP Act.

Topic: Appointments

5. Deepak Das appointed new Controller General of Accounts.

• Deepak Das has been appointed as the new Controller General of Accounts with effect from 1 August 2021. 
• He is the 25 officer who took charge as CGA.
• He is a 1986 batch Indian Civil Accounts Service (ICAS) officer.
• Prior to this, he served as the Principal Chief Controller of Accounts in the Central Board of Direct Taxes.

Topic: Infrastructure and Energy

6. Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 passed by Lok Sabha.

• Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 has been passed by Lok Sabha.
• The bill proposes to amend the definition of “major airport" under the Airports Economic Regulatory Authority Act, 2008 (AERA Act).
• The amendment aims to pair the smaller non-profitable airports with profitable airports as a combination/package to bidders.
• This will make a viable combination for investment under PPP (public-private partnership) mode.
• After the amendment, Airports Economic Regulatory Authority (AERA) will be allowed to not only regulate tariff for aeronautical services for not just major airports with annual passenger traffic of more than 3.5 million, but also for a group of airports together.

Topic: Taxation

7. The validity of anti-dumping duty on Polytetrafluoroethylene (PTFE) imports from Russia extended by one more month.

• Anti-dumping duty on Polytetrafluoroethylene imports from Russia will now continue till November 30 after the one-month extension given by Finance Ministry.
• Directorate General of Trade Remedies (DGTR) in the Commerce Ministry has requested a further extension of anti-dumping duty on Polytetrafluoroethylene imports from Russia.
• PTFE is mainly used in electrical, electronic, mechanical and chemical industries.
• In June 2016, anti-dumping duty on Polytetrafluoroethylene imports from Russia was levied for five years. It was extended to October 31.

Topic: Taxation

8. Finance Ministry notifies changes in GST law to provide self-certification of reconciliation statement.

• Finance Ministry has notified changes in GST law to provide self-certification of reconciliation statement with effect from 1 August.
• As per the law, every registered GST assessee should file an annual return in Form 9. Assesses with a turnover of over ₹2 crore should file a reconciliation statement in Form 9C.
• This reconciliation statement should be certified by Auditor or Chartered Accountant or Certified Management Accountant (CMA).
• Finance Act 2021 had done away with the need for certification by an auditor. Assesses can now self-certify the re-conciliation statement.
• Finance Ministry has now notified this change in the law. After a change in the law, the reconciliation statement in FORM GSTR-9C for the FY 2020-21 should be filed by taxpayers with an annual aggregate turnover above ₹ 5 crore.

Read Banking Awareness PDF -1 and 2 August 2021