Banking, Financial and Economic Awareness

1. Government may announce stimulus package for MSMEs

• Government may announce stimulus package for micro, small and medium enterprises (MSMEs).
• The stimulus package may include steps to increase limit of working capital for MSMEs, attract investment and ensure ease of doing business.
• Government may provide overdraft guarantee of maximum 20 % of limit of working capital for MSMEs.
• The issue of overdraft guarantee will also be part of meeting between Finance Minister and bankers on 11 May.
• The three month moratorium, which was announced by RBI on all kinds of term loans, will also be discussed during meeting between Finance Minister and bankers on 11 May.
• MSME sector gives employment to approximately 11 crore people, contributes more than 31 % to Gross value Added (GVA).
• In 2018-19, MSME sector contributed more than 48% to total exports.

2. India to produce 700 million tonnes coal in FY21

• India may produce 700 million tonnes coal in FY21.
• In FY20, India could produce only 602.14 million tonnes coal. This was less than 660 million tonnes target.
• The record production in FY21 will help India in lowering its import of coal.
• 235 million tonnes coal is annually imported by India. Less import will help India in achieving target of becoming USD 5 trillion by 2024. Currently, India's economy is at USD 2.9 trillion.
• Coal India Ltd is aiming to increase its annual coal production to 1 billion tonnes by FY 24.
• Currently, India produces 72 % of its electricity from coal. This may come down to 50% by 2030.
• Coal India Ltd is a Maharatna PSU. It is headquartered in Kolkata. It is the world’s largest coal producer company.

3. Brainwired raises funds from Mumbai angels

• Brainwired, which an agritech start-up has raised funds from Mumbai angels.
• Brainwired provides products or services to monitor and track health of the livestock.
• Romeo Jerard and Sreeshankar Nair are cofounders of Brainwired.
• Brainwired is developing WeSTOCK, which is a system for tracking and monitoring livestock health.

4. SBI may launch pre-approved personal loans

• SBI may launch pre-approved personal loans for its salaried customers.
• The loan will be offered through YONO, which is the digital banking product and service of SBI.
• YONO (You Only Need One) was started by SBI in November 2017.

 5. NFL shows increase in fertilizer sale

• Despite COVID-19 lockdown, National Fertilizers Limited (NFL) has shown 71 % increase in fertilizer sale in April.
• In April 2020, NFL’s fertilizer sale stood at 3.62 lakh tonne. In April 2019, NFL’s fertilizer sale stood at 2.12 lakh tonne.
• Currently, NFL can produce 35.68 lakh tonne of urea.
• National Fertilizers Limited (NFL) is a miniratna Public Sector Undertaking. It comes under the jurisdiction of Ministry of Chemicals and Fertilizers.
• It has five urea producing plants. Out of them, two are located in Nangal and Bathinda in Punjab. Two are located in Vijaipur in Madhya Pradesh. One is located in Panipat in Haryana.

Read Banking Awareness PDF - 10 and 11 May 2020