Banking, Financial and Economic Awareness
1. Walmart and Flipkart will jointly invest in Ninjacart
- Walmart and Flipkart have announced joint investment in Ninjacart.
- The joint investment will help Walmart and Flipkart in directly sourcing fresh produce for wholesale cash and carry stores of Walmart India and Supermart stores of Flipkart.
- Ninjacart will be able to increase its customer base, reach into new cities, and get exposed to global best practices.
- Ninjacart is a Bengaluru-based company that supplies fresh produce in India.
2. Cabinet approves limited credit guarantee scheme to NBFCs and HFCs
- Under the scheme, credit guarantee to Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) will be limited to lower of the first loss of maximum 10 % of the fair value of assets bought by banks or Rs 10,000 crore.
- The scheme will be open up till June 30, 2020 or till Rs 1 lakh crore assets are bought by banks.
- The banks will buy investment grade (BBB+ rated) assets and assets in the SMA-0 category during one year before August 1, 2018.
- Special Mention Account (SMA-0) loans are loans where principal or interest payment are due for 30 days.
3. Code on Social Security Bill tabled in Lok Sabha
- The Code on Social Security Bill has been presented in Lok Sabha.
- It universalizes social security benefits and makes Aadhaar compulsory for getting social security benefits.
- It allows the employee’s state insurance corporation to accept funds from corporate social responsibility funds.
- It allows the creation of special purpose vehicles to implement programmes for unorganized sector workers.
- Under the code, the central government may change Employees’ Provident Fund (EPF) monthly contribution for selected workers.
- If the bill becomes an act, workers employed for a fix-term of less than 5 years will also be paid gratuity.
- The bill combines 9 central labour acts into one code.
4. IBC (Second Amendment) Bill, 2019 approved by Cabinet
- Union Cabinet has approved IBC (Second Amendment) Bill, 2019 to change existing sections of Insolvency and Bankruptcy Code and add a new section.
- It has a provision guaranteeing successful resolution applicants from facing criminal proceedings related to crimes by earlier promoters of the company.
- The changes proposed in the bill will help in the resolution of cases such as Bhushan Power & Steel (BPSL), Kudos Chemie Ltd and SPS Steel Rolling Mills Ltd.
- In these cases, Enforcement Directorate (ED) has attached properties of companies going through resolution process under the Prevention of Money Laundering Act (PMLA).
- Insolvency and Bankruptcy Code 2016:
- It provides for the resolution of insolvency cases within 180 days.
- The Insolvency and Bankruptcy Code (Amendment) Bill, 2019 was passed on August 01, 2019.
- It fixed a time-limit of 330 days for completion of the resolution process.