Banking, Financial and Economic Awareness of 14 and 15 March 2020

By PendulumEdu | Last Modified: 30 Mar 2020 10:47 AM IST
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1. Excise duty on petrol and diesel increased by Rs 3 per litre

  • The government has increased excise duty on petrol and diesel by Rs 3 per litre.
  • While there will be no impact on retail prices as state-owned oil firms adjusted them against the recent drop in oil prices.
  • Excise duty. It’s a form of indirect tax imposed by the government on goods for their production, licensing and sale.  

2. Union Cabinet approves reconstruction scheme for Yes bank revival

  • The Union Cabinet, on March 13, 2020, has approved a draft resolution scheme of RBI for YES Bank.
  • RBI has earlier imposed a month-long moratorium on the Yes Bank.
  • SBI, LIC & top PSB’s will together infuse capital of Rs 11,000 crore into Yes bank.
  • Rs 7250 crore will be invested by SBI while HDFC Ltd. and ICICI Bank Ltd. will invest Rs 1000 crore each.
  • Rs. 600 crore will be invested by Axis Bank, and Kotak Mahindra Bank Ltd is expected to invest Rs 500 crore.  
  • Under the proposed scheme, the maximum shares will be held by SBI followed by HDFC and ICICI bank, while Axis bank and Kotak Mahindra bank may hold around 3.5% each.
  • The additional tier 1 bondholders may hold 10.73%, and existing shareholders may hold 14.79%. 
  • AT 1 Bond- Unsecured, perpetual bonds that bank issue to support their core capital base to meet the Basel III norms.
  • Basel III:
    • The Basel Committee on Banking Supervision (BCBS) developed a set of standards in the wake of the financial crisis of 2007-09. The standards were agreed internationally.
    • Basel III guideline prescribes the minimum requirements that shall apply to all internationally active banks.
    • Since 2013, Indian Banks are implementing Basel III norms.  
    • The Basel III guidelines are based upon 3 very important aspects which are called 3 pillars of the Basel III:
      • Minimum Capital Requirement
      • Risk Management and Supervision
      • Market Discipline                              

3. GST hikes on smartphones will lead to job losses, dampen investment

  • The GST council has decided to increase the GST rate on mobile phones and specific parts. The decision has been taken during the council meeting in New Delhi.
  • The GST rates on mobile phones has been increased from 12% to 18% from April 1, 2020.
  • While GST rates for domestic maintenance, repair and overhaul (MRO) service has been reduced from 12% to 5%.
  • Earlier GST rates for Handmade and machine Made matchsticks were between  5%-18%, and now it is rationalized to 12%.

4. Post-harvest fisheries losses at 61,000 crore, says a Parliamentary panel

  • As per the report of the parliamentary standing committee on Agriculture, India faces annual post-harvest losses of Rs 61000 crore in the production of marine and inland fisheries, and it results in huge losses to fishermen.
  • P C Gaddigoudar, the head of the parliamentary standing committee on agriculture, annual post-harvest losses for inland fisheries is higher than as compared to marine fisheries.
  • Marine fisheries resources spread along the country’s vast coastline over 20 lakh sq. km Exclusive Economic Zone (EEZ) and nearly 6 lakh sq. km continental area.
  • Exclusive Economic Zone(EEZ):
  • As per UNCLOS, EEZ is an area beyond and adjacent to the territorial sea where the coastal State has the sovereign rights to explore and exploit the marine resources.
  • EEZ shall not extend beyond 200 nautical miles from the baselines from which the breadth of the territorial sea is measured.


Multiple Choice Questions (MCQs)

Q1. The government hiked excise duty on petrol & diesel by__________

  1. Rs 2 per litre
  2. Rs 2.5 per litre
  3. Rs 3 per litre
  4. Rs 3.5 per litre
  5. None of these

Q2. Excise duty is a _________ tax.

  1. Direct
  2. Indirect
  3. Income
  4. Custom
  5. All of the above

 Q3. How many banks are infusing capital in Yes bank?

  1. 3
  2. 4
  3. 5
  4. 6
  5. None of these

Q4. Which of the following are the 3 pillars of the Basel III norms?

  1. Perpetual Bond
  2. Regulation Management
  3. Minimum Capital Requirement
  4. Risk management and Supervision
  5. Market Discipline

Select the correct answer using the codes given below:

  1. 1, 2 and 3
  2. 2, 3 and 4
  3. 1, 2 and 4
  4. 3, 4 and 5
  5. 2, 3 and 5

Q5. GST rates on mobile phones to increase to 18% from 12% with effect from_____________?                           

  1. 31st March 2020
  2. 1st April 2020
  3. 31st March 2021
  4. 1st April 2021
  5. None of these                           

Q6. P C Gaddigoudar is the member of Lok Sabha, which constituency does he represent?

  1. Erode, Tamil Nadu
  2. Karur, Tamil Nadu
  3. Chitradurga, Karnataka
  4. Bagalkot, Karnataka
  5. Kallakurichi, Karnataka



1. C

2. B

3. C

4. D

5. B

6. C




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