Banking, Financial and Economic Awareness

Half Yearly (Jan - June 2021)
2021 Book

Banking Awareness

Topic: Indian Economy

1. As per NSO, CPI based retail inflation increased 5.52% year-on-year in March.

  • As per National Statistical Office (NSO), CPI based retail inflation increased 5.52% year-on-year in March 2021.
  • An increase in retail prices of edible oils and pulses is a major contributor to the rise in retail inflation since March last year.
  • The prices of edible oils have increased nearly 25% since March last year. Pulses and products recorded retail inflation rate increase of 13.25 % since March last year.
  • India’s annual demand for edible oils currently stands at 230 lakh tonnes (lt). Domestic production of oil is around 70-80 lt. Rest of the oil demand is fulfilled through imports.

Topic: Banking System

2. Axis Bank becomes co-promoter of Max Life Insurance Company Limited.

  • Axis Bank has become co-promoter of Max Life Insurance Company Limited.
  • Axis Entities has collectively acquired a 12.99% stake in Max Life Insurance Company Limited (Max Life).
  • Private sector bank, Axis Bank Limited, and its subsidiaries Axis Capital Limited and Axis Securities Limited are collectively called Axis Entities.
  • Insurance Regulatory and Development Authority of India (IRDAI) approved the deal in February 2021.
  • In February 2020, Max Financial Services Limited (MFSL) and Axis Bank had first announced their intent to bring in the Axis Bank as a strategic partner in Max Life.
  • Max Financial Services Limited (MFSL) is Max Life’s holding company.

Topic: Indian Economy

3. Finance Ministry imposes anti-dumping duty on imports of N-Butanol.

  • Finance Ministry has imposed anti-dumping duty on imports of Normal Butanol (N-Butanol) from the European Union, Malaysia, Singapore, South Africa and the US.
  • Imposition of anti-dumping duty is based on complaint filed by Andhra Petrochemicals Ltd for sunset review of the anti-dumping duty on imports of N-Butanol from these locations.
  • Anti-dumping duty has been imposed by Revenue Department under the Ministry of Finance on the recommendations of the Directorate General of Trade Remedies in the Commerce Ministry at the end of March 2021.
  • The anti-dumping duty will be applicable for a period of five years.
  • Normal Butanol is converted into derivatives for use as solvents in coating industries and printing inks.
  • It is also used in the production of drugs, in the textile industry and as an anti-icing additive in gasoline.

Topic: Banking System

4. Rs 4.04 crore stolen by a private security guard from currency chest of Axis Bank in Chandigarh.

  • Recently, Rs 4.04 crore has been stolen by a private security guard from currency chest of Axis Bank in Chandigarh.
  • Currency chest is a place where RBI keeps money meant for banks and ATMs. Currency chests are located on the premises of banks. RBI administers them.
  • The money in the currency chest belongs to the RBI and the money in the strong room outside the currency chest belongs to the bank.
  • The bank in which the currency chest is situated makes a security arrangement for currency chest. RBI later reimburses the expenses.
  • A bank may keep money in currency chests as per its Cash Balance Limit (CBL). CBL differs in every bank.
  • In 2016, RBI formed a ‘Committee on Currency Movement’. DK Mohanty chaired the Committee. In April 2019, RBI issued guidelines for banks to establish currency chests.

Topic: Regulatory Bodies/Financial Institutions

5. Mandatory hallmarking of gold jewellery and artefacts to be implemented from June 1, 2021.

  • Corporate Affairs Ministry has said that mandatory hallmarking of gold jewellery and artefacts will be implemented from June 1, 2021.
  • Bureau of Indian Standards is ready for mandatory hallmarking of gold. It is presently voluntary. It was to be made mandatory from January 15.
  • From June 1, jewelers will be allowed to sell gold jewellery of only 14, 18 and 22 carats.
  • Annual minimum marking fee for micro enterprises, start-ups and women entrepreneurs for BIS certification has been reduced by 50%.
  • Bureau of Indian Standards (BIS):
    • It is an Indian national standard body that works under the aegis of the Ministry of Consumer Affairs, Food and Public Distribution.
    • It is a statutory body that was established by the Bureau of Indian Standards Act, 2016.
    • Its headquarters is in New Delhi.
    • Director General: Pramod Kumar Tiwari

Topic: Regulatory Bodies/Financial Institutions

6. ₹10,000-crore ‘Special Refinance Facility-2021’ (SRF-2021) launched by National Housing Bank (NHB).

  • ₹10,000-crore ‘Special Refinance Facility-2021’ (SRF-2021) has been launched by National Housing Bank (NHB).
  • SRF-2021 has been launched to provide short-term refinance support to housing finance companies (HFCs) and other eligible PLIs.
  • In May-August 2020, refinance support of ₹ 14,000 crore under the Special Refinance Facility (SRF) and Additional Special Refinance Facility (ASRF) was provided by NHB.
  • In April 2020-March 2021, NHB had provided ₹ 42,823.93 crore as refinance to Primary Lending Institutions (PLIs).
  • National Housing Bank was founded in July 1988. It is headquartered in New Delhi. It is the apex financial institution for the housing sector.

Topic: Corporates/Companies

7. Syska LED wins CESL’s tender to distribute LED bulbs for homes in rural India.

  • Syska LED has won Convergence Energy Services Ltd (CESL)’s tender to distribute LED bulbs for homes in rural India under the Gram Ujala programme.
  • Under the agreement, CESL will procure 70 lakh 12-watt lamps and 30 lakh 7-watt lamps from the manufacturer (Syska LED).
  • Convergence Energy Services Ltd (CESL) is a newly set up and wholly-owned subsidiary of Energy Efficiency Services Ltd.
  • Gram Ujala programme was launched last month. Under this programme, LED lamps will be distributed to homes in rural India at ₹10.

 

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