Banking, Financial and Economic Awareness of 16 and 17 April 2020

1. HDFC bank's Safety Grid Campaign

• HDFC bank has started Safety Grid Campaign with the help of outer grid of its logo.
• As part of the campaign, the bank is using outer grid of its logo to help people practice social distancing.
• The campaign was implemented on pilot basis in Kolkata. It will be officially started in eight cities.
• The names of cities are Mumbai, Delhi, Bangalore, Kolkata, Hyderabad, Pune, Chandigarh and Bhubaneswar.

2. EPFO pays Rs 950 crore during previous 15 days

• Employee Provident Fund Organisation (EPFO) has paid Rs 950 crore rupees to settle 3.31 lakh PF withdrawal claims during previous 15 days.
• Under Pradhan Mantri Garib Kalyan Yojana (PMGKY) package announced in wake of COVID-19, special withdrawal was notified from EPF scheme on March 28, 2020.
• Under Pradhan Mantri Garib Kalyan Yojana (PMGKY) package 2020, government has decided to pay 24% of wages of wage earners earning less than Rs 15000 per month in their PF accounts for next 3 months.
• The settlements have been made under EPF scheme. EPF scheme 1952 is one of three schemes operated by the Central Board of Trustees. 
• Other two schemes are Pension Scheme 1952 and insurance scheme 1976.
• Employee Provident Fund Organisation (EPFO) was started in 1952. 
• Ministry of Labour and Employment exercises administrative control over Employee Provident Fund Organisation.
• EPFO is responsible for providing help to Central Board of Trustees.

3. Telecom sector not to be influenced by coronavirus

• As per ICRA, the telecom sector will not be influenced by coronavirus, but there will be an increase in debt of telecom sector due to Adjusted Gross Revenue (AGR) dues.
• ICRA has said that the telecom industry will face uncertainty due to past debt.
• On 31 March 2020, the debt of telecom industry declined to Rs 4.4 lakh crore. Earlier, the overall debt of industry was Rs 5 lakh crore.
• As per ICRA, telecom industry’s revenue growth will remain at 18%.
• Currently, AGR dues of industry stand at Rs 90,000 crore.
• Earlier, the department of telecommunication has proposed 20 year long plan for payment of dues.

4. Health insurance and third party motor insurance policies to be renewed till May 15

• Government has allowed renewal of health insurance and third party motor insurance policies having due date between March 25 to May 3.
• Health insurance and third party motor insurance policies having due date between March 25 to May 3 will be continued till May 15.
• Normally, policies lapse if dues are not paid till date of renewal. Some companies fix penalty for allowing renewal of policy after due date.

Multiple Choice Questions (MCQs)

1. Which of the following bank has recently started Safety Grid Campaign to help people practice social distancing?

1. HDFC bank
2. ICICI bank
3. SBI
4. PNB
5. Axis bank

2. When did the government notify special withdrawal from the EPF scheme as part of Pradhan Mantri Garib Kalyan Yojana (PMGKY) package 2020?

1. March 1, 2020
2. March 12, 2020
3. March 19, 2020
4. March 25, 2020
5. March 28, 2020

3. Currently, Adjusted Gross Revenue (AGR) dues of telecom industry stand at

1. Rs 40,000 crore
2. Rs 90,000 crore
3. Rs 1.6 lakh crore
4. Rs 3.5 lakh crore
5. Rs 4.4 lakh crore

4. Government has allowed renewal of health insurance and third party motor insurance policies till

1. May 3
2. May 15
3. May 31
4. June 15
5. June 31

Solution:

1. A

2. E

3. B

4. C

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