Banking, Financial and Economic Awareness of 16 and 17 April 2021

Topic: Corporates/Companies

1. BHEL identifies 300 products worth ₹3,000 cr to procure from MSMEs.

• Bharat Heavy Electrical Limited (BHEL) has identified 300 products worth ₹3,000 cr to procure annually from MSMEs.
• BHEL has further launched the Sanrachna online technology platform to jointly support the domestic industry in technology innovation and problem solving.
• India exports $8.5 billion of electrical machinery. This is just 2% of the global trade in the electrical machinery segment.
• The size of India’s electrical machinery industry at about $50 billion is low in comparison to $200 billion target set under Indian Electrical Equipment Industry Mission Plan 2012–2022.
• BHEL is an Indian public sector company and India’s largest power generation equipment manufacturer. Its CEO is Nalin Singhal. Anil Joshi is the Executive Director of BHEL.

Topic: RBI

2. Names of applicants under the Guidelines for ‘on tap’ Licensing of Universal Banks and Small Finance Banks in the Private Sector released by RBI.

• RBI has released names of four applicants who applied under the Guidelines for ‘on tap’ licensing of Universal Banks and Small Finance Banks in the Private Sector.
• Only Four applicants have applied for each (total eight for both) of the guidelines. RBI had issued Guidelines for ‘on tap’ licensing of Universal Banks in the private sector on August 1, 2016.
• The guidelines for ‘on tap’ licensing of Small Finance Banks in the private sector were issued by RBI on December 5, 2019.
• In March 2021, the constitution of Standing External Advisory Committee for evaluating the applications for Universal Banks as well as Small Finance Banks was announced.
• Shyamala Gopinath, former Deputy Governor of RBI, is the chairperson of this committee.
• Initial minimum paid-up voting equity capital/ net worth for a Universal Bank and Small Finance Bank is ₹500 crore and ₹200 crore, respectively.

Topic: Indian Economy

3. Wholesale inflation increases to more than 8-year high level at 7.4% in March.

• Wholesale inflation increases to more than 8-year high level at 7.4% in March.
• As per Commerce & Industry Ministry, the increase in wholesale inflation is mainly due to higher fuel and metal prices.
• Month-on-month (March 2021 over February 2021) rate of inflation stood at 1.57 %.
• The inflation rate based on WPI Food Index increased from 3.31% in February, 2021 to 5.28% in March, 2021.
• Wholesale inflation is known as Producers’ inflation. It is based on Wholesale Price Index (WPI).
• National Statistical Office (NSO) had earlier released data for Consumer Price Index (CPI). Retail inflation data is mainly used in monetary policy decisions.

Topic: Miscellaneous

4. Golden Rock (GR) Workshop from Southern Railway wins first prize for best Innovation on Indian Railway.

• Golden Rock (GR) Workshop from Southern Railway has won first prize for best Innovation on Indian Railway.
• Golden Rock (GR) Workshop won the prize jointly with North-East Railway for developing and implementing Internet of Things based smart energy management.
• Golden Rock won the award for condition monitoring system for energy-intensive machines and substation low-tension panels.
• Efficiency and research directorate of the Railway Board organizes award annually. Best innovation carries a cash award of ₹1.50 lakhs.

Topic: Corporates/Companies

5. Amazon India launches $250 million Smbhav Venture Fund for start-ups, entrepreneurs.

• At the opening session of 2^nd edition of its event Smbhav, Amazon India launched $250 million Smbhav Venture Fund for start-ups, entrepreneurs.
• As part of the fund, an investment in a start-up, “M1xchange” was announced.
• ‘Spotlight North East’ initiative to bring 50,000 artisans, weavers and small businesses online from the 8 States in the North-East by 2025 was also launched by Amazon.
• In March 2021, 2^nd edition of Amazon Smbhav Awards was also announced. Amazon Smbhav 2021 summit is being hosted from April 15-18, 2021.

Topic: Regulatory Bodies/Financial Institutions

6. Expenditure Department decides to set up a dedicated PFMS division within Controller General of Accounts (CGA).

• Expenditure Department has decided to set up a dedicated Public Financial Management System (PFMS) division within Controller General of Accounts (CGA).
• PFMS division will be under the control of the Controller General of Accounts (CGA). However, it will be given functional autonomy.
• It will look after the work of design, development as well as the implementation of the PFMS.
• Additional CGA rank officer heads the PFMS division. It will report to CGE administratively. It will report to Expenditure Secretary for PFMS related measures.
• PFMS was set up in 2009. It is a web-based online software application developed by CGA. CGA implements it.
• It was set up to track funds released under all Plan schemes of the Centre. Its scope was further enlarged to cover direct payment to beneficiaries under all schemes.

Topic: MoUs/Agreements

7. Facebook signed a deal to buy renewable energy in India.

• Facebook has signed a deal with a local renewable energy firm to buy renewable energy in India. It is the first such kind of deal of Facebook in India.
• In 2020, Facebook became the net-zero carbon emitter. Its global operation is fully supported by renewable energy.
• Facebook and CleanMax are working together on solar and wind projects to supply renewable energy in India. A 32-megawatt wind power project of Karnataka is part of this pact.
• Facebook has also signed a similar deal with the Singapore energy providers Sunseap Group and Terrenus Energy.
• The wind and solar projects will be owned and operated by CleanMax. Facebook will only purchase electricity from the renewable power company.
• Facebook:
  • It is an American online social media and Social networking company.
  • It was founded by Mark Zuckerberg in 2004.
  • Its headquarters is located in California, United States.

Topic: Corporates/ Companies

8. Flipkart to acquire online travel technology company Cleartrip.

• Indian e-commerce company, Flipkart, will acquire online travel technology company Cleartrip. It will acquire 100% shareholding of Cleartrip.
• Under the agreement, Flipkart will acquire the operation of Cleartrip. However, Cleartrip will continue to work as a separate brand.
• Cleartrip will work with Flipkart to develop technology solutions for travel customers.
• The deal will be approved by the concerned regulatory.
• Cleartrip:
  • It was founded by Hrush Bhatt, Matthew Spacie, and Stuart Crighton in 2006.
  • It operates as an online travel aggregator website for booking flights, hotels, and train tickets.
  • Stuart Crighton is the current CEO of Cleartrip.
• Flipkart is an e-commerce company. It is headquartered in Bangalore. Myntra and PhonePe are its subsidiaries.

Topic: Appointments

9. Ajay Seth takes charge as Economic Affairs Secretary.

• Ajay Seth has taken charge as Economic Affairs Secretary.
• He has replaced Tarun Bajaj, who has been given charge as Secretary of Revenue Department.

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