Topic: MoUs/Agreements
1. RBI and Bank Indonesia signed an MoU on 16 July 2022 in Bali, Indonesia.
- The Memorandum of Understanding (MoU) aims to improve mutual cooperation between them.
- It also aims at strengthening the exchange of information and cooperation in the area of central banking.
- It was signed on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting.
- Bank Indonesia is the central bank of the Indonesia. Perry Warjiyo is its current governor.
Topic: Reports and Indices
2. The share of Gulf countries in total remittances has declined as per RBI’s fifth round of the remittances survey for 2020-21.
- According to the survey, the share is estimated to have declined from over 50% in 2016-17 to about 30% in 2020-21.
- Advanced Economies, specifically the UK, the US and Singapore, accounted for 36% of total remittances in 2020-21 as per the survey.
- US accounted for 23% of total remittances in 2020-21. It surpassed UAE as top source country.
- The share of the traditional remittance recipient States of Kerala, Tamil Nadu and Karnataka has almost halved in 2020-21.
- Maharashtra is the top recipient state. It surpassed Kerala.
- Migration from states like Uttar Pradesh, Bihar, Orissa, and West Bengal to the Gulf countries has increased in recent years.
- However, their share in remittances has remained significantly low.
- India remained the top recipient country (with $89.4 billion inward remittances).
- It accounted for 12% of total global remittances. A marginal decline of 0.2% was recorded in 2020 and a growth of 8% was recorded in 2021.
- Private Banks retained their dominance in the remittances business.
- In 2020-21, the share of private sector banks in overall banks' total remittances stood at 52.8%.
- The share of public sector banks and foreign banks was at 39.4% and 7.8%, respectively. Public sector banks lost market share in the remittances business.
Topic: Appointments
3. SEBI has cleared appointment of Ashish Chauhan as MD and CEO of NSE.
- He will take the position of Vikram Limaye, whose term at National Stock Exchange (NSE) ended on July 16.
- Ashish Chauhan was one of the founding team members of NSE in 1992. He is currently the MD and CEO of Bombay Stock Exchange (BSE).
- Chauhan’s appointment is subject to acceptance of the offer made to him.
- Governing Board of NSE has appointed an Internal Executive Committee to run the affairs of the company. It will be dissolved upon the new MD & CEO assuming office.
- National Stock Exchange (NSE):
- It is located in Mumbai, Maharashtra. It was incorporated in 1992.
- It was recognised as a stock exchange by SEBI in April 1993. It commenced operations in 1994.
- It launched NIFTY 50 Index 1996. It is the world’s largest derivatives exchange in 2021 by number of contracts traded.
Topic: Indian Economy/Financial Market
4. Zero coupon zero principal (ZCZP) instruments have been declared as securities by Finance Ministry.
- As per the notification of Finance Ministry, ZCZP instrument is an instrument issued by a not-for-profit organization.
- This shall be registered with the social stock exchange (SSE) segment of a recognised stock exchange in accordance with the regulations made by SEBI.
- The notification also includes ZCZP in the list of securities under Securities Contracts (Regulation) Act, 1956.
- This list of securities currently includes shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities, derivative, units or any other instrument issued by any collective investment scheme.
- This list of securities also includes security receipts, mutual fund units (excluding ULIPs), units issued by any pooled investment vehicle and government securities.
- These securities can be traded on a recognised stock exchange. SEBI can regulate their trading.
- In September 2021, SEBI board has approved a framework for social stock exchange (SSE) through which ZCZP can be issued. Neither any interest is paid nor is principal repaid under ZCZP.
Topic: Indian Economy/Financial Market
5. India’s exports have increased from 5,256 million dollars in April to June of FY22 to 5,987 million dollars in April to June of FY23.
- Agricultural and processed food product exports have increased by 14% in April-June of the financial year 2022-23 compared to the corresponding period of 2021-22.
- Fresh fruit and vegetable exports registered an 8.6% growth.
- Processed food products like cereals and miscellaneous processed items reported a growth of 36.4%.
- Rice exports have shown growth of 13%. The export of meat, dairy and poultry products increased by 9.5%.
Topic: Indian Economy/Financial Market
6. CA institute has revised Guidance Note for Companies Auditors Report Order (CARO) 2020.
- The Guidance Note was initially issued in 2020 and Institute of Chartered Accountants of India (ICAI) has revised it now.
- ICAI’s step to revise Guidance Note is in the wake of amendments made by the Government to Schedule III to the Companies Act, 2013 in March 2021.
- Schedule III requires various disclosures to be made by companies in their financial statements.
- CARO specifies the format of the auditor report on company financial statements.
- Under the Companies Act 2013, there have been three versions of CARO (2015, 2016 and 2020).
Topic: Corporates/Companies
7. Bharti Airtel has allotted 1.2% (over 7.1 crore) equity shares to Google for about ₹5,224 crore.
- Google has made the investment in Airtel under its $10-billion India Digitization Fund.
- Google has invested ₹33,737 crores and bought 7.73% stake in Jio Platforms after making an announcement about the India Digitization Fund.
- Bharti Airtel (Airtel) has also successfully tested first 5G private network at Bosch Automotive Electronics India facility in Bengaluru.
- India Digitization Fund was announced by Google in July 2020 to help accelerate India’s digital economy.
Topic: Banking System
8. Yes Bank has selected JC Flowers ARC as partner for the sale of non-performing assets (NPAs) worth around ₹48,000 crore.
- Yes Bank has signed a binding term sheet with JCF ARC LLC and JC Flowers Asset Reconstruction for strategic partnership for sale of NPAs.
- In March 2021, RBI rejected Yes Bank’s proposal to set up an asset reconstruction subsidiary.
- There are currently 29 ARCs in the country, including National Asset Reconstruction Company Ltd (NARCL).
- Yes Bank was founded in 2004. It is headquartered in Mumbai. Prashant Kumar is its MD and CEO.
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