Banking, Financial and Economic Awareness of 18, 19 and 20 April 2020

By PendulumEdu | Last Modified: 21 Apr 2020 12:19 PM IST
Half Yearly (Jul- Dec 2023)
2023 Book

Banking Awareness

1. Finance Act, 2020 gives no choice of staying outside or inside of new tax regime

  • Finance Act, 2020 does not give choice to people earning income from operations of a business for staying outside or inside of new tax regime proposed by Finance Bill, 2020.
  • If people earning income from operations of business once choose to go for new tax regime proposed by Finance Bill, 2020 cannot choose to go to previous regime until they continue to earn business income.
  • This means that if they do not earn business income, they can go back to the usual tax regime.
  • Finance Act, 2020 also clarifies that amount of over seven lakh rupees sent from India under Liberalised Remittance Scheme (LRS) of RBI will be subject to tax collected at source (TCS) of 5% proposed by Finance Bill 2020.
  • The rate of TCS will be 0.5% if the loan is for the purpose of education and is received from a banking company.
  • Against the earlier date of 1 April 2020, TCS will be applied from 1 October, 2020.
  • Finance Act, 2020 has also kept capital gains out of 10% tax deducted at source (TDS) applied on money paid to holders of mutual fund units.
  • Finance Act, 2020 has also decreased the rate of TDS on dividends to non-residents from 30% to 20% under section 195 of the Income tax Act.
  • Liberalised Remittance Scheme was started in 2004. It allows remission of 2, 50,000 US Dollars in a financial year by all resident individuals.

2. e-Commerce companies not allowed for supplying non-essential goods

  • Ministry of Home Affairs (MHA) has clarified that e-commerce companies are not allowed to supply non-essential goods.
  • Earlier, certain states have allowed them to supply all goods after MHA's guidelines of allowed goods and services during lockdown 2.0.
  • The clarification from MHA brings small traders and e-commerce companies at a level playing field.

3. Muthoottu Mini Financiers Ltd's branches to be reopened

  • Muthoottu Mini Financiers Ltd's branches will be reopened all over Kerala.
  • On 22 January 2020, Muthoottu Mini Financiers Ltd was in the news for trying to raise Rs 200 crores through public issuance of Non-convertible debenture (NCD).
  • On 26 February 2020, Muthoottu Mini Financiers Ltd was again in news because SEBI had fined it for wrong advertisements of its NCDs as having stable rating by RBI and SEBI.
  • Muthoottu Mini Financiers Ltd is a company that provides gold loans and microfinance.

4. Candidates for appointment as MD and CEO of HDFC Bank finalised

  • The names of candidates for appointment as MD and CEO of HDFC Bank have been finalised by the board of HDFC bank.
  • Any one of the finalised candidates will succeed current MD and CEO, Aditya Puri. He will retire on 26 October, 2020.
  • The names were recommended by the Search Committee and Nomination and Remuneration Committee of the Bank.
  • The bank has also accepted resignations of Sashidhar Jagdishan and Bhavesh Zaveri as Additional Directors on its board.
  • RBI had advised they should be appointed as whole-time Executive Directors after appointment of new MD & CEO.

5. BoM contributes Rs 5 crore to PM-CARES Fund

  • Bank of Maharashtra (BoM) has contributed Rs 5 crore to Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund).
  • BoM is one of few banks nominated by government for collecting contributions to PM-CARES Fund.

 

Multiple Choice Questions (MCQs)

1. Finance Act, 2020 also clarifies that amount of over seven lakh rupees sent from India under Liberalised Remittance Scheme (LRS) of RBI will be subject to tax collected at source (TCS) of 5%. When was LRS started?

  1. 2000
  2. 2004
  3. 2008
  4. 2012
  5. 2016

2. Finance Act, 2020 has decreased rate of TDS on dividends to non-residents under section 195 of Income tax Act from 30% to

  1. 5 %
  2. 10 %
  3. 15 %
  4. 20 %
  5. 25%

3. Which of the following companies was in news for reopening its branches in Kerala?

  1. Muthoottu Mini Financiers Ltd
  2. Bajaj Finance Ltd.
  3. Indiabulls Financiers Ltd 
  4. GIC Finance Ltd
  5. None of the above

4. The names of candidates for appointment as MD and CEO of HDFC Bank has been finalised by board of HDFC bank. Current MD and CEO of HDFC bank, Aditya Puri will retire in

  1. May, 2020
  2. June, 2020
  3. August, 2020
  4. September, 2020
  5. October, 2020

5. Which of the following banks has contributed Rs 5 crore to Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund)?

  1. Bank of Maharashtra (BoM)
  2. Bank of Baroda (BoB)
  3. Canara bank
  4. Punjab and Sindh bank
  5. None of the above

 

Solution:

1. B

2. D

3. A

4. E

5. A

 

0
COMMENTS

Comments

Share Blog


Banking Awareness

Attempt Daily Banking
Awareness Quiz

Attempt Quiz

Half Yearly (Jul- Dec 2023)
2023 Book

Banking Awareness

For IBPS, SBI, SEBI, RBI, State PCS, UPSC Exams

Preview Buy Now
x

Banking Awreness Jul to December 2023