Banking, Financial and Economic Awareness

Topic: Reports and indices

1. India remains at 43rd rank on IMD's World Competitiveness Index.

  • India has remained at 43rd rank on World Competitiveness Index compiled by Institute for Management Development (IMD).
  • World Competitiveness Index examined the impact of Covid-19 on economies all over the world this year.
  • Switzerland has achieved the first rank on the 64-nation list. Sweden improved its rank from sixth last year to second this year.
  • Denmark is ranked at third. The Netherlands retained its fourth rank. Singapore’s rank declined from first in 2020 to fifth place this year.
  • Taiwan moved up from 11th rank last year and reached in top-10 for the first time since the ranking began 33 years ago.
  • Among BRICS nations, India’s rank is second after China followed by Russia, Brazil and South Africa.
  • IMD World Competitiveness Center produces ranking annually. The ranking measures competitiveness of 64 nations with the help of four factors given below:
    • Economic performance
    • Government efficiency
    • Business efficiency
    • Infrastructure
  • 64 economies are ranked in IMD World Competitiveness Ranking. The ranking assesses the extent to which a country promotes the prosperity of its people.

Topic: Banking System

2. RBI grants in principle approval to Centrum Financial Services to set up small finance bank.

  • RBI has granted in principle approval to Centrum Financial Services to set up small finance bank (SFB).
  • The small financial bank will be jointly owned by Centrum Financial Services Ltd (CFSL) and BharatPe.
  • The SFB will rescue scam-hit Punjab and Maharashtra Co-operative Bank (PMC).
  • The SFB will be operationalized by the Centrum in 120 days. Then, RBI will bring out a draft scheme of amalgamation of PMC Bank with Centrum SFB.
  • BharatPe will hold 50 % in the newly-created SFB. Government sanction for the scheme will be the last step.
  • As per Jaspal Bindra, Executive Chairman, Centrum Group, CFSL and BharatPe will commit Rs 900 crore to the SFB in the first year.
  • Rs 200 crore is the minimum paid-up net worth requirement for starting an SFB.
  • By taking over PMC Bank, CFSL will get a ready-made branch network of about 100 branches in Mumbai and in a few States.
  • RBI has granted in-principle approval under general “Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector” dated December 5, 2019.

Topic: Appointments

3. Montek Singh Ahluwalia named as a member of high-level Advisory Group formed by World Bank and IMF.

  • Former Deputy Chairman of the Planning Commission Montek Singh Ahluwalia was named as a member of high-level Advisory Group formed by World Bank and IMF.
  • The group will be jointly led by Mari Pangestu, Ceyla Pazarbasioglu and Lord Nicholas Stern.
  • Mari Pangestu is Managing Director for Development Policy and Partnerships, World Bank.
  • Ceyla Pazarbasioglu is Director, Strategy, Policy and Review Department, International Monetary Fund.
  • The group will also include Gita Gopinath. Gita Gopinath is an Economic Counsellor and Director of the Research Department at the IMF.
  • The group was formed by the World Bank and IMF in the face of the dual crisis posed by the Covid-19 pandemic and climate change.

Montek Singh Ahluwalia named as a member of high-level Advisory Group formed by World Bank and IMF

Topic: Banking System

4. LIC Card Services launches Shagun gift card with IDBI Bank.

  • LIC Card Services has launched Shagun gift card with IDBI Bank.
  • Shagun gift card is a contactless prepaid gift card on the RuPay platform.
  • As of now, the card has been launched only for the internal use of LIC and its subsidiaries and associates. Later, it will also be launched for the public.
  • IDBI Bank:
    • It was set up in 1964.
    • It is headquartered in Mumbai.
    • Its CEO is Rakesh Sharma.

Topic: Corporates/Companies

5. PayPoint India signs pact with 12 financial institutions for lending services.

  • PayPoint India has signed a pact with 12 financial institutions for lending services.
  • The company has signed ‘lead generation agreements’ with Punjab National Bank, ICICI Bank, Deutsche Bank and NBFCs such as Bajaj Housing, Piramal Housing and Hero Fincorp.
  • The company would also introduce an investment related Systematic Investment Plan and inter-operable wallets.
  • PayPoint India is a Mumbai-based company. It started up in 2008. It has a technology-enabled distribution network of financial services.

Topic: Corporates/Companies

6. Indian online grocery delivery service, Grofers’ co-founder Saurabh Kumar quits.

  • Indian online grocery delivery service, Grofers’ co-founder Saurabh Kumar has quitted the company.
  • He remained associated with the company for eight-long years.
  • Albinder Dhindsa announced Saurabh’s exit on Friday. Albinder Dhindsa is another founder of Grofers.
  • Saurabh Kumar will continue to be a board member and a shareholder at the company.
  • Grofers was founded in December 2013. It is based in Gurgaon.

Topic: Regulatory bodies/Financial Institutions

7. PFRDA enables individuals to work as distributor of pension products.

  • Pension Fund Regulatory and Development Authority (PFRDA) has enabled individuals to work as a distributor of pension products by bringing changes in PoP regulations.
  • Before this, only institutions were given the licenses for distribution and entities such as banks, NBFCs and certain non-bank entities categorised as points-of-presence (PoP) were allowed to work as distributors.
  • PFRDA Chairman Supratim Bandyopadhyay said that individuals will be recruited as sub-entities and they will be allowed as distributors of pension products.
  • Pension Fund Regulatory and Development Authority (PFRDA) was established in October 2003. Its Chairman is Supratim Bandyopadhyay. Its head office is in New Delhi.

Topic: Appointments

8. Three senior executives - Rahul Mithal, Santosh Kumar Jha and Anuj Kumar to leave Container Corporation of India Ltd (Concor).

  • Rahul Mithal, Santosh Kumar Jha and Anuj Kumar are three senior executives who will leave Container Corporation of India Ltd (Concor).
  • Rahul Mithal is likely to be the next Chairman and Managing Director of RITES Ltd, which is an engineering consultancy in the transport infrastructure sector and a public sector undertaking controlled by the Ministry of Railways.
  • Public Enterprises Selection Board (PESB) has selected Santosh Kumar Jha for the role of director (operations and commercial) at Konkan Railway Corporation Ltd.
  • Public Enterprises Selection Board (PESB) has selected Anuj Kumar as the next director (finance) of Central Warehousing Corporation Ltd.
  • Government has taken a decision to privatize Concor by divesting 30.8% of its 54.8% stake to a private firm.
  • Container Corporation of India Ltd (Concor) is a subsidiary of Indian Railways. V. Kalyana Rama is its Chairman & Managing Director.

 

 

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