Banking, Financial and Economic Awareness of 18 and 19 June 2021

Topic: Reports and indices

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

• India has remained at 43^rd 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.

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.

Read Banking Awareness PDF -18 and 19 June 2021