Banking, Financial and Economic Awareness of 19 December 2019

1. Service to buy corporate fixed deposits online launched

• It has been launched by JM Financial Services Ltd to help registered Independent Financial Distributors (IFD) in buying corporate fixed deposits online.
• JM Financial Services Ltd also offers Initial Public Offering (IPO) and mutual funds distributor platform.
• JM Financial Services Ltd is a financial services branch of JM Financial Group.

2. Kathrin Frauscher appointed as MD & CEO of BMW Financial Services India

• Kathrin Frauscher has been appointed as MD & CEO of BMW Financial Services India.
• Before Kathrin Frauscher, Andre Van Rheenen was MD & CEO of BMW Financial Services India.
• BMW Financial Services India is a 100 % subsidiary of German automobile manufacturer BMW Group.

3. Rs 1,747 cr raised by Bank of Baroda

• The bank has raised Rs 1,747 cr by supplying Basel III compliant additional tier I bonds.
• The bonds were issued on a private placement or non-public basis.
• Basel III norms:
  • Basel III norms require banks to make their capital planning process better and strong.
  • Since April 1, 2013, Basel III norms are being implemented in phases by Indian banks.
  • They will be fully implemented by March 2020.

4. GST council votes in favour of the uniform tax rate for lottery

• At its 38^th meeting, the GST council voted in favour of a uniform tax rate of 28% for lottery.
• The uniform tax rate will be imposed on both state-run and state-authorized (private) lottery from March 1, 2020.
• The council also changed the last date to file annual returns (GSTR-9 & GSTR-9C) for 2017-18 from current December 31, 2019 to January 31, 2020.
• The council fixed input tax credit benefits at 10% and waived late fees for filing of GSTR1.
• Till its 38^th meeting, the council had taken all decisions by consensus. The decision on a uniform lottery tax was taken on the basis of voting at the request of Kerala.
• Voting rules of the GST council say that every decision requires a majority of not less than three-fourth of the weighted vote of the members present.
• The votes of the central government and all state governments carry a weightage of one-third and two-thirds of the total number of votes cast.
• GST council:
  • It is a constitutional body under Article 279 A of the Constitution.
  • Currently, it has 33 members and the Union Finance Minister is its chairman.
  • Union State Minister of Revenue or Finance is also a member of the GST council.
  • Ministers in-charge of Finance or Taxation of all the States are also its members.
  • Its mandate is to recommend on important issues related to GST.

5. Cyrus Pallonji Mistry may be restored as Executive Chairman of Tata Sons within four weeks

• NCLAT has reversed a July 2017 order of NCLT, and Cyrus Mistry may be restored as Executive Chairman of Tata Sons if Tata Group will not challenge NCLAT decision before Supreme Court within four weeks.
• Mistry will also return to his former position of director of the Tata group and its three subsidiaries.
• On October 24, 2016, the Tata Sons board had removed Mistry. He was replaced by N Chandrasekaran.
• National Company Law Appellate Tribunal (NCLAT):
  • It was formed in 2016 under Section 410 of the Companies Act, 2013.
  • It hears appeals against National Company Law Tribunal (NCLT) orders passed under Insolvency and Bankruptcy Code.
  • It also hears appeals against orders of Insolvency and Bankruptcy Board of India and the Competition Commission of India (CCI).
  • Chairperson: Shri S.J. Mukhopadhaya