Topic: Regulatory Bodies, Regulators/Financial institutions
1. RBI’s Internal Working Group proposes that large corporates should be allowed to promote banks
- RBI’s Internal Working Group has proposed that large corporates and industrial houses may be allowed to promote banks within a strong legislative framework.
- Reserve Bank Working Group has also recommended an increase in promoter stake from the current 15% to 26% after 15 years of operation.
- The group has also suggested an enabling legislative framework for consolidated supervision of large conglomerates.
- As per the current rules, promoters should reduce their stake to 40% in three years of operation of the bank. Then, they should reduce to 15% in 15 years.
- RBI Central Board Director PK Mohanty chaired the Internal Working Group. It was formed to review existing ownership guidelines and corporate structure for private sector banks.
- Large corporate, industrial or business house refers to the groups with total minimum assets of Rs 5,000 crore and with non-financial business of over 40% of total assets or gross income.
(Source: The Hindu Businessline)
Topic: Infrastructure and Energy
2. MoUs signed with energy companies to set up 900 Compressed biogas (CBG) plants
- MoUs have been signed with energy companies to set up 900 Compressed biogas (CBG) plants.
- The purpose of signing MoUs is to boost availability of affordable and clean transport fuels.
- Petroleum Minister Dharmendra Pradhan said that Rs 2 lakh crore worth investment would be made for setting up 5,000 CBG projects in India.
- BM Group, Adani Gas, Torrent Gas and Petronet LNG are the names of companies who are part of signed agreements.
- IndianOil, Praj Industries, CEID Consultants & Bharat Biogas Energy will provide technology for CBG projects.
- The signing of agreement was under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative.
- SATAT initiative:
- Under the SATAT initiative, 5,000 CBG plants would be set up by 2023-24 with a production target of 15 million metric tonnes.
- SATAT is an initiative of the Ministry of Petroleum & Natural Gas. It was launched in October 2018. It aims to promote Compressed Biogas (CBG) as an alternative, green transport fuel.
- The promotion of CBG as an alternative, green transport fuel under the SATAT initiative is for efficient management of biomass and organic waste.
Topic: Reports and Indices
3. State of Tax Justice Report estimates USD 10.3 billion tax loss to India
- State of Tax Justice Report has estimated USD 10.3 billion (about ₹75,000 crore) tax loss to India due to global tax abuse by MNCs and tax evasion by individuals.
- As per the report, countries worldwide lose more than USD 427 billion in taxes each year due to corporate tax abuse and private tax evasion at the international level.
- Out of the total loss to India, the loss of USD 10 billion is due to tax abuse by MNCs and the loss of USD 200 million is due to tax evasion by private individuals as per the State of Tax Justice Report.
- State of Tax Justice Report also says that India is most vulnerable or exposed to the possibility of illicit financial flows in the form of outward FDI.
- This means the State of Tax Justice Report says that India has the highest possibility of illicit financial flows in the form of outward FDI.
- As per the State of Tax Justice Report, Mauritius, Singapore and the Netherlands as trading partners make Indian vulnerable to illicit financial flows in the form of outward FDI.
- The State of Tax Justice Report also says that costs of tax evasion for all countries are equal in amount to annual salaries of 34 million nurses in a year. The cost is also equal to one nurse’s annual salary every second.
- State of Tax Justice Report:
- Tax Justice Network has published the report in association with the following organizations.
- Global union federation Public Services International
- Global Alliance for Tax Justice
- The report is not about the state of global tax abuse and governments’ efforts to tackle it.
Topic: Infrastructure and Energy
4. Government may change deadline to achieve target of 20% blending of biofuels in petrol
- Government may change the deadline to achieve the target of 20% blending of biofuels in petrol.
- The current deadline for achieving a target of 20% blending of ethanol in petrol is 2030.
- Government is providing loans for establishing distilleries to add ethanol production capacity of 468-crore litre. This would also help sugar mills
- Government also intends to use rice with FCI and maize from states with surplus production of maize to produce ethanol from ethanol supply year (November to December), which is about to start.
- Currently, 320 lakh tonnes (lt) of sugar is produced annually in India and India’s sugar demand is approximately 260 lt. So, India’s sugar production is more than its demand.
5. Indian Oil Corporation Ltd successfully tests ‘zero-emission electric mobility’
- Indian Oil Corporation Ltd has successfully tested ‘zero-emission electric mobility”, which allows the charging of electric vehicles using solar power and ensures zero-emission.
- The concept of zero-emission electric mobility also removes the requirement of upgrades in grid infrastructure and improves grid resilience, particularly in rural areas.
- Zero-emission electric mobility uses hybrid microgrids created by integrating existing grid infrastructure with solar PV batteries.
- Hygge Energy has designed an EV charging system. It is a start-up incubated by Tech Mahindra.
- Indian Oil Corporation Limited is one of the Maharatna public sector company. It is the largest commercial oil company in India. Its headquarters is located in New Delhi.
6. LIC launches Atma Nirbhar Agents NewBusiness Digital Application (ANANDA)
- LIC has launched Atma Nirbhar Agents NewBusiness Digital Application (ANANDA).
- ANANDA is a digital application tool for agents and onboarding process.
- It will help in getting a life insurance policy through a paperless module.
- LIC was formed on 1 September 1956. Its chairperson is M R Kumar.
- LIC is headquartered in Mumbai, India. Its slogan is yogakshemam vahamyaham (Your welfare is our responsibility).