Banking, Financial and Economic Awareness of 19 and 20 May 2020

By PendulumEdu | Last Modified: 31 May 2020 19:04 PM IST
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1. Government decides to revise classification criteria for medium enterprises

  • Government has decided to revise classification criteria for medium enterprises.
  • As per the government’s decision, the investment limit will be increased to Rs 50 crore and turnover limit to Rs 200 crore.
  • Earlier, government has revised definition of MSMEs. Before the revision, investment limit for medium category was up to Rs 10 crore and turnover limit for medium category was Rs 5 crore.

(Source: The Hindu)

  • Government is also open for increasing turnover limit to Rs 250 crore for the category of medium enterprises.
  • Currently, MSMEs contribute 48% to India’s exports and 29% to India’s GDP.
  • Government has planned to increase contribution to exports to 60% and to India’s GDP to 50%.

2. India begins to buy Malaysian palm oil again

  • India has begun to buy Malaysian palm oil again after a pause of four months.
  • The decrease in India’s domestic inventories is the reason why India has begun to buy Malaysian palm oil again.
  • During January to April 2020, India’s import of palm oil has declined by over 50%.
  • Indonesia has increased levy on palm oil export. But, Malaysia is offering a discount of 15 dollars.

(Source: The Financial Express)

  • The discounted price of Malaysian palm oil is another reason why India has begun to buy Malaysian palm oil again.
  • Last week, Malaysian government has signed an agreement for purchasing 1 lakh tonnes of Indian rice.
  • Indonesia and Malaysia occupy 1st and 2nd place in the list of world’s largest producers of palm oil.
  • India is largest edible oil importer of the world. India purchases about two third of its imports of total edible oil.

3. Canara Bank starts gold loan business vertical

  • Canara bank has started special gold loan business vertical.
  • Canara Bank’s gold loan products are aimed at providing faster credit to customers at low interest cost.

  • The special gold loan campaign will continue till 30 June. The turnaround time for gold loan product is low and flexibility of loan repayment is high.
  • Turnaround time is defined as the time between loan application and loan disbursal.

4. Central trade unions move ILO against changes in labour laws

  • Central trade unions have moved International Labour Organisation against changes in labour laws by 13 state governments.
  • While addressing their complaint to Guy Ryder, DG of ILO, the labour unions said that changes in labour laws violate ILO conventions such as Convention 144 on tripartite consultation.

(Source: UN website)

  • Various state governments have granted exemptions to all business organizations from obligations (responsibilities) of employer under all labour laws for 3 years.
  • Eight states have increased working hours from 8 to 12 hours through executive order.
  • In addition to 144th convention of 1976, labour unions have also talked about following other conventions.
    • Freedom of Association and Protection of the Right to Organise Convention, 1948
    • Right to Organise and Collective Bargaining Convention, 1949
    • Consultation (Industrial and National Levels) Recommendation, 1960

5. Patanjali launches e-commerce app

  • Patanjali has launched e-commerce app, called OrderMe.
  • The app was launched last week and this week, the app achieved 10,000 daily transactions.
  • The app is based on the word OM (OrderMe). The products of other FMCG companies and goods of neighbourhood shops may also be included.

(Source: The Financial Express)

  • Amazon, Flipkart, Bigbasket and JioMart will be competitors of this app.
  • As per the research agencies, India's e-commerce market will reach from $24 billion in 2017 to $84 billion in 2021.
  • India's overall retail market will grow from $795 billion in 2017 to $1.2 trillion by 2021. 

6. NAA confirms profiteering allegations against a product of Park Avenue

  • National Anti-Profiteering Authority (NAA) has confirmed profiteering allegations against a product of Park Avenue.
  • The name of the Park Avenue product is After Shave Lotion Park Avenue Good Morning. It is a product of Raymond Group's J K Helene Curtis Ltd.
  • As per the decision of NAA, RS 19 crore will be deposited within 3 months by the company and its one distributor.
  • The amount will be deposited with the Consumer Welfare Fund (CWF).
  • The company was accused of increasing base prices, not changing the MRP and not passing GST rate cut benefits to the consumer.  
  • NAA was formed under section 171 of the Central GST Act, 2017. It is a statutory body. It consists of a Chairman and four technical members. Its current chairman is B.N. Sharma.
  • Consumer Welfare Fund (CWF) was created under section 57 of the CGST Act, 2017. Its aim is to make India’s consumer advocacy movement strong.




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