Banking, Financial and Economic Awareness

2020-06-22

1. AEPC requests for removal of ban on PPE exports

  • Apparel Export Promotion Council (AEPC) has requested government for removal of ban on Personal Protective Equipment (PPE) exports.
  • AEPC wants the removal of ban as the production of PPE kits in India has increased to 8 lakh kits per day.
  • The export of PPEs offers opportunities for export as global market for PPEs will grow in next five years.
  • Other countries such as Bangladesh, Indonesia, and Pakistan have already removed the ban.
  • Apparel Export Promotion Council (AEPC):
    • It was formed in 1978.
    • Its head office is located in Gurgaon.
    • Its aim is to support export of readymade garments of all types.

2. Draft Pension Fund (Foreign Investment) Rules, 2020 released

  • Department of Financial Services (DFS) has released Draft Pension Fund (Foreign Investment) Rules, 2020 to limit foreign investments in pension funds at 49%.
  • As per the draft rules, total foreign investment (direct and indirect) in an Indian pension fund will have 49% limit.
  • Currently, PFRDA Act, 2013 limits FDI in pension funds at higher of 26% limit or the limit given under Insurance act (now 49%).
  • PFRDA Act does not provide the way for calculations of direct and indirect investment. The draft rules provide that PFRDA will frame regulations for calculation of direct and indirect investment.
  • Pension Fund Regulatory and Development Authority (PFRDA) governs foreign investment in pension funds.
  • The increased limit will not be available for investments from neighbouring countries, which include China.
  • The draft rules allow only resident Indian entities to have ownership and control of all pension funds in India.

3. ESAF SFB's MD and CEO becomes Sa-Dhan's Chairman

  • K Paul Thomas, who is the MD and CEO of ESAF Small Finance Bank, has become Sa-Dhan's Chairman.
  • His name was announced at Sa-Dhan's 22nd annual general meeting.
  • Sa-Dhan is a self-regulatory association for non-banking financial companies (NBFCs) and microfinance institutions (MFIs).
  • It is recognized by RBI. It received self-regulatory organization status by RBI in 2015.

4. Favipiravir to be sold for COVID-19

  • Glenmark's Favipiravir, which Drug Controller General of India (DCGI) has approved for restricted emergency use will be available at chemists and hospitals.
  • Glenmark, an Indian pharmaceutical company markets Favipiravir as FabiFlu.
  • Favipiravir or FabiFlu is an antiviral drug, which has shown successful results in treatment of COVID-19 patients.
  • It is being tried in 150 patients at 11 sites in India. The result of trial has not been published till now.
  • Glenmark will also try two anti-viral drugs in combination. They are Favipiravir and Umifenovir.
  • Drug Controller General of India (DCGI):
    • It is a part of Central Drugs Standard Control Organization.
    • It is under Ministry of Health & Family Welfare.
    • It approves licenses of different classes of drugs.
    • DCGI is also head of the CDSCO. VG Somani is current DCGI.

5. COVID-19 Active Response and Expenditure Support Programme signed between India and AIIB

  • COVID-19 Active Response and Expenditure Support Programme signed between central government and AIIB.
  • The programme involves 750 million US dollars and is aimed at helping India in strengthening response to negative impacts of COVID-19.
  • This is the first budgetary support programme that AIIB has signed with Indian government.
  • Earlier, 500 million dollar loan was approved by AIIB under COVID-19 Emergency Response and Health Systems Preparedness Project.
  • Asian Infrastructure Investment Bank (AIIB):
    • It was started in January 2016.
    • It has 102 members.
    • It is headquartered in Beijing, China.

6. SIDBI to be implementation agency for PM SVANidhi

  • As per the MoU signed between Ministry of Housing and Urban Affairs (MoHUA) and SIDBI, SIDBI will be implementation agency for PM SVANidhi.
  • PM SVANidhi or PM Street Vendor’s AtmaNirbhar Nidhi was by launched by MoHUA on 1st June, 2020.
  • PM SVANidhi aims to provide working capital loan of maximum 10,000 rupees to more than 50 lakh street vendors.
  • The loan should be repaid in monthly instalments in one year.
  • Credit guarantee to lending institutions will be managed by SIDBI through Credit Guarantee Fund Trust for Micro and Small Enterprises.
  • Credit Guarantee Fund Trust for Micro and Small Enterprises:
    • It was formed by Ministry of Micro, Small and Medium Enterprises and SIDBI.
    • It was formed to implement Credit Guarantee Fund Scheme for Micro and Small Enterprises.

7. Chhattisgarh asks government to not auction certain coal blocks

  • Chhattisgarh has asked government that it should not auction coal blocks located in area of Hasdeo and Mand rivers and a proposed elephant reserve due to environmental reasons.
  • The regions include four coal blocks. They are Mogra South, Mogra II, Sayang and Madanpur North.
  • The name of elephant reserve mentioned by Chhattisgarh is Lemru Elephant Reserve.
  • The areas mentioned by Chhattisgarh have dense forests and settlement of tribes displaced by Bango dam on Hasdeo River.
  • The areas also fall in the no go zone for coal mining as per the 2009 classification by environment ministry.
  • Jharkhand also do not want auction of it’s certain reserves and has gone to Supreme Court due to the need for social and environmental impact assessment of mining.
  • India imported 235.24 million tonnes of coal in FY19.

 

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