Banking, Financial and Economic Awareness

Main Headlines:

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.

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.

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 22^nd 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.

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.

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.

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 1^st 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.

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.