Banking, Financial and Economic Awareness of 20 and 21 August 2021

Topic: Regulatory Bodies/Financial Institutions

1. Corporate Affairs Ministry exempts CAs, CS and advocates with over 10 years experience from online proficiency tests.

• Corporate Affairs Ministry (MCA) has exempted chartered accountants (CAs), company secretaries (CS) and advocates with over 10 years experience from online proficiency tests.
• CAs, CS and advocates with over 10 years experience have been exempted from taking online proficiency self-assessment tests in order to get into or retain their Board positions as independent directors in companies.
• In October 2019, MCA had made the online proficiency self-assessment test conducted by the Indian Institute of Corporate Affairs (IICA) mandatory for independent directors if they want to get into or retain their Board positions.
• After MCA’s new framework, candidates had to satisfy two main criteria to become independent directors.
• They should find a place in IICA maintained databank and pass the online proficiency test within two years from the day they get into the databank.

Topic: Committees/ Commissions/Taskforces

2. Government forms a Committee for doubling the production and quadrupling exports of handlooms in three years.

• Government has formed a Committee for doubling the production and quadrupling the exports of handlooms in three years.
• Sh. Sunil Sethi, Chairman of Fashion Design Council of India (FDCI), New Delhi, is the head of this committee.
• Dr. Sudha Dhingra, Ms. Shefali Vaidya, Ms. Anagha Gaisas, Sh. Suket Dhir, Sh. Sunil Alagh, Dr. K.N. Prabhu and Sh. Hetal R. Mehta are members of the committee.
• The committee has to submit its final report within 45 days from the day of its formation.
• The committee will suggest a strategy and policy framework for doubling the production and improving the quality of handloom products with the aim of enhancing the income of weavers.
• It will also suggest ways for improving the marketing of handloom products in the domestic market.

Topic: Infrastructure and Energy

3. Seventeen new islanding schemes planned for major cities.

• As per the Power Ministry, seventeen new islanding schemes have been planned for major cities.
• 26 schemes are already under implementation. All the existing and planned islanding schemes were reviewed by Power Secretary.
• In the review meeting, Central Electricity Authority (CEA) informed that it has advised all the State Load Dispatch Centres (SLDCs) to set up a separate display of islanding scheme.
• Islanding schemes form a defence mechanism for the power system. Under the schemes, a part of the system is islanded from a disturbed grid.
• This islanded sub-part can survive in isolation from the rest of grid and supply to the essential load in this area is maintained.
• Central Electricity Authority (CEA) is a statutory organization. It was founded in 1951. It is headquartered in New Delhi. 

Topic: Appointments

4. Shanti Lal Jain appointed as Managing Director (MD) and Chief Executive Officer (CEO) of Indian Bank.

• Shanti Lal Jain has been appointed as Managing Director (MD) and Chief Executive Officer (CEO) of Indian Bank.
• Appointments Committee of the Cabinet has given approval to the proposal of the Department of Financial Services for the appointment of Shanti Lal Jain as MD and CEO of Indian Bank for a period of 3 years effective from the date of assumption of office on or after September 1, 2021.
• Shanti Lal Jain is currently Executive Director (ED), Bank of Baroda. His appointment is extendable by up to two years or till attaining the age of superannuation.
• Indian Bank was founded in 1907. Its headquarters are in Chennai. From 1 April 2020, Allahabad bank has been merged with Indian Bank.

Topic: Appointments

5. Central government appoints Lalit Kumar Chandel as its nominee Director on Bank of Maharashtra’s board.

• Central government has appointed Lalit Kumar Chandel as its nominee Director on Bank of Maharashtra’s board effective from August 18, 2021.
• He is currently posted as Economic Adviser, Department of Financial Services, Ministry of Finance.  
• He has also served as Director (Government Nominee) on the boards of National Insurance Company Ltd and others.
• Bank of Maharashtra is headquartered in Pune. Its CEO is A. S. Rajeev.

Topic: Indian Economy

6. NABFID brought under purview of Department of Financial Services.

• National Bank for Financing Infrastructure and Development (NABFID) has been brought under the purview of the Department of Financial Services in Finance Ministry.
• In March, Parliament enacted National Bank for Financing Infrastructure and Development Act. A new development financial institution will be set up as a result of this.
• It will have both developmental and financial objectives, which would include developing a deep and liquid bond market of international standards for long-term infrastructure financing in India.
• As per the act, debt securities issued by the Institution should be regarded as eligible for purposes such as approved investments, securities, etc.
• As per the act, the Institution may be involved in project structuring, monitoring and monetization of completed projects by itself or through its subsidiaries.

Topic: Appointments

7. N K Singh elected as President of Institute of Economic Growth.

• N K Singh, chairman of 15^th Finance Commission, has been elected as the President of the Institute of Economic Growth (IEG) Society.
• He has taken place of former Prime Minister Dr. Manmohan Singh who has been in the position since 1992.
• Dr. Manmohan Singh had recommended N K Singh's name in the IEG’s General Assembly.
• Agriculture and rural development, environment and resource economics, globalization and trade, industry, labor, and welfare are the main areas of the Institute of Economic Growth's research.

Topic: Banking System

8. Ujjivan Small Finance Bank’s Board scheduled to meet on August 25 to appoint an Officer on Special Duty (OSD).

• Ujjivan Small Finance Bank’s Board is scheduled to meet on August 25 to appoint an Officer on Special Duty (OSD).
• Managing Director and CEO of Ujjivan Small Finance Bank, Nitin Chugh has resigned recently due to personal reasons. His resignation will be effective with effect from September 30, 2021.
• Four new members on the board will be inducted through the meeting on August 25.
• The bank has seen many board-level resignations in recent months. Its Chief Financial Officer has also resigned on July 7.

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