Banking Awareness of 20 and 21 September 2024

Topic: Committees/Commissions/Taskforces

1. A high-level committee has been formed by the Petroleum and Natural Gas Regulatory Board (PNGRB).

• The committee has been formed to promote level playing field and competition in gas transmission and distribution businesses.
• The committee is chaired by former SEBI chairman Ajay Tyagi. The committee will give its report by December 10, 2024. 
• A K Purwaha, the former CMD of Engineers India, and Shaleen Sharma, the former MD and president of BG India, are two of the eight members of the committee.
• The committee's objectives are to evaluate the current state of affairs in India and examine international patterns pertaining to the division of marketing and transportation activities, including pipeline ownership in the natural gas industry.
• The committee will offer practical suggestions for updating the City Gas Distribution (CGD) industry's exclusivity framework.
• The committee will make recommendations for actions to resolve legal issues and guarantee a fair and competitive market.
• Petroleum and Natural Gas Regulatory Board (PNGRB):
  • It was formed in 2006. Anil Kumar Jain is its current chairperson. It is headquartered in New Delhi.
  • Its main functions are regulation of refining, transportation, distribution, marketing, storage, supply and sale of natural gas and petroleum products.

Topic: Banking/Financial/Govt Schemes

2. The Vivad se Viswas Scheme 2024 for direct taxation will commence operations from October 1st, 2024.

• The scheme seeks to enable taxpayers to resolve pending appeals, writs, and petitions before various appellate authorities, including the Supreme Court and High Courts, as of July 22, 2024.

• The scheme seeks to eliminate income tax litigation. As of now, no last date has been announced for the scheme.
• This will be the 2nd edition of the Direct Tax Vivad se Viswas scheme (VSV 2.0).
• The scheme to lower income tax-related litigations was announced in the budget.
• The Central Board of Direct Taxes has made an effort to ensure that appeals by appellate authority under its administrative jurisdiction are resolved quickly.
• The Direct Tax Vivaad Se Vishwas Act, 2020 (VSV 1.0) was one such measure that was introduced for appeals that were still pending as of January 31, 2020.

Topic: Reports and Indices

3. Kerala secured first spot in the 2024 State Food Safety Index (SFSI).

• Kerala, Tamil Nadu, and Jammu & Kashmir are the top 3 performers on the State Food Safety Index 2024.
• State Food Safety Index (SFSI) has been released by the Food Safety and Standards Authority of India (FSSAI).
• Gujarat and Nagaland got special mentions and acknowledgement in the State Food Safety Index.
• The report has been unveiled at the inaugural session of the Global Food Safety Regulators Summit.
• FSSAI noted that Kerala has achieved more than 100 per cent of its inspection target in FY24.
• The index evaluates state and union territories on five parameters: Human Resources and Institutional Data, Compliance, Food Testing-Infrastructure and Surveillance, Training and Capacity Building, and Consumer Empowerment.
• This Index was created in 2018-19 to create a competitive and positive change in the food safety ecosystem in the country.
• FSSAI has also launched the Food Import Rejection Alerts (FIRA).
• It is an online portal to notify the public and relevant food safety authorities about food import rejections at Indian borders.

Topic: Miscellaneous

4. Financial Action Task Force (FATF) has placed India in “regular follow-up” category.

• This is the highest category by FATF, which urged India to accelerate prosecutions in financial fraud cases.
• India has joined a group of only four G20 nations with a “regular follow-up” rating from FATF, which has 40 member countries.
• India’s mutual evaluation report on combating terror financing and money laundering was adopted by FATF in June.
• The report has now been officially released on 19 September 2024.
• As per the report, India has implemented an effective anti-money laundering and combating terror financing system.
• However, major improvements are required to strengthen prosecutions in money-laundering and terror financing cases.
• FATF has rated India as moderately effective on parameter of money laundering investigation and prosecution. It said India was compliant in most areas.
• FATF places member countries in any of the four categories.
• These four categories are named as ‘regular follow-up’, ‘enhanced follow-up’, ‘grey list’ and ‘black list’.
• Regular follow up is the top most category amongst four.
• Financial Action Task Force (FATF):
  • It was formed in 1989. It is headquartered in Paris.
  • Its duties include monitoring of money laundering and terrorism financing.
  • It also monitors measures adopted by countries to prevent money laundering and terrorism financing.

Topic: Appointments

5. The re-appointment of V Vaidyanathan as IDFC First Bank MD has been approved by RBI.

• RBI has approved his re-appointment for 3 years effective from December 19, 2024, to December 18, 2027.
• In 2012, Vaidyanathan founded Capital First after working for Citibank and ICICI Bank.
• He became the MD and CEO of the combined company in 2018 after merging Capital First with IDFC Bank, which was then renamed IDFC FIRST Bank.
• IDFC First Bank is an Indian private-sector bank. It was founded in 2015. It is headquartered in Mumbai.

Topic: RBI

6. RBI removed restriction on gold loan business of IIFL Finance.

• RBI on September 19 permitted non-banking finance company (NBFC) IIFL Finance to offer gold loans.
• RBI had barred IIFL Finance from the same in March this year due to serious violation of norms. The restrictions were imposed on March 4, 2024.
• Because of "serious deviations" in the assaying and certification of the purity and net weight of the gold when approving loans, the RBI had taken action against IIFL Finance.
• The RBI discovered violations in the loan-to-value (LTV) ratio stipulated in the gold loan and discovered that the NBFC was disbursing and receiving a sizable sum in cash.
• IIFL Finance fully prohibited cash disbursements of more than ₹20,000 for gold loans after he RBI directive.
• It also established an internal system to guarantee that the loan-to-value ratio for gold stays below 75%.
• IIFL Finance is an Indian financial services company based in Mumbai.

Topic: Banking/Financial/Govt Schemes

7. The continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) scheme has been approved by the Union Cabinet.

• The Union Cabinet allocated Rs. 35,000 crore for it till the 15th Finance Commission Cycle up to 2025-26.
• This decision aims to control price volatility of necessary commodities for consumers and to guarantee farmers receive fair prices.
• To increase its efficacy, the Price Support Scheme (PSS) and Price Stabilisation Fund (PSF) are combined into one program, the PM-AASHA scheme.
• The Price Support program (PSS), Price Stabilisation Fund (PSF), Price Deficit Payment Scheme (PDPS), and Market Intervention Scheme (MIS) will now be a part of the integrated program.
• The purchase of copra, oilseeds, and notified pulses at the Minimum Support Price (MSP) will account for 25% of the country's output beginning in the 2024–2025 growing season.
• This change aims to increase the amount of these crops purchased at MSP.
• For the 2024–2025 season, the government intends to purchase all of Tur, Urad, and Masur, therefore the procurement ceiling will not apply to them.
• Additionally, the government has raised to Rs. 45,000 crore its guarantee for the purchase of oilseeds, copra, and pulses.
• With an extended implementation period of four months, the Price Deficit Payment Scheme (PDPS) coverage for recognised oilseeds has been enhanced from 25% to 40% of state production in an effort to further support farmers.
• Farmers would get compensation under the system for the gap between MSP and market price and up to 15% of MSP will be covered by the central government.

Topic: Corporates/Companies

8. HCLTech has become number one India-headquartered Company in World's Best Companies 2024 list of TIME magazine.

• HCLTech has also achieved a place in the global top 10 list within the Professional Services category.
• In the World's Best Companies 2024 ranking, top-performing companies across the globe are identified.
• The companies are identified on the parameters of employee satisfaction, revenue growth, and sustainability.
• The ranking includes 1000 companies worldwide. It features 22 Indian-born companies this year.
• HCLTech has secured the 112th position globally. Infosys and Wipro are ranked at 119th and 134th respectively.
• The Adani Group and Mukesh Ambani-led Reliance Industries stands at 736th and 646 place, respectively.
• In the banking sector, Axis Bank is leading at 504th place. State Bank of India (SBI) follows at 518th.

Read Banking Awareness PDF -20 and 21 September 2024