Banking Awareness of 21, 22 and 23 November 2021

Half Yearly (Jan - June 2021)
2021 Book

Banking Awareness

Topic: Banking System

1. SBI dual lists its $650 million green bonds on India INX and Luxembourg Stock Exchange.

  • State Bank of India (SBI) dual listed its $650 million green bonds on India International Exchange (India INX) and Luxembourg Stock Exchange.
  • India INX is the international arm of BSE. It had announced its MoU with Luxembourg Stock Exchange for co-operation in financial services industry.
  • V Balasubramaniam, MD and CEO, India INX, said that dual listing is the first step towards India INX’s association with Luxembourg Stock Exchange.
  • He said that on the occasion of World Investor Week (21-28 November), India INX is focusing on the theme of sustainable finance.
  • Dual listing of green bonds by SBI is an important move towards the goal of sustainable finance.  
  • India INX has now emerged as the leading bond listing venue with over $33 billion dollars listing. Luxembourg has the largest green bond listings in the world.
  • SBI is the first public sector bank in India to publish its sustainability report as per Global Reporting Initiative (GRI) framework.
  • GRI is an international independent standards organization. It is headquartered in Amsterdam, Netherlands.

Topic: Appointments

2. Spandana Sphoorty appoints Shalabh Saxena as its new Managing Director and CEO. 

  • Spandana Sphoorty has appointed Shalabh Saxena as its new Managing Director and CEO.
  • Spandana Sphoorty is India’s second-largest microfinance institution. It has appointed Ashish Damani as the President and Chief Financial Officer.
  • Spandana Sphoorty’s Board has appointed Abanti Mitra as non-executive Chairperson of the Board.
  • Abanti Mitra is an independent director with Spandana since 2011. Shalabh Saxena is currently serving as the MD and CEO of Bharat Financial Inclusion Ltd (BFIL).
  • Deepak Vaidya will continue to serve on the Board as an independent director.

Topic: Taxation

3. Government’s tax collection to surpass budget estimates this financial year.

  • Revenue Secretary Tarun Bajaj said that the government’s tax collection will surpass budget estimates this financial year.
  • Net direct tax collection till October stood at ₹6 lakh crore. Average monthly GST collection is likely around ₹1.15 lakh crore this fiscal.
  • Revenue Secretary said that government should exceed budgeted estimates on both direct and indirect taxes.
  • Government has budgeted a 9.5% growth in tax collections at ₹22.2 lakh crore for the 2021-22 fiscal (April-March).
  • The revenues from direct taxes are estimated to be around ₹11 lakh, including ₹5.47 lakh crore from corporate tax and ₹5.61 lakh crore from income tax.
  • Customs collection in the current fiscal is budgeted at ₹1.36 lakh crore, excise duty at ₹3.35 lakh crore.

Topic: Banking System

4. RBI cautions co-operative societies are not authorised for doing banking business.

  • In an advisory, RBI cautioned that co-operative societies are not authorised for doing banking business.
  • RBI also said that co-operative societies have not been issued any licence under Banking Regulation (BR) Act, 1949.
  • RBI further said that insurance cover from Deposit Insurance and Credit Guarantee Corporation (DICGC) is also not available for deposits placed with these societies.
  • RBI has noticed some co-operative societies are using the word “Bank” in their names in violation of Section 7 of the BR Act, 1949.
  • Section 7 of the BR Act, 1949 says only banking companies can use the words “bank”, “banker” or “banking” in their names.

Topic: Miscellaneous

5. CCPA sends notices to Amazon, Flipkart, Shopclues, Snapdeal and Paytm Mall for sale of defective pressure cookers through their platforms.

  • Central Consumer Protection Authority (CCPA) has sent notices to Amazon, Flipkart, Shopclues, Snapdeal and Paytm Mall for the sale of defective pressure cookers through their platforms.
  • These e-commerce marketplaces allowed listing for sale of pressures cookers that were found to be in violation of the mandatory norms.
  • CCPA has taken suo-motu cognisance of e-commerce entities selling pressure cookers in violation of the Domestic Pressure Cooker (Quality Control) Order 2020.
  • Section 2(10) the Consumer Protection Act, 2019, defines the term defect. CCPA has sought a response from the e-commerce entities within 7 days from the issuance of notice.

Central Consumer Protection Authority (CCPA) was established with effect from 24th July 2020.

The objective of CCPA is to promote, protect and enforce the rights of consumers as a class. It is headquartered in New Delhi.

Topic: Taxation

6. Union Government has notified uniform GST rate at 12% on MMF, MMF yarn, MMF fabrics, and apparel.

  • Union Government has notified uniform GST rate at 12% on Man-Made Fibre (MMF), MMF yarn, MMF fabrics, and apparel.
  • The uniform GST rates will come into effect from 1st January of next year.
  • The textiles and apparel industry has for a long time demanded the removal of inverted tax structure on the MMF value chain.
  • The GST on MMF, MMF yarn and MMF fabrics were 18%, 12% and 5% respectively.
  • Textiles Ministry has said that a uniform rate of 12 percent for the entire value chain of MMF textiles sector will reduce the compliance burden of the industry players.

 

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