Banking, Financial and Economic Awareness of 21 and 22 April 2020

1. Facebook signs agreement for investing in Jio platforms of Reliance

• Facebook has signed agreement for investing Rs 43,574 crore in Jio Platforms of Reliance.
• The agreement will provide Facebook 9.99% equity in Jio Platforms.
• Jio Platforms is a subsidiary of Reliance Industries Limited. Reliance industries Limited wholly own it.
• It was started three years ago and has now become one of the top listed companies in India on the basis of market capitalization.
• A commercial partnership agreement has also been signed by Jio Platforms, Reliance Retail Limited and WhatsApp.
• This involves promotion of new commerce business of Reliance retail on JioMart platform with the help of WhatsApp.
• Facebook owns WhatsApp. It was started in 2009. Facebook acquired it in January 2014. It was started by Brian Acton and Jan Koum.

2. Crash in prices of WTI grade crude oil will not affect Indian oil sector 

• The crash in prices of West Texas Intermediate (WTI) grade crude oil will not affect Indian oil sector.
• On 20 March 2020, the prices of WTI grade crude oil have decreased to minus $37.63 a barrel.
• The crash will affect companies involved in exploration and production of oil.
• The marketing margins of Indian oil marketing companies are already high and will improve further.
• WTI grade crude oil is used as a standard of oil prices in US market.
• It is also called as Texas light sweet. It has low density (light) and low sulphur content (sweet).

3. Draft Electricity (Amendment) Bill, 2020 to prevent cross-subsidies

• Draft Electricity (Amendment) Bill, 2020 contains provision for preventing states from cross-subsidising power to residential consumers.
• Currently, prices of power are higher for industrial consumers than the prices for residential consumers.
• In some states, agricultural consumers get power free of cost.
• New bill may discontinue with different prices for different consumers. But, load-based differences in prices will not be discontinued to prevent small consumers from paying higher prices.
• The draft bill will amend Electricity Act of 2003.
• It proposes for Electricity Contract Enforcement Authority (ECEA) for resolving disputes between power generation and distribution companies.
• ECEA may replace current Electricity Regulatory Commissions.
• ECEA's decisions can be taken to Appellate Tribunal for Electricity (APTEL) and Supreme Court.
• The bill also proposes to start sub-licensing and further privatise operations of Discoms.

4. Health insurance premiums can be paid in installments

• As per IRDAI's order, health insurance premiums can be paid in installments.
• Due to COVID-19, IRDAI has given permission to all insurers for collection of health insurance premiums in installments. 
• The installment facility on health insurance premiums is allowed on permanent or temporary basis for one policy year with respect to policies having renewal date up to 31 March, 2021.

5. PPBL collects over Rs 1000 crore in deposits

• Paytm Payments Bank Ltd (PPBL) has collected over Rs 1000 crore in deposits.
• PPBL has recently added option of direct benefit transfer of subsidies and welfare schemes into account of beneficiaries.
• PPBL bank is having a debit card holder in all districts of India.
• In 2014, RBI issued guidelines for formation of payments banks in India.
• Payment banks were recommended by Nachiket Mor committee on comprehensive financial services for small businesses and low income households in 2014.
• Currently, payment banks can accept maximum Rs 1 lakh per customer. They are not allowed to give loans and issue credit cards.
• Vijay Shekhar Sharma is chairman of PPBL. Satish Kumar Gupta is its CEO and MD.

Multiple Choice Questions (MCQs)

1. Which of the following has signed an agreement for investing Rs 43,574 crore in Jio Platforms of Reliance?

1. Twitter
2. Flipkart
3. Facebook
4. Amazon
5. Microsoft

2. On 20 March 2020, the prices of West Texas Intermediate (WTI) grade crude oil have decreased to minus $37.63 a barrel. WTI is also referred to as

1. Texas light
2. Texas heavy
3. Texas sweet
4. Texas heavy sweet
5. Texas light sweet

3.  Draft Electricity (Amendment) Bill, 2020 aims to amend

1. Electricity Act of 1996
2. Electricity Act of 2003
3. Electricity Act of 2006
4. Electricity Act of 2008
5. Electricity Act of 2010

4. As per IRDAI's order, health insurance premiums can be paid in installments on permanent or temporary basis for

1. Two months
2. Three months
3. Six months
4. Nine months
5. One year

5. Which of the following has recently collected over Rs 1000 crore in deposits?

1. Paytm Payments Bank
2. Fino Payments Bank
3. Airtel Payments Bank
4. India Post Payments Bank
5. Jio Payments Bank

Solution:

1. C

2. E

3. B

4. E

5. A

Read Banking Awareness PDF - 21 and 22 April 2020