Banking, Financial and Economic Awareness

2020-10-22

1. MSME Minister launched India’s first ever Khadi fabric Footwear

  • MSME Minister Nitin Gadkari has launched India’s first-ever Footwear made up of Khadi fabric like Silk, Cotton and Wool.
  • Khadi and Village Industries Commission (KVIC) has designed this footwear.
  • The Minister also launched the online sale of Khadi footwear through KVIC’s e-portal.
  • Minister of State for MSME, Pratap Chandra Sarangi, has said that the footwear is skin-friendly and environment friendly.
  • Khadi and Village Industries Commission (KVIC):
    • The Khadi and Village Industries Commission is a statutory body established in 1956 by the Government of India.
    • Its headquarters is located in Mumbai.
    • Vinay Kumar Saxena is its current chairman.

2. SEBI orders a penalty of ₹32-crore on Kirloskar brothers for insider trading

  • SEBI has ordered a penalty of ₹32-crore on promoters of Pune-based Kirloskar Brothers Limited (KBL) for insider trading.
  • Along with a fine, SEBI has banned Rahul and Atul Kirloskar from dealing in the markets for six months.
  • The promoters have been asked to pay the penalty under section 15H of SEBI’s Fraudulent & Unfair Trade Practices Act.
  • In its order, SEBI has said that promoters sold shares of Kirloskar Brothers Ltd on the basis of advanced knowledge of the worsening financial position of the company.
  • Promoters of KBL sold KBL’s shares to Kirloskar Industries (KIL) in October 2010.
  • In insider trading, a company’s securities are sold based on insider information. People who can access nonpublic information carry out trade of the company’s securities. Insider trading is illegal.
 

3. RBI decides to conduct On Tap TLTRO scheme and banks to provide liquidity to five sectors

  • RBI has decided to conduct On tap Targeted Long-term Repo Operations (TLTRO) and ordered that banks should provide liquidity availed by them under TLTRO to five sectors.
  • On tap TLTRO scheme will be operational from October 22, 2020 to March 31, 2021.
  • TLTRO will be of up to three years tenor and total amount of up to Rs 1,00,000 crore.
  • The banks will use liquidity availed by them under on tap TLTRO in corporate bonds, commercial paper and non-convertible debentures in five sectors. 
  • The banks can also use liquidity to give loans to five sectors. The names of the sectors are agriculture, agri-infrastructure, secured retail, MSMEs and drugs, pharmaceuticals & healthcare.
  • Bank’s exposures to these sectors will be exempted from the large exposure framework (LEF).
  • RBI carries out TLTRO to ensure enough liquidity in certain targeted sectors for a longer period.
  • Large Exposure Framework (LEF):
    • It has become effective from April 2019. It was the first time introduced by Basel Committee in 2014.
    • RBI introduced draft LEF in December 2016. It is a part of India’s efforts to implement Basel 3 norms.
    • LEF puts a limit of 25% of Tier 1 capital on bank’s large exposures or exposures to one counterparty that are beyond 10% of Tier 1 capital.

4. IRDAI releases draft Insurance Regulatory and Disclosure Regulations 2020

  • IRDAI has released draft Insurance Regulatory and Disclosure Regulations 2020.
  • Draft regulations term advertisements with claims beyond ability of insurance policy and not matching provisions of policy as unfair and misleading.
  • As per draft regulations, every insurer or intermediary is required to recognize the Advertising Standards Council of India (ASCI) prescribed standards of professional conduct.
  • IRDAI will fine if the norms will be violated by insurance advertisements.
  • Advertising Standards Council of India (ASCI):
    • It was formed in 1985.
    • It is a self-regulatory and non-governmental organization.
    • It is headquartered in Mumbai.
    • Its chairman is Rohit Gupta.  

5. Reliance Jio Platforms launches JioPages

  • Reliance Jio platforms have launched JioPages, a ‘Made in India’ web browser.       
  • As of now, JioPages is available only for Android smart phones. It is entirely developed in India.
  • The users can set a four-digit security PIN or fingerprint as an access code for the browser.
  • The browser supports eight Indian languages.
  • Reliance Jio platforms is a wholly-owned subsidiary of Reliance Industries.

6. Wipro gets five year-long AMS and SIAM agreement from Fortum

  • Wipro has got five year long Application Management (AMS) and Services Integration & Management (SIAM) agreement from Finland-based clean energy company, Fortum.
  • As part of the agreement, Wipro will manage the application portfolio of Fortum.
  • Wipro will use its Artificial Intelligence and automation platform, Wipro HOLMES, to enhance the end-user experience.
  • In September 2020, Wipro has signed an agreement with US-based ProcessMaker to deliver workflow management solutions.
  • Wipro Limited is an Indian company based in Bengaluru and owned by Azim Premji. Its CEO is Thierry Delaporte.

 

 

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