Topic: Banking System
1. First-ever FPI license issued by Kotak Mahindra Bank to GIFT IFSC AIF of True Beacon Global.
- First-ever foreign portfolio investments (FPI) license issued by Kotak Mahindra Bank to GIFT IFSC Alternate Investment Fund (AIF) of True Beacon Global.
- This is the 1st foreign portfolio investments (FPI) license to an Alternate Investment Fund (AIF) incorporated in GIFT IFSC by any custodian bank or Designated Depository Participant.
- Foreign portfolio investments can now be done through GIFT IFSC.
- GIFT IFSC:
- IFSC is a jurisdiction that provides for both residents and non-residents financial services in foreign currencies.
- The first International Financial Services Centre (IFSC) was set up at GIFT City in Gandhinagar, Gujarat.
- Kotak Mahindra Bank:
- It is an Indian private sector bank.
- Headquarters: Mumbai, Maharashtra
- CEO: Uday Kotak
Topic: Indian Economy
2. Final rules for 74% foreign investment in insurance sector notified by Finance Ministry.
- Final rules for 74% foreign investment in the insurance sector have been notified by Finance Ministry.
- As per the new rules, 50% of net profit in a financial year should be kept in general reserve if the solvency margin is less than 1.2 times of control levels of solvency.
- The excess of the value of assets over the value of liabilities is called solvency margin.
- The rules say that in the case of an Indian insurance company having foreign investment majority of its directors, key management persons will be a Resident Indian Citizen.
- As per the rules, at least one among the chairperson of the Board of Indian insurance company having foreign investment will be a Resident Indian Citizen.
- Managing director and Chief Executive Officer of Indian insurance company having foreign investment will also be a Resident Indian Citizen as per the new rules.
- Insurance Companies (Foreign Investment) (Amendment) Rules, 2021 came into effect on May 19, 2021.
- In 2015, the government raised the foreign investment limit to 49%.
Topic: Regulatory bodies/Financial Institutions
3. Finance Minister says that CCI must proactively engage with industry.
- While addressing a virtual event to commemorate 12th Annual Day of CCI, Finance Minister said that CCI must proactively engage with industry.
- 12th Annual Day of the Competition Commission of India (CCI) was virtually commemorated on 20 May.
- Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman addressed different invitees in the inaugural session of event to commemorate 12th Annual Day of CCI.
- On the occasion, she released the ‘CCI Journal on Competition Law and Policy’.
- It was established under Competition Act, 2002, but it became fully functional in May 2009.
4. RBI’s Central Board has given approval to transfer ₹99,122 crore as surplus to the Central Government.
- RBI’s Central Board has given the approval to transfer ₹99,122 crore as surplus to the Central Government for July 2020-March 2021.
- The amount approved this year is 73.5% in comparison to the ₹57,128 crore transfer approved in 2019-20.
- 589th meeting of the Board was held on 21 May 2021. At the meeting, the Board decided to maintain the Contingency Risk Buffer at 5.50%.
- RBI accounting year has changed from July-June to April-March.
- RBI’s Central Board: A central board of directors is appointed by Government of India to govern RBI’s affairs. Central board of directors is appointed for four years. It consists of official and non-official directors.
5. ₹1 crore penalty imposed on City Union Bank (CUB) and Tamilnad Mercantile Bank (TMB).
- ₹1 crore penalty has been imposed by RBI on City Union Bank (CUB) and Tamilnad Mercantile Bank (TMB) each.
- In the case of City Union Bank (CUB), ₹1 crore penalty has been imposed for non-compliance with certain provisions of RBI.
- In the case of Tamilnad Mercantile Bank (TMB), ₹1 crore penalty has been imposed for non-compliance with directions regarding Cyber Security Framework in Banks, 2016.
- Rs 90 lakh monetary penalty has been imposed by RBI on Ahmedabad-based Nutan Nagarik Sahakari Bank for non-compliance with certain directions.
Topic: Committees/ Commissions/Taskforces
6. Ministry of Power asks National Committee on Transmission to prioritise the areas with high renewable energy potential.
- Ministry of Power asks National Committee on Transmission to give priority to areas with high renewable energy potential at the time of planning new electricity transmission projects.
- On 21 May, the Ministry of Power has passed an order to amend the committee’s mandate.
- The order appointed Power System Operation Corporation Ltd CMD KVS Baba to National Committee on Transmission.
- Chairperson of Central Electricity Authority, Prakash Mhaske, is heading the committee.
- The mandate of the National Committee on Transmission is to evaluate the growth trend in electricity demand and production in various region.
Topic: Indian Economy
7. Board of Approval for SEZs to take up Sikkim Government’s proposal to IT/ITeS SEZ at Namli, East Sikkim.
- In its meeting on May 28, the Board of Approval for SEZs will take up Sikkim Government’s proposal to IT/ITeS SEZ at Namli, East Sikkim.
- Board of Approval is likely to give approval if the developers convince BoA that the one with all security requirements, which include restrictions on the movement of foreigners in the area.
- The location of SEZ comes under notified Restricted Area and foreigners cannot enter or stay without obtaining a Restricted Area Permit (RAP).
- Board of Approval will also consider two applications for multi-sector SEZs in Tamil Nadu.
- First application is for setting up of a multi-sector SEZ at Thiruvallur district, Tamil Nadu, by Magnus Infrastructure Ltd.
- Second application is for setting up a multi-sector SEZ at Ranipet district, Tamil Nadu.