Banking, Financial and Economic Awareness of 22 and 23 March 2020

1. Aviation Turbine Fuel (ATF) prices lowered by 11.76%

• Aviation Turbine Fuel (ATF) prices have been lowered by 11.76% due to the decreasing prices of crude oil.
• After the cut by 11.76%, jet fuel prices or ATF prices have reached the lowest level since September 2017.
• Since February, the prices have been falling continuously and the recent reduction of 12% is third continuous reduction since February.
• On March 13, the government has raised excise duty on Petrol and Diesel. This could have led to increase in prices of Petrol and Diesel.
• But, the retail prices of Petrol and Diesel have not changed because oil companies adjusted lower international crude prices against an increase in excise duty on Petrol and Diesel.
• After the deregulation of ATF in 2002, ATF prices were revised fortnightly.
• In November 2012, oil companies started revising ATF prices on 1st day of every month.
• On 21st March, oil marketing companies have returned to fortnightly revision.
• The prices of Petrol and Diesel are revised on a daily basis.

2. Financial assistance to Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme approved

• Financial assistance to Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme has been approved by Cabinet.
• The scheme is for the growth of infrastructure and common facilities that will be best in the world.
• World's best infrastructure and common facilities will be developed through Electronics Manufacturing Clusters (EMCs).
• EMCs will help in the development of Electronics System Development and Maintenance (ESDM) sector.
• EMC 2.0 scheme will help in establishment of EMCs and Common Facility Centres (CFCs).
• Government will spend Rs. 3,762.25 crore for starting of EMC 2.0 Scheme.
• Electronics Manufacturing Clusters (EMC) scheme was notified by the Ministry of Electronics and Information Technology (MeitY) for a period of five years from October 2017 to October 2022. EMC 2.0 Scheme is a continuation of EMC scheme.
• Electronics manufacturing forms 2.3% of India's current GDP. Between 2014-15 and 2018-19, India's electronics manufacturing has grown at Compound Annual Growth Rate (CAGR) of 25%. 

3. CII suggests measures to government

• Confederation of Indian Industry (CII) has suggested that government should take measures such as direct income transfer and lowering of repo rate.
• As per suggestion given by CII, poor and elderly citizens should be given direct income transfers.
• CII has suggested lowering of repo rate by 50-basis points and relaxing of Non Performing Asset (NPA) norms.
• CII has also suggested that 10% long-term capital gains (LTCG) tax in equities market should also be removed.
• CII has suggested above measures to address economic difficulties due to corona virus.

4. SBI opens emergency credit line

• State Bank of India has extended emergency credit line so as to meet any liquidity mismatch for its borrowers.
• The funds up to Rs. 200 crores will be provided till June 30 under the Covid-19 Emergency Credit Line (CECL).
• The loan will be available at a 7.25% interest rate for 12 months.

Multiple Choice Questions (MCQs)

1. Decreasing crude oil prices have recently caused a decline in Aviation Turbine Fuel (ATF) prices by 

1. 5.76%
2. 7.76%
3. 9.76%
4. 11.76%
5. 12.76%

2. Recently, financial assistance to Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme has been approved by Cabinet. Electronics manufacturing forms

1. 0.3% of India's GDP
2. 1.3% of India's GDP
3. 2.3% of India's GDP
4. 3.3% of India's GDP
5. 4.3% of India's GDP

3. Which of following measures has been suggested by Confederation of Indian Industry (CII) for addressing economic difficulties due to coronavirus?

1. Direct income transfer to poor and elderly
2. Lowering of repo rate
3. Relaxing of Non Performing Asset (NPA) norms
4. Removal of 10% long-term capital gains (LTCG) tax in equities market
5. All of the above

Solution:

1. D

2. C

3. E

Read Banking Awareness PDF - 22 and 23 March 2020