Banking, Financial and Economic Awareness of 24 and 25 July 2020

1. Finance Ministry notifies rules to share information about individual assesses

• Finance Ministry notifies rules to share information about individual assesses to help in identifying eligible beneficiaries under PM-KISAN Yojana.
• Information about individual assesses is not normally shared by Income Tax Department.
• But, Income Tax Act, 1961 has a section 138 that allows Joint Secretary (Farmers Welfare) to get information about income tax assesses.
• The sub-clause (ii) of clause (a) of sub-section (1) of Section 138 of the IT Act, 1961 allows the exception for information sharing.
• PM Kisan scheme:
  • The PM Kisan scheme has been functioning since December 1, 2018.
  • Under scheme, Small and marginal farmer families get annual income support of RS 6,000 in 3 equal instalments.
  • The scheme was expanded to all eligible farmer families on May 31. Size of landholdings is not a criterion for scheme.

2. CCC appeals to Ministry of Personnel, Public Grievance/ Pensions

• Coimbatore Consumer Cause (CCC) has appealed to Ministry of Personnel, Public Grievance/ Pensions to ask banks for sending Form XVI by post.
• As of now, banks are calling pensioners to branch for collection of Form XVI, which is used for filing Income Tax Return.
• Ministry of Personnel, Public Grievance/ Pensions was formed in 1970. Prime Minister is the current Minister of Personnel, Public Grievance/ Pensions.
• Mr. Jitendra Singh is the Minister of State for Personnel, Public Grievance/ Pensions.

3. RBI approves ROIC's proposal to raise stake in IndusInd Bank

• RBI has approved ROIC's proposal to raise its stake in IndusInd Bank from 4.96% to 10%.
• Route One Investment Company (ROIC)'s stake or shareholding will be increased up to 10% of IndusInd Bank's paid-up voting equity capital.
• IndusInd Bank:
  • It is a Pune-based bank.
  • It was started in 1994.
  • Sumant Kathpalia is its CEO.
  • Its tagline is we make you feel richer.

4. Long-Term Issuer Default Rating (IDR) of Future Retail downgraded

• Long-Term Issuer Default Rating (IDR) of Future Retail has been downgraded by Fitch.
• Company's earlier rating was CCC+. It has been now downgraded to C.
• Fitch has also downgraded rating on company's $500 million 5.6% senior secured notes from CCC+ to C.
• Earlier S&P has also warned company that it may downgrade company as it failed to make payments.
• Decreased sales due to COVID-19 and increasing debt has caused severe liquidity crunch before Future Retail and its holding company.

5. Consumer Protection (E-Commerce) Rules, 2020 notified

• Consumer Protection (E-Commerce) Rules, 2020 have been notified by government.
• The new rules mandate that e-commerce companies should display country of origin on products and expiry date of goods.
• The rules will be applied to all electronic retailers registered in India or abroad and selling goods and services to Indian consumers.
• The new rules also require display of total price of goods and services and other charges.
• Additionally, details about return, refund, exchange, warranty and guarantee, delivery and shipment should also be displayed.
• As per the new rules, e-commerce companies should also display any other information that consumers may require to make informed decisions.
• If e-commerce companies will violate rules, they will be penalized under Consumer Protection Act, 2019.
• The new rules prohibit e-commerce companies from imposing cancellation charges unless they are willing to pay similar charges to consumers if the companies cancel order from its side. 
• Under the new rules, e-commerce companies cannot manipulate prices and discriminate between consumers or arbitrary classify them.

6. Acquisition of Krishnapatnam port approved by CCI

• Acquisition of Krishnapatnam port by APSEZL has been approved by Competition Commission of India.
• After the approval, Adani Ports and Special Economic Zone Limited (APSEZL) will acquire equity shareholding and management control in Krishnapatnam Port Company Limited (KPCL). 
• Adani Ports is an integrated port infrastructure service provider company. KPCL operates deep water port at Krishnapatnam, Andhra Pradesh.
• In September 2019, CCI has approved acquisition of 70% stake in Saudi Basic Industries Corporation (SABIC) by Saudi Aramco.

Read Banking Awareness PDF - 24 and 25 July 2020