Banking, Financial and Economic Awareness of 24 and 25 March 2021

Topic: Corporates/Companies

1. POWERGRID launched an e-Tendering Portal ‘PRANIT’.

• Power Grid Corporation of India Limited (POWERGRID) launched an e-tendering Portal, ‘PRANIT’.
• It has been launched for ease of operation and to bring transparency in the tendering process.
• It has been approved by the Standardisation, Testing and Quality Certification Directorate (STQC) of the Ministry of Electronics and Information Technology.
• POWERGRID is the only organisation that has an eProcurement solution on SAP Supplier Relationship Management (SRM).
• SAP Supplier Relationship Management (SRM) is an application that enables a company to manage its relationships with its vendors.
• POWERGRID:
  • It is a Maharatna company headquartered in Gurugram.
  • It is a central PSU under the Ministry of Power.
  • It is engaged in the work of power transmission, operation and maintenance of the Inter-State Transmission System (ISTS).

Topic: RBI

2. Standing External Advisory Committee set up by RBI.

• Standing External Advisory Committee has been set up by RBI to evaluate on-tap applications for universal and small finance banks.
• RBI’s former deputy governor, Shyamala Gopinath, is head of the Standing External Advisory Committee.
• In addition to the chairperson, the committee has four other members also. The names of four other members are given below.
  • RBI central board director Revathy Iyer
  • NPCI chairman B Mahapatra
  • Canara Bank’s former chairman T N Manoharan
  • SBI’s former MD & PFRDA’s former chairman Hemant Contractor
• In 2016, guidelines for on-tap licensing were announced. Standing committee to evaluate applications has been set up now.

Topic: Indian Economy

3. Finance Bill passed by Lok Sabha.

• Lok Sabha has passed Finance Bill and the bill will now go to Rajya Sabha.
• On 23 March, Finance Minister proposed amendments in Budget proposals.
• On the issue of equalization levy, the minister said that the calculation of levy would not be applicable for goods owned by Indians.
• Government has raised Rs 2.5-lakh limit for EPFO taxation to Rs 5 lakh. Now interest earned on contributions above Rs 5 lakh will be taxable.
• Government has announced tax benefits for the proposed Development Financial Institution.
• Government-owned institutions would be provided tax benefits for 10 years.
• Income tax benefits will be available for 5 years if the private sector sets up the institution under license from RBI.

Topic: Infrastructure and Energy

4.  Rovuma Offshore Area-1 project, Mozambique’s first onshore LNG development satisfies all conditions for first debt drawdown of project financing.

• Rovuma Offshore Area-1 project, Mozambique’s first onshore LNG development, satisfies all conditions for the first debt drawdown of project financing.
• This announcement was recently made by Oil India Limited (OIL). First debt drawdown of project financing will be in April 2021.
• OIL holds 40% shareholding in Beas Rovuma Energy Mozambique (BREML). ONGC Videsh holds 60% in BREML.

Topic: Infrastructure and Energy

5. Government brings a bill to amend Airports Economic Regulatory Authority of India Act 2008.

• Government has brought a bill to amend Airports Economic Regulatory Authority of India Act 2008.
• Through this bill, the government aims to amend the definition of a major airport.
• Currently, an airport with an annual passenger in excess of three and a half million is called major airport.
• Airports Economic Regulatory Authority is a statutory body formed under the Airports Economic Regulatory Authority of India Act 2008.
• It monitors the performance standards of airports. It also regulates tariffs and other charges for aeronautical services rendered at airports.

Topic: Taxation

6. The amendment in Budget provision related to capping of EPF contribution for tax exemption is only meant for the subscribers of GPF/SPF.

• The amendment in Budget provision related to capping of EPF contribution for tax exemption is only meant for the subscribers of General Provident Fund/Statutory Provident Fund. This will benefit the government employees on a large scale.
• Under GPF, the employee is the sole contributor with the government only paying interest.
• Government has raised Rs 2.5-lakh limit on the interest earned to Rs 5 lakh only in cases where the employer does not contribute to that fund.
• Rs. 2.5 lakh limit will be applicable for normal EPFO subscribers where both employee and employer at least contribute 12% each of basic plus Dearness Allowance (DA).  

Topic: Reports and Indices/Rankings

7. Fitch ratings revises India’s GDP growth projection for 2021-2022 from 11% to 12.8%.

• In its latest Global Economic Outlook (GEO), American credit rating agency Fitch has revised India’s GDP growth projection for 2021-2022 from 11% to 12.8%.
• The agency further said that recovery of India’s GDP growth from lockdown-induced recession has been faster than expected.
• However, GDP is expected to remain below pre-pandemic forecast trajectory of Fitch.
• As per Fitch, recovery of GDP during the second half of 2020 reached above the pre-pandemic level.
• S&P, Moody’s Investors Service and Fitch Ratings are known as Big Three credit-rating agencies.

Topic: Reports and Indices/Rankings

8. DGFT to assist states and Union Territories in preparing an annual export-ranking index.

• Commerce Ministry has said that the Directorate General of Foreign Trade (DGFT) will assist states and Union Territories in preparing an annual export-ranking index.
• Annual export-ranking index of different districts will be prepared to rank each district on its export competitiveness.
• Central government is working on developing districts as export hubs to decentralize export promotion activities.
• A district export action plan will be prepared. Under this plan, goods and services with export potential in the district will be identified.

Read Banking Awareness PDF - 24 and 25 March 2021