1. RBI has approved products of four entities for cross-border payments.
- RBI approved the products after they tested acceptable under the second cohort of the regulatory sandbox for cross border payments.
- The opening of second cohort was announced by RBI in December 2020.
- RBI had received 27 applications from 26 entities. Of these, eight entities were selected for the ‘Test Phase’.
- The names of four entities are given below.
- Payment solution provider, Cashfree Payments
- Payment solution provider, Fairex Solutions
- Financial services provider, Nearby Technologies (it operates PayNearby)
- Neo-banking unicorn, Open Financial Technologies
- These entities are now out of the second cohort of the regulatory sandbox on ‘Cross-Border Payments’.
- Regulated entities can now consider for adoption of the products found acceptable under the second cohort.
- In September 2021, RBI announced the opening of third cohort under Regulatory Sandbox.
Description of The Product
Its product extends a cross-border payment platform to facilitate the purchase of assets listed on foreign exchanges (e.g NASDAQ) like publicly listed shares, exchange-traded funds i.e., ETFs and units of mutual funds, securities by Indian investors via local payment methods.
Its product provides an aggregation platform of leading cross-border payment providers for outward remittance.
Its product facilitates routing the inward cross-border remittance to the beneficiary’s Aadhaar number as a virtual bank account using existing Rupee Drawing Arrangement (RDA) mechanism.
Open Financial Technologies
Its product proposes a Blockchain-based cross-border payment system, leveraging the current infrastructure and ensures frictionless and tamperproof monitoring capabilities.
2. RBI has placed restrictions on four cooperative banks because of their worsening financial positions.
- These banks will continue to do banking business with restrictions till their financial position improves.
- RBI has issued directions to the banks under Section 35 A read with section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies). The directions will remain in force for six months.
- The names of four banks are given below.
- Saibaba Janata Sahakari Bank in Maharashtra
- The Suri Friends Union Co-operative Bank Ltd in West Bengal
- United India Co-operative Bank Limited in Uttar Pradesh
- National Urban Co-operative Bank Ltd in Uttar Pradesh
- RBI has earlier imposed a ₹ 57.75 lakh penalty on Suryoday Small Finance Bank.
3. CBDT and all its field offices across the country observed 163rd anniversary of Income Tax Day on 24 July 2022.
- Finance Minister complimented Income Tax Department for having achieved the highest ever revenue collection of over 14 lakh crore in the last fiscal (FY 2021-22).
- In his message on Income Tax Day, newly appointed chairman of CBDT Nitin Gupta said the tax department has reported the highest ever tax collection of ₹14.09 lakh crore in the fiscal year ended March 31, 2022.
- Income Tax Day is celebrated on 24 July. This year's Income Tax Day is the 163rd Income Tax Day.
- On 24 July 1860, Sir James Wilson introduced income tax in India to compensate the British government for the losses incurred at the time of First War of Independence in 1857.
- In 2010, Income Tax Department decided to mark 24 July as Income Tax Day.
- Central Board of Direct Taxes (CBDT):
- It is a statutory body under the Central Revenue Act, 1963. It is the administrative body of the Income Tax department.
- It deals with matters related to levy and collection of direct taxes like personal income tax, corporate tax, etc.
- CBDT is headed by Chairman and comprises six members. Its headquarters are in New Delhi.
- Current Chairperson: Nitin Gupta
(Source: News on AIR)
4. ITI Limited has signed an MoU with Centre for Development of Telematics (C-DOT) for transfer of 4G technology.
- The MoU is to establish a framework for cooperation of LTE/LTE-A/4G technology-based wireless communication systems.
- As part of this MoU, ITI Limited and C-DoT will collaborate to create ‘Make in India’ stack for the upcoming 4G and 5G opportunities in India.
- ITI will produce the 4G upgradeable to 5G radio access network (RAN) and explore supplying the C-DOT LTE RAN/eNodeB systems to railways, defence, export markets etc.
- ITI Limited:
- It is a manufacturing telecom and defense equipment company. It is headquartered in Bengaluru.
- It is a Public Sector Undertaking under Department of Telecommunication, Ministry of Communications, Government of India.
Topic: Indian Economy/Financial Market
5. FPIs invested ₹1,099 crore in Indian equity market during July 1-22.
- This investment has come after net withdrawal of ₹50,145 crore from equities in June 2022.
- The outflow (withdrawal) in June 2022 was the highest net outflow since March 2020.
- In March 2020, Foreign Portfolio Investors (FPIs) pulled out ₹61,973 crore from equities.
- In addition to equities, FPIs invested ₹792 crore in the debt market during July 1-22.
Topic: Indian Economy/Financial Market
6. Market Capitalization (market cap or Mcap) of top 10 firms increased over ₹2.98-lakh cr.
- Nine out of the 10 most valued firms added ₹2.98-lakh crore to their market valuation last week.
- Excluding Life Insurance Corporation (LIC), the top 10 companies increased their market valuation by a combined total of 2,98,523.01 crore.
- Reliance Industries and TCS emerged as lead gainers. The mcap of Reliance Industries increased by ₹68,564.65 crore.
- The valuation of Tata Consultancy Services (TCS) increased by ₹64,929.87 crore. LIC's valuation declined by ₹12,396.99 crore.
- Reliance Industries emerged as the most valued company, followed by TCS, HDFC Bank, Infosys, Hindustan Unilever, ICICI Bank, State Bank of India, LIC, HDFC and Bajaj Finance.
- Market Capitalization (market cap or Mcap):
- It is defined as the market value of outstanding shares of a publicly traded company.
- It is determined by multiplying the share price by the total number of outstanding shares.
7. On 20 July 2022, government has reduced windfall tax levied on crude petroleum producers.
- Government has reduced the export tax on Aviation Turbine Fuel (ATF) and diesel.
- Windfall gain tax on domestically produced crude will now be ₹17,000 a tonne against ₹23,250 per tonne.
- Special Additional Excise Duty (SAED) on exports of ATF has been reduced to ₹4 a litre from ₹ 6 a litre.
- SAED on diesel has been reduced to ₹10 a litre from ₹12.
- Export of diesel will continue to have an additional excise duty of ₹1.
- On petrol, additional excise duty of ₹6 a litre has been removed.
- Petrol, diesel and ATF have been exempted from SAED, if exported from units located in the Special Economic Zone (SEZ).
- On 1 July 2022, government had imposed windfall tax and other taxes to control inflation and to ensure availability of the transport fuels in the local market.
- As per a government official, taxes may go up again when crude prices rise. They may decline if prices moderate.
- Total withdrawal of taxes is possible only when crude prices fall to around $75/barrel.
- On 1 July 2022, when the new taxes were imposed, Brent crude prices were at $111.63/ barrel. Prices have now come down to $105.75 on 20 July, 2022.
8. PB Fintech, the parent entity of Policy Bazaar, informed stock exchanges about IT systems breach.
- The company said that certain vulnerabilities were identified in a part of Policybazaar Insurance Brokers Pvt Ltd (“Policybazaar’‘) IT systems on July 19, 2022.
- The company said identified vulnerabilities have been fixed and no significant customer data exposed.
- Recently, Cleartrip said it had suffered a major data breach in its internal systems.
- Cleartrip is a Flipkart-owned airline and hotel booking platform.
- PolicyBazaar is an insurtech player. It serves as a marketplace for insurance products. It was listed on the exchanges in November last year.
Topic: Reports and Indices
9. India's bioeconomy may reach to $150 billion by 2025 and over $300 billion by 2030 as per India BioEconomy Report 2022.
- Union Minister Dr Jitendra Singh released India’s Bioeconomy Report 2022.
- India BioEconomy Report 2022 has been brought out by the Biotechnology Industry Research Assistance Council (BIRAC).
- As per the report, India’s bioeconomy has reached USD 80 billion in 2021, an increase of 14.1% from USD 70.2 billion in 2020.
- The report said that India generated USD 219 million of bioeconomy daily in 2021.
- In 2021, at least three biotech startups were founded every day.
- Dr Jitendra Singh said that in the last 10 years, the number of biotech startups has increased from 50 to 5,300.
- The term BioEconomy generally refers to an economy using renewable natural resources (biomass in forests, soil, fields, bodies of water etc) to produce food, energy, products and services.
10. Vinayak Pai has been appointed as Managing Director of Tata Projects.
- His has assumed office as Tata Projects MD from 22 July. He has taken over from Vinayak Deshpande.
- Pai has been member of the Executive Leader World 50.
- Pai has served as a Commissioner at the Energy Transition Commission UK.
- Tata Projects is an infrastructure company.