Banking, Financial and Economic Awareness
1. Finance Ministry proposes formation of a Resolution Authority
- Finance Ministry has proposed formation of a Resolution Authority during its ongoing work on framework to prevent negative effects of failure of certain financial institutions.
- As per the proposal, Resolution Authority will have members from different regulators of financial sector. It will also have senior government officials as its members.
- Banks, NBFCs, insurance companies, securities market participants, co-operative banks and Regional Rural Banks (RRBs) may come in the jurisdiction of proposed Resolution Authority.
- Along with setting of Resolution Authority, the government is also paying attention to increase deposit insurance limit from current Rs 5 lakh to Rs 1 lakh.
- Earlier government has dropped the idea of Financial Resolution and Deposit Insurance (FRDI) Bill due to controversy over bail-in clause for resolution of failure of banks.
- The framework to prevent negative effects of failure of certain financial institutions and deal with insolvency of financial sector firms was also discussed at meetings of Financial Stability and Development Council (FSDC).
- 21st meeting of FSDC was recently held on 7th November, 2019.
- Financial Stability and Development Council (FSDC):
- It was established in December 2010.
- Finance Minister is the chairperson of FSDC.
2. SC suspends NCLAT order
- Supreme Court has suspended NCLAT order of rejecting petition by Registrar of Companies (RoC) to remove its comments against RoC on conversion of Tata Sons from a public company to a private company.
- Earlier, SC has suspended NCLAT's order reinstating Cyrus Mistry on the post of chairman of Tata Sons.
- Registrar of Companies (RoC):
- It comes under Ministry of Corporate Affairs.
- At present, there are 22 Registrar of Companies (RoC) offices in India.
- RoC is appointed as per Section 609 of the Companies Act.
3. Undisclosed foreign assets of Rs 1,000 crore found
- Income Tax Department has found undisclosed foreign assets of Rs 1,000 crore during raids on Bharat Hotels group.
- The department has also found domestic tax evasion of over Rs. 35 crore and evidences of keeping of funds in tax heavens.
- Bharat Hotels group controls chain of Lalit Hotels in India.
- Central Board of Direct Taxes (CBDT) administers direct tax laws though Income Tax Department. CBDT is included in Department of Revenue of Finance Ministry. It has total six members.
4. Expansion of agriculture sector collaboration between India and UK
- Department of Biotechnology (DBT) and National Institute of Plant Genome Research (NIPGR) will start a fellowship programme under Transforming India’s Green Revolution and Empowerment for Sustainable Food Supplies (TIGR2ESS) programme.
- TIGR2ESS is a UK-India joint research programme. It was started in 2018.
- Under the fellowship programme, 30 Indian researchers will work at crop science universities in UK for a period of two years.
- TIGR2ESS focuses on deliverables from evergreen Revolution, increasing productivity and yield stability, educating local communities and sharing water supplies to meet community demand.
5. Government may bring new investment law in Budget session
- Government may bring new investment law and place nations into categories like most favored and not pro-India.
- Under the new law, government will give more tax benefits and regulatory relaxations to most favored nations.
- The law will bring companies into India and increase investment in India.
- During first six months of current fiscal, FDI inflow in India has shown 15% growth.
- Government has plans to bring over ₹102-lakh crore in India through National Infrastructure Pipeline.
- Through the bill, government will also focus on contract enforcement.
- Budget session is one of the three session of Parliament. It is usually held from February to May.
Multiple Choice Questions (MCQs)
1. Who among the following is the chairperson of Financial Stability and Development Council (FSDC)?
- Finance Minister
- Governor of RBI
- Chairman of SEBI
- Secretary, Department of Financial Services
- Chairman of IRDA
2. Registrar of Companies (RoC) is appointed under which section of the Companies Act?
3. How many members are there in Central Board of Direct Taxes?
4. Transforming India’s Green Revolution and Empowerment for Sustainable Food Supplies (TIGR2ESS) is a joint research programme between India and _____.
5. How many sessions are held each year in the Parliament?