Banking, Financial and Economic Awareness of 26 and 27 July 2020

1. DCGI cancels and suspends import licenses of several companies

• Import licenses of several companies importing Covid-19 antibody kits from China, South Korea, US and Malaysia were suspended and cancelled by Drug Controller General of India (DCGI).
• DCGI has cancelled and suspended licenses of companies importing both Covid-19 antibody kits and importing Enzyme Linked Immunosorbent Assay (ELISA) technology for antibody testing. Later is considered more accurate.
• The names of company are Zydus Diagnostics, MDAAC International Private Limited and NW Overseas. These companies were importing kits from China.
• SD Biosensor Healthcare imported kits from South Korea and VS Yarns imported kits from Malaysia.
• Other companies imported kits from US. United States Food and Drugs Administration (USFDA) have removed some kits from its list.
• DCGI served notice to companies importing USFDA banned kits. As a result, these companies voluntarily surrendered their licences.
• ICMR has approved COVID-19 lgG ELISA antibody kit of US after clinical trials in India.

2. ArcelorMittal goes to Gujarat High Court for licence of captive port at Hazira

• ArcelorMittal has gone to Gujarat High Court for licence of captive port at Hazira from Essar Group.
• Arcelormittal's claim is that bulk terminal at Hazira port was to serve steel plant acquired by it from Essar group. So, ArcelorMittal wants that licence of captive port at Hazira should be transferred to it.
• Essar Steel says that the port was not involved in resolution process through which ArcelorMittal acquired Essar Steel.
• Currently, Essar Bulk Terminal Ltd (ETBL) runs captive port at Hazira. ArcelorMittal Nippon Steel India Ltd (AMNS) has earlier acquired Essar Steel. Hazira port is located in Surat, Gujarat.

3. Accounting rules amended by Corporate Affairs Ministry

• Accounting standards on Leases and Business Combinations have been amended by Corporate Affairs Ministry.
• Amendment to accounting standards on Leases (IND AS 116) will provide relief to lessees.
• Under the amendment, lessees will get an option to assess or not assess a rent concession due to pandemic as a lease modification.
• International Financial Reporting Standard (IFRS) 16 was amended by International Accounting Standards Board (IASB) on May 28.
• Amendment to accounting standards on Business Combinations (IND AS 103) has been made to help entities decide accounting of a transaction as a business combination or as an asset acquisition.

4. Manufacturing of iPhone 11 started in India

• Apple has started manufacturing of its iPhone 11 in India at a facility located in Tamil Nadu.
• Apple has earlier begun manufacturing of four other models in India and iPhone 11 is fifth such product.
• The iPhone 11 were already being assembled in India by Foxconn. Foxconn also makes iPhone XR for Apple.
• Apple is a US based company. It is headquartered in Cupertino, California. It was founded by Steve Jobs, Ronald Wayne, Steve Wozniak. Tim Cook is its CEO.

5. $400 million currency swap arrangement signed by RBI

• $400 million currency swap arrangement has been signed by RBI with Sri Lanka.
• The currency swap arrangement will be available till November 2022 and will improve foreign reserves of Sri Lanka.
• The currency swap arrangement will also ensure that the country remains financially stable.
• Under the currency swap arrangement, India will give dollars to central bank of Sri Lanka and Sri Lanka will give equivalent money in its currency to India's central bank.
• This exchange will be done at market exchange rate during transaction. The parties will later swap back their currencies at a decided date in future.
• The exchange rate for swapping during second transaction is kept same to that of first transaction.

6. Tata Education and Development Trust granted Rs 220 crore exemption

• Tata Education and Development Trust has been granted Rs 220 crore exemption by Income Tax Appellate Tribunal (ITAT).
• ITAT has ruled against Commissioner of Income Tax order in which Income Tax Department has levied a demand of over Rs 220 crore.
• The trust has spent money for creating an Endowment fund at Cornell University in US during assessment years 2011-12 and 2012-13.
• In 2018, an enquiry was sought by Lok Sabha's Public Accounts Committee on the grounds that tax exemption violated IT Act.

7.  Government discussing plan to bring RRBs under India Post

• Government has been discussing plan to bring 14,000 branches of 45 Regional Rural Banks (RRBs) under India Post.
• For this purpose, a holding company under the control of the Centre will be formed.
• Existing RRBs and India Post Payments Bank will be made subsidiaries under the holding company.
• Centre holds 50% stake in RRBs. Public Sector Banks (35%) and the state governments (15%) can retain or monetise and sell their stake to the centre.
• Currently, IPPB is not allowed to lend. It is not allowed to accept deposits of more than one lakh per customer.
• India Post has received payments bank licence from RBI in 2015. 

Read Banking Awareness PDF - 26 and 27 July 2020