Banking Awareness of 27, 28 and 29 November 2021

Topic: RBI

1. RBI raises private bank promoters’ stake limit from 15% to 26%.

• RBI has raised private bank promoters’ stake limit from 15% to 26%.
• RBI has also given small finance banks (SFBs) more time to list.
• These steps are part of 21 recommendations of an Internal Working Group that have been accepted by the RBI.
• Internal Working Group has given 33 recommendations. RBI said it is examining remaining 12 recommendations.
• RBI formed the Internal Working Group on June 12, 2020 to review the extant guidelines on ownership and corporate structure for Indian private sector banks.
• The promoter can decide to lower down the holding to below 26%, any time after the five-year lock-in.
• Minimum requirement on track record of experience of promoting entity would be 10 years for Universal Banks and 5 years for SFBs.
• RBI has set a track record requirement of five years for Payments Bank (PB) intending to convert into an SFB.
• RBI said small finance banks should be listed within eight years of commencement of operation.

Topic: Taxation

2. Auto-rickshaw services delivered through e-commerce platforms to attract 5% GST.

• From January 1, 2022, auto-rickshaw services delivered through e-commerce platforms will be subject to a 5% GST.
• On 18 November, Revenue Department under Finance Ministry withdrew the GST exemption available to auto-rickshaws delivering passenger transport services through e-commerce platforms.
• The passenger transport services provided by auto rickshaw drivers through offline/ manual mode would continue to be exempted.

Topic: RBI

3. The board of Anil Ambani’s Reliance Capital superseded by RBI.

• RBI superseded the board of Anil Ambani’s Reliance Capital by citing defaults in meeting various payment obligations to creditors.
• RBI appointed Nageswar Rao Y as the Administrator. Nageswar Rao Y is a former Executive Director of Bank of Maharashtra.
• RBI will soon initiate resolution process. Anil Ambani’s Reliance Capital is third NBFC facing RBI’s insolvency proceedings.
• Dewan Housing Finance Corporation Ltd (DHFL) and two Srei Group firms are other two NBFC’s facing RBI’s insolvency proceedings.
• DHFL has been acquired by the Piramal group, the debt resolution process for Srei has just started.

Topic: RBI

4. RBI imposes ₹1 crore penalty each on Union Bank of India and State Bank of India.

• RBI has imposed ₹1 crore penalty each on Union Bank of India and State Bank of India (SBI).  
• The monetary penalty on Union Bank of India has been imposed for non-compliance with RBI’s directions relating to fraud classification and reporting and sale of stressed assets.
• The monetary penalty on SBI has been imposed for violation of a provision in the Banking Regulation (BR) Act, 1949, relating to the extent of shares a bank can hold in borrower companies.
• State Bank of India held shares in borrower companies of an amount exceeding 30% of paid-up share capital of those companies.

Topic: Corporates/Companies

5. APSEZ created an environmental, social and governance (ESG) role within the company.

• Adani Ports and Special Economic Zone (APSEZ) has created an environmental, social and governance (ESG) role within the company.
• The company has hired Charanjit Singh to head it. Charanjit Singh is a climate finance and clean energy domain expert. APSEZ has set a goal of becoming carbon neutral by 2025.
• New York-based finance company MSCI said it will remove APSEZ from its MSCI ACWI IMI Climate Change Indexes from December 1.
• MSCI cited APSEZ’s involvement in the Carmichael mine, rail and coal export terminal in Queensland, Australia for its decision.

Topic: Banking System

6. NBFC Agriwise Finserv enters into co-lending agreement with Central Bank of India for agri-loan disbursal.

• NBFC Agriwise Finserv has entered into co-lending agreement with Central Bank of India for agri-loan disbursal.  
• The co-lending agreement seeks to disburse agri-loans speedily. It will ensure that the farmer, agri and allied community get finance at affordable rates in a simple, transparent and speedy manner.
• Agriwise Finserv Limited is an agri-focussed Non-Banking Financial Company.

Topic: Banking System

7. Bajaj Allianz General Insurance enters into partnership with TropoGo for drone insurance.

• Bajaj Allianz General Insurance has entered into partnership with TropoGo for drone insurance.
• Damage to the Drone and Payload it carries, Third Party Liability along with additional covers for BVLOS (Beyond Visual Line of Sight) Endorsement and Night Flying Endorsement will be covered under the product.
• Bajaj Allianz General Insurance has become 4th insurer to offer drone cover. HDFC Ergo was the first insurer to launch a drone insurance cover in June 2020.
• HDFC Ergo was followed by ICICI Lombard in August 2021, and Tata AIG in October 2021.

Topic: Appointments

8. Former SBI chairman Rajnish Kumar appointed as independent non-executive director by Hero MotoCorp.

• Former SBI chairman Rajnish Kumar has been appointed as independent non-executive director by Hero MotoCorp.
• Hero MotoCorp has also appointed Vasudha Dinodia as an additional and non-executive director, with effect from 25 November.
• Rajnish Kumar was the SBI Chairman till October 2020. During his tenure, SBI developed YONO, a digital platform.
• Hero MotoCorp recently appointed Camille Tang as an independent non-executive director on its board.

Topic: Appointments

9. CBIC appointed IRS officer Vivek Johri as a chairman.

• Vivek Johri, an Indian Revenue Service officer from the 1985 batch, has been appointed as the chairman of the Central Board of Indirect Taxes and Customs (CBIC).
• Johri is currently serving on the board of CBIC as a member.
• He will succeed M Ajit Kumar, who is completing his term on November 30.

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