Banking, Financial and Economic Awareness

Topic: RBI

1. Instructions on governance for banks issued by RBI.

  • Instructions on governance for banks have been issued by RBI.
  • The instructions are meant for private sector banks, small finance banks (SFBs) and wholly owned subsidiaries of foreign banks.
  • Foreign banks operating as branches in India will not come under the instructions issued by RBI.
  • The instructions have come into effect from the date of issue of the circular. But, banks have been allowed to comply with instructions by October 01, 2021. 
  • As per RBI, the same incumbent cannot hold the post of MD & CEO or whole-time director for more than 15 years.
  • MD & CEO or whole-time director who is also a promoter/ major shareholder cannot hold posts for more than 12 years.
  • RBI has said that an individual will be eligible for reappointment on the post of MD & CEO or whole-time director after a minimum gap of three years.
  • Individuals will be eligible for reappointment if the board considers the reappointment necessary and desirable.
  • RBI has allowed the upper age limit for MD & CEO and whole-time director to continue at 70 years.
  • Boards of banks can prescribe a lower retirement age for MD & CEO and whole-time director.

Topic: Appointments

2. Arun Raste to be appointed as new MD & CEO of NCDEX.

  • Arun Raste will be appointed as the new Managing Director and CEO of National Commodity and Derivatives Exchange Ltd (NCDEX) for five years.
  • His appointment has been approved by the Securities and Exchange Board of India (SEBI).
  • At present, he is the Executive Director of the National Dairy Development Board (NDDB).
  • He had also served as director of the Mother Dairy Fruit & Vegetable Pvt Ltd.
  • National Commodity and Derivatives Exchange Ltd (NCDEX):
    • It was formed in 2003 as a public limited company.
    • It is an online commodity exchange platform.
    • It brings buyers and sellers together through its electronic trading platform.

Topic: RBI

3. FIDC request postponement of guidelines for appointment of statutory auditors of banks and non-banking finance companies (NBFCs).

  • Finance Industry Development Council (FIDC) has requested RBI to postpone guidelines for the appointment of statutory auditors of banks and NBFCs to April 1, 2022.
  • Finance Industry Development Council (FIDC) is a representative body of assets and loan financing NBFCs.
  • FIDC has said that postponement will ensure smooth implementation and minimum disruption. FIDC has also suggested RBI reduce the cooling period from six years to five years.
  • On 27 April, RBI had issued guidelines for the appointment of statutory auditors for commercial banks, urban cooperative banks (UCBs) and NBFCs for the financial year 2021-22 and onwards.

Topic: Appointments

4. T V Somanathan designated as new Finance Secretary.

  • T V Somanathan has been designated as the new Finance Secretary.
  • As per the order issued by Personnel Ministry, Appointments Committee of the Cabinet has approved his appointment as Finance Secretary.
  • He has been serving as Secretary, Department of Expenditure in Ministry of Finance since December 2019. He is a 1987 batch IAS officer of Tamil Nadu cadre.
  • The senior-most officer among all the secretaries in the Ministry of Finance is designated as the Finance Secretary.

Topic: Indian Economy

5. Anti-dumping duty imposed on imports of TDI.

  • Anti-dumping duty has been imposed on imports of Toluene Diisocyanate (TDI) from the Chinese Taipei, EU, Japan, South Korea and US.
  • Directorate General of Trade Remedies (DGTR) has recommended the imposition of TDI imports from these countries in January 2021. Now, Finance Ministry (Revenue Department) has imposed it.
  • The petition for anti-dumping duty on TDI imports from these countries was filed by Narmada Chematur Petrochemicals Ltd.
  • Narmada Chematur Petrochemicals Ltd is the only producer of TDI in India.
  • TDI is an organic chemical used in the production of flexible polyurethane foam, which is used in products such as bedding, furniture, automotive interiors, carpet underlay and packaging.

Topic: MoUs/Agreements

6. Customs co-operation agreement with the UK approved by Union Cabinet.

  • Union Cabinet has approved customs co-operation agreement with the UK.
  • The signing and ratification of an agreement between India and the UK on Customs Cooperation and Mutual Administrative Assistance in Customs Matters has been approved by Union Cabinet.
  • It will help in the availability of relevant information for the prevention of customs offences.
  • Mutual administrative assistance in customs matters is covered under the agreement.

Topic: Miscellaneous

7. Marine Products Export Development Authority certifies SVR Hatcheries.

  • Marine Products Export Development Authority (MPEDA) has certified SVR Hatcheries in the East Godavari District of Andhra Pradesh.
  • SVR Hatcheries has become the first shrimp hatchery in India to get SHAPHARI certification for antibiotic-free seed production.
  • SHAPHARI certification helps farmers in finding good quality shrimp seed producers. It benefits certified hatcheries by higher demand for their seeds among the farmers.
  • Marine Products Export Development Authority (MPEDA) is a statutory body. It was established in 1972. K S Srinivas is its chairman.

Topic: Indian Economy

8. India’s GDP growth is expected to recover to 11% in current fiscal.

  • As per Asian Development Bank, India’s GDP growth is expected to recover strongly to 11% in the current fiscal.
  • In its latest Asian Development Outlook (ADO), ADB expects India’s economic growth to slow to 7% in FY 2022.
  • Strong recovery in the current fiscal will be due to continued economic recovery driven by increased public spending, vaccine launch and a rise in domestic demand.
  • In FY2022, Inflation is projected to decrease to 4.8%. ADB said that this would help RBI in maintaining an accommodative stance.

 

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