Banking, Financial and Economic Awareness of 28, 29 and 30 July 2020

1. Safeguard duty on solar cells and solar modules extended

• Safeguard duty on solar cells and solar modules has been extended by Finance Ministry.
• After the extension, the safeguard duty will continue for one more year.
• Earlier this month, Director-General of Trade Remedies (DGTR) has recommended extension of one year. 
• Safeguard duty rate will be at 14.90% for the first six months after July 30. It will be decreased to 14.50% for next six months.
• The duties will not be applicable on any developing country, except China, Thailand and Vietnam.
• Director-General of Trade Remedies (DGTR):
  • It comes under Ministry of Commerce and Industry.
  • It was formerly called Directorate General of Anti-dumping and Allied Duties.
  • Directorate General of Anti-dumping and Allied Duties was formed in 1998. It was renamed as DGTR in May 2018.

2. Two more dispute settlement panels set up by WTO

• WTO has set up two more dispute settlement panels against India's import duties on Information and Communication Technology (ICT) products.
• This time the panels have been set up at the request of Japan and Taiwan. Earlier, a panel was set up at the request of European Union (EU).
• The agreement for setting up of panels was achieved at the meeting of the Dispute Settlement Body of the WTO.
• India has blocked Japan's first request for a dispute settlement panel in June 2020 on the grounds of its sovereignty.
• Japan and Taiwan have submitted their requests for dispute settlement panels because they could not resolve dispute through consultations with India.

3. The head office of Anil Ambani Group taken into possession

• Reliance Centre, the head office of Anil Ambani Group has been taken into possession by YES Bank.
• The head office is located in Mumbai. The office and one other property of group have been taken into possession under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act.
• The bank has taken this measure to recover its bad loans.
• SARFAESI Act was enacted on December, 2002. Under the act, banks can recover loans by auctioning properties (residential or commercial) of defaulter.

4. B Ramesh Babu, new MD and CEO of Karur Vysya Bank 

• B Ramesh Babu has become MD and CEO of Karur Vysya Bank and his appointment became effective on July 29, 2020.
• His appointment will remain effective for three years.
• Earlier, he has served Deputy Managing Director and Chief Operating Officer of SBI.
• Karur Vysya Bank is a Scheduled Commercial Bank headquartered in Karur, Tamil Nadu. It was formed in 1916.

5. Jin Liqun again elected as President of AIIB

• Jin Liqun has been again elected as President of Asian Infrastructure Investment Bank (AIIB).
• His term will be for five years and start from January 16, 2021 onwards.
• Jin Liqun has been re-elected by AIIB's board of governors during 2020 annual meeting of AIIB.
• 2021 annual meeting of AIIB will take place from October 27-28, 2021 in Dubai, United Arab Emirates.
• 2020 annual meeting was 5th Annual Meeting of AIIB. Currently, AIIB has more than 100 approved members.
• Asian Infrastructure Investment Bank (AIIB):
  • It was started in January 2016.
  • Its headquarters are located in Beijing.
  • It is a multilateral development bank.
  • Its aim is to help infrastructure development in Asia-Pacific region. 

6. RBI should permit one-time loan restructuring for certain sectors

• RBI should permit one-time loan restructuring for sectors such as Tourism and hospitality, construction and real estate and aviation.
• As per RBI's systemic risk survey, these sectors are top three sectors affected by COVID-19 pandemic.
• India Inc has demanded that either RBI should extend moratorium or allow one-time loan restructuring or recast.  
• But, bankers do not want moratorium or across the board loan restructuring scheme. They are in favour of sector-specific loan restructuring scheme.
• RBI had earlier allowed moratorium for 3 months and extended it till August 31. It had also hinted no extension of moratorium.
• Systemic risk survey was started by RBI in 2012. 18^th systemic risk survey was recently released. It was carried out during April-May 2020.

7. Three million US dollar grant approved by ADB

• Three million US dollar grant has been approved by Philippines headquartered Asian Development Bank.
• The grant will be given to India from ADB's Asia Pacific Disaster Response Fund (APDRF).
• It will support Indian government in its emergency response to the COVID-19 pandemic.
• On 28^th April, 1.5 billion US dollar COVID-19 Active Response and Expenditure Support (CARES) Programme was approved by ADB.
• Asian Development Bank (ADB):
  • It was formed on December 1966.
  • It is headquartered in Mandaluyong, Philippines.
  • Its current president is Masatsugu Asakawa.

8. SEIL's SECI 1, 2 and 3 wind projects dedicated to nation

• Sembcorp Energy India Limited (SEIL)'s SECI 1, 2 and 3 wind projects were dedicated to nation by Union Power Minister.
• Solar Energy Corporation of India (SECI) has awarded these projects to SEIL.  
• After commissioning 300MW SECI 3 wind project, Sembcorp has become first independent power producer to commission its projects.
• SEIL has entered Indian markets in 2011. It is a wholly-owned subsidiary of Singapore-based Sembcorp industries.

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