Banking Awareness of 28, 29 and 30 October 2021

Topic: Taxation

1. Finance Ministry released 44 thousand crore rupees under the back-to-back loan facility in place of GST Compensation.

• Finance Ministry has released 44 thousand crore rupees under the back-to-back loan facility in place of GST Compensation.
• One lakh 15 thousand crore rupees were released earlier. Total amount released in the current financial year is now one lakh 59 thousand crore rupees.
• ₹75,000 crore and ₹40,000 crore were released respectively on July 15 and October 7 to the States and UTs.
• This release is in addition to normal GST compensation being released every two months (bimonthly) out of actual cess collection.
• Earlier, central government decided to borrow one lakh 59 thousand crore rupees and release it to States and UTs to meet the resource gap because of the short release of Compensation due to inadequate amount in the Compensation Fund.

Topic: Miscellaneous

2. The reconstitution of the Economic Advisory Council to the Prime Minister (EAC-PM) approved by PM Modi.

• The reconstitution of the Economic Advisory Council to the Prime Minister (EAC-PM) has been approved by PM Modi.
• EAC-PM has been constituted for a period of two years. Dr Bibek Debroy will be the Chairman of the seven-member Council.
• Rakesh Mohan (former Deputy Governor of RBI), Poonam Gupta and T.T. Ram Mohan have been appointed as part-time members of the reconstituted EAC-PM.
• Sajid Chenoy, Neelkanth Mishra and Nilesh Shah are other part-time members of the Council.
• The Council will analyze any issue, economic or otherwise, referred to it by the Prime Minister and advise him.
• EAC-PM is an independent body to advise the government on various socio-economic matters.

Topic: Appointments

3. Centre appoints KV Kamath as Chairperson of NABFID.

• Centre has appointed KV Kamath as the Chairperson of National Bank for Financing Infrastructure Development (NABFID).
• He will chair a board comprising 13 members. They include a chairman, four whole-time directors and two government nominees. The remaining will be independent directors.
• In March 2021, Parliament had passed a Bill to establish NABFID to fund infrastructure projects in the country.
• NABFID is a newly set up development finance institution in India. It has been set up to support the development of long-term, nonrecourse infrastructure financing in India.

Topic: RBI

4. Shaktikanta Das reappointed as RBI Governor for three years.

• The government has extended the term of Reserve Bank of India Governor Shaktikanta Das by another three years up to December 2024.
• He has been reappointed as Governor, Reserve Bank of India for a period of three years beyond 10.12.2021 or until further orders, whichever is earlier.
• He was appointed as the RBI’s 25th governor on December 11, 2018, for a period of three years. In 2018, he was appointed after the resignation of then Governor Urjit Patel.
• He has also served as a member of 15^th Finance Commission and G20 Sherpa of India.
• The decision of reappointment has been taken by the Appointments Committee of Cabinet headed by Prime Minister Narendra Modi.
• Earlier, Shaktikanta Das had held important positions in the Central and various state governments in areas like finance, taxation, industries and infrastructure.
• He has served as India’s Alternate Governor in the World Bank, Asian Development Bank (ADB), New Development Bank (NDB).

Topic: RBI

5. RBI imposes ₹56-lakh monetary penalty on Nainital Bank.

• RBI has imposed ₹56-lakh monetary penalty on Nainital Bank.
• The penalty has been imposed for non-compliance with RBI directions relating to divergence in NPA accounts and asset classification and provisioning, and classification and reporting of frauds.
• Statutory Inspection for Supervisory Evaluation (ISE) of the Nainital Bank with reference to its financial position as of March 31, 2019 was carried out by RBI.
• Nainital Bank is a wholly-owned subsidiary of Bank of Baroda. Bank of Baroda holds 98.57% stake in Nainital Bank.

Topic: Appointments

6. Jana Small Finance Bank appoints Subhash C Khuntia as its part-time Chairman.

• Jana Small Finance Bank has appointed Subhash C Khuntia as its part-time Chairman.
• He is a 1981-batch IAS officer. He was also Chairman of the IRDAI.
• Jana Small Financial Bank was founded in 2006 as a microfinance institution with the name Janalakshmi Financial Services.
• Janalakshmi Financial Services started functioning as SFB in March 2018. Jana Small Financial Bank is headquartered in Bengaluru.
• Under section 22(1) of the Banking Regulation Act of 1949, RBI had given license to Jana SFB.

Topic: Banking System

7. Karnataka bank wins ‘Top Organizations with Innovative HR Practices’ award.

• Karnataka Bank has won ‘Top Organizations with Innovative HR Practices’ award at the 19th edition of the Asia Pacific HRM Congress.
• Bank’s online e-learning module equips its workforce with the new age skills to cater to the customers' demand.
• Mahalingeshwara K, General Manager of the bank, received the award at an event in Bengaluru.
• Karnataka Bank is India's twelfth largest private sector bank. It is headquartered in Mangalore, Karnataka.

Topic: Appointments

8. Rajiv Anand appointed as Deputy Managing Director at Axis Bank.

• Rajiv Anand has been appointed as Deputy Managing Director at Axis Bank.
• He was already serving as Executive Director, Wholesale Banking, Axis Bank.
• Along with wholesale banking, he would work closely with the board in strengthening control and governance aspects.
• Axis Bank is the third-largest private bank in India that is headquartered in Mumbai. Its MD & CEO is Amitabh Chaudhry.

Topic: Indian Economy

9. Fiscal deficit for the first half of FY22 stood at 35 % of Budget Estimate.

• Fiscal deficit for the first half of FY22 stood at 35 % of Budget Estimate and reached three-year low level.
• In the first half of FY20 and FY21, fiscal deficit stood at 69.7% and 50.2% respectively.
• As per data by the Controller General of Accounts (CGA), the fiscal deficit was over ₹5.26-lakh crore.
• This was mainly due to better tax and non-tax collection and moderate expenditure in the six-month period.
• Revenue expenditure in first half of FY22 grew by 6.33 % compared to FY21 and 7.35 % compared to FY20.
• Non-interest revenue expenditure (NIRE) did not grow compared to FY20. It grew by 2.5 per cent in comparison with FY21.
• The output of the eight core sectors grew 4.4 per cent in September 2021.
• For the April-September period, the output growth of these eight sectors stood at 16.2 % against a contraction of 14.5 % in the same period last year.
• The eight core industries account for 40.27 % of the weight of items in the Index of Industrial Production (IIP).

Topic: Taxation

10. Madras High Court rules that onus lies on assessee to show that he had no willful intention in not filing of return.

• Madras High Court has ruled that the onus lies on the assessee to show that he had no willful intention in not filing of return.
• The ruling has been given by a single judge bench of the Court, comprising Justice CV Karthikeyan.
• The bench highlighted the ruling by the Supreme Court. The Supreme Court had stated that filing the return within the stipulated and mandatory period is a duty cast on any person who has to declare the income.
• The bench held that the taxpayer cannot lay the blame on his previous employer. It said that if the taxpayer is liable to file his return then he should file it within the stipulated time.

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