Banking, Financial and Economic Awareness of 28 and 29 October 2020

1. CIC issues notice to CPIOs of MeitY, NIC and NeGD

• Central Information Commission (CIC) has issued notices to Central Public Information Officers (CPIOs) of the Ministry of Electronics and Information Technology (MeitY), National Informatics Centre (NIC) and National E-Governance Division (NeGD).
• CIC issued notices to CPIOs of MeitY, NIC and NeGD as they did not provide information about the creation of Aarogya Setu app.
• The complainant has sought information about the laws under which Aarogya Setu was created and is handled.
• CIC ordered CPIOs of MeitY, NIC and NeGD to appear on November 24.
• Section 20 of the RTI Act, 2005 provides for penalties if CPIOs do not provide information within the specified time.
• Aarogya Setu app: Government has launched the Aarogya Setu app on April 2. NIC under MeitY has developed it. It is available in 11 languages.    
• Central Information Commission (CIC):
  • CIC is a statutory body that was constituted under the Right to Information Act, 2005.
  • It includes the Chief Information Commissioner and not more than 10 Information Commissioners. They are appointed by the President.

2. Government releases Consolidated FDI Policy circular of 2020

• FDI Division of Department for Promotion of Industry and Internal Trade under Ministry of Commerce and Industry has released Consolidated FDI Policy circular of 2020.
• Consolidated FDI Policy circular of 2020 has become effective from October 15, 2020.
• Before Consolidated FDI Policy circular of 2020, the Consolidated FDI Policy circular was released in 2017.
• Consolidated FDI Policy circular of 2020 is a single document that provides all the FDI policy decisions taken by the government.
• The circular includes restrictions applied by the government on investments from land boundary sharing countries in April 2020.
• Government has also permitted a maximum 26% FDI through government approval route in uploading or streaming of news and current affairs through digital media.
• Persons who are resident outside India can make the foreign investment either through Foreign Direct Investment or Foreign Portfolio Investment (FPI).  FDI is a source of non-debt financial resources.
• FDI means investment by persons who are resident outside India through shares, bonds, etc. in an unlisted Indian company.
• FDI also means investment by persons who are resident outside India in 10% or more of post-issue paid-up equity capital (paid-up share capital after issuance of shares) of a listed Indian company.

3. 10^th India-UK Economic and Financial Dialogue held virtually

• India and UK have signed agreements on financial services, infrastructure and sustainable finance at 10^th India-UK Economic and Financial Dialogue.
• Agreements include a new strategic partnership for faster development of Gujarat International Finance Tec (GIFT) City in the form of an international financial centre.
• The agreements also include support for developing the regulatory capacity of International Financial Services Centre Authority, a statutory body under the Department of Economic Affairs, Ministry of Finance.
• Two countries also agreed to establish a new UK-India Sustainable Finance Forum, new Financial Markets Dialogue and new UK-India Partnership on Infrastructure Policy and Financing to support the Indian National Infrastructure Pipeline.
• India has allowed Indian companies to directly list on the London Stock Exchange.
• SIDBI and the UK Government supported UK-India Fast Track Start-up Fund will fund early-stage tech start-ups.
• UK will be the President of G7 in 2021. Along with Italy, it will jointly host COP26 in November 2021. India will be the President of G20 in 2022.

4. SBI and JBIC sign $1 billion loan agreement

• SBI and Japan Bank for International Cooperation (JBIC) have signed $1 billion loan agreement.
• JBIC will finance $600 million and $400 million will be co-financed by SMBC, MUFG Bank, Mizuho Bank, Shizuoka Bank and Bank of Yokahama.
• JBIC will provide a guarantee for $400 million co-financed by other banks.
• The fund is aimed at providing funds to Japanese automobile manufacturers in India.
• State Bank of India (SBI):
  • It is a nationalized public sector bank and largest lender of India.
  • In 2017, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bharatiya Mahila Bank were merged with State Bank of India.
  • Life Insurance Corporation of India (LIC) is the largest non-promoter shareholder in SBI.
  • It is headquartered in Mumbai. Its tagline is The Banker to Every Indian. Its chairman is Dinesh Kumar Khara.

5. NTPC signs foreign currency loan agreement with JBIC

• NTPC has signed foreign currency loan agreement with Japan Bank for International Cooperation (JBIC), which is a Japanese investment insurance agency.
• The loan agreement has been signed under JBIC’s Global Action for Reconciling Economic growth and Environment preservation (GREEN) initiative.
• The loan agreement is for the Japanese Yen (JPY) 50 billion. NTPC will use loan for flue-gas desulphurization (FGD) and renewable energy projects. FGD is the removal of sulfur dioxide from the exhaust of fossil-fuel based power plants.
• JBIC will give 60 % of loan and other banks will give the remaining amount. They are Sumitomo Mitsui Banking Corporation, Bank of Yokohama Limited, San-In Godo Bank Limited, Joyo Bank Limited and Nanto Bank Limited.

6. Government issues new safety norms for construction equipment vehicles

• Ministry of Road Transport and Highways (MoRTH) has issued new safety norms for construction equipment vehicles.
• New norms will be implemented in Phase-I (April 2021) and Phase-II (April 2024).
• New norms include the presence of visual display, handrail and seat belt anchorages.
• Central Motor Vehicles Rules (CMVR), 1989 also provide some safety norms for construction equipment vehicles.

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