1. Monetary penalty imposed by RBI on four co-operative banks.
- RBI has imposed monetary penalty on Saraswat Co-operative Bank, SVC Co-operative Bank, Andhra Pradesh Mahesh Co-operative Urban Bank, and Ahmedabad Mercantile Co-operative Bank.
- The monetary penalty on the four banks has been imposed because of non-compliance with RBI’s directions.
- The monetary penalty on Hyderbad-based Andhra Pradesh Mahesh Co-operative Urban Bank has been imposed for non-compliance with RBI’s directions on ‘Interest Rate on Deposits’ and ‘Know Your Customer’.
- The monetary penalty on Ahmedabad Mercantile Co-operative Bank has been imposed for non-compliance with RBI’s directions on ‘Interest Rate on Deposits.’
- Co-operative banks:
- It is a financial entity that belongs to its members, who are at the same time the owners and the customers of their bank.
- These banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts, etc).
2. Chandan Sinha and Manjeev Singh Puri appointed as directors on the board of RBL Bank.
- Chandan Sinha and Manjeev Singh Puri have been appointed by RBL Bank as directors on its board.
- The bank’s board now has 11 members. Prakash Chandra is the Chairman of the Board of RBL Bank.
- RBL Bank is an Indian private sector bank. It was earlier known as Ratnakar Bank. It is headquartered in Mumbai. Its MD and CEO is Vishwavir Ahuja.
Topic: Indian Economy/Financial Market
3. Anti-dumping duty on vitrified tiles from China extended by Finance Ministry till 31 December 2021.
- The validity of the existing anti-dumping duty on the import of vitrified tiles from China has been extended till 31 December 2021.
- In January 2021, Directorate General of Trade Remedies (DGTR) started sunset review investigations on imports of glazed/ unglazed porcelain/vitrified tiles from China.
- In 2016, Anti-dumping duty was imposed on Vitrified tiles from China for five years. This duty was valid till 28 June and now valid till December 31.
- DGTR in the Commerce Ministry has started anti-dumping investigations on Mono Ethylene Glycol (MEG) imports from Kuwait, Saudi Arabia and the US.
- MEG is used in the production of polyethylene terephthalate (PET), which is converted into plastic bottles.
Topic: Indian Economy
4. NCAER expects Indian economy to grow 11.5% in June quarter.
- National Council of Applied Economic Research (NCAER) expects the Indian economy to grow 11.5% in June quarter.
- NCAER expects that the Indian economy will grow in the range of 8.4-10.1% in FY22 over a negative base.
- As per NCAER, India needs expansionary fiscal policy to put the economy on a sustainable growth path.
- In its latest quarterly review of the economy on Friday (25 June), NCAER said that contractionary fiscal policy in FY21, sharply reducing the deficit, will delay economic recovery.
- As per NCAER, India’s fiscal deficit is being reduced sharply from 9.2% of GDP in FY21 to 7.2% in FY22.
- NCAER said that expenditure in the 2021-22 budget was reduced from Rs 35.1 trillion in 2020-21 to Rs 34.8 trillion in 2021-22.
- As per NCAER, planned expenditure in FY22 at 16.3% of GDP is significantly lower than 17.8% in FY21.
- Expansionary fiscal policy means increased spending and tax cuts by government to increase aggregate demand and economic growth.
Topic: Infrastructure and Energy
5. The second unit of NTPC’s Tanda Super Thermal Power Station becomes operational.
- The 660 MW capacity second unit at NTPC’s Tanda Super Thermal Power Station in Uttar Pradesh has become operational.
- 250MW capacity second unit at Barauni Thermal Power Station in Bihar has completed trial operation. So, NTPC has added 910 MW capacity to its installed capacity.
- On 27 June, NTPC has announced a target to install 60 GW of renewable energy capacity by 2032.
- NTPC also aims at 10% reduction in net energy intensity by 2032.
Topic: Indian Economy
6. Finance Minister Nirmala Sitharaman announces measures exceeding Rs 6.29 lakh crore.
- Finance Minister Nirmala Sitharaman has announced measures exceeding Rs 6.29 lakh crore.
- The measures are mainly focused on tourism and health sectors. They include a new loan guarantee scheme, enhancement of the Emergency Credit Line Guarantee Scheme (ECLGS) and others.
- Government has announced ₹1.1-lakh crore Loan Guarantee Scheme for Covid Affected Sectors. Out of this, ₹50,000 crore is for the health sector and the remaining part is for tourism and other sectors.
- The scheme will guarantee loans for expansion and new projects in cities other than the eight metros. Guarantee coverage will be 50 % for the expansion project and 75% for a new project in districts other than aspirational districts.
- In aspirational districts, guarantee coverage will be 75% for all projects.
- Government will provide working capital/personal loans to people in the tourism sector. The scheme will cover 10,700 regional level tourist guides recognised by the Tourism Ministry and State governments.
- It will also cover a thousand Travel and Tourism Stakeholders (TTS) recognised by the Tourism Ministry.
- While tourist guides can get up to ₹1 lakh each, Travel and Tourism Stakeholders (TTS) can get loans up to ₹10 lakh each.
- Credit Guarantee Scheme for Micro Finance Institutions (MFI) that aims to benefit the smallest borrowers has also been announced.
Topic: Regulatory Bodies/Financial Institutions
7. SEBI overhauls rules on appointment, removal and remuneration of Independent Directors (IDs).
- SEBI has overhauled rules on appointment, removal and remuneration of Independent Directors (IDs).
- The overhaul of rules is aimed at giving more say to shareholders while lowering the influence of promoters.
- SEBI said that Independent Directors should be appointed/re-appointed and removed through a special resolution of shareholders for all listed entities.
- SEBI has also introduced a limit for shareholder approval to appoint all directors including Independent Directors (IDs).
- As per SEBI, shareholder approval shall be taken at next general meeting, or within 3 months of the appointment on the board, whichever is earlier.
- A cooling-off period of three years has been introduced for Key Managerial Personnel or employees of promoter group companies, for appointment as an ID.
- As per the SEBI proposal, the changes will be in place from January 1, 2022.
- Some radical changes such as allowing independent directors to receive profit-linked commissions and employee stock ownership plan (ESOP) were also proposed by SEBI Board.
- SEBI has also permitted resident Indian fund managers to be constituents of foreign portfolio investors.
- It has also lowered minimum investment level in listed infrastructure investment trusts (InViTs) and Real Estate Investment Trusts (REITS) from Rs 50,000 to Rs 10,000-15,000.
- SEBI has increased reward to informants from Rs 1 crore to Rs 10 crore. This has been done to improve information flow on insider trading cases.
8. RIL and ADNOC sign agreement to build polyvinyl chloride (PVC) production facility at TA’ZIZ in Ruwais, Abu Dhabi.
- Reliance Industries Ltd (RIL) and Abu Dhabi National Oil Company (ADNOC) have signed an agreement to build polyvinyl chloride (PVC) production facility at TA’ZIZ in Ruwais, Abu Dhabi.
- Under the agreement, the companies will also build chlor-alkali, ethylene dichloride production facility at TA’ZIZ in Ruwais, Abu Dhabi.
- Chlor-alkali is used in water treatment and in the manufacture of textiles and metals. It is also used in the production of caustic soda, which is required for aluminum production.
- Ethylene dichloride is used to produce polyvinyl chloride (PVC).
9. Cipla gets regulatory approval to import Moderna’s Covid vaccine for use in India.
- Cipla has got regulatory approval to import Moderna’s Covid vaccine for use in India.
- Moderna’s mRNA vaccine is first Covid-19 vaccine, which has got Emergency Use Authorisation (EUA) without bridge trials in India.
- India will now have four Covid vaccines — Covaxin, Covishield, Sputnik and Moderna.
- Cipla is a Mumbai-based Indian pharmaceutical company. Umang Vohra is its CEO. Moderna is an American pharmaceutical and biotechnology company.