Banking, Financial and Economic Awareness of 3 and 4 October 2021

Topic: Infrastructure and Energy

1. Cochin International Airport achieves 3rd position in international traffic.

• Cochin International Airport has achieved 3rd position in international traffic.
• Cochin International Airport Ltd (CIAL) has become India’s third airport in terms of international traffic for three consecutive months from July 2021.
• The airport has seen high growth in international traffic for October as more foreign carriers scheduled frequent services from Kochi.
• Sri Lankan Airlines has recently started daily operations in Colombo. CIAL is handling 58 international arrival/departure operations a day.

Topic: Regulatory Bodies/Financial Institutions

2. PFRDA to open ‘on tap’ licensing window for fund managers next year.

• PFRDA Chairman Supratim Bandyopadhyay has said that PFRDA will open its ‘on tap’ licensing window for fund managers next year.
• Pension Fund Regulatory & Development Authority (PFRDA) had opened an “on tap” window from July 1-31. The window was opened for awarding licences to sponsors of pension funds.
• PFRDA received two applications during July 1-31. PFRDA Board has approved applications of Tata Asset Management Company and Max Life Insurance.
• The number of pension fund managers will increase to 10 with the award of licences to Tata Asset Management and Max Life Insurance.

Topic: Taxation

3. Income Tax notices issued under Section 148 after March 31 quashed by Allahabad High Court.

• Income Tax notices were issued under Section 148 after March 31, 2021 have been quashed by Allahabad High Court.  
• The notices can be issued by the department again under the new mechanism as prescribed by the Finance Act 2021.
• Finance Act 2021 has substituted provisions related to Sections 147 (income escaping assessment), 148 (issue of notice where income has escaped assessment), 149 (time limit for notice) and 151 (sanction for issue of notice).
• It inserted new Section 148 A. Section 148 A prescribes for conducting inquiry, providing opportunity before the issue of notice under Section 148.
• The court was hearing writ petitions challenging the validity of re-assessment proceedings initiated after April 1, 2021, under Section 148 of the Income Tax Act.

Topic: Taxation

4. Rules to bury retrospective taxation notified by Finance Ministry.

• Rules to bury retrospective taxation have been notified by Finance Ministry.
• The rules have nine specified conditions. Six of these conditions prescribe that companies concerned will irrevocably withdraw, discontinue and not pursue any lawsuits, arbitration, conciliation or mediation either in India or abroad.
• Two conditions are related to a structure for dealing with possible litigations in the future. Final condition is on the public declaration.
• A new subpart, ‘J’ and rules ‘11UE & 11UF’ have been inserted in the Income Tax Rules 1962.
• To give effect to the amendment made by the 2021 Finance Act, there are four forms.
  • Interested companies will be required to submit an undertaking in form 1 within 45 days from the date of commencement of the rules.
  • Tax authority will have 15 days to pass an order and issue a certificate in Form 2.
  • The entity concerned will have 2 months to take away the litigation(s) and give information to the Department via Form 3.
  • Jurisdictional Principal Commissioner or Commissioner will give orders in form 4 stating that tax demand orders shall be deemed to have never been passed.
• The order will be binding on Assessing Officer (AO), AO will revoke the attachment (if any) and issue a refund within 15 days.

Topic: Committees/Commissions/Taskforces

5. IFSCA forms expert committee on sustainable finance.

• International Financial Services Centres Authority (IFSCA) has formed an expert committee on sustainable finance under the chairmanship of CK Mishra.
• The expert committee has been formed to recommend an approach towards the development of Sustainable Finance Hub and provide a road map for it.
• CK Mishra is former Secretary to Government of India, Ministry of Environment, Forest and Climate Change.
• The Committee will study current regulatory practices in sustainable finance across major international financial jurisdictions.
• It will recommend a robust framework to develop a world-class sustainable finance hub at IFSCA.

Topic: Appointments

6. Ministry of Corporate Affairs assigns charge of NFRA Chairperson to CCI Chairman.

• Ministry of Corporate Affairs has assigned a charge of National Financial Reporting Authority (NFRA) Chairperson to Competition Commission of India (CCI) Chairman, Ashok Kumar Gupta.
• Gupta will perform duties of NFRA Chairperson as wells as Chairperson of CCI for a period of three months from October 1.
• Current NFRA Chairperson Rangachari Sridharan will demit office on Thursday after the end of his three-year term as NFRA Chief.
• Established on 1 October 2018, NFRA supervises the work of auditors, establishes and enforces standards of accounting and auditing.

Topic: Appointments

7. BC Patnaik takes charge as MD of Life Insurance Corporation of India.

• BC Patnaik has taken charge as Managing Director (MD) of Life Insurance Corporation of India.
• He was appointed as MD by the Government of India notification dated July 5, 2021.
• Department of Investment and Public Asset Management (DIPAM) had earlier shortlisted Cyril Amarchand Mangaldas as legal advisor for LIC initial public offering (IPO).

Topic: Miscellaneous

8. World Bank to provide $150 million loan to Chennai’s Sustainable Urban Services Programme.

• World Bank will provide a $150 million loan to support Government of Tamil Nadu’s Chennai City Partnership: Sustainable Urban Services Programme.
• The programme aims to improve quality of four key urban services- water supply and sewerage, mobility, health and solid waste management.
• The loan will help Tamil Nadu Government, Greater Chennai Corporation (GCC), and key service agencies adopt new approaches to service delivery.  
• Chennai Metropolitan Area is India’s fourth-most populous metropolitan area.
• Water resource management including water supply and sewerage services, urban mobility, health services and solid waste management are major components of the programme.

Read Banking Awareness PDF - 3 and 4 October 2021