Banking, Financial and Economic Awareness of 4 and 5 August 2020

1. Pranurja Solutions Ltd to set up India's third power exchange

• Pranurja Solutions Ltd will set up India's third power exchange as per the approval of CERC.
• Pranurja Solutions Ltd is promoted by BSE, PTC Ltd and ICICI Bank.
• The company will be allowed to set up power exchange only if promoters lower their shareholding to not more than 25%.
• Currently, PTC Ltd.’s shareholding in Pranurja Solutions Ltd stands at 49%.
• The shareholding of BSE and ICICI Bank stands at 41% and 9.9%, respectively.
• Currently, India's two power exchanges are IEX and PXIL. The share of IEX in power market stands at 95%.
• Government is expected to bring reforms in power sector such as market coupling and market-based economic dispatch (MBED) of electricity.

2. Review of ASEAN-India FTA can lead to two-time increase in trade

• While speaking at Indo ASEAN Oceanic Business Summit & Expo, Minister of State for Commerce and Industry has said that Review of ASEAN-India FTA can lead to two-time increase in trade between India and ASEAN.
• Countries in the Indo-ASEAN-Oceanic region (IAOR) can collaborate in the areas such as e-commerce, fintech, Artificial Intelligence and blockchain.
• Hardeep Singh Puri is the current Minister of State for Commerce and Industry and Indo ASEAN Oceanic Business Summit & Expo was organized by Confederation of Indian Industry (CII).
• In November 2019, India-ASEAN meet was held in Bangkok. From 2010-11 until 2018-19, India’s trade deficit with ASEAN has increased from $5 billion to $21.8 billion.
• While ASEAN consists of 10 members, IAOR consists of 19 countries. They are given in the following table.

3. Names of new Central Record Keeping Agency (CRAs) may be finalized by mid-September

• Names of new Central Record Keeping Agency (CRAs) may be finalised by mid-September by PFRDA.
• The CRA will operate in pension sector. Its functions are record keeping, administration and customer service for all NPS subscribers.
• Currently, NSDL and Karvy are two CRAs. While NSDL's term is over, Karvy's term is yet not over.
• PFRDA and Department of Financial services are also working on the draft FDI rules for the pension sector.

4. FluGuard, Sun Pharma's version of Covid-19 drug Favipiravir

• FluGuard has been launched by Sun Pharma as its version of Covid-19 drug Favipiravir.
• Sun Pharma has kept the price of FluGuard at lowest level of Rs 35 per tablet.
• Favipiravir was launched by Glenmark and othe rcompanie shave launched their own versions of the drug. It is an oral anti-viral treatment drug used for Covid-19 patients.
• It is a generic version of Avigan, which was produced by Japan’s Toyama Chemical.

5. RBI approves Sashidhar Jagdishan as MD and CEO of HDFC Bank

• The name of Sashidhar Jagdishan as MD and CEO of HDFC Bank has been approved by RBI.
• Current MD of HDFC Bank, Aditya Puri will retire on October 26, 2020.
• Sashidhar Jagdishan is currently holding several other posts of HDFC Bank.
• Kaizad Bharucha and Sunil Garg were two other candidates for the post of MD and CEO.
• HDFC Bank is India’s largest private sector bank.

6. Hong Kong’s extradition treaty with New Zealand suspended by China

• Hong Kong’s extradition treaty with New Zealand has been suspended by China.
• On 28 July 2020, New Zealand has also suspended its extradition treaty with Hong Kong.
• Earlier, Australia, Canada and U.K. have also suspended their extradition treaties with Hong Kong.
• In June 2020, China has imposed a National Security Law on Hong Kong and countries are protesting against the law.      

Read Banking Awareness PDF - 4 and 5 August 2020