Banking, Financial and Economic Awareness of 4 and 5 May 2021

Topic: Taxation

1. Income Tax Department notifies a threshold for Significant Economic Presence.

• Income Tax Department has notified a threshold for Significant Economic Presence (SEP), effective from April 1, 2022.
• As per the notification dated May 3, the amount of aggregate payments from transaction by a non-resident with any person in India shall be two crore rupees.
• As per the notification dated May 3, the number of users engaged in interaction shall be three lakhs.
• In India, the income attributable on account of the ‘significant economic presence’ of a foreign entity in India is taxable. SEP was introduced vide Finance Act 2018. It is connected with the taxation of non-residents.

Topic: Appointments

2. RM Sundaram appointed as Director of IIRR.

• Raman Meenakshi Sundaram has been appointed as Director of the Indian Institute of Rice Research (IIRR).
• He has achieved the development of the first biotechnology product in rice, Samba Mahsuri. It has a low glycemic index. It is resistant to bacterial blight.
• He was already working as Principal Scientist (Biotechnology) at the Crop Improvement Section of IIRR.
• Indian Institute of Rice Research (IIRR) is located in Hyderabad, Telangana.

Topic: Banking System

3. Indian Bank and BSNL sign MoU.

• Indian Bank and BSNL have signed a Memorandum of Understanding (MoU).
• Under the MoU, BSNL will provide telecom services to the Indian Bank at competitive rates.
• Indian Bank is already using the services of BSNL and its subsidiary MTNL for its Wide Area Network.
• Indian Bank was founded in 1907. Its headquarters are in Chennai. Ms. Padmaja Chunduru is its MD & CEO. From 1 April 2020, Allahabad bank has been merged with Indian Bank.
• Bharat Sanchar Nigam Limited (BSNL):
  • It was founded in 2000. It is a Public Sector Undertaking wholly owned by Government of India.
  • Pravin Kumar Purwar is its chairman & MD.  It is headquartered in New Delhi.
  • It provides telecom services all over India except Delhi and Mumbai.

Topic: RBI

4. Fine of Rs. 25.50 lakh imposed on Jumbo Finvest (India) Ltd.

• RBI has imposed a fine of Rs. 25.50 lakh on Jumbo Finvest (India) Ltd.
• Jumbo Finvest (India) Ltd did not comply with ‘Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016’.
• It did not comply with ‘Reserve Bank of India, Know Your Customer (KYC) Directions, 2016’ also.
• RBI found non-compliance with its direction during statutory inspection of Jumbo Finvest (India).

Topic: Appointments

5. Ramya A Muraledharan becomes Director, Ratings at Brickwork Ratings.

• Ramya A Muraledharan has become Director, Ratings at Brickwork Ratings.
• She has earlier worked with HDFC Bank as a vice-president.
• She was also associated with Axis Bank for more than 8 years.
• Brickwork Ratings is a Credit Rating Agency registered with SEBI.

Topic: Banking System

6. Rs 3 crore penalty imposed by RBI on ICICI Bank.

• Rs 3 crore penalty has been imposed by RBI on ICICI Bank.
• The bank did not comply with RBI’s directions related to shifting securities from one category to another.
• RBI has found non-compliance and issued a show cause notice to the bank.
• ICICI Bank (ICICI Bank Limited) is a private sector bank. Girish Chandra Chaturvedi is chairman of its board of directors. Its MD & CEO is Sandeep Bakhshi.

Read Banking Awareness PDF - 4 and 5 May 2021