1. MPC unanimously decides to keep policy repo rate unchanged at 4%.
- Monetary Policy Committee (MPC) has unanimously decided to keep the policy repo rate unchanged at 4%.
- It has also decided to maintain an accommodative stance as long as necessary to support growth.
- MPC’s bi-monthly meeting was held recently. MPC has kept the repo rate unchanged at 4% since May 2020. In May 2020, the repo rate was cut by 40 basis points from 4.40%.
- RBI Governor Shaktikanta Das, who chairs the MPC, said that MPC met at a time when inflation has remained above RBI’s upper target range of 6% for two consecutive months. Retail inflation was recorded at 6.36% in June.
- Repo rate is the interest rate at which banks borrow from the RBI to overcome short-term liquidity mismatches.
Monetary Policy Committee (MPC):
The first meeting of MPC was held in October 2016.
MPC consists of six members. RBI Governor is Chairman of MPC.
Along with RBI governor, MPC consists of Deputy Governor of RBI and one officer of RBI as its members.
Three members are nominated by the government.
Topic: Indian Economy
2. Finance Ministry adds new definition of start-up in the procurement process for consultancy and other services by government.
- Finance Ministry has added a new definition of the start-up in the procurement process for consultancy and other services by the government.
- The definition of ‘start-up’ was changed by Department for Promotion of Industry and Internal Trade (DPIIT) in February 2019.
- As per the new definition, entity will be considered as a ‘start-up’ up to a period of 10 years from the date of incorporation/registration.
- Additionally, the turnover of the entity for any financial year since incorporation/ registration should not exceed ₹100 crore.
- Entity formed by splitting up of an existing business will not be considered as a ‘start-up’.
- The existence period was earlier 5 years and the turnover limit was ₹25 crore.
3. Finance Minister introduces 'The Taxation Laws (Amendment) Bill, 2021' in the Lok Sabha.
- Finance Minister has introduced 'The Taxation Laws (Amendment) Bill, 2021' in the Lok Sabha.
- The bill has been introduced to repeal retrospective taxation of capital gains from sale of assets located in India by entities registered abroad.
- It proposes amendments in Income-tax Act, 1961 and the Finance Act, 2012.
- It provides that tax demands raised according to the 2012 retrospective amendment for any indirect transfer of Indian assets before May 28, 2012 will be deemed never made.
- Finance Bill, 2012 got the President’s assent on May 28, 2012. Companies will get back the money paid if they withdraw cases against India.
- The bill is a move to settle retrospective tax disputes with companies such as Cairn Energy and Vodafone.
4. Re-appointment of Prakash Chandra as Non-Executive (Part Time) Chairman of RBL Bank approved by RBI.
- Re-appointment of Prakash Chandra as Non-Executive (Part Time) Chairman of RBL Bank has been approved by RBI.
- Chandra’s reappointment has come into effect from August three for a three-year period.
- RBL Bank is a Mumbai based Indian private sector bank. It was earlier known as Ratnakar Bank. Vishwavir Ahuja is its MD & CEO.
Topic: Banking System
5. Axis Bank crosses mark of over one million customers on its WhatsApp banking channel.
- Axis Bank has crossed the mark of over one million customers on its WhatsApp banking channel.
- Axis Bank had launched banking services on WhatsApp in January 2021.
- If the customers sign up for the service, they can inquire and get details of products such as savings account, credit and debit cards, deposits and personal loans.
- They can also get access to non-financial services such as locating ATMs or getting updates on third-party deals available on credit and debit cards.
Axis Bank is the third-largest private bank in India. It is headquartered in Mumbai. Its MD & CEO is Amitabh Chaudhry.
Topic: Banking System
6. ICICI Prudential Life Insurance enters into partnership with NPCI to provide UPI Autopay facility to its customers.
- ICICI Prudential Life Insurance enters into partnership with the National Payments Corporation of India (NPCI) to provide a Unified Payments Interface (UPI) Autopay facility to its customers.
- The customers can link their bank accounts with UPI Autopay for payment of premium when they purchase a life insurance policy.
- Customers can activate the UPI Autopay e-mandate by using their smartphones to make regular renewal premium payments.
National Payments Corporation of India (NPCI):
It was formed in 2008 by the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).
It is a “Not for Profit” Company headquartered in Mumbai.
Topic: Regulatory Bodies/Financial Institutions
7. Carlyle Group-led ₹4,000 crore equity investment transaction in PNB Housing Finance Ltd (PNBHFL) approved by CCI.
- Carlyle Group-led ₹4,000 crore equity investment transaction in PNB Housing Finance Ltd (PNBHFL) has been approved by the Competition Commission of India (CCI).
- CCI observed that the proposed combination raises no risk of any appreciable adverse effect on competition under the competition law.
- Under the deal, Carlyle Group and other investors were to infuse ₹4,000 crore capital into PNBHFL through preferential allotment of equity shares.
- But, the deal faced trouble when SEBI intervened and asked PNBHFL not to go ahead until it undertakes valuation of its shares by an independent agency.
- PNBHFL later appealed before Securities and Appellate Tribunal (SAT), which has reserved its order.
Competition Commission of India (CCI):
CCI was formed on 14 October 2003 under the Competition Commission Act,2002.
It aims to eliminate practices that affect competition in the Indian market and protect the interests of the consumers.
Current Chairperson: Ashok Kumar Gupta
8. Mini Ipe takes over as Managing Director of the LIC.
- Mini Ipe has taken over as Managing Director of the Life Insurance Corporation (LIC).
- She was previously Executive Director of LIC’s Legal Department.
- She had joined LIC in 1986 as a direct recruit officer.
Life Insurance Corporation (LIC):
It was formed in September 1956. Government of India completely (100%) owns LIC. It is headquartered in Mumbai.
LIC owns a 51% stake in IDBI Bank, nearly 9% stake in Axis Bank and a 10 % stake in Yes Bank.
M R Kumar is its chairman. Its slogan is slogan yogakshemam vahamyaham (Your welfare is our responsibility).
Topic: Banking System
9. DBS Bank honoured as global winner for Most Innovative Bank in Digital Banking by Financial Times publication, The Banker.
- DBS Bank has been honoured as a global winner for Most Innovative Bank in Digital Banking by Financial Times publication The Banker in its 2021 Innovation in Digital Banking Awards.
- In addition, the bank was also named the Asia-Pacific winner. It also won in the Cyber Security category for its Secure Access and Remote Working Solution.
- DBS Bank had last year launched DBS Digital Exchange, NAV Planner and Covid contact-tracing solution using AI/machine learning.
- DBS Digital Exchange is a blockchain-based ecosystem for fundraising through asset tokenisation and secondary trading of digital assets including cryptocurrencies. It was launched in December 2020.
- NAV Planner is a feature-rich digital advisory solution powered by more than 100 artificial intelligence (AI) models.
- Leading financial publication Euromoney has recognized DBS Bank as Asia’s Best Bank and Asia’s Best Digital Bank in its regional Awards for Excellence 2021.
- Euromoney has also recognized DBS as Best Bank and Best Investment Bank in Singapore.
The Banker’s Innovation in Digital Banking Awards identifies the most innovative banks all over the world for their digital banking initiatives, strategy, and overall commitment to digital transformation.
DBS Bank is a Singaporean multinational banking and financial services corporation. It is headquartered in Marina Bay, Singapore.