Banking, Financial and Economic Awareness of 7, 8 and 9 September 2021

Topic: Banking/Financial Schemes

1. ₹10,683 crore Production Linked Incentive (PLI) scheme approved by Union Cabinet.

• ₹10,683 crore Production Linked Incentive (PLI) scheme has been approved for the textile industry by Union Cabinet.
• The scheme covers items from the MMF (man-made fibre) and the technical textiles sectors.
• Under the scheme, approved incentives will be provided to eligible units over a period of five years.
• The scheme will promote the production of high-value MMF fabrics, garments, and technical textiles in India.
• Two types of investments are eligible for the scheme. First is the investment of a minimum of ₹ 300 crores in the plant, machinery, equipment, and civil works to produce products of the notified MMF fabrics, garments and products of technical textiles.
• The second is the investment of minimum ₹100 crores. The factories in aspirational districts or Tier-3 & Tier-4 cities will be given priority.
• MMF like polyester, viscose, are made from various chemicals, or are regenerated from plant fibers.
• Technical textiles are new age functional fabrics that have applications across industries such as automobiles, civil engineering and construction, agriculture, etc.

Topic: Appointments

2. Harsha Bhupendra Bangari appointed as EXIM Bank MD.

• Harsha Bhupendra Bangari has been appointed as MD of Export-Import Bank of India (EXIM Bank).
• She has taken charges on 08 September. She will remain on the post for a period of three years or until further orders of the government.
• She was presently serving as deputy managing director at EXIM Bank. She joined Exim Bank in 1995.
• The post of EXIM Bank MD was vacant ever since David Rasquniha completed his three-year tenure as MD in May 2021.
• Total 10 candidates were interviewed by Banks Board Bureau (BBB) for the post of MD at Exim Bank. In May 2021, BBB recommended Bangari’s name for the post of MD.

Topic: Appointments

3. The re-appointment of V. Vaidyanathan as MD & CEO of IDFC FIRST Bank approved by RBI.

• The re-appointment of V. Vaidyanathan as the Managing Director & Chief Executive Officer of IDFC FIRST Bank has been approved by RBI.
• His re-appointment will be effective for 3 years from December 19, 2021.
• The re-appointment is subject to shareholders’ approval at the Annual General Meeting of the Bank, which is scheduled to be held on September 15, 2021.
• Vaidyanathan became MD & CEO of IDFC FIRST Bank in December 2018 after Capital First and IDFC Bank merger.

Topic: RBI

4. RBI decided to take UCO Bank out of the prompt corrective action (PCA) framework.

• RBI has decided to take UCO Bank out of the prompt corrective action (PCA) framework.
• However, this is subject to certain conditions and continuous monitoring.
• Only two public sector banks now remain under RBI’s PCA framework. They are - Central Bank of India and Indian Overseas Bank.
• RBI said that Board for Financial Supervision reviewed the performance of UCO Bank. It found that the bank is not in breach of PCA parameters.
• UCO Bank is Kolkata-headquartered public sector bank. It was put under the PCA framework in May 2017 due to high net non-performing assets and a negative return on assets.

Topic: Appointments

5. The name of Atul Kumar Goel recommended for the position of MD & CEO of PNB.

• The name of Atul Kumar Goel has been recommended by Banks Board Bureau (BBB) for the position of MD & CEO of Punjab National Bank (PNB).
• He is currently MD and CEO of UCO Bank. He will succeed Ch SS Mallikarjuna Rao, who is due to leave office in end-January.
• Centre has last month extended the tenure of three MDs and CEOs and 10 Executive Directors in various PSBs.
• Ch SS Mallikarjuna Rao’s term got extended till January 31, the term of office of Goel was extended for two years till November 1, 2023.
• Punjab National Bank is the second-largest Public Sector Bank of India. It was established in 1894. It is headquartered in New Delhi.

Topic: Appointments

6. Piyush Goyal appointed as India’s Sherpa for G-20.

• Piyush Goyal has been appointed as India’s Sherpa for G-20.
• The next G-20 Summit will take place on October 30-31, 2021 under the Italian Presidency.
• From December 1, 2021 till November 30, 2024, India will be part of the G-20 Troika (preceding, current, and incoming G-20 Presidencies).
• G-20 accounts for more than 80% of global GDP, 75% of global trade and 60% of the global population.
• India has been a member of the G20 since its inception in 1999.
• India will be holding the G20 Presidency from 1 December, 2022. India will convene the G20 Leaders’ Summit in 2023 for the first time.
• G-20 is a global forum founded in 1999. It includes 19 countries and the European Union. Mario Draghi is its current Chairman.

Topic: Corporates/Companies

7. Edelweiss Asset Reconstruction Co chooses Swiss Challenge method to sell the entire debt of ₹2,059.24 crore of Karaikal Port.

• Edelweiss Asset Reconstruction Co has chosen the Swiss Challenge method to sell the entire debt of ₹2,059.24 crore of Karaikal Port.
• The debt is being sold on 100 per cent cash basis. Sarfaesi Act, 2002 and RBI guidelines allow only banks, financial institutions, and asset reconstruction companies to take part in the auction for take-over of debt of a non-performing asset.
• But corporates can come in by striking a deal with banks, financial institutions and asset reconstruction companies,
• In the Swiss challenge method, the entity that makes an original offer is given a chance to match the highest bid found through an open auction.
• If the entity that had put in the original offer declines, then the deal is given to the highest bidder.

Topic: Agriculture

8. Union Cabinet approves increase in MSP for Rabi crops between ₹35-400.

• Union Cabinet has approved the increase in Minimum Support Price (MSP) for Rabi crops between ₹35-400. New rates will be applicable for Rabi marketing season 2022-23.
• Highest absolute increase in MSP over the previous year has been approved for lentil (masur), rapeseeds and mustard (₹400 per quintal each) followed by gram (₹130 per quintal).
• Masur MSP has been fixed at ₹5,500 per quintal, while rapeseed mustard has been fixed at ₹5,050.
• The expected returns to farmers over their cost of production are likely to be highest in the case of wheat and rapeseed & mustard (100 % each), followed by lentil (79 %), gram (74 %); barley (60 %) and safflower (50 %).
• Minimum Support Price (MSP) is the rate at which the government buys produce from farmers.

Topic: Appointments

9. Arun Kumar Singh assumes charge as Chairman and Managing Director of BPCL.

• Arun Kumar Singh has assumed charge as Chairman and Managing Director of Bharat Petroleum Corporation Ltd (BPCL).
• Vetsa Ramakrishna Gupta is the new Director (Finance) of BPCL, India’s second-largest fuel marketing company.
• Public Enterprises Selection Board (PESB) has selected Arun Kumar Singh in May 2021 to fill the vacancy created by the retirement of D Rajkumar in August 2020.
• The government is selling its entire 52.98 percent stake in BPCL to a strategic buyer.
• Bharat Petroleum Corporation Ltd is a Maharatna oil refining and marketing company. Its headquarters are located in Mumbai.

Read Banking Awareness PDF -7, 8 and 9 September 2021