Banking, Financial and Economic Awareness of 9 and 10 June 2021

Topic: RBI

1. Re-appointment of RBI Deputy Governor approved by Appointments Committee of the Cabinet.

• Re-appointment of RBI Deputy Governor, Mahesh Kumar Jain, has been approved by the Appointments Committee of the Cabinet.
• He will continue as RBI Deputy Governor for two years with effect from June 22.
• His three-year term as RBI Deputy Governor is getting completed on June 21.
• He was appointed as RBI Deputy Governor for three years in June 2018. Before joining RBI, he was managing director of IDBI Bank.
• RBI will now have three serving Deputy Governors. Michael Patra, M Rajeshwar Rao and T Rabi Sankar are other three serving Deputy Governors.
• Out of the four deputy governors, two are traditionally selected from executive directors of RBI. One is nominated from among chairpersons of PSB and the other is an economist.

Topic: Appointments

2. Re-appointment of Girish Chandra Chaturvedi as part-time Chairman of ICICI Bank approved by RBI.

• Re-appointment of Girish Chandra Chaturvedi as the part-time Chairman of ICICI Bank has been approved by RBI.
• He will be reappointed for a period of three years starting from July 1, 2021.
• The shareholders have already approved his reappointment as non-executive (part-time) Chairman at the Annual General Meeting held on August 14, 2020.
• ICICI Bank is a private sector bank. Girish Chandra Chaturvedi is its chairman. Its MD & CEO is Sandeep Bakhshi.

Topic: Appointments 

3. Government extends term of LIC Chairman, M.R. Kumar.

• Government has extended the term of Life Insurance Corporation of India Chairman, M.R. Kumar.
• M.R. Kumar's term has been extended by nine months until March 2022. His term is to end on June 30.
• The proposal of the Department of Financial Services for extension of the term of MR Kumar has been approved by the Appointments Committee of the Cabinet.
• Life Insurance Corporation (LIC):
  • It was formed in September 1956. Government of India completely (100%) owns LIC.  It is headquartered in Mumbai.
  • M R Kumar is its chairman. Chairman and four Managing Directors (MDs) form the executive board of LIC.
  • Its slogan is slogan yogakshemam vahamyaham (Your welfare is our responsibility).

Topic: Miscellaneous

4. Cabinet approves applicability of benefits of New Investment Policy-2012 to Ramagundam plant.

• Cabinet Committee on Economic Affairs approves applicability of benefits of New Investment Policy-2012 to Ramagundam Fertilisers and Chemicals Limited (RFCL) in Telangana.
• As per the policy, all urea plants set up till 2019 will get several incentives.
• Ministry of Chemicals and Fertilisers proposed to extend the benefits to RFCL, which was commissioned in 2021. Cabinet has now approved the proposal.
• RFCL is a joint venture Company consisting of National Fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizers Corporation of India Limited (FCIL).
• New Investment Policy (NIP) – 2012 was announced by the government on 2^nd January 2013 to facilitate fresh investment in the urea sector.

Topic: Reports and Indices

5. Government invites public comments on draft technical report on ‘Revision of Current WPI Series 2011-12 to New Series 2017-18’.

• Government has invited public comments on the draft technical report on ‘Revision of Current WPI Series 2011-12 to New Series 2017-18’.
• The report has been compiled by the Working Group, headed by NITI Aayog Member Ramesh Chand.
• The Group has given approval to the adoption of the new base year 2017-18. It has suggested the inclusion of new items in WPI.
• Inclusion of new items and other changes proposed by the Group will change the composition of index.
• The share of primary items will increase from 22.62% to 24.83%. Share of fuel and power will decrease to 11.24% from 13.15%.
• Share of manufactured articles will decline to 63.93% from 64.23%. The Group has proposed the addition of medicinal plants like isabgol, aloe vera, menthol and others under the agriculture commodities.
• The Group has also proposed the addition of the solar index as a separate index under electricity.
• The group further said that Business Services Price Index (BSPI) may be disseminated separately for six price indices. BSPI should be merged into WPI later.

Topic: Appointments

6. Government has started process to select next Chairman of Insolvency and Bankruptcy Board of India (IBBI).

• Government has invited applications to select the next Chairman of the Insolvency and Bankruptcy Board of India (IBBI).
• MS Sahoo is the current chairman of IBBI. He is completing his five year term in September.
• Central government appoints IBBI Chairman based on the recommendations of Selection Committee headed by Cabinet Secretary.
• Insolvency and Bankruptcy Board of India (IBBI):
  • It was established on 1 October 2016 under the Insolvency and Bankruptcy Code, 2016.
  • It is responsible for the implementation of the IBC code.
  • It is a unique regulator that regulates a profession as well as process.
  • Chairperson of IBBI: M.S. Sahoo

Topic: Appointments

7. Sanjeev Nandan Sahai selected as new chairman of PNGRB.

• Former power secretary Sanjeev Nandan Sahai has been selected as the new chairman of the Petroleum and Natural Gas Regulatory Board (PNGRB).
• Sanjeev Nandan Sahai was picked by a search committee headed by V K Saraswat, Member (S&T), NITI Aayog.
• The Committee comprised of secretaries to the ministries of oil, and commerce, secretary legal affairs and economic affairs secretary.
• List of selected candidates will be sent to the Appointments Committee of the Cabinet (ACC) for decision.
• The post of chairman, PNGRB was vacant since December 4, 2020, when Dinesh K Sarraf’s three-year term ended.
• Petroleum and Natural Gas Regulatory Board (PNGRB) was formed in 2006. In addition to the Chairman, PNGRB comprises of four members. It has only one serving member as of now. His name is Satpal Garg.

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