Monthly Banking/ Financial/ Economic Awareness Saga

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MONTHLY BANKING/
FINANCIAL/
ECONOMIC
AWARENESS SAGA
DECEMBER 2020
PREPARE ONLINE FOR IBPS PO/ CLERK/ RRB/
SO, SBI PO/ CLERK, LIC AAO, RBI GRADE A/ B,
NABARD EXAMS
COPYRIGHT ©PENDULUMEDU 1
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TABLE OF CONTENTS
Banking System................................................................................................................................................ 5
SIDBI launches asset restructuring web module and Indian Bank signs agreement to use the module. . 5
RBI proposes an increase in limit for contactless card transactions. ......................................................... 5
Atmanirbhar Women Scheme started by Bank of Baroda. ........................................................................ 6
RTGS system is now available round the clock from 14 December 2020. ................................................. 6
Rupay Select Debit Card launched by Central Bank of India. ..................................................................... 7
‘Infinite India’ platform launched by ICICI Bank. ........................................................................................ 7
Government provides ₹5,500-crore support to Punjab & Sind Bank. ....................................................... 7
Digital lending Platform launched by Bank of Baroda (BoB). .................................................................... 8
Strategic partnership between AU Small Finance Bank and ICICI Prudential Life Insurance announced. 8
Banking/Financial Schemes ............................................................................................................................. 9
NBCFDC and NSFDC signed MoAs with Central Bank of India. .................................................................. 9
EXIM Bank and SIDBI plan to set up an Alternative Investment Fund (AIF). ............................................. 9
A new digital payment app, ‘DakPay’, launched by Department of Posts (DoP) and India Post
Payments Bank (IPPB)................................................................................................................................ 10
Indian Army and Bank of Baroda signed a MoU for Baroda Military Salary Package. ............................ 10
Regulatory Bodies/Financial institutions...................................................................................................... 11
NABARD’s Karnataka Regional Office signs MoU with LHO-Bengaluru Branch of SBI. ........................... 11
RBI fines HDFC Bank with ₹10 lakh. .......................................................................................................... 11
Draft Circular on Declaration of Dividend by NBFCs released by RBI. ..................................................... 12
Licence of The Karad Janata Sahakari Bank Ltd cancelled. ...................................................................... 12
SEBI forms Corporation Finance Investigation Department (CFID). ........................................................ 12
Draft Indian Ports Bill, 2020 provides for setting up of Maritime Port Regulatory Authority (MPRA). . 13
IFSCA removes certain restrictions on Alternative Investment Funds (AIFs) operating in IFSC. ............ 14
RBI to establish Automated Banknote Processing Centre (ABPC) in Jaipur. ........................................... 14
A scheme for approval of Hygiene Rating Audit Agencies launched by Quality Council of India (QCI). 15
Cabinet approves the revised guidelines for providing DTH services in India......................................... 15
Health insurance industry related orders passed by IRDAI in 2020. ........................................................ 16
CARO Order, 2020 to become effective from financial year starting on or after April 1, 2021. ............. 17
Government may start the process of setting up of a Bank Investment Company (BIC) to hold its stake
in PSBs. ....................................................................................................................................................... 17
SEBI’s new norms for mutual funds to become effective from tomorrow. ............................................. 18
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Indian Economy/Financial Market ................................................................................................................ 18

Exports in November and during April-November decline. ..................................................................... 18
Rs 62,782 crore came to India as FPI inflows. ........................................................................................... 19
RBI kept both repo rate and reverse repo rate unchanged at 4% and 3.35%, respectively. .................. 20
RBI’s Report on Management of Foreign Exchange Reserves shows that RBI bought three times more
gold in first half (H1) of FY21. .................................................................................................................... 21
ADB lowers its forecast of India’s GDP contraction for FY21 from earlier 9% to 8%. ............................. 21
Retail inflation (CPI based inflation) declined to 6.93% in November. .................................................... 21
India’s overall exports during April-November 2020-21 records negative growth of 14% over April-
November period of last year.................................................................................................................... 23
Suspension of IBC to continue till March 31, 2021. .................................................................................. 23
RBI data shows recovery of manufacturing companies in second quarter of FY21. ............................... 24
CEBR predicts that India will be the fifth-largest economy by 2025........................................................ 24
FIEO estimates show decline in India’s exports in 2020-21. .................................................................... 25
Infrastructure and Energy ............................................................................................................................. 25
Combined sovereign and non-sovereign loan of $190 million approved by Asian Development Bank
(ADB). ......................................................................................................................................................... 25
$2.5 million technical support approved by Asian Development Bank (ADB). ....................................... 26
PM Modi laid foundation for world’s largest hybrid renewable energy park. ........................................ 26
First CoE for Skill Development in Power Sector at National Institute of Solar Energy established. ..... 27
Government signs $300 million loan agreement with ADB to improve rural power distribution
network in UP. ........................................................................................................................................... 27
Ministry of Road Transport and Highways issues draft notification for adoption of E20 fuel. .............. 28
Deep sea port to be set up in East Midnapore at Tajpur. ........................................................................ 28
New Bhaupur-New Khurja section of Eastern Dedicated Freight Corridor inaugurated by PM Modi. .. 28
The construction of industrial corridor nodes at Krishnapatnam and Tumakuru industrial areas
approved. ................................................................................................................................................... 29
Agriculture ..................................................................................................................................................... 30
Centre of Excellence for Vegetable and Flowers inaugurated at Wayanad. ........................................... 30
Corporates/Companies ................................................................................................................................. 30
World’s largest satellite-based Narrow Band-Internet of things (NB-IoT) network for fishermen,
farmers, construction, and mining and logistics enterprises launched. .................................................. 30
Bharti AXA Life Insurance to support healthcare workers working against Covid-19. ........................... 31
Asian Development Bank (ADB) signs $40-million loan agreement with Northern Arc Capital (NACL). 31
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India Accelerator signed MoU with Department of Information Technology, Electronics, and
Communication (DITECH) and Startup Haryana. ...................................................................................... 32
Two plants of Emami Limited get WHO-GMP (Good Manufacturing Practices) and Certificate of
Pharmaceutical Products (CoPP) certification. ......................................................................................... 32
SBI Life Insurance acquires stake in Paisalo Digital. ................................................................................. 33
A Memorandum of Understanding (MoU) signed between Seaways Shipping and Logistics Ltd and
MOL Logistics (India). ................................................................................................................................. 33
Great Eastern Shipping Co Ltd becomes India’s biggest ship owner by fleet size. .................................. 33
Taxation System ............................................................................................................................................ 34
CBIC makes eight-digit HSN classification for 49 chemical-based products mandatory. ........................ 34
World Economy ............................................................................................................................................. 34
Crude oil prices rise due to successful coronavirus vaccine trials. ........................................................... 34
Russia will support 500,000 barrels per day (bpd) increase in oil production by OPEC+. ....................... 35
Reports and Indices ....................................................................................................................................... 35
Smuggling in India Report 2019-20 released by Finance Minister. .......................................................... 35
McAfee’s report finds losses from cybercrime at over $1 trillion. ........................................................... 36
As per the latest report by NPCI, Paytm Payments Bank has best technology in India. ......................... 36
HDFC, ICICI, and SBI become top three banks as per BFSI Movers and Shakers 2020 Wizikey
Newsmakers Report. ................................................................................................................................. 37
Infosys becomes top ITeS player of 2020 as per the ITeS Power Movers 2020 Report by Wizikey........ 37
Mukesh Ambani’s rank in Hurun global rich list drops from 4th place in August to 8th place in
December. .................................................................................................................................................. 38
Appointments ................................................................................................................................................ 38
BBB makes recommendation for the post of Chairman and Managing Director of SIDBI. ..................... 38
Re-appointment of Uday Kotak as MD & CEO of Kotak Mahindra Bank approved by RBI. .................... 38
Siddharth Dhamija appointed as Chief Executive Officer (CEO) of Zaakpay. .......................................... 39
Appointment of Sandeep Batra as Executive Director of ICICI Bank approved by RBI. .......................... 39
Committees/ Commissions/Taskforces ........................................................................................................ 39
Ministry of Information & Broadcasting forms committee to review guidelines for Television Rating
agencies. ..................................................................................................................................................... 39
Miscellaneous ................................................................................................................................................ 40
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BANKING SYSTEM
SIDBI LAUNCHES ASSET RESTRUCTURING WEB MODULE AND INDIAN BANK SIGNS
AGREEMENT TO USE THE MODULE.
 SIDBI has launched an asset restructuring web module and Indian Bank has signed an agreement
with SIDBI to use the module for MSME borrowers.
 The Module aims to help MSME borrowers benefit from RBI’s MSME restructuring guidelines.
 The module is named as Asset Restructuring Module for MSMEs – Do it Yourself (ARM-MSME DIY)
and being offered free of cost.
 The module will help MSMEs in preparing restructuring proposals on their own.
 Indian Bank has also launched MSME Prerna, an online programme to train MSMEs in basic
accounting and government/bank schemes.
 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.
 Small Industries Development Bank of India (SIDBI):
o It was formed in 1990. Its headquarters lie in Lucknow. Its chairman and MD is
Mohammad Mustafa.
o It functions under jurisdiction of Department of Financial Services, Ministry of Finance. RBI

regulates and supervises SIDBI.
o SBI holds 16.73 % shares (largest) of SIDBI. Government of India and LIC also hold shares in
SIDBI.
o Micro Units Development & Refinance Agency Ltd. (MUDRA) is a subsidiary of SIDBI.
RBI PROPOSES AN INCREASE IN LIMIT FOR CONTACTLESS CARD TRANSACTIONS.

 RBI has proposed an increase in the limit for contactless card transactions from Rs 2,000 to Rs
5,000 from January 1, 2021.
 RBI has made this proposal in its statement on developmental and regulatory policies released on
December 4, 2020.
 RBI has also proposed to make these changes for e-mandates for recurring transactions through
cards (and UPI). However, RBI will issue instructions for these proposals later.
 Another proposal made in the document is to allow posting of settlement files of payment
systems to the RBI on all days of the year. This will apply to the payment systems given below:
o AePS (Aadhaar Enabled Payment System)
o IMPS (Immediate Payment Service)
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o NETC (National Electronic Toll Collection)
o NFS (National Financial Switch)
o RuPay and UPI (Unified Payment Interface)
 Currently, the posting of settlement files of payment systems can be done only on RTGS days.
 eKuber is a core banking system of RBI. It is available on all days and all nights. RTGS will be soon
available 24x7.
ATMANIRBHAR WOMEN SCHEME STARTED BY BANK OF BARODA.

 Atmanirbhar Women Scheme has been started by Bank of Baroda as part of its Baroda Gold Loan.
 The bank will offer loans to women at a 0.50% concession rate under the scheme.
 Under the gold loan scheme, the Bank of Baroda also offers Agri-gold loans and retail loans at
0.25% and 0.50% concession, respectively.
 Bank of Baroda:
o It is the third-largest public sector bank in India.
o Chairman: Hasmukh Adhia
o Tagline: India’s International Bank
RTGS SYSTEM IS NOW AVAILABLE ROUND THE CLOCK FROM 14 DECEMBER 2020.
 The Real Time Gross Settlement System (RTGS) facility is now available 24x7 from 14 December
2020.
 RTGS is used for large-value fund transfers, while NEFT is used for fund transfers of up to Rs 2 lakh.
 RBI stated that it would give a boost to digital payments, and it will provide facilities to businesses
and customers for the transfer of money round the clock.
 India will become one of the few countries to make RTGS available round the clock. In India, RTGS
uses ISO 20022 format messaging standard for financial transactions.
 NEFT facility is already available 24x7 from December 2019.
 Real-time gross settlement (RTGS):
o It was started on 26 March 2004.
o It is a gross settlement based electronic payment system.
o In RTGS, transactions are completed individually or on a one-to-one basis.
o As per RBI, the minimum limit for transactions in RTGS is Rs 2 lakh.
o As per RBI, there is no upper or maximum limit for transactions in RTGS.
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o At present, it handles 6.35 lakh transactions on a daily basis.
RUPAY SELECT DEBIT CARD LAUNCHED BY CENTRAL BANK OF INDIA.

 Rupay Select Debit Card has been launched by Central Bank of India in partnership with the
National Payments Corporation of India.
 Rupay Select Debit Card is a type of contactless Debit Card. It will provide customers
complimentary health check-ups, lounge access at selected centres and an accidental cover of ₹10
lakh at no extra cost.
 The card will make offline transactions in both transit and in retail purchases easier. The bank has
also launched FASTAG (for electronic toll collection) in partnership with Optical Storage
Technology Association (OSTA).
 Central Bank of India was founded in 1911. Its headquarters are in Mumbai. Its CEO is Pallav
Mohapatra.
‘INFINITE INDIA’ PLATFORM LAUNCHED BY ICICI BANK.

 ‘Infinite India’ platform has been launched by ICICI Bank to provide banking solutions and value-
added services to foreign companies planning to set up business in India.
 The platform will offer services such as the incorporation of a business entity, corporate filings,
licenses and registrations, HR services, compliances and taxation.
 The platform will help foreign companies and provide them hassle-free experience of doing
business in India.
 ICICI bank is recognized as Authorised Dealer Category 1. It is allowed to authorize setting up of

offices (liaison office, branch office and project office) in India within Foreign Exchange
Management (FEMA) Act 1999.
 Under the FEMA Act 1999, RBI has permitted three types of Authorised Money Changers (AMCs)
and Authorised Dealer Category -I Banks (AD Category–I Banks) is one of them.
 Authorised Dealers Category - II (ADs Category–II) and Full Fledged Money Changers (FFMCs) are
remaining two AMCs approved by RBI.
GOVERNMENT PROVIDES ₹5,500-CRORE SUPPORT TO PUNJAB & SIND BANK.

 Government has provided ₹5,500-crore support to Punjab & Sind Bank.
 Government will subscribe to equities worth ₹5,500-crore. The bank will issue these on
preferential allotment basis.
 The bank will subscribe to non-interest bearing and non-transferable Special Government of India
securities.
 They will mature from 2030 to 2035, with the aggregate maturity amount being ₹5,500 crore.
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 The bank will not earn interest income during the tenure of these special securities. Such
securities are called zero coupon bonds. They provide profit at maturity.
 The bank will keep these securities in Held to Maturity portfolio/category without any limit. These
would not be considered as Statutory Liquidity Ratio eligible papers/bonds/securities.
 Punjab & Sind Bank:
o It was founded in 1908. It is headquartered in Delhi. Its tagline is where service is a way of
life.
o S Krishnan is its MD & CEO. Presently, Government’s shareholding in Punjab & Sind Bank is
83.06%.
DIGITAL LENDING PLATFORM LAUNCHED BY BANK OF BARODA (BOB).

 Digital lending Platform (DLP) has been launched by Bank of Baroda (BoB) to provide in-principle
approval for certain category of loans and to offer Online Loan against Fixed Deposits.
 DLP provides in-principle approval for home, car and personal loan in 30 minutes.
 DLP facility is available for prospective loan seekers through the website, mobile banking, internet
banking and social media.
 Bank of Baroda said MSME and agricultural disbursements would also be digitized. The Bank is
also offering a pre-approved micro personal loan to select existing customers to shop through
offline/online partner channels.
 Bank of Baroda’s mobile banking app, m-Connect+, also provides an option to get loan amount
into a savings account and convert it to EMIs (Equated Monthly Instalments).
 Bank of Baroda:
o Vijaya Bank and Dena Bank were merged in Bank of Baroda.
o Tagline: India’s International Bank
STRATEGIC PARTNERSHIP BETWEEN AU SMALL FINANCE BANK AND ICICI PRUDENTIAL LIFE
INSURANCE ANNOUNCED.
 Strategic partnership between AU Small Finance Bank and ICICI Prudential Life Insurance has been
announced.
 The partnership aims to offer life insurance solutions to customers of AU Small Finance Bank.
 Due to the partnership, the customers of AU Small Finance Bank will have access to long-term
savings products of ICICI Prudential Life.
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 AU Small Finance Bank (SFB):
o It was founded in 1996 as AU Financiers (India) Ltd.
o In 2017, AU Financiers (India) Ltd became a small finance bank.
o It is headquartered in Jaipur.
o Its chairman is Mannil Venugopalan.
BANKING/FINANCIAL SCHEMES
NBCFDC AND NSFDC SIGNED MOAS WITH CENTRAL BANK OF INDIA.

 NBCFDC and NSFDC signed a Memorandum of Agreements (MoAs) with Central Bank of India.
 The signing of agreements gave the Vanchit Ikai Samooh aur Vargon ki Aarthik Sahayta (VISVAS)
scheme a source of help leading to improvement.
 VISVAS is a scheme of the Ministry of Social Justice and Empowerment to give financial power to
economically marginalized OBC/SC SHGs and OBC/SC individuals.
 The scheme will provide 5% per annum interest subvention on bank loans of not more than Rs 4
lakh per OBC/SC SHG and up to Rs 2 lakh per OBC/SC individual. The subvention will be given
directly into bank accounts.
 National Backward Classes Finance & Development Corporation (NBCFDC) is a Govt. of India
Undertaking working under the Ministry of Social Justice and Empowerment. It was incorporated
in 1992.
 National Scheduled Castes Finance & Development Corporation (NSFDC) is a Central Public
Sector Enterprise under the Ministry of Social Justice and Empowerment. It was incorporated in
1989. Both are NBCFDC and NSFDC are non-profit companies.
 Central Bank of India was founded in 1911. Its headquarters are in Mumbai. Its CEO is Pallav
Mohapatra.
EXIM BANK AND SIDBI PLAN TO SET UP AN ALTERNATIVE INVESTMENT FUND (AIF).
 EXIM Bank and SIDBI plan to set up an Alternative Investment Fund (AIF) in partnership.
 The fund will be to set up support small and medium enterprises (SMEs) by providing equity and
loans.
 In Budget for Financial Year 2020-21, the government announced that a fund would be set up by
SIDBI and EXIM Bank to support SMEs in pharmaceuticals, auto components and other sectors.
 The aim of the scheme (Ubharte Sitaare) is to find Indian enterprises currently underperforming
but having the potential to grow.
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 David Rasquinha, Managing Director, Exim Bank, said that they are looking to support MSMEs
through loans, grants, equity, and consultancy services under the Ubharte Sitaare programme. He
mentioned about Hidden Champion programme of Germany.
A NEW DIGITAL PAYMENT APP, ‘DAKPAY’, LAUNCHED BY DEPARTMENT OF POSTS (DOP)

AND INDIA POST PAYMENTS BANK (IPPB).
 A new digital payment app, ‘DakPay’, has been launched by the Department of Posts (DoP) and
India Post Payments Bank (IPPB).
 DakPay will provide banking services and postal products online. It will allow users to order and
avail of postal financial services very near to where the user lives.
 DakPay will also provide domestic money transfers and interoperable banking services to the
customers of any bank. It can also be used for utility bill payment services.
 Government is also thinking about whether it should provide credit facilities through the DakPay.
 India Post Payments Bank (IPPB) is a public sector payments bank operated by the India Post. It
was started on 1 September, 2018. Its tagline is Aapka Bank, Aapke Dwaar.
 India Post (Department of Posts) was formed in October 1854 by Lord Dalhousie. It is
headquartered in New Delhi. It works under the Ministry of Communications.
INDIAN ARMY AND BANK OF BARODA SIGNED A MOU FOR BARODA MILITARY SALARY
PACKAGE.
 Indian Army and Bank of Baroda signed a MoU for Baroda Military Salary Package.
 The main aim of this MoU is to provide banking service to serving and retired Indian Army
personnel.
 Under this MoU, Bank of Baroda will provide Personal Accidental Insurance cover, Permanent
Total Disability cover, Partial disability Cover and Air Accident Insurance Cover.
 It will also provide Higher Education Cover and Girl Child Marriage Cover in case of death of
serving personnel.
 The other benefits provided under this agreement include unlimited free ATM transactions,
discount on locker rental, and free remittance through RTGS.
 Bank of Baroda:
o It was founded in 1908.
o Headquarters: Vadodara
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REGULATORY BODIES/FINANCIAL INSTITUTIONS
NABARD’S KARNATAKA REGIONAL OFFICE SIGNS MOU WITH LHO-BENGALURU BRANCH OF

SBI.
 NABARD’s Karnataka Regional Office has signed MoU with the LHO-Bengaluru Branch of State
Bank of India.
 MoU will benefit farmers and other beneficiaries through EShakti (digitisation) / artisans / agri-
preneurs / agri-start-ups.
 Under the MoU, NABARD will act as the implementing agency for onboarding their SHGs on
NABARD’s EShakti portal across Karnataka.
 NABARD had launched EShakti as a pilot project for digitisation of SHGs in two districts in 2015.
 NABARD has plans to extend support to financial literacy programmes in the rural/semi-urban
branches and through SBI’s Financial Literacy Centres (FLCs).
 NABARD:
o It is an apex development finance institution that provides credit for agriculture and other
economic activities in rural areas.
o It is fully owned by the Government of India. It was formed on 12 July 1982. It has 28
regional offices.
o Chairman: Shri Govinda Rajulu Chinthala
o Headquarters: Mumbai, Maharashtra
RBI FINES HDFC BANK WITH ₹10 LAKH.

 RBI has fined HDFC Bank with ₹10 lakh due to bouncing of SGL (Subsidiary General Ledger).
 The bouncing of SGL caused a shortage of balance in certain securities in the CSGL account of
HDFC bank.
 CSGL account stands for Constituents' Subsidiary General Ledger (CSGL) account. SGL (Subsidiary
General Ledger) Account is kept with RBI.
 It holds G-Secs (Government Securities) in paperless form and is known as Demat account for
Government Securities.
 RBI permits SGL account holders to have a second account known as CSGL account. It is kept with
Public Debt Office (PDO)
 HDFC Bank Limited is headquartered in Mumbai. HDFC Bank is India‘s largest private sector bank.
It was founded in 1994. CEO of HDFC is Aditya Puri.
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DRAFT CIRCULAR ON DECLARATION OF DIVIDEND BY NBFCS RELEASED BY RBI.

 Draft Circular on Declaration of Dividend by NBFCs has been released by RBI.
 In Draft Circular, RBI has provided guidelines on the distribution of dividends by NBFCs. The
guidelines will be applicable from April 1, 2020 (FY21) onwards.
 RBI has also developed a matrix of criteria for maximum permissible range Dividend Payout Ratio
(DPR).
 In order to be eligible for declaration of dividend, NBFCs should comply with minimum prudential
requirements of capital adequacy, NPAs and others.
 The guidelines provide capital to risk-weighted assets ratio (CRAR) of at least 15% in case of
deposit taking NBFC (NBFC-D) and systemically important non-deposit taking NBFC (NBFC-ND-SI)
to declare dividend.
 However, non-systemically important non-deposit taking NBFC (NBFC-ND) should have a leverage
ratio (debt-to-equity) of less than 7 for the last 3 years to declare dividend as per the guidelines.
 The guidelines allow NBFCs having a net NPA ratio of less than 6% in each of the last three years to
declare dividend.
 The guidelines provide DPR up to 50% in the case of NBFC-D, NBFC-ND-SI and Core Investment
Company (CIC). In the case of NBFC-D and NBFC-ND-SI, DPR would depend on CRAR and net NPA
level.
 In the case of CIC, DPR would depend on CIC’s ANW to risk-weighted assets position and net NPA
ratio.
LICENCE OF THE KARAD JANATA SAHAKARI BANK LTD CANCELLED.

 The licence of The Karad Janata Sahakari Bank Ltd, Maharashtra, has been cancelled by RBI due to
inadequate capital and earning prospects.
 RBI has announced that Deposit Insurance and Credit Guarantee Corporation (DICGC) will make
full payment to over 99% of depositors of the bank.
 The bank will no longer accept deposits and make repayment of deposits. RBI has kept the bank
under all-inclusive directions since November 07, 2017.
 RBI has also requested the Commissioner for Cooperation and Registrar of Cooperative Societies,
Maharashtra, to issue an order for closing of bank and appoint a liquidator.
SEBI FORMS CORPORATION FINANCE INVESTIGATION DEPARTMENT (CFID).

 SEBI has formed the Corporation Finance Investigation Department (CFID) to deal with cases of
fraud, diversion of funds, bank loans and resources by company promoters.
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 As of now, investigations and corporation finance departments separately deal with the frauds by
company promoters.
 CFID will also deal with the cases where landers, management and other regulators initiated
forensic audit. It will also examine allegations made against auditors and material mis-statement
in financial statements.
 CFID will investigate those complex transactions, which involved resources of the listed entity and
were done to benefit promoter/promoter group.
 CFID will also check misuse of resources like company land, guest houses or vehicles by
promoters.
 Enforcement department had earlier found diversion of more than Rs 12,000 crore by DHFL
promoters. Cox and Kings Promoters laundered over Rs 7,000 crore.
 SEBI has 20 departments. Some of them are Corporation Finance Department (CFD), Enforcement
Department – 1 (EFD1) & Enforcement Department – 2 (EFD2).
 Securities and Exchange Board of India (SEBI):
o SEBI was set up in 1988. It was given statutory status in 1992. Its headquarters are located
in Mumbai.
o In addition to a chairman, SEBI currently has four whole-time members and three part-
time members. Ajay Tyagi is its chairman.
DRAFT INDIAN PORTS BILL, 2020 PROVIDES FOR SETTING UP OF MARITIME PORT
REGULATORY AUTHORITY (MPRA).
 Draft Indian Ports Bill, 2020 has provided for setting up of Maritime Port Regulatory Authority
(MPRA).
 Ministry of Ports, Shipping and Waterways has released the draft for public consultation. The draft
bill has proposed a Competition Commission-like set-up to adjudicate on disputes.
 A bench will decide on disputes and complaints raised by an aggrieved person or referred by
Central or State Government or State Maritime Board.
 Complaints should be about anti-competitive practices or abuse of a dominant position at

scheduled ports.
 The bench will have a Member (Legal) of MPRA and one or more members nominated by the
chairperson of MPRA. MPRA’s chairperson can also be a member of bench.
 Jurisdiction, powers and authority of the bench will be similar to that of a civil court. It will decide
on the disputes as per the provisions of the Competition Act, 2002. Its powers will be same as the
Competition Commission of India.
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 The draft bill also has provisions for the National Port Policy and National Port plan. As per the
draft bill, they will be prepared in consultation with Coastal State Governments, State Maritime
Boards and other stakeholders.
 The draft bill will replace the Indian Ports Act, 1908. Government is also working on the
development of a National Port Grid.
IFSCA REMOVES CERTAIN RESTRICTIONS ON ALTERNATIVE INVESTMENT FUNDS (AIFS)

OPERATING IN IFSC.
 IFSCA removes certain restrictions on Alternative Investment Funds (AIFs) operating in
International Financial Service Centre (IFSC).
 IFSCA has removed restrictions on leverage. Category I and II AIF operating in IFSC were not
allowed to leverage. But, Category III AIF was allowed to leverage up to a permissible limit.
 Now, leverage would be permitted depending upon disclosure in the placement memorandum
and consent of investors.
 International Financial Services Centres Authority (IFSCA) has also removed diversification norms
depending upon appropriate disclosure in the placement memorandum.
 IFSCA has also allowed the creation of co-investment pools as a separate class of unit within the
AIF.
 However, terms of segregated investments should not be more favourable to the common pool of
capital.
 With regard to the question of whether the AIFs can act as a fund-of-fund, IFSCA has clarified that
AIF in IFSC can make an investment in AIF in India.
 Alternative Investment Fund (AIF) is a fund that has the following defining features:
o It is established or incorporated in India.
o It is a privately pooled fund and collects fund from Indian or foreign investors.
o Categories of Alternative Investment Funds (AIFs): AIFs are divided into three categories
given below.
 Category I AIFs: They make an investment in start-ups, small and medium-sized

enterprises and venture capital.
 Category II AIFs: They include private equity funds and real estate funds.
 Category III AIFs: They include hedge funds.
RBI TO ESTABLISH AUTOMATED BANKNOTE PROCESSING CENTRE (ABPC) IN JAIPUR.

 RBI will establish an Automated Banknote Processing Centre (ABPC) in Jaipur.
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 ABPC will carry out an automated receipt, storage and dispatch of currency notes. ABPC will
destroy soiled banknotes in an automated manner.
 Along with the receipt, storage and dispatch, ABPC will carry out the processing of banknotes
received from currency chests (CCs) and bank branches.
 From March 2001 to March 2019, the volume of banknotes in circulation and supply of banknotes
by the presses has increased by three times and four times, respectively.
 RBI receives banknotes and coins from four printing presses and four mints at its 19 offices and
distributes them to 3,300 currency chests (CCs). Scheduled banks operate CCs under an agency
agreement with the RBI.
 Four mints of Government of India are located at Mumbai, Kolkata, Noida and Hyderabad. Four
printing presses are located at Nashik (Maharashtra), Dewas (MP), Mysore (Karnataka) and
Salboni (West Bengal).
A SCHEME FOR APPROVAL OF HYGIENE RATING AUDIT AGENCIES LAUNCHED BY QUALITY

COUNCIL OF INDIA (QCI).
 A scheme for approval of Hygiene Rating Audit Agencies has been launched by the Quality Council
of India (QCI) at the request of FSSAI.
 The scheme aims to increase the Hygiene Rating in India by making number of recognized Hygiene
Rating Audit Agencies in India greater.
 Recognized Hygiene Rating Audit Agencies check the obeying of food hygiene and safety
procedures laid by FSSAI.
 FSSAI Food Hygiene Rating is an online, transparent scoring and rating process for food businesses
supplying food directly to consumers. Food establishments are rated in the form of smileys (1 up
to 5) after audit.
 Quality Council of India (QCI):
o It was established in 1997 jointly by the government and the Indian industry represented
by ASSOCHAM, CII and FICCI.
o The nodal ministry for QCI is the Ministry of Commerce and Industry. It has 38 members. It
is an autonomous body under the Department of Industrial Policy and Promotion.
o It is headquartered in New Delhi. Its Chairman is Adil Zainulbhai.
CABINET APPROVES THE REVISED GUIDELINES FOR PROVIDING DTH SERVICES IN INDIA.
 Cabinet has approved the revised guidelines for providing DTH services in India.
 Under the new guidelines, the direct-to-home (DTH) license will be issued for 20 years with
further renewal every 10 years.
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 Cabinet has also decided to revise license fee from 10% of Gross revenue (GR) to 8% of Adjusted
Gross Revenue (AGR).
 Currently, license fee is calculated annually. Now, it will be calculated quarterly. Cabinet has also
approved a proposal to allow DTH operators to operate platform channels to a maximum of 5% of
their total channel carrying capacity.
 They will be charged a one-time non-refundable registration fee of Rs. 10, 000 per PS (Platform
Service) channel.
 Ministry of Commerce Industry had already allowed 100% FDI in DTH. But, only 49% FDI was
possible due to guidelines of Ministry of Information and Broadcasting. Now, 100% FDI will be
allowed after revised guidelines.
 Cabinet has also allowed sharing of Infrastructure between DTH operators. Now, Ministry of
Information and Broadcasting will issue revised DTH guidelines to bring into effect the decision of
cabinet.
HEALTH INSURANCE INDUSTRY RELATED ORDERS PASSED BY IRDAI IN 2020.

 On 2nd January, IRDAI issued guidelines for all health insurers (both general and specialized) to
launch standard health product (Arogya Sanjeevani Policy) from 1st April 2020.
 Covid-19 treatment was included under health and life insurance policies. Generally, treatments
for pandemic are not included in health insurance policies.
 IRDAI ordered that all insurers should issue health insurance policies through tele medical
wherever possible.
 It also allowed the use of e-KYC for the renewal of existing policies and the issuing of new policies
to customers.
 In July, specific health insurance policies, Corona Kavach and Corona Rakshak, were launched by
insurers based on IRDAI’s advice.
 In September, IRDAI allowed the inclusion of treatment through telemedicine under a health
insurance policy.
 From 1st October onwards, many new illnesses such as mental illness, age-related degeneration,
internal congenital diseases and artificial life maintenance were included under health insurance
policies.
 Definition of Pre-existing Diseases (PED) was changed to include any disease diagnosed by a
physician 48 months before the issuance of the health cover under PED.
 Insurers cannot reject a claim, which the policyholder has requested after the insured has paid a
premium for policy for 8 consecutive years. IRDAI allowed customers to pay their health insurance
premiums in installments.
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CARO ORDER, 2020 TO BECOME EFFECTIVE FROM FINANCIAL YEAR STARTING ON OR AFTER
APRIL 1, 2021.
 Companies (Auditor’s Report) Order 2020 will become effective from the financial year starting on
or after April 1, 2021.
 Ministry of Corporate Affairs (MCA) has deferred the implementation of CARO Order by one year.
 Earlier, it was to become effective from the financial year starting on or after April 1, 2020.
 Under CARO Order 2020, Companies will be required to comply with stricter disclosure
requirements on whistleblower complaints, default in repayment of borrowings and other issues.
 CARO order 2020 was notified by the Ministry of Corporate Affairs in February 2020 to replace
Companies (Auditor’s Report) Order, 2016.
 CARO order 2020 was made by the Ministry in consultation with the National Financial Reporting
Authority (NFRA). NFRA was formed in October 2018 under section 132 of the Companies Act,
2013. CARO order 2020 has 21 clauses against 16 clauses in CARO order 2016.
 CARO order 2020 will apply to all companies such as a banking company, an insurance company, a
One Person Company and a private limited company.
 It will also apply to foreign companies defined under clause (42) of section 2 of the Companies Act,
2013.
GOVERNMENT MAY START THE PROCESS OF SETTING UP OF A BANK INVESTMENT

COMPANY (BIC) TO HOLD ITS STAKE IN PSBS.
 Government may start the process of setting up a Bank Investment Company (BIC) to hold its
stake in PSBs.
 RBI’s PJ Nayak Committee Report had brought the idea of BIC for discussion in 2014. The
committee was formed to review the governance of boards of banks.
 Bank Boards Bureau (BBB) was set up by the government in 2016 as per the recommendation of
PJ Nayak Committee.
 As per to bankers, BIC will help in quick decision without the fear of 3Cs. 3Cs refers to Central
Vigilance Commission (CVC), Comptroller and Auditor General (CAG) and Central Bureau of
Investigation (CBI).
 Singapore, UK and Belgium are some countries having intermediate investment companies to hold
equity in banks.
 The report provided SUUTI (Specified Undertaking of the Unit Trust of India) example with respect
to Axis bank is similar to BIC. Government is having a stake in Axis Bank through SUUTI, which was
established in 2003.
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 PJ Nayak Committee is also known as Committee to Review Governance of Boards of Banks in

India. It was formed on 20 January 2014. PJ Nayak was its chairman. In addition to a chairman, the
committee has seven members.
SEBI’S NEW NORMS FOR MUTUAL FUNDS TO BECOME EFFECTIVE FROM TOMORROW.
 SEBI’s new norms for mutual funds will become effective from tomorrow. The new norms were
announced by SEBI in September 2020.
 The new norms will make the applicability of Net Asset value across various mutual fund schemes
upon realization of funds uniform.
 As per the current rules, closing NAV of the same day is applicable for the purchasing of less than
Rs 2 lakh.
 Under the new norms, closing NAV of the day of availability of funds for utilization regardless of
size and time of receipt of application will be applied in the purchase of units of mutual fund
schemes. This norm will not apply to liquid and overnight schemes.
 SEBI’s new risk-o-meter tool will also become effective from 1 January 2021. It will have a new
category of ‘very high’ risk. Risk-o-meter shows the risk in a scheme.
 Monthly evaluation of risk-o-meter will be done. Asset management companies (AMCs) will
disclose risk-o-meter and portfolio disclosure on their website.
 They will also disclose risk-o-meter on the Association of Mutual Funds in India (AMFI) website in
ten days after the close of each month. Mutual Funds will also be required to publish a history of
risk-o-meter changes every year.
 The time limit for transfer of debt papers from one MF scheme to another or inter scheme
transfers in close-ended funds will be three business days of the allotment of the scheme’s units
to investors.
 Inter scheme transfer will not be done in case of negative market news or rumours about security
in the mainstream media.
 If a fund’s internal risk assessment issues an alert about security in the previous four months, inter
scheme transfer will not be done.
 A mutual fund is an open-ended professionally managed investment fund. It pools money from
many investors to buy securities. These investors may be retail or institutional in nature. SEBI
grants registration to mutual funds.
INDIAN ECONOMY/FINANCIAL MARKET
EXPORTS IN NOVEMBER AND DURING APRIL-NOVEMBER DECLINE.

 Exports have declined by 9.07% to $23.43 billion in November 2020 and by 17.84% to $173.49
billion during April-November 2020.
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 The trade deficit in November declined to $ 9.96 billion and imports declined by 13.33% to $33.33
billion.
 Exports have declined due to a decline in the shipping of petroleum products and chemicals.
 Exports stood at $211.17 billion in April-November 2020. Merchandise imports in eight months of
FY21 declined by 33.56% to $215.6 7 billion.
 The meeting of the Board of Trade was held on Wednesday. In the meeting, exporters suggested
steps to boost local manufacturing and exports.
 The members of the Board of Trade are from the private and public sectors. It advises the Ministry
of Commerce and Industry on measures related to Foreign Trade Policy.
RS 62,782 CRORE CAME TO INDIA AS FPI INFLOWS.

 As of 28 November 2020, Rs 62,782 crore came to India as FPI inflows. This comprised of Rs
60,358 crore as equity inflows and Rs2,424 crore as FPI net investment in debt and hybrid
securities.
 FPI inflow in equity in November 2020 is the highest since National Securities Depository Ltd
(NSDL) makes FPI data available. Total FPI inflow was highest on 12 November. It stood at Rs
11,056 crore.
 FDI inflows in the second quarter of FY 2020-21 (July 2020 -September 2020) stood at US$ 28,102
million. Out of this, FDI equity inflows were US$ 23,441 million.
 Total FDI equity inflows till September of the current financial year reached US$30,004 million.
This is 15% higher than the same period of last financial year (2019-20). In terms of Rupee, this is
23% higher than last year.
 FDI equity inflows and total FDI inflows in 2019-2020 were the highest in the last six years.
 Total corporate bond issuances of Rs 4.43 lakh crore in the first half of FY21 (H1 FY21) were 25%
more than the issuances of Rs 3.54 lakh crore in the same period of the previous financial year (H1
FY20).
 Foreign Portfolio Investment (FPI) is the route by which an investor holds the securities and
financial assets in another country. Still, it does not provide direct control over the company’s
assets.
 Foreign Direct Investment (FDI) means investment by persons who are residents outside India
through shares, bonds, etc., in an unlisted Indian company.
 FDI also means investment by persons who are resident outside India in 10% or more of post-issue
paid-up equity capital (paid-up share capital after issuance of shares) of a listed Indian company.
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RBI KEPT BOTH REPO RATE AND REVERSE REPO RATE UNCHANGED AT 4% AND 3.35%,
RESPECTIVELY.
 RBI has kept both repo rate and reverse repo rate unchanged at 4% and 3.35%, respectively.
 RBI has kept rates unchanged due to concerns of rising inflation. As per RBI forecast, inflation is
likely to be at 6.8% in the third quarter and 5.8% in the fourth quarter of current fiscal year.
 The forecast of 6.8% and 5.8% is above the government’s inflation target of 4% within range of
plus/minus 2%.
 RBI earlier forecasted inflation at 5.4%-5.5% for the second half of current financial year. In
October 2020, consumer price inflation reached a six-year high of 7.6%.
 RBI has said that economy in the current fiscal year may contract by 7.5%. In October, RBI had
projected contraction of 9.5% during current fiscal year. In 1979-80, GDP contracted record 5.2%.
 Economy contracted by 23.9% in first (April-June) quarter of 2020-21 due to Covid-19. It

contracted 7.5% in the second (July-September) quarter of 2020-21 due to Covid-19.
 As per RBI, the economy may show positive growth in second half of FY 2020-21. GDP may expand
at 0.1% in third quarter of FY21 and at 0.7% in the last quarter of FY21.
 RBI’s decision to keep policy rates unchanged may continue to benefit borrowers.
 Fixed deposit rates have declined by 175-200 basis points since March 2020. Further, a cut in
deposit rates by banks will be negative for depositors.
 Monetary Policy Committee (MPC) will continue with the accommodative stance till necessary.
 RBI’s measures and their impact over last two years:
o Since January 2019, RBI has lowered repo rate by 250 bps. This includes cumulative cut of
135 bps in 2019 and 115 in 2020.
o In October 2019, RBI ordered linking of loans by banks with external benchmark rate like
repo rate. This lowered lending rates.
o Weighted average lending rates on fresh loans have shown decline by 98 bps from January
to October 2020. This happened after repo rate reduction of 115 bps in 2020.
o In case of private banks, weighted average lending rates on fresh loans have however
increased by 36 bps to 9.02% in October 2020 from 8.66% in September 2020. This is as
per RBI’s latest data on banks.
o The rise in lending rates of private banks could be because some of them are charging
higher spread on certain loans.
o Final lending rate depends on benchmark rate and spread, which is charged and decided
by banks as per their assessment of borrowers’ credit risk premium.
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RBI’S REPORT ON MANAGEMENT OF FOREIGN EXCHANGE RESERVES SHOWS THAT RBI

BOUGHT THREE TIMES MORE GOLD IN FIRST HALF (H1) OF FY21.
 RBI’s Report on Management of Foreign Exchange Reserves shows that RBI bought three times
more gold in the first half (H1) of FY21 in comparison with the gold it bought a year ago.
 AS per the RBI’s Report on Management of Foreign Exchange Reserves, RBI bought 15.24 tonnes
of gold in H1 (April-September 2020). It bought 5.61 tonnes in the year-ago period.
 RBI had 668.25 tonnes of gold at the end of September 2020. At the end of March 2020, RBI had
653.01 tonnes. At the end of September 2019, gold with RBI was 618.17 tonnes.
 Share of gold in total foreign exchange reserves increased from 6.40% at the end of March 2020 to
6.69% at the end of September 2020.
 Forex reserves are external assets in the form of gold, SDRs and foreign currency assets held by
the nation’s central bank.
 India’s Forex Reserve include:
o Foreign Currency Assets
o Gold reserves
o Special Drawing Rights
ADB LOWERS ITS FORECAST OF INDIA’S GDP CONTRACTION FOR FY21 FROM EARLIER 9%
TO 8%.
 Asian Development Bank (ADB) has lowered its forecast of India’s GDP contraction for FY21 from
earlier 9% to 8% by citing faster-than-expected recovery.
 ADB released a supplement to its Asian Development Outlook (ADO) 2020 and said that India’s
GDP contraction for the second quarter at 7.5% was faster-than-expected.
 ADB also lowered its South Asia forecast from earlier 6.8% contraction to (-) 6.1%. ADB projected
that inflation would ease and remain 4% for 2021-22.
 In the first 7 months of 2020-21, food inflation increased to an average of 9.1% due to a disrupted
supply chain. The increase in food inflation caused an increase in headline inflation to 6.9%.
RETAIL INFLATION (CPI BASED INFLATION) DECLINED TO 6.93% IN NOVEMBER.

 Retail inflation (CPI based inflation) declined from a six-year high level of 7.61% in October to
6.93% in November.
 Retail inflation of 6.93% in November is above government’s inflation target of 4% within range of
plus/minus 2%.
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 RBI mainly includes retail inflation when it decides monetary policy. Lower food inflation has led
to lower CPI-based inflation. Core inflation or the inflation excluding the food and energy sector is
still high at 5.5%.
 Inflation based on Consumer Food Price Index (CFPI) or food price inflation declined from 11% in
October to 9.43% in November.
 In November, both retail inflation and food price inflation for rural India were higher by 0.5%
points when compared with their values (6.73% and 9.43%) for urban India.
 Among major states, inflation was highest in Bihar (9.8%), West Bengal (9.42%), Andhra Pradesh
(9.08%) and Telangana (8.99%) in November. Delhi recorded the lowest inflation at 3.43%.
 WPI based inflation increased from 1.48% in October to 1.55% in November. The gap between
WPI based inflation and CPI-based inflation reached a five-month high of 5.5% in November 2020.
Changes in different sectors of WPI are given in the table:
Sectors included in WPI Inflation in October Inflation in November

Manufactured products 2.1% Increased to 2.97%
(more than 64% weightage in (Highest level recorded in 20 months,
WPI) shows continued industrial recovery
Primary articles 4.74% Declined to 2.72%
(Due to 13.2% decline in minerals prices
and 11.11% decline in crude petroleum and
natural gas prices)
Fuel and power segment -11% -9.87%
(Negative inflation of 9.87%)
(Source: The Hindu)
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INDIA’S OVERALL EXPORTS DURING APRIL-NOVEMBER 2020-21 RECORDS NEGATIVE

GROWTH OF 14% OVER APRIL-NOVEMBER PERIOD OF LAST YEAR.
 India’s overall exports during April-November 2020-21 have recorded negative growth of 14%
over the April-November period of last year.
 During April-November 2020-21, India’s overall exports stood at USD 304.25 Billion. This includes
merchandise exports of USD 173.66 Billion and services export of USD 130.66 Billion.
 India’s overall imports during April-November 2020-21 have recorded negative growth of 29.66%
over the April-November period of last year.
 During April-November 2020-21, India’s overall imports stood at USD 290.66 Billion. This includes
merchandise imports of USD 215.69 Billion and services imports of USD 74.98 Billion.
 During April-November 2020-21, the overall trade surplus is recorded at USD13.59Billion. During
the same period in 2019-2020, the deficit of USD 61.06 billion was recorded.
(Source: PIB)
SUSPENSION OF IBC TO CONTINUE TILL MARCH 31, 2021.

 Government has announced that the suspension of Insolvency and Bankruptcy Code (IBC) will
continue till March 31, 2021.
 Governments’ order announcing suspension of IBC was to continue till December 25. It has been
now extended.
 Government has extended suspension of IBC to help businesses deal with challenges posed by
Covid-19 pandemic.
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 Finance Minister has said that all defaults arising on or after March 25 will remain out of the IBC
for a full year.
 Insolvency and Bankruptcy Code (IBC):
o It provides for the resolution of insolvency cases within 180 days.
o The Insolvency and Bankruptcy Code (Amendment) Bill, 2019 was passed on 1 August
2019.
o It fixed a time-limit of 330 days for completion of the resolution process.
RBI DATA SHOWS RECOVERY OF MANUFACTURING COMPANIES IN SECOND QUARTER OF

FY21.
 RBI’s data on the performance of the private corporate sector has shown recovery of
manufacturing companies in the second quarter of FY21.
 Iron and steel, food products, cement, automobile and pharmaceuticals companies have
specifically shown recovery.
 In second quarter of FY21, contraction in sales remained at 4.3% on a year-on-year (y-o-y) basis. In
the first quarter, the sales shrank (contracted) by 41.1%.
 RBI has released data based on quarterly financial results of 2,637 listed non-government non-
financial (NGNF) companies.
 The contraction in nominal sales of non-IT services has also been lower at 14.5%, resulting from
the expansion in sales of telecommunication and real estate companies.
 As per the data, there was no change in sales growth of IT sector companies. It remained steady at
3.6% in second quarter of FY21.
 The data shows an improvement in the interest coverage ratio (ICR) of manufacturing companies
from 2.4 in first quarter to 4.6 in second quarter of FY21. ICR of non-IT services companies
remained below one.
 Interest coverage ratio (ICR) is the ratio of earnings before interest and tax to interest expenses. It
measures debt servicing capacity of a company. Its minimum value is 1. Both present and
emerging risks of a firm can be evaluated and understood with the help of ICR.
CEBR PREDICTS THAT INDIA WILL BE THE FIFTH-LARGEST ECONOMY BY 2025.

 A UK based think-tank, the Centre for Economics and Business Research (CBER), has predicted
that India will become the fifth-largest economy in 2025.
 According to the UK think-tank, India will overtake the United Kingdom by 2025, and it will
become the third-largest economy by 2030.
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 India will overtake Germany in 2027 and Japan in 2030. At present, India is the sixth-largest
economy in the world.
 CEBR has predicted that the Indian economy will grow by 9% in 2021 and 7% in 2020.
 Indian economy is one of the Worst- Hit economies by the Covid-19 pandemic. The Indian
economy has recorded a GDP contraction of 7.5% in Q2 and 23.9% in Q1.
 According to this think-tank, China will become the largest economy in the world in 2029.
 Centre for Business & Economic Research (CEBR): It is founded in 2006 in London. It is an
economic policy and forecasting research center of the United Kingdom.
FIEO ESTIMATES SHOW DECLINE IN INDIA’S EXPORTS IN 2020-21.

 FIEO estimates have shown that India’s exports may decline by 7.3% to $290 billion in 2020-21.
 FIEO President S K Saraf said that our efforts should be to take exports to $350 billion in 2021-22.
 He said that the order booking position for food including processed food, pharma, medical and
diagnostic products, technical textiles, chemical, plastics, and electronics and networking
products, is extremely good.
 FIEO President has also said that a V- shaped recovery will be seen in world trade.
 He talked about WTO’s recent forecast projecting a 9.2% decline in world merchandise trade
volume in 2020 and a 7.2% rise in 2021.
 He said that the four sectors are major contributors to global trade. They account for 40% of
global imports. These sectors are Electronics & Electricals, Machinery, Automobile, Pharma and
Medical equipment.
 India’s share in global imports is currently less than 0.9%.
 Federation of Indian Export Organisations (FIEO):
o It was formed in 1965 under the Ministry of Commerce and Industry.
o It is registered under Societies Registration Act XXI of 1860.
INFRASTRUCTURE AND ENERGY
COMBINED SOVEREIGN AND NON-SOVEREIGN LOAN OF $190 MILLION APPROVED BY ASIAN

DEVELOPMENT BANK (ADB).
 Combined sovereign and non-sovereign loan of $190 million has been approved by Asian
Development Bank (ADB).
 The loan is for modernisation of the power distribution system in Bengaluru and Bengaluru Smart
Energy Efficient Power Distribution Project.
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 ADB has approved combined sovereign ($100 million) and non-sovereign ($90 million) loan on a
pilot basis for the first time.
 The loan is approved to Bangalore Electricity Supply Company Limited (BESCOM), which is largest
of all state-owned distribution utilities in Karnataka.
 Asian Development Bank (ADB):
o It is a regional development bank. It was established on 19 December 1966.
o Its headquarters are located in Mandaluyong, Philippines. Its President is Masatsugu

Asakawa.
$2.5 MILLION TECHNICAL SUPPORT APPROVED BY ASIAN DEVELOPMENT BANK (ADB).

 $2.5 million technical support has been approved by the Asian Development Bank (ADB) to
develop advanced biofuel in India.
 The money for technical support is provided from Asia Clean Energy Fund and Republic of Korea’s
e-Asia and Knowledge Partnership Fund.
 Under the Clean Energy Financing Partnership Facility (CEFPF), the Japanese government provides
the fund for Asia Clean Energy Fund.
 Advanced biofuels are biofuels produced from non-food (non-edible) biomass. They are also
called second-generation biofuels.
 Agricultural residue, municipal solid waste, and used cooking oil are examples of non-food (non-
edible) biomass.
 In other words, advanced biofuels are biofuels produced from sources like Agricultural residue,
municipal solid waste, and used cooking oil.
 Clean Energy Financing Partnership Facility (CEFPF) was set up in 2007 for energy security in
developing member countries of ADB and lowering the rate of climate change.
 Asia Clean Energy Fund is a part of CEFPF. It comes under CEFPF. This fund was established by
Japan.
PM MODI LAID FOUNDATION FOR WORLD’S LARGEST HYBRID RENEWABLE ENERGY PARK.
 PM Modi laid the foundation for the world’s largest hybrid renewable energy park near Vighakot
village in Kutch district, Gujarat.
 The park will generate 30,000 MW (30 GW) power through solar panels and windmills on 72,600
hectares area.
 Gujarat government is setting up the park. India’s largest renewable power generator, Adani
group and Indian wind turbine manufacturer, Suzlon, are private players taking part in the
development of the park.
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 Adani Green Energy Limited, Central PSU NTPC and Sarjan Realties Ltd, Gujarat State Electricity
Corporation Ltd (GSECL) and Gujarat Industrial Power Company Ltd (GIPCL) are other prospective
developers at the park.
 During the foundation laying ceremony, PM Modi said that the park would save 5 crore tonnes of
carbon dioxide emissions.
 Half of the capacity of the park is likely to be developed in the next three years and full capacity is
likely to be developed in the next five years.
FIRST COE FOR SKILL DEVELOPMENT IN POWER SECTOR AT NATIONAL INSTITUTE OF SOLAR
ENERGY ESTABLISHED.
 First Centre of Excellence (CoE) for Skill Development in Power Sector at National Institute of Solar
Energy (NISE), Gurugram, has been established by Skill India.
 The CoE at NISE, Gurugram, has been established in partnership with the French Government.
 More specifically, Ministry of National Education and Youth, Government of the French Republic,
Schneider Electric and Ministry of Skill Development and Entrepreneurship have started the CoE.
 It is an effort to create a pool of trainers and assessors that will be highly skilled and will further
train candidates to increase their employability in electricity, automation and solar energy sectors.
 Skill India refers to the National Skills Development Mission. It was launched in 2015.
 National Institute of Solar Energy (NISE), Gurugram, is an autonomous centre of excellence of the
Ministry of New and Renewable Energy. It was formed in 2013.
 Government is also having National Institute of Wind Energy (NIWE) in Chennai. It was
established in 1998.
GOVERNMENT SIGNS $300 MILLION LOAN AGREEMENT WITH ADB TO IMPROVE RURAL
POWER DISTRIBUTION NETWORK IN UP.
 Government has signed $300 million loan agreement with ADB to improve rural power
distribution network in Uttar Pradesh.
 Officials of ADB and Ministry of Finance were signatory to tranche (portion) 1 of this loan for Uttar
Pradesh Power Distribution Network Rehabilitation Project.
 Overall, the $430 million multi-tranche financing facility (MFF) was approved for the project. The
project will also improve capacity of Uttar Pradesh Power Corporation Limited (UPPCL).
 A $ 2 million technical assistance (TA) grant from ADB’s TA Special Fund and the Japan Fund for
Poverty Reduction will be added to MFF.
o It is a regional development bank established in 1966.
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o Members: 68 countries (49 members are from Asia pacific region)
o It is headquartered in Mandaluyong, Philippines.
o Masatsugu Asakawa is the current president of ADB. Ashok Lavasa has recently become
Vice-President of ADB.
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS ISSUES DRAFT NOTIFICATION FOR

ADOPTION OF E20 FUEL.
 Ministry of Road Transport and Highways has issued a draft notification for the adoption of the
E20 fuel.
 The Ministry has invited public comments for the adoption of E20 fuel. The adoption of E20 fuel
will reduce vehicular emissions and India’s oil import bill.
 Currently, 10% ethanol blending is permitted. India has achieved 5.6% of blending as of 2019. E20
fuel is a mixture of 20% ethanol and 80% gasoline.
DEEP SEA PORT TO BE SET UP IN EAST MIDNAPORE AT TAJPUR.

 Deep sea port will be set up in East Midnapore at Tajpur and the West Bengal government has
invited Expressions of Interest (EoI) for this purpose.
 Tajpur is located nearly 200 kms from Kolkata. West Bengal government will invest Rs 4,200 crore
in the port project.
 The project is likely to get Rs 1500 crore as investments. It will boost the economy and generate
jobs in the region.
NEW BHAUPUR-NEW KHURJA SECTION OF EASTERN DEDICATED FREIGHT CORRIDOR

INAUGURATED BY PM MODI.
 New Bhaupur-New Khurja section of Eastern Dedicated Freight Corridor (EDFC) has been
inaugurated by PM Modi.
 New Bhaupur-New Khurja section of EDFC is 351-kilometre long. It is in UP. PM also inaugurated
EDFC’s Operation Control Centre (OCC) at Prayagraj.
 The OCC is an ecofriendly building having GRIHA4 rating. It has been built as per norms of
Sugamya Bharat Abhiyan.
 New Bhaupur-New Khurja section is going to benefit local industries given in the next table.
Region/District Name of Indutry

Pukhrayan region, Kanpur Dehat Aluminium industry
Aligarh Locks and hardware
Khurja Pottery products
Auraiya Dairy sector
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Etawah Textile production and block printing

Hathras Asafoetida production
Firozabad Glassware industry
 EDFC starts from Punjab (Sahnewal near Ludhiana) and ends in West Bengal (Dankuni). It will pass
through UP, Bihar, Haryana, and Jharkhand.
THE CONSTRUCTION OF INDUSTRIAL CORRIDOR NODES AT KRISHNAPATNAM AND

TUMAKURU INDUSTRIAL AREAS APPROVED.
 The construction of industrial corridor nodes at Krishnapatnam and Tumakuru industrial areas has
been approved by Cabinet Committee on Economic Affairs (CCEA).
 Krishnapatnam industrial area is located in Andhra Pradesh and Tumakuru industrial area is
located in Karnataka. They are part of the Chennai-Bengaluru Industrial Corridor (CBIC).
 Additionally, CCEA has approved Multi Modal Logistics Hub and Multi Modal Transport Hub at
Greater Noida, UP.
 In addition to two hubs and two industrial corridor nodes, the opening of three Indian Missions in
2021 has been approved by Union Cabinet.
 The three Indian Missions would be opened in Estonia, Paraguay and Dominican Republic in 2021.
 Furthermore, a Memorandum of Understanding (MoU) with Bhutan has been approved. The MoU
is on cooperation in the peaceful uses of outer space. It was signed in November.
 Government has approved five industrial corridor projects as given below:
Industrial Corridor States Number of states
Uttar Pradesh, Haryana, Six

Delhi Mumbai Industrial
Rajasthan, Madhya Pradesh,
Corridor (DMIC)
Gujarat, Maharashtra
Punjab, Haryana, Uttar Pradesh, Seven

Amritsar Kolkata Industrial
Uttarakhand, Bihar, Jharkhand,
Corridor (AKIC)
West Bengal
Chennai Bengaluru Industrial Andhra Pradesh, Karnataka, Tamil Four

Corridor (CBIC) Nadu, Kerala
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East Coast Economic Corridor Four

(ECEC) with Vizag Chennai West Bengal, Odisha, Andhra
Industrial Corridor (VCIC) as Pradesh, Tamil Nadu
Phase-1
Bengaluru Mumbai Industrial Two

Karnataka, Maharashtra
Corridor (BMIC)
AGRICULTURE
CENTRE OF EXCELLENCE FOR VEGETABLE AND FLOWERS INAUGURATED AT WAYANAD.

 Centre of Excellence for Vegetable and Flowers has been inaugurated at Regional Agricultural
Research Station in Ambalavayal village of Kerala’s Wayanad district.
 Under the Indo-Dutch joint action plan, Netherlands government is providing technological
support for Centre of Excellence for Vegetable and Flowers.
 Agriculture Department, State Horticultural Mission and Kerala Agricultural University is

implementing the project.
 Mission for Integrated Development of Horticulture (MIDH) will provide Rs 7 crore and Kerala
Government will provide Rs 6 crore under Rebuild Kerala Initiative.
 Centre will have a post-harvest technology centre and will be a State-level demonstration centre
for open precision farming for seasonal flowers and vegetables cultivation and seed production. It
also has a Tissue Culture Laboratory.
 Mission for Integrated Development of Horticulture (MIDH):
o It is a centrally sponsored scheme. It is being implemented since 2014-15.
o National Horticulture Mission (NHM) is a sub-scheme under it.
o Horticulture Mission for North East & Himalayan States (HMNEH), National Bamboo
Mission (NBM), National Horticulture Board (NHB), Coconut Development Board (CDB)
and Central Institute for Horticulture (CIH) are implementing other sub-schemes under
MIDH.
CORPORATES/COMPANIES
WORLD’S LARGEST SATELLITE-BASED NARROW BAND-INTERNET OF THINGS (NB-IOT)

NETWORK FOR FISHERMEN, FARMERS, CONSTRUCTION, AND MINING AND LOGISTICS
ENTERPRISES LAUNCHED.
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 World’s largest satellite-based Narrow Band-Internet of things (NB-IoT) network has been
launched for fishermen, farmers, construction, and mining and logistics enterprises by Bharat
Sanchar Nigam (BSNL).
 Skylotech India (Skylo) developed NB-IoT indigenously. It will be linked satellite ground
infrastructure of BSNL.
 Skylotech India (Skylo) offers an IoT network in India. It was in the news in January 2020 for raising
$103 million in the second round of funding led by SoftBank Group of Japan.
 Narrow Band-Internet of things (NB-IoT) is an LPWAN radio technology. The full form of LPWAN
is Low Power Wide Area Network. It is developed for connecting IoT devices.
 Bharat Sanchar Nigam (BSNL):
o It was founded in 2000. It is a Public Sector Undertaking wholly owned by Government of

India.
o Pravin Kumar Purwar is its chairman & MD. It is headquartered in New Delhi.
o It provides telecom services all over India except Delhi and Mumbai.
BHARTI AXA LIFE INSURANCE TO SUPPORT HEALTHCARE WORKERS WORKING AGAINST

COVID-19.
 In partnership with Primero Skills & Training, Bharti AXA Life Insurance will support healthcare
workers working against Covid-19.
 Bharti AXA Life Insurance has launched ‘GotYouCovered’ campaign and linked sharing of this
campaign on social media with the number of face masks it will distribute to healthcare workers
or students having registration with Primero Skills.
 With every share of ‘GotYouCovered’ on social media, one face mask will be given by Bharti AXA
Life Insurance to one healthcare worker or student registered with Primero Skills.
 ‘GotYouCovered’ campaign aims at encouraging people to acknowledge the efforts of frontline

healthcare workers against Covid-19.
 Bharti AXA Life Insurance is a joint venture company between Bharti Enterprises Limited and
French insurance firm Axa.
ASIAN DEVELOPMENT BANK (ADB) SIGNS $40-MILLION LOAN AGREEMENT WITH

NORTHERN ARC CAPITAL (NACL).
 Asian Development Bank (ADB) has signed a $40-million loan agreement with Northern Arc Capital
(NACL).
 The loan is aimed at helping microfinance borrowers and micro, small, and medium-sized
enterprises (MSMEs) in India.
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 The loan agreement will enable NACL to support small and mid-sized NBFCs across microfinance,
small business loans and affordable housing finance.
 Northern Arc Capital (NACL) is a Chennai-based NBFC. It connects NBFCs, microfinance

institutions (MFIs) and housing finance companies (HFCs) to mainstream financers for debt
fundraising.
o It is a regional development bank established in 1966.
o Members: 68 countries (49 members are from Asia pacific region)
o It is headquartered in Mandaluyong, Philippines.
o Masatsugu Asakawa is the current president of ADB. Ashok Lavasa has recently become
Vice-President of ADB.
INDIA ACCELERATOR SIGNED MOU WITH DEPARTMENT OF INFORMATION TECHNOLOGY,

ELECTRONICS, AND COMMUNICATION (DITECH) AND STARTUP HARYANA.
 India Accelerator has signed MoU with Department of Information Technology, Electronics, and
Communication (DITECH), Haryana government and Startup Haryana.
 The partnership is aimed at developing a robust startup ecosystem in Haryana to stimulate

innovation and growth of disruptive startups.
 Under MoU, India Accelerator will make its online program available to young entrepreneurs to
equip them with the knowledge, mentorship, and connections. It aims to support startups
registered with Startup Haryana.
 India Accelerator is a seed-stage accelerator program. It is an Indian institution with Global

Accelerator Network. Accelerator is a term that refers to programs that provide support to young
startups.
TWO PLANTS OF EMAMI LIMITED GET WHO-GMP (GOOD MANUFACTURING PRACTICES)

AND CERTIFICATE OF PHARMACEUTICAL PRODUCTS (COPP) CERTIFICATION.
 Two plants of Emami Limited have got WHO-GMP (Good Manufacturing Practices) and Certificate
of Pharmaceutical Products (CoPP) certification.
 The two plants are located at Vapi and Masat in Valsad District, Gujarat. They produce healthcare
products under Zandu brand.
 The certification is for over 40 Ayurvedic products. It is valid for three years. Emami has also
received the same certification in 2017 for 11 products under Zandu brand.
 In India, Drugs Controller General of India (DCGI) grants WHO-GMP and CoPP for individual
products after inspection and evaluation of manufacturing facility by representatives from the
Central Drug Standards Control Organization.
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 Emami is a Kolkata based Indian conglomerate (multi-industry) company.
SBI LIFE INSURANCE ACQUIRES STAKE IN PAISALO DIGITAL.

 SBI Life Insurance has acquired 8.99% stake in Paisalo Digital, a category “B” – Non Deposit taking
NBFC.
 SBI Life Insurance purchased 38 lakh equity shares of Paisalo Digital for consideration of ₹186.20
crore.
 SBI Life Insurance is a joint venture between SBI and BNP Paribas Cardif, a French multinational
bank. Its CEO is Mahesh Kumar Sharma.
 Paisalo Digital is a category “B” – Non Deposit taking NBFC. RBI has categorized NBFCs into
Deposit taking NBFCs and Non-Deposit taking NBFCs.
A MEMORANDUM OF UNDERSTANDING (MOU) SIGNED BETWEEN SEAWAYS SHIPPING AND

LOGISTICS LTD AND MOL LOGISTICS (INDIA).
 A Memorandum of Understanding (MoU) has been signed between Seaways Shipping and
Logistics Ltd and MOL Logistics (India).
 The MOU aims to provide supply chain and turnkey logistics services in India, including
warehousing, customs clearance, container line, vessel agency, transportation, bulk cargo
handling, supply chain management and procurement.
 MOL Logistics (India) is the India unit of MOL Logistics Co Ltd of Japan. Seaways Shipping and
Logistics Limited is a company of Seaways Group.
 Seaways Group is second largest logistics services provider in India.
GREAT EASTERN SHIPPING CO LTD BECOMES INDIA’S BIGGEST SHIP OWNER BY FLEET SIZE.
 Great Eastern Shipping Co Ltd has become India’s biggest ship owner by fleet size.
 Shipping Corporation of India Ltd (SCI) has remained India’s biggest ship owner for many years.
 Although Great Eastern Shipping Co Ltd has now become bigger than SCI in terms of fleet size, SCI
continues to be the biggest ship owner in terms of market capitalization.
 Higher market capitalization (market cap) means the market value of SCI’s outstanding shares is
more than that of Great Eastern Shipping Co Ltd.’s outstanding shares.
 Great Eastern Shipping Co Ltd now owns 69 ships (10 more than the 59 ships owned by SCI).
 Great Eastern Shipping Co Ltd.’s ships have 3.86 million dead weight tonnes (DWT). DWT shows
cargo carrying capacity of ships.
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 On 22 December, expression of interest was invited by the Department of Investment and Public
Asset Management (DIPAM) to privatise the Shipping Corporation of India. The government wants
to sell its 63.75% stake in Shipping Corporation of India Ltd.
 Shipping Corporation of India was founded in 1961. It is headquartered in Mumbai. It is a Public

Sector Enterprise owned by the government.
Read General Awareness Study Material
TAXATION SYSTEM
CBIC MAKES EIGHT-DIGIT HSN CLASSIFICATION FOR 49 CHEMICAL-BASED PRODUCTS

MANDATORY.
 Central Board of Indirect Taxes and Customs (CBIC) has made eight-digit HSN classification for 49
chemical-based products mandatory.
 It would now be mandatory to mention HSN classification for these products when issuing GST
invoices.
 Cyanogen chloride, hydrogen cyanide, phosphorous trichloride, trimethyl phosphate, sulfur

dichloride and triethanolamine are names of some of the chemical products.
 Industry will have to move from the current two/four-digit levels and change Enterprise Resource
Planning (ERP).
 Harmonized Commodity Description and Coding System (HSN) is a multipurpose international

product nomenclature. World Customs Organisation has developed it. It became effective in 1988.
It is generally called the Harmonized System (HS).
 World Customs Organisation is an intergovernmental organization. It was formed in 1952. Its

headquarters are located in Belgium, Brussels. It was earlier called Customs Co-operation Council.
WORLD ECONOMY
CRUDE OIL PRICES RISE DUE TO SUCCESSFUL CORONAVIRUS VACCINE TRIALS.

 Crude oil prices have increased due to successful coronavirus vaccine trials.
 Both benchmarks (Brent crude futures and US West Texas Intermediate crude) gained 5% last
week.
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 The rise in prices is also because the OPEC+ meeting on 30 November and 1 December is likely to
continue crude output cuts for 3-6 months.
 Brent crude futures rose by 0.5% and US West Texas Intermediate crude jumped by 0.2%.
 US Food and Drug Administration (FDA) may approve the distribution of vaccine produced by
Pfizer Inc and German partner BioNTech in mid-December.
 In May 2020, US government has initiated Operation Warp Speed for faster development,
manufacturing and distribution of Covid-19 vaccines.
RUSSIA WILL SUPPORT 500,000 BARRELS PER DAY (BPD) INCREASE IN OIL PRODUCTION BY
OPEC+.
 Russia will support 500,000 barrels per day (bpd) increase in oil production by OPEC+ from
February.
 Russia will support an increase in oil production at the summit of the most important global oil
producers to be held on 4 January 2021.
 In April, OPEC countries, Russia and other most important oil producers agreed to reduce oil
output due to less oil demand caused by the Covid-19 pandemic.
 OPEC plus refers to 13 members of the Organization of the Petroleum Exporting Countries (OPEC)
and 10 other non-OPEC oil exporting countries.
 OPEC:
o It is an intergovernmental organization of petroleum exporting countries.
o It was founded on 14 September 1960 in Baghdad.
o It is headquartered in Vienna, Austria.
o It now has 13 members after Qatar renounced its membership on 1 January 2019.
REPORTS AND INDICES
SMUGGLING IN INDIA REPORT 2019-20 RELEASED BY FINANCE MINISTER.

 Smuggling in India Report 2019-20 has been released by Finance Minister Nirmala Sitharaman.
 The report was released during 63rd Founding Day Celebrations of the Directorate of Revenue
Intelligence (DRI).
 The report is an analysis of trends of organised smuggling on Gold and Foreign Currency, Narcotic
Drugs, Security, Environment and Commercial Frauds.
 The awards given during 63rd Founding Day Celebrations are Bravery awards DRI Utkrisht Seva
Samman, 2020.
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 The winners of Bravery awards are Najimudheen T S and Sumer Sen (an independent witness).
 B. Sankaran, an Indian Revenue Service (IRS) officer has won the DRI Utkrisht Seva Samman, 2020.
 Directorate of Revenue Intelligence:
o It was constituted on 4 December 1957. It is an apex body for anti-smuggling intelligence

and investigation.
o It works under the Central Board of Indirect Taxes & Customs in the Ministry of Finance.
o It solves the cases related to the smuggling of arms, ammunition and explosives, narcotic
drugs and psychotropic substances, gold and diamonds, counterfeit currency notes and
wildlife items.
o It is headed by a Director-General rank Secretary of the Government of India.
MCAFEE’S REPORT FINDS LOSSES FROM CYBERCRIME AT OVER $1 TRILLION.

 McAfee’s “The Hidden Costs of Cybercrime report” has found that losses from cybercrime all over
the world stand at over $1 trillion.
 The global losses of over $1 trillion are equal to more than 1% of global GDP. Global GDP was $142
trillion in 2019.
 As per the report, the global losses increased by more than 50% from the $600 billion losses
reported in a study carried out in 2018.
 McAfee’s report is in collaboration with Center for Strategic and International Studies (CSIS).
 The report focuses on both significant financial and unseen impacts of cybercrime all over the
world.
 McAfee is an American company providing computer security software globally.
AS PER THE LATEST REPORT BY NPCI, PAYTM PAYMENTS BANK HAS BEST TECHNOLOGY IN
INDIA.
 As per the latest report by NPCI, Paytm Payments Bank Ltd (PPBL) has the best technology in India.
 As per the report, PPBL has the lowest technical decline rate at 0.02% among all UPI remitter
banks. It has a decline rate of 0.04% among all UPI beneficiary banks.
 As per the report, the technical decline rate was higher in the case of all other major banks. It was
around 1%.
 Most other banks use third-party apps for UPI transactions. PPBL is the only bank in India that
organically drives UPI transactions from Paytm’s ecosystem.
 Paytm Payments Bank Ltd was launched in 2017. Satish Kumar Gupta is its MD and CEO.
 National Payments Corporation of India (NPCI):
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o It was formed in 2008 by the Reserve Bank of India (RBI) and Indian Banks’ Association
(IBA).
o It is a “Not for Profit” Company headquartered in Mumbai.
HDFC, ICICI, AND SBI BECOME TOP THREE BANKS AS PER BFSI MOVE RS AND SHAKERS 2020
WIZIKEY NEWSMAKERS REPORT.
 HDFC, ICICI, and SBI have become the top three banks as per BFSI Movers and Shakers 2020
Wizikey Newsmakers Report released by Wizikey.
 These three banks have done better than other banks in both quantity and quality of news.
 As per the report, HDFC, ICICI, SBI, Yes Bank, PNB, HSBC Bank, Kotak Mahindra Bank, Bank of
Baroda, Deutsche Bank and IDBI are the top-10 banks of 2020.
 In the category of top UPI and Wallets, Google Pay and Phone Pe have achieved first and second
rank, respectively.
 In the category of Neo Banks, Yono, Neo and Kotak 811 secured the first, second and third rank,
respectively.
 In the category of NBFCs, Dewan Housing Finance Corporation achieved the first rank. Its overall
rank was 15.
 Wizikey is a PR- SaaS (Software as a Service) start-up. Its report talks about the top 100 banks in
India and emerging BFSI (banking, financial services and insurance) models such as Wallets and
UPI, Neo Banks, NBFCs, Small Finance Bank, Payments Banks.
 Neo Banks are 100% digital (fully digital). They do not have any physical branches. Total 10 Neo
Banks are functional in India. RBI does not currently provide licenses to Neo Banks.
INFOSYS BECOMES TOP ITES PLAYER OF 2020 AS PER THE ITES POWER MOVERS 2020
REPORT BY WIZIKEY.
 Infosys has become top Information Technology Enabled Services (ITeS) player of 2020 as per the
ITeS Power Movers 2020 Report by Wizikey.
 Among the top ITeS player of 2020 as per the ITeS Power Movers 2020 Report, TCS is ranked at
second place. Wipro is ranked at third place. IBM and Cognizant are ranked at fourth and fifth
place, respectively.
 The report by Wizikey also says that Work from Home and Destination Hiring are new emerging
trends in 2020.
 The report provides a list top 25 players in the Indian ITeS sector. Dell, HP, Cisco, and Oracle are
top ITeS players in the Enterprise Product category. Wizikey is a PR- SaaS (Software as a Service)
start-up.
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MUKESH AMBANI’S RANK IN HURUN GLOBAL RICH LIST DROPS FROM 4 T H PLACE IN AUGUST
TO 8 T H PLACE IN DECEMBER.
 Mukesh Ambani’s rank in the Hurun global rich list has dropped from 4th place in August to 8th
place in December.
 However, Mukesh Ambani continues to be the richest Asian as per the data gathered by Hurun
Research.
 Amazon founder Jeff Bezos is ranked at one and Elon Musk is ranked at second place. Elon Musk is
the founder of SpaceX.
 In August, Elon Musk did not appear in Hurun’s Top 10 rich list. Bernard Arnault is ranked third. He
is Louis Vuitton SE group head.
 Microsoft co-founder Bill Gates and Facebook founder Mark Zuckerberg are ranked at fourth and
fifth slot, respectively.
 Mukesh Ambani’s net worth dropped from $90 billion in August to $82 billion in December.
APPOINTMENTS
BBB MAKES RECOMMENDATION FOR THE POST OF CHAIRMAN AND MANAGING DIRECTOR
OF SIDBI.
 Bank Board Bureau (BBB) has made a recommendation for the post of Chairman and Managing
Director of SIDBI.
 It recommended S Ramann for the post of Chairman and Managing Director of SIDBI. He is
presently CEO of National e-Governance Services Ltd (NeSL).
 BBB has also recommended Shivendra Tomar for the post of MD&CEO of IFCI Ltd. He is presently
Managing Director of IFCI Ltd’s subsidiary, IFCI Venture Capital Funds Ltd.
RE-APPOINTMENT OF UDAY KOTAK AS MD & CEO OF KOTAK MAHINDRA BANK APPROVED

BY RBI.
 The Reserve Bank of India has approved the re-appointment of Uday Kotak as MD & CEO of Kotak
Mahindra Bank for the next three years.
 RBI also approved the appointment of Prakash Apte, as part-time Chairman, and Dipak Gupta as
Joint MD of Kotak Mahindra Bank.
 The term of these appointments will start on 1 January 2021.
 Kotak Mahindra bank:
o Kotak Mahindra Bank is a private sector bank in India.
o Its CEO is Uday Kotak.
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o It was established in 2003.
o “Lets make money simple, Ab Kona Kona Kotak” is the slogan of Kotak Mahindra Bank.
SIDDHARTH DHAMIJA APPOINTED AS CHIEF EXECUTIVE OFFICER (CEO) OF ZAAKPAY.

 Siddharth Dhamija has been appointed as Chief Executive Officer (CEO) of Zaakpay.
 Siddharth Dhamija has earlier served at PayPal India and as Chief Growth Officer at Razorpay.
 Earlier, MobiKwik has given Chandan Joshi title of its co-founder.
 Zaakpay is a wholly-owned subsidiary and payment gateway of MobiKwik.
 MobiKwik is a fintech platform founded by Bipin Preet Singh and Upasana Taku in 2009. It is
headquartered in Gurugram. Its CEO is Bipin Preet Singh.
APPOINTMENT OF SANDEEP BATRA AS EXECUTIVE DIRECTOR OF ICICI BANK APPROVED BY

RBI.
 Appointment of Sandeep Batra as Executive Director of ICICI Bank has been approved by RBI for a
period of three years with effect from December 23, 2020.
 He has been working with ICICI Group for the last 20 years. In November 2019, the proposal for his
appointment as executive director of ICICI Bank was rejected by RBI.
 RBI rejected the proposal after SEBI imposed a fine on Sandeep Batra in case involving the merger
of Bank of Rajasthan.
 But, in September 2020, Securities Appellate Tribunal made changes to SEBI order imposing
penalty on Mr. Batra and converted the penalty into a warning.
 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.
COMMITTEES/ COMMISSIONS/TASKFORCES
MINISTRY OF INFORMATION & BROADCASTING FORMS COMMITTEE TO REVIEW

GUIDELINES FOR TELEVISION RATING AGENCIES.
 Ministry of Information & Broadcasting has formed a committee to review present guidelines for
Television Rating agencies.
 Prasar Bharti CEO Shashi Shekhar Vempati is the Chairman of committee. Dr Shalabh, Dr Rajkumar
Upadhyay and Pulak Ghosh are other members of the committee.
 The committee will also examine various evolving dynamics of the television rating system. It will
submit its report in two months.
 It will also study Telecom Regulatory Authority of India’s recommendations on television rating
systems in India.
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 Present Guidelines on Television Rating Agencies in India were notified by Ministry of Information
& Broadcasting in 2014.
MISCELLANEOUS
CSE report finds sugar syrup adulteration in most honey brands.
 Centre for Science and Environment report has found sugar syrup adulteration in honey from 10
out of 13 brands in the Indian market.
 In 2018, Consumer Voice has carried out a study on the top 10 honey brands and found the same.
 Modified sugar syrup is imported from China. The adulteration has become known due to Nuclear
Magnetic Resonance (NMR) tests.
 FSSAI uses NMR tests for honey exported from India and not for honey consumed domestically.
 Top brands passed tests to detect C4 sugar, which shows basic adulteration through cane sugar.
But smaller brands failed them. However, both top and small brands failed NMR tests, which are
used globally.
 Food adulteration is the process of changing the quality or nature of food. It involves adding
adulterants as well as removing important substances from food. Common food adulterants are
given below.
Food/Food Product Common Adulterants

Milk Water, Detergent, Synthetic milk, urea
Milk products Starch in khoya, chenna, paneer & mashed
potatoes, sweet potatoes and other starches in
ghee/butter
Honey Sugar, Sugar syrup, Glucose
Sugar/jaggery Chalk powder
Pulses Artificial Colours, khesari dal in dal whole and
split, chakunda beans
Rice Pebble, damaged grains, polish
Food grains Dust, pebble, stone, straw, weed seeds,
damaged grains, ergot (a fungus), Dhathura
seeds
Ragi Rhodamine B
Spices soap, stone, Papaya seeds in black pepper
Brick powder and Artificial colours in Red chilli
powder
Cassia bark in Cinnamon
Grass seeds colored with charcoal in cumin seeds
Argemone seeds in mustard
Chalk powder, metanil yellow and lead chromate
in Turmeric
colored dried tendrils of maize cob in saffron
Vegetables and fruits Wax Coating on Apple
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Malachite green in green chilli and green

vegetables
Artificial colour on green peas
Salt Chalk powder
Coconut oil Other oils (Palm oil, argemone oil, paraffin,
engine oils)
Coffee and tea Chicory powder in coffee powder; iron filings in
tea leaves, clay in coffee powder
High-level inter-ministerial Apex Committee for Implementation of Paris Agreement (AIPA) formed.
 High-level inter-ministerial Apex Committee for Implementation of the Paris Agreement (AIPA) has
been formed by the Ministry of Environment, Forest and Climate Change (MoEFCC).
 Secretary, MoEFCC is the chairman of AIPA and its purpose is coordinated response on climate
change to ensure that India remains on track to meet its obligations under Paris Agreement.
 Its members will be senior officials from fourteen ministries. It will also be a National Authority to
regulate carbon markets in India under Article 6 of the Paris Agreement.
 It will form guidelines for thinking about projects or activities under Article 6 and issue guidelines
on carbon pricing and market mechanisms.
 Paris Climate Agreement is an initiative of the UN Framework Convention on Climate Change

(UNFCCC) in 2016, along with 188 countries.
 The objective of the Paris Agreement is to limit the rise in global average temperature to below
2°C above pre-industrial levels.
Kotak International REIT Fund of Funds scheme launched by Kotak Mahindra Asset Management
Company.
 Kotak International REIT Fund of Funds scheme has been launched by Kotak Mahindra Asset
Management Company.
 It is the first diversified Real Estate Investment Trusts (REIT) Mutual Fund of India. It will invest in
SMAM Asia REIT Sub Trust Fund.
 SMAM Asia REIT Sub Trust Fund is managed by Sumitomo Mitsui DS Asset Management Company.
 Real Estate Investment Trusts (REIT):
o It is a company that owns, operates or finances income-producing properties.
o These are regulated by SEBI.
o Embassy Office Parks REIT is the first REIT in India.
o The structure of REITs is similar to that of a mutual fund. But there also lies the difference
between mutual funds and REITs as in the case of mutual funds, the underlying asset is
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bonds, stocks and gold, while REITs invest in physical real estate like apartment buildings,
cell towers, data centers, hotels, medical facilities, offices, retail centers, and warehouses.
Maximum number of targeted ransomware incidents reported from India and Australia in 2020.
 As per a new report by Kaspersky, the maximum number of targeted ransomware incidents in Asia
Pacific region had been reported from India and Australia in 2020.
 In 2020, a targeted ransomware group had stolen or taken data from at least 61 entities from Asia
region.
 Maze ransomware gang published stolen data in some cases. Maze ransomware was earlier called
ChaCha ransomware. It was formed in 2019. Maze group has recently announced its closing.
 As per the report, Maze group had stolen data from at least 334 companies and organizations.
Kaspersky Lab is a Russia based multinational cybersecurity and anti-virus provider.
 Ransomware is a type of malware in which the victim’s data is published or the victim is denied
access to data until the payment of ransom.
 Reveton, CryptoLocker, CryptoWall, Fusob, WannaCry, Petya, Bad Rabbit and SamSam are some
examples of ransomware.
YouTube launches first-ever regional language Ads Leaderboard.
 YouTube has launched its first-ever regional language Ads Leaderboard, showing top ten regional
language advertisements watched on YouTube.
 The leaderboard includes 10 most-watched ads in the second half (July-December) of 2020 in six
regional Indian languages. Some ads included in top 10 are given below:
o An ad by Amul in Tamil
o Malayalam ad ‘#MassEntri with Entri App!’ by Entri App
o An ad in Bengali by Goodknight
 YouTube is a video sharing platform. It is owned by Google. It was founded by Chad Hurley, Steve
Chen and Jawed Karim in 2005.
Global Sustainability Award 2020 won by Kerala-based ESAF SFB.
 Global Sustainability Award 2020 has been won by Kerala-based ESAF (Evangelical Social Action
Forum) SFB (Small Finance Bank).
 Global Sustainability Awards are provided by Energy and Environment Foundation, a not-for-
profit and independent non-governmental organization (NGO).
 ESAF SFB (Small Finance Bank) was chosen for Global Sustainability Award 2020 for its efforts and
steps towards positively impacting the environment.
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 Bharat Petroleum Corporation Limited (BPCL) has won Global Sustainability Award 2020 in
Platinum Category.
 Bharat Petroleum Corporation Ltd (BPCL) is a Maharatna oil refining and marketing company. Its
headquarters are located in Mumbai.
 Currently, it is owned by the Government of India (52.98%). But, the government wants to
privatize BPCL and has invited bids for selling its 52.98% stake in March 2020.
 ESAF SFB is a Kerala based Small Finance Bank (SFB). SFBs offer basic banking services (deposits
and lending) only with the aim of financial inclusion. They are governed by RBI only and need
minimum paid-up equity capital of Rs. 100 crore.
Government signs $1 billion loan agreement with New Development Bank (NDB).
 Government has signed $1 billion loan agreement with New Development Bank (NDB).
 The loan has tenor of 30 years. This includes a 5-year grace period. The purpose of loan is to
create durable rural infrastructure assets relating to Natural Resource Management (NRM).
 It also intends to generate employment under Mahatma Gandhi National Rural Employment
Guarantee Scheme (MGNREGS) for rural poor.
 It aims to generate employment especially for migrant workers returned due to Covid-19
pandemic. The funding will increase demand and help economic recovery.
 World Bank Board of Executive Directors has given approval to four projects worth over $800
million. These projects include $400-million social protection response programme for poor and
vulnerable households severely hit by Covid.
 New Development Bank:
o It was earlier named as BRICS Development Bank.
o It was established by BRICS states in July 2014.
o It is headquartered in Shanghai, China.
o Its President is Marcos Prado Troyjo.
Coal Import Monitoring System (CIMS) to become effective from 1 February 2021.
 As per the notification issued by Directorate General of Foreign Trade, Coal Import Monitoring
System (CIMS) will become effective from 1 February 2021.
 Importers will be required to provide advance information about import of items and get an
automatic registration number. The validity of the automatic registration number will be 75 days.
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 To obtain registration number, importers will pay registration fee of ₹1 per thousand on Cost,
Insurance and Freight (CIF) value. The registration fee would be subject to minimum of ₹500 and
maximum of ₹1 lakh.
 CIMS would be applicable for different categories of coal including anthracite, bituminous, coking,
and steam.
 The notification also provides list of items. The Bill of Entry on or after February 1 for these listed
items will be governed by CIMS.
 Earlier, import management system was introduced by government for a number of steel items.
 A Bill of Entry is a legal document that enables importers to claim Input Tax Credit (ITC) on goods.
 Directorate General of Foreign Trade:
o It is an attached office under the Ministry of Commerce and Industry.
o It is responsible for administering laws regarding foreign trade and foreign investment in
India.
o Its headquarters is in New Delhi. Amit Yadav is currently serving as Director-General of

DGFT.
Futures trading in natural rubber launched by MCX.
 Multi Commodity Exchange of India Limited (MCX) has launched futures trading in natural rubber.
 Only four contracts of rubber futures are currently made available for trading. The available
contracts will expire in January, February, March and April of 2021.
 Acumen Capital Market has become the first company, which made the first trade in MCX rubber
contract.
 The traders can trade in ‘Ribbed Smoked Sheets4 (RSS4)’ quality for a minimum lot size of 1 tonne
through futures contract.
 The contract has a tick size (minimum price movement) of Rupee 1. This means that if last traded
price was 100, the next two best bids should be 99 and 98. The bid price cannot be 98.50 because
the tick size is Rs 1.
 Multi Commodity Exchange of India Limited (MCX):
o It was set up in 2003.
o It is Mumbai based. It is the first listed exchange in India.
o Its CEO is P.S. Reddy.
A modified scheme to improve ethanol distillation capacity approved by government.
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 A modified scheme to improve ethanol distillation capacity has been approved by government.
 Under the scheme, the government will provide interest subvention to set up a new grain based,
molasses based, dual feed, and to expand existing distilleries.
 Government will also provide interest subvention to install a Molecular Sieve Dehydration column
for the conversion of rectified spirit to ethanol in the existing distilleries.
 Interest subvention will be provided for a period of five years. Distilleries supplying at least 75% of
ethanol from newly added distillation capacity to Oil Marketing Companies would be eligible for
interest subvention.
 Government aims to achieve 10% ethanol blending in petrol by 2022, 15% by 2025 and 20% by
2030.
 Ethanol distillation capacity of molasses based distilleries has been more than doubled from 200
crore litres in 2014 to 426 crore litres in 2020.
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Indian Economy/Financial Market ................................................................................................................ 18

 Small Industries Development Bank of India (SIDBI):

o It functions under jurisdiction of Department of Financial Services, Ministry of Finance. RBI

RBI PROPOSES AN INCREASE IN LIMIT FOR CONTACTLESS CARD TRANSACTIONS.

o AePS (Aadhaar Enabled Payment System)

o IMPS (Immediate Payment Service)

o NETC (National Electronic Toll Collection)

o NFS (National Financial Switch)

o RuPay and UPI (Unified Payment Interface)

ATMANIRBHAR WOMEN SCHEME STARTED BY BANK OF BARODA.

o It is the third-largest public sector bank in India.

o Chairman: Hasmukh Adhia

o Tagline: India’s International Bank

 NEFT facility is already available 24x7 from December 2019.

 Real-time gross settlement (RTGS):

o It was started on 26 March 2004.

o It is a gross settlement based electronic payment system.

o In RTGS, transactions are completed individually or on a one-to-one basis.

o As per RBI, the minimum limit for transactions in RTGS is Rs 2 lakh.

o As per RBI, there is no upper or maximum limit for transactions in RTGS.

o At present, it handles 6.35 lakh transactions on a daily basis.

RUPAY SELECT DEBIT CARD LAUNCHED BY CENTRAL BANK OF INDIA.

‘INFINITE INDIA’ PLATFORM LAUNCHED BY ICICI BANK.

 ICICI bank is recognized as Authorised Dealer Category 1. It is allowed to authorize setting up of

GOVERNMENT PROVIDES ₹5,500-CRORE SUPPORT TO PUNJAB & SIND BANK.

 Punjab & Sind Bank:

DIGITAL LENDING PLATFORM LAUNCHED BY BANK OF BARODA (BOB).

o It is the third-largest public sector bank in India.

o Chairman: Hasmukh Adhia

o Vijaya Bank and Dena Bank were merged in Bank of Baroda.

o Tagline: India’s International Bank

 AU Small Finance Bank (SFB):

o It was founded in 1996 as AU Financiers (India) Ltd.

o In 2017, AU Financiers (India) Ltd became a small finance bank.

o Its chairman is Mannil Venugopalan.

NBCFDC AND NSFDC SIGNED MOAS WITH CENTRAL BANK OF INDIA.

A NEW DIGITAL PAYMENT APP, ‘DAKPAY’, LAUNCHED BY DEPARTMENT OF POSTS (DOP)

o It is the third-largest public sector bank in India.

o It was founded in 1908.

o Chairman: Hasmukh Adhia

REGULATORY BODIES/FINANCIAL INSTITUTIONS

NABARD’S KARNATAKA REGIONAL OFFICE SIGNS MOU WITH LHO-BENGALURU BRANCH OF

o Chairman: Shri Govinda Rajulu Chinthala

o Headquarters: Mumbai, Maharashtra

RBI FINES HDFC BANK WITH ₹10 LAKH.

DRAFT CIRCULAR ON DECLARATION OF DIVIDEND BY NBFCS RELEASED BY RBI.

LICENCE OF THE KARAD JANATA SAHAKARI BANK LTD CANCELLED.

SEBI FORMS CORPORATION FINANCE INVESTIGATION DEPARTMENT (CFID).

 Securities and Exchange Board of India (SEBI):

 Complaints should be about anti-competitive practices or abuse of a dominant position at

IFSCA REMOVES CERTAIN RESTRICTIONS ON ALTERNATIVE INVESTMENT FUNDS (AIFS)

o It is established or incorporated in India.

 Category I AIFs: They make an investment in start-ups, small and medium-sized

 Category III AIFs: They include hedge funds.

RBI TO ESTABLISH AUTOMATED BANKNOTE PROCESSING CENTRE (ABPC) IN JAIPUR.

A SCHEME FOR APPROVAL OF HYGIENE RATING AUDIT AGENCIES LAUNCHED BY QUALITY

 Quality Council of India (QCI):

o It is headquartered in New Delhi. Its Chairman is Adil Zainulbhai.

HEALTH INSURANCE INDUSTRY RELATED ORDERS PASSED BY IRDAI IN 2020.

GOVERNMENT MAY START THE PROCESS OF SETTING UP OF A BANK INVESTMENT

 PJ Nayak Committee is also known as Committee to Review Governance of Boards of Banks in

INDIAN ECONOMY/FINANCIAL MARKET