General Awareness

BUSINESS AND ECONOMY - June 2020

Jun 2020

Sep 18, 2020

OECD Raises Prospects for Global Economy, Scales Them Down for India

The Organization for Economic Co-operation and Development (OECD) said it expects India's economy to shrink 10.2 per cent in the current financial year (FY21) against its earlier estimate of 3.7-7.3 per cent, owing to extended lockdowns to contain the spread of the Covid-19 pandemic.
However, the Paris-based institution expects the world economy to fare better, with a 4.5 per cent fall in 2020, against its earlier prediction of 6 per cent.
In its latest economic outlook, the OECD attributed its decision on India to "the prolonged spread of the virus, high levels of poverty and informality, and stricter confinement measures for an extended period".

ICICI Home Finance Launches Home Loan Scheme

The loan scheme is targeted at the informal segment of the population who wish to purchase their own home, but may not have all documents that a formal financial institution would require.
ICICI Home Finance has launched a new loan scheme 'Apna Ghar Dreamz', with credit amount in the range of Rs 2 lakh to 50 lakh, for skilled workers employed in the informal sector in Delhi.
The scheme is meant for skilled workers such as carpenters, plumbers, electricians, tailors, painters, welders, auto mechanics, manufacturing machine operators, computer mechanics, RO repair technicians, small and medium business owners and grocery store owners in the city.
Customers seeking to avail the special 20-year tenure loan would need to provide documents such as PAN and Aadhaar details, and bank statement of past six months. The customers should have a minimum account balance of Rs 1,500 for loan up to 5 lakh and Rs 3,000 for loan above 5 lakh.

DBS Bank India unveils online loan platform for SMEs

DBS Bank India launched an online platform for making loans available to small and mid size businesses in a hassle-free manner, with credit facility up to Rs. 20 crore.
Driven by its constant focus on building seamless, intuitive and hassle-free banking solutions for customers, DBS Bank India has unveiled its online credit solutions platform - DBS Digital Business Loans for SMEs.
This segment-flagship platform from DBS improves the ease of accessing business credit for the entire spectrum of micro, small and medium-sized enterprises, offering credit up to Rs. 20 crore.

WhatsApp Partners With Common Services Center to Deliver Digital Literacy Services

The widely popular messaging platform WhatsApp announced that it has partnered with Common Services Centers (CSC).
With this partnership, the Facebook-owned platform launched a chatbot that will enable citizens to receive digital literacy services and resources.
It also aims to "bridge the digital divide and spur rural entrepreneurship".
The Digital India Programme of the Government focuses on digital inclusion and empowerment. PMGDISHA, an initiative of the Government to provide digital literacy to 6 crore rural citizens, is being implemented by CSCs across the country.
Due to the Coronavirus pandemic, training has been suspended across the country. The ability to deliver digital literacy modules through WhatsApp will help us in extension of the programme to those still unreached in rural as well as urban areas. The partnership will redefine the delivery model of education and skill related content, especially for rural India.

Mexico Issues 750-Million Euro 'Green Bond' Linked To SDGs

Mexico has issued a 750-million-euro ($885 million) "green bond," joining a dozen or so other countries with such sovereign debt placements.
Mexico's Treasury Department said the bond is the first of its type to be linked to U.N. Sustainable Development Goals, or SDGs, that set out measurable goals to fight poverty, inequality and protect the environment.
The seven-year bond will pay an interest rate of 1.6% with a 1.3% coupon.
The department said the bond drew interest from 267 institutional investors worldwide. Green bond issues have gained traction in 2019 and 2020 after the first was issued almost four years ago. Mexico's bond will be used to fund programs to meet the SDGs.

Sep 17, 2020

RBI Issues Draft on Rupee Interest Rate (IR) Derivatives

RBI issues draft on rupee Interest Rate (IR) derivatives. The Reserve Bank of India (RBI) proposed allowing foreign portfolio investors (FPIs) to undertake exchange-traded rupee interest rate derivatives transactions subject to an overall ceiling of Rs 5,000 crore.
These RBI Proposed Interest Rate Derivatives (Reserve Bank) Directions, 2020 are aimed at encouraging higher non-resident participation, enhance the role of domestic market makers in the offshore market, improve transparency, and achieve better regulatory oversight, according to the RBI.
Interest Rate Derivatives (IRD) are contracts whose value is derived from one or more interest rates, prices of interest rate instruments, or interest rate indices.

BHEL Ties Up With SwissRapide AG to Bring Maglev Trains to India

State-run engineering firm BHEL announced its tie up with SwissRapide AG to bring Maglev trains (magnetic levitation) to India. Aimed at expanding its footprint in the urban transportation sector as part of its diversification initiatives, BHEL has entered into a Memorandum of Understanding (MoU) with SwissRapide AG for Maglev Train projects in India.
The Maglev Rail system hovers in the air instead of rolling, due to magnetic levitation, thus the vehicles have no physical contact with the guideway. This enables the system to be highly energy efficient, allows operating speeds of easily up to 500 km/h and significantly reduces the total cost of system ownership.

India Plans to Introduce Law to Ban Cryptocurrency Trading

India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market.

The federal government will encourage blockchain, the technology underlying cryptocurrencies, but is not keen on cryptocurrency trading, according to two people.

Titan Teams Up With SBI

Titan Company Limited has now partnered with the State Bank of India (SBI) to launch Titan Pay, a range of new watches that allow the users to make contactless payment.
The payment will be powered by YONO SBI and according to the watch company, it will be the first time in India that such a facility is being extended.

Lok Sabha Passes Bill to Bring Co-operative Banks Under RBI Supervision

Protecting depositors' interests, the Lok Sabha passed the Banking Regulation (Amendment) Bill, 2020, to bring co-operative banks under the supervision of the Reserve Bank of India (RBI).
Finance minister Nirmala Sitharaman assured the House that the legislation empowers the central bank to regulate only the banking activities of co-operatives and it is not applicable to a primary agricultural credit society or a co-operative society providing finance for agricultural development.

Sep 16, 2020

SBI General Insurance, YES Bank Ink Corporate Agency Agreement

SBI General Insurance and YES Bank have signed a corporate agency agreement for the distribution of the general insurer's retail products to customers of the private sector lender.
SBI General has been doing meaningful associations with banks, payments apps, e-commerce players, brokers to strengthen its distribution footprint across the country.
The partnership will be committed to offering customers a broad range of non-life insurance products and services and deploying technology across the customer value chain to facilitate superior experiences for them.

RBI Mandates Automated Recognition of NPAs, Provisioning by June 2021

The Reserve Bank of India (RBI) mandated the automation of bad-loan recognition by banks by June 30, 2021. The processes of provisioning calculation and income recognition will also have to be automated and banks will be required to upgrade their systems accordingly.
In its circular, the central bank said banks had earlier been advised to have appropriate information technology (IT) systems in place for identification of non-performing assets (NPA) and generation of related data/returns, both for regulatory reporting and banks' own management information system (MIS) requirements.

Rajasthan Government Signs Pact with Sidbi to Develop MSME Ecosystem

Rajasthan's Department of Industries and Sidbi will work together to provide financial, technical, marketing and export support to MSMEs in the state, Industries Minister Parsadi Lal Meena.
The Small Industries Development Bank of India (Sidbi) has signed a memorandum of understanding (MoU) with the Rajasthan government to develop the MSME ecosystem in the state.
Meena said the MSME Act was amended to promote industries and exempt such businesses from all kinds of permissions and inspections for three years.
Now, the establishment of large industries will also become easy with the coming of a single window one-stop shop, he said.

Sep 15, 2020

IFSCA and India Gold Policy Centre Sign MoU

The International Financial Services Centre Authority (IFSCA) and the India Gold Policy Centre (IGPC) at the Indian Institute of Management, Ahmedabad (IIM-A), signed a Memorandum of Understanding (MoU) at GIFT City in Gandhinagar, to provide consultation for the establishment of the International Bullion Exchange (IBE) in India.
IGPC-IIMA, an independent think tank with in-house expertise in the area of gold markets, will make for a knowledge partner for IFSCA to roll out the IBE successfully.
The IGPC-IIMA is expected to take a top-down approach by setting a broader vision, developing success strategies and creating operating guidelines for the seamless functioning of the IBE.
At the Union Budget 2020, Finance Minister Nirmala Sitharaman had announced that India will soon have an IBE at the IFSC in GIFT City in Gandhinagar. The IFSC Authority was established on April 27 this year by the Government of India as the unified regulator.

PM Modi Inaugurates Petroleum Projects

In a pat to Bihar Chief Minister Nitish Kumar, Prime Minister Narendra Modi said that in the last 15 years, Bihar has shown that development happens with the right government, decisions and policies.
PM Modi launched three petroleum sector projects in Bihar worth more than Rs. 900 crore and said that this government was working for the growth of all sectors in Bihar.
The Prime Minister praised the youth of Bihar and termed the state a 'powerhouse' of the country's talent.
The projects unveiled include the Durgapur-Banka section of the Paradip-Haldia-Durgapur pipeline augmentation project and two LPG bottling plants — one at Banka of the IOCL and another of the HPCL at Harsidhi in East Champaran district.
According to Modi the fertiliser factory of Barauni, which was closed in the past, would also commence working soon after the construction of this gas pipeline.

Oracle Confirms Deal with Bytedance, Beats Microsoft in Bid for TikTok US Operations

Oracle has beaten Microsoft in the race to acquire the popular video-sharing app TikTok in the US. Sathya Nadella-led Microsoft's bid to acquire TikTok has been rejected. US President Donald Trump set a September 20 deadline for the sale of the US operations of TikTok. Trump said that the app would be banned if the company is not sold to an American company by 20 September. Microsoft will no longer buy the Chinese short video app TikTok. US company Microsoft has said that TikTok's parent company Byte Dance has rejected Microsoft's bid.
Under the proposed deal, Oracle will be the technology partner of ByteDance and will manage TikTok's US user data. According to The New York Times, it is not yet clear whether the technology partnership will take a major stake in Oracle's TikTok. Earlier it was believed that Microsoft would do this deal as it is one of the strongest technology companies in America. Microsoft said in a statement that they believe that their proposal was good for American users of TikTok keeping in mind the security of the country.

US Bans Import of Chinese Goods Produced Using Forced Labour

In another crackdown on China, the United States has banned cotton, hair products, computer components, and some textiles from China's Xinjiang province which are made using forced labour.
By taking this action, DHS is combating illegal and inhumane forced labour, a type of modern slavery, used to make goods that the Chinese government then tries to import into the United States. When China attempts to import these goods into our supply chains, it also disadvantages American workers and businesses," said Acting Department of Homeland Security (DHS) Deputy Secretary Ken Cuccinelli.
President Trump and this Department have, and always will, put American workers and businesses first and protect American citizens from participating in these egregious human rights violations.
The Trump Administration will not stand idly by and allow foreign companies to subject vulnerable workers to forced labour while harming American businesses that respect human rights and the rule of law.

Sep 14, 2020

SoftBank Sells Chip Designer Arm to Nvidia

SoftBank Group Corp has agreed to sell chip designer Arm to Nvidia Corp for as much as $40 billion in a deal set to reshape the semiconductor landscape.
The deal puts a vital supplier to Apple Inc and others across the industry under the control of a single player and will face potential pushback from regulators and Nvidia rivals.
Nvidia will pay SoftBank $21.5 billion in shares and $12 billion in cash, including $2 billion on signing. The deal will see SoftBank and the $100 billion Vision Fund, which has a 25% stake in Arm, take a stake in Nvidia of between 6.7% and 8.1%.
SoftBank could also be paid an additional $5 billion in cash or shares depending on the chip designer's business performance.
The deal is subject to regulatory approvals including in Britain, the United States and China and is expected to close in March 2022.

HCL Technologies Partners with NVIDIA Partner Network

To pursue expanded opportunities in AI space HCL Technologies has joined NVIDIA Partner Network (NPN), the US-based technology company's partner program, with plans to pursue expanded opportunities in the Artificial Intelligence (AI) space.
HCL also announced the launch of NEXT.ai, HCL's AI Lab, focused on upskilling engineers and architects utilizing AI solutions across hardware and software technology stacks. This will enhance their capabilities to build AI-led solutions for multiple HCL clients across industry verticals.
The HCL NEXT.ai lab focuses on emerging technologies to develop industry-specific AI solutions for customers pursuing digital transformation. Customers and partners can co-create proofs of concept and full-fledged, scalable and production-ready solutions in the lab. NEXT.ai comes equipped with the latest technology products and infrastructure from its partner ecosystem. The areas of focus include computer vision, predictive modeling, failure analysis, optimization, product intelligence, data engineering, data management, and more.

First Private Seabass Hatchery to be Set up in Karnataka

Even though 23 years have passed since the Chennai-based Central Institute of Brackishwater Aquaculture (CIBA) succeeded in the captive-breeding of Asian seabass (Koduva), a fish with high commercial value, hatcheries have remained only with government research institutions. The private sector has been more interested in shrimp farming.
Now, for the first time in the country, CIBA has signed a memorandum of understanding (MoU) to set up a seabass hatchery in the private sector, on start-up mode, in Karnataka.
The MoU was signed with Canares Aquaculture, owned by young entrepreneurs Karthik Gowda V.S., Kaushik Alike and Sachin V. Savan, from Kumta in Karnataka, to ensure the transfer of CIBA's technology.
They were students at the Mangalore Fisheries College, and during a visit to CIBA's seabass hatchery at the Muttukadu Experimental Station, their interest was kindled, and the idea of setting up their own aquaculture start up was born.
When they approached CIBA authorities to set up a hatchery, the institute provided them technical guidance and field training in seabass nursery rearing.
The institute also followed up, enabling the start-up to obtain funding support to start the firm.

RBI Lays Down Guidelines for Banks to Appoint Chief Compliance Officer

The Reserve Bank of India (RBI) has prescribed guidelines for 'Compliance Functions in Banks and Role of Chief Compliance Officer (CCO)' to bring uniformity in the approach followed by banks and also to align the supervisory expectations on CCOs with best practices.
These guidelines cover policy (which should be reviewed at least once a year), tenor and appointment of CCO, and reporting requirements and duties and responsibilities of the compliance function, among others.
The RBI observed that banks currently follow diverse practices vis-a-vis compliance functions in banks and role of CCO.
As per the guidelines, a bank shall lay down a board-approved compliance policy, clearly spelling out its compliance philosophy, expectations on compliance culture covering 'tone at the top' (ethical atmosphere created in the bank by its leadership) and accountability.
The policy will also encompass incentive structure and effective communication and challenges thereof, structure and role of the compliance function, role of CCO, processes for identifying, assessing, monitoring, managing, and reporting on compliance risk throughout the bank.
According to the guidelines, the bank shall also develop and maintain a quality assurance and improvement programme covering all aspects of the compliance function.

CCI Gives Nod to Carlyle Group's 20 per cent Stake Acquisition In Piramal Pharma

The Competition Commission of India (CCI) approved the proposed combination involving the acquisition of 20 per cent of the issued and paid-up equity share capital of Piramal Pharma Limited (Pharma Co) by CA Clover Intermediate II Investments (Curie).
The proposed combination is related to the transfer of global pharmaceutical business (transferred business) by Piramal Enterprises Limited (PEL) to a wholly-owned subsidiary of PEL, that is Pharma Co, followed by the acquisition of 20 per cent of the issued and paid-up equity share capital of Pharma Co by Curie (proposed combination).
Curie is a special purpose acquisition vehicle, owned and controlled by investment funds advised by the affiliates of the Carlyle Group Inc.
The Carlyle Group is a global alternative asset manager, which manages funds that invest globally across four investment disciplines: Corporate Private Equity (buyout and growth capital), Real Assets (real estate, infrastructure and energy and renewable resources), Global Credit (leveraged loans and structured credit, opportunistic credit, energy credit, private credit and distressed credit), and Solutions (private equity fund of funds program and related co-investment and secondary activities).
Pharma Co is a wholly-owned entity of PEL that will hold PEL's transferred business as part of the proposed combination, and acquire the pharmaceutical business of PEL comprising the Contract Development and Manufacturing Organisation, Complex Hospital Generics, and Consumer Healthcare Division segments, as well as equity interest in certain PEL entities.

Uganda and Tanzania Sign Oil Pipeline Deal

Tanzania and Uganda have signed an agreement allowing for the construction of a 1,445 km (898 miles) crude oil pipeline.
The $3.5bn (£2.7m) project will connect Uganda's oil fields to Tanzania's port of Tanga.
The signing ceremony was attended by the Presidents of both countries.
Oil reserves were found in Uganda in 2006 but production has been delayed partly by a lack of infrastructure including an export pipeline.
A start date for construction has not yet been announced for what is set to become East Africa's first major oil pipeline.
But there are warnings the project could come at a huge cost to some Ugandan communities.

Liberty General Partners SpiceJet to Offer Travel Insurance

Mumbai-based Liberty General Insurance with has partnered with SpiceJet to offer travel insurance to consumers who book tickets through the airline's website and mobile site.
Applicable across SpiceJet's domestic network, Liberty's new zero-cancellation service offered under the Liberty Secure Travel Policy allows passengers to seamlessly cancel tickets and claim full reimbursement of the cancellation charges in case they are unable to fly due to any unavoidable circumstances, adding that customers can avail the offering by paying an additional nominal fee and adding the insurance cover while booking the flight ticket.
Passengers can claim a full cancellation-fee reimbursement for a flight-booking made in advance not beyond 90 days, the sum insured in the event of a ticket cancellation is Rs. 5,000.

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