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BUSINESS AND ECONOMY - January 2022

Jan 2022

Jan 02, 2022

Sri Lanka, Indian Oil Corp Unit to Sign Oil Tank Restoration Deal

  • Sri Lanka will sign a deal with Lanka Indian Oil Corporation (LIOC) to restore 75 oil tanks as the country moves to secure a $500 million fuel credit line from India.
  • The island nation is facing dwindling foreign exchange reserves and has nearly $4.5 billion worth of debt repayments in 2022, prompting it to look at innovative ways to bring in foreign exchange.
  • The facility, with 99 storage tanks, is located next to a harbour off Sri Lanka's east coast and though India and Sri Lanka agreed to jointly develop it in 1987, negotiations dragged on for decades.
  • Under the proposed agreement, LIOC, a subsidiary of Indian Oil Corporation (IOC), will be given 14 tanks on a 50-year lease and a 49% stake in 61 other tanks that will be held jointly with State-run Ceylon Petroleum Corporation (CPC).

West End Housing Applies for small Finance Bank Licence with RBI

  • The Reserve Bank said that West End Housing Finance Ltd has applied for 'on tap' licence for setting up a small finance bank.
  • West End Housing Finance is headquartered at Mumbai.

Asheesh Pandey Takes Charge of Bank of Maharashtra's Executive Director

  • Asheesh Pandey assumed the charge of executive director (ED) of Pune-based Bank of Maharashtra (BoM).
  • Pandey replaced Hemant Kumar Tamta who demitted office after completion of his term.
  • Prior to joining BoM, Pandey was chief general manager and chief operations officer (COO) at Union Bank of India (UBI).
  • Pandey started banking career at Corporation Bank at its Industrial Finance Branch, and Investment and International Banking division in Mumbai.

Jan 01, 2022

Domestic Systemically Important Insurers (D-SIIs) for 2021-22

  • Insurance regulator IRDAI identified the state-owned LIC, GIC and New India Assurance Co. Ltd as Domestic Systemically Important Insurers (D-SIIs) for 2021-22.
  • D-SIIs are insurers of such size, market importance, and domestically & globally inter-connected, whose failure or distress will result into significant dislocation in domestic financial system.
  • D-SIIs are perceived as insurers which are 'too big or too important to fail' (TBTF).
  • This perception and perceived expectation of government support may reduce market discipline, amplify risk-taking, create competitive distortions, as well as increase the possibility of distress in future.
  • Thus, continued functioning of D-SIIs is necessary for uninterrupted availability of insurance services for national economy.
  • IRDAI identifies D-SIIs on an annual basis and disclose such insurers names for public information.

RBI Extends Deadline for Periodic KYC Update

  • The Reserve Bank of India (RBI) extended the last date for KYC updation for bank accounts by three months to March 31, 2022.
  • The central bank extended the deadline in view of the "prevalent uncertainty due to new variant of Covid-19".
  • The central bank had relaxed the rules first in May last year due to the pandemic and had said that banking services should not be restricted just because the KYC documents have not been updated by the customer.
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