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BUSINESS AND ECONOMY - September 2024

Sep 2024

Sep 01, 2024

RBI Imposes Penalties on UCO Bank and Cent Bank Home Finance Ltd

  • The Reserve Bank of India (RBI) levied penalties on two financial entities for regulatory non-compliance. UCO Bank was fined Rs. 2.68 crore for violating provisions related to current account openings, deposit interest rates, and fraud classification. Meanwhile, Cent Bank Home Finance Ltd faced a Rs. 2.1 lakh penalty for failing to adhere to Know Your Customer (KYC) regulations. The RBI clarified that these penalties were imposed for regulatory compliance issues and do not impact the validity of transactions or agreements between the banks and their customers.

NHPC, SECI, Railtel, and SJVN Gain Navratna Status

  • Finance Minister Nirmala Sitharaman granted 'Navratna' status to four Central Public Sector Enterprises (CPSEs): NHPC, Solar Energy Corporation of India (SECI), Railtel Corporation of India (RCIL), and Satluj Jal Vidyut Nigam (SJVN). This brings the total number of Navratna CPSEs in India to 25. The Navratna status provides these entities with increased financial and operational autonomy.
  • The Navratna status is awarded based on criteria including excellent performance ratings, a composite score of 60 or above in selected performance indicators, and the CPSEs' status as Miniratna I and Schedule 'A'. The scheme, introduced in 1997, aims to recognize and support CPSEs with significant comparative advantages, enabling them to pursue global expansion and increased autonomy in various operational areas.

Singapore Airlines Receives Approval for Vistara-Air India Merger

  • In a boost to the Air India-Vistara merger, Singapore Airlines (SIA) received approval from the Government of India for foreign direct investment (FDI) in a deal with the Tatas, the airline said in an exchange filing.
  • Singapore's flagship carrier, which has a 49 per cent stake in Vistara, had announced the plan to merge the Indian airline and Tata-owned Air India in November 2022. Tatas own 51 per cent in Vistara.
  • The FDI approval takes the Tata-SIA Joint Venture one step closer to their aim of creating a dominant full-service airline in the domestic and international markets.
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