Monthly Current Affairs- August 2020
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Monthly Current Affairs- August 2020 Monthly Current Affairs- August 2020 S No Table of Contents Page No 1. Banking & Finance 02 2. Business and Economy 18 3. Government Schemes 27 4. National 29 5. State 62 6. International 91 7. Summits and Conferences 110 Page 1 of 205 Subscribe Our Yearly Mock Test Pack to Get 1000+ Mock Test for Bank+SSC+Railway Exams If there are any suggestions/ errors in our PDFs Feel Free to contact us via this email: [email protected] Monthly Current Affairs- August 2020 8. Ranks and Indices 117 9. Agreements and MoU signed 126 10. Recent Committees 150 11. Appointments 153 12. Sports 157 13. Defence 172 14. Awards 178 15. Science and Technology 181 16. Web portals & Apps 189 17. Books and Authors 196 18. Important Days and Themes 200 19. Obituaries 203 Banking & Finance RBI in News Governor: Shaktikanta Das Headquarters: Mumbai Founder: British Raj Subsidiaries: Deposit Insurance and Credit Guarantee Corporation, Bharatiya Reserve Bank Note Mudran RBI Monetary Policy The six-member Monetary Policy Committee (MPC) of Reserve Bank of India held its meeting in New Delhi. The committee was headed by RBI Governor Shakti kanta Das. The repo rate was kept the same at 4% Page 2 of 205 Subscribe Our Yearly Mock Test Pack to Get 1000+ Mock Test for Bank+SSC+Railway Exams If there are any suggestions/ errors in our PDFs Feel Free to contact us via this email: [email protected] Monthly Current Affairs- August 2020 The reverse repo rate was kept at 3.35% The members decided to provide Rs 10,000 crore additional liquidity facility to National Housing Bank (NHB), National Bank for Agriculture and Rural Development (NABARD). In order to mitigate COVID-19 impact on households, loans against gold have been enhanced to 90% of the value as against the current 75% In June, the retail inflation was 6.09%. This includes food items such as meat, cereals, fish and pulses. RBI launches pilot scheme for Offline Retail Payments Using Cards and Mobile Devices The Reserve Bank of India has launched pilot scheme for small value payments in offline mode. The pilot scheme shall be undertaken till March 31, 2021 only. Under the scheme, authorised Payment System Operators (PSOs) – banks and non-banks – will be able to provide offline payment solutions using cards, wallets or mobile devices for remote or proximity payments. This has been done to do away with the impediments caused due to lack of internet connectivity or low speed of internet, especially in remote areas. Some major points related to this scheme are: Maximum limit of a payment transaction will be Rs 200. (For a single transaction.) The total limit for offline transactions on an instrument shall be Rs 2,000, at any point of time. Resetting of the limit shall be allowed in online mode with AFA. Payments could be made using cards, wallets or mobile devices or through any other channel. Payments may be made in remote or proximity mode. Reserve Bank of India to set up Innovation Hub for financial sector in India The Reserve Bank of India (RBI) announced that it is planning to set up an Innovation Hub in order to promote innovation across the finance sector in India by leveraging on technology. The Innovation Hub will be promoting, supporting, and hand-hold cross thinking spanning national boundaries and regulatory permits. It will act as a centre for ideation and incubation of new capabilities which can be leveraged to create viable and innovative financial products or services to help achieve the broader objectives of efficient banking services, deepening financial inclusion, strengthening consumer protection, business continuity in times of emergency. RBI permits banks to invest in debt instruments through mutual funds RBI has permitted banks to invest in debt instruments through mutual funds or exchange traded funds without allocating additional charges. As per RBI’s extant Basel III guidelines, if a bank holds a debt instrument directly, it would have to allocate lower capital as compared to holding the same debt instrument through a mutual fund- or exchange traded fund. It has been decided to harmonise the differential treatment existing currently. This will result in substantial capital savings for banks and is expected to give a boost to the corporate bond market. Page 3 of 205 Subscribe Our Yearly Mock Test Pack to Get 1000+ Mock Test for Bank+SSC+Railway Exams If there are any suggestions/ errors in our PDFs Feel Free to contact us via this email: [email protected] Monthly Current Affairs- August 2020 RBI bars banks from opening current accounts for customers having availed cash credit or overdraft facilities The Reserve Bank of India has barred banks from opening current accounts for customers who have availed cash credit or overdraft facilities, with a view to improve credit discipline. In a notification, the Central Bank said, rather than opening a new current account, all transactions should be routed through a Cash Credit or OverDraft account. RBI announces ‘positive pay’ feature to enhance safety of cheque payments The Reserve Bank of India (RBI) said it has decided to introduce a mechanism of ‘Positive Pay’ for all cheques of value Rs 50,000 and above. This will cover approximately 20 percent and 80 percent of total cheques by volume and value, respectively. Under the ‘positive pay’ system, a customer who issues the cheque clicks a picture of the cheque before handing it over to the beneficiary and uploads the same on the bank’s mobile application. RBI approves Dividend of Rs 57,000 crore to Government The Central Board of the Reserve Bank of India has approved the transfer of Rs 57128 crores as the dividend to the Central government for the accounting year 2019-20 while maintaining the contingency risk buffer at 5.5 per cent. The meeting, chaired by the RBI Governor Shaktikanta Das, focused on reviewing the current economic situation. The central bank also discussed setting up an Innovation Hub. The annual report of the bank was also approved during the meeting. RBI tightens norms for core investment companies The Reserve Bank of India (RBI) tightened the norms for core investment companies (CICs), based on the recommendations received from the working group which was formed to review the framework. The new guidelines were based on the recommendations of the Working Group to Review Regulatory and Supervisory Framework for CICs, headed by Tapan Ray, former secretary of the corporate affairs ministry. The report was published by RBI on 6 November 2019. According to the revised guidelines, the GRMC will have to analyze material risks to which the group, its businesses and subsidiaries are exposed. CICs with assets of over Rs 5,000 crore will have to appoint a chief risk officer (CRO). While computing Adjusted Net Worth (ANW), the amount representing any direct or indirect capital contribution made by one CIC in another CIC, which exceeds 10% of owned funds of the investing CIC, shall be deducted. CIC in the group, or the CIC with the largest asset size, will have to form a group risk management committee (GRMC), comprising of at least five members, with two independent directors. RBI releases framework for authorisation of pan-India Umbrella Entity for Retail Payments Reserve Bank of India has released the ‘framework for authorization of pan-India Umbrella Entity for Retail Payments’ in India. Page 4 of 205 Subscribe Our Yearly Mock Test Pack to Get 1000+ Mock Test for Bank+SSC+Railway Exams If there are any suggestions/ errors in our PDFs Feel Free to contact us via this email: [email protected] Monthly Current Affairs- August 2020 This means that RBI has allowed companies/entities to apply to RBI to set-up pan-India umbrella entity/entities focussing on retail payment systems in India. After receiving approval from RBI, the entity may start functioning as an Umbrella Entity for Retail Payments in India just like NPCI. Here are some major points about this framework: Paid-up capital: The umbrella entity shall have a minimum paid-up capital of Rs 500 crore. Promoters Share: No single Promoter / Promoter Group shall have more than 40% investment in the capital of the umbrella entity. The Promoters / Promoter Groups shall upfront demonstrate the capital contribution of not less than 10% i.e., ₹50 crores at the time of making an application for setting up of the umbrella entity. The balance capital shall be secured at the time of commencement of business/operations. The Promoter / Promoter Group shareholding can be diluted to a minimum of 25% after 5 years of the commencement of the business of the umbrella entity. The umbrella entity shall commence business/operations within a time of 6 months, extendable to a maximum of one year, if required, from the date of ‘in-principle approval’. A minimum net-worth of Rs 300 crore shall be maintained at all times. The entity shall be a Company incorporated in India under the Companies Act, 2013. The umbrella entity shall be a Company authorized by Reserve Bank of India (RBI) under Section 4 of the PSS Act, 2007. RBI Releases NSFE 2020-25, Suggests Action Plan to Promote Financial Education The ‘National Strategy for Financial Education 2020-2025’ (NSFE), released by the RBI, has suggested a multi-stakeholder-led approach for creating a financially aware and empowered India. The Reserve Bank of India (RBI) came out with a ‘5-Core Actions’ approach for promoting financial education, which among other things include development of relevant content for school children and adults, community participation and collaboration among various stakeholders. The five Cs, outlined by the strategy paper, are: Content, Capacity, Community, Communication and Collaboration.