Economy & Banking Current Affairs
Capital Area Bank got Small Finance Bank Licence from RBI
- Jalandhar-based Capital Local Area Bank (CLAB) is set to become India’s first Small area Finance Bank (SFB) by flagging-off its operations on April 13, 2016 as CLAB is the first among the 10 applicants to get final licence from the Reserve Bank of India (RBI).
- The small bank will launch operations under a new name i.e., Capital Small Finance Bank Limited and its launch will coincide with the auspicious festival of Baisakhi (the beginning of rabi harvest that gives a major boost to rural spending) in Punjab.
- The bank had been into lending to the small: ticket borrowers for the past 15 years. Earlier, operation of the bank was restricted to only 5 districts of Punjab. After getting RBI’s licence, the geographical barriers would be removed.
SEBI Hiked FPI Investment Limit for Government Debt
- The Securities and Exchange Board of India (SEBI) raised the Foreign Portfolio Investors (FPIs) in Central government securities shall be enhanced to Rs 140000 crore on April 4, 2016 and Rs 144000 crore on July 5, 2016 respectively; from the existing limit of Rs 135400 crore.
- In addition, limit for investment by FPIs in state development loans will be enhanced to Rs 10500 crore on April 4 and 1 14000 crore on July 5, respectively. Presently, the existing limit is Rs 7000 crore.
- The limit for long term FPIs (Sovereign Wealth Funds, Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in Central government securities will be enhanced to Rs 50000 crore and Rs 56000 crore on April 4 and July 5, respectively. Currently, the existing limit is Rs 44100 crore for long term FPIs.
India Ranked Sixth in 2015 top-10 Manufacturers List
- As on April 2, 2016, an United Nations Industrial Development Organisation (UNIDO) report ranked India sixth among the world’s 10 largest manufacturing countries, up by three positions. India previously held the 9th rank.
- The Yearbook found that in India, the Manufacturing Value Added (MVA) grew by 7.6% in 2015 compared to the previous year 2014. The quarterly Index Of Industrial Production (IIP) shows 1% growth of manufacturing output in the fourth quarter of 2015 compared to the same period of the previous year.
- The report also said the global growth rate of manufacturing production has slowed to 2.8% in 2015. China tops the list of 10-top industrial producers followed by the USA, Japan, Germany and Korea. Indonesia was placed at the bottom of the list.
Germany’s KfW to give € 500 Million Loan to Nagpur Metro
- German government’s Development Bank KfW will provide a loan assistance of € 500 million (about Rs 3750 crore) for the modern and sustainable metro system for Nagpur city being executed by Nagpur Metro Rail Corporation Limited (NMRCL).
- An agreement, in this regard, was signed on April 1, 2016 in New Delhi by the Department of Economic Affairs and KfW. S. Selvaraj, Joint Secretary, Department of Economic Affairs and Roland Siller, Director General of KfW.
- The loan period is 20 years with a moratorium of five years and disbursal will be based on the progress of the project over three years. Costing
- 8680 crore (€ 1240 million), Nagpur Metro is the first metro to be financed under the Indo German partnership for clean, socially inclusive and climate friendly mobility for people in cities.
Government Extended Safeguard Duty on Some Steel Imports TUI March, 2018
- The Union government extended the safeguard duty on March 30, 2016 on some steel imports by two years, till March, 2018, to protect domestic industry from onslaught of cheap supplies from China amid a global glut.
- The government had first imposed the safeguard duty in September, 2015. In the month of February, 2016 a floor price on imports was set to deter countries like China from undercutting domestic industry, the first such move in more than 15 years.
- The safeguard tax will not be imposed on steel products imported at or above the floor price. The duty will however be reduced to 10% in stages over the next two years.
RBI Cancelled Registration of 22 NBFCs
- The Reserve Bank of India (RBI) has cancelled registration of 22 Non-Banking Financial Companies (NBFCs) including that of Amazan Capital and Mascot Commerce on March 30, 2016 in exercise of the powers conferred on it under Section-45-IA (6) of the Reserve Bank of India Act, 1934.