InfoDigger: A source of simple and sequential news

blog

Combined Index of Eight Core Industries increases by 8.9 per cent

 

The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade is releasing the Index of Eight Core Industries (ICI) for the Month of June 2021.

ICI measures combined and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. 

The combined Index of Eight Core Industries stood at 126.6 in June 2021, which increased by 8.9 per cent (provisional) as compared to the Index of June 2020. The production of Coal, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity industries increased in June 2021 over the corresponding period of last year.

The final growth rate of the Index of Eight Core Industries for March 2021 is revised to 12.6 per cent from its provisional level 6.8 per cent. The growth rate of ICI during April-June 2021-22 was 25.3 per cent (P) as compared to the corresponding period of last Financial Year.

The summary of the Index of Eight Core Industries is given below:

Coal – Coal production (weight: 10.33 per cent) increased by 7.4 per cent in June 2021 over June 2020. Its cumulative index increased by 8.0 per cent from April to June 2021-22 over the corresponding period of the previous year.

Crude Oil – Crude Oil production (weight: 8.98 per cent) declined by 1.8 per cent in June 2021 over June 2020. Its cumulative index declined by 3.4 per cent during April to June 2021-22 over the corresponding period of the previous year.

Natural Gas - Natural Gas production (weight: 6.88 per cent) increased by 20.6 per cent in June 2021 over June 2020. Its cumulative index increased by 21.8 per cent from April to June 2021-22 over the corresponding period of the previous year.

Petroleum Refinery Products – Petroleum Refinery production (weight: 28.04 per cent) increased by 2.4 per cent in June 2021 over June 2020. Its cumulative index increased by 15.4 per cent from April to June 2021-22 over the corresponding period of the previous year.

Fertilizers – Fertilizers production (weight: 2.63 per cent) increased by 2.0 per cent in June 2021 over June 2020. Its cumulative index decreased by 1.7 per cent during April to June 2021-22 over the corresponding period of the previous year.

Steel – Steel production (weight: 17.92 per cent) increased by 25.0 per cent in June 2021 over June 2020. Its cumulative index increased by 86.0 per cent from April to June 2021-22 over the corresponding period of the previous year.

Cement – Cement production (weight: 5.37 per cent) increased by 4.3 per cent in June 2021 over June 2020. Its cumulative index increased by 52.9 per cent during April to June 2021-22 over the corresponding period of the previous year.

Electricity – Electricity generation (weight: 19.85 per cent) increased by 7.2 per cent in June 2021 over June 2020. Its cumulative index increased by 16.4 per cent during April to June 2021-22 over the corresponding period of the previous year.

#MinistryofCommerceandIndustry
30-July-2021
blog

RBI imposes restrictions on Mastercard

 

The Reserve Bank of India (RBI) today imposed restrictions on Mastercard Asia / Pacific Pte. Ltd. (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from 22nd July 2021.

Notwithstanding the lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data.

This order will not impact existing customers of Mastercard. Mastercard shall advise all card issuing banks and non-banks to conform to these directions. The supervisory action has been taken in the exercise of powers vested in RBI under Section 17 of the Payment and Settlement Systems Act, 2007 (PSS Act).

In terms of RBI circular on Storage of Payment System Data dated April 6, 2018, all System Providers were directed to ensure that within a period of six months the entire data (full end-to-end transaction details / information collected / carried / processed as part of the message / payment instruction) relating to payment systems operated by them is stored in a system only in India. They were also required to report compliance to RBI and submit a Board-approved System Audit Report conducted by a CERT-In empanelled auditor within the timelines specified therein.

#RBI
14-July-2021
blog

FM attends Third G20 Finance Ministers and Central Bank Governors Meeting

 

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman participated virtually in the Third G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting under the Italian Presidency. 

The two-day meeting held on July 9th and 10th, 2021 witnessed discussions on a wide range of issues including global economic risks and health challenges, policies for recovery from the COVID-19 pandemic, international taxation, sustainable finance and financial sector issues.

The G20 Finance Ministers and Central Bank Governors reaffirmed their resolve to use all available policy tools for as long as required to address the adverse consequences of COVID-19.

Ms Sitharaman appreciated the Italian G20 Presidency for identifying three catalysts of resilient economic recovery from the pandemic as being Digitalization, Climate Action and Sustainable Infrastructure and shared the Indian experience of integrating technology with inclusive service delivery during the pandemic.

The Finance Minister stated that as the co-chair of Framework Working Group of the G20, India along with UK, views digitalization as an agenda that will continue to play a key role in bolstering economic growth.

Ms Sitharaman referred to the global risks in view of the emerging COVID-19 variants and highlighted the need for international coordination and cooperation on this front. The Finance Minister joined other G20 members in welcoming the Report of the G20 High-Level Independent Panel on Financing the Global Commons for Pandemic Preparedness and Response and emphasized on the urgent need to strengthen multilateralism for global health.

Regarding the "Statement on a two-pillar solution to address the tax challenges arising from the digitalisation of the economy" released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS-IF) on July 1st, the G20 Finance Ministers called on the OECD/G20 BEPS-IF to swiftly address the remaining issues. Ms Sitharaman suggested that further work needs to be done to ensure a fairer, sustainable and inclusive tax system which results in meaningful revenue for developing countries.

#G20
11-July-2021
blog

Mandatory Leave for Bank Employees Posted in Sensitive Positions or Areas of Operation

 

The Reserve Bank of India has asked banks to put in place a 'mandatory leave' policy wherein the employees posted in sensitive positions or areas of operation shall be compulsorily sent on leave for a few days (not less than 10 working days) in a single spell every year, without giving any prior intimation to these employees, thereby maintaining an element of surprise.

It has also asked the banks to ensure that the employees, while on 'mandatory leave', do not have access to any physical or virtual resources related to their work responsibilities, with the exception of internal/ corporate email which is usually available to all employees for general purposes.

Banks shall, as per a Board-approved policy, prepare a list of sensitive positions to be covered under 'mandatory leave' requirements and the list shall be reviewed periodically. Implementation of this policy shall be reviewed under the supervisory process.

The revised instructions shall be applicable to all the banks and they shall comply with these instructions within six months from the date of issue of this circular.

#RBI
10-July-2021
blog

Madurai Malli, other flowers exported to USA, Dubai

 

For ensuring that Indians living abroad get supplies of fresh flowers to deities at home and temples, consignments of Geographical Indications (GI) certified Madurai malli and other traditional flowers such as button rose, lily, chamanthi and marigold were exported today to USA and Dubai from Tamil Nadu.

The flowers for the consignments were sourced from Nilakottai, Dindigul and Sathyamangalam, Tamil Nadu by APEDA registered M/s.Vanguard Exports, Coimbatore.

The exporters of consignments were supported by professors from floriculture department of Tamil Nadu Agriculture University, Coimbatore in the adoption of packaging technology to increase the shelf life of the flowers. Direct contacts with the farmers to cultivate quality flowers were undertaken by the exporters and the initiative generated employment to about 130 women workers and about 30 skilled workers.

Indian community in Dubai and USA would be able to offer fresh flowers to Hindu deities both at home and at temples while celebrating religious and cultural festivals after exports of flowers from India continue at regular intervals.

During 2020-2021, fresh-cut flowers jasmine flowers and bouquets (comprising of jasmine and other traditional flowers) valued at Rs 66.28 crores were exported to countries like the USA, UAE, Singapore, etc. Out of which, the value of Rs 11.84 crores were exported from the Tamil Nadu region through major airports of Chennai, Coimbatore and Madurai.

Jasmine (Jasminum Officinale) is one of the most popular flowers found across the world. The scent of Jasmine is synonymous with the splendour of Madurai's Meenakshi Temple, Madurai has emerged as a major market for the malligai grown in its neighbourhood, and has evolved into the 'jasmine capital' of India.

#Dubai #America
08-July-2021
blog

Reserve Bank of India imposes monetary penalty on 14 Banks


The Reserve Bank of India (RBI) has imposed monetary penalty on fourteen banks for non-compliance with certain provisions of directions issued by RBI on 'Lending to Non-Banking Financial Companies (NBFCs)', 'Bank Finance to Non-Banking Financial Companies (NBFCs)', 'Loans and Advances – Statutory and Other Restrictions', 'Creation of a Central Repository of Large Common Exposures – Across Banks'.

The penalties have been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with sections 46 (4) (i) and 51 (1), of the Banking Regulation Act, 1949, as applicable. This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

Background

A scrutiny in the accounts of the companies of a Group was carried out by RBI and it was observed that the banks had failed to comply with provisions of one or more of the aforesaid directions issued by RBI and/or contravened provisions of the Banking Regulation Act, 1949. In furtherance to the same, Notices were issued to the banks advising them to show cause as to why penalty should not be imposed for non-compliance with the directions/contraventions of provisions of Banking Regulation Act, 1949. The replies received from the banks, oral submissions made in the personal hearings, wherever sought by the banks, and examination of additional submissions, where made, were duly considered, and to the extent the charges of non-compliance with RBI directions/contraventions of provisions of Banking Regulation Act, 1949 were sustained, RBI concluded that it warranted imposition of monetary penalty on aforementioned fourteen banks.

The list of the fourteen banks is as given above.

#RBI
08-July-2021
blog

CCI approves acquisition of SB Energy Holding Limited by Adani Green Energy Limited

 

The Competition Commission of India (CCI) approved the acquisition of SB Energy Holding Limited ("Target") by Adani Green Energy Limited ("Acquirer") under Section 31(1) of the Competition Act, 2002, yesterday.

The Proposed Combination envisages the acquisition of the entire (i.e., 100 per cent) shareholding of the Target by the Acquirer from the Target's existing shareholders.

The Acquirer is engaged in the business of power generation through renewable energy. The Acquirer is part of the Adani group, which is an Indian multinational conglomerate comprising of six publicly traded companies. In India, the Acquirer and its subsidiaries are engaged in the business of power generation inter alia through (i) solar energy, (ii) wind energy and (iii) hybrid energy.

The Target, through various special purpose vehicles (“SPVs”), is engaged in the generation, supply and sale of electricity and energy produced from renewable sources.

#CCI
01-July-2021
blog

Hyundai Alcazar rolled out in Tamil Nadu

 

Hyundai Motor India has rolled out Hyundai Alcazar, the 10 millionth car to roll out of the production line at HMIL's plant near Chennai, Tamil Nadu.

The event was held in the presence of Tamil Nadu Chief Minister M K Stalin, who also signed on the car's hood to mark the occasion.

S S Kim, MD and CEO, Hyundai Motor India said, "This historic milestone of the 10 millionth car roll-out is a testimony of Hyundai's commitment towards the Make in India initiative. Furthermore, it also showcases our vision of boosting the socio-economic development in the State of Tamil Nadu and making the country more self-reliant. Inspired by our global vision of 'Progress for Humanity', Hyundai has always brought positive change in the lives of its stakeholders and communities. Today's launch of community-centric social value initiatives is one of the many programs we have rolled-out for the benefit of society. We thank all our customers who continue to believe in us and made Hyundai the most trusted smart mobility solutions provider."

The Hyundai Alcazar is a three-row version of the Hyundai Creta and can accommodate six or seven passengers depending on the variant.

#Hyundai
01-July-2021
blog

Chief Risk Officer to be appointed in Primary Urban Cooperative Banks

 

With the aim of putting in place, an appropriate risk management mechanism commensurate with the business profile and strategic objectives, the Reserve Bank of India has decided that all UCBs having an asset size of Rs 5,000 crore or above, shall appoint a Chief Risk Officer (CRO).

The RBI has also decided that the board must clearly define the CRO's role and responsibilities and ensure that he/she functions independently.

The UCBs shall strictly adhere to the following instructions in this regard:

  1. The CRO shall be a senior official in the bank's hierarchy and shall have adequate professional qualification / experience in the area of risk management.

  2. The CRO shall be appointed for a fixed tenure with the approval of the Board. The CRO can be transferred / removed from the post before completion of the tenure only with the approval of the Board and such premature transfer / removal shall be reported to the concerned Regional Office of Department of Supervision, Reserve Bank of India.

  3. The Board shall put in place adequate policies to safeguard the independence of the CRO. The CRO shall have direct reporting lines to MD/CEO or Board or Risk Management Committee of Board (RMC). In case the CRO reports to the MD/CEO, the Board or the RMC shall meet the CRO, without the presence of the MD and CEO, at least on a quarterly basis.

  4. The CRO shall not have any reporting relationship with the business verticals and shall not be given any business targets. Further, there shall not be any 'dual hatting' i.e. the CRO shall not be given any other responsibility such as CEO, COO, CFO, Chief of the Internal Audit, etc.

  5. In UCBs that follow committee approach in the credit sanction process for high-value proposals, if the CRO is one of the decision-makers in the credit sanction process, he shall have voting power and all members who are part of the credit sanction process, shall individually and severally be liable for all the aspects, including risk perspective related to the credit proposal. If the CRO is not a part of the credit sanction process, his role will be limited to that of an adviser.

  6. In UCBs which do not follow the committee approach for sanction of high-value credits, the CRO can only be an adviser in the sanction process and shall not have any sanctioning power.

  7. All credit products shall be vetted by the CRO from the angle of inherent and control risks.

The CRO shall support the Board in establishing an integrated risk management system, capable of identifying, measuring and monitoring all types of risks on an ongoing basis. This will include developing the organisational risk appetite and a framework that will translate the Board’s strategy into clearly laid down monitorable risk limits at the aggregate and at granular levels. The CRO shall also be involved in actual monitoring and mitigation of risks.

It is emphasized that the primary responsibility of risk management lies with the Board. In order to focus the required level of attention on various aspects of risk management, UCBs meeting the eligibility criteria specified in para 1 above are advised to set up a Risk Management Committee (of the Board) by March 31, 2022. The Board shall decide the membership, scope of work and frequency of meeting of the Risk Management Committee.

UCBs meeting the prescribed criteria as on March 31, 2021 shall appoint / designate a CRO by March 31, 2022. UCBs which may fulfill the criteria at the end of the current or subsequent financial years shall appoint / designate a CRO within a period of six months from the end of the financial year concerned.

A copy of this circular should be placed before the Board of Directors of the bank at its next meeting.

#RBI
26-June-2021
blog

RBI imposes monetary penalties on three banks

 

The Reserve Bank of India has imposed monetary penalties on three banks for contravention of certain directions issued by the RBI.

The penalties have been imposed on The Ajara Urban Co-operative Bank Ltd. in Kolhapur, Excellent Co-operative Bank Ltd. in Mumbai and Janseva Sahakari Bank Limited in Pune.

The details are as below:-

The Ajara Urban Co-operative Bank Ltd:-

The RBI has imposed a monetary penalty of Rs 2 lakh (Rupees Two lakh only) on The Ajara Urban Co-operative Bank Ltd., Ajara, Kolhapur (the bank) for contravention of a direction issued by the RBI on 'Maintenance of Deposit Accounts'. This penalty has been imposed in the exercise of powers vested in the RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. The inspection report of the bank based on its financial position as on March 31, 2019, revealed that the annual review of inoperative accounts had not been done by the bank. 

Excellent Co-operative Bank Ltd:-

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 4 lakh (Rupees Four lakh only) on Excellent Co-operative Bank Ltd., Mumbai (the bank) for contravention of the directions issued by RBI on 'Maintenance of Deposit Accounts' and 'Know Your Customer (KYC)'. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. The inspection report of the bank based on its financial position as on March 31, 2019, revealed that the bank had (i) no system of periodic updation of KYC information of customers in the bank and (ii) not conducted annual review of inoperative accounts.

Janseva Sahakari Bank Limited:-

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 2 lakh (Rupees Two lakh only) on Janseva Sahakari Bank Limited, Pune (the bank) for contravention of the direction issued by RBI on Know Your Customer (KYC). This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949. The inspection report of the bank based on its financial position as on March 31, 2019, revealed that the bank had not introduced system of periodic review of risk categorization of accounts.

#RBI
24-June-2021