Business, Economy & Banking Current Affairs MCQs

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International agency OECD recently lowered India’s GDP growth forecast to 5.1 per cent from the earlier projection of 6.2 per cent for 2020-21. For the financial year ending March 2019, OECD has projected a growth rate of 4.9%.
The main reason for the cut in rates was the concerns about the impact of coronavirus on the domestic and the global economy. However, the economy of India is to improve to 5.6 per cent in the following year (2021-22).

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Gurgaon-based India’s air carrier SpiceJet recently announced its partnership with GMR Hyderabad Aviation SEZ Limited (GHASL) for setting up a warehousing, distribution and trading facility. GAHSL is a fully-owned subsidiary of GMR Hyderabad International Airport Ltd (GHIAL).
The facility is to be set up in the airport operator’s aerospace and industrial park. This pact is expected to improve the operations of cargo industry in the country.

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The Union Cabinet approved a reconstruction plan proposed by the RBI for providing financial assistance to the Yes Bank. Union Finance Minister announced that the authorised capital of Yes Bank has been increased to Rs 6,200 crore.
Under the plan, SBI will infuse Rs 7,250 crore in the Yes bank and take 49 per cent equity. ICICI Bank shall invest Rs 1,000 crore and HDFC will infuse Rs 1,000 crore, while Axis Bank will invest up to Rs 600 crore.
Federal Bank and Bandhan Bank will invest Rs.300 crore each. Former non-executive chairman of Punjab National Bank Sunil Mehta is appointed as Yes bank’s non- executive chairman.

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The Fifteenth Finance Commission is to set up a panel soon, which will examine the fiscal and debt situation of the Centre and states.
This panel is to be headed by the Chairman of the 15th Finance Commission N.K.Singh. It will present a road map on the lines of the erstwhile Fiscal Responsibility and Budget Management panel, which was also headed by N.K.Singh. The panel may include or receive suggestions from former RBI Governor Urjit Patel, former chief economic advisor Arvind Subramanian among others.

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The government recently approved to continue the scheme for Rebate of State and Central Taxes and Levies (RoSCTL) on export of garments beyond March 31.
It is to be continued till it is merged with the Remission of Duties and Taxes on Exported Products scheme (RoDTEP), which was introduced in last September. By continuing RoSCTL scheme, all taxes and levies in the textile sector which are not rebated under other mechanisms will be rebated.

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Punjab National Bank has unveiled its new logo ahead of its merger with the United Bank of India and the Oriental Bank of Commerce.
The new logo bears the symbols of all the three public sector banks. The Reserve Bank of India (RBI) has issued a notification that the merger of ten banks into four will be carried out as scheduled, on April 1, 2020. After the amalgamation process, PNB will become the second largest lender in India after the State Bank of India.

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The Union Ministry of Commerce and Industry recently announced changes in the Foreign Trade Policy (FTP) of the Indian Government.
The present policy had been valid for 5 years up to March 31, 2020 while it came into force on 1st April, 2015. At the backdrop of the coronavirus pandemic, the Government has decided to extend the policy by one more year, up to 31 March, 2021.

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Domestic payment company BharatPe has partnered with ICICI Lombard General Insurance to launch the country’s first coronavirus insurance cover for merchants.
The insurance policy which can be purchased from the BharatPe mobile application aims to cover about 40 lakh shop-keepers, who are more prone to the coronavirus infection amid the lock-down. The health cover pays out 100% of the sum insured if they are tested positive for the pandemic for a premium of ₹199 for a ₹25,000 cover for one year.

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According to a recent report released by the government, India’s fiscal deficit stood at 5.07% of gross domestic product (GDP) in February. Industrial output, measured in terms of Index of Industrial Production (IIP), was also at 4.5% in February.
The Government has revised its fiscal deficit target of 3.8% of GDP for FY20, during the 2020 Union Budget presentation. With a 5.07% fiscal deficit, it is expected that the revised target for the year 2019-20 would be difficult to be achieved.

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The Reserve Bank of India has recently announced that the banks that have availed funds under the first tranche of the targeted long-term repo operations (TLTRO) route, will have to deploy the funds raised within 30 days.
If the banks fail to deploy funds within the stipulated time from the auction, they shall have to pay a penal interest of an additional 200 basis points (bps)in the policy repo rate, for the number of days these funds are not deployed.