Business and Economy Current Affairs in December 2020
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Current Affairs- Business & Economy - December 2020
|31st December, 2020|
Finance Ministry extends RoDTEP Scheme to all export goods for boosting export
The Ministry of Finance has extended the benefits of Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to all the products exported from India form 1st January, 2021. It was officially announced by the Union Minister of Finance, Nirmala Sitharaman on 31st December, 2020. The RoDTEP scheme refunds the central, state and local duties or taxes to the ledger account of the exporter. This action has been taken by the Government of India to boost the export of goods from India which in return would bring large sums of foreign exchange.
Pimpri Chinchwad Municipal Corp. signs MoU with UNDP-India for creating India’s 1st SIB
Pimpri Chinchwad Municipal Corporation (PCMC) of Pune, Maharashtra has signed an MoU with the Indian branch of United Nations Development Programme (UNDP) for creating India’s 1st Social Impact Board (SIB). SIB is an investment tool that sets outcome-oriented goals that should be achieved in the beginning of the contract. This helps in tracking the progress and ensures transparency for the stakeholders. Under the MoU, UNDP-India will provide technical assistance to the PCMC towards achieving the Sustainable Development Goals (SDG). If the initial targets are achieved by the PCMC then it will only pay for the public welfare project cost associated with the bond.
|28th December, 2020|
SEBI approves Suryoday Small Finance Bank to float its IPO
Securities and Exchange Board of India (SEBI) has approved the floating of Suryoday Small Finance Bank’s Initial Public Offering (IPO). The shares of Suryoday Small Finance Bank will now be listed on the National Stock Exchange (NSE) Nifty and Bombay Stock Exchange (BSE) Sensex. Suryoday Small Bank’s IPO will have 1,15,95,000 shares out of which 84,66,796 shares of existing shareholders will be offered for sale. Suryoday Small Finance Bank has over 20 institutional investors along with some private equity investors.
Hero Electric colaborates with eBikeGO for transforming last mile deliveries
Hero Motocorp’s subsidiary, Hero Electric has collaborated with e-mobility startup, eBikeGo to supply over 1000 units for transforming the last mile deliveries. Last Mile is a technical term used in the Supply Chain Management (SCM) to describe the movement of goods from the manufacturing unit to the ultimate users. eBikeGO has already procured a batch of 120 units from Hero Electric. Hero Electric will provide end-to-end service support to the Hero e-bike users through its network of 600 dealership showrooms across India.
|24th December, 2020|
Ministry of Finance amends GST Rules to curb tax evasion
On the recommendation of GST Council’s Law Committee, the Ministry of Finance has amended the Goods and Services Tax (GST) Rules for preventing the companies from doing tax evasion through fake invoicing. The Central Board of Indirect Taxes and Customs (CBIC) has officially notified the changes in the GST Rules. The new amendment has brought a new rule called Rule 86B that restricts the businesses with a monthly turnover of over Rs. 50 lakh to use the Input Tax Credit (ITC) for discharging the GST liability to 99 %. Now the businesses with a monthly turnover of Rs. 50 lakh will have to pay at least 1 % of their GST liability in cash.
|23rd December, 2020|
Wipro inks $ 700 million deal to takeover Metro AG
Indian IT sector giant has inked a $ 700 million deal with international company, Metro AG to take over the IT services of Metro NOM GMBH (Germany) and Metro Systems Romania SRL. Around 1300 employees of Metro AG working in Germany, Romania and India will be transferred to Wipro. Metro AG is an international wholesale company that deals with the assortment of food and non-food supplies and provides its services to the hotels, restaurants, caterers and independent dealers. After the takeover, Wipro will deliver complete technology, engineering and solutions for Metro AG.
|22nd December, 2020|
India signs a $ 500 million pact with World Bank for developing green and safe highways
India has signed an MoU with the World Bank for developing green and safe highways. Under the MoU, World Bank will provide a financial assistance of $ 500 million to the Ministry of Road Transport and Highways for the construction of highway corridors in Rajasthan, Himachal Pradesh, Uttar Pradesh and Andhra Pradesh. A total of 783 kilometers of highways will be constructed with an integration of safe and green technologies including local and marginal materials, industrial by-products and bio-engineering solutions.
Bajaj Auto joins hand with Maharashtra government for setting up a 650 crore rupee Plant
Bajaj Auto has signed an MoU with Maharashtra government for establishing a manufacturing unit at an estimated cost of Rs. 650 crores at Chakan. The automobile manufacturing facilities will manufacture bikes of Husqvarna, Triumph and KTM. Bajaj Auto has 48 % shares of KTM (Austria), and Husqvarna (a subsidiary of KTM). Bajaj Auto is the non-equity global partner of British motorcycle brand, Triumph. The Chakan Automobile Plant will start its production from 2023 which will generate multiple employment opportunities directly and indirectly.
|17th December, 2020|
Snapdeal collaborates with NPCI for quick and easy doorstep payments
Indian e-commerce company, Snapdeal has collaborated with National Payments Corporation of India (NPCI) for making doorstep digital payments quick and hassle- free. This will enable the customers of Snapdeal to make online digital payments for their parcel deliveries by simply scanning the Quick Response (QR) codes at their doorsteps. The agreement targets the customers who prefer Cash On Delivery (COD) over Pre-paid mode of payment for their online orders. The delivery boy will provide the QR code to the customer and the payments will be accepted via multiple UPI platforms like PhonePay, Google Pay, Whatsapp Pay.
Tata Motors acquire Marcopolo’s shares in Tata-Marcopolo Joint Venture
Leading bus and coach manufacturer, Marcopolo S.A. of Brazil has agreed to sell its 49% stakes worth Rs. 99.96 crores in the Tata Marcopolo Motors Ltd. (TMML) to Tata Motors Ltd. Tata-Marcopolo Joint Venture will now be a fully owned subsidiary of Tata Motors Ltd. Marcopolo will continue to license its trademark to TMML for atleast 3 years with a non-compete provision in India. Marcopolo S.A is one of the largest bus and coach manufacturers in the world.
|16th December, 2020|
SEBI modifies MPS norms for CIRP companies
Market regulator, the Securities and Exchange Board of India (SEBI) has modified the Minimum Public Shareholding (MPS) norms for the Corporate Insolvency Resolution Process (CIRP). The change has been done regarding the segregation and ring fencing of assets and liabilities of each Mutual Fund scheme. As per the new norms, companies coming out of the CIRP will have to show 5 % of minimum public shareholding at the time of its re-listing. After the re-listing, the companies will get a time period of 1 year to acquire 10 % and 3 years to acquire 25 % of MPS.
|15th December, 2020|
World’s largest e-scooter factory to be set up by Ola in Tamil Nadu
Ola has signed an MoU with Tamil Nadu government for setting up an electric scooter manufacturing unit worth Rs. 2400 crores. It will be the largest electric-scooter manufacturing unit in the world with an initial manufacturing capacity of 2 million units per year. Ola Electric acquired Dutch startup, Etergo BV, six months ago for entering into the electric mobility market. Ola Electric is being financially supported by Soft Bank. The investment is a major boost to PM Modi’s AtmaNirbhar initiative. Ola’s e-scooter manufacturing facility will create around 10,000 jobs.
|11th December, 2020|
Bombay Stock Exchange unveils BSE E-Agricultural Markets Ltd.
Bombay Stock Exchange (BSE) has launched BSE E-Agricultural Markets Ltd (BEAM) on 11th December, 2020. BEAM is an electronic platform dedicated to agricultural commodities. Rajesh Sinha has been appointed as the CEO of BEAM which is headquartered at Mumbai. BEAM has been launched with an aim to boost the competitiveness of the Indian agricultural market through the financial market and ecosystem of BSE. Farmers can reach out to distant markets through the e-auction facility of BEAM. Farmers can discover best prices for their produce through the electronic platform to make large profits.
|4 December 2020|
-By, Dr. Rituparna Dubey
Salesforce will be acquiring workplace chat app Slack
California-based Salesforce, the Cloud computing giant is to acquire the workplace chat app Slack for $27.7 billion. This deal is Salesforce’s biggest ever purchase and marks one of the most consequential acquisitions in business software industries in recent years
SIDBI has floated an asset reconstruction company for the MSMEs
The Small Industries Development Bank of India has floated India's first Asset Reconstruction Company that primarily focuses on Non-Performing Assets of Micro, Small and Medium Enterprises. It has been named India SME Asset Reconstruction Company.
HexGn and AFC India have joined hands to promote agri-tech start-ups
HexGn and AFC Inda have entered into a partnership to promote 1,000 agriculture-related entrepreneurship start-ups over the next 5 yrs in India. HexGn shall host a series of programs and initiatives that are aimed to increase the capabilities and skills of 1st generation agri-tech entrepreneurs. AFC India Ltd is owned by NABARD and EXIM Bank.
RBI has predicted the economy to contract at 7.5% for Fiscal Year 2020-21
The Reserve Bank of India has revised its forecast of the economic growth for Financial Year 2020-21 to (-)7.5% as compared to its earlier forecast of (-)9.5%. The second half of the Financial Year is expected to show positive growth. The Change in the forecast has been prompted by a surge in the demand in both rural & urban areas. The economy had declined by a massive 23.9% in the 1st quarter.
|3 December, 2020|
-By, Dr. Rituparna Dubey
SBM Bank India has launched a Hyper-personalised SmartBanking platform in partnership with Finin
SBM Bank India announced the launch of the SmartBanking platform in partnership with Finin.
- Towards this, SBM Bank India issues a Savings Account that can be opened instantly & comes with a VISA powered Debit Card equipped with smart card management features.
- The founder of Finin and also its CEO: Suman Gandham.
Paytm has partnered with Suryoday Small Finance Bank to provide instant digital loans to the MSMEs
India’s digital financial services platform Paytm has partnered with Suryoday Small Finance Bank to empower MSMEs with instant digital loans.
- This is the first lending partnership for Paytm with a small finance bank.
- This shall help the merchants get loans seamlessly.
- The loans to be disbursed to over ₹ 1 Lakh small businesses.
IFSCA has obtained the membership of the International Association of Insurance Supervisors (IAIS)
International Financial Services Centres Authority is now a member of the International Association of Insurance Supervisors.
- International Financial Services Centres Authority is a unified authority for the development & regulation of financial products.
- It has obtained membership from IAIS.
- With this, IFSCA would have access to IAIS’s global network & would be able to exchange ideas & information with other global regulators.
- IFSCA was established in April 2020 with its HQ in Gandhinagar, Gujarat
NABARD and SBI have signed an MoU to extend the concessional refinance facility
Karnataka regional office of NABARD & State Bank of India signed an MoU to extend concessional refinance facility
- The MoU shall benefit the watershed development & tribal development projects.
- It aims to benefit 45000 beneficiaries from 260 FPOs in 28 districts.
- SBI will be implementing an agency for digitalizing the Self Help Groups.
Tata Digital has bought a stake in the government’s rural e-tailer Grameen e-Store
Tata Digital has invested about ₹10 crores for an undisclosed stake in Grameen e-Store
- Grameen e-Store is a part of the Government of India’s rural e-commerce venture.
- Grameen e-Store was launched in 2020
- It is available in 120,000 locations in India.
- The e-store is run by Common Service Centres which comes under the Ministry of Electricity and IT.
- So far, It has already clocked ₹120 crores in turnover.
Razorpay and PayPal have entered into a partnership to help MSMEs and freelancers to go global
Razorpay and PayPal have come together to enable seamless international payments for MSMEs and freelancers.
- With the integration of PayPal into Razor pay’s payment platform, entities can accept international payments without having to write a single line of code.
- Razorpay aims to disburse payments online.
- The CEO is Harshil Mathur.
|2 December, 2020|
-By, Dr. Rituparna Dubey
GST collection for the month of December
GST collection for the month of November is ₹1.05 lakh crore
GST collection in November 2020 included:
- CGST of ₹ 19,189 crores,
- SGST of ₹ 25,540 crores, and
- IGST of ₹ 51,992 crore &
- cess of ₹ 8,242 crores.
- The revenues rose 1.4% on an annual basis at ₹104963 lakh crore.
- GST revenues in Oct were ₹ 1.05 lakh crore marking 2 successive months in which revenues topped the ₹ 1 lakh crore mark.
Contactless debit card
SBI, NPCI, and JCB have partnered to launch a contactless debit card
- State Bank of India, National Payments Corporation of India, and JCB International have announced the launch of ‘SBI RuPay JCB Platinum Contactless Debit Card’.
- This Card has been launched on the RuPay network by SBI in association with JCB.
- Customers can perform contact & contactless payments with this.
Facebook buys Kustomer for $1B
Tech Giant Facebook has acquired Kustomerto expand into customer service tools
- Kustomer is a start-up that uses a new approach to providing agents with better data.
- It aims at a more unified picture of users by bringing together the many social media and other channels
- It also takes into account the long history between the users and the company in question
- The CEO of Kustomer is Brad Birnbaum.
|1 December, 2020|
-By, Dr. Rituparna Dubey
S&P Global is to buy the IHS Markit in a deal valued at $44 billion.
Data giant S&P Global Inc agreed to buy IHHS Markit Ltd.
- The deal is worth $44 billion.
- This will be 2020’s biggest merger.
- S&P Global is renowned for providing debt ratings to countries and companies as well as data on capital and commodity markets worldwide
- IHS Markit was formed in 2016 and its founder is Lance Uggla.
IndiGrid has signed a pact to acquire a stake in Parbati Koldam from Reliance Infra
Indis Grid Trust(IndiGrid) signed a share purchase agreement for the acquisition of 74% in Parbati Koldam Transmission Company Ltd from Reliance Infrastructure.
- IndiGrid is backed by KKR & Co.
- PKTCL is a joint venture between Reliance Infrastructure Limited and PGCIL
- IndiGrid is India’s only publicly listed InvIT in the power sector.