Daily GK Update - 2nd April, 2021

 NATIONAL UPDATES:

 1. Govt further extends Emergency Credit Line Guarantee Scheme to June 30, 2021: The Central Government has extended the Emergency Credit Line Guarantee Scheme (ECLGS 3.0) by another three months till June 30, 2021, or till such time that an amount of Rs. 3 lakh crore is sanctioned under the Scheme. Additionally, the government has also introduced certain modifications in the ECLGS scheme to further contribute towards economic revival. Modified rules:

(1) The limit of credit has been enhanced to 40 per cent of outstanding loans as of February 29, 2020. This limit was 20 per cent earlier.

(2) The scheme would now also cover borrowers with total credit outstanding up to Rs 500 crore, with overdues for 60 days or less on February 29 2020, as compared to 30 days overdue earlier.

(3) The tenor of loans granted under ECLGS 3.0 is 6 years with a moratorium period of 2 years on repayment of principal. In ECLGS 2.0, the tenor was five years with a 12-month moratorium.

(4) Further, the scheme has also introduced providing an incentive to MLIs (member lending institutions) to enable the availability of additional funding facility to the eligible beneficiaries.

(5) The ECLGS was announced as part of the Aatma Nirbhar Bharat Package of Central Government to provide fully guaranteed and collateral-free additional credit to MSMEs, business enterprises, individual loans for business purposes and MUDRA borrowers.

 2. Government announces Rs 14,500 crore capital infusion in 4 PSBs: The Central Government has announced to infuse Rs 14,500 crore in four state-owned lenders namely Central Bank of India, Indian Overseas Bank, Bank of India and UCO Bank in 2020-21, by issuing non-interest bearing bonds to these banks. This infusion will complete the government’s total capital infusion of Rs 20,000 crore in public sector banks for the current financial year 2020-21. Earlier in December 2020, it infused Rs 5,500 crore in Punjab and Sind Bank. The Recapitalisation bonds will be issued with six different maturities, and the special securities would be “at par” for the amount as per the application made by the eligible banks. Banks require capital to meet the mandatory reserve requirements laid out by the Reserve Bank of India (RBI), make provisions for bad loans and kick-start the lending cycle when demand revives in the economy.

 3. Cabinet Approves Production Linked Incentive Scheme for Food Processing Industry worth Rs 10,900 crore: The Union Cabinet has approved the Central Sector Scheme called “Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)” with an outlay of Rs.10900 crore. Scheme will be implemented over a six year period from 2021-22 to 2026-27. The Project Management Agency (PMA) shall implement the scheme. PMA will be responsible for appraisal of applications/ proposals, verification of eligibility for support, scrutiny of claims eligible for disbursement of incentive. The PLI scheme will support creation of global food manufacturing champions and support Indian brands of food products in the international markets.

 4. UP cabinet approves scheme offering affordable rental housing for urban migrants, poor: The Uttar Pradesh government will start a scheme offering affordable rental housing for poor people living in cities and a proposal to this effect was approved by the state cabinet presided over by Chief Minister Yogi Adityanath. Under the Affordable Rental Housing and Complexes (ARHC) scheme, urban migrants/poor laborers, those belonging to economically weaker sections, low-income groups including factory workers, educational institutions, people associated with hospitality, and students will be the beneficiaries. Preference will be given to people belonging to Scheduled Castes, Scheduled Tribes, Other Backward Classes, widows, working women, divyang, and minorities, which will be subject to the provisions made by the state government.

 INTERNATIONAL UPDATES:

 1. India ranks 140th in WEF’s gender gap index 2021: India has slipped 28 places to rank 140 among 156 countries in the Global Gender Gap Report 2021, by World Economic Forum. In 2020, India ranked 112th among 153 countries. Iceland has topped the index as the most gender-equal country in the world for the 12th time. Afghanistan is the worst-performing country in the report.

South Asia: India emerged as the third-worst performing country in South Asia. Bangladesh is the best performer in South Asia. Among India’s neighbours, Bangladesh ranked 65, Nepal 106, Pakistan 153, Afghanistan 156, Bhutan 130 and Sri Lanka 116. In South Asia, only Pakistan and Afghanistan ranked below India.

Top 10 gender-equal country: (1) Iceland; (2) Finland; (3) Norway; (4) New Zealand; (5) Rwanda; (6) Sweden; (7) Namibia; (8) Lithuania; (9) Ireland and (10) Switzerland

Global Gender Gap Report: The Global Gender Gap Report 2021 is the 15th edition of the annual publication by WEF. The Global Gender Gap Index was first introduced by the World Economic Forum in 2006 to compare countries’ gender gaps across four dimensions: economic opportunities, education, health and political leadership.

Note: World Economic Forum Headquarters: Cologny, Switzerland; World Economic Forum Founder: Klaus Schwab; World Economic Forum Founded: January 1971.

2. World Autism Awareness Day: 02nd April: The World Autism Awareness Day is observed internationally on 2 April every year, to raise awareness about people with Autism Spectrum Disorder (ASD) throughout the world. The 2021 World Autism Awareness Day observance will address these issues through a virtual event that will include moderated panel discussions with individuals on the autism spectrum who have themselves experienced the challenges and seen these new opportunities in the employment market. The very first World Autism Day was observed in the year 2008 on April 2. It was adopted by the United Nations General Assembly on 18 December 2007. World Autism Day is one of only seven official health-specific UN Days.

What is Autism: Autism, or autism spectrum disorder (ASD), refers to a broad range of conditions characterized by challenges with social skills, repetitive behaviours, speech and nonverbal communication. Autism is a development disorder. The disorder is characterized by difficulties with social interaction and communication which may also include restricted and repetitive behaviour.

 3. International Children’s Book Day: 02nd April: International Children’s Book Day (ICBD) is organised annually on 2nd April since 1967, by the International Board on Books for Young People (IBBY), an international non-profit organization, to inspire a love of reading and to call attention to children’s books. Theme 2021: “The Music of Words.” Each year a different National Section of IBBY has the opportunity to be the international sponsor of ICBD and decide upon a theme. The IBBY United States is the sponsor for International Children’s Book Day 2021.

Note: International Board on Books for Young People Founder: Jella Lepman; International Board on Books for Young People Founded: 1953, Zürich, Switzerland; International Board on Books for Young People Headquarters: Basel, Switzerland.

 OTHER UPDATES:

 

SPORTS

1. Lewis Hamilton Wins 2021 Bahrain Grand Prix: Lewis Hamilton (Mercedes-Great Britain) has won the 2021 Bahrain Grand Prix, held on 28 March 2021. It was the opening race of the season of the 2021 Formula One World Championship. This win is first win of the season for Hamilton who now holds the records for the most wins (96), in Formula One history. Max Verstappen (Red Bull Racing-Netherlands) came second and Valtteri Bottas (Mercedes-Finland) was third.

2. IPL 2021: Puma becomes Official Kit Partner of Royal Challengers Bangalore: Indian Premier League side Royal Challengers Bangalore signed a strategic long-term partnership with global sports brand Puma. Under the terms of the deal, Puma will be the official kit partner of RCB from the upcoming season of the league. Puma already has an on-going association with RCB skipper Virat Kohli.

BANKING AND FINANCE

1. SBI inks USD 1 billion loan agreement with Japan Bank: India’s largest lender, State Bank of India, has raised $1 billion from Japan Bank for International Cooperation (JBIC) to extend loans to the supply chain of the Japanese automobile industry in India. The loan is in the form of refinancing against the funding support provided to the manufacturers, suppliers and dealers of Japanese automobiles in India. This collaboration between SBI and JBIC will help the bank in extending loan facility to the entire supply chain at a time when people are preferring a personal mode of transport. Now the total loan facility between SBI and JBIC has become $2 billion. Earlier in October 2020, SBI inked a similar agreement for $1 billion with JBIC.

Note: SBI Chairperson: Dinesh Kumar Khara; SBI Headquarters: Mumbai; SBI Founded: 1 July 1955.

2. Axis Bank to sell UK arm to tech platform: Private sector lender Axis Bank has entered into a Share Purchase Agreement for sale of 100 per cent stake in its subsidiary, Axis Bank UK Limited to OpenPayd Holdings Ltd. The agreement was entered on March 31, 2021, and the transaction is subject to approval by the UK Financial Regulator, the Prudential Regulation Authority (PRA).

The consideration or the value for the transaction would be the completion net asset value (book value of the bank on the date of completion), plus a fixed premium of $5,500,000. Axis Bank expects the sale to be completed by September 30, 2021 subject to the approval of ‘Change in Control’, received from the UK Financial Regulator, the PRA.

Note: Axis Bank Commenced operations: 1994; Axis Bank Headquarters: Mumbai, Maharashtra; Axis Bank Tagline: Dil Se Open; Axis Bank MD and CEO: Amitabh Chaudhry.

BUSINESS AND ECONOMY

1. Govt pegs market borrowing at Rs 7.24 lakh crore in 1st half of FY22: The government has decided to borrow Rs 7.24 lakh crore in the first half of 2021-22 fiscal (FY22) to meet resources to revive the economy hit by coronavirus pandemic. This borrowing is 60.06 per cent of the estimated gross issuances for fiscal 2021-22. According to Budget 2021-22, the estimated gross borrowing is pegged at Rs 12.05 lakh crore in the financial year beginning April 01, 2021. The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills.

2. World Bank raises GDP growth projection for India to 10.1% for FY22: The World Bank has revised upward the GDP growth projections for India by 4.7 percentage points to 10.1 per cent for the financial year 2021-22, due to a strong rebound in private consumption and investment growth. Earlier the bank had pegged the GDP growth at 5.4 per cent for FY22. Apart from this, the World Bank has forecast the economy to contract by 8.5 per cent in FY21 (2020-21). The multilateral agency has also projected economic growth at 5.8 per cent for India during FY23 (2022-23).

Note: World Bank Headquarters: Washington, D.C., United States; World Bank Formation: July 1944; World Bank President: David Malpass.

DEFENCE

1. Indian Army to participate in Military Exercise SHANTIR OGROSHENA 2021: A multinational Military Exercise named ‘SHANTIR OGROSHENA’ 2021 (Front Runner of the Peace) is scheduled to be held in Bangladesh from April 04 to 12, 2021. The theme of the exercise is “Robust Peace Keeping Operations”. The exercise is being held to commemorate the birth centenary of Bangladesh ‘Father of the Nation’ Bangabandhu Sheikh Mujibur Rahman and mark glorious 50 years of liberation of the country.

About the exercise: The Indian Army is also participating in this multinational exercise, along with a contingent of the Royal Bhutan Army, Sri Lankan Army and Bangladesh Army. The Indian contingent will comprise 30 personnel including Officers, JCOs and Jawans of a Battalion from The DOGRA Regiment. USA, UK, Turkey, Kingdom of Saudi Arabia, Kuwait and Singapore will also attend the exercise as Military observers.

2. Indian Navy to participate in French Naval Exercise in Bay of Bengal with QUAD nation: The Indian Navy is scheduled to participate in France-led naval drill named “La Perouse”, which will be held from April 5 to 7, 2021 in the Bay of Bengal. The participating nations also include the other Quadrilateral Security Dialogue (QUAD) member countries namely Australia, Japan and the United States of America (USA). This is the first time that the Indian Navy will take part in ‘La Perouse’. Until now, India was not invited for the French naval exercise.