Economy and Banking Current Affairs August 2015 Part 3

MCX to Partner CME Group for International Exchange at GIFT City

• Multi Commodity Exchange of India Limited (MCX) has signed a Memorandum of Understandings (MoU) on July 21, 2015 with the US-based Chicago Mercantile Exchange (CME) group which runs the world’s largest chain of exchanges in derivatives products.
• The MoU signed for a study on setting-up operations in the International Finance Service Centre at the Gujarat International Finance Tech (GIFT) city near Ahmedabad.
• The MoU will include establishment of a joint working group to explore opportunities to develop and market new products and services for the US and Indian markets, as well as collaboration on customer education.

RBI and Central Bank of Sri Lanka Signed Currency Swap Agreement

• The Reserve Bank of India (RBI) signed a special currency swap agreement with the Central Bank of Sri Lanka on July 16. 2015 which will allow the Central Bank of Sri Lanka to draw up to $ 1.1 billion for a maximum period of six months.
• In March, 2015, RBI had signed a Currency Swap Agreement with the Central Bank of Sri Lanka for $ 400 million under the existing SAARC Currency Swap Framework within the overall limit of $ 2 billion.
• The swap arrangements are intended to provide a backstop line of funding for the SAARC member countries to meet any balance of payments and liquidity crisis till long term arrangements are made.

BHEL Signed Three Agreements in Kazakhstan for Power Projects

• Bharat Heavy Electrical Limited (BHEL) has signed three strategic agreements with Kazakhstan companies during the Prime Minister Narendra Modi’s visit to Kazakhstan on July 7, 2015.
• An MoU was signed with JSC Samruk Energy, the national power utility of Kazakhstan having a major share in the Kazakh power sector. Both companies will work together on the projects of mutual interest.
• Another MoU was signed with KUS for comprehensive cooperation in the energy sector for design and construction of power plants and Combined Heat and Powerplants (CHP).
• Then another MoU was signed with Kaznex Invest, the national export and investment agency of Kazakhstan (working under the Ministry of Investments and Development of Kazakhstan), for cooperation in executing projects in Kazakhstan.

Read Also – India & World Current Affairs September 2015.

FDI in Manufacturing of Tobacco Products Prohibited RBI

• The Reserve Bank of India (RBI) told on July 3, 2015 that the Foreign Direct Investment (FDI) in manufacturing of tobacoo products i.e., cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes is prohibited in India.
• But, foreign direct investment in other activities relating to these products including wholesale cash and carry, retail trading shall be governed by the sectoral restrictions laid down in the FDI policy.
• The Department of Industrial Policy & Promotion, under the Commerce Ministry has framed these guidelines on sectoral restrictions.

BSNL Launched Mobile Wallet with Cash Withdrawal Feature

• State-run operator Bharat Sanchar Nigam Limited (BSNL) launched a pre-paid card linked mobile wallet service ‘Speed Pay’ on July 3, 2015 which would allow its customers to transfer money, pay for services as well as withdraw cash of up to Rs 1 lakh.
• Speed Pay allows a customer to load money even if he does not have a bank account. The money loaded in the mobile wallet can be transferred to a bank account and even withdrawn at bank branches or at BSNL outlets.
• There will be 1% transaction charge if money from wallet is transferred by a person to other bank accounts or there is a cash withdrawal. There are no other Charges for other services. Daily cash withdrawal limit is Rs 5000 and for full Know Your Customer (KYC) compliant person it is Rs 1 lakh.
• BSNL has launched the service in partnership with IT company Pyro. Pyro has partnered with money transfer technology firm Visa which enables Speed Pay card holder to purchase goods both offline and online, like a debit card, where Visa based transactions are accepted Science and technology.

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