Business, Economy & Banking Current Affairs - 2019
Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.
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The 20th Meeting of Financial Stability and Development Council (FSDC) was held under the Chairmanship of Smt. Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs.
Key Highlights of Meeting
The Meeting reviewed current global and domestic economic situation, overall macro-economic situation and financial stability issues including those concerning Banking and Non Banking Financial Company (NBFC).
Council was also informed about progress made towards setting-up of Financial Data Management Centre (FDMC) under the aegis of FSDC, so as to facilitate integrated data aggregation and analysis as also a Computer Emergency Response Team (CERT-Fin) towards strengthening cyber security framework for financial sector.
Council also held consultations to obtain inputs and suggestions of Financial Regulators for Union Budget 2019-20. All the regulators presented their proposals for upcoming Budget. The financial sector regulators includes- SEBI (Capital Market), RBI (Monetary Sector), IRDA (Insurance), PFRDA (Pension) and IBC (Insolvency & Bankruptcy).
Council also took note of activities undertaken by FSDC Sub-Committee which is chaired by Reserve Bank of India (RBI) Governor and action taken by Members on decisions taken in earlier Meetings of FSDC.
What is Financial Stability and Development Council?
The FSDC was constituted in December 2010. It is apex body of sectoral regulators and not a statutory body.
Objective: to strengthen and institutionalise mechanism for maintaining financial stability, promoting financial sector development and enhancing inter-regulatory coordination.
Function: Among other things, it deals with issues relating to financial stability, financial literacy, financial inclusion, financial sector development, inter–regulatory coordination and macro prudential supervision of economy which also includes functioning of large financial conglomerates. No separate funds are allocated to Council for undertaking its activities.
FSDC Sub-Committee: It deliberates on agenda items proposed by any member of FSDC Council which mainly include matters relating to financial stability, inter-regulatory coordination, and financial sector development.
Tags: 20th Meeting of Financial Stability and Development Council • CERT-Fin • Computer Emergency Response Team • FSDC • FSDC Sub-Committee • inancial Stability and Development Council • IRDA • PFRDA • RBI • SEBI • Smt. Nirmala Sitharaman • Union Minister of Finance and Corporate Affairs
The Digital Communications Commission (DCC), the highest decision-making body of Department of Telecom (DoT), has approved levying of penalty on Bharti Airtel Ltd. and Vodafone Idea Ltd. for denial of interconnection to Reliance Jio Infocomm Ltd. when the latter had entered market in 2016.
Despite the approval for imposing penalty, the inter-ministerial panel of DCC has asked Telecom Regulatory authority of India (TRAI) to review penalty amount worth ₹3,050 crore considering the financial stress in telecom sector.
No Troubling Users: However, TRAI recommended penalty, instead of revoking operator’s license so as to avoid consumer inconvenience. The telecom regulator while recommended a fine for Airtel and Vodafone amounting to ₹1,050 crore each and for Idea it was ₹950 crore but since Vodafone and Idea have now merged to form Vodafone-Idea (becoming largest telecom carrier in India), the new entity will have to bear the combined burden.
In October 2016, TRAI recommended total penalty of ₹3,050 crore on 3 Telephone Company namely Airtel, Vodafone and Idea, for violating their licence agreement and denial of interconnection to newer entrant Reliance Jio which complained that more than 75% of calls on its Jio network failed as its rivals did not releasing sufficient number of points of interconnect (PoI).
TRAI also upheld that the act of 3 operators was against public interest and in violation of their licence agreement, which warrants revocation of operator’s licence.
Since then TRAI’s decision had followed a prolonged battle between telecos- Reliance Jio and Bharti Airtel, Vodafone and Idea Celluar. Reliance Jio alleged that its subscribers were unable to make calls to other networks (Airtel/Vodafone/Idea) as those operators were not providing adequate inter connection points.
About Digital Communications Commission
DCC was formerly called ‘Telecom Commission’. It is the top decision-making body in Department of Telecommunications (DoT), under Union Ministry of Communications and Information Technology.
Members: Telecom secretary is ex-officio chairperson of DCC. The full-time members of panel include DoT’s Additional Secretary, Member (finance), Member (services) and Member (technology). The part-time members of body are NITI Aayog’s Chief Executive Officer (CEO), Department of Economic Affairs (DEA) secretary and Ministry of Electronics and IT secretary.
Tags: Bharti Airtel Ltd. • Department of Economic Affairs • Department of Telecommunications • Digital Communications Commission • Ministry of Electronics and IT secretary • Reliance Jio Infocomm Ltd. • Telecom Regulatory authority of India • Telecom secretary • TRAI • Union Ministry of Communications and Information Technology. • Vodafone Idea Ltd