RBI to implement Mega Bank Consolidation Plan
Context :
The Reserve Bank of India (RBI) stated that the schemes for the merger of 10 state-run banks into four lenders will come into force from 1 April.
RBI also stated that the branches of merging banks will operate as of the banks in which the banks have been amalgamated.
The banks sought to defer the merger schemes of lenders due to the lockdown triggered by coronavirus outbreak. Union Finance Minister Nirmala Sitharaman announced that the megabank consolidation plan would take effect from 1 April 2020 despite the COVID-19 pandemic.
Background :
On 4 March, the government of India notified the amalgamation schemes for 10 state-owned banks into four as part of its consolidation plan. The move aimed to create bigger size stronger banks in the public sector.
The amalgamation of 10 PSBs into four Banks include :
(i) Oriental Bank of Commerce (OBC) and United Bank of India into Punjab National Bank (PNB)
(ii) Syndicate Bank into Canara Bank
(iii) Andhra Bank and Corporation Bank into Union Bank of India
(iv) Allahabad Bank into Indian Bank
PMO sets up high-level panels to deal with situation post lockdown
Context :
The Prime Minister’s Office (PMO) constituted 10 different high-level committees on 29 March. The committee will suggest measures to ramp up healthcare, put the economy back on track, reduce the problems faced by the people post 21-day lockdown imposed to contain the coronavirus pandemic.
Highlights :
- These committees are looking after various aspects that will work under the overall guidance of PK Mishra, Principal Secretary to the Prime Minister.
- The pro-active initiative is taken by the government to deal with multiple challenges, which coronavirus has posed and made the country to deal with an emergency situation.
- These committees will also work on a strategy to restore normalcy in their respective sectors in the shortest possible time frame.
- The panel on the ‘Economy and Welfare’ is headed by Economic Affairs Secretary Atanu Chakraborty. The team has been tasked to address the concerns of various sectors, including both formal and informal segments of the economy.
- Two other working groups are constituted under the leadership of NITI Aayog member V K Paul and Environment Secretary C K Mishra. The committee will work on preparedness for a medical emergency, seamless supply of medicine, medical equipment, and hospital availability.
- The committee will also focus on research and development in the medical field.
- The committee has been directed to submit the result in a weeks time.
Source : the hindu
PM – CARES Fund
Context :
The government has set up the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM-CARES Fund) to deal with any kind of emergency or distress situation like posed by the COVID-19 pandemic.
This Fund has been set up owing to a number of requests made by the people to support the government in the wake of the COVID-19 emergency.
Key Points :
- About the Fund
- The Fund is a public charitable trust with the Prime Minister as its Chairman. Other Members include Defence Minister, Home Minister and Finance Minister.
- The Fund enables micro-donations as a result of which a large number of people will be able to contribute with the smallest of denominations.
- The Fund will strengthen disaster management capacities and encourage research on protecting citizens.
- Contribution to PM – CARES Fund will Qualify as CSR Expenditure
- The Ministry of Corporate Affairs has clarified that contributions by companies towards the PM-CARES Fund will count towards mandatory Corporate Social Responsibility (CSR) expenditure.
- Under the Companies Act, 2013, companies with a minimum net worth of Rs 500 crore or turnover of Rs 1,000 crore, or net profit of Rs 5 crore are required to spend at least 2% of their average profit for the previous three years on CSR activities every year.
- The term “Corporate Social Responsibility” in general can be referred to as a corporate initiative to assess and take responsibility for the company’s effects on the environment and impact on social welfare.
- Existing Similar Fund: Prime Minister’s National Relief Fund (PMNRF)
- This fund was instituted in 1948 by then Prime Minister Jawaharlal Nehru, to assist displaced persons from Pakistan. The fund is currently used primarily to tackle natural calamities like floods, cyclones and earthquakes. The fund is also used to help with medical treatment like kidney transplantation, cancer treatment and acid attack.
- The fund consists entirely of public contributions and does not get any budgetary support. It accepts voluntary contributions from Individuals, Organizations, Trusts, Companies and Institutions etc.
- The corpus of the fund is also invested in various forms with scheduled commercial banks and other agencies. Disbursements are made with the approval of the Prime Minister.
- The fund is recognized as a Trust under the Income Tax Act and the same is managed by the Prime Minister or multiple delegates for national causes.
- Contributions towards PMNRF are notified for 100% deduction from taxable income under section 80(G) of the Income Tax Act, 1961.
Source : the hindu
Convalescent plasma therapy
Context :
As the proportion of patients infected with COVID-19 continues to rise in the United States, the Food and Drug Administration is facilitating access to COVID-19 convalescent plasma for use in patients with serious or immediately life-threatening COVID-19 infections.
Why was this necessary :
While clinical trials are underway to evaluate the safety and efficacy of administering convalescent plasma to patients with COVID-19, the FDA is granting clinicians permission for use of investigational convalescent plasma under single-patient emergency Investigational New Drug Applications (INDs), since no known cure exists and a vaccine is more than 1 year away from becoming available.
What is Convalescent plasma therapy :
It seeks to make use of the antibodies developed in the recovered patient against the coronavirus.
The whole blood or plasma from such people is taken, and the plasma is then injected in critically ill patients so that the antibodies are transferred and boost their fight against the virus.
WHO guidelines :
WHO guidelines in 2014 mandate a donor’s permission before extracting plasma. Plasma from only recovered patients must be taken, and donation must be done from people not infected with HIV, hepatitis, syphilis, or any infectious disease. If whole blood is collected, the plasma is separated by sedimentation or centrifugation, then injected in the patient. If plasma needs to be collected again from the same person, it must be done after 12 weeks of the first donation for males and 16 weeks for females, the WHO guidelines state.