IRDAI mandates KYC starting from January 1, 2023
Current Context: Starting January 1, 2023, all new insurance policies—regardless of their premiums—must comply with Know Your Customer (KYC) regulations, according to the Insurance Regulatory and Development Authority of India (IRDAI).
Key Highlights
- All forms of insurance, including life, general, and health insurance, are subject to this rule.
- Currently, purchasing non-life or general insurance plans like health insurance, auto insurance, and travel insurance does not require KYC documentation.
- The time limit will be two years for "low-risk" policyholders and one year for all other customers, including "high-risk" customers, for the insurers to obtain the KYC papers from existing clients.
- Currently, customers must only present their PAN (Permanent Account Number) card and Aadhar at the time of a health insurance claim, especially if the claim amount exceeds Rs 1 lakh.
- Until recently, customers who buy new general insurance products have been free to choose whether or not to share their KYC documents.
- Insurance Regulatory and Development Authority of India (IRDAI):
- Chairperson – Debasish Panda
- Headquarters – Hyderabad, Telangana
- Establishment – 1999 (Incorporated on 1st April 2000)
IISc will serve as the Secretariat for G20 science working group
Current Context: The G20 summit's Science 20 (S20) working committee on science has selected the Indian Institute of Science (IISc) in Bengaluru as its secretariat.
Key Points
- The Science 20 (S20) 2023 will work towards resolving common global-level challenges like poverty
- Science 20 [S20]
- S20 will be crucial in unifying G20 member countries' development initiatives and addressing global issues like poverty. The S20 summit is a reflection of India's aspirations to chart a new course for development.
- The theme of the S20 2023 is “Disruptive Science for Innovative and Sustainable Develop”.
- It will focus on mainly three important issues. These three issues will be reviewed at conferences that take place in Agartala, Lakshadweep, and Bhopal in 2023.
- Universal Holistic Health
- Clean Energy for Green Future
- Connecting Science to Society and Culture
- In addition to the discussion, there will be a summit meeting in Coimbatore, Tamil Nadu, and an inaugural conference in Puducherry. The S20 summit, which will be held in Coimbatore next year, will bring together all the science ministers from the G20 countries.
- G20:
- The Group of Twenty (G20) is the top international economic cooperation body, made up of the European Union and 19 other nations (EU).
- From December 1, 2022, to November 30, 2023, India will be the G20's president.
- The G20 presidency of India will be centered on the theme of "One Earth One Family," or “Vasudhaiva Kutumbakam.”
Stock exchanges to set up an Investor Risk Reduction Access (IRRA) platform
Current Context: The Securities and Exchanges Board of India (SEBI) has ordered stock exchanges to establish an Investor Risk Reduction Access (IRRA) platform.
Key Facts
- There are more instances of system errors among trading participants as a result of the securities market's increasing reliance on technology, some of which have caused the disruption of trading services. In these situations, investors who hold open positions run the risk of being unable to close them, especially when the markets are volatile.
- Investor Risk Reduction Access (IRRA) platform:
- The stock exchanges will work together to create the Investor Risk Reduction Access (IRRA) platform, which would let investors close out their positions or revoke pending orders in the event that the trading members' services are interrupted. Trading members are those who conduct transactions both on their own behalf and on behalf of their customers.
- The new SEBI circular states that in the event of technical difficulties that could interrupt the trading services, the trading members may seek the enablement of the IRRA service.
- The trading members can request the enabling of the IRRA service in the event that they encounter technical issues that could interrupt the trading services, per the new SEBI circular.
- When a request is made in this respect and the trading system is revived, the SEBI also urged the stock exchanges to set up a comprehensive framework to assist the reverse migration from the IRRA system to the trading member's trading system.
- By October 1, 2023, the stock exchanges and clearing companies must make the IRRA platform operational per a request from the SEBI.
- SEBI (The Securities and Exchange Board of India)
- Founded: 1988 and statutory power in 1992 through SEBI Act, 1992
- Headquarters: Mumbai, Maharashtra
- Chairman: Madhabi Puri Buch
Legendary Brazilian footballer and World Cup winner Pelé passed away
Current Context: Former Brazilian footballer Pelé, real name Edson Arantes do Nascimento, died at the age of 82 in the State of São Paulo, Brazil. Pelé won the FIFA (Fédération Internationale de Football Association) World Cup three times.
Details
- He was nicknamed O Rei (The King) and fondly known as “The King of Football”.
- The city of Tres Coracoes in the Brazilian state of Minas Gerais is where Pelé was born as "Edson Arantes do Nascimento." He began playing football when he was 15 years old, and at age 16, he was a member of the Brazil National Team.
- With 77 goals scored in 92 appearances, he holds the distinction as the Brazilian national football team's all-time leading scorer.
- In the history of football, he scored the most goals. In 1,366 games, he scored 1,283 goals overall.
- He is the first male football player to have won three FIFA World Cups throughout his international career, which spanned 1958, 1962, and 1970.
- Pelé was named minister of sports by Fernando Cardoso, who was Brazil's president at the time, in January 1995.
- Pelé pushed to hold Brazilian professional clubs accountable for their business practices, and as a result, Pelé's Law, as it was known, was approved in 1998.
- A Brazilian statute known as the "Pelé law" mandated that clubs become taxable for-profit organizations and post balance sheets. Before signing a professional contract, it stipulated that players had to be 20 years old, and it granted them the right to free agency after two years (instead of after age 32).
Metro raising Rs 3,586 crore for Phase II from ADB and EIB
Current Context: For the second phase of the metro project in Nagpur, the Mahametro Corporation has finalized its financial arrangement and secured a loan of Rs. 3,586 crores from the Asian Development Bank (ADB) and the European Investment Bank (EIB).
About
- The project's initial phase was sponsored by the French AFD and the German KFW, totaling about 630 million Euros.
- ADB would provide $200 million in USD, while the EIB would provide about 239 million Euros for the project.
- A total of Rs 15,388 crore would be invested as a result of phases I and II combined. The project’s second phase will cost around Rs. 6,700 crores, of which Rs. 3,100 crores will come from equity contributions from the federal and state governments.
- Nagpur Metro Phase- II
- The project's Phase II will encompass a total of 43.8 km by extending the four existing Phase I corridors. By 2026, the second phase will be finished.
- The 43.8 km long corridor will reach Hingna in the west, Transport Nagar (Kapsi) in the east, Butibori MIDC in the south, and Kanhan in the north.
- About Asian Development Bank (ADB):
- President - Masatsugu Asakawa
- Establishment – 1966
- Headquarters – Mandaluyong City, Metro Manila, Philippines
- Members – 68 members
RBI launched UTKARSH 2.0
Current Context: The Reserve Bank of India has started the second phase of its plan to improve regulatory and supervisory systems, called Utkarsh 2.0.
Highlights
- Utkarsh 2.0 builds upon the previous phase, Utkarsh 2022, which began in July 2019 and covered the period through 2022. The new phase, which will run from 2023 to 2025, aims to improve the effectiveness of the Reserve Bank of India's statutory and other duties, increase its importance and relevance nationally and internationally, and enhance its internal governance, infrastructure, and human resources through six vision statements.
- The six vision statements of Utkarsh 2.0 include:
- Excellence in performing statutory and other functions: This goal aims to improve the effectiveness of the Reserve Bank of India's duties in serving the needs of the Indian people and economy.
- The strengthened trust of citizens and institutions in the Reserve Bank of India: This goal aims to increase trust in the Reserve Bank of India, which is essential for the bank to carry out its mandate effectively.
- Enhanced relevance and significance in national and global roles: This goal aims to increase the importance and relevance of the Reserve Bank of India both nationally and globally in order to better contribute to the stability and development of the Indian economy.
- Transparent, accountable, and ethics-driven internal governance: This goal focuses on improving the Reserve Bank of India's internal governance by making it more transparent, accountable, and guided by strong ethical principles.
- Best-in-class and environment-friendly digital and physical infrastructure: This goal aims to improve the Reserve Bank of India's digital and physical infrastructure by making it top-quality and environmentally friendly.
- Innovative, dynamic, and skilled human resources: This goal aims to improve the quality and capabilities of the Reserve Bank of India's workforce by making them more innovative, dynamic, and skilled.
- The Reserve Bank of India places significant value on its medium-term strategy and regularly assesses its implementation and progress through a sub-committee of its Central Board. This helps the bank stay on track in achieving the goals set out in Utkarsh 2.0 and allows it to adapt to any changes that may occur.
This digest is not complete. Read the complete digest on the General Awareness Course.
