Daily Current Affairs : 7-October-2023
In a digital age where technology has become an integral part of our lives, REC Limited, a ‘Maharatna’ company under the Ministry of Power, Government of India, has taken a significant step towards simplifying the investment process for its current and prospective investors. The company has recently launched a mobile application named ‘SUGAM REC,’ designed exclusively for individuals interested in REC’s 54EC Capital Gain Tax Exemption Bonds. This innovative app aims to provide investors with comprehensive information about their investments in these bonds, making financial management more accessible and convenient.
Understanding 54EC Bonds
Section 54EC Bonds: Before delving into the details of ‘SUGAM REC,’ let’s briefly understand what Section 54EC Bonds are. These bonds are a type of fixed income financial instrument that offers tax exemption on capital gains to investors under Section 54EC of the Income Tax Act. Capital gain is the profit one earns when selling an asset such as stocks, bonds, or real estate, and it occurs when the selling price of the asset exceeds its purchase price.
Introducing REC Limited
About REC Limited: REC Limited, formerly known as Rural Electrification Corporation Limited, is a significant player in the financial sector, registered with the Reserve Bank of India (RBI) as a non-banking finance company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC). Established in 1969 during a period of severe drought and famine in India, its primary mission was to provide electricity for agricultural pump-sets, reducing the dependency on monsoons.
Mandate and Schemes: REC’s core mandate involves providing long-term loans and financing solutions to various entities, including state governments, central agencies, and private companies, for the development of power and non-power infrastructure projects in India. The company has been involved in managing schemes like Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme, and the Revamped Distribution Sector Scheme (RDSS) in certain states.
Bodies under REC: REC also oversees subsidiary entities like REC Power Development and Consultancy Limited (RECPDCL), which offers consultancy services in the power sector, and REC Institute of Power Management & Training (RECIPMT), a training institute established in Hyderabad in 1979.
Introducing ‘SUGAM REC’ Mobile App
Accessible Investment Information: The ‘SUGAM REC’ mobile app is a groundbreaking initiative that allows investors to access vital information about their investments in REC’s 54EC Bonds with ease. Let’s explore some of its key features:
- E-Bond Certificates: Investors can conveniently download their e-bond certificates through the app, eliminating the need for physical documentation.
- Fresh Investments: Interested individuals can apply for fresh investments directly through the app, simplifying the investment process.
- KYC Updates: The app also offers access to essential forms related to updating Know Your Customer (KYC) details, making it effortless for investors to keep their information up to date.
- Investor Support: In addition to these features, investors can connect with REC’s Investor Cell through various channels, including calls, emails, and WhatsApp, for any assistance or inquiries they may have.
Important Points:
- Launched by REC Limited: A ‘Maharatna’ company under the Ministry of Power, Government of India.
- Purpose: Designed exclusively for investors interested in REC’s 54EC Capital Gain Tax Exemption Bonds.
- Functionality: Provides comprehensive details about investments, simplifying financial management.
- Understanding 54EC Bonds:
- Definition: Fixed income financial instruments offering tax exemption on capital gains under Section 54EC of the Income Tax Act.
- Capital Gain: Profit earned from selling assets like stocks, bonds, or real estate when the selling price exceeds the purchase price.
- Introduction to REC Limited:
- Background: Established in 1969 during a period of severe drought and famine in India to provide electricity for agricultural pump-sets, reducing dependency on monsoons.
- Governance: Registered with RBI as a non-banking finance company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC).
- Mandate: Provides long-term loans and financing solutions for the development of power and non-power infrastructure projects in India.
- Managed Schemes: Includes initiatives like Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme, and Revamped Distribution Sector Scheme (RDSS).
- SUGAM REC Mobile App Features:
- E-Bond Certificates: Investors can download e-bond certificates digitally, eliminating the need for physical documentation.
- Fresh Investments: Individuals can apply for new investments directly through the app, simplifying the investment process.
- KYC Updates: Access to essential forms for updating Know Your Customer (KYC) details, ensuring investor information is current.
- Investor Support: Offers multiple communication channels, including calls, emails, and WhatsApp, for investor inquiries and assistance.
Why In News
REC Limited has recently unveiled a cutting-edge mobile application called ‘SUGAM REC’. This innovative app not only streamlines the user experience but also offers a range of features designed to enhance accessibility and efficiency. With its user-friendly interface and robust functionalities, ‘SUGAM REC’ stands as a testament to REC Limited’s commitment to technological advancement and customer satisfaction, making it a valuable tool for users in various sectors.
MCQs about Innovative SUGAM REC App
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What is the primary purpose of the SUGAM REC mobile app launched by REC Limited?
A. To provide agricultural subsidies
B. To offer tax exemptions on real estate investments
C. To simplify investment management for REC’s 54EC Capital Gain Tax Exemption Bonds
D. To facilitate online shopping for REC products
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What does Section 54EC of the Income Tax Act provide tax exemption on?
A. Rental income
B. Capital gains from investments in stocks
C. Capital gains from investments in REC’s 54EC Bonds
D. Dividends from mutual funds
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What is REC Limited’s core mandate?
A. Providing short-term loans for agricultural development
B. Offering consultancy services in the healthcare sector
C. Providing long-term loans and financing for power and non-power infrastructure projects
D. Managing government pension schemes
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What communication channels are available for investors to connect with REC’s Investor Cell through the SUGAM REC app?
A. Fax and Telegram
B. Email, WhatsApp, and calls
C. Postal mail and carrier pigeons
D. Social media platforms
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