Following the current events and news in the area of Economic is very very important for the general studies paper in the UPSC exam. In recent times questions are set on only those topics that have made news. Regular study of Economics from NCERT books or otherwise is no longer required. The idea is to follow the current affairs news related to Economics and understand the Economics behind those issues. This is true for all levels of teh IAS exam - prelims, mains and also the interview.
CAIT: It refers to Confederation of All India Traders. CAIT is an apex body of trading community of India comprising of prominent Trade Bodies of different States and having an access to more than 20 thousands such Trade Federations, Associations, Chambers across the Country. It was founded in the year 1990 to consolidate the trading community of the Country which is though self-organized but yet is classified as unorganized and to protect their interest. The trading community consists of traders, small and medium enterprises, self-employed persons and Professionals which are more than 5 crores in unorganized sector providing employment to more than 22 crore people in India. The current CAIT National President is BC Bhartia.
Recently, CAIT has announced that it will launch a national e-commerce marketplace 'bharatmarket' soon for all retail traders. It will launch bharatmarket in collaboration with several technology partners. The initiative is to be guided and supported by the Ministry of Commerce and Industry.
The main objective of this the initiative is that it will integrate capabilities of various technology companies to provide end-to-end services in the logistics and supply chains from manufacturers to end consumers, including deliveries at home. The ‘Bharat market’ e-commerce portal will include participation from retailers across the nation. It aims to bring at least 95 percent of the retail traders onboard, who would exclusively run the portal.
The traders body seeks to enroll about one crore retailers on this e-marketplace in 2020 and make it the world’s largest and most-unique e-marketplace ever.
e-NAM platform: National Agriculture Market or eNAM is a pan-India electronic trading portal which networks the existing APMC mandis to create a unified national market for agricultural commodities. The e-NAM was launched on 14 April 2016 across India by Prime Minister of India, Narendra Modi. Small Farmers Agribusiness Consortium (SFAC) is the lead agency for implementing eNAM under the aegis of Ministry of Agriculture and Farmers’ Welfare, Government of India. The main objective of the portal is to promote uniformity in agriculture marketing by streamlining of procedures across the integrated markets, removing information asymmetry between buyers and sellers and promoting real time price discovery based on actual demand and supply.
Recently, the Union Minister of Agriculture and Farmers Welfare, Narendra Singh Tomar has added 200 new mandis to the e-National Agriculture Market(e-NAM) platform. With this addition now the total number of e-NAM mandis in the country will be 785 and by the end of May 2020 1000 more mandis are expected to join the e-NAMplatform.
The newly 200 mandis includes 94 Mandis of Rajasthan, 27 Mandis of Tamil Nadu, 25 Mandis each from Uttar Pradesh and Gujarat, 16 Mandis of Odisha, 11 Mandis of Andhra Pradesh and two Mandis of Karnataka. Karnataka has been added to the list of e-NAM states for the first time.
The market aims to facilitate trade beyond mandi and state borders for farmers, traders and buyers with online trading in commodities. It is expected that the Indian Prime Minister Narender Modi's vision of using technology for the benefit of farmers will soon be realized.
Ministry of Finance: The Ministry of Finance is the apex controlling authority of the Indian Revenue Service, Indian Economic Service, Indian Cost Accounts Service and Indian Civil Accounts Service. It is an important ministry within the Government of India (GoI) concerned with the economy of India, serving as the Indian Treasury Department. It was founded on 29 October 1946. The ministry of finance is charged with the task of raising the resources for the overall expenditure of the Government of India and to see to the desirability of the demands of other departments, taking into consideration the interest of taxpayers. It is headquartered in New Delhi. The current Minister of Finance is Nirmala Sitharaman.
Recently, Union Minister for Finance & Corporate Affairs, Nirmala Sitaraman launched INR-USD (Rupee-Dollar) Futures and Options contracts. They were launched on the two International Exchanges, BSE’s India INX and NSE’s NSE-IFSC, at GIFT International Financial Services Centre in Gandhinagar through video conference.
A significant market share in financial services related to India has moved to other international financial centres in the last decade so this move will help in increasing economic activity and employment in India. The contracts have also been launched so that the world-class business environment at the GIFT IFSC will help to bring in larger global participation.
Future and Options: These are financial products which allow the investors to buy or sell shares at a given price on a specific date. Futures contract gives the right to the buyer to buy or sell the shares on a specific future date while Options Contract gives the right to buy or sell the shares at any time till the validity of the contract exists.
There are 2 types of options i.e. Call Option and Put Option. The Call Option is used to buy a stock at the strike price while the Put Option is used to sell a stock at a specific price.
RBI: It stands for the Reserve Bank of India. The RBI is India's central bank, which controls the issue and supply of the Indian rupee. It carries out India's monetary policy and exercises supervision and control over banks and non-banking finance companies in India. RBI was set up in 1935 under the Reserve Bank of India Act, 1934. It is headquartered in Mumbai. RBI plays an important part in the Development Strategy of the Government of India. The current Governor of RBI is Shaktikanta Das.
Recently, RBI announced another 9 additional measures for strengthening the Economy in the uncertain times ushered in by the COVID-19 pandemic. The earlier sets of measures were announced by RBI on 17 April 2020.
The recent 9 list of measures announced by RBI are:
1. Repo rate reduced by 40 basis points from 4.4% to 4.0%. The reverse repo rate has been reduced 3.75% to 3.35%. The Marginal Standing Facility rate and the Bank rate have been reduced from 4.65% to 4.25%
2. Measures to ease financial constraints faced by State Governments by allowing the states to borrow more from Consolidated Sinking Fund which is being maintained by state governments as a buffer for repayment of their liabilities.
3. Refinance Facility to SIDBI extended for another 90 days. The RBI on 17 April 2020, had announced a special refinance facility of ₹15,000 crore to SIDBI at RBI’s policy repo rate for a period of 90 days. This facility has now been extended by another 90 days.
4. There is Relaxation of Rules under Voluntary Retention Route (VRR), an investment window provided by RBI to Foreign Portfolio Investors, which provides easier rules in return for a commitment to make higher investments.
5. A line of credit of ₹15,000 crore will be given to the EXIM Bank, for financing India’s foreign trade. The loan facility has been given for a period of 90 days, with a provision to extend it by one year.
6. The maximum credit which banks can extend to a particular corporate group has been increased from 25% to 30% of the bank’s eligible capital base.
7. The time period for import payments against normal imports into India has been extended from 6 months to 12 months from the date of shipment.
8. Exporters can now Avail Bank Loans for Higher Period as the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks to exporters has been increased from the existing one year to fifteen months, for disbursements made up to 31 July 2020.
9. Lending institutions have been allowed to convert the accumulated interest on working capital facilities over the total deferment period of 6 months into a funded interest term loan, to be fully repaid during the course of the current financial year, ending March 31, 2021.
Renewable Energy Business: Recently, the Oil and Natural Gas Corporation Limited (ONGC) and National Thermal Power Corporation Limited (NTPC Ltd.) have signed a MoU to set up a Joint Venture Company for Renewable Energy business.
As per the MoU, ONGC and NTPC will explore the setting up of offshore wind and other Renewable Energy Projects in India and overseas. They shall also explore opportunities in the fields of sustainability, storage, E-mobility and ESG (Environmental, Social and Governance) compliant projects. The MoU will enable both companies to accelerate their footprint in Renewable Energy.
NTPC Limited: It refers to National Thermal Power Corporation Limited. NTPC Ltd. is an Indian Public Sector Undertaking under the Ministry of Power, engaged in the business of generation of electricity and allied activities. It is a company founded in 1975 which was incorporated under the Companies Act 1956 and is promoted by the Government of India. It is headquartered in New Delhi. The main purpose of NTPC is electricity generation and distribution natural gas exploration, production, transportation and distribution. The current Chairman and MD of NTPC Ltd: is Gurdeep Singh.
ONGC: It refers to the Oil and Natural Gas Corporation Limited. ONGC is a state-owned enterprise of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas. It is an Indian Multinational Crude Oil and Gas Corporation. It was ranked as the largest profit making PSU in India. It is ranked 7th among the Top 250 Global Energy Companies by Platts. ONGC was founded on 14 August 1956 by Government of India (GoI). It is headquartered in New Delhi. The current CEO of ONGC is Shashi Shanker.
Invest India: It is India’s national Investment Promotion & Facilitation Agency. The agency functions under DPIIT, Ministry of Commerce and Industry, GoI. It was founded in 2009. It works with several states/UTs of India to build capacity and bring the best global practices in investment targeting, promotion and facilitation areas. The current Managing Director and CEO of Invest India is Deepak Bagla.
Recently, Invest India launched "The Invest India Business Immunity Platform" (BIP). It has been launched under the Ministry of Commerce and Industry. The platform is hosted on the Invest India website. It has been launched to assist businesses and investors in getting real-time updates on India’s active response to COVID-19. The BIP is the active platform for business issue redressal, operating 24/7, with a team of dedicated sector experts and responding to queries at the earliest.
Invest India has teamed up with Small Industries Development Bank of India (SIDBI) for responding and resolving queries for MSMEs. The platform, through the partnership, will to provide all the information they require while staying in the comfort of their homes due to the lockdown in the country.
Karur Vysya Bank: Karur Vysya Bank (KVB) is a Scheduled Commercial Bank in India. The KVB bank operates in the treasury, corporate/ wholesale banking and retail banking segments. It has completed 100 years of operation and is one of the leading banks in India. It was founded in 1916. It is headquartered in Karur in Tamil Nadu. It was set up by M. A. Venkatarama Chettiar and Athi Krishna Chettiar. The current Chairman and MD & CEO are Mr. N. S. Srinath and Mr. P. R. Seshadri respectively.
Recently, the KVB launched India's 1st prepaid card 'Enkasu' to reduce cash transactions. It is a prepaid card. The Enkasu prepaid card works on Near Field Communication Technology and this prepaid card will be very useful to Merchants & Customers. The users can easily recharge their card through KVB DLite app, NEFT, UPI or through any KVB branches.
Labour and Employment Ministry: The Ministry of Labour & Employment is one of the oldest and most important Ministries of the Government of India. It is India's federal ministry which is responsible to protect and safeguard the interest of workers in general and the poor deprived and disadvantaged sections of the society. It is headquartered in New Delhi. The Minister of Labour and Employment is Shri Santosh Kumar Gangwar.
Recently, the Labour and Employment Ministry has amended the EPF Scheme 1952. This step has been taken due to the Coronovirus outbreak (Covid-19). The Ministry has issued a notification in this regard.
According to the notification withdrawal of non-refundable advance by EPF members is allowed. Those who are members of the EPF Scheme 1952 are eligible for the benefits of non-refundable advance. The notification permits withdrawal not exceeding the basic wages and dearness allowance for three months or upto 75% of the amount standing to member's credit in the EPF account. Those who are members of the EPF Scheme 1952 are eligible for the benefits of non-refundable advance.
EPFO: It refers to Employees' Provident Fund Organisation. EFPO is a central government organization. It was founded on 4th March 1952. It is under the control of the Ministry of Labour and Employment, GoI. The current Commissioner of EFPO is Sunil Barthwal.
PNB: It refers to Punjab National Bank. PNB is the second-largest public sector bank of India. It is a Banking and Financial service bank owned by Government of India. It's headquartered in New Delhi, India. The bank was founded in 1894 in Lahore, Pakistan. The current MD & CEO of PNB is S. S. Mallikarjuna Rao.
Recently, Punjab National Bank launched the New logo. PNB launched its logo ahead of its merger with the United Bank of India (UBI) and the Oriental Bank of Commerce (OBC) from 1st April 2020. The new logo contains signages of all the three PSU banks- Punjab National Bnk (PNB), United Bank of India (UBI) and the Oriental Bank of Commerce (OBC).
SIDBI: It refers to Small Industrial Development Bank of India. SIDBI is a development financial institution in India. It was founded on 2nd April 199. It is headquartered in Lucknow in Uttar Pradesh (UP), India. The current Chairman and Managing Director of SIDBI is Mohammad Mustafa.
Recently, SIDBI announced that it will provide emergency working capital to Small and Medium Enterprises (MSMEs) of Rs 1 crore.
The SIDBI Assistance to Facilitate Emergency response against Corona virus - SAFE PLUS was launched by SIDBI on March 26, 2020. Under SAFE PLUS initiative, financial assistance will be provided to MSMEs engaged in the manufacturing of hand sanitizers, masks, gloves, headgear, bodysuits, shoe-covers, ventilators, etc.
SAFE plus will be offered collateral free and distributed within 48 hours. The loans will be offered at an interest rate of 5%. Along with the SAFE plus initiative, the bank has also increased the loans from 50 lakh rupees to two crore rupees.
MHA: It refers to the Union Ministry of Home Affairs. MHA is the head of the Ministry of Home Affairs of the Government of India (GoI). It is one of the senior-most officers in the Union Cabinet. The chief responsibility of the Home Minister is the maintenance of India's internal security. The country's large police force comes under its jurisdiction. It is also mainly responsible for the maintenance of internal security and domestic policy. The Home Ministry is currently headed by Union Minister of Home Affairs Amit Shah.
Recently, The Union Ministry of Home Affairs (MHA) has exempted the operations of Fishing (Marine) and Aquaculture Industry from the lockdown imposed to prevent the spread of coronavirus. The operations such as harvesting, packaging, processing, cold chain, hatcheries, commercial aquaria, movement of shrimp and sale and marketing have been exempted from lockdown. India’s Ministry of Home Affairs said that the fishing and aquaculture could continue to operate as normal, as it would be the responsibility of the head of the organization or establishment to ensure compliance of social distancing and proper hygiene practices.
e-NAM: It refers to the Electronic- National Agriculture Market. eNAM is an online trading portal for agricultural products in India. This online trading portal was launched by Prime Minister Narendra Modi in 21 mandis on 14 April 2016. It functions under the Ministry of Agriculture & Farmers Welfare, Government of India (GoI). The main aim of the portal is to realize the vision of One Nation One Market for agricultural produce. Farmers can register on the e-NAM portal for free and upload their produce for sale online to traders across all e-NAM mandis. E-NAM is managed by the Small Farmers Agribusiness Consortium (SFAC). At present there are more than 450 APMCs listed under E-NAM for trade.
Recently, the pan-India Agriculture trading portal e-NAM completed four years of implementation. It helped in realizing the vision of One Nation One Market for agri produce. The portal is being expanded to cover additional 415 mandis which will take the total number of e-NAM mandis to 1000 soon. Over 1.66 crore farmers and 1.28 Lakh traders are currently registered on the platform. The online platform seeks to reform the agriculture market in India.
During this current Covid-19 lockdown, Agriculture Ministry has initiated several steps to decongest wholesale markets and to make supply chain agile.
RBI: It refers to the Reserve Bank of India. The RBI is India's central bank, which controls the issue and supply of the Indian rupee. It carries out India's monetary policy and exercises supervision and control over banks and non-banking finance companies in India. RBI was set up in 1935 under the Reserve Bank of India Act, 1934. It is headquartered in Mumbai. RBI plays an important part in the Development Strategy of the Government of India. The current Governor of RBI is Shaktikanta Das.
Recently, the Reserve Bank of India launched its 49th round of order books, inventories and capacity utilization survey (OBICUS) of the manufacturing sector. This is the survey for the period of January to March 2020.
OBICUS Survey: The full form of OBICUS is Order Books, Inventories and Capacity Utilization survey. OBICUS survey is being conducted by RBI on a quarterly basis (4 times a year) since 2008. Under the survey, the companies of manufacturing sector are asked to volunteer information on their inventory level. It provides an insight into demands of the Indian manufacturing sector.
The information gathered in the survey consists of quantitative data, pending orders, work in progress, backlog of orders and finished goods. The data is provided item-wise. The survey covers 2,500 companies both in public and private sector.
The survey is helpful in providing valuable information required for the formulation of monetary policy and the data collected during the survey is very confidential.
GoI: The Government of India has amemded its Foreign Direct Investment (FDI) policy. The amendment has been made to the Consolidated FDI policy, 2017, with an aim towards curbing opportunistic takeovers and acquisitions of Indian companies due to the current COVID-19 pandemic.
According to new revised policy, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route. However, entities in Bangladesh and Pakistan are required to obtain government permission.
The revised policy also states that in case of any change or transfer in ownership of an Indian entity arising because of FDIs from such countries would also require government approval.
The above decision will take effect from the date of FEMA notification.
Foreign direct investment (FDI) in India is a major monetary source for economic development in India. Foreign companies invest directly in fast growing private Indian businesses to take benefits of cheaper wages and changing business environment of India. Economic liberalisation started in India in wake of the 1991 economic crisis and since then FDI has steadily increased in India, which subsequently generated more than one crore (10 million) jobs
Facebook: It is an American online social media and social networking service technology company. It is based in Menlo Park, California. It was founded by Mark Zuckerberg, Andrew McCollum, Eduardo Saverin, Dustin Moskovitz, Chris Hughes. It was founded in February 2004 in Cambridge, Massachusetts, United States. It is headquartered in Menlo Park, California, US. The current CEO of Facebook is Mark Zuckerberg.
Recently, the Tech Giant Facebook invested an astounding amount of $5.7 billion (Rs 43,574 crore) in Reliance Jio thereby buying 9.9 percent stake in the company. Reliance Jio is the telecom unit of Reliance Industries Ltd (RIL). The Jio deal is beneficial for both the companies as it will help reduce RIL’s debt burden while it will give Facebook a strong foothold in the Indian market, where its WhatsApp chat service is having 40 crore users.
This acquisition has now put the value of Jio Platforms Ltd (JPL) at 4.62 lakh crore ($65.95 billion). JPL is the parent of phone and data unit Reliance Jio Infocomm. The Jio network not only includes calling and data services but also includes various other services such as the JioSaavan, Jiocinema , Jiomart amongst others.
XVFC: It refers to the 15th Finance Commission. The XVFC recently had online meetings with its Advisory Council on 23rd and 24th April 2020. The meeting was chaired by XVFC Chairman N. K. Singh. It was attended by all members and senior officials of the Commission.
The Members of the Advisory Council discussed implications of the COVID-19 pandemic on GDP growth. The members also discussed the possible assumptions for tax buoyancy and revenue in the current and next financial year. All the members unanimously suggested that the projections of real GDP growth made before March 2020 needs to be relooked into entirely, and, revised downwards considerably.
RBI: It refers to the Reserve Bank of India. The RBI is India's central bank, which controls the issue and supply of the Indian rupee. It carries out India's monetary policy and exercises supervision and control over banks and non-banking finance companies in India. RBI was set up in 1935 under the Reserve Bank of India Act, 1934. It is headquartered in Mumbai. RBI plays an important part in the Development Strategy of the Government of India. The current Governor of RBI is Shaktikanta Das.
Recently, RBl has allowed banks to issue electronic cards to natural persons having Overdraft Accounts that are only in the nature of personal loan without any specific end-use restrictions.
The card are to be issued for a period not exceeding the validity of the facility and should also be subject to the usual rights of the banks as lenders and it is allowed to be used only for domestic transactions.
Previously, as per the Central bank's direction, the banks were allowed to issue debit cards to customers having Saving Bank/Current Accounts but not to cash credit/loan, account holders.
GoI: The Government of India (GoI) recently, declared banking industry as public utility service till 21st October 2020. It has been declared as public utility service under the provisions of the Industrial Disputes Act. The order has been issued to prevent strikes by employees or officers during the operation of the law starting from 21 April. The order has been passed by the labour ministry for 6 months amid the lockdown imposed due to Covid-19 pandemic which has significantly impacted economic activities. The main objective of the Government behind this order is to ensure protection to the customers amid the economic crisis in the wake of the coronavirus pandemic.
Industrial Disputes Act, 1947: The Industrial Disputes Act, 1947 extends to the whole of India. This Act regulates Indian labour laws. It was enacted by the Central Legislative Assembly on 11th March 1947 and it came into force 1 April 1947. The main objective of the act is to secure harmony and peace in the work culture of Indian Industries. The act applies only to organized sector.
LIDEA: It is an interactive AI Powered ChatBot solution. Birla Estates recently launched “LIDEA” for its customers on WhatsApp. The solution is aimed at providing information of its projects to users who are evaluating residential developments of Birla Estates. LIDEA which is powered with artificial intelligence, will answer the queries of the users regarding Birla Estates developments. It will also offer features like viewing location, configurations, amenities, virtual tours and accepting site visit requests. The launch of the ChatBot on WhatsApp adds to the digital experience of Birla Alokya, where the homes feature voice based automation and homebuyers can visualise their future home using an immersive Virtual Reality experience.
GoI: Recently, the Government of India (GoI) launched SPICe+, a web form that integrates 10 services of various ministries and departments. This will help boost Ease of Doing Business in India, especially for a startup. It was launched by the Secretary of Ministry of Corporate Affairs (MCA) Injeti Srinivas.
SPICE+: It is an acronym for Simplified Performa for Incorporating Company Electronically Plus. This web form provides 10 services thereby saving time, cost for starting a business in India. The 10 services that it provides are DIN allotment, issue of PAN, TAN, EPFO and ESIC registration, opening bank account for a company, allotment of GSTIN, issue of Profession Tax, etc. Out of the ten services it will also provide services of the three Central Government Ministries like Ministry of Corporate Affairs, Ministry of Labour and the Department of Revenue in the Ministry of Finance.
Initiatives such as SPICE+ is necessary to improve India's ranking globally.
Union Cabinet: The Union Cabinet, chaired by the Prime Minister, Narendra Modi has approved the mega consolidation of ten PSBs into four PSBs. the 4 PSBs include the amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank, amalgamation of Syndicate Bank into Canara Bank, amalgamation of Andhra Bank and Corporation Bank into Union Bank of India and amalgamation of Allahabad Bank into Indian Bank. The merger will come into effect from the new financial year 1st April 2020.
Vadhvan Port: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has given its 'in-principle' approval for setting up a Major Port at Vadhavan near Dahanu in Maharashtra. An amount of Rs 65,545 crores has been sanctioned by the Government of India for the project.
The Vadhavan port will be developed on the 'Landlord Model'. A Special Purpose Vehicle (SPV) will be set up to provide the necessary infrastructure to the port.
The SPV will develop the port infrastructure including reclamation, construction of breakwater, besides establishing connectivity to the hinterland. All business activities will be done by private developers under the PPP (private-public partnership) model.
The decision of setting a major port in Vadhavan is because the natural draft at the Vadhavan Port near the coast is about 20 meters. This makes it ideal to handle bigger vessels. The development of the Vadhavan port will house the container ships of 16,000 to 25,000 TEU capacities.
UNCTAD: It refers to the United Nations Conference on Trade, Investment and Development. UNCTAD has issued a warning that global foreign direct investment (FDI) could drop by up to 15% on previous estimates due to the Coronavirus outbreak. The organization has predicted that as the visus spreads there will be further decline in the economic growth. COVID-19 outbreak would significantly drag down global FDI, which is a measure of cross-border private sector investment.
Surat: It is a city in the Indian state of Gujarat. It is known as the textile hub of the nation or the Silk City of India. It is very famous for its cotton mills and Surat Zari Craft. Surat is the biggest centre of MMF (man-made fibre) in India. It is also known for its diamond industry.
Recently, the Surat diamond industry is likely to face a loss of around Rs 8,000 crore in next two months. This is due to a state of emergency is declared in Hong Kong as well as other states of China due to the coronavirus outbreak. Hong Kong is a major business hub for the Surat diamond industry and according to Gems and Jewellery Export Promotion Council (GJEPC) polished diamonds worth around Rs 50,000 crore are exported from Surat to Hong Kong every year. If the situation does not improve then the diamond industry of India will worsen
OIL: It refers to Oil India Limited. OIL, a Navratna PSU, is a fully integrated Exploration & Production (E&P) company in the upstream sector and is the second largest national oil and gas company of India as measured by total proved plus probable oil and natural gas reserves and production in India. Its operational headquarters is in Duliajan, Assam and the main headquarters is in Noida, New Delhi. It was founded in 18 February 1959. The company is a state-owned Navratna under the administrative control of India's Ministry of Petroleum and Natural Gas.
Recently, OIL signed the Crude Oil Sales Agreement (COSA) with Numaligarh Refinery. The agreement was signed by the finance directors of the two companies for purchase and sale of crude oil for a term of five years. The Crude Oil Sales Agreement (COSA) will come in effect from 1st April 2020 to 31st March 2025. The agreement will streamline the sale and purchase transactions of crude oil produced from fields in North East India.
Numaligarh Refinery: It is a joint venture (JV) between Bharat Petroleum (61.65%), Oil India (26%), and Government of Assam (12.35%). It is locate in Morangi, Assam and is owned by Numaligarh Refinery Limited.
Finance Commission: The Finance Commission was established by the President of India in 1951 under Article 280 of the Indian Constitution. It was formed to define the financial relations between the central government of India and the individual state governments. It was founded on 22 November 1951. It is headquartered in New Delhi.
Recently, the Finance Commission Constituted an 8-member committee under Shri N K Singh in order to build a fiscal consolidation road map for the centre and the states.
The first report by the Finance Commission was submitted to the GoI in February 2020. The Commission will submit its final report covering the financial years 2021-22 to 2025-26 by October 30. NK Singh Committee will not only recommend the definition of deficit and debt but will also define contingent liabilities of PSUs.
FC: It refers to the Fiscal Consolidation. FC is a policy adopted by the Government to reduce the deficits. The objective behind the policy is to reduce debt stocks and deficits in the policies that are undertaken by the Government. The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is the best example for the Fiscal Consolidation measure of the Government of India.
SIDBI: It refers to the Small Industries Development Bank of India. SIDBI is a development financial institution in India. It was founded on 2 April 1990 through an Act of Parliament. It is headquartered in Lucknow, Uttar Pradesh. SIDBI also coordinates the functions of institutions engaged in similar activities.
Recently, SIDBI announced its plan to launch Swavalamban Express on 5 June 2020. It seeks to empower budding entrepreneurs under its mission Swavalamban. The aim is to promote budding business aspirants and entrepreneurs. The train is to cover more than 7,000 km in 15 days during which various workshops and programmes are to be organized. The Train is to visit 11 entrepreneurial cities which are Bengaluru, Kolakata, Bhubaneswar, Mumbai, Ahmedabad, Hyderabad, Delhi, Varanasi and Jammu. The train has been launched to fulfil the goal of India of 5 trillion USD by 2024-25.
Indian Railways: Indian Railways is the largest rail network in Asia and the world's second largest has over 70,000 passenger coaches and more than 11,000 locomotives. The First train in India ran between Bombay and Thane on the 16th of April 1853. Indian Railways transports almost 2.5 crore passengers daily.
Recently, the Indian railways launched a high capacity parcel van at Delhi Safdarjung Railway Station. The Parcel van was designed and manufactured in Kapurthala Rail Coach Factory. The Speed of the train’s speed is 130 km per hour. The Indian Railways has launched an exclusive Banana Container train to boost the exports of the fruit.
Agricultural and Processed Food Products Export Development Authority(APEDA), along with State Government of Andhra Pradesh and one of the largest member exporter of banana, dispatched the first shipment of 890 MTs of high quality bananas, loaded in 43 refrigerated containers, from Tadipatri, Anantpur in Andhra Pradesh to Jawaharlal Nehru Port (JNPT) in Mumbai for export to international markets. More than 500 farmers cultivating bananas in more than 1800 hectares have been trained to boost the production and export of the fruit from Anantpur and nearby districts. Indian APEDA with the support of the State Government and exporters aims to provide a good opportunity for India to increase its share in the world trade of banana.
Economic Survey: The Economic Survey is a detailed report card on the economic performance in the year. The Survey brings out the economic trends in the country and facilitates a better appreciation of the mobilization of resources and their allocation in the Union Budget. It analyses the trends in agricultural and industrial production, infrastructure, employment, money supply, prices, exports, imports, foreign exchange reserves and other relevant economic factors that have a bearing on the Budget. It is presented in Parliament ahead of the Budget for the ensuing year.
Recently, the Economic Survey 2019-20 was tabled during the Budget Session of the Parliament on 31 January 2020 by Nirmala Sitharaman, Minister of Finance. The survey was prepared under the Chief Economic Advisor (CEA) Krishnamurthy V Subramanian. The theme for the survey 2020 is "Ethical Wealth Creation". The Survey 2020 focuses on the theme of Wealth Creation, Promotion of pro-business policies, strengthening of trust in the economy. The document outlines strategies for making India a $5 trillion dollar economy by 2024-25. The survey highlighted the fact that 2.62 crore new jobs were created in rural and urban areas between 2011-12 and 2017-18 in the country. The Economic Survey on Friday projected revival of economic growth to 6-6.5 per cent in the next fiscal beginning April 1 but suggested the government to relax the budget deficit target to boost growth from a decade low. For the current fiscal, it projected a GDP growth of 5 per cent, the lowest in 11 years, and worsening job prospects. The Survey emphasized on investment-led growth by focusing on reviving the MSME sector. The Survey 2020 also throws light on new ideas like Thalinomics, Adoption of China model, Trust and others, to boost growth and accelerate wealth creation.
BSE: It refers to Bombay Stock Exchange. It was founded in 9 July 1875. It is headquartered in Mumbai, Maharashtra. It is an Indian stock exchange located at Dalal Street, Mumbai. BSE provides a transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing. The current Chairman of BSE is Vikramajit Sen and the Managing Director and CEO of BSE is Ashish Kumar Chauhan.
Recently, the Bombay Stock Exchange (BSE) has signed a licensing agreement with Intercontinental Exchange (ICE) Futures Europe. Intercontinental Exchange (ICE) Futures Europe is an operator of global exchanges and clearinghouses.
India is one of the largest consumers and importers of crude oil in the world, and Brent crude is highly co-related with the Indian crude oil market. This agreement seeks to serve the needs and interests to the Indian energy commodities space and market participants to access Rupee-dominated Brent benchmark prices. It will also help Indian commodity markets by providing convenient and cost-effective onshore hedging products and enable the price discovery of Brent crude prices in the Indian time zone.
Union Budget: The Union Budget of India also referred to as the Annual Financial Statement in the Article 112 of the Constitution of India, is the annual budget of the Republic of India. The Government presents it on the first day of February so that it could be materialized before the beginning of new financial year in April.
Union Finance Minister Nirmala Sitharaman presented her second and 90th Union Budget of India for 2020-2021 in the Lok Sabha. The Finance Minister unveiled a series of far-reaching reforms, aimed at energizing the Indian economy through a combination of short-term, medium-term, and long term measures. The government has taken some measures towards reaching the target of a $5 trillion economy by the end of 2022.
The Budget introduced several new schemes besides allocating new funds for the already running Government schemes such as PM-Kisan, Ayushman Bharat, Swachh Bharat Mission, and others. The Union Budget 2020-2021 aims to boost incomes and enhance purchasing power.
The Union Budget has been structured on the overall theme of Ease of Living. The three prominant themes around which the budget has been woven are Aspirational India, Economic Development and Caring Society.
1. Aspirational India:
Under this theme, Union Budget 2020-21 with an allocation of Rs. 4,82401 cr focused on the aspects of:-
a. Agriculture, Irrigation, and Rural Development
b. Wellness, Water, and Sanitation Development and
c. Education and Skills Development
So that all sections of the society could seek better standards of living, with access to health, education and better jobs.
2. Economic development:
Under this theme, economic development for all i.e. – is ensuring SabkaSaath, SabkaVikas, SabkaVishwas”. Union Budget 2020-21 allocated a sum of Rs 2,37,604 cr for:-
a. Industry, Commerce and Investment
c. New economy — led by startups and the tech ecosystem.
3. Caring Society:
Under this theme, the main focus was on creating a caring society which is both humane and compassionate a sum of Rs 62,626 cr was allocated.
a. Women & child
b. Social Welfare
c. Culture and Tourism.
d. Environment and Climate Change
The above themes are held together by Corruption free as well as policy-driven good governance and clean and sound financial sector.
The Key Budget Highlights are:-
The income tax rates have been revised.
5% tax for in11come between Rs 2.5-5 lakh
10% tax for income between Rs 5-7.5 lakh as against 20%
15% tax for income between Rs 7.5-10 lakh as against 20%
20% tax for income between Rs 10-12.5 lakh as against 30%
25% tax for income between Rs 12.5-15 lakh as against 30%
30% tax for income above Rs 15 lakh
The Finance Minister said that the income tax rates would be significantly reduced for those who forego reliefs, exemptions.
Rs 690 billion will be spent toward healthcare spending
100 more airports are planned by 2024.
Over 6,000 km of highways in 12 lots will be monetized by 2024.
One major airport will be privatized.
High-speed train between Mumbai and Ahmadabad will be actively pursued.
16-POINT ACTION PLAN FOR FARMERS
According to the Finance Minister, the government is committed to doubling farmers' income by 2022. She proposed to allocate Rs 2.83 lakh crore for agriculture and rural sectors such as irrigation.
Those schemes that encourage manufacturing of mobile phones, electronic equipment and semiconductor packaging will be introduced
Private sector to build Data Centre Parks throughout the country will be encouraged.
80 billion rupees over five years to be provided for quantum technologies and applications and
Milk processing capacity which is to be doubled by 2025.
Insurance cover for bank depositors to be raised to Rs 5 lakh from Rs 1 lakh
5 new smart cities in public-private partnership mode.
Delhi-Mumbai Expressway to be completed by 2023.
100 more airports to be developed by 2024.
Finance Minister Nirmala Sitharaman said that the estimated nominal GDP growth rate for 2020-21 is 10 per cent. She further added that wealth creators would be respected in this country and tax harassment would not be tolerated.
RBI: It refers to Reserve Bank of India. The Reserve Bank of India is India's central bank, which controls the issue and supply of the Indian rupee. RBI is the regulator of entire Banking in India. RBI plays an important part in the Development Strategy of the Government of India. RBI was set up in 1935 in Kolkata under the Reserve Bank of India Act, 1934. It is headquartered in Mumbai. The 25th Governor of RBI is Shaktikant Das.
The Reserve Bank of India (RBI) will conduct the “Financial Literacy Week 2020” from February 10 to 14, 2020.
The theme of the Financial Literacy Week 2020 is “Micro, Small and Medium Enterprises (MSMEs)”.
The Financial Literacy Week 2020 will aim to aware people about the formalization, collateral free loan, discounting of receivables, rehabilitation of stressed units and timely repayment.
Financial Literacy Week (FLW) is being conducted by the Reserve Bank of India (RBI) every year since 2016 to disseminate financial education messages on a particular theme across the country.
South Indian Bank: South Indian Bank Limited is a major private sector bank. It is headquartered at Thrissur in Kerala, India. It was founded in 1929. South Indian Bank MD & CEO os the South Indian Bank is V.G. Mathew.
Recently, South Indian Bank bagged two awards at the Banking Technology 2019 awards. The awards were instituted by the Indian Banks’ Association. This event was held in Indian Bank Association’s 15th Annual Banking Technology Conference, Expo and Awards held in Mumbai, Maharashtra. The South Indian Bank won in the ‘Most Customer-Centric Bank Using Technology’ category and runner up in the ‘Best Payments Initiative’ category amongst small Banks’.
GoI: It refers to the Government of India. GoI will soon release a new one rupee currency note in India. The Union Ministry of Finance notified ‘Printing of One Rupee Currency Notes Rules, 2020’ vide Gazzette Notification G.S.R. 95(E) dated February 7, 2020. “The One Rupee notes shall be printed at the note printing presses for issue under the authority of Government of India for circulation. The notification has several details of one rupee notes to be printed under the authority of the Government of India for circulation. These include details about the colour, design, standard weight, dimensions etc.
History of currency note in India: Currency notes were introduced in India in 1861, and the one-rupee note was introduced by the British on November 30, 1917. According to the Reserve Bank of India’s (RBI) website, the printing of this note was first stopped in 1926 because its printing was costlier than its value. After that, its printing was resumed in 1940 which continued till 1994. It was ragain eintroduced in 2015 after a gap of 22 years.
RBI: It refers to the Reserve Bank of India. RBI recently, launched a National Strategy for Financial Inclusion (2019-24) to include all, particularly poor and underprivileged class, under formal access to finance - a key goal of the government. It is aimed at providing access to formal financial services in an affordable manner. It also aims to promote financial literacy among customers.
The strategy has been formulated by RBI after consultation with Securities Exchange Board of India(SEBI), Pension fund Regulatory and Development Authority of India (PFRDA) and Insurance Regulatory and Development Authority of India (IRDAI). The report has been ratified by Financial Inclusion Advisory Committee (FSDC).
The recommendations made by the committee are:
Universal Access to Financial Services
Access to Livelihood and Skill Development
Providing basic financial services
Financial Literacy and Education
Customer Protection and Grievance Redressal
Every adult registered under Pradhan Mantri Jan Dhan Yojana should be enrolled in pension scheme and insurance scheme.
Thai Mangur: It is also called the foreign Mangur or African Mangur. The walking catfish is a species of freshwater airbreathing catfish native to Southeast Asia and grows 3 feet to 5 feet. It prays on all kinds of life forms found in inland waterbodies except crocodiles. It is a danger to bio-diversity of water bodies and is also highly carcinogenic.
Recently, the Maharashtra Government has launched a special drive to destroy the cultivation centres of the exotic Thai Mangur fish. This step is being taken by the state government as Thai Mangur is cultivated in highly unhygienic conditions, which could lead to people falling sick after consuming it.
The National Green Tribunal in 2000 had banned the cultivation of the Thai Mangur. So far, the state government has destroyed stocks of some 32 tonnes of Thai Mangur in the state.
Reserve Bank of India (RBI): The RBI, which was established in April 1935, used to follow January-December as its accounting year before it was changed to July-June in March 1940.
Recently, the RBI decided to align its financial accounting year with that of the central government’s fiscal year with effect from 2020-21. The Fiscal Year begins in April and ends in March and the financial year is between July and June'.
The proposal was moved at the 582nd meeting of its Central Board of Directors in New Delhi. The move will help the central bank to do away with nearly eight decades of practice. The alignment was recommended by an expert committee led by Bimal Jalan.
ADB: It refers to Asian Development Bank. ADB and Government of India signed a 490 million dollars loan for public-private partnership (PPP) project to upgrade about 2600 kilometers of state highways and major district roads from single-lane to two-lane widths in Madhya Pradesh. The loan agreement was signed by the Additional Secretary (Fund Bank and ADB) in Department of Economic Affairs in Finance Ministry Sameer Kumar Khare and Country Director of ADB’s India Resident Mission Kenichi Yokoyama. An additional $286 million investment will also be mobilized via private sector participation under PPP modality.
The projest aims to improve rural and peri-urban connectivity in state as well as improve access to markets and better services. It will also develop an e-maintenance system, which can record defects or required maintenance, along with a training program to develop capacity on contract implementation and project finance in the Madhya Pradesh Road Development Corporation.
The project continues ADB's engagement with the state's road sector since 2002. This will open a new partnership by introducing PPP through the hybrid-annuity model (HAM), thereby leveraging government financing and improving sustainability of capital investments.
HAM: It refers to hybrid-annuity model. The HAM is a mix of engineering, procurement, construction, and build-operate-transfer. This passes the responsibility of design, implementation, and operation and maintenance obligations to the private sector, while attracting some private sector financing.
Under the HAM, the government will release 6o% of the total project cost during construction, to be paid to the concessionaire in tranches linked to completion milestones. The remaining 40% is arranged by the concessionaire in the form of equity and commercial debt. After the completion of the project, the government will repay concessionaire’s financial investment over a period of 10 years.
MSME: It refers to Micro, Small and Medium Enterprises. Bank of Baroda signed an MoU with the Gujarat government to facilitate the flow of credit in the Micro, Small and Medium Enterprises (MSMEs) sector. According to the agreement, the credit will be provided to the MSME sector for greenfield projects, startups, women entrepreneurs, and entrepreneurs from backward areas under the Gujarat Single Window Clearance Act 2017 & Ordinance Number 1 of 2019 dated October 24, 2019.The MoU with the Gujarat government is a step forward for MSME entrepreneurs. The MoU would not only speed up the process of the credit off take but also speed up industrial development.
HDFC Bank: HDFC Bank Ltd. is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It is India’s largest private sector lender by assets. It is the largest bank in India by market capitalization as of February 2016. It was founded in August 1994 in India.
HDFC Bank has become only the third Indian company to cross $100 billion in market capitalization. It now a rank 110th in the list of world’s most valued firms and is now in league of Reliance Industries Ltd (RIL), which has a market value of $140.74 billion, and Tata Consultancy Services Ltd. (TCS) that has a market capitalization of $114.60 billion.
SEBI: It refers to Securities and Exchange Board of India. SEBI is responsible for regulating Securities market in India. It was founded in 1988 as a non-statutory body for regulating securities market. Statutory Powers was given to SEBI on 30 January 1992 through Securities and Exchange Board of India (SEBI) Act, 1992.
Markets regulator SEBI has signed a bilateral memorandum of understanding (MoU) with Kazakhstan-based Astana Financial Services Authority (AFSA) for mutual co-operation and technical assistance. The MoU was signed by SEBI Chairman Ajay Tyagi and the acting chief executive officer (CEO) of AFSA Mukhtar Bubeyev.
The objective of the MoU is to strengthen cross border co-operation in area of securities regulation. This would facilitate mutual assistance, contribute towards efficient performance of the supervisory functions, and enable effective enforcement of laws and regulations governing the securities markets.
eBkray: t is an e-auction platform to enable online auction of attached assets by banks. Finance Minister Sitharaman launched ‘eBkray’ auction platform. The platform provides navigational links to all PSB e-auction sites, property search feature. It also presents single-window access to information on properties up for e-auction, comparison of similar properties, and also contains videos and photographs of the uploaded properties. The e-auction platform is now linked on Indian Banks Auctions Mortgaged Properties Information (IBAPI) portal. IBAPI portal is an initiative of Indian Banks Association under the policy of the Department of Financial Services, Ministry of Finance was launched to provide a platform to give details of mortgaged properties to be auctioned online by Banks, starting with PSBs. Buyers can search in the IBAPI portal to get properties details and participate in auction process.
India-China Imports: India is set to finalize stricter quality standards for 371 items by March 2020. The move is primarily aimed at curbing imports of non-essential items such as toys, plastic goods, sports items and furniture, especially from China. The proposed rules to be framed by ministries in coordination with the Bureau of Indian Standards (BIS) will ensure stricter inspection of imports. According to the commerce ministry estimates, non-essential items imports from China amounts to about ₹4 trillion a year.
The proposed rules are aimed at curbing imports from China and narrowing the trade deficit with India’s northern neighbor, the rules will also apply to Indian producers so as to make the regulations World Trade Organization-compliant.
Darjeeling Tea: It consists of some of the worlds costliest stress-busting brews which are grown in the tea gardens of Darjeeling in West Bengal. Recently, Darjeeling tea and White tea had received a GI tag but has fallen back in global prices due to legal and illegal influx of Nepal Tea into the country which is cheaper than Darjeeling Tea. Darjeeling Tea was already suffering due to the impact of climate change, scarcity of skilled labor and high production cost. Now Nepal is stealing the business and glory of the original Darjeeling brew.
GI Tag: It refers to Geographical Indication Tag. It is a tag used on products that have a specific geographical origin and possess the qualities or reputation that are due to that origin. The Tag is provided to fetch an identity for the product international market and increase its exports. India enacted Geographical Indications of Goods (Registration and Protection) Act, 1999 under Article 22 of World Trade Organization.
Mani Mobile App: It is an acronym for Mobile Aided Note Identifier Mobile App. It helps the visually challenged people to identify denomination of currency notes.
The Reserve Bank of India (RBI) Governor Shaktikanta Das and other officials launched ‘MANI’ mobile app on January 1, 2020. The MANI app will work offline also once it is installed. The app is available both on Android and iOS operating systems. The users can scan the notes using the mobile camera and the audio output will give the result in Hindi as well as English.
However, as per the Central Bank the app does not authenticate a note as either genuine or counterfeit.
RBI: It refers to Reserve Bank of India. The RBI is India's central bank, which controls the issue and supply of the Indian rupee. RBI is the regulator of entire Banking in India. RBI plays an important part in the Development Strategy of the Government of India. It regulates commercial banks and non-banking finance companies working in India. It serves as the leader of the banking system and the money market. It was founded on 1 April 1935 in Kolkata. It is headquartered in Mumbai. The 25th Governor of RBI is Shaktikant Das.
Recently, on 9th january 2020 The RBI amended the Know Your Customer (KYC) norms for banks and other lending institutions. RBI, under the new amendments in KYC norms allows these lending institutions to use video-based Customer Identification Process (V-CIP).
The V-CIP is consent based alternate method of establishing the customer’s identity and for customer onboarding from remote areas while leveraging the digital channels for the Customer Identification Process (CIP) by Regulated Entities (REs). It also provides comfortability to banks and other regulated entities while holding to the RBI’s Know Your Customer (KYC) norms. The video files recorded as V-CIP are required to be stored bearing the date and time stamp while ensuring the safety and security of the video files.
RBI has advised banks to capture clear image of PAN card produced by the customer during the Customer Identification Process (CIP) and has also advised the banks and other regulated entities to record the customer’s location (Geotagging) to ensure the customer’s physical presence in India.
Reserve Bank of India (RBI): The Reserve Bank of India on Friday unveiled the five year (2019-24) National Strategy for Financial Inclusion (NSFI). The NSFI has been formulated by RBI under the aegis of Financial Inclusion Advisory Committee (FIAC). The report has been ratified by the Financial Stability Development Council (FSDC).
According to the official report, the NSFI 2019-2024 sets forth the vision and key objectives of the financial inclusion policies in India to help expand and sustain the financial inclusion process at the national level through a broad convergence of action involving all the stakeholders in the financial sector. The financial inclusion is a key driver of growth and poverty alleviation world over. Access to formal finance can boost job creation, reduce vulnerability to economic shocks and increase investments in human capital.
It also aims to include all, particularly poor and underprivileged class, under formal access to finance which is a key goal of the government of India. As per the reports, the 6 pillars which is a part of strategic objectives to achieve the aim of financial inclusion are:
Universal Access to Financial Services
Providing basic bouquet of financial services
Access to livelihood and Skill Development
Financial Literacy and Education
Customer Protection and Grievance Redressal
RBBG scheme: It stands for residential builder finance with buyer guarantee’ (RBBG) scheme. Recently, the State Bank of India announced the RBBG scheme with an aim to increasing residential sales and improving homebuyers’ confidence. The SBI will issue a guarantee for completion of select residential projects to customers who have availed home loans from it.
Initially, the scheme will focus on housing projects that are affordable and priced up to 2.50 crore rupees in 10 cities. The bank, under this scheme will give guarantee until the project gets the occupation certificate (OC).
2nd National GST Conference: The 2nd edition of National GST Conference of the Commissioners of State Tax and Chief Commissioners of Central Tax held under the chairmanship of Revenue Secretary of Ministry of Finance, Dr. Ajay Bhushan Pandey. It was held on 7 January 2020.
The conference was held to take necessary action to streamline the GST (Goods and Service Tax) system and also to plug revenue leakages. The meeting included measures to curb fraudulent refund claims, linking foreign exchange remittances with IGST refund, investigation of fraudulent Input Tax Credit (ITC) cases by the IT Department and a single bank account for foreign remittance receipt. The committee for taking measure will come out with detailed Standard Operating Procedure within a week, which may be implemented across the country by January end.
A Memorandum of Understanding (MoU) will be signed among the Central Board of Direct Taxes (CBDT), the Central Board of Indirect Taxes and Customs (CBIC) and the GST Network to exchange data through application program interface, from CBDT to GSTN and CBIC and vice-versa to be shared quarterly instead of being shared on a yearly basis.
All the chief commissioners of the Central Tax Zones, State Commissioners of State Taxes, Directors General (DG) of CBIC, members of CBIC, Chairman of CBDT and other officials were present in the conference.
The 1st National GST Conference of Commissioners of State Tax and Chief Commissioners/Director Generals of Central Tax was held on 25th November 2019. It was also held under the chairmanship of the Union Revenue Secretary Dr Ajay Bhushan Pandey, in New Delhi.
SBI: It refers to the State Bank of India. SBI is an Indian multinational, public sector banking and financial services statutory body. It is a government corporation statutory body. It is headquartered in Mumbai, Maharashtra. It was established in 1 July 1955. SBI is ranked as 236th in the Fortune Global 500 list of the world's biggest corporations of 2019. The current Chairperson is Rajnish Kumar
The South Central Zone (SCR) of Indian Railways has signed a Memorandum of Understanding (MoU) with SBI for door step banking. Under the MoU, the bank will enables to collect earnings generated from all 585 stations of the zone. The traffic earnings will be collected by SBI and transferred to the Government account. The direct pick up of cash from all the railway stations on SCR by SBI will save the tiring and complex activity of movement of cash earnings through ‘cash safes’ by trains and it will also speed up the pace of financial transactions and digitize the remittance of cash earnings of the Railways. Furthermore, railway stations will have uniform cash remittance mechanism, unnecessary accumulation of cash at the railway stations can be avoided with the above facility and there will be better supervision and accountability of the cash deposited by different stations.
Gold Hallmarking: The process of certifying the purity of gold is called hallmarking. The BIS system of hallmarking of gold jewellery began in April 2000 and around 40% of gold jewellery is being hallmarked currently. BIS is the National Standards Body of India established under the Bureau of Indian Standards Act 2016. It has provisions under Sections 14 and 16 for making hallmarking of mandatory by the Central Government. It certifies that the piece of jewellery conforms to a set of standards laid by the Bureau of Indian Standards, the national standards organization of India. India is the second biggest market for gold and its jewellery.
On January 14, 2020, The Union Minister of Consumer Affairs, Food and Public Distribution Ram Vilas Paswan announced that Indian jewellers will be allowed to sell hallmarked gold artifacts made of 14, 18 and 22-carat gold only. It has now become mandatory for all the Indian Jewellers to get the hallmarking of Gold jewellery and artefacts with Bureau of Indian Standards (BIS) to sell only hallmarked Gold jewellery & artefacts. The mandatory rule is to be implemented from 15 January 2021. Any violation in the new rule will result in one year imprisonment and a fine under the provisions of the Bureau of Indian Standards Act, 2016.
The purpose of making hallmarking mandatory is not only to curb frauds and fake gold but also to ensure that consumers are not cheated while buying gold ornaments and get the purity as marked on the ornaments.
GEFCO: It is an acronym for Griqualand Exploration and Finance Company Ltd. GEFCO Group is a world wxpert in supply chain solutions and the European leader in automotive logistics. It was founded in 1949 by the French car manufacturer Groupe PSA. It is headquartered in France. Its parent organization is the Russian Railways.
Global software major Infosys has signed a 5-year deal with leading European automotive logistics firm Gefco to digitize its worldwide operations. Infosys has partnered with GEFCO to strengthen its Digital Transformation. Infosys will help GEFCO to transform GEFCO’s next-generation business application management services. It will also help GEFCO to evolve into a ‘Digital Native’ organization. The main aim of the partnership is to support GEFCO to create new sustainable sources of competitive advantage and to constantly improve value for its customers.
Infosys: Infosys Limited is an Indian multinational corporation that provides business consulting, information technology and outsourcing services. It is headquartered in Bangalore, Karnataka, India. The Chief Executive Officer and Managing Director of Infosys is Salil Parekh.
RBI: It refers to the Reserve Bank of India. RBI is India's central bank, which controls the issue and supply of the Indian rupee.The RBI carries out India's monetary policy and exercises supervision and control over banks and non-banking finance companies in India. It was founded in 1st April 1935 under the Reserve Bank of India Act, 1934 in Kolkata, west Bengal. Its headquarters is in Mumbai. The current Governor isShaktikanta Das and the Deputy Governors are N S Vishwanathan, B P Kanungo and M K Jain.
Recently, the Appointments committee of the Cabinet approved the appointment of Michael Debabrata Patra as Deputy Governor of Reserve Bank of India (RBI). He has been appointed for the period of three years. He will be the fourth Deputy Governor of the RBI. The post fell vacant after Viral Acharya resigned on July 23 last year. Dr. Patra was Executive Director of the Reserve Bank before being elevated to the post of Deputy Governor. Mr. Patra is likely to retain the monetary policy department (MPC), which was handled by Mr. Acharya, as the deputy governor.
The RBI, headed by Governor Shaktikanta Das, can have a maximum of four deputy governors. N S Vishwanathan, B P Kanungo and M K Jain are the other deputy governors working at the central bank.
MPC: It refers to Monetary Policy Committee. It ia a panel of six members with 3 members from RBI and other 3 members are elected by the Government of India(GoI). MPC was constituted on 27 June 2016. Its aim is to determine interest rates in a more useful and transparent manner.
NPCI: It refers to the National Payments Corporation of India. The NPCI is an umbrella organisation for operating retail payments and settlement systems in India. it was founded in 2008 and is headquartered in Mumbai. The main objective of NPCI is to consolidate and integrate multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment system. The current MD & CEO of National Payments Corporation of India is Dilip Asbe.
Recently, NPCI launched a blockchain-technology based payment system ‘Vajra Platform’. The newly launched platform is based on the Distributed Ledger Technology (DLT). It has been designed for automating payment clearing and settlement processes of NPCI products such as unified payments interface (UPI) and Rupay card.
The platform has three types of nodes, namely, Clearing House node (CHN) for NPCI, UIDAI node for Aadhaar authentication and Participant node (PN) for all banks.
ICICI Bank: ICICI Bank Limited is an Indian multinational banking and financial services company. It was established by the Industrial Credit and Investment Corporation of India (ICICI), an Indian financial institution, as a wholly owned subsidiary in 1994. The bank was established as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank. it is headquartered in Mumbai, Maharashtra. The current MD & CEO of ICICI Bank is Sandeep Bakhshi.
Recently, ICICI Bank launched a “Cardless Cash Withdrawal” service through ATM. This service can be used for cash withdrawal from its ATMs with a per-day transaction limit of Rs 20,000. The service will enable the ICICI customers to withdraw cash from the ATM by simply putting a request on ICICI Internet Banking App “iMobile”. The advantage of this service is that the customers can withdraw money without using a debit card without any inconvenience and it is also secure .
DPIIT: It refers to Department of Industry and Internal Trade. DPIIT is a central government department under the Ministry of Commerce and Industry. it was founded in 1995 and its headquarters is in New Delhi. Its parent organization is the Ministry of Commerce and Industry. It is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives. While individual administrative ministries look after the production, distribution, development and planning aspects of specific industries allocated to them, DPIIT is responsible for the overall industrial policy. It is also responsible for facilitating and increasing the foreign direct investment (FDI) flows to the country. Initially known as Department of Industrial Policy & Promotion was renamed as Department for Promotion of Industry and Internal Trade (DPIIT) after internal trade was added to its mandate. The current Minister is Piyush Goyal while the top bureaucrat is Secretary Guruprasad Mohapatra.
Recently, DPIIT, Ministry of Commerce and Industry has launched paperless licensing process through Petroleum and Explosives Safety Organization (PESO) for petroleum service stations. It was launched through Petroleum and Explosives Safety Organization (PESO) under the Petroleum Rules, 2002. This initiative for petroleum pump licensing is directly going to benefit more than 70,000 petroleum pump owners and oil marketing companies and even benefit the petroleum and gas industry.
This initiative is in line with the government vision to promote Ease of Doing Business towards paperless and green India that will provide simpler mechanism, ease of living and business to the petroleum road tanker owners.
PESO: It refers to Petroleum and Explosives Safety Organisation. PESO is a department formed by Government of India under Department for the Promotion of Industry and Internal Trade under Ministry of Commerce and Industry.
PESO administers Explosives Act 1884,Explosive Substance Act, Petroleum Act 1934, Inflammable substance Act 1952 and Environment Protection Act 1986. The main function of PESO is to control import, export, transport, storage and usage of explosive materials,flammable materials, pressure vessels, cryogenic vessels, design and installation of all necessary and relevant infrastructure etc. It is a regulatory authority with autonomous status. The Department is headed by Chief Controller of Explosives and is headquartered at Nagpur in the State of Maharashtra in India. The authority has framed various rules like Cinematographic Films Rules, 1948, Calcium Carbide Rules 1987, Petroleum Rules 2002, Gas Cylinder Rules 2002, Explosive Rules 2008, Static & Mobile Pressure Vessels (Unfired) 2016, Ammonium Nitrate Rules, etc. It is headquartered in Nagpur, Maharashtra.