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By admin: July 1, 2024

India Placed in 'Regular Follow-Up' Category by FATF

Tags: International News

India has been categorized under the 'regular follow-up' by the Financial Action Task Force (FATF). 

An Overview of the News

• The FATF held its plenary meeting in Singapore from June 26-28, 2024.

• This decision follows a review of India's efforts in implementing anti-money laundering, anti-terrorism financing, and anti-proliferation financing measures.

• Alongside India, Russia, France, Italy, and the United Kingdom were also placed in the 'regular follow-up' category.

• One country was added to the grey list, and others were categorized under 'enhanced follow-up'.

• The FATF acknowledged India's efforts in combating money laundering and terrorist financing but highlighted the need to address delays in concluding prosecutions related to these crimes.

FATF Evaluation of India:

• India joined FATF in 2010 and underwent its first evaluation in the same year.

• The next evaluation was delayed due to the COVID-19 pandemic and occurred in 2023.

• India must submit a report addressing FATF concerns by October 2027.

Implications for India:

• Being in the regular follow-up category enhances ease of financial transactions globally.

• Easier access to international capital markets at lower costs for Indian companies.

• Increased foreign investment due to enhanced confidence in India's legal and payment systems, including UPI.

About FATF:

• Established in 1989 by G-7 countries to set global standards on AML/CFT/PF.

• Inter-governmental body issuing recommendations and assessing countries' actions against financial crimes.

• Collaborates with IMF, World Bank, UN, and FATF-style regional bodies.

• Headquartered in Paris, France, with 39 current members excluding Russia (suspended since 2023).

• President: T Raja Kumar of Singapore.

PMLA 2002:

• Based on FATF recommendations, Prevention of Money Laundering Act (PMLA) 2002 combats money laundering in India.

• Enforced by the Directorate of Enforcement (ED) since July 1, 2005.

India Ranks 72nd in IMF's Global AI Preparedness Index

Tags: INDEX

The International Monetary Fund (IMF) introduced the Artificial Intelligence Preparedness Index (AIPI) Dashboard on June 25, 2024.

An Overview of the News

• The index ranks 174 Countries worldwide based on their preparedness for adopting artificial intelligence (AI).

• India ranks 72nd with a score of 0.49, categorized as an Emerging Market (EM).

• Bangladesh ranks 113th (0.38), Sri Lanka 92nd (0.43), and China 31st (0.63).

• Rating Criteria: Ratings are based on digital infrastructure, human capital, labor policies, innovation, integration, and regulation.

Top Countries in the AI Preparedness Index

• Singapore ranks 1st with an index of 0.800.

• Denmark follows closely in 2nd place with an index of 0.778.

• The United States secures the 3rd position with an index of 0.771.

• Netherlands stands 4th with an index of 0.766.

• Estonia, Finland and Switzerland are ranked 5th with an index of 0.754.

• New Zealand and Germany are ranked 6th with an index of 0.753.

• Sweden is ranked 7th with an index of 0.747

Impact and Job Displacement

• Job Displacement: AI is projected to potentially disrupt 33% of jobs in advanced economies, 24% in emerging economies, and 18% in low-income countries.

• Economic Reshaping: Economist Giovanni Melina highlights AI's potential to enhance job productivity and create new industries globally.

International Monetary Fund (IMF):

• Establishment: 1944 (Formally came into existence in December 1945)

• Members: 190 (India joined the IMF on December 27, 1945)

• Headquarters: Washington DC

Important Points 

• India Ranked 63rd in the Global Energy Transition Index 2024 

• India Ranked 3rd in the Global Unicorn Index 2024

• India Ranked 159th in the World Press Freedom Index 2024

• India Ranked 129th in the Global Gender Gap Index 2024

• India Ranked 39th in WEF's Travel and Tourism Development Index 2024

• India Ranked 126th in the World Happiness Report 2024

National Chartered Accountants - 1 July

Tags: Important Days

National Chartered Accountants (CA) Day is observed annually on July 1st.

An Overview of the News

• The day commemorates the establishment of the Institute of Chartered Accountants of India (ICAI).

• This year, the celebrations mark the 76th anniversary since the ICAI was founded by an Act of Parliament.

What is the Institute of Chartered Accountants of India (ICAI)?

• The ICAI is a statutory body established by the Chartered Accountants Act of 1949.

• It regulates the profession of Chartered Accountancy in India.

• Administratively overseen by the Ministry of Corporate Affairs.

Historical Background:

• Before independence, accounting in India was governed under the Companies Act by the British Government.

• A diploma program in accounting for auditors was introduced by the British Government.

• In 1930, the Government of India established the Register of Accountants.

• Lack of effective norms led to the perception of an unregulated accounting profession.

• An expert committee in 1948 recommended the formation of an autonomous body to regulate accounting.

• The Chartered Accountants Act was enacted in 1949 based on these recommendations.

Japan Introduces New 3D Holographic Banknotes

Tags: International News

Japan will start issuing new banknotes on July 3.

An Overview of the News

• These banknotes feature cutting-edge holography, making the portraits of historic figures appear to rotate in 3D.

• The new technology allows visually impaired people to feel and discern the banknotes they are holding.

• Tactile marks will make the banknotes recognizable by touch.

• By the end of March next year, nearly 7.5 billion new banknotes will be printed.

• Existing banknotes will remain valid after the introduction of the new banknotes.

About Japan

• Capital: Tokyo

• King: Prince Naruhito (The reign of the 126th king will be known as 'Riwa'.)

• Prime Minister: Fumio Kishida

• Currency: Japanese Yen

Bangladesh Navy Inks Deal for 'Made in India' 800-Ton Ocean-Going Tug with GRSE

Tags: International Relations

Bangladesh Navy signs a contract for a "Made in India" 800-tonne ocean-going tug with Garden Reach Shipbuilders and Engineers (GRSE), Kolkata.

An Overview of the News

• This is the second contract for GRSE this month, following a $16.6 million deal with the Bangladesh Inland Waterways Transport Authority (BIWTA) to build a dredger.

Admiral Tripathi's Visit

• Indian Navy Chief Admiral Dinesh Tripathi visits Bangladesh for a four-day official visit.

• The visit coincides with the contract signing between Bangladesh Navy and GRSE.

Bilateral Relations and Agreements

• The visit follows Bangladesh PM Sheikh Hasina's bilateral visit to India on June 21-22.

• Agreements were signed to strengthen ties in the maritime sphere and blue economy.

• Bangladesh decided to join the Indo-Pacific Oceans Initiative (IPOI), a forum promoted by India for collaborative solutions to common challenges in the Indo-Pacific region.

Purpose of the Visit

• The visit aims to consolidate bilateral defence relations between India and Bangladesh.

• Exploration of new avenues for naval cooperation.

PM Modi Releases Three Books on Venkaiah Naidu's Life and Journey

Tags: Books and Authors National News

Prime Minister Narendra Modi released three books on the life and works of former Vice President Venkaiah Naidu via video conferencing on June 30.

An Overview of the News

• The event was held in Hyderabad, coinciding with Mr. Naidu’s 75th birthday.

• PM Modi stated that Mr. Naidu's life journey is a source of inspiration for younger generations.

The three books released are:

• Venkaiah Naidu: Life in Service: A biography by S. Nagesh Kumar, former resident editor of The Hindu’s Hyderabad edition.

• Celebrating Bharat: The Mission and Message of Shri M Venkaiah Naidu as 13th Vice-President of India: A photo chronicle compiled by I.V. Subba Rao, former secretary to the Vice-President of India.

• Mahaneta: Life and Journey of Shri M. Venkaiah Naidu: A pictorial biography in Telugu authored by Sanjay Kishore.

Other books by Venkaiah Naidu

• Articles in newspapers on the subjects of political and public interests and books

• ‘Moving on...Moving forward: A Year in Office’

• ‘Selected Speeches of Venkaiah Naidu : Volume 1’

• ‘Listening, Learning and Leading’ A chronicle of the Vice President of India’s two Years in office

• Connecting, Communicating, Changing……Vice President’s third year in office

Other Books for 2024

• The Idea of Democracy - Sam Pitroda, 2024

• 2024: India in Free Fall - Sanjay Jha

• The Cooking of Books: A Literary Memoir - Ramachandra Guha

• Thread by Thread: The S.Kumar's Story - Sathya Saran

• Just a Mercenary? Notes from My Life and Career - D. Subbarao

GST (Goods and Services Tax) Day - 1 July 2024

Tags: Important Days

To commemorate the anniversary of the implementation of the historic tax reform of the Goods and Services Tax, 1 July is observed as GST (Goods and Services Tax) Day.

An Overview of the News

• The first GST Day was celebrated on 1st July 2018 to mark the first anniversary of the new indirect tax regime i.e. Goods and Services Tax (GST).

• GST was implemented on the intervening night of 30 June and 1 July 2017 in a function held in the Central Hall of Parliament.

• On 29 March 2017, the Goods and Services Tax Act was passed in the Parliament and the Act came into force on 1 July 2017.

• GST was enacted as the 101st Constitutional Amendment Act, 2016.

What is GST?

• GST is an indirect tax which has been implemented with the aim of making India a unified common market.

• It is a single tax levied on the supply of goods and services from the producer to the consumer.

• Under GST, on the one hand indirect taxes like Central Excise Duty, Additional Excise Duty, Service Tax, Countervailing Duty are included at the Central level.

• On the other hand, state-levied value addition tax, entertainment tax, octroi and entry tax, luxury tax, etc. are also included.

• It was introduced with the slogan 'One Nation One Tax'.

Tax Structure under GST

• Central GST (CGST) to cover excise duty, service tax etc.

• State GST (SGST) to cover VAT, luxury tax etc.

• Integrated GST (IGST) to cover inter-state trade.

• IGST itself is not a tax but a tax system to coordinate state and union taxes.

• It has a 4-tier tax structure of 5%, 12%, 18% and 28% for all goods and services under the slab.