1. India, Malaysia can now trade in Indian rupee
Tags: Economy/Finance International News
The Ministry of External Affairs announced on 1 April that India and Malaysia have agreed to settle trade in the Indian rupee.
An overview of the news
In July 2022, the Reserve Bank of India (RBI) allowed settlement of international trade in Indian currency.
This step has been taken only after this decision of the RBI.
According to the Ministry of External Affairs,trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the existing methods of settlement in other currencies.
The RBI initiative is aimed at facilitating trade growth and supporting the interests of the global trading community in the Indian Rupee.
Kuala Lumpur-based India International Bank of Malaysia (IIBM) has introduced this system in India by opening a special Rupee Vostro account through Union Bank of India.
Vostro accounts are used to make payments in domestic currency.
What is a Vostro Account?
Vostro is a Latin word meaning "your", hence, Vostro Account means "your account".
Vostro account is defined as an account maintained by a correspondent bank on behalf of another bank.
For example HSBC's Vostro account is being handled by SBI in India.
A Vostro account is established to enable a foreign correspondent bank to act as an agent or provide services as an intermediary for a domestic bank.
About Malaysia
Prime Minister - Anwar Ibrahim
Capital - Kuala Lumpur
Currency - Malaysian ringgit
Official Language - Malay
Official Religion - Islam
2. MOIL Limited records 2nd highest Production since inception in FY’23
Tags: Economy/Finance National News
MOIL Limited has registered its second highest production since inception with production of 13.02 lakh tonnes of manganese (Mn) ore in the financial year 2022-23, registering a growth of 6% over the previous year.
An overview of the news
The company has also achieved a capital expenditure of Rs 245 crore in FY23, which is 14% higher than FY2021-22.
MOIL has achieved the best ever exploratory core drilling of 41,762 meters in FY23, which is 2.7 times the average exploration achieved in the last 5 years.
The sales turnover of electrolytic manganese dioxide (EMD) reached a new high, more than 2 times that of the previous year.
EMD is a 100% import substitution product, mostly used for manufacturing of pharmaceuticals and batteries.
About MOIL
MOIL is a Schedule “A” Miniratna Category-I Company under the Union Ministry of Steel.
It was originally incorporated as Manganese Ore (India) Limited in 1962 and its name was changed to MOIL Limited during 2010-11.
The company operates 11 manganese ore mines in India. It has 7 mines located in the Nagpur and Bhandara districts of Maharashtra and four in the Balaghat district of Madhya Pradesh.
At present the Government of India owns 53.35% shares in the company, Government of Maharashtra (5.96%), Government of Madhya Pradesh (5.38%) and Public (35.31%).
Headquarter: Nagpur, Maharashtra
CMD MOIL Limited : Ajit Kumar Saxena
3. India’s Defence exports touch all-time high of 15 thousand 920 crore rupees
Tags: Economy/Finance Defence National News
Defence Minister Rajnath Singh on April 1 said that India’s defence exports have reached an all-time high of 15 thousand 920 crore rupees in Financial Year 2022-2023.
An overview of the news
India exported military hardware worth Rs 8,434 crore in 2020-21, Rs 9,115 crore in 2019-20 and Rs 10,745 crore in 2018-19.
The amount was Rs 4,682 crore in 2017-18 and Rs 1,521 crore in 2016-17.
The government has set a target of manufacturing defense hardware worth Rs 1,75,000 crore and taking defense exports to Rs 35,000 crore by 2024-25.
In recent years, the government has implemented various measures to promote domestic defense production.
Steps taken by the Government to boost defence production
Simplified defence industrial licensing, relaxation of export controls and grant of No Objection Certificate.
Specific incentives introduced under the foreign trade policy.
Defence Production & Export Promotion Policy 2020.
The government had issued two "positive indigenization lists" which included 209 items that could not be imported.
The government has also announced two dedicated corridors in Tamil Nadu and Uttar Pradesh to act as clusters of defense manufacturing.
The vision of the government
To achieve a turnover of $25 billion, including exports of $5 billion in aerospace and defence goods and services by 2025.
4. Axis Bank and Shriram Housing Finance partner for co-lending
Tags: Economy/Finance National News
Axis Bank and Shriram Housing Finance Limited (SHFL) entered into a strategic partnership through the Yubi Co.Lend platform under the co-lending model.
An Overview of the News
The partnership aims to address the needs of unorganized sector customers, including self-employed or salaried borrowers, who have limited access to credit due to lack of sufficient income proof.
The partnership will provide secured MSME loans and home loans to middle and low-income group borrowers in rural and semi-urban areas.
The collaboration between Axis Bank and SHFL will address the credit gap faced by MSME and home loan borrowers by using their wide customer reach and rigorous credit underwriting and appraisal tools.
This partnership is in line with Axis Bank's India Banking mission of financial inclusion in rural and semi-urban areas in a seamless digital manner.
About Shriram Housing Finance Limited (SHFL)
It is a subsidiary of Shriram City Union Finance Limited (SCUF) and was established in 2011. It is registered with National Housing Bank (NHB) and provides housing finance solutions to individuals, groups and corporate entities.
The company primarily focuses on catering to the needs of the Economically Weaker Sections (EWS) and Low Income Groups (LIG) of the society. It also caters to the needs of the middle-income group (MIG) and self-employed individuals.
As on December 31, 2022, the company had 2,901 branches across 19 states and 1 union territory.
It has been ranked 8th in the Great Place to Work® Institute's Best Workplaces for BFSI 2020 list.
5. Aditya Birla Health Insurance partners with UCO Bank
Tags: Economy/Finance National News
Aditya Birla Health Insurance Company Limited (ABHICL) has entered into a partnership with UCO Bank to distribute health insurance products through the bank's branches across India.
An Overview of the News
UCO Bank's network of 3164 branches and over 40 million customers will allow ABHICL to expand its national footprint.
Through the partnership, UCO Bank's customers and employees will have access to ABHICL's health-first insurance solutions, including incentive wellness benefits and chronic management programs.
ABHICL now has 17 Bancassurance Partners with over 80,000 Direct Selling Agents across India.
CEO of UCO Bank - Soma Shankar Prasad
CEO of Aditya Birla Health Insurance - Mayank Bathwal
About Aditya Birla Health Insurance Company Limited (ABHICL)
It is an Indian health insurance company that offers a range of health insurance products to individuals, families and corporations.
It is a subsidiary of Aditya Birla Capital Limited, one of the largest conglomerates in India.
ABHICL has tie-ups with over 5,500 network hospitals across India, providing customers easy access to cashless medical treatment.
Additionally, ABHICL offers wellness programs to help customers maintain a healthy lifestyle.
6. India Post Payments Bank launches WhatsApp Banking Services
Tags: Economy/Finance
India Post Payments Bank (IPPB) has announced the launch of WhatsApp Banking service in collaboration with Airtel, a leading private sector telecom company.
An overview of the news
According to the Ministry of Communications, with this new service of India Post Payments Bank, customers can now easily access various banking services from their WhatsApp account through their mobile phones.
Under this new arrangement, it will be delivered to customers through WhatsApp messaging solution Airtel IQ.
Airtel will enable IPPB customers to seamlessly connect with the bank on WhatsApp.
With this, customers will not only be able to avail multiple banking services conveniently, but will also be able to avail a host of services like locating the nearest post office.
WhatsApp messaging will enhance the convenience of connecting with the bank directly at the customers' fingertips.
With this, the Digital India Mission of the Central Government will also be taken forward.
IPPB is a public sector bank which was launched in 2018 with the objective of providing banking services to the unbanked population of India.
7. IMF approves 15.6 billion dollar support package for Ukraine
Tags: Economy/Finance International News
The International Monetary Fund (IMF) has approved a $15.6 billion support package to aid the economic recovery of conflict-torn country Ukraine.
An overview of the news
The Russian invasion has devastated Ukraine's economy, causing economic activity to shrink by about 30 percent last year, according to the IMF.
War has destroyed capital stock and promoted poverty.
The 48-month Extended Fund Facility program approved by the Fund's Board amounts to approximately $15.6 billion.
It is part of the IMF's $115 billion total support package, which includes debt relief, grants, and loans by multilateral and bilateral institutions.
If the current conflict were to continue into 2025, it would raise Ukraine's financial needs from $115 billion to around $140 billion, said the IMF.
About Ukraine
Ukraine, a country located in Eastern Europe, is the second largest country in the continent after Russia.
Its capital is Kiev, located on the Dnieper River in north-central Ukraine.
Prime Minister: Denys Shmyhal
President: Volodymyr Zelensky
Capital: Kyiv
Official Language : Ukrainian
Currency : Rryvnya (UAH)
About International Monetary Fund (IMF)
It is an international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty.
It was established in 1944 in the aftermath of the Great Depression of the 1930s.
It is an organization of 190 member countries.
It is governed by and accountable to 190 countries.
India became its member in December 1945.
The IMF's resources come mainly from money that countries pay in as their capital subscriptions (quotas) when they become members.
The International Monetary Fund’s executive board comprises 24 members.
Managing Director - Kristalina Georgieva (Bulgaria)
Headquarter (HQ) - Washington, D.C., US
8. Unified rate approved for natural gas pipeline, new rate applicable from April 1
Tags: Economy/Finance National News
With the ambitious objective of One Nation,One Grid and One Tariff, the Petroleum and Natural Gas Regulatory Board (PNGRB) has decided to change the Unified Tariff which will be applicable from 1st April 2023.
An overview of the news
PNGRB has notified a levelized Unified tariff of 73.93 rupees per MBTU (Metric Million British Thermal Unit).
The rates will be implemented as per three tariff zones in the entire gas network of the country.
This decision will give a boost to the economic development of all regions of the country.
This will facilitate the government's vision for the development of gas markets and increase the utilization of gas in the country.
Three different Tariff Zones
The rate will be different for a distance of 300 km from the gas source.
The rate will be different for the distance of 300-1200 km from the gas source.
The area of more than 1200 km distance will come in the third zone.
National Gas Grid
It covers Indian Oil Corporation, ONGC, Gail India, Pipeline Infrastructure Limited, Gujarat State Petronet, Gujarat Gas Limited, Reliance Gas Pipeline, GSPL India Gasnet Limited and GSPL India Trans Limited.
9. Japan to provide USD 1.24 billion line of credit to Bangladesh for road, railway and port projects
Tags: Economy/Finance International News
Japan will provide an Official Development Assistance (ODA) loan of USD 1.24 billion to Bangladesh for infrastructure and connectivity projects and the second tranche of the 43rd Japanese Yen loan package was signed at the exchange of notes between the two countries.
An Overview of the News
The loan package includes three projects: Chattogram-Cox's Bazar Highway Improvement Project, construction of a dual gauge rail line between Joydebpur-Eshwardi section, and Matarbari Port Development Project, Phase 2.
The first tranche of loan was almost the same amount, making the total package around US$ 2.48 billion.
Japan has been the largest bilateral donor to Bangladesh since 2012, assisting various mega-infrastructure projects.
About Official Development Assistance (ODA)
It is financial aid provided by developed countries to developing countries to support economic growth and reduce poverty.
It can be given in the form of grants or loans, and is provided by governments, international organisations and non-governmental organisations.
It can be used for a variety of purposes, including building infrastructure, promoting economic development, and providing emergency relief.
The Organization for Economic Co-operation and Development (OECD) monitors and reports on ODA flows between its member countries.
ODA is important for supporting economic growth and reducing poverty in developing countries.
About Japan
Prime Minister- Fumio Kishida
Capital- Tokyo
Currency - Yen
Ambassador- Iwama Kiminori
About Bangladesh
Prime Minister- Sheikh Hasina
Bangladesh currency - Bangladeshi taka
Capital- Dhaka.
10. Axis Bank launches 'Micropay' on 'PIN on Mobile' technology
Tags: Economy/Finance National News
Axis Bank launched a groundbreaking payment solution called "Micropay" by Razorpay and MyPinpad in association with technology partners Ezetap.
An Overview of the News
Micropay is a "Pin on mobile" solution that enables a merchant's smartphone to act as a Point-of-Sale (POS) terminal, providing a unique customer experience and simplifying digital payments.
This solution has the potential to revolutionise digital payments in India, especially in Tier-2 and Tier-3 cities where retail and grocery stores often have limited working capital and need cost-effective payment options.
The launch of Micropay by Axis Bank is expected to have a significant impact on small businesses, making digital payments more accessible and cheaper.
About 'Micropay' and 'PIN on Mobile' technology
The new Pin on mobile technology offers merchants an affordable way to accept payments through cards, UPI and BAR codes while maintaining high security standards.
Pin on mobile technology is a small, low-cost card reader that connects via Bluetooth to a merchant's smartphone.
Customers can enter their Pin directly on the merchant's device, in compliance with PCI standards for software-based Pin entry on COTS phones, ensuring the security of the Pin.
Harshil Mathur, CEO of Razorpay
Beas Nambisan, CEO of Ezetap
