Current Affairs search results for tag: economyfinance
By admin: June 19, 2023

1. Centre discontinues sale of rice, wheat under OMSS Scheme

Tags: Economy/Finance Government Schemes National News

Open Market Sale Scheme (OMSS)The central government has discontinued the sale of rice and wheat from the central pool under the Open Market Sale Scheme (OMSS) to state governments.

An overview of the news

  • This decision will affect some states, including Karnataka, that provide free grains to the poor through their own schemes.

  • The Food Corporation of India (FCI) has issued an order stating that the sale of wheat and rice under the OMSS for state governments is discontinued.

  • However, the sale of rice under the OMSS will continue for northeastern states, hilly states, and states facing law and order situations or natural calamities at the existing rate of Rs 3,400 per quintal.

  • FCI may sell rice under the OMSS to private parties from the central pool stock to moderate market prices.

  • The central government had previously allowed states to buy rice and wheat from the FCI for their own schemes without participating in e-auctions as part of the OMSS policy for 2023.

Rice prices

  • Rice prices have been increasing due to the slow progress of the monsoon and have risen by up to 10% in the last year at the mandi level.

  • The monsoon rains are crucial for rice production as about 80% of the country's total rice production is grown during the kharif season.

Open Market Sale Scheme (OMSS)

  • Nodal Agency- Food Corporation of India (FCI)

  • Purpose- To sell foodgrains, especially wheat and rice, at predetermined prices in the open market.

  • Mode of Selling- Weekly auctions by FCI on the platform of the National Commodity and Derivatives Exchange Limited.

  • Quantity allowed in a bidding - A bidder can purchase in a single bid range from 10-100 tonne.

  • OMSS comprises 2 schemes

  • -Sale of wheat to bulk consumers/private traders through e-auction.

  • -Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.

About Open Market Sale Scheme (OMSS)

  • It is a government initiative launched with the aim of reducing the excess stock of food grains.

  • Nodal Agency- Food Corporation of India (FCI)

  • Its objective is to sell food grains, especially wheat and rice, in the open market at pre-determined prices.

  • The sales are carried out through weekly auctions by FCI on the platform of National Commodity and Derivatives Exchange Limited.

  • Under this a bidder can buy in a single bid range of 10-100 tonnes.

  • Schemes for sale of wheat to bulk consumers/private traders through e-auction and sale of grade 'A' raw rice to bulk consumers/private traders through e-auction are included under OMSS.

About Food Corporation of India (FCI)

  • It is a prominent Public Sector Undertaking (PSU) under the Ministry of Consumer Affairs, Food and Public Distribution in India.

  • It was established in 1965 to ensure food security and support the nation's public distribution system.

  • FCI's primary mandate is to procure, store, and distribute food grains across the country. 

  • It aims to maintain an adequate buffer stock of essential commodities and provide timely and affordable food grains to the vulnerable sections of society.

  • FCI undertakes the procurement of food grains from farmers at Minimum Support Prices (MSPs) declared by the government. 

  • It procures crops such as wheat, rice, and coarse grains directly from farmers through designated procurement centers.

By admin: June 15, 2023

2. RBI chief Shaktikanta Das named 'Governor of the Year' at Central Banking Awards in London

Tags: Economy/Finance Awards

Governor-of-the-YearReserve Bank of India (RBI) Governor Shaktikanta Das was named 'Governor of the Year' at the Central Banking Awards in London.

An Overview of the News

  • The award is presented by Central Banking, a leading organisation that covers matters related to central banks and financial regulators globally.

  • The Central Banking Awards 2023 announced the winners at the end of March, the National Bank of Ukraine received the title of Central Bank of the Year.

  • Shaktikanta Das, representing the Reserve Bank of India, was honoured with the Governor of the Year award at the event.

About Reserve Bank of India

  • The RBI was established on April 1, 1935, as per the provisions of the Reserve Bank of India Act, 1934.

  • The central office of the Reserve Bank was established in Kolkata which was permanently shifted to Mumbai in the year 1937.

  • It was nationalised in 1949 and now the Government of India owns the RBI.

  • It has the power to regulate banks under the Banking Regulation Act 1949.

  • It has the power to regulate Non-Banking Financial Company (NBFC) under the RBI Act 1934.

  • RBI is also the regulator of digital payment systems under the Payment and Settlement Act 2007.

Headquarters of RBI: Mumbai

RBI Governor: Shaktikanta Das

By admin: June 14, 2023

3. SIDBI launches EVOLVE mission with NITI Aayog

Tags: Economy/Finance National News

SIDBI-launches-EVOLVE-mission-with-NITI-AayogSmall Industries Development Bank of India (SIDBI) launched the Electric Vehicle Operations and Lending for Vibrant Ecosystem (EVOLVE) mission.

An Overview of the News

  • The mission has been launched in collaboration with NITI Aayog, World Bank, Korean-World Bank and Korean Economic Development Cooperation Fund (EDCF).

  • Its main objective is to provide financial assistance to micro, small and medium-sized enterprises (MSMEs) in the electric vehicle sector.

  • The collaboration between SIDBI, NITI Aayog, World Bank, Korea-World Bank and Korean Economic Development Cooperation Fund (EDCF) highlights the importance of public-private partnership.

  • The EVOLVE mission contributes to the promotion of sustainable transportation solutions in India.

  • By supporting MSMEs in the electric vehicle industry, the initiative aims to foster a vibrant ecosystem for electric vehicles.

EVOLVE Mission Aim:

  • Its primary objective is to provide funds for the purchase of 50,000 Electric Vehicles (EVs).

  • Sanction letters have been sent to companies such as Aristo Securities and Muffin Green Finance to achieve this goal.

  • These companies have been tasked with facilitating the introduction of around 5,000 two-wheeler and three-wheeler electric vehicles on the roads in the near future.

Small Industries Development Bank of India (SIDBI):

  • Apex regulatory body for micro, small and medium enterprise finance companies in India.

  • Responsible for licensing and regulation in this sector.

Jurisdiction:

  • Under the Ministry of Finance, Government of India.

  • The headquarters is located in Lucknow.

Establishment:

  • Established on 2nd April, 1990 by the Government of India.

  • Initially a wholly owned subsidiary of IDBI Bank.

  • Delinked from IDBI Bank on March 27, 2000.

By admin: June 10, 2023

4. Centre announces four important initiatives to strengthen Urban Co-operative Banks in country

Tags: Economy/Finance National News

-Urban-Co-operative-Banks-in-countryTo realise Prime Minister Narendra Modi’s vision of ‘Sahakar se Samridhi, four important initiatives have been taken to strengthen 1,514 Urban Co-operative Banks (UCBs) in the country. 

An overview of the news

  • After detailed discussions with Union Home and Cooperation Minister Amit Shah, Finance Minister Nirmala Sitharaman and Governor, Reserve Bank of India, RBI has notified these important measures to strengthen Urban Cooperative Banks.

Four initiative

  1. In order to expand their business, Urban Cooperative Banks (UCBs) can now open new branches

  • UCBs can now open new branches up to 10% (maximum 5 branches) of the number of branches in the previous financial year without prior approval of RBI in their approved area of operation. 

  • In order to avail this facility, UCBs have to get the policy approved by their board and comply with the Financially Sound and Well Managed (FSWM) Norms.

  1. UCBs can also do One Time Settlement at par with Commercial Banks

  • RBI has notified a framework governing this aspect for all regulated entities including Urban Co-operative Banks. 

  • Now co-operative banks through board-approved policies may provide a process for technical write-off as well as settlement with borrowers. 

  • This has brought cooperative banks at par with other commercial banks now.

  1. Revised timelines for PSL targets given to UCBs

  • The Reserve Bank of India has decided to extend the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by two years i.e. up to March 31,2026.

  1. Designating a Nodal Officer in RBI

  • In order to meet the long pending demand of the cooperative sector for closer coordination and focused interaction, RBI has recently notified a nodal officer as well.

What are Urban Cooperative banks (UCB)?

  • It refers to primary cooperative banks located in urban and semi-urban areas.

  • These are registered as cooperative societies under the provisions of, either the State Cooperative Societies Act of the State concerned under the provisions of the or the Multi State Cooperative Societies Act, 2002. 

  • It is regulated by the Registrar of Cooperatives and also by the RBI.

  • The Reserve Bank regulates and supervises the banking functions of UCBs under the provisions of Banking Regulation Act, 1949.

By admin: June 9, 2023

5. Federal Bank launches 'I am Adyar, Adyar is me' campaign

Tags: Economy/Finance National News

Federal-Bank-launches-'I-am-Adyar,-Adyar-is-me'-campaigThe campaign 'I am Adyar, Adyar is me' was launched by the Federal Bank in Chennai on 6th June.

An Overview of the News

  • The campaign aims to honour and celebrate the local community of Adyar.

  • The Adyar branch of Federal Bank has been converted into a living museum for the campaign.

  • Vibrant paintings depicting the vibrant spirit of Adyar now adorn the walls of the branch.

  • The campaign features a special exhibition showcasing 40 compelling stories of the individuals who made Adyar special.

  • The campaign aims to capture the essence of Adyar and promote its rich culture and heritage.

  • It fosters a sense of pride and belonging among local residents.

  • The 'I am Adyar, Adyar is me' campaign is an innovative initiative by Federal Bank to honour and recognize the Adyar community.

Federal Bank Limited:

  • It is an Indian private sector bank headquartered in Aluva, Kochi, Kerala.

  • The bank operates 1,370 branches in various states of India.

  • Federal Bank has representative offices in Abu Dhabi, Qatar, Kuwait, Oman and Dubai.

  • The bank provides a wide range of financial services to its customers including retail banking, corporate banking, treasury operations and wealth management.

  • It emphasises a customer-centric approach and strives to provide efficient and convenient banking solutions.

Founder - K.P Hormis

Establishment - 23 April 1931, Nedumpuram

CEO - Shyam Srinivasan

About Tamil Nadu

  • The state was formed on 26 January 1950 but its boundaries were redrawn on 14 January 1969.

  • It is situated at the mouth of the Arabian Sea, the Bay of Bengal and the Indian Ocean.

Capital - Chennai

Governor - Ravindra Narayan Ravi

Chief Minister - MK Stalin

Assembly seats - 235 seats

Rajya Sabha seats - 18

Lok Sabha seats - 39

By admin: June 8, 2023

6. The Union Cabinet approved the third revival package for BSNL

Tags: Economy/Finance National News

On June 8, the government approved a revival package of over Rs 89,000 crore for BSNL.

An Overview of the News 

Revival Package:

  • The total outlay of the revival package is Rs 89,047 crore.

  • The package includes allocation of 4G and 5G spectrum for BSNL through equity infusion.

  • The authorised capital of BSNL will be increased from Rs 1,50,000 crore to Rs 2,10,000 crore.

Revival Package Objectives

  • BSNL will emerge as a stable telecom service provider focused on providing connectivity to remote parts of India.

  • The spectrum allocation will enable BSNL to provide pan India 4G and 5G services.

  • BSNL will provide 4G coverage in rural and unserved villages under various connectivity projects.

  • Fixed Wireless Access (FWA) services for high-speed internet will be offered by BSNL.

  • BSNL will provide services and spectrum for the Captive Non-Public Network (CNPN).

Previous Revival Package

  • The first revival package for BSNL and MTNL was approved in 2019, amounting to Rs 69,000 crore.

  • The second revival package for BSNL and MTNL was approved in 2022 amounting to Rs 1.64 lakh crore.

About BSNL

  • BSNL was incorporated on 15 September 2000.

  • It is a 100% Government of India owned public sector undertaking

  • It is a technology oriented integrated telecom service provider company.

  • It provides wire line services, 2G, 3G, 4G and GSM mobile services including Value Added Services (VAS), Internet and Broadband services, Wi-Fi services, Data Center services etc.

Headquarters -New Delhi, India

By admin: June 8, 2023

7. RBI Monetary Policy Announcement

Tags: Economy/Finance National News

RBI Governor Shaktikanta Das announced the second monetary policy of this financial year on 8 June. There has been no change in the repo rate for the second time in a row.

An overview of the news

  • After the meeting of the Monetary Policy Committee, the RBI announced the monetary policy, saying that the repo rate would remain unchanged at 6.5%.

  • Consumer Price Inflation eased but remains above the target.

  • Continued efforts to manage liquidity and currency circulation.

  • The current account deficit is expected to narrow further in the fourth quarter.

  • Net inflows into non-resident deposits increased to US$ 8 billion in FY23 from US$ 3.2 billion in the previous year.

  • The Indian Rupee has remained stable since January this year. Conditions are favorable to accelerate capital expenditure.

Monetary Policy Committee's Decision

  • Policy repo rate remains unchanged at 6.5%.

  • Standing Deposit Facility (SDF rate) remains at 6.25%.

  • Marginal Standing Facilityand bank rates stand at 6.75%.

Inflation Trends in India

  • Consumer Price Inflation eased during March-April 2023.

  • Inflation moved into the tolerance band, declining from 6.7% in 2022-23.

  • Headline inflation remains above the target and is expected to continue in 2023-24.

  • Projected CPI headline inflation for 2023-24 is 5.1%, assuming a normal monsoon.

Withdrawal of Rs 2000 Note

  • Decline in currency circulation and increased government spending.

  • System liquidity expansion due to RBI's market operations.

  • Deposit of Rs 2000 banknotes in banks further augmented liquidity.

  • So far ₹1.8 lakh crore worth ₹2,000 banknotes have come back after the central bank announced to take these out of circulation. 

  • This is 50% of the total ₹3.62 lakh crore-worth notes in circulation as of March 31.

What is the repo rate?

  • Repo rate is the rate at which the central bank of a country (RBI in India's case) lends money to commercial banks when they are short of funds. Here the central bank buys securities.

What is the Monetary Policy Committee? 

  • Under Section 45ZB of the amended RBI Act 1934, the Central government is empowered to constitute a six-member Monetary Policy Committee (MPC) to determine the policy interest rate required to achieve the inflation target. 

  • The first such MPC was constituted on September 29, 2016.

  • As per the RBI Act, the MPC must meet a minimum of four times in a year.

  • The meeting of the Monetary Policy Committee was held from 6 to 8 June 2023.

By admin: June 7, 2023

8. NHPC inks MoU with Maharashtra Government

Tags: National Economy/Finance National News

NHPC-inks-MoU-with-Maharashtra-GovernmentState-owned NHPC Limited has announced its collaboration with the Department of Energy, Maharashtra government through a Memorandum of Understanding (MoU) on 7 June. 

An overview of the news

  • The primary objective of this partnership is to establish Energy Storage Systems, specifically Pumped Storage Systems, alongside other Renewable Energy Sources like Solar, Wind, and Hybrid, with a total combined capacity of 7,350 MW.

  • The introduction of energy storage systems, such as Pumped Storage Systems, is crucial for storing excess energy during periods of low demand and utilizing it during peak hours. 

  • These systems play a vital role in ensuring a reliable and uninterrupted power supply. 

  • They contribute to grid stability, enable efficient energy management, and facilitate the integration of intermittent renewable energy sources into the power grid.

  • By combining pumped storage systems with solar, wind, and hybrid power generation, this collaboration aims to optimize the utilization of renewable energy resources. 

NHPC Limited

  • NHPC Limited, formerly known as the National Hydroelectric Power Corporation, is a state-owned company in India.

  • It was incorporated in 1975.

  • Its objective is developing, operating, and maintaining hydroelectric power projects in India.

  • It is a government-owned company, with the majority of shares held by the Government of India. 

  • It operates under the administrative control of the Ministry of Power.

  • Some of its major projects include the Indira Sagar Project in Madhya Pradesh, the Teesta Low Dam Project in West Bengal, and the Parbati Hydroelectric Project in Himachal Pradesh.

By admin: June 6, 2023

9. RBI Governor launches financial inclusion dashboard Antardrishti

Tags: Economy/Finance National News

RBI-Governor-launches-financial-inclusion-dashboard-AntardrishtiReserve Bank of India Governor Shaktikanta Das launched a financial inclusion dashboard named 'Antardrishti' on 6 June.

An overview of the news

  • The dashboard will provide necessary insights to assess and monitor the progress of financial inclusion by capturing relevant parameters.

  • The progress of financial inclusion will be assessed against set parameters through an Antardrishti dashboard. Along with this, it will also help in monitoring.

  • With the help of the dashboard, the areas of lack of financial services on a large scale in the country can be detected and then work will be done on the basis of this.

  • Currently, the Antardrishti Dashboard will be used internally by RBI.

  • Multi stakeholder approach will be adopted for the Antardrishti Dashboard to enhance financial inclusion in future.

Financial Inclusion Index

  • The Financial Inclusion Index was launched in 2021 to measure financial inclusion.

  • In this, financial inclusion is measured on the basis of access, utility and quality.

  • This index also includes information related to banking, investment, insurance and postal services etc. of an area.

  • This index ranges from 0 to 100.

  • 0 indicates complete financial exclusion, while 100 indicates complete financial inclusion.

Reserve Bank of India (RBI)

  • Reserve Bank of India was set up under the Reserve Bank of India act 1934. It started functioning from 1 April 1935.

  • It was nationalized in 1949 and now the government of India is the owner of RBI.

  • It has the power to regulate Banks under the Banking Regulation Act 1949.

  • It has the power to regulate the Non-Banking Financial Company (NBFC) under the RBI act 1934.

  • RBI is also the regulator of the digital payment system under the Payment and settlement act 2007.

  • Headquarters of RBI: Mumbai 

  • Governor of RBI : Shaktikanta Das

By admin: June 5, 2023

10. SBI launches Project Kuber in Bengaluru

Tags: Economy/Finance State News

SBI-launches-Project-Kuber-in-BengaluruState Bank of India (SBI), Bengaluru Circle, recently launched 'Project Kuber' to meet the banking needs of its customers.

  • Project Kuber' aims to facilitate, and cater to various banking requirements of customers in Bengaluru Circle.

Transaction Banking Hubs

  • The project includes the establishment of four Transaction Banking Hubs and one Corporate Salary Package Hub

  • These hubs will focus on increasing SBI's market share in liability products.

  • Nand Kishore, the Chief General Manager of SBI, Bengaluru Circle, inaugurated the hub on 3rd June.

  • They are located at SBI Administrative Building on KG Road and Sampige Road in Malleswaram.

  • The Transaction Banking Hubs will provide a range of services to both corporate and non-corporate clients.

  • These services include account opening, onboarding on SBI's digital platforms, and catering to payment and collection-related requirements. 

  • The hubs will serve as a one-stop destination for digital banking services such as Yono Business, e-Payments, Cash Management Products, and more.