Current Affairs search results for tag: economyfinance
By admin: Aug. 25, 2022

1. Three govt entities join hands for development of multi-modal logistics parks

Tags: Economy/Finance

Three public sector entities under various ministries of the central government have signed an MoU for the development of multi-modal logistics parks under the Bharatmala project.

Parties of the agreement :

  • MoU has been signed between National Highway Logistics Management Limited (NHLML), Inland Waterways Authority of India (IWAI) and Rail Vikas Nigam Limited (RVNL) for rapid development of Modern Multi Modal Logistics Park (MMLP).

  • NHLML is a special purpose vehicle of the National Highway Authority (NHAI) and IWAI is a statutory authority under the Ministry of Ports, Shipping and Waterways. 

  • RVNL is a wholly-owned public sector enterprise under the railway ministry. 

Objective of the agreement :

  • Centralise freight movement and reduce logistics cost from 14 percent of GDP to less than 10 per cent in line with international standards.

IMPORTANT FACTS -

  • The agreement was signed in the presence of Union Ministers Nitin Gadkari and Sarbananda Sonowal.
  • This will provide seamless modal shift, MMLP will ensure that cargo is swapped or moved by waterways, dedicated freight corridors and road transport.

  • MMLPs will ensure that cargo is moved through waterways, dedicated freight corridors and road transport hubs.

  • MMLP will focus on technology driven implementation for a state-of-the-art freight management system.

Bharatmala Pariyojana :

  • It is a centrally-sponsored and funded Road and Highways project of the Government of India.

  • It was launched in July 2015.

  • Under the project the government intends to develop 83,677 km of highways and roads at an investment of around Rs 7 lakh crore over the next five years.

ADDITIONAL INFORMATION -

Components of Bharatmala Project :

  • Feeder Route or Inter Corridor

  • Economic Corridor

  • National Corridor Efficiency Improvement 

  • Border Road and International Connectivity

  • Green Field Expressway

  • Balance NHDP Works

By admin: Aug. 24, 2022

2. Adani group makes bid to take over NDTV

Tags: Economy/Finance

Adani Group's subsidiary AMG Media Networks has bought 29.1 percent indirect stake in New Delhi Television (NDTV).


IMPORTANT FACTS -

  • Gautam Adani Group will also launch an open offer to buy more 26% stake.
  • At the same time, in a notice sent to the Securities and Exchange Board (SEBI), NDTV said that the information about the acquisition has not been given to it.

  • NDTV claimed that there was neither any discussion nor consent was taken with its founders – Prannoy Roy and Radhika Roy.

  • The promoter entity RRPR Holding, at the centre of the acquisition, has been asked to transfer its shares to the acquirer Vishvapradhan Comm­ercial (VCPL) in two days.

  • Adani Group has made an open offer for up to 26 per cent stake in NDTV at a price of Rs 294 per share.

What is a Takeover Bid ?

  • A takeover bid is a type of corporate action in which one company makes an offer to buy another company.

  • In a takeover bid, the company making the offer is known as the acquirer.

  • The acquiring company typically provides cash, stock, or a combination of both in an effort to acquire the company.

  • There are four types of takeover bids - friendly, hostile, reverse, or backflip.

ADDITIONAL INFORMATION -

What is Hostile bid ?

  • A Hostile bid involves the bidding target going directly to the shareholders.

  • Hostile bidders issue a tender offer, giving shareholders the opportunity to sell their stock to the acquirer at a substantial premium within a specified time frame.

By admin: Aug. 22, 2022

3. No charges will be levied on UPI services - Finance Ministry

Tags: Economy/Finance

The Finance Ministry on August 21 said that the United Payments Interface (UPI) is a useful digital service for the people and the government does not intend to levy any charges on it.


IMPORTANT FACTS -

  • This statement of the Finance Ministry allays the apprehensions arising out of the discussion paper of the Reserve Bank of India (RBI) on charges in the UPI payment system.
  • The discussion paper suggests that UPI payments may be charged with different amount categories.

  • In this paper, there was talk of levying a special charge (Merchant Discount Rate) on UPI transactions.

  • This charge depends on the amount transferred.

  • Currently, there are no charges for transactions through UPI.

About UPI :

  • Unified Payments Interface (UPI) is a single platform that integrates various banking services and facilities under one umbrella.

  • It is developed by National Payments Corporation of India (NPCI).

  • The names of the top UPI apps currently are – PhonePe, Paytm, Google Pay, Amazon Pay and BHIM.

  • NPCI launched UPI in 2016 with 21 member banks.

For more update please visit news of 2 August.

By admin: Aug. 20, 2022

4. Centre bars 13 states from power exchange over dues

Tags: National Economy/Finance

Power System Operation Corporation (POSOCO), the national grid operator under the Ministry of Power, has barred 12 states and one Union Territory of Jammu and Kashmir from buying/selling electricity due to non-payment of dues.


IMPORTANT FACTS -

  • These states include Andhra Pradesh, Tamil Nadu, Telangana, Karnataka, Bihar, Jharkhand, Madhya Pradesh, Maharashtra, Chhattisgarh, Jammu and Kashmir, Rajasthan, Manipur and Mizoram.
  • This is the first time that the grid operator has invoked the Electricity (Delay Payment Surcharge and Related Matters) Rules, 2022, to not allow discoms to buy power from alternative short-term sources.

  • The total outstanding dues of non-payment discoms is Rs 5,000 crore, of which Telangana has the highest dues of Rs 1,380 crore.

  • Under the new Late Payment Surcharge (LPS) rules, it will be implemented from August 19.

  • As per the LPS rule, if the discoms do not clear the pending dues to Genco within seven months, their power exchange is suspended.

Power System Operation Corporation (POSOCO) :

  • It is a wholly owned Government of India Enterprise under the Ministry of Power, Gov of India.

  • Earlier it was a wholly owned subsidiary of Power Grid Corporation of India Limited (POWERGRID).

  • It was set up in March 2009 to handle the power management functions of PGCIL.

  • It is responsible for ensuring the integrated operation of the grid in a reliable, efficient and safe manner.

  • It consists of 5 Regional Load Despatch Centers and one National Load Despatch Center (NLDC).

By admin: Aug. 18, 2022

5. CBIC revises guidelines on arrest, prosecution for Customs violations

Tags: Economy/Finance

The Central Board of Indirect Taxes and Customs (CBIC) has issued revised guidelines for prosecution, arrest and bail under the Customs Act.


IMPORTANT FACTS -

  • CBIC has increased the limit of fine for violation of these rules.
  • Smuggling of high value goods such as gold and unauthorized import of goods, the market value of which is more than Rs 50 lakh, can lead to prosecution and arrest.

  • Cases of wrong declaration or evasion of duty of goods worth Rs 2 crore or more will also face similar action.

  • Arrest will also be made if the amount of fraudulent duty refund or duty exemption in export of goods exceeds Rs.2 crore.

  • However, the above limit of value will not apply to certain items like ammunition, antiquities, art treasures, wildlife and endangered species.

What is Custom Duty?

  • Customs duty refers to the tax levied on goods when they are transported across an international border.

  • It is a tax that is levied on the import and export of goods.

  • The government uses this duty to increase its revenue, protect domestic industries and control the movement of goods.

Types of custom duty :

  • Basic Customs Duty (BCD)

  • Countervailing Duty (CVD)

  • Additional Customs Duty or Special CVD

  • Protective Duty,

  • Anti-dumping Duty

Central Board of Indirect Taxes and Customs (CBIC) :

  • It is a subsidiary board of the Department of Revenue under the Union Ministry of Finance.

  • It mainly deals with the functions of policy formulation and implementation relating to levy and collection of Customs Duty, Central Excise Duty and Goods and Services Tax.

  • It also works for the prevention of smuggling.

  • CBIC is headed by a Chairman and consists of 6 members.

  • Present Chairman - Vivek Johri

By admin: Aug. 13, 2022

6. Taxpayers will no longer be part of Atal Pension Yojana

Tags: Economy/Finance Government Schemes

According to a gazette notification issued by the Ministry of Finance Any citizen who is or has been an income-tax payer, shall not be eligible to join Atal Pension Yojana (APY). The rule will come into effect on October 1, 2022.

Important facts

  • As per notification those who are already participating in the scheme will cease to be a part of it from October 1. However, they will receive the money deposited in their respective accounts.

  •  If a subscriber, who has joined on or after October 1, 2022, is later found to be an income tax payer on or before the date of application, the APY account will be closed and the pension amount accumulated till now will be given to the subscriber

  • Income tax payer is a person who is liable to pay income tax as per the Income Tax Act, 1961 as amended from time to time.

About Atal Pension Yojana (APY)

  • Launched -  2015 

Purpose

  • To provide social security to the people working in the unorganized sector as the people working in such sectors mainly belong to the low income group.

Eligibility

  • Any Indian citizen in the age group of 18-40 years having a savings bank account / post office savings bank account.

  • The minimum period of contribution by the subscriber under APY shall be 20 years or more.

  • It is administered by Pension Fund Regulatory and Development Authority (PFRDA).

Pension under the APY

  • Under the scheme a subscriber receives a minimum guaranteed pension of Rs 1000 to Rs 5000 per month from the age of 60 years, depending upon his contribution. 

  • In the event of the death of the pensioner, the amount of pension will be given to his/her spouse.

  • In case of death of both the subscriber spouse, the pension amount deposited till the age of 60 years of the subscriber will be returned to the nominee.

By admin: Aug. 13, 2022

7. 7.3 percent of the population in India has cryptocurrencies: UNCTAD report

Tags: Economy/Finance

According to the report of UNCTAD, a UN trade and development body, 7.3 percent of the Indian population held cryptocurrencies in 2021.

Highlight of the report

  • According to the report Global use of cryptocurrencies has increased exponentially during the COVID-19 pandemic, including in developing countries.

  • 15 of the top-20 economies in terms of the share of the population holding cryptocurrencies include developing economies.

  • Ukraine is on the top in the list with 12.7 per cent, followed by Russia (11.9 percent), Venezuela (10.3 percent), Singapore (9.4 per cent), Kenya (8.5 per cent) and the US (8.3 percent).

  • India ranks seventh in the list, while Pakistan is at 15th with 4.1 per cent.

  • The report said that digital currency is being used to fight inflation.

What is Digital currency?

  • It refers to any mode of payment that is done purely electronically.

  • This is accounted for and transferred using an online system.

  • A well-known form of digital money is the cryptocurrency bitcoin.

What is cryptocurrency?

  • A cryptocurrency is a virtual currency used for financial transactions. 

  • It uses blockchain technology for various transactions. 

  • Earlier, the RBI has issued a circular prohibiting use of these virtual currencies.

  • Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems.

  • Bitcoin is the first decentralized cryptocurrency.

By admin: Aug. 13, 2022

8. Govt to bring model by-laws to govern all Primary Agricultural Cooperative Societies

Tags: Economy/Finance National News

Union Home and Cooperation Minister Amit Shah has said that the government will bring a model bye-law to govern all Primary Agriculture Cooperative Societies (PACS) in the country.

Important facts

  • He was addressing a national conference on rural cooperative banks organised by the Ministry of Cooperation and the National Federation of State Cooperative Banks (NAFSCOB) at Vignan Bhavan in New Delhi on 12 August.

  • He said that sick and discontinued packs should be revived or taken for liquidation.

  • PACS will not be viable just by giving agriculture loans, they should diversify their business.

  • He stressed the need to set up more than 2 lakh new PACS across the country to achieve the target of providing agri-finance of Rs 10 lakh crore through cooperatives.

  • Presently there are more than 95,000 packs, of which only 63,000 packs are operational.

  • The implementation of these model bye-laws will depend on the states as cooperatives are a subject in the State List (Schedule VII).

What are Primary Agricultural Cooperative Societies (PACS)? 

  • These are grassroots level cooperative credit institutions that provide short-term and medium-term agricultural loans to farmers for various agricultural and agricultural activities.

  • It works at the gram Panchayat and village level.

  • The first Primary Agricultural Credit Society (PACS) was set up in 1904.

  • PACS are registered under the Co-operative Societies Act and regulated by RBI.

Objectives of PACS

  • Raise capital for the purpose of making loans

  • Supporting members' essential activities

  • Collect deposits from members with the goal of improving their savings habit

  • Arrange for the supply and development of improved breeds of livestock to the members

  • Supply agricultural inputs and services to members at reasonable prices

By admin: Aug. 13, 2022

9. Retail inflation in India eases to 6.71% in July

Tags: Economy/Finance

India's retail inflation eased to 6.71% in July on moderation in food inflation, according to data from the National Statistical Office, but remained well above the 4-6% limit set by the Reserve Bank of India for the seventh consecutive month.

Important facts

  • Food inflation in July 2022 moderated to 6.75% as against 7.75% in June, according to the data.

  • Retail inflation remained above 7% in the first three months of the current fiscal.

  • Retail inflation remained elevated despite a fall in vegetable and edible oil and other commodity prices.

  • In such a situation, the RBI may make another hike in the policy rate in the proposed monetary policy review at the end of September.

  • According to the data, the main reason for the moderation in retail inflation in July is the reduction in vegetable and edible oil prices. In terms of fuel and power, prices remain high.

  • As per the data, inflation in vegetable and oil and fat segments moderated in July to 10.90 per cent and 7.52 per cent, respectively.

  • In the month of June, it was 17.37 percent and 9.36 percent respectively.

  • Fuel inflation stood at 11.76 per cent in July as against 10.39 per cent earlier.

  • India's factory output, as measured by the Index of Industrial Production (IIP), fell to 12.3 per cent in the month of June, compared to 19.6% in May.

  • Manufacturing sector output grew 12.5% in June 2022.

  • Mining production grew by 7.5% and electricity generation by 16.4% in June this year.

  • The index rose 12.7% in April-June 2022, compared to a rise of 44.4% in the same period a year ago.

What is CPI based inflation or retail inflation?

  • CPI (Consumer Price Index) monitors retail prices at a certain level for price movement of a particular commodity, goods and services at rural, urban and all India levels.

  • The change in the price index over a period of time is known as CPI-based inflation, or retail inflation.

  • CPI formula - (Price of basket in current period / Price of basket in base period) x 100

By admin: Aug. 12, 2022

10. India-UK conclude fifth round of FTA talks

Tags: Economy/Finance International News

India and the United Kingdom (UK) concluded the fifth round of talks for an FTA on the 29th of last month.

Important facts

  • In the fifth round of talks, technical experts from both sides came together to discuss 15 policy areas.

  • Currently, India is holding FTA talks with some of its trading partners including the European Union, Canada and Israel.

Consensus between both countries

  • Officials in India and the UK will continue to work intensively throughout the summer to finalize talks on a comprehensive and balanced free trade agreement by the end of October 2022.

  • UK agrees to end duties on Indian rice and textile items.

  • India may allow duty-free entry of British apples, medical equipment and machinery manufactured in the UK.

  • India initially proposed an early harvest agreement or interim FTA that would be ready by Diwali.

  • Through this agreement, India-UK bilateral trade is estimated to double to about $100 billion by 2030.

  • An agreement is also expected to be reached on mutual recognition of higher education qualifications.

  • India is likely to get more skill visas, as the UK currently faces a shortage of experts in the IT and programming sectors.

  • The India-UK FTA agreement is also expected to give a boost to the domestic textile sectors.

What is Free Trade Agreement (FTA)?

  • Under this agreement, customs duties, regulatory laws, subsidies and quotas etc. are simplified on the products under import-export between two countries.

  • Its main objective is to simplify trade.

  • A major advantage of FTA is that the cost of production of the two countries between which this agreement is made becomes cheaper as compared to other countries.

  • This encourages trade and gives impetus to the economy.