1. PM Modi meets Doug McMillan, CEO of Walmart
Tags: Economy/Finance International Relations
Prime Minister Narendra Modi held a meeting with Doug McMillan, CEO of American multinational retail corporation Walmart.
An overview of the news
The purpose of the meeting between PM Modi and Doug McMillan was to discuss and explore potential areas of collaboration, investment and partnership between the Government of India and Walmart.
The meeting reflects the importance of the economic relationship between India and Walmart. The discussions covered topics such as trade, investment opportunities and promoting a conducive business environment in India.
The meeting discussed opportunities to leverage digital technologies and innovation in the retail sector.
The discussion centered around sustainable business practices, environmental initiatives and social responsibility.
Significance of the meeting
The meeting between PM Modi and Walmart CEO Doug McMillan highlights the importance of promoting economic partnership and exploring investment opportunities between India and Walmart.
It highlights the potential for cooperation in various sectors, employment generation, economic growth and contribution to sustainable development in India.
About Walmart
It is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.
It was founded in 1962 by Sam Walton.
It has grown to become one of the world's largest retail chains.
It operates thousands of stores globally, serving millions of customers.
It offers a wide range of products, including groceries, apparel, electronics, household goods, and more.
2. RBI invites firms to participate in Greenwashing TechSprint
Tags: Economy/Finance National News
RBI has announced its participation in the Global Financial Innovation Network (GFIN) greenwashing techsprint.
An overview of the news
The Reserve Bank of India (RBI) has invited firms to participate in the Greenwashing TechSprint to develop technology solutions to detect incidents of greenwashing in financial products.
TechSprint is part of RBI's efforts to promote sustainable finance and ensure that financial products marketed as green or sustainable are actually aligned with environmental objectives.
TechSprint is open to firms and individuals who can provide innovative technology solutions to detect greenwashing in financial products using technologies such as natural language processing and artificial intelligence.
Techsprint can provide a platform for collaboration between tech firms, financial institutions and regulators to develop solutions that can increase transparency and trust in the market for sustainable finance.
The RBI has identified sustainable finance as a key priority area, and has taken several initiatives to promote green finance and integrate environmental considerations into financial decision making.
What is Greenwashing?
Greenwashing refers to the practice of making false or misleading claims about the environmental benefits of a product or service.
It is a marketing tactic used by companies to make their products appear more environmentally friendly or sustainable.
Greenwashing can take various forms, such as using vague or exaggerated language, making unsubstantiated claims, or highlighting minor environmental benefits while ignoring significant environmental harms.
Greenwashing can be harmful as it can mislead consumers into making purchasing decisions based on false or incomplete information, leading to negative environmental impacts.
About Global Financial Innovation Network (GFIN)
This is an international network of financial regulators that seeks to foster innovation in the financial services sector.
It was established in 2018 by a group of 12 financial regulators, including the UK Financial Conduct Authority, the Monetary Authority of Singapore, and the US Consumer Financial Protection Bureau.
It aims to provide a platform for regulators to collaborate and share best practices on innovative financial products and services, as well as regulatory approaches to innovation.
3. CBIC rolls out Automated Return Scrutiny Module for GST returns
Tags: Economy/Finance National News
The Central Board of Indirect Taxes and Customs (CBIC) has recently launched the Automated Return Scrutiny Module for GST returns.
An overview of the news
This module will enable tax officers to scrutinize GST returns of centrally administered taxpayers based on data analytics and risks identified by the system.
The module identifies discrepancies in the returns and shows them to the tax officer, who can communicate with the taxpayer through the GSTN Common Portal to resolve any issues.
The Automated Return Scrutiny Module will help in streamlining the GST return scrutiny process and ensure that it is more efficient, transparent and effective.
According to the Finance Ministry, the introduction of this module is a significant step towards creating a more technology-driven tax administration system, which will not only improve compliance but also reduce the compliance burden for taxpayers.
About Central Board of Indirect Taxes and Customs (CBIC)
In India, it is a part of the Department of Revenue under the Ministry of Finance.
CBIC is responsible for the administration of indirect taxes such as GST, Customs Duty and Excise Duty in India.
The board was formed in 2019 as a result of the merger of the Central Board of Excise and Customs (CBEC) and the Central Board of Direct Taxes (CBDT).
CBIC is headed by a Chairman who is assisted by a number of members responsible for various areas such as GST, Customs, Legal and Administration.
The main functions of CBIC include policy-making, implementation, and administration of indirect taxes, and prevention of smuggling and evasion of taxes.
CBIC works towards creating a fair and efficient tax administration system, which is transparent and taxpayer friendly.
CBIC plays a vital role in ensuring compliance of tax laws and regulations in India.
4. Anti-Dumping Duty on Imported Optical Fiber from China, Korea, Indonesia
Tags: Economy/Finance National News
DGTR, an arm of the Ministry of Commerce, has recommended imposition of anti-dumping duty on imports of a certain type of optical fiber from China, Korea and Indonesia to protect the domestic industry from cheap inbound shipments.
An overview of the news
The Directorate General of Trade Remedies (DGTR) has recommended the duty after examination on dumped imports of 'Dispersion Unshifted Single-Mode Optical Fiber' from these countries.
The product is mainly applied to high-data rate, long distance and access network transportation.
Birla Furukawa Fiber Optics Pvt Ltd had asked on behalf of the domestic industry to initiate an anti-dumping investigation on this product.
Why was it recommended to impose an anti-dumping duty?
The DGTR in its findings found that the domestic industry has suffered material injury due to the dumped imports.
DGTR said in a notification that the presence of dumped imports in the Indian market has forced the applicant to sell the product at prices below the cost of sales, causing losses and adversely affecting the profitability standards of the domestic industry.
Therefore, the authority has recommended imposition of anti-dumping duty to protect the domestic industry from injury.
What is Dumping?
According to the World Trade Organisation (WTO), if a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product.
This is done by companies to grab market share in other countries from the local companies.
What is Anti- Dumping?
Anti-dumping duties are taxes imposed on imported goods to compensate for the difference between their export price and their normal value.
It is imposed to protect producers of competing products in the importing country from harm.
5. RBI imposed fine of Rs 1.73 crore on HSBC bank
Tags: Economy/Finance National News
HSBC Bank has been fined Rs 1.73 crore by the Reserve Bank of India (RBI) for violating the Credit Information Companies Rules 2006 (CIC Rules).
An overview of the news
The central bank has accused the bank of providing false information about its credit cards to credit information companies.
An investigation by the RBI has revealed that the bank had given wrong information about its expired credit cards as well.
The RBI has imposed a hefty fine of Rs 1.73 crore on the bank for violating its rules.
The RBI had inspected the financial position of HSBC Bank as on March 31, 2021, as part of its surveillance checks.
It was found in the inspection that the bank is not following many rules of RBI related to credit cards.
RBI has issued a show cause notice to HSBC Bank asking why it did not provide correct information as per CIC norms.
Penalties on two cooperative banks
Apart from HSBC Bank, RBI has also imposed penalties on two co-operative banks for violation of norms.
Thrissur Urban Cooperative Bank Ltd has been fined Rs 2 lakh for flouting gold loan norms.
Bhilai Nagrik Sahakari Bank has been fined Rs 1.25 lakh for not depositing unclaimed deposits in time under the Depositor Education and Awareness Fund Scheme (DEAF Scheme).
About Reserve Bank of India
RBI was established on April 1, 1935 as per the provisions of the Reserve Bank of India Act, 1934.
It started functioning from 1 April 1935.
The central office of the Reserve Bank was established in Kolkata which was permanently shifted to Mumbai in the year 1937.
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.
Before independence till 1942 RBI used to issue currency not only for India but also for Myanmar which was then known as Burma. However, it was discontinued after 1947.
Headquarters of RBI: Mumbai
Governor of RBI : Shaktikanta Das
6. 27th Meeting of the Financial Stability and Development Council
Tags: Economy/Finance National News
Union Finance and Corporate Affairs Minister Nirmala Sitharaman chaired the 27th Meeting of the Financial Stability and Development Council (FSDC) on 8th May in New Delhi.
An overview of the news
During the meeting of the Council, it was discussed that necessary policy and legislative reform measures can be formulated to further develop the financial sector.
This will not only help in increasing the financial access of the people but also enhance their overall economic well-being.
Highlights of the meeting
Regulators should maintain constant vigil to ensure that 'financial sector stability is a shared responsibility'.
Regulators should adopt a focused approach to reduce the compliance burden further and ensure a streamlined and efficient regulatory environment.
The regulators need to be proactive and ensure cyber-security preparedness of the information technology systems to reduce the risk of cyber-attacks.
Safeguarding the stability and resilience of the Indian financial ecosystem.
Regulators should conduct a special drive to facilitate the settlement of unclaimed deposits and claims in the financial sector.
Action Taken Report on Budget announcements made since 2019 was discussed.
Financial Stability and Development Council (FSDC)
It was set up on the recommendation of the Raghu Ram Rajan committee on “Financial Sector Reform”.
FSDC was set up by the Government of India in 2010.
Function of the FSDC
The Council monitors macro prudential supervision of the economy, including functioning of large financial conglomerates, and addresses inter-regulatory coordination and financial sector development issues.
It also focuses on financial literacy and financial inclusion.
7. 4th edition of G20 TechSprint competition launched by RBI and BIS
Tags: Economy/Finance National News
The Reserve Bank of India (RBI) and the Bank for International Settlements (BIS) launched the G20 TechSprint 2023 competition for cross-border payments innovation.
An Overview of the News
The competition focuses on three problem statements: AML/CFT, sanctions technology and CBDC platform.
The competition is open to global innovators and aims to showcase innovative technology solutions for cross border payments.
Techsprint fosters collaboration between financial institutions, technology providers and stakeholders to develop innovative solutions for cross-border payments.
Reserve Bank of India (RBI):
It was established on April 1, 1935 under the Reserve Bank of India Act, 1934.
Its central office was initially in Kolkata, but in 1937 it was permanently shifted to Mumbai.
It regulates banks and NBFCs under the Banking Regulation Act 1949 and RBI Act 1934 respectively.
It issued currency for India and Myanmar till 1942, but was discontinued after 1947.
Headquarters - Mumbai
Current Governor - Shaktikanta Das
About the G20
It is an international forum of the world's leading economies established in 1999.
Its primary objective is to promote international financial stability and sustainable economic growth.
The G20 serves as a forum to discuss and coordinate policies related to a wide range of economic and financial issues such as trade, investment, employment, energy and climate change.
8. 56th Annual General Meeting of Board of Directors of ADB
Tags: Economy/Finance International News
Finance Minister Nirmala Sitharaman attended the 56th Annual General Meeting of the Board of Directors of the Asian Development Bank (ADB) in Incheon, South Korea on May 2.
An overview of the news
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman led the delegation from the Indian side.
The meeting was attended by official delegations of ADB members, observers, non-governmental and civil society organizations, financial institutions and banks, and other private sector companies.
Sitharaman also participated in the annual meeting and focal events such as Governors Business.
She also participated as a panelist in the ADB Governors' Seminar on Policies to Support Asia's Rebound.
The functions of the Union Finance Minister included the following components:
Interaction with global economists, governors/finance ministers of ADB member countries, etc.
Bilateral engagement with countries and international organizations.
Interact with global business leaders and investors in roundtables.
Engagement with community diaspora.
Asian Development Bank (ADB)
It is a regional multilateral financial institution which focuses on the countries of Asia and Pacific region.
It was set up after a resolution was passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963.
It started functioning from 19 December 1966 with 31 member countries.
At present it has 68 members—of which 49 members are from within Asia and the Pacific and 19 outside.
Japan is the largest shareholder of the ADB and a Japanese has always been the head of the ADB.
President of ADB: Masatsugu Asakawa
Headquarters: Mandaluyong City, Manila, Philippines
9. Airtel Payments Bank introduces face authentication for Aadhaar-enabled Payment System (AePS)
Tags: Economy/Finance
Airtel Payments Bank in collaboration with National Payments Corporation of India (NPCI) introduced face authentication for Aadhaar-Enabled Payment System (AePS).
The new facility will be available across five lakh Airtel banking points and will enhance the accessibility and security of Aadhaar-based transactions.
An Overview of the News
Praveena Rai, Chief Operating Officer, NPCI welcomed the implementation of Airtel Payments Bank facility for AEPS transactions, which will increase the reach of Aadhaar-based transactions across the country.
In the first phase, Airtel Payments Bank will enable non-financial transactions such as balance inquiry and mini-statement.
As per NPCI guidance, Airtel Payments Bank will enable the functionality for other bank customers and also for the bank's customers at other banking outlets.
Airtel Payments Bank has partnered with NPCI to test digital payments through feature phones and interactive voice response (IVR) for digital payments in Tier-II and Tier-III cities.
Airtel Payments Bank:
It is a subsidiary of India's leading telecom company Bharti Airtel.
Launched in 2017, Airtel Payments Bank is India's first payments bank.
It aims at providing digital banking and financial services to the under-banked and unbanked population in the country.
The bank offers a range of services including savings accounts, current accounts, money transfers, bill payments and digital banking services.
Airtel Payments Bank operates through a network of Banking Points, which include Airtel Retail Stores, Authorised Banking Points and Partner Outlets.
Airtel Payments Bank is a licensed entity under the Reserve Bank of India (RBI) and operates as a semi-closed wallet, which means customers can use it for transactions only with authorised merchants of the bank.
Airtel Payments Bank has won several awards for its innovative digital banking solutions, including the Best Digital Wallet Award at the India Digital Awards 2018 and the Best Payments Bank Award at the Indian Retail and E-Retail Congress and Awards 2018.
COO of Airtel Payments Bank -Ganesh Ananthanarayanan
MD & CEO of Airtel Payments Bank - Anubrata Biswas
10. Microsoft launches two new initiatives to support Indian SMBs
Tags: Economy/Finance
Microsoft India launched two new initiatives to support small and medium-sized businesses (SMBs) in their digital transformation journey.
An Overview of the News
These initiatives are aimed at helping Indian SMBs solve their business challenges, improve operations, drive efficiency and accelerate growth. Here are the key points of the initiative:
Microsoft for Small and Medium Businesses:
- It is a dedicated website designed to bring together business owners and entrepreneurs in India to network with peers, enhance their skills and achieve holistic growth.
The website offers an SMB Academy, which provides digital skills training, and access to Microsoft's curated business and technology courses.
The website provides inspiring stories from businesses across the country, various Microsoft solutions to meet organisational needs and easy access to Microsoft's vast ecosystem of over 17,000 partners in the country.
Digital Transformation Helpline:
It is a dedicated helpline that provides support to SMBs to help them navigate their technology adoption and deployment journey.
The helpline provides expert guidance and assistance in leveraging technology solutions that best address their business challenges, improve operations, increase efficiency and accelerate growth.
SMBs can contact the helpline at 1800-102-1147.
Microsoft is committed to digitally transforming the SMB ecosystem in India with trusted technology, resources and an extensive partner ecosystem.
Microsoft is working closely with SMBs to help them thrive in today's digitally driven economy.
Microsoft is conducting multi-city experiential events like Techmart to help SMBs with their digital transformation journey.
About Microsoft Corporation
It is a multinational technology corporation based in Redmond, Washington, best known for developing software products such as the Windows operating system, Microsoft Office, and web browsers such as Internet Explorer and Edge.
Established - April 4, 1975
Founders - Bill Gates, Paul Allen
Headquarters -One Microsoft Way Redmond, Washington, US
