1. 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.
2. NHPC inks MoU with Maharashtra Government
Tags: National Economy/Finance National News
State-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.
3. RBI Governor launches financial inclusion dashboard Antardrishti
Tags: Economy/Finance National News
Reserve 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
4. SBI launches Project Kuber in Bengaluru
Tags: Economy/Finance State News
State 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.
5. IRDAI issues draft Bima Vahaks guidelines
Tags: Economy/Finance National News
IRDAI recently came out with draft guidelines for 'Bima Vahaks (BV)'.
An overview of the news
It seeks to establish a dedicated distribution channel at the level of Gram Panchayats.
The guidelines propose Corporate Bima Vahaks and Individual Bima Vahaks for the distribution channel.
Corporate Bima Vahak would be legal personsregistered in accordance with the respective laws and engaged by an insurer. Individual Bima Vahak could be any individual appointed by an insurer or appointed by a Corporate Bima Vahak.
The BVs, both corporate and individual, would be authorised to undertake activities like the collection of proposal information, and KYC documents and coordinate claims-related services.
As per the draft, every insurer will have to provide alternative mode for payment of premium by prospects or policyholders.
Objective of the guidelines
This initiative aims to improve accessibility and availability of insurance in every nook and corner of the country.
Insurance Regulatory Development Authority of India (IRDAI)
IRDAI is the regulatory body responsible for overseeing and regulating the insurance industry in India.
It was set up to promote and regulate the insurance sector in India.
It was established on April 1, 2000, under the provisions of the Insurance Regulatory and Development Authority Act, 1999.
The primary role of the IRDAI is to regulate and promote the insurance industry in India.
6. UPI hits record 9 billion transactions worth Rs 14 lakh crore
Tags: Economy/Finance National News
The Unified Payments Interface (UPI) registered more than nine billion transactions in May 2023 amounting to over 14 lakh crore rupees.
An overview of the news
According to the National Payments Corporation of India NPCI, UPI recorded a total 9.41 billion transactions in May 2023.
UPI had recorded 8 billion transactions in January this year, followed by 7.5 billion in February, 8.7 billion in March, and 8.89 billion in April.
In Financial Year 2022-23, the payment system processed a total of 83 billion transactions, amounting to a value of 139 lakh crore rupees.
India's homegrown payments system UPI is one of the globally accepted payment systems and has emerged as a trusted payment mode ever since its launch in 2016.
The report titled "The Indian Payments Handbook - 2022-27" said that the share of UPI in the total transaction volume in the retail segment during 2022-23 was around 75 per cent.
The Indian digital payments market is expected to reach 411 billion transactions in FY 2026-27 from 103 billion in FY 2022-23.
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.
National Payments Corporation of India (NPCI)
NPCI, an umbrella organization for operating retail payment and settlement systems in India, has been initiated by the 'RBI' and the 'Indian Banks' Association' (IBA) under the 'Payment and Settlement Systems Act, 2007'.
It is a 'not-for-profit' company established under the provisions of Section 25 of the Companies Act 1956 (as amended in 2013), with the objective of providing physical and electronic payment infrastructure to the entire banking system in India.
7. Govt appoints Ashwani Kumar as UCO Bank MD & CEO
Tags: Economy/Finance Person in news
The Appointments Committee of the Cabinet (ACC) has approved the appointment of Ashwani Kumar, Executive Director, Indian Bank, as the Managing Director and CEO of UCO Bank.
An overview of the news
Ashwini Kumar will replace Soma Shankar Prasad, who retired on May 31.
The Center had appointed Prasad as the MD and CEO of UCO Bank in December 2021.
Ashwani Kumar will head the public sector bank for a period ofthree years from June 1.
According to an order issued by the Department of Personnel and Training, Kumar will also be eligible for extension of office for two years or until further orders, whichever is earlier, after review of his performance.
Kumar, a Chartered Accountant, has served in various offices of five public sector banks - Bank of Baroda, Corporation Bank, Oriental Bank of Commerce, Punjab National Bank and Indian Bank.
His work experience includes working as the Head of the Wholesale Banking Division and several branches (including industrial finance branches).
About UCO Bank
UCO Bank is a leading public sector bank in India with a rich history dating back to 1943.
It was established as the United Commercial Bank and later renamed UCO Bank in 1985.
UCO Bank is a government-owned bank and operates under the administrative control of the Ministry of Finance, Government of India.
It is regulated by the Reserve Bank of India (RBI) and complies with banking regulations and guidelines.
UCO Bank has a widespread branch network across India, serving customers in both urban and rural areas.
8. India's defence exports increased 23 times since 2014
Tags: National Economy/Finance National News
India's defence exports have grown 23-fold since 2014, reaching an all-time high of nearly Rs 16,000 crore in the last financial year.
An Overview of the News
The development reflects India's progress in the global defence manufacturing sector.
The country's defence industry has shown its capability in design and development by exporting to more than 85 countries.
Presently, 100 firms are exporting defence products from India.
The Government has implemented policy initiatives and reforms in the last nine years to boost defence exports.
The Atma Nirbhar Bharat initiative encourages indigenous design, development and manufacturing of defence equipment, thereby reducing dependence on imports in the long run.
Expenditure on defence purchases from foreign sources has declined from 46% in 2018-19 to over 36% in December last year.
India currently exports aircraft (Dornier-228), artillery guns, BrahMos missiles, Pinaka rockets and launchers, radars, simulators and major platforms such as armoured vehicles.
There is a growing global demand for India's indigenous products including LCA-Tejas, Light Combat Helicopter, Aircraft Carrier and MRO activities.
'Atmanirbhar Bharat':
Atmanirbhar Bharat translates to 'self-reliant India' and is a concept promoted by Prime Minister Narendra Modi for the economic development of India.
It aims to make India more efficient, competitive and resilient in the global economy.
Modi first used the term in 2014 while focusing on national security, poverty alleviation and Digital India initiative.
Educational institutions like Visva-Bharati University played a role in furthering self-reliance in education.
9. 30 percent financial support from the Center to promote green shipping
Tags: National Economy/Finance National News
Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal has announced 30 per cent financial assistance to promote green shipping.
An overview of the news
Ports, Shipping and Waterways Minister Sarbananda Sonowal made five important announcements focusing on green shipping and digitization of ports at the end of the second Chintan Shivir of the ministry held in Munnar, Kerala.
Green Hydrogen hubs will be developed at the Deendayal Port at Kandla and Chidambaranar Port at Tuticorin.
Two tugs each will be procured for Jawaharlal Nehru, VO Chidambaranar, Paradip and Deendayal ports under the Green Tug Transition Programme.
A single window portal will be prepared to facilitate booking of river and sea cruises.
Jawaharlal Nehru and Turicorin ports will be made smart ports by next year.
What is Green Shipping?
Green shipping is when people or goods are transported via ships using the minimum resources and energy possible to protect the environment from pollutants generated by the ships.
Green shipping promotes clean practices by implementing emission control, efficient port management and equipment management.
10. EPFO adds 1.39 crore members during financial year 2022-23
Tags: National Economy/Finance National News
The Employees' Provident Fund Organisation (EPFO) has added 1.39 crore members during the financial year 2022-23.
An overview of the news
Provisional payroll data of EPFO highlights that it added over 13 lakh members in March 2023.
According to the Ministry of Labor and Employment, out of the 13.40 lakh members added during March, over seven lakh new members have come under the EPFO ambit for the first time.
Among newly joined members, the highest enrollment is in the age group of 18 to 21 years with 2.35 lakh members, followed by about two lakh members in the age group of 22 to 25 years.
The data also highlights that more than 10 lakh members rejoined the EPFO. These members changed their jobs and rejoined the establishments covered under EPFO.
About EPFO
Employees Provident Fund Organisation (EPFO) is a statutory organisation set up under the Union ministry of Labour and Employment was set up in 1951 by an Ordinance issued by the President.
Later Parliament passed the Employees' Provident Funds Scheme, act 1952.
It is the country’s largest social security organisation.
EPFO assists the Central Board of Trustees in the administration of a provident fund scheme, pension scheme and an insurance scheme for the registered establishments in India.
