Economy

 

Indian Economy Current Affairs, important for Competitive Exams.

India becomes 3rd largest exporter of smartphones globally

India has become the 3rd largest exporter of smartphones globally, climbing from the 23rd rank in 2019. In November 2024, the country’s smartphone exports surpassed ₹20,000 crore in a single month, representing a 92% increase compared to November 2023 (₹10,634 crore).

This milestone exceeds the expectations set under the Production-Linked Incentive (PLI) scheme, which aimed to export 70-75% of production value in FY 2024-25. Union Minister Ashwini Vaishnaw celebrated this achievement, calling it a “Making Bharat Story.”

Sanjay Malhotra appointed new Governor of the Reserve Bank of India (RBI)

Sanjay Malhotra, the current Revenue Secretary at the Ministry of Finance, has been appointed as the new Governor of the Reserve Bank of India (RBI). His tenure will begin on December 11, 2024, and last for three years.

A 1990-batch IAS officer from the Rajasthan cadre, Malhotra is an Engineering graduate from IIT Kanpur and holds a Master’s degree in Public Policy from Princeton University. He has held various key positions across sectors such as finance, taxation, power, information technology, and mines. As Revenue Secretary, he has been pivotal in formulating tax policies.

Malhotra succeeds Shaktikanta Das, who has completed a successful six-year term as the RBI Governor. Das, recognized for his leadership during critical times, will conclude his term on December 10, 2024.

RBI keeps repo rate unchanged; Cuts Cash Reserve Ratio by 50 basis points to 4%;

The Reserve Bank of India (RBI), in its December monetary policy meeting, decided by a 4:2 majority to keep the policy repo rate unchanged at 6.50% for the 11th consecutive time since February 2023. The SDF rate remains at 6.25%, and the MSF rate and Bank Rate at 6.75%. The RBI also reduced the Cash Reserve Ratio (CRR) by 50 basis points to 4%, releasing ₹1.16 lakh crore to ease liquidity stress.

RBI Governor Shaktikanta Das emphasized the commitment to price stability amid inflationary pressures and revised the FY25 inflation forecast to 4.8% from 4.5%. The MPC retained its neutral stance, focusing on aligning inflation with the target while supporting growth. The policy meeting was held on December 4-6, 2024.

RBI Raises UPI Lite Wallet Limit to ₹5,000 and Offline Transaction Limit to ₹1,000

On 4 December 2024, the Reserve Bank of India (RBI) increased the UPI Lite wallet limit from ₹2,000 to ₹5,000 and raised the offline transaction limit from ₹500 to ₹1,000 per transaction. These changes are effective immediately, aiming to enhance convenience and security for digital payments.

Under the new guidelines, UPI Lite allows transactions of up to ₹1,000 per payment, with a total wallet cap of ₹5,000. Previously, the offline framework permitted a maximum of ₹500 per transaction and a wallet limit of ₹2,000. This update aligns with the RBI’s efforts to promote digital transactions and provide a more inclusive payment experience.

The changes are implemented under Sections 18 and 10(2) of the Payment and Settlement Systems Act, 2007. The announcement builds on an earlier update by RBI Governor Shaktikanta Das in October 2024, highlighting the growing significance of UPI in India’s economy.

In October 2024, UPI achieved a record-breaking 16.58 billion financial transactions in a single month, reflecting its pivotal role in revolutionizing India’s payment ecosystem since its launch in 2016 by the National Payments Corporation of India (NPCI).

43rd Edition of the India International Trade Fair (IITF) at Pragati Maidan, New Delhi from 14 to 27 November

The 43rd Edition of the India International Trade Fair (IITF) is set to take place at Pragati Maidan in New Delhi from November 14 to November 27, 2024. This annual event is one of the most prominent trade fairs in India, attracting businesses, exhibitors, and visitors from across the country and around the world.

The theme of this year’s fair is Viksit Bharat in 2047. The focus state this year is Jharkhand while Bihar and Uttar Pradesh are the partner states.

The fair is divided into two parts:

  • Business Days: November 14-18, exclusively for business visitors.
  • Public Days: November 19-27, when the fair opens to the general public.

The fair will be open daily from 9:30 AM to 7:30 PM.
Entry points are through Gates 3 and 4 (Bhairon Marg) and Gates 6 and 10 (Mathura Road).

Maldivian President decides to introduce India’s UPI in Maldives

President Dr. Mohamed Muizzu has decided to introduce India’s Unified Payment Interface (UPI) in the Maldives, based on a cabinet recommendation. This initiative is expected to boost the Maldivian economy by promoting financial inclusion, improving transaction efficiency, and strengthening digital infrastructure. Indian tourists will be able to use UPI apps to make payments in Indian rupees without converting currency.

A consortium, including banks, telecoms, state-owned companies, and fintech firms, will be set up to implement UPI in the Maldives. The move follows a Memorandum of Understanding (MoU) signed in August 2024 between India and the Maldives, as part of India’s efforts to share developmental tools with partner nations. UPI is already in use in several countries, including the UAE, Sri Lanka, and Singapore.

Noel Tata appointed chairman of Tata Trusts

Noel Tata has been appointed as the chairman of Tata Trusts, following the passing of his half-brother, Ratan Tata, on October 9, 2024. Ratan Tata, who led the Tata Group for decades and shaped its future, left behind a significant legacy in Indian industry.

Noel Tata, the son of Naval and Simone Tata, takes on this role at a critical time for the Tata Group and its trusts. With extensive experience in leadership roles within the Tata Group, he is expected to uphold the values and principles established by Ratan Tata.

RBI Kept Repo rate remains unchanged at 6.50% for tenth time in a row

On October 9, 2024, the Reserve Bank of India (RBI) kept the policy repo rate steady at 6.5% for the tenth consecutive time. Five out of six members of the Monetary Policy Committee (MPC) supported the decision. Other key rates, such as the Standing Deposit Facility (SDF) rate at 6.25% and both the Marginal Standing Facility (MSF) rate and the bank rate at 6.75%, also remained unchanged.

RBI Governor Shaktikanta Das announced a shift in the central bank’s monetary policy stance from “withdrawal of accommodation” to “neutral.” This change allows the RBI to balance inflation control with economic growth support. Despite risks from rising global crude oil prices and geopolitical tensions, India’s inflation rate eased to 3.65% in August, within the RBI’s target range of 2-6%, though food inflation remained high at 5.65%.

The neutral stance provides the RBI with flexibility to respond to inflationary pressures and growth objectives without rushing policy decisions.

India’s foreign exchange reserves reached a record high, crossing the USD 700 billion mark for the first time

India’s foreign exchange reserves reached a record high, crossing the USD 700 billion mark for the first time. As of September 27, 2024, the reserves surged by USD 12.588 billion to USD 704.885 billion, according to the Reserve Bank of India (RBI). This is a significant increase from the previous high of USD 692.296 billion, offering a robust economic buffer against global financial uncertainties.

The largest part of the reserves, Foreign Currency Assets (FCA), stood at USD 616.154 billion, with the country’s gold reserves valued at USD 65.796 billion. These reserves now cover more than a year’s worth of projected imports, showcasing India’s economic resilience. In 2023, India added around USD 58 billion to its reserves, contrasting with the USD 71 billion decline in 2022.

Foreign exchange reserves, held in currencies like the US Dollar, Euro, Yen, and Pound, are vital for managing currency volatility. The RBI has been managing the rupee’s stability by buying dollars when the rupee strengthens and selling when it weakens, making the rupee one of Asia’s most stable currencies. This stability enhances the attractiveness of Indian assets to international investors.

Reconstitution of Monetary Policy Committee

The Indian government has reconstituted the Monetary Policy Committee (MPC) on 1 October 2024, under the Reserve Bank of India (RBI) Act, 1934. This committee plays a crucial role in setting the country’s monetary policy, including interest rates. The MPC’s decisions directly impact inflation rates, economic growth, and overall financial stability in India.

The reconstituted MPC consists of six members:

  1. Governor of the Reserve Bank of India – Chairperson, ex officio.
  2. Deputy Governor of the Reserve Bank of India, in charge of Monetary Policy – Member, ex officio.
  3. One officer of the Reserve Bank of India, nominated by the Central Board – Member, ex officio.
  4. Prof. Ram Singh, Director, Delhi School of Economics, University of Delhi – Member.
  5. Saugata Bhattacharya, Economist – Member.
  6. Dr. Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development, New Delhi – Member.

The members appointed by the Central Government will hold office for a period of four years or until further orders, whichever is earlier. 

Rising Cash Circulation Despite Surge in Digital Transactions in India

India leads in digital financial transactions, but cash in circulation has more than doubled in the last eight years. According to RBI, the currency in circulation increased significantly after the 2016 demonetization of Rs 1000 and Rs 500 notes. The cash in circulation stood at Rs 34.70 lakh crore as of September 6, 2024, up from Rs 16.5 lakh crore before demonetization.

Demonetization aimed to eliminate black money and encourage digital payments. After demonetization, the value of banknotes in circulation fell by 20.2% by March 2017.

UPI transactions increased tenfold, from 12.5 billion in 2019-20 to 131 billion in 2023-24, making up 80% of digital payment volumes. A PwC report predicts digital transactions will grow from 159 billion in 2023-24 to 481 billion by 2028-29. UPI payments grew by 45% annually, with transaction values exceeding Rs 20.65 trillion for three consecutive months. In July 2024, daily UPI transactions averaged Rs 66,590 crore.

Experts suggest the rise in cash is due to economic growth and low-value transactions avoiding GST.

India’s core sector output records 6.1 per cent growth in July 2024

India’s core sector grew by 6.1% in July 2024. The Index of Eight Core Sector Industries measures key sectors like cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products, and steel. These sectors have a 40% weight in the Index of Industrial Production.

  • Steel production growth reached a three-month high of 7.2%.
  • Cement output hit a four-month high of 5.5%, reflecting increased construction activity.
  • Petroleum production rose to an eight-month high of 6.6%.
  • Fertilizer output was at a seven-month high of 5.3%, supported by strong kharif sowing due to a better monsoon.
  • Coal output increased by 6.8%, and electricity generation rose by 7.0%.

Q.: What percentage of the Index of Industrial Production is contributed by the Eight Core Sector Industries?

(A) 30%
(B) 50%
(C) 35%
(D) 40%

Answer: (D) 40%
The Index of Eight Core Sector Industries measures key sectors like cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products, and steel. These sectors have a 40% weight in the Index of Industrial Production.

Hurun India Rich List 2024: Gautam Adani replaces Mukesh Ambani as India’s Richest Person

Hurun India Rich List 2024 was released on 27 August 2024, showcasing shifts in wealth rankings among India’s top business magnates.

  • Gautam Adani secured the top spot, surpassing Mukesh Ambani, with wealth increasing by 95% to approximately ₹11.6 lakh crore.
  • Mukesh Ambani held the second position with a total wealth of ₹10.1 lakh crore.
  • The Shiv Nadar family ranked third, followed by Cyrus S. Poonawalla and Dilip Shanghvi in the top five.

Consistently in the Top 10 for the past five years: Gautam Adani, Mukesh Ambani, Shiv Nadar, Cyrus S. Poonawalla, Gopichand Hinduja, and Radhakishan Damani.

The total number of Indian billionaires rose to 334, with combined wealth amounting to ₹159 lakh crore, exceeding the combined GDP of Saudi Arabia and Switzerland. 55 tech entrepreneurs appeared on the list, collectively holding ₹2,87,100 crore, with an average age of 40. India’s number of billionaires increased by 29% to a record 334, while China’s number of billionaires declined.

  • The youngest billionaire is 21-year-old Kaivalya Vohra, co-founder of Zepto.
  • The youngest self-made woman is Neha Bansal, co-founder of Lenskart.
  • The list includes 52 founders of 29 unicorns, highlighting India’s growth as a hub for wealth creation in Asia.

The 2024 Hurun India Rich List includes 1,539 individuals, representing wealth creators from various sectors, including startups, family businesses, private equity, next-gen leaders, and film stars.

Q.: Who is ranked as India’s Richest Person, as per the Hurun India Rich List 2024?

A) Mukesh Ambani
B) Shiv Nadar
C) Cyrus S. Poonawalla
D) Gautam Adani

Answer: D) Gautam Adani
Gautam Adani secured the top spot, surpassing Mukesh Ambani, with wealth increasing by 95% to approximately ₹11.6 lakh crore.

RBI Governor Shaktikanta Das received an “A+” rating in the Global Finance Central Banker Report Cards for the second consecutive year

Shaktikanta Das (RBI Governor) received an “A+” rating in the Global Finance Central Banker Report Cards for the second consecutive year. Das shares the top honor with Christian Kettel Thomsen of Denmark and Thomas Jordan of Switzerland. The RBI’s policies under Das’s leadership have been effective in managing inflation and economic growth in India.

Global Finance magazine evaluates central bank governors from nearly 100 key economic regions worldwide. The grading system ranges from “A+” to “F”, assessing factors like inflation control, economic growth, currency stability, and interest rate management. The Central Banker Report Cards have been a tradition since 1994, recognizing leaders for originality, creativity, and tenacity. Global Finance magazine has a global readership across 193 countries, influencing major investment and strategic decisions.

Q.: Who is the current Governor of the Reserve Bank of India (RBI) who received an “A+” rating in the Global Finance Central Banker Report Cards for the second consecutive year in Aug 2024?

a) Urjit Patel
b) Shaktikanta Das
c) Raghuram Rajan
d) D. Subbarao

Answer: b) Shaktikanta Das

Direct tax collections 24% higher at Rs 8.13 lakh crore

The Indian government’s gross direct tax collections for the fiscal year 2024-25 increased by 24% year-on-year, reaching Rs.8.13 lakh crore, compared to Rs.6.55 lakh crore in the previous year, as reported by the Central Board of Direct Taxes (CBDT). Net direct tax collections also rose by 22.5% to Rs.6.92 lakh crore, while tax refunds surged by 33.5% to Rs.1.2 lakh crore.

Key contributors to these collections include corporate tax, personal income tax, and various other taxes like securities transaction tax and equalization levy. Additionally, there was a significant increase in Income Tax Return (ITR) filings, with over 7.28 crore returns filed for the assessment year 2024-25, marking a 7.5% rise from the previous year. Notably, 72% of taxpayers opted for the New Tax Regime. The Ministry of Finance has urged taxpayers to verify their ITRs within 30 days of filing and encouraged those who missed the deadline to submit their returns promptly.

Q.: What was the percentage increase ( year-on-year) in the Indian government’s gross direct tax collections for the fiscal year 2024-25?

A) 20%
B) 22%
C) 24%
D) 26%

Ans : C) 24%
Indian government’s gross direct tax collections for the fiscal year 2024-25 increased by 24% year-on-year, reaching Rs.8.13 lakh crore, compared to Rs.6.55 lakh crore in the previous year.

Cabinet Committee on Economic Affairs (CCEA) approves 8 projects of Ministry of Railways

The Cabinet Committee on Economic Affairs (CCEA) on 9 Aug 2024, chaired by Prime Minister Narendra Modi, approved eight railway projects worth ₹24,657 crore. The projects will benefit 14 districts across seven states: Odisha, Maharashtra, Andhra Pradesh, Jharkhand, Bihar, Telangana, and West Bengal.

Key projects include:

  • Gunupur-Therubali and Junagarh-Nabrangpur lines in Odisha.
  • Malkangiri-Pandurangapuram line spanning Odisha, Andhra Pradesh, and Telangana.
  • Buramara-Chakulia rail route covering Jharkhand, West Bengal, and Odisha.
  • Bikramshila-Katareah rail route in Bihar.
  • Jalna-Jalgaon project in Maharashtra, enhancing connectivity to the UNESCO World Heritage site, Ajanta Caves.

The projects are crucial for transporting commodities like agricultural products, fertilizer, coal, iron ore, steel, and cement. Capacity enhancements are expected to add 143 million tonnes of freight traffic annually. These projects support climate goals and reduce logistics costs by leveraging the eco-friendly and energy-efficient nature of railways.

Question: What is the primary role of the Cabinet Committee on Economic Affairs (CCEA)?

A) To oversee foreign relations of India
B) To approve economic policies and projects
C) To manage defense strategies and operations
D) To regulate the education system in India

Answer: B) To approve economic policies and projects

Explanation:
The Cabinet Committee on Economic Affairs (CCEA) is is responsible for making crucial decisions related to the economic policies of the country, including the approval of significant economic projects, financial proposals, and policies that impact the country’s economy.

Surge in UPI Transactions, Reaches 20.64 Lakh Crore in July 2024, NPCI Reports

In July 2024, Unified Payments Interface (UPI)-based transactions surged to 20.64 lakh crore rupees, reflecting a 35% year-on-year increase, according to data released by the National Payments Corporation of India (NPCI).

The total number of UPI transactions grew by nearly 4% month-on-month to 14.44 billion, with an average daily transaction volume of 466 million. UPI is now gaining up to 60 lakh new users every month, driven by the integration of RuPay credit cards on UPI and its expansion into foreign countries.

The Reserve Bank of India’s (RBI) latest report on Currency and Finance (2023-24) highlights India’s emergence as a leading digital economy, supported by robust digital infrastructure, a dynamic fintech ecosystem, and favorable policies.

Q.: Unified Payments Interface (UPI) Transactions Reaches 20.64 Lakh Crore in July 2024. UPI is developed by?

A) Reserve Bank of India (RBI)
B) National Payments Corporation of India (NPCI)
C) Ministry of Finance
D) State Bank of India (SBI)

Ans : B) National Payments Corporation of India (NPCI)
In July 2024, Unified Payments Interface (UPI)-based transactions surged to 20.64 lakh crore rupees, reflecting a 35% year-on-year increase, according to data released by the National Payments Corporation of India (NPCI). UPI, is an Indian instant payment system developed by the National Payments Corporation of India (NPCI) in 2016.

India accounts for 48.5 percent of the global digital payments: RBI report

India accounts for nearly half of the world’s digital payments, holding a 48.5 percent share in global real-time payment volumes, according to a report by the Reserve Bank of India (RBI). The report also highlights India’s leadership in global remittances, receiving USD 115.3 billion in 2023.

Key points from the report include:

  • India’s digital economy makes up about a tenth of the GDP, expected to grow to a fifth by 2026.
  • Digital payments in India have grown with a compound annual growth rate (CAGR) of 50 percent in volume and 10 percent in value over the last seven years, amounting to 164 billion transactions worth Rs 428 lakh crore in 2023-24.
  • The digital revolution in India includes the India Stack, comprising biometric identification, the Unified Payments Interface (UPI), mobile connectivity, digital lockers, and consent-based data sharing.
  • Cybersecurity remains a significant challenge, with a sharp increase in security incidents from 53,117 in 2017 to 13,20,106 in January-October 2023, with unauthorized network scanning/probing accounting for over 80 percent of incidents.
  • India’s digital technology infrastructure, focusing on next-generation communication technologies like 6G and satellite networks, alongside expanding the 5G network to rural and uncovered urban areas, is identified as a key growth engine.
  • Achieving self-sufficiency in chip manufacturing is crucial for harnessing the full potential of the digital revolution.

Question : What percentage of the world’s digital payments is accounted for by India?

A) 35.2 percent
B) 48.5 percent
C) 52.1 percent
D) 60.7 percent

Answer: B) 48.5 percent
India accounts for nearly half of the world’s digital payments, holding a 48.5 percent share in global real-time payment volumes, according to a report by the Reserve Bank of India (RBI).

Budget 2024 Key Highlights

Finance Minister Nirmala Sitharaman presented her seventh straight Budget on July 23, 2024 for the fiscal 2024-25, surpassing the record of former Prime Minister Morarji Desai.

The Budget focused on provisioning for the agricultural sector, the introduction of schemes related to employment, loan schemes, announcements for financial support to the MSME sector, infrastructural development, and fiscal deficit projection at 4.9% with a commitment to reducing it down to 4.5%.

The government cut customs duties and make changes in the capital gain taxes. The “Taxation budget” comes in the form of a revision in tax slabs under the new tax policy.

Standard deduction for salaried employees hiked to ₹75,000, from ₹50,000 under the new income tax regime. The limit on employee contribution to pension has been increased to 14% from 10%.

Identified nine priorities for generating ample opportunities — Productivity and Resilience in Agriculture, Employment and Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing and Service, Urban Development, Energy Security, Infrastructure, Innovation, Research and Development and Next Generation Reforms.

Q.: Who set a record by presenting her seventh consecutive Budget on July 23, 2024?

A) Manmohan Singh
B) Arun Jaitley
C) Nirmala Sitharaman
D) Morarji Desai

C) Nirmala Sitharaman
Finance Minister Nirmala Sitharaman presented her seventh straight Budget on July 23, 2024 for the fiscal 2024-25, surpassing the record of former Prime Minister Morarji Desai.

Q.: What is the new standard deduction for salaried employees under the new income tax regime for the fiscal 2024-25?

A) ₹50,000
B) ₹60,000
C) ₹75,000
D) ₹90,000

Ans : C) ₹75,000
Standard deduction for salaried employees hiked to ₹75,000, from ₹50,000 under the new income tax regime.

Economic Survey: Projects real GDP growth of 6.5 to 7 percent for FY 2024-25

Economic Survey 2023-24 projects real GDP growth of 6.5 to 7 percent for FY 2024-25. On 22 July 2024, Finance Minister Nirmala Sitharaman tabled the survey in the Lok Sabha.

The survey highlights domestic growth drivers supporting economic growth in FY 2023-24, with merchandise and services exports likely to increase. Normal rainfall and a good southwest monsoon are expected to boost agriculture and rural demand. Structural reforms like GST and IBC are delivering results.

The Reserve Bank of India expects headline inflation to be 4.5 percent in FY 2025 and 4.1 percent in FY 2026, while the IMF projects 4.6 percent in 2024 and 4.2 percent in 2025.

Real GDP in FY 2024 was 20 percent higher than in FY 2020, with robust growth, inclusive development, reduced unemployment, lower multidimensional poverty, and higher labor force participation. The country’s real GDP grew by 8.2 percent in FY 2024, with stable consumption demand and improving investment demand. Net taxes at constant prices grew by 19.1 percent in FY 2024.

The global trade outlook for 2024 is positive, with merchandise trade expected to pick up, though corrections in financial market valuations could impact growth prospects.

MCQs on Economic Survey 2023-24

Q.: What is the projected real GDP growth for FY 2024-25 according to the Economic Survey 2023-24?

A) 5-6%
B) 6.5-7%
C) 7-8%
D) 4.5-5%

Ans : B) 6.5-7%
Economic Survey 2023-24 projects real GDP growth of 6.5 to 7 percent for FY 2024-25.

Q.: Who tabled the Economic Survey 2023-24 in the Lok Sabha?

A) Prime Minister Narendra Modi
B) Finance Minister Nirmala Sitharaman
C) Home Minister Amit Shah
D) President Ram Nath Kovind

Ans : B) Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman tabled the survey in the Lok Sabha.

Sensex closes above 80,000 for first time, Nifty at 24,302

On July 4, 2024, India’s benchmark Sensex achieved a historic milestone by closing above the 80,000 mark for the first time. The Sensex closed at a new record high of 80,049.67 points, marking a 0.08 percent increase. Similarly, the Nifty 50 index ended at 24,302 points, up 0.06 percent.

The Sensex, also known as the S&P BSE Sensex, is India’s premier stock market index. It represents the performance of the 30 largest and most actively traded companies listed on the Bombay Stock Exchange (BSE).

The NIFTY, officially known as the Nifty 50, is India’s broader stock market index. It comprises 50 of the most actively traded and liquid stocks listed on the National Stock Exchange (NSE). 

Q: What does the Sensex represent?

A) The performance of the top 50 companies listed on the NSE.
B) The performance of the top 30 companies listed on the BSE.
C) The performance of the top 100 companies listed on the BSE.
D) The performance of all companies listed on the NSE.

Ans : B) The performance of the top 30 companies listed on the BSE.
The Sensex, also known as the S&P BSE Sensex, is India’s premier stock market index. It represents the performance of the 30 largest and most actively traded companies listed on the Bombay Stock Exchange (BSE).

Q: Which index achieved a historic milestone by closing above 80,000 for the first time in July 2024?

A) Nifty 50
B) Sensex
C) Nifty Pharma
D) Nifty IT

Ans : B) Sensex
On July 4, 2024, India’s benchmark Sensex achieved a historic milestone by closing above the 80,000 mark for the first time.

Japan launches new banknotes with three-dimensional hologram technology

On July 3, 2024, Japan began issuing new 10,000 yen, 5,000 yen, and 1,000 yen banknotes. This redesign is the first since 2004.

The new banknotes feature three-dimensional hologram technology to combat counterfeiting, the first such use on any country’s currency.

Japanese Finance Minister Shunichi Suzuki stated that the new banknotes incorporate a universal design for the visually impaired and foreigners. The Bank of Japan announced that current banknotes will remain legal tender after the new bills are circulated.

Q: Which country first incorporated three-dimensional hologram technology on its currency to combat counterfeiting?

a) United States
b) Japan
c) Germany
d) Canada

Ans : b) Japan
On July 3, 2024, Japan began issuing new 10,000 yen, 5,000 yen, and 1,000 yen banknotes. The new banknotes feature three-dimensional hologram technology to combat counterfeiting, the first such use on any country’s currency.

53rd GST Council meeting held on June 22, 2024, in New Delhi

The 53rd meeting of the GST Council, presided over by Union Finance Minister Nirmala Sitharaman, took place at Bharat Mandapam in New Delhi on June 22 2024. The next GST Council meeting tentatively scheduled for mid to late August.

Decision’s of 53rd GST Council meeting,:

  • Aadhaar-based authentication: The council decided to implement a phased rollout of Aadhaar-based biometric authentication for registration throughout India. This aims to curb fake invoicing and improve compliance.
  • Tax rate changes:
    • Milk cans: A uniform 12% GST rate was set for milk cans.
    • Platform tickets: Platform tickets for railway travel will now be exempt from GST.
    • Cartons: The GST rate on cartons was reduced from 18% to 12% to provide relief to apple farmers in Himachal Pradesh and Jammu and Kashmir.
  • Relief for students: Hostel accommodation services with a monthly rent exceeding ₹20,000 will be subject to GST. However, hostels charging up to ₹20,000 per month will be exempt, providing relief for students.

GST Council in India:

Function:

  • Established under the Constitution to oversee the Goods and Services Tax (GST).
  • Acts as a joint forum between the Central Government (Union Finance Minister) and all Indian states and union territories (represented by their Finance Ministers).

Key Responsibilities:

  • Decides on GST tax rates (currently 5%, 12%, 18%, and 28%).
  • Determines exemptions for certain goods and services.
  • Sets deadlines for filing GST returns and compliance procedures.
  • Recommends changes to GST laws and regulations.
  • Addresses revenue sharing between central and state governments.

Q: Who chairs the meetings of the Goods and Services Tax (GST) Council?

a) The President of India
b) The Prime Minister of India
c) The Union Finance Minister
d) The Governor of the RBI

Ans : c) The Union Finance Minister
The 53rd meeting of the GST Council, presided over by Union Finance Minister Nirmala Sitharaman, took place at Bharat Mandapam in New Delhi on June 22 2024.

Q. How many tax rate slabs are currently recommended by the GST Council (as of June 2024)?

a) Two
b) Three
c) Four
d) Five

Ans : c) Four
GST tax rates (currently 5%, 12%, 18%, and 28%).

RBI keep Repo Rate unchanged at 6.5%, Ups FY25 GDP forecast to 7.2%

The Reserve Bank of India (RBI) decided to keep the policy repo rate unchanged at 6.50% for the eighth consecutive time. The Monetary Policy Committee (MPC) met on 5th, 6th, and 7th June 2024.

The standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.

RBI Governor Shaktikanta Das stated the inflation-growth balance is favorable and monetary policy must stay disinflationary, aiming for a 4% inflation target.

The RBI raised the growth projection to 7.2% from an earlier estimate of 7% for the current financial year.

Q: What is the current policy repo rate (unchanged at 6.50% for the eighth consecutive time) as decided by the Reserve Bank of India on 7 June 2024?

a) 6.25%
b) 6.50%
c) 6.75%
d) 7.00%

Answer: b) 6.50%

RBI approve the transfer of Rs 2.11 Lakh Crore as surplus to the Government

The Reserve Bank of India (RBI) approved transferring Rs 2,10,874 crore as surplus to the Central Government for the accounting year 2023-24. This decision was made during the 608th meeting of the Central Board of Directors of the RBI on 22 May 2024 in Mumbai.

  • The Board, chaired by RBI Governor Shaktikanta Das, decided to increase the Contingent Risk Buffer (CRB) to 6.50% for FY 2023-24.
  • The CRB was previously maintained at 5.50% during 2018-19 to 2021-22 and increased to 6% in 2022-23.
  • The meeting was attended by RBI Deputy Governors Dr. Michael Debabrata Patra, Mr. M. Rajeshwar Rao, Mr. T. Rabi Sankar, Mr. Swaminathan J., and other Central Board Directors.

Q. What amount did the Reserve Bank of India (RBI) approve to transfer as surplus to the Central Government for the accounting year 2023-24?

A. Rs 1.5 Lakh crore
B. Rs 1.85 Lakh crore
C. Rs 2.11 Lakh crore
D. Rs 2.82 Lakh crore

Ans : C. Rs 2.11 Lakh crore

97.76% of Rs 2000 Currency Notes Returned to Banking System : RBI

The Reserve Bank of India (RBI) has provided an update on the withdrawal of Rs 2000 denomination banknotes from circulation.

  1. As of April 30, 2024, the total value of Rs 2000 banknotes in circulation has significantly decreased from Rs 3.56 lakh crore on May 19, 2023, to Rs 7961 crore.
  2. This decrease indicates that 97.76% of the Rs 2000 banknotes in circulation as of May 19, 2023, have been returned.
  3. The withdrawal process was initially announced through a press release dated May 19, 2023, with periodic updates from the RBI.
  4. Initially, the facility for deposit and/or exchange of Rs 2000 banknotes was available at all bank branches until October 7, 2023.
  5. Subsequently, the exchange facility has been available at the 19 Issue Offices of the Reserve Bank (RBI Issue Offices) since May 19, 2023.
  6. Starting from October 9, 2023, these offices also started accepting Rs 2000 banknotes from individuals/entities for deposit into their bank accounts.
  7. Additionally, members of the public have been able to send Rs 2000 banknotes through India Post from any post office within the country to any RBI Issue Office for credit to their bank accounts.
  8. Despite the withdrawal process, Rs 2000 banknotes continue to be legal tender.

Question: Despite the withdrawal process, what is the status of Rs 2000 banknotes?

a) They are no longer legal tender
b) They can only be used for specific transactions
c) They are still legal tender
d) They can only be exchanged at specific locations

Ans : c) They are still legal tender

Kotak Mahindra Bank to stop issuing new credit cards and online customer immediately : RBI

The Reserve Bank of India (RBI) has instructed Kotak Mahindra Bank to stop issuing new credit cards immediately. The RBI has also limited the bank’s ability to acquire new customers through online and mobile banking channels.

  1. These actions stem from significant concerns identified during the RBI’s IT examinations of the bank for 2022 and 2023.
  2. Over two consecutive years, the bank has been found deficient in IT risk management and information security governance, violating regulatory guidelines.
  3. Despite corrective action plans issued by the RBI in 2022 and 2023, the bank has been substantially non-compliant.
  4. Existing customers, including credit card holders, will continue to receive services from the bank despite these restrictions.

Question : Which bank has the Reserve Bank of India (RBI) instructed to stop issuing new credit cards and acquiring online customers immediately?

a) HDFC Bank
b) ICICI Bank
c) Kotak Mahindra Bank
d) State Bank of India

Correct answer: c) Kotak Mahindra Bank

IMF forecast India’s GDP growth projection to 6.8% for FY 2024-25

The International Monetary Fund (IMF), on 16 April 2024 raised India’s Gross Domestic Product (GDP) growth projection to 6.8 percent for the financial year (FY) 2024-25, up from its previous forecast of 6.5 percent.

  • India’s growth is attributed to strong domestic demand and a rising working-age population.
  • The global growth rate is estimated at 3.2 percent in 2023, projected to continue at the same pace in FY 2024-25 and FY 2025-26.
  • India remains the fastest growing economy globally, surpassing China’s growth projection of 4.6 percent during the same period.

Q: What is India’s revised GDP growth projection for the financial year 2024-25, according to the IMF forecast April 20204?

a) 6.5 percent
b) 6.8 percent
c) 7.0 percent
d) 6.2 percent

Ans : b) 6.8 percent

World’s largest power plant : Adani Green Energy Limited renewable energy plant in Khavda, Gujarat

Adani Green Energy Limited is developing a 30 GW renewable energy plant in Khavda, Gujarat, spanning an area of 538 sq km, making it the world’s largest power plant.

  1. The project area in Khavda is five times the size of Paris and almost as large as Mumbai.
  2. The first energy flow from the project to the national grid occurred on February 14, 2024, with an initial capacity of 551 MW solar.
  3. Adani Green Energy Limited plans to invest approximately Rs 1.5 lakh crore in the project.
  4. The Khavda project will generate both solar and wind energy, with 2,000 MW of solar energy already operationalized in March 2024.
  5. The company aims to reach 6 GW of power production by March 2025 and plans to expand by a minimum of 5 GW every year thereafter.
  6. Adani Green Energy Limited aims to produce 45,000 MW of renewable energy by 2030.
  7. The project site in Khavda is equipped with waterless cleaning robots to address dust accumulation on panels and conserve water in the arid Kutch region.
  8. India is expected to avoid about 58 million tonnes of CO2 emissions annually with this project.
  9. Adani Green’s renewable energy portfolio spans 12 states, with major production in Rajasthan and Gujarat.

Q: Where is the world’s largest power plant being developed by Adani Green Energy Limited?

a) Khavda, Gujarat
b) Jaipur, Rajasthan
c) Mumbai, Maharashtra
d) Chennai, Tamil Nadu

Correct answer: a) Khavda, Gujarat

Income Tax Returns (ITRs) for Assessment Year 2024-25 from April 1, 2024

CBDT allows taxpayers to file Income Tax Returns (ITRs) for Assessment Year 2024-25 from April 1, 2024, onwards.

  1. Commonly used ITR forms such as ITR-1, ITR-2, and ITR-4 are available on the e-filing portal from April 1.
  2. Companies can file their ITRs using ITR-6.
  3. Around 23 thousand ITRs for Assessment Year 2024-25 have already been filed.
  4. The facility to file ITRs 3, 5, and 7 will be made available soon.
  5. This initiative marks the first time in recent years that taxpayers can file their returns on the first day of the new financial year.

Q: When can taxpayers file their Income Tax Returns (ITRs) for Assessment Year 2024-25 according to the Central Board of Direct Taxes (CBDT)?

a) From January 1, 2024
b) From April 1, 2024
c) From July 1, 2024
d) From October 1, 2024

Ans : b) From April 1, 2024

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