Category: Economy Current Affairs

  • RBI launched “Har Payment Digital” Mission to promote digital payments in India

    RBI launched “Har Payment Digital” Mission to promote digital payments in India

    • The Reserve Bank of India has launched the Mission “Har Payment Digital” to promote digital payments in India on 06th March 2023.
    • This initiative is part of the Digital Payments Awareness Week (DPAW) 2023 campaign with the theme “Digital Payment Apnao, Auron ko bhi Sikhao.”
    • The objective is to make every person in India a user of digital payments and to facilitate the onboarding of new consumers into the digital fold.
    • The RBI plans to promote the acceptance and use of digital payments in regional offices and initiate a “75 Digital Villages” program to convert villages into digital payment-enabled ones.
    • The RBI Governor Shaktikanta Das has appealed to all stakeholders to adopt digital payments and teach others about the benefits of using them.

    Questions : What is the objective of RBI’s Mission “Har Payment Digital”?
    a) To promote cash-based transactions in India
    b) To make every person in India a user of digital payments
    c) To increase the use of cheques in India
    d) To reduce the use of digital payments in India

    Ans : b) To make every person in India a user of digital payments

  • RBI imposes Rs 3.06 Crore penalty on Amazon Pay (India).

    RBI imposes Rs 3.06 Crore penalty on Amazon Pay (India).

    • The Reserve Bank of India has imposed a penalty of Rs.Three Crore Six Lakh Sixty Six Thousand on Amazon Pay (India) Pvt Ltd for non-compliance of certain directions relating to Prepaid Payment Instruments and Know Your Customer.
    • The penalty has been imposed in exercise of powers vested in RBI under section 30 of the Payment and Settlement Systems Act, 2007.
    • After considering the reply of the institution, Reserve Bank of India has come to the conclusion that the above allegation of non-compliance with the directions of Reserve Bank of India has been established and warrants imposition of monetary penalty.
  • RBI has increased the repo rate by 25 basis points to 6.50%.

    RBI has increased the repo rate by 25 basis points to 6.50%.

    • The Monetary Policy Committee (MPC) at its meeting on February 8, 2023, based on its assessment of the current and evolving macroeconomic situation, decided to increase the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points to 6.50% with immediate effect.
    • Similarly, the standing deposit facility (SDF) rate was adjusted to 6.25% and the marginal standing facility (MSF) rate and the bank rate to 6.75%.
    • The Gross Domestic Product (GDP) growth forecast for the current financial year 2022-23 has been increased by RBI from 6.8% to 7%.
    • In the next financial year 2023-24, the growth rate in gross domestic product (GDP) has been estimated to be 6.4%.
    • Inflation for 2022-23 estimated at 6.5%, for Q4 inflation estimated at 5.7%, CPI inflation for 2023-24 estimated at 5.3%.

    What is Repo Rate?

    Repo rate is the interest rate at which commercial banks borrow money from the central bank to meet their immediate needs. An increase in this means that borrowing from banks and financial institutions will be costlier and the monthly installment (EMI) of existing loans will increase.

  • “Saptarshi” – The 7 Priorities Of Union Budget 2023-2024

    “Saptarshi” – The 7 Priorities Of Union Budget 2023-2024

    The Union Budget for the financial year 2023-2024 was presented by Finance Minister Nirmala Sitharaman on February 1st, 2023. She referred to the seven priorities for the government as “Saptarishi”.

    7 Priorities Of Union Budget 2023-2024

    1. Inclusive development
    2. Reaching the last mile
    3. Infrastructure and investment
    4. Unleashing potential
    5. Green growth
    6. Youth Power
    7. Financial Sector

    Inclusive development

    Inclusive development by focusing on farmers, OBC, SC & ST, financially weaker sections of the society, divyangjan, etc.

    • The creation of digital public infrastructure for farmers
    • Launch of ANB Horticulture Clean Plant program
    • Vision to make India a global hub for millets, ‘Sree Anna’
    • Setting up agriculture accelerator fund
    • Targeted funding of ₹20 lakh crore agricultural credit focused at animal husbandry, dairy and fisheries sector.
    • Formation of a wide network of storage spaces for farmers.
    • Establishment of 157 new nursing colleges.
    • Launch of ‘Sickle Cell Anaemia elimination Mission’
    • Boost to Joint Public and Private Medical Research via selected ICMR labs
    • Launch of programme to encourage research in India’s pharma sector
    • Set up of national digital library for adolescents and children
    • Physical libraries to be set up at Panchayat and ward levels.
    • Revamped teacher’s training via District Institutes of Education and Training.

    Reaching the last mile

    To provide benefit of its welfare schemes to the last section of the society. Following are the schemes to be launched by the government to ensure its last mile reach.

    • Pradhanmantri (particularly vulnerable tribal groups) PVTG Development mission for the development of vulnerable tribal groups in next three years.
    • Financial assistance to promote sustainable micro irrigation in Karnataka’s drought prone areas.
    • Increasing the number of teachers in the Eklavya Model Residential Schools
    • Launch of Bharat(SHRI) for the digitization of ancient inscriptions.

    Infrastructure and Investment

    To give a push to the country’s infrastructure and investment sector, the Union Govt made following announcements in the Union Budget 2023.

    • The government has announced to increase the capital investment outlay by 33.4% to ₹10 lakh crore.
    • Extension of 50 year interest free loan to State Government for an incentivised infrastructure investment
    • Railways capital outlay to increased by 2.4 lakh crore
    • Launch of around 100 transport infrastructure projects to increase connectivity.
    • Creation of Urban Infrastructure Development Fund to build modern infrastructure in Tier 2 and Tier 3 cities.

    Unleashing the potential

    For the optimum utilisation of the country’s potential in all fronts following major policies and programs were announced in Budget 2023.

    • Establishment of three artificial intelligence centres in educational institutes.
    • Formation of a national data governance policy
    • Relaxation in rules and policy for an easier and lesser strict contract execution for MSMEs.
    • Launch of the third phase of e-courts
    • Formation of more than 100 labs for 5 services based application development.
    • Enhancement of research in the field of Lab Grown Diamond..

    Green Growth

    • Launch of PM Pranam to encourage the use of alternative fertilisers.
    • Set up of more than 500 new ‘Waste to Wealth’ plants under GOBARdhan scheme.
    • Launch of MISHTI program to carry out mangroove plantation along coastline.

    Youth Power

    • Launch of Pradhan Mantri Kaushal Vikas Yojana(PMKVY) 4.0. The new program will also fund courses like 3D printing, coding, AI, robotics, etc.
    • Selection of 50 locations for their development as prime tourist spots of the country.
    • Unity Malls will be set up by every state for the promotion and sale of One District, One Product(ODOP), GI tagged articles, and handicraft products.

    Financial Sector

    • Announcement to set up a National Financial Information registry to promote financial inclusion.
    • Establishment of Central Data Processing Centre to speed up administrative work under the Companies Act.
    • Launch of Credit Guarantee Scheme for MSMEs.
    • Launch a one-time small savings scheme for a 2 year period for women, named as ‘Mahila Samman Bachat Patra’.
    • Increase the maximum limit for senior citizens saving scheme from ₹15 lakh to ₹30 lakh.
  • Budget 2023-2024 Key Highlights :

    Budget 2023-2024 Key Highlights :

    The Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman presented the Union Budget for the financial year 2023-24 in the Parliament on 1 February 2023. This was the 3rd paperless budget in a row. The highlights of the budget are as follows:

    • Rebate limit of Personal Income Tax to be increased to Rs. 7 lakh from the current Rs. 5 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to Rs. 7 lakh to not pay any tax.
    • Tax structure in new personal income tax regime, introduced in 2020 with six income slabs, to change by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 lakh.
    • Capital outlay of Rs. 2.40 lakh crore for Indian Railways.
    • Allocation for PM Awas Yojana increased to over INR 79000 crore.
    • India to grow at 7% in the Current Year.
    • Green hydrogen, clean energy storage and transmission to be key drivers of government “Green Growth”.
    • Three centres of excellence in Artificial intelligence will be set up in top educational institutions.
    • Outlay of Rs. 479524 crore for the Digital India Programme announced.
    • Open source digital insfrastructure for agriculture and an agriculture accelerator fund announced.
    • Centre to provide free food grains to all antyodaya and priority households until December 2023.
    • Subsidy for UPI expected to Rs. 2137 crore in FY23.
    • New savings scheme for women ‘Mahila Samman Saving Certificate’  with 7.5 per cent fixed interest rate for two years,
  • Gautam Adani out of the list of world’s top-10 billionaires.

    Gautam Adani out of the list of world’s top-10 billionaires.

    • Adani Group Chairman Gautam Adani has been dropped from the list of top 10 richest people in the world.
    • According to the list of Bloomberg Billionaires Index, the total net worth of Adani Group was $ 92.7 billion on 29 January, which came down to $ 84.4 billion on 30 January, 2023.
    • Because of this Adani group has come at 11th place in the list of rich. In a week, the group’s net worth has moved from the fourth position to the 11th position in the global top ten.
    • Within a week, the net worth of Adani Group has reduced by $35.6 billion. On 20 November 2022, the total net worth (assets) of the Adani group was close to $150 billion.

    World Richest Person Top 13 List :

    S.noNameTotal Net WorthCountry
    1Bernard Arnault$191BFrance
    2Elon Musk$164BUnited States
    3Jeff Bezos$126BUnited States
    4Bill Gates$112BUnited States
    5Warren Buffett$109BUnited States
    6Larry Ellison$101BUnited States
    7Larry Page$91.5BUnited States
    8Steve Ballmer$88.6BUnited States
    9Sergey Brin$87.8BUnited States
    10Gautam Adani$84.5BIndia
    11Carlos Slim$84.5BMexico
    12Francoise Bettencourt Meyers$81.8B France
    13Mukesh Ambani$81.5B India

  • Halwa Ceremony : Marks Beginning of Printing for Union Budget 2023-24

    Halwa Ceremony : Marks Beginning of Printing for Union Budget 2023-24

    The Halwa Ceremony was held at the Finance Ministry on January 26, 2023 to mark the beginning of printing for the Union Budget 2023-24. It was attended by Union Finance Minister Nirmala Sitharaman, Union MoS for Finance Dr Bhagwat Kishanrao Karad, and senior officials. During the ceremony, the Finance Minister also took a tour of the Budget Press and reviewed preparations.

    Budget 2023-2024 : Third paperless Budget

    • The Budget documents will be available in English and Hindi on the Union Budget Mobile App on both Android and Apple platforms after the Budget Speech.
    • The Union Government will present the Budget on February 1, 2023.
    • This year’s Budget will be the third paperless Budget presented in Parliament. The first paperless Budget was presented in 2021.

    About Halwa Ceremony

    The Halwa Ceremony is an age-old tradition that marks the beginning of the printing of Budget documents and signifies the end of the Budget-making process. It is held at the Finance Ministry ahead of the Union Budget presentation in the parliament. During the ceremony, a sweet dish called Halwa is served to the officials who are involved in the preparation of the Budget. The ceremony signifies that the officials will now be “locked” in the ministry, and will not be able to leave until the Budget is presented. It’s also a way to indicate that the budget making process is complete and the document is ready to be presented in the parliament.

    हिंदी में पढ़े

  • India to become $26 trillion economy by 2047: EY report

    India to become $26 trillion economy by 2047: EY report

    • An EY ((Ernst & Young Global Limited) report states that the Indian economy is likely to reach $26 trillion by the year 2047, which will also be the 100th year of India’s independence.
    • According to this report named ‘India at 100: Realizing the Potential of 26 Trillion Economy’, in 2047 the average annual per capita income will reach 15 thousand dollars i.e. about 12.25 lakh rupees at the current exchange rate, It will be more than 6 times from today’s level.
    • The report claims that by 2030, India would have overtaken Germany and Japan to become the world’s third largest economic superpower.
    • India’s service related exports have increased at the rate of 14% in the last 2 decades to reach $ 25,450 million in 2021-22.
  • RBI Deputy Governor Michael Debabrata Patra has re-appointed for an additional one-year term

    RBI Deputy Governor Michael Debabrata Patra has re-appointed for an additional one-year term

    • The Central Government has re-appointed Michael Debabrata Patra as Deputy Governor of Reserve Bank of India (RBI) for an additional one-year term, effective January 15, 2023.
    • Patra is a career central banker who has been with the RBI since 1985, and was originally appointed as Deputy Governor in January 2020 for a three-year term.
    • As a Deputy Governor, Patra is a member of the monetary policy committee, which is responsible for making monetary policy decisions in India.
    • Patra is currently responsible for overseeing several departments within the RBI, including the Monetary Policy Department, the Department of Economic and Policy Research, the Department of Statistics and Information Management, and more.
  • Surinder Chawla appointed as MD & CEO of Paytm Payments Bank.

    Surinder Chawla appointed as MD & CEO of Paytm Payments Bank.

    • Paytm Payments Bank Limited (PPBL) has appointed veteran banker Surinder Chawla as its new Managing Director (MD) and Chief Executive Officer (CEO).
    • The appointment has been approved by the Reserve Bank of India for a period of three years.
    • Surinder Chawla will replace Paytm Payments Bank CEO Satish Kumar Gupta, who retires in October 2022, with Deepender Singh Rathore serving as the interim CEO.
    • Prior to joining PPBL, Chawla was working with RBL Bank, where he served as Head of Branch Banking and focused on expanding CASA base, fee revenue and cross-selling across channels.
    • Surinder Chawla has had an illustrious career spanning over 28 years in Retail Banking in reputed institutions like HDFC Bank, RBL Bank, ABN AMRO Bank and Standard Chartered Bank.