Economy Current Affairs

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

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

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

The Reserve Bank of India (RBI) will soon enable cash deposits through Cash Deposit Machines using Unified Payments Interface (UPI).

UPI, previously mainly used for money withdrawal or transfer, will now facilitate cash deposits, enhancing customer convenience and efficiency in currency handling at banks.

RBI is proposing to permit the use of third-party UPI apps for making UPI payments from Prepaid Payment Instruments (PPI) wallets, further boosting digital payment adoption for small-value transactions.

Q: What new functionality will the Reserve Bank of India (RBI) enable through Cash Deposit Machines (CDMs) using Unified Payments Interface (UPI)?

a) Money withdrawal
b) Money transfer
c) Cash deposits
d) Currency exchange

Ans : c) Cash deposits

The Reserve Bank of India’s Monetary Policy Committee (MPC) maintained the key repo rate at 6.5 per cent for the seventh consecutive meeting on April 5, 2024.

1. The focus was on controlling retail inflation, which has remained above the 4 per cent target.
2. The repo rate is the rate at which banks borrow funds from the RBI to address short-term liquidity gaps.
3. The majority decision was 5:1 to keep the interest rate unchanged, with the Standing Deposit Facility rate at 6.25 per cent and the Marginal Standing Facility (MSF) rate and Bank Rate at 6.75 per cent.
4. The MPC retained the stance of ‘withdrawal of accommodation’ with a majority of five votes.
5. The MPC consists of six members, including three from RBI, including Governor Shaktikanta Das, and three appointed by the central government.
6. The three-day review meeting of the MPC, which began on April 2, concluded on April 5, 2024.

Q: What decision did the Reserve Bank of India’s Monetary Policy Committee (MPC) make regarding the repo rate on April 5, 2024?

a) Increased it
b) Decreased it
c) Maintained it
d) Abolished it

Ans : c) Maintained it

Q: What is the repo rate?

a) The rate at which banks lend funds to the RBI
b) The rate at which RBI borrows funds from banks
c) The rate at which banks borrow funds from the RBI
d) The rate at which RBI lends funds to the government

Ans : c) The rate at which banks borrow funds from the RBI

In the second half of 2023, India witnessed a remarkable surge in Unified Payments Interface (UPI) transactions.

1. Volume Growth: UPI payments volume in H2 2023 soared by 56% year-on-year (YoY), reaching 65.77 billion transactions—a substantial increase from the previous year’s 42.09 billion transactions.
2. Transaction Value: The value of these UPI transactions surged by 44%, climbing from Rs 69.36 lakh crore to an impressive Rs 99.68 lakh crore.
3. Person-to-Merchant Transactions: The growth of UPI payments was largely driven by person-to-merchant transactions. During this period, these transactions witnessed a 77% increase in volume and a 62% increase in value.
4. Point of Sale Terminals: The number of point of sale (POS) terminals, used by merchants to receive payments, expanded by 26%, reaching 8.56 million. Private banks played a significant role, accounting for 73% of the market share in this segment.
5. Dominant Players: PhonePe, Google Pay, and Paytm continued to dominate the UPI market both in terms of value and volume. In December 2023, these three platforms accounted for 95.4% of all transactions, emphasizing their stronghold in the digital payments landscape.
6. Average Ticket Size: Interestingly, the average ticket size within UPI payments decreased by 8% YoY. This indicates a higher penetration of UPI for small and micro everyday payments, typically made to merchants. Categories such as groceries, eateries, telecom services, pharmacies, and utilities topped the list, reflecting their high volume but relatively low value.
7. Debit and Credit Cards: While UPI surged, the issuance of debit and credit cards experienced modest growth. Credit card issuance jumped from 13% in June 2023 to 21% in December 2023, while debit cards grew by only 2%

Q: What does UPI stand for?

A) Unified Payment Interface
B) Unified Payments Integration
C) United Payment Interface
D) Ultrafast Payment Integration

Answer: A) Unified Payment Interface

Q: Which type of transactions drove the growth of UPI payments in Second half of 2023?

A) Person-to-person transactions
B) Person-to-merchant transactions
C) International transactions
D) Bank-to-bank transactions

Answer: B) Person-to-merchant transactions

The Reserve Bank of India (RBI) commenced its operations on 1st of April in 1935 and organizing a ceremony to mark the 90th years on 1st April 2024.

1. The Reserve Bank of India (RBI) holds a pivotal position as the central bank of India, established based on recommendations from the Hilton Young Commission.
2. The RBI Act of 1934 provided the statutory foundation for the bank’s functioning, with operations commencing on April 1, 1935.
3. At its inception, the RBI was entrusted with critical functions including regulating the issue of banknotes, maintaining reserves, and operating the credit and currency system.
4. Initially, the RBI inherited responsibilities from the Controller of Currency and took over the management of government accounts and public debt from the Imperial Bank of India.
5. The RBI established branches and banking offices in major cities across India.
6. In its early days, the RBI focused on development, particularly in the agricultural sector, pioneering the use of finance for development purposes.
7. The RBI played a significant role in setting up various institutions such as the Deposit Insurance and Credit Guarantee Corporation of India, the Unit Trust of India, the Industrial Development Bank of India, and the National Bank of Agriculture and Rural Development.
8. Over time, the RBI’s role evolved to include overseeing monetary policy, bank supervision, regulation, and developing financial markets.
9. The RBI remains a cornerstone of India’s financial resilience and progress from its inception to the present day.

Q: When did the Reserve Bank of India commence its operations?

a) April 1, 1935
b) April 1, 1947
c) January 26, 1950
d) August 15, 1947

Ans : a) April 1, 1935

Q: From which institution did the Reserve Bank of India take over the management of government accounts and public debt?

a) Imperial Bank of India
b) Bank of England
c) State Bank of India
d) Punjab National Bank

Ans : a) Imperial Bank of India

Q: Which commission’s recommendations led to the establishment of the Reserve Bank of India?

a) Simon Commission
b) Butler Commission
c) Hilton Young Commission
d) Hunter Commission

Ans : c) Hilton Young Commission

Q: Where is the headquarters of the Reserve Bank of India (RBI) located?

a) New Delhi
b) Mumbai
c) Kolkata
d) Chennai

Ans : b) Mumbai