Economy

 

Indian Economy Current Affairs, important for Competitive Exams.

Deposit cash through Cash Deposit Machines using Unified Payments Interface (UPI)

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

RBI Keeps Repo Rates Unchanged at 6.5 Percent for Seventh Consecutive Time

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

Unified Payments Interface (UPI) Transactions Surge in India

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

Reserve Bank of India (RBI) enters its 90th year on 1st April 2024.

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

Paytm Payments Bank Ceased Services from March 15, 2024

Paytm Payments Bank halted services such as accepting deposits and processing credit transactions from March 15 as per the directive from the Reserve Bank of India (RBI).

  1. The RBI issued a directive on January 31 for Paytm Payments Bank to cease accepting deposits or top-ups in various instruments, citing concerns about non-compliance with regulations and supervisory issues.
  2. The RBI’s decision to shut down Paytm Payments Bank stemmed from concerns over non-compliance issues, including improper identification during account openings, potential involvement in illicit activities like money laundering, and an unusual number of dormant accounts.

Changes After Shutdown:

  • Deposits into Paytm Payments Bank accounts are no longer possible, but customers can still withdraw or transfer funds.
  • Salary credits, direct benefit transfers, and subsidies are no longer available in Paytm Payments Bank accounts, but refunds, cashbacks, and sweep-ins from partner banks are still permitted.
  • The top-up facility and wallet transfers are disabled, although payments can still be made if there is a balance in accounts.
  • Recharge or top-up of funds in NCMC cards issued by Paytm bank are no longer supported.
  • Transfer of funds into Paytm Payments Bank accounts via UPI or IMPS ceased after March 15.

Q: What directive did the Reserve Bank of India (RBI) issue to Paytm Payments Bank on January 31?

a) To enhance their customer service offerings
b) To halt accepting deposits or top-ups in various instruments
c) To expand their branch network
d) To increase their interest rates on savings accounts

Ans : b) To halt accepting deposits or top-ups in various instruments

Q: Why did the RBI order the shutdown of Paytm Payments Bank?

a) Due to concerns about their stock trading operations
b) Due to concerns over non-compliance issues and supervisory concerns
c) Due to their outstanding customer service
d) Due to their high-interest rates on loans

Ans : b) Due to concerns over non-compliance issues and supervisory concerns

RBI to Launch Interoperable Payment System for Internet Banking in 2024

Reserve Bank of India (RBI) to launch interoperable payment system for internet banking in 2024.

  • System will be implemented by NPCI Bharat BillPay and aims to facilitate quicker settlement of funds for merchants.
  • This addresses delays and settlement risks for merchants using payment aggregators for internet banking transactions.
  • India accounts for nearly 46% of global digital transactions and UPI is the leading payment system with close to 80% share.
  • UPI transactions have grown significantly and new user registrations are increasing.
  • RBI emphasizes trust in digital payments is built on transparency, ease of use, and security and promotes awareness programs.

Q. Which organization will be responsible for implementing the new interoperable payment system?

a) Reserve Bank of India (RBI)
b) National Payments Corporation of India (NPCI)
c) NPCI Bharat BillPay Limited (Correct)
d) Payment Aggregators (PAs)

Ans : b) National Payments Corporation of India (NPCI)

National Urban Co-operative Finance and Development Corporation Limited (NUCFDC) launched to Empower Urban Cooperative Banking Sector

Amit Shah launched the National Urban Co-operative Finance and Development Corporation Limited (NUCFDC) in New Delhi on March 2, 2024.

  1. The NUCFDC serves as the umbrella organization for Urban Cooperative Banks (UCBs).
  2. The initiative aligns with the goal of ‘Sahakar se Samriddhi’ to foster self-reliance in India.
  3. The aim is to modernize and strengthen the Urban Cooperative Banking Sector.
  4. NUCFDC has received a Certificate of Registration from the Reserve Bank of India to function as a Non-Banking Finance Company (NBFC).
  5. It will also operate as a Self-Regulatory Organization for the sector.
  6. NUCFDC will provide specialized functions and services to cooperative banks, facilitate communication between banks and regulators, and address challenges faced by UCBs.

Q: What does NUCFDC stand for?

a) National Urban Cooperative Finance and Development Corporation
b) National Union of Cooperative Financial Development Corporations
c) National Unified Cooperative Finance and Development Corporation
d) None of the above

Ans : a) National Urban Cooperative Finance and Development Corporation

Q: What is the primary goal of the NUCFDC?

a) To regulate rural cooperative banks
b) To strengthen the agricultural sector
c) To modernize and strengthen the Urban Cooperative Banking Sector
d) To promote digital payments in urban areas

Ans : c) To modernize and strengthen the Urban Cooperative Banking Sector

Government Raises Sugarcane Fair and Remunerative Price (FRP) by Eight Percent; Prime Minister Commends Decision as Historic

  • Prime Minister Narendra Modi emphasizes the importance of development efforts for future generations during an address in Mehsana.
  • Projects worth over Rs 13,000 crore are inaugurated and initiated, focusing on infrastructure development.
  • Mr. Modi highlights the significance of road and railway projects as pathways to a developed India.
  • The “Modi Guarantee” initiative aims to uplift the lives of marginalized communities through development efforts.
  • The government emphasizes heritage conservation alongside development activities.
  • Inaugurated projects include Bharat Net Phase-II – Gujarat Fibre Grid Network Limited, benefiting over 8,000 gram panchayats with high-speed internet.
  • Rail line doubling, gauge conversion, and new broad-gauge lines in Mahesana and Banaskantha districts are among the railway projects launched.
  • Multiple road projects in Kheda, Gandhinagar, Ahmedabad, and Mahesana are initiated.
  • Foundation stones are laid for various projects, including road projects in Gandhinagar, Ahmedabad, Banaskantha, and Mahesana, as well as the Runway of Air Force Station, Deesa, and Gujarat Biotechnology Research Centre (GBRC)’s new building at GIFT city.

How many gram panchayats are expected to benefit from the Bharat Net Phase-II – Gujarat Fibre Grid Network Limited project?
a) Near 5,000
b) Near 6,000
c) Near 7,000
d) Over 8,000

  • Correct answer: d) Over 8,000

Government allows 100% FDI in space sector

The Centre has approved an amendment in the Foreign Direct Investment, FDI policy, allowing 100% foreign investment in the space sector.  

The liberalized entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space.

FDI up to 100% under the Automatic route will be allowed for the manufacturing of components and systems or sub-systems for satellites, ground segments, and user segments.

Q: What recent change has been approved by the Centre regarding Foreign Direct Investment (FDI) in space sector?

a) Increased restrictions on FDI in space sector
b) 100% foreign investment allowed in the space sector
c) Limiting FDI to 50% in space sector
d) Complete ban on foreign investment space sector

Answer: b) 100% foreign investment allowed in the space sector

RBI extended the deadline for Paytm Payments Bank services to March 15, 2024

RBI extended the deadline for Paytm Payments Bank services to March 15, 2024, from the initial date of February 29.

  1. The decision was made considering larger public interest, including the interests of merchants, as stated in a press release by the apex bank.
  2. Customers are allowed to make deposits, credit transactions, prepaid services, wallets, FASTags, and National Common Mobility Cards until March 15, 2024.
  3. After March 15, 2024, no further deposits, credit transactions, or top-ups will be allowed in any customer accounts, according to the RBI.
  4. Earlier, the RBI had prohibited the Paytm subsidiary from accepting additional deposits or accounts starting from February 29.
  5. The RBI imposed business restrictions on Paytm Payments Bank Ltd, operated by One97 Communications, exercising its powers under Section 35A of the Banking Regulation Act, 1949.

Q: Who is the company operating Paytm Payments Bank?

  • a) Paytm
  • b) One97 Communications
  • c) Reserve Bank of India
  • d) National Payments Corporation of India (NPCI)

Ans : b) One97 Communications

RBI retains repo rate at 6.5 percent for sixth consecutive time

  • The Reserve Bank of India (RBI) has maintained the repo rate at 6.5 percent for the sixth consecutive time.
  • The decision was made by a 5:1 majority vote of the six-member monetary policy committee (MPC) due to retail inflation persisting above the 4 percent target.
  • The repo rate is the interest rate at which banks borrow funds from the RBI to address short-term liquidity gaps.
  • Other key interest rates include the Standing Deposit Facility rate at 6.25 percent, Marginal Standing Facility (MSF) rate at 6.75 percent, and the Bank Rate at 6.75 percent.
  • RBI Governor Shaktikanta Das projected retail inflation based on the Consumer Price Index (CPI) at 5.4 percent for the current fiscal year and 4.5 percent for the next financial year.

Q: What is the primary purpose of the repo rate?

A) To regulate the money supply in the market and combat price inflation.
B) To determine the operating bank rates.
C) To enhance the availability of funds for banks.
D) To stimulate consumer demand.

Answer: A) To regulate the money supply in the market and combat price inflation

Interim budget for FY 2024-25 : Main Points

Finance Minister Smt Nirmala Sitharaman presented the interim budget for FY 2024-25 on February 1, 2024 in Parliament. Since it’s an interim budget, it focuses on essential expenditures until the regular budget is presented after general elections. Here are some key points:

Fiscal Consolidation:

  • Fiscal deficit target: 5.1% of GDP, aimed at reaching 4.5% by FY 25-26.
  • Revenue receipts: Estimated at ₹30.03 lakh crore, reflecting economic growth.
  • Total expenditure: Projected to be ₹47.66 lakh crore, a 6.1% increase.

Capital Expenditure:

  • Increased by 11.1% to ₹11.11 lakh crore, prioritizing infrastructure development.
  • Represents 3.4% of GDP and 23.31% of total expenditure.
  • Continuation of the 50-year interest-free loan scheme for states with a total outlay of ₹1.3 lakh crore.

Social Welfare:

  • Expansion of Ayushman Bharat health insurance scheme to cover ASHA workers.
  • Launch of housing schemes for middle class, slum dwellers, and rural population.
  • Increase in coverage of “Lakhpati Didi” skill development program to 3 crore women.
  • Cervical cancer vaccination for girls aged 9-14 years.

Other Key Initiatives:

  • 1 crore households to receive free solar power.
  • Focus on promoting electric vehicles and e-buses.
  • No changes in income tax slabs or rates.

Q: What is the fiscal deficit target set in the interim budget for FY 2024-25?

a. 3.5% of GDP
b. 4.5% of GDP
c. 5.1% of GDP
d. 6.0% of GDP

Ans : c. 5.1% of GDP

Q: What is the status of income tax slabs or rates in the interim budget 2024-2025?

a. Increased rates
b. Decreased rates
c. No changes
d. Abolished

Ans : c. No changes

RBI imposes restrictions on Paytm Payments Bank

  • RBI imposes restrictions on Paytm Payments Bank from March 2024.
  • Action taken due to concerns about regulatory norm breaches and persistent non-compliance.
  • Paytm Payments Bank prohibited from accepting deposits, credit transactions, or top-ups after February 29, 2024.
  • Interest, cashback, and refunds allowed, but unrestricted withdrawal and utilization of balances permitted.
  • No provision of banking services, BBPOU, and UPI facilities after February 29, 2024, except for fund transfers, utilization, or withdrawal.
  • Nodal accounts of parent companies to be terminated by February 29, 2024.
  • Settlement of pipeline transactions and nodal accounts related to transactions initiated before February 29, 2024, must be completed by March 15, 2024.

Q: Which payment bank faced restrictions from RBI for “Breach of regulatory norms and non-compliance”?

a. Airtel Payments Bank
b. Fino Payments Bank
c. Paytm Payments Bank
d. Jio Payments Bank

Answer: c. Paytm Payments Bank

Halwa ceremony for the Interim Union Budget 2024, took place at North Block

The Halwa ceremony, marking the final stage of the Budget preparation process for the Interim Union Budget 2024, took place at North Block on 24th January 2024.

  1. The Finance Ministry performs the customary Halwa ceremony every year before the lock-in process of Budget preparation begins.
  2. Union Finance Minister Nirmala Sitharaman, Minister of State for Finance Dr. Bhagwat Kisanrao Karad, and other senior officials were present during the ceremony.
  3. As part of the ceremony, Ms. Sitharaman took a round of the Budget Press, reviewed preparations, and extended her best wishes to the officials involved.
  4. Similar to the previous three full Union Budgets, the Interim Union Budget 2024 will be delivered in a paperless form.
  5. The Budget documents will be accessible on the Union Budget Mobile App after the completion of the Budget Speech by the Union Finance Minister in Parliament on the 1st of February.

Q: Halwa ceremony is associated with which of the following events?

a. Independence Day celebrations
b. Budget preparation process
c. National Women’s Day
d. Republic Day Celebration

Ans : b. Budget preparation process

Around 25 crore people have lifted themselves out of poverty in the last nine years : NITI Aayog

  1. According to NITI Aayog, nearly 25 crore people in India have lifted themselves out of poverty in the last nine years.
  2. The discussion paper released by NITI Aayog on 16 January 2024, focuses on Multidimensional Poverty in India from 2005 to 2006, analyzing the decline in poverty rates across various dimensions.
  3. The poverty rate has decreased from over 29 percent to around 11 percent in the mentioned nine-year period.
  4. Uttar Pradesh has witnessed the most significant reduction in poverty among Indian states, with nearly 6 crore people escaping poverty in the last nine years.
  5. Other states showing notable declines in poverty include Bihar, Madhya Pradesh, and Rajasthan.
  6. NITI Aayog predicts that India will achieve single-digit poverty rates this year, marking a substantial accomplishment given that over 50 percent of the population was in poverty around 2005.
  7. The Sustainable Development Goal (SDG) target of halving multidimensional poverty by 2030 is expected to be achieved by India much sooner than the set deadline.
  8. NITI Aayog CEO, B.V.R. Subrahmanyam, emphasized that reducing absolute poverty by half in 8 to 9 years is a remarkable achievement that will showcase India’s progress towards its SDG goals to the world.

Q: What is the reported decline in poverty rate in India over the last nine years according to NITI Aayog?

a) 27 percent to around 9 percent
b) 25 percent to around 17 percent
c) 29 percent to around 11 percent
d) 20 percent to around 15 percent

Answer: 29 percent to around 11 percent

Q: Who currently serves as the Chief Executive Officer (CEO) of NITI Aayog in India?

a) Narendra Modi
b) Amitabh Kant
c) Arvind Panagariya
d) B.V.R. Subrahmanyam

Answer: d) B.V.R. Subrahmanyam

ONGC starts oil production from its Cluster-2 project in Krishna Godavari basin in Bay of Bengal

  1. The Oil and Natural Gas Corporation (ONGC) has initiated oil production from its Cluster-2 project in the Krishna Godavari basin in the Bay of Bengal.
  2. The project is situated in the KG-DWN-98/2 block, characterized as a complex and challenging block.
  3. Initial production is expected to be 45 thousand barrels per day and over 10 million standard cubic metres per day of gas.
  4. The project, located offshore the Godavari river delta, is positioned 35 kilometres off the coast of Andhra Pradesh.
  5. Water depths in the project area range from 300 to 3,200 metres.
  6. The discoveries in the KG-DWN-98/2 block are divided into three clusters, with Cluster-2 being the first to be put into production.
  7. The anticipated impact of the project includes adding 7 percent to the current national oil production and 7 percent to national natural gas production.

Q: Where is the KG-DWN-98/2 block located, where the ONGC starts oil production from Cluster-2 project in January 2024 ?

a) Arabian Sea
b) Bay of Bengal
c) Indian Ocean
d) Andaman Sea

Answer: b) Bay of Bengal

Govt constitutes 16th Finance Commission with Dr Arvind Panagariya as its Chairman

The Sixteenth Finance Commission has been constituted by the Centre.

  1. Dr. Arvind Panagariya, former NITI Aayog Vice Chairman and current Columbia University Professor, will serve as the Chairman of the 16th Finance Commission.
  2. Ritvik Ranjanam Pandey, an IAS officer, will be the secretary of the Commission.
  3. The Commission’s recommendations will include matters related to the distribution of net proceeds of taxes between the Union and the States, and measures to augment the Consolidated Fund of a State to support Panchayats and Municipalities.
  4. The Commission may review current financing arrangements for Disaster Management initiatives, particularly funds under the Disaster Management Act, 2005, and make appropriate recommendations.
  5. The Finance Commission has been tasked with making its report available by October 31, 2025, covering a five-year period starting from April 1, 2026.

Q: Who has been appointed as the Chairman of the Sixteenth Finance Commission?

a) Dr. Arvind Panagariya
b) Ritvik Ranjanam Pandey
c) Nirmala Sitharaman
d) Dr Subramanyam Swami

Answer: a) Dr. Arvind Panagariya

Q: What is the role of Ritvik Ranjanam Pandey in the Sixteenth Finance Commission?

a) Chairman
b) Secretary
c) Financial Advisor
d) Member

Correct Answer: b) Secretary

Govt increases rate of interest on 2 small savings schemes for January-March 2024

The Central government has increased the rate of interest on two small savings schemes for January-March 2024 quarter by up to 20 basis points.

  • The rate of interest on the Sukanya Samriddhi Account Scheme has been raised by 20 basis points to 8.2 percent from 8 percent.
  • Interest on the three-year time deposit has been increased by 10 basis points to 7.1 percent from 7.0 percent.
  • All other small savings schemes will continue to offer the same rate of interest as they did in October-December quarter.

Q: What is the increased interest rate on the Sukanya Samriddhi Account Scheme for the January-March 2024 quarter?

a. 7.8 percent
b. 8.0 percent
c. 8.1 percent
d. 8.2 percent

Ans : d. 8.2 percent

Reversal of liquidity facilities under both SDF and MSF is available with effect from 30th December: RBI

  • The Reserve Bank of India (RBI) announces the availability of reversal of liquidity facilities under Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) on an overnight basis, including Sundays and holidays, effective from December 30.
  • Reversal under SDF and MSF is allowed only on the next working day in Mumbai.
  • RBI Governor Shaktikant Das had previously announced the SDF and MSF reversal facility to remain open on all days for deploying and using tools to manage liquidity in case of elevated inflation.
  • The SDF/MSF bids triggered under the Automated Sweep-In and Sweep-Out (ASISO) facility will reverse on the next calendar day.
  • Manual bids placed through the e-Kuber portal allow eligible entities to choose the tenor at the time of placing the bid.
  • Access to SDF/MSF will be available on all days, including Sundays and holidays.
  • RBI is using the Standing Deposit Facility (SDF) as an additional tool to absorb liquidity and control inflation.
  • The use of SDF enables RBI to take deposits from commercial banks without compensating them with government securities.

Q: Why RBIis using the Standing Deposit Facility (SDF) ?

  • A. To encourage commercial banks to invest in government securities
  • B. To absorb liquidity and control inflation
  • C. To compensate commercial banks with government securities
  • D. To facilitate faster fund transfers between banks.

Ans : B. To absorb liquidity and control inflation

CBDT notified Income Tax Return (ITR) forms 1 and 4, for the assessment year 2024-25

  • The Central Board of Direct Taxes (CBDT) has notified Income Tax Return (ITR) forms 1 and 4 for the assessment year 2024-25.
  • These forms are for filing income tax returns related to earnings from April 1, 2023, to March 31, 2024.
  • Typically, ITR forms are notified in March or early April, but this year they were notified in December to facilitate early filing.
  • Forms 1 and 4 are meant for individuals and entities with annual total income of up to 50 lakh rupees.

Q: What is the period of the Financial Year in India?

A) April 1 to March 31
B) January 1 to December 31
C) July 1 to June 30
D) October 1 to September 30

Answer: A) April 1 to March 31

27th WAIPA World Investment Conference in New Delhi from December 11, 2023

India is hosting the 27th WAIPA World Investment Conference in New Delhi from December 11, 2023.

  1. The conference is organized by the National Investment Promotion and Facilitation Agency of the Government of India and the World Association of Investment Promotion Agencies.
  2. The event will take place at the India International Convention & Expo Centre – Yashobhoomi, New Delhi, under the Department for Promotion of Industry and Internal Trade.
  3. This conference is expected to be the largest World Investment Conference ever held.
  4. Shri Piyush Goyal, the Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, will deliver the keynote address on the Role of Trade and Investment in the Decade of Action on December 13.
  5. Shri Goyal will also launch the Experience India Centre (EIC), which will showcase India’s offerings across services, technology, and products using virtual reality, augmented reality, interactive touch screens, and projection mapping.
  6. This marks the first time the World Investment Conference is being held in India.
  7. The conference is expected to have over 1000 attendees, including 50 Investment Promotion Agencies (IPAs) and various multilateral agencies.

Q: Where is the 27th WAIPA World Investment Conference being hosted?

A) Mumbai
B) Chennai
C) New Delhi
D) Bangalore

Ans : C) New Delhi

RBI has maintained the policy repo rate at 6.5% for the fifth consecutive time

RBI Governor Shaktikanta Das, in the bi-monthly monetary policy announcement on 8 December 2023 informed following decision of committee.

  • The Reserve Bank of India (RBI) has maintained the policy repo rate at 6.5% for the fifth consecutive time.
  • The decision to keep the policy rate unchanged was influenced by the observed decline in inflation.
  • In the recent Monetary Policy Committee meeting, the RBI revised the Gross Domestic Product (GDP) growth forecast for the financial year 2023-24 to 7%, up from the previous estimate of 6.5%.
  • Governor Shaktikanta Das announced a proposal to increase the limit of UPI transactions in hospitals and educational institutions from one lakh to 5 lakh rupees.

Q: What proposal did Governor Shaktikanta Das announce regarding UPI transactions during the Monetary Policy Committee meeting in December 2023?

a. Limit reduction to one lakh rupees
b. No change in the transaction limit
c. Increase to 2.5 lakh rupees for all users
d. Increase to 5 lakh rupees in hospitals and educational institutions

d. Increase to 5 lakh rupees in hospitals and educational institutions

42nd India International Trade Fair (IITF) from 14 to 27 November at Pragati Maidan in New Delhi

The 42nd India International Trade Fair (IITF) commenced on November 14 at Pragati Maidan in New Delhi and will run until November 27, 2023.

  • Minister of State for Commerce and Industry, Anupriya Patel, inaugurated the fair, noting the significant participation of over 3500 exhibitors, showcasing global confidence in India.
  • The fair’s theme, “Vasudhaiva Kutumbakam,” underscores the importance of interconnectedness and cooperation in trade for sustainable growth and well-being.
  • The first five days are reserved for the business category, with the fair open to the general public from November 19th.
  • Partner States are Bihar and Kerala, and Focus States include Delhi, Jammu and Kashmir, Jharkhand, Maharashtra, and Uttar Pradesh.
  • Representatives from 13 countries are participating in the fair, showcasing its international character.
  • Fair timings are from 10 A.M. to 7.30 PM, and tickets can be purchased online or at select metro stations. Entry is free for Divyang (disabled individuals) and senior citizens.

Q.: What is the theme of the 42nd India International Trade Fair?

  • a) Sustainable Growth and Well-being
  • b) Global Confidence in India
  • c) Vasudhaiva Kutumbakam
  • d) Trade and Investment for Economic Development

Ans : c) Vasudhaiva Kutumbakam

Tata To Make iPhones In India For Global Market

The Tata Group is set to become India’s first homegrown iPhone manufacturer. This development follows the acquisition of an assembly plant near Bengaluru from Apple supplier Wistron Corp for approximately $125 million.

  1. Tata Group’s plan is to produce Apple iPhones for both the domestic and global markets.
  2. Production is expected to commence within two and a half years.
  3. The move signifies India’s increasing production capabilities.
  4. Apple’s previous strategy primarily relied on selling devices made in China to customers worldwide.

Question: TATA Group acquired an assembly plant for Apple phones near Bengaluru from which group?

Options:
a) Apple Inc.
b) Samsung Electronics
c) Wistron Corp
d) LG Electronics

Ans : c) Wistron Corp

American Professor Claudia Goldin awarded Nobel Prize in Economics 2023 for research on women’s contributions to the labor market

American Professor Claudia Goldin has been awarded the 2023 Nobel Economics Prize for her research on women’s contributions to the labor market. The Royal Swedish Academy of Sciences made the announcement, officially known as The Sveriges Riksbank Prize in Economic Sciences.

  1. Claudia Goldin’s research provides a comprehensive account of women’s earnings and labor market participation over centuries, highlighting the causes of change and the remaining gender gap.
  2. Her research indicates that female participation in the labor market follows a U-shaped curve, with a decline during the transition from agrarian to industrial society, followed by an increase in the service sector.
  3. Claudia Goldin is a professor at Harvard University and is the 55th recipient of the Nobel Economics Prize, only the third woman to receive it since its inception in 1969.
  4. The Nobel Prize announcements for various fields, including economics, began on October 2nd and concluded with the economics prize.
  5. Nobel Prizes are awarded in ceremonies held in December in Oslo and Stockholm, with a cash award of 11 million Swedish kronor (approximately $1 million), along with an 18-carat gold medal and diploma.

MCQs

Q.: Who was awarded the 2023 Nobel Economics Prize for her research on women’s contribution to the labor market?

A) Claudia Goldin
B) Marie Curie
C) John Smith
D) Albert Einstein

Ans : A) Claudia Goldin

Q.: What is the official name of the Nobel Prize in Economics?

A) The Nobel Prize in Economic Sciences
B) The Sveriges Riksbank Prize in Economic Sciences
C) The Nobel Prize in Earth Studies
D) The Prize in Gender Economics

Ans : B) The Sveriges Riksbank Prize in Economic Sciences

RBI Monetary Policy Committee keeps repo rate unchanged at 6.5 percent

The RBI Governor, Shaktikanta Das, announced on October 6, 2023, that the monetary policy committee (MPC) has unanimously decided to maintain the policy repo rate at 6.50 percent.

  • The MPC meeting took place from October 4 to October 6, 2023, and this decision marks the fourth consecutive time the repo rate has remained unchanged.
  • The standing deposit facility (SDF) rate remains at 6.25 percent, while the marginal standing facility (MSF) rate and the Bank Rate remain at 6.75 percent.
  • The MPC, with a majority vote of 5 out of 6 members, focuses on withdrawing accommodation to align inflation with the target while supporting economic growth.
  • Headline inflation experienced a surge in July, primarily due to tomato and vegetable prices, but corrected somewhat in August and is expected to ease further in September.
  • Core inflation (CPI excluding food and fuel) is declining.
  • The overall inflation outlook is uncertain due to factors such as reduced kharif sowing for key crops, low reservoir levels, and volatile global food and energy prices.
  • The projected real GDP growth for 2023-24 is 6.5 percent, with specific growth rates for each quarter mentioned.
  • The MPC remains vigilant and ready to take necessary policy measures to align inflation with the target and anchor inflation expectations.

MCQs

Q.: What was the decision of the Monetary Policy Committee (MPC) regarding the policy repo rate on October 6, 2023?

a) Increased it by 0.25 percent
b) Decreased it by 0.25 percent
c) Maintained it at 6.50 percent
d) Maintained it at 7.00 percent

Ans : c) Maintained it at 6.50 percent

Q.: What is the projected real GDP growth by RBI Monetary Policy Committee for Q1:2024-25 ?

a) 5.7 percent b) 6.0 percent c) 6.5 percent d) 6.6 percent

Ans : c) 6.5 percent

RBI extends last date to exchange 2,000 rupee notes till 7th October 2023

The Reserve Bank of India (RBI) has extended the last date for the exchange of 2,000 rupee denomination banknotes to October 7, 2023. This decision was made after a review of the withdrawal process, as the initial period specified for withdrawal had ended.

  1. As of May 19, 2023, data from banks indicated that there were Rs 3.56 lakh crore worth of Rs 2000 banknotes in circulation.
  2. Out of this total, Rs 3.42 lakh crore has been received back by banks, leaving only Rs 0.14 lakh crore in circulation as of September 29, 2023.
  3. This means that 96 percent of the Rs 2000 banknotes in circulation as of May 19, 2023, have been returned to the banks.
  4. The RBI had previously announced the withdrawal of the Rs 2,000 banknote from circulation on May 19 but clarified that these notes would continue to be legal tender until the extended date.

Q.: When did the RBI initially announce the withdrawal of the Rs 2,000 banknote from circulation?

a) September 29, 2023
b) October 7, 2023
c) December 9, 2022
d) May 19, 2023

Ans : d) May 19, 2023

M. Rajeshwar Rao has been reappointed as Deputy Governor of RBI

M. Rajeshwar Rao has been reappointed as Deputy Governor of the Reserve Bank of India (RBI). The reappointment is for a period of one year, starting from the 9th of the next month or until further orders, whichever comes earlier.

  1. This announcement was made by the RBI in a press release from Mumbai.
  2. Mr. Rao is responsible for overseeing various departments, including Regulation, Communication, Enforcement, Legal, and Risk Monitoring.
  3. He holds an economics degree and a Master of Business Administration from the University of Cochin.
  4. Mr. Rao began his career at the RBI in 1984 and has held various positions, including serving as the Banking Ombudsman in New Delhi and working in the RBI’s regional offices in Ahmedabad, Hyderabad, Chennai, and the national capital.

Q.: Which departments does M. Rajeshwar Rao handle in his role as Deputy Governor of RBI?

a) Finance and Accounts
b) Human Resources and Administration
c) Regulation, Communication, Enforcement, Legal, and Risk Monitoring
d) Research and Policy Analysis

Ans : c) Regulation, Communication, Enforcement, Legal, and Risk Monitoring

Sovereign Gold Bond Scheme 2023-24 Series II opens until 15 September

Sovereign Gold Bonds (SGB) are open for subscription until September 15th, marking the second series of the scheme for the fiscal year 2023-24.

  1. The Reserve Bank of India (RBI) has set the price of the gold bonds at 5,923 rupees per gram.
  2. Online applicants will receive a discount of 50 rupees per gram less than the nominal value when paying digitally, making the issue price for online investors 5,873 rupees per gram.
  3. The minimum investment allowed in a gold bond is one gram, while the maximum subscription limit is set at 4 kg for individuals and 20 kg for trusts and similar entities per fiscal year.
  4. SGB offers a safer alternative to physical gold and an additional income source, making it an attractive investment option.
  5. The Sovereign Gold Bond Scheme was initiated by the government in November 2015, under the Gold Monetisation Scheme.

Q.: Which government scheme introduced the Sovereign Gold Bond Scheme in November 2015?

a) Gold Reserve Scheme
b) Gold Monetisation Scheme
c) Gold Investment Initiative
d) Gold Security Program

Ans : b) Gold Monetisation Scheme

RBI Gradually Reduces Incremental Cash Reserve Ratio (ICRR) to Manage Liquidity

The Reserve Bank of India (RBI) will gradually reduce its requirement for banks to park an additional 10% of their fresh deposits with the central bank. The reduction of this requirement, known as the incremental cash reserve ratio (ICRR), will occur in stages.

  • Starting on 9 September 2023, 25% of the ICRR will be released.
  • Another 25% will be released on 23 September.
  • The remaining 50% of the ICRR will be released on 7 October.
  1. The ICRR was initially introduced to address a surge in liquidity resulting from the return of 90% of ₹2,000 notes into the banking system.
  2. The RBI aims to release the ICRR gradually to prevent sudden shocks to system liquidity and to maintain orderly money market functioning.
  3. RBI Governor Shaktikanta Das had mentioned that withdrawing the ICRR could remove approximately ₹1 trillion in liquidity from the banking system.
  4. The current surplus liquidity in the system is ₹76,000 crore, which is lower than the earlier surplus of ₹3.5 trillion.
  5. The RBI’s objective is to control liquidity to prevent excess liquidity from contributing to inflation, aiming to keep system liquidity at around ₹1 trillion.
  6. The reduction in ICRR is designed not to significantly impact system liquidity, with other factors like currency in circulation and forex intervention compensating for the incremental money from the ICRR reduction.

Q.: What is the primary reason for the Reserve Bank of India (RBI) gradually reducing the incremental cash reserve ratio (ICRR) requirement for banks?

A) To encourage banks to deposit more funds with RBI.
B) To address a shortage of liquidity in the banking system.
C) To prevent excess liquidity from contributing to inflation.
D) To generate more revenue for the central bank.

Answer: C) To prevent excess liquidity from contributing to inflation.

Scroll to Top