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    Indian Economy Current Affairs, important for Competitive Exams.

    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

    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

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