Economy

 

Indian Economy Current Affairs, important for Competitive Exams.

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.

New UPI Payment Options Launched by NPCI for Inclusive Digital Payments

On September 7, 2023, the National Payments Corporation of India (NPCI) introduced several new payment options on the Unified Payment Interface (UPI). RBI Governor Shaktikanta Das announced these options at the ongoing Global Fintech Festival in Mumbai. The new options are :

  1. Hello! UPI for voice-enabled payments.
  2. Credit Line on UPI for instant loans.
  3. UPI LITE X for low-cost smartphones.
  4. Tap & Pay for contactless payments.

These additions aim to create an inclusive, resilient, and sustainable digital payments ecosystem and contribute to UPI’s goal of achieving 100 billion transactions per month.

Question: Which organization introduced new payment options on the Unified Payment Interface (UPI)?

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

Answer: B) National Payments Corporation of India (NPCI)

India is the largest source of raw material for Human Hair globally

India is the largest source of raw material for Human Hair globally. The Minister of State for Commerce and Industry, Anupriya Patel, provided this information in a written reply in the Rajya Sabha on 11 August 2023.

  1. In the last fiscal year, India exported Human Hair worth 169.23 million dollars.
  2. The PLEX Council is collaborating with the industry to participate in international trade shows.
  3. The council is also partnering with the government to train Indian exporters to produce high-value products like wigs.

Q.: What is true about India’s role in the Human Hair industry?

a) India is the largest importer of Human Hair.
b) India is the primary consumer of Human Hair products.
c) India is the largest source of raw material for Human Hair in the world.
d) India is the leading manufacturer of Human Hair products.

Ans : c) India is the largest source of raw material for Human Hair in the world.

RBI Keeps Key Interest Rate Unchanged, Introduces Borrower-Friendly Framework

The Reserve Bank of India (RBI) has maintained the key interest rate unchanged for the third consecutive time. The Monetary Policy Committee (MPC) unanimously decided on 10 August 2023, to keep the repo rate steady at 6.5 percent.

  1. The repo rate is the rate at which RBI lends money to commercial banks.
  2. The standing deposit facility (SDF) rate is unchanged at 6.25 percent, and the marginal standing facility (MSF) rate and the Bank Rate remain at 6.75 percent.
  3. The MPC’s focus is on gradually withdrawing accommodation to align inflation with the target while supporting economic growth.
  4. RBI has revised the Consumer Price Index (CPI) inflation target for the current fiscal to 5.4 percent.
  5. RBI Governor Shaktikanta Das projected a real GDP growth of 6.5 percent for the fiscal year 2023-24.
  6. RBI will introduce a framework allowing borrowers to switch from floating to fixed interest rates, benefiting home, auto, and other loan borrowers.
  7. Lenders will need to clearly communicate with borrowers about tenor and Equated Monthly Installments (EMI) under this framework.
  8. The decision to introduce the framework follows supervisory reviews that revealed instances of lenders extending floating rate loan tenors without proper communication or borrower consent.

Q.: What is the repo rate, as defined in the context of the RBI’s monetary policy?

a) The rate at which banks lend money to RBI
b) The rate at which RBI lends money to banks
c) The rate at which RBI lends money to the government
d) The rate at which banks lend money to each other

Ans : b) The rate at which RBI lends money to banks

Record 6.77 Crore Income Tax Returns Filed for 2023-24, 16% Increase Over Previous Year

Central Board of Direct Taxes (CBDT) informed on 1 August 2023 that over 6.77 crore Income Tax Returns (ITRs) have been filed for the financial year 2023-24.

  1. The total number of ITRs filed this year is 16% higher than the previous year, which saw 5 crore 83 lakh filings.
  2. On the last day of filing, over 64 lakh ITRs were filed, indicating a significant surge in last-minute submissions.
  3. The Income Tax Department received over 53 lakh ITRs from first-time filers, suggesting an increase in the number of new taxpayers.
  4. More than 46% of the filed ITRs were submitted using the online ITR utility available on the e-filing portal.

Question: How many Income Tax Returns (ITRs) were filed for the financial year 2023-24?

A) 5.83 crore
B) 6.64 crore
C) 6.77 crore
D) 7.46 crore

Answer: C) 6.77 crore

28% GST on Casinos and Online Gaming

Finance Minister Nirmala Sitharaman announced on 2nd August 2023 that a 28 percent Goods and Services Tax (GST) will be levied on casinos and online gaming based on their face value.

  1. The implementation of the 28 percent GST on online gaming and casinos is scheduled to begin from the 1st of October.
  2. The GST Council will review the implementation after six months.
  3. In the previous meeting, the GST Council recommended taxing actionable claims supplied in Casinos, Horse racing, and Online gaming at 28 percent, regardless of whether they involve a game of skill or chance.
  4. The Council also suggested amending the CGST Act 2017 and IGST Act 2017 to provide clarity on the taxation of supplies in casinos, horse racing, and online gaming.
  5. The meeting was attended by Minister of State for Finance Pankaj Chaudhary, Finance Ministers of States and UTs, and senior officers of the Ministry of Finance.

Question: From which date will the 28% GST on casinos and online gaming be implemented?

A) 1st of November 2023
B) 1st of September 2023
C) 1st of October 2023
D) 1st of December 2023

Answer: C) 1st of October 2023

IMF raises India’s GDP growth forecast to 6.1% for current fiscal

The International Monetary Fund (IMF) in its latest World Economic Outlook report released on 25 July 2023, has raised India’s growth forecast for the current fiscal year, projecting a Gross Domestic Product (GDP) growth of 6.1 percent. This is a revision from the previous projection of 5.9 percent in the World Economic Outlook released in April.

  1. The upward revision of 0.2 percentage points is attributed to the momentum from stronger-than-expected growth in the fourth quarter of 2022, driven by increased domestic investment.
  2. The IMF has maintained the GDP growth projection for the fiscal year 2024-2025 at 6.3 percent.
  3. India continues to hold the title of the fastest-growing economy, with neighboring China estimated to grow at 5.2 percent in 2023 and 4.5 percent in 2024.
  4. The IMF has also revised the projection for global growth output to 3 percent in 2023, up from its previous forecast of 2.8 percent. However, the decline in growth from 2022 to 2023 is driven by weaker manufacturing and idiosyncratic factors, despite stronger services activity.
  5. Global headline inflation is expected to decrease to 6.8 percent in 2023 and further to 5.2 percent in 2024, compared to 8.7 percent in 2022.

Q.: According to the latest report by the International Monetary Fund (IMF), what is the projected Gross Domestic Product (GDP) growth rate for India in the current fiscal year (2023-2024) ?

a) 5.9 percent
b) 6.1 percent
c) 6.3 percent
d) 6.5 percent

Ans : b) 6.1 percent

India and Bangladesh Launch Rupee-Based Bilateral Trade

India and Bangladesh have initiated bilateral trade in Indian rupees. The launch event was organized by Bangladesh Bank and the High Commission of India in Dhaka on July 11, 2023.

  • Trade settlement in Indian rupees will be applicable to export amounts from Bangladesh, while imports from India will still be settled in US dollars.
  • The Eastern Bank and Sonali Bank Ltd will handle trade and transactions from the Bangladesh side, while the State Bank of India and ICICI Bank will handle operations from the Indian side.
  • Bangladesh is India’s largest trade partner in South Asia, and India is the second largest trade partner of Bangladesh in Asia.
  • The Reserve Bank of India has permitted banks from 18 countries, including Germany, Russia, Singapore, Sri Lanka, the United Kingdom, Myanmar, and Oman, to trade in rupees.
  • With this development, Bangladesh becomes the 19th country to engage in trade with India using rupees.

Q.: Which of the following statements is true?
a) Bangladesh is India’s largest trade partner in Asia.
b) India is Bangladesh’s largest trade partner in South Asia.
c) India and Bangladesh do not engage in bilateral trade.
d) India and Bangladesh trade only in US dollars.

Ans : b) India is Bangladesh’s largest trade partner in South Asia.

SGX Nifty is now Gift Nifty : Trading Shifts to GIFT City in Gandhinagar

The SGX Nifty has started trading as GIFT Nifty at GIFT City in Gandhinagar on July 3, 2023. NSE’s international contracts, previously traded in Singapore, will now be traded at Gujarat International Finance Tec-City (GIFT City).

The migration of GIFT-NIFTY to GIFT City will strengthen GIFT-IFSC as a global hub for international financial products and services.

GIFT Nifty will have two trading sessions: the first session from 6:30 am to 3:40 pm IST and the second session from 5 pm to 2:45 am.

Nifty stands for ‘National Stock Exchange Fifty’ and is the index for the National Stock Exchange. SGX stands for Singapore Exchange (SGX).

Q.: Where will the trading of NSE’s international contracts, previously done in Singapore, take place now?
a) Singapore Stock Exchange
b) Mumbai Stock Exchange
c) GIFT City in Gandhinagar
d) International Financial Services Centres Authority (IFSCA)

Answer: c) GIFT City in Gandhinagar

Apple is set to launch its credit card in India.

  • iPhone maker Apple is planning to introduce its credit card, known as Apple Card, in India to take advantage of the growing opportunities in the country’s financial sector.
  • Apple intends to collaborate with HDFC Bank to offer Apple Card to Indian customers.
  • In India, only banks can launch credit cards while UPI is for customers to make seamless and fast payments by scanning QR codes through mobile phones.
  • Apple has held talks with the Reserve Bank of India on the modalities of the card. RBI has reportedly asked the company to follow the regular process for co-branded credit cards.

Qns : Which bank is Apple planning to collaborate with to offer the Apple Card in India?
(A) ICICI Bank
(B) HDFC Bank
(C) State Bank of India
(D) Axis Bank
Ans : (B) HDFC Bank

Reserve Bank of India allows banks to use RuPay Prepaid Forex Card.

  • In a bid to expand payment options for Indians traveling abroad, the Reserve Bank has decided to allow issuance of RuPay prepaid forex cards by banks in India for use at ATMs, POS machines and online merchants abroad.
  • It is proposed to expand the scope and reach of e-Rupee vouchers by allowing non-bank prepaid payment instrument issuers to issue e-Rupee vouchers. It will enable issuance of e-Vouchers on behalf of individuals and simplify the process.
  • RBI has decided to issue guidelines on Default Loss Guarantee Mechanism in Digital Lending to further promote responsible innovation and prudent risk management.
  • The regulatory framework for digital lending was released in August and September 2022.
  • The guidelines will further facilitate orderly growth of the digital lending ecosystem and enhance credit penetration in the economy.
  • It has been decided to extend the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by March 2026 by two more years as many UCBs have already completed the required targets by March 2023, Those who have met the targets by 2023 will be given suitable incentives.

Qns : What can the RuPay prepaid forex cards be used for?
(A) Online transactions within India
(B) Cash withdrawals from ATMs in India
(C) Payments at Point of Sale (POS) machines abroad
(D) All of the above
Ans : (D) All of the above

Reserve Bank of India Governor Shaktikanta Das launched the Financial Inclusion Dashboard – ANTARDRIHSTI.

  • Reserve Bank of India Governor Shaktikanta Das launched a Financial Inclusion Dashboard – ANTARDRIHSTI on 5th June.
  • As the name suggests, the dashboard will provide necessary insights to assess and monitor the progress of financial inclusion by capturing relevant parameters.
  • The facility will also enable the ability to measure the extent of financial exclusion on a country wide basis so that such areas can be addressed.
  • The dashboard, which is currently for internal use at RBI, will facilitate greater financial inclusion through a multi-stakeholder approach.

Qns : Who launched the Financial Inclusion Dashboard – ANTARDRIHSTI on 5th June 2023?
(A) Prime Minister of India
(B) Finance Minister of India
(C) Governor of Reserve Bank of India
(D) Ministry of Defence of India
Ans : (C) Governor of Reserve Bank of India

Banks across the country have started accepting Rs 2,000 notes for exchange from 23 May.

  • Banks across the country have started accepting Rs 2,000 notes in exchange from 23 May.
  • The Reserve Bank of India, in a circular issued on 22 May, has directed banks to maintain data on the amount of Rs 2,000 notes exchanged and deposited in accounts on a daily basis.
  • RBI said that the facility of exchanging Rs 2000 notes over the counter will be provided to the public in the usual manner.
  • Earlier, on May 19, the RBI had announced the withdrawal of Rs 2,000 notes from circulation.
  • The Rs 2,000 note was issued in 2016 after the central government announced demonetisation of old Rs 500 and Rs 1,000 notes.

Qns : When were the Rs 2,000 notes issued by the Reserve Bank of India?

(A) 2015
(B) 2016
(C) 2017
(D) 2018

Ans : (B) 2016

RBI withdraws Rs 2000 note from circulation under the “Clean Note Policy”.

  • The Reserve Bank of India has decided to withdraw Rs 2,000 denomination banknotes from circulation under the “Clean Note Policy”. However, Rs 2,000 notes will continue to be legal tender.
  • The Reserve Bank of India (RBI) has announced the withdrawal of Rs 2,000 notes from circulation on 19th May.
  • The Reserve Bank of India (RBI) has advised people to exchange these notes by 30 September. From May 23, 2023, can be changed in any bank up to a limit of Rs 20000 at a time.
  • RBI had issued 2000 note in November 2016. These notes were issued under section 24(1) of the RBI Act 1934.
  • According to RBI, Rs 2000 notes are generally not used much in transactions. Under the clean note policy of RBI, it has been decided to withdraw Rs 2,000 notes from circulation. In the year 2018-2019, the government had stopped the printing of Rs 2,000 notes.

Clean Note Policy :

The Clean Note Policy was adopted by the RBI to ensure availability of good quality banknotes to the public. The objective of the policy is to maintain the integrity of Indian currency by removing damaged, counterfeit or soiled notes from circulation.

Qns : Which note has been decided to be withdrawn by the Reserve Bank of India (RBI) on 19th May under the “Clean Note Policy”?
(A) Rs. 200 note
(B) Rs. 100 note
(C) Rs. 500 note
(D) Rs. 2000 note
Ans : (D) Rs. 2000 note

India’s economic success was welcomed at the Asian Development Bank meeting in South Korea.

  • The Finance Minister of India, Nirmala Sitharaman, led the Indian delegation to the 56th Annual General Meeting of the Board of Governors of Asian Development Bank (ADB) in South Korea.
  • India is in a pole position as the fifth largest economy in the world and is soon expected to become the fourth largest economy.
  • The Finance Minister’s visit highlighted India’s potential as the fastest-growing large economy and raised issues such as climate change and innovative financing for climate finance.
  • ADB’s objective is to envision a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while eradicating extreme poverty in the region.
  • India’s success in building digital and physical infrastructure that alone and cumulatively contributes to poverty alleviation has been repeatedly mentioned in Fund Bank meetings and ADB meetings.
  • The world has applauded the Aadhaar identity platform, which creates inclusive accounts with Jan Dhan, Aadhaar and mobile trinity, and the success of National Payments Corporation of India and UPI. At least seven or eight countries have shown interest in creating a common identity platform.

Qns : Who led the Indian delegation to the 56th Annual General Meeting of the Board of Governors of Asian Development Bank (ADB)?

(A) Nirmala Sitharaman
(B) Narendra Modi
(C) Rahul Gandhi
(D) Amit Shah

Answer : (A) Nirmala Sitharaman

Ajay Banga set to be next President of World Bank

World Bank confirmed that Indian origin Ajay Banga will be the next President of the World Bank. The World Bank’s 25-member executive board elected him to a five-year term as president.

Banga, 63, former CEO of Mastercard was nominated for the post by United States President Joe Biden in late February. He was the sole contender to replace departing World Bank chief David Malpass, an economist and former US Treasury official who served in the Trump administration.

Ajay Banga will assume the charge of President, World Bank on June 2.

World Bank board members interviewed Mr Baga on 1st May 2023 and he was elected in a vote by 24 out of 25 board members, with Russia abstaining.

Question: Who has been confirmed as the next President of the World Bank?
a) David Malpass
b) Ajay Banga
c) Joe Biden
d) Nirmala Sitaraman

Answer: b) Ajay Banga

RBI announces status quo on policy rates, projects 6.5% GDP growth for 2023-24

On 6th April 2023, The six-member monetary policy committee headed by RBI Governor Shaktikanta Das announced a status quo on policy rates.

  • The monetary policy committee has unanimously decided to keep the repo rate unchanged at 6.5 percent.
  • The standing deposit facility SDF rate will remain stable at 6.25 percent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 percent.
  • The pause in rate hike comes after six successive rate hikes.
  • RBI has projected GDP growth for 2023-24 at 6.5 percent with risks evenly balanced.
  • Inflation is expected to moderate to 5.2 percent.
  • The next meeting of the Monetary Policy Committee would be held from the 6th to 8th of June 2023.

Question : What is the repo rate?
a) The rate at which banks lend to the RBI
b) The rate at which RBI borrows money from the banks
c) The rate at which RBI lends to banks
d) None of the above

Answer: c) The rate at which RBI lends to banks

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