Current Affairs - June to August 2019

Month August 2019 Type Banking and Economy

215 Current Affairs were found in Last Three Months for Type - Banking and

Economy

(Showing 186 Important Ones)

Economy
1. Asian Development Bank (ADB) approved a project worth INR 1650 crores to develop infrastructure in seven districts of Tripura -
Khowai, Ambassa, Dharmnagar, Kailashahar, Udaipur, Bishramganj and Belonia.
2. Ministry of Statistics and Programme Implementation's National Statistical Office (NSO) released estimates of Gross Domestic Product
(GDP) for first quarter (April-June) Q1 of 2019-20 -
GDP growth rate came down to 6 year low of 5% in Q1 of FY 2019-20 financial year, triggered by huge slowdown in manufacturing
sector.
GDP at Constant (2011-12) Prices in Q1 of 2019-20 is estimated at 35.85 lakh crores, as against 34.14 lakh crore in Q1 of 2018-
19, showing growth rate of 5.0 %.
Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 of 2019-20 also shown slow growth rate of 4.9 % over
corresponding quarter of previous year.
The Q1 FY 2019-20 Growth rate is much lesser than most agencies had predicted, showing slowing down state of the economy.
Earlier, India's GDP growth was 5.8 % in Q4 of FY 2018-19, 6.6 % in Q3, after strong growth of 7.1% in Q2 and 8.2% in Q1 of FY
2018-19. GDP Growth Rate of FY 2018-19 was 6.8 %.
3. PNB Subsidiary PNB Housing Finance Ltd has raised $100 million from World Bank Group Member International Finance Corporation.
This is 1st ECB (external commercial borrowings) outlay made under RBI automatic route for current financial year (FY2019-20) (out of
upto $750 million ECB allowed by RBI).
RBI also relaxed norms of funds raised through External Commercial Borrowings (ECB) for second time this year, to raise cheaper
Offshore funds by Corporates and Non Banking Financial Companies (NBFC). Over last 10 months many corporates and NBFCs have
faced liquidity shortage due to the collapse of Infrastructure Leasing and Financial Services (IL&FS) in September 2018.
4. 36th GST Council Meeting held in New Delhi, under chairmanship of Finance & Corporate Affairs Minister Nirmala Sitharaman. Key
Highlights
GST rate on all electric vehicles be reduced from 12% to 5%.
GST rate on charger or charging stations for Electric vehicles be reduced from 18% to 5%.
Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.
5. 4th Advance Estimates of production of major crops for 2018-19 released by Department of Agriculture, Cooperation and Farmers
Welfare -
Foodgrains – 284.95 million tonnes.
Rice – 116.42 million tonnes. (record)
Wheat – 102.19 million tonnes (record)
Nutri / Coarse Cereals – 42.95 million tonnes.
Maize – 27.23 million tonnes.
Pulses – 23.40 million tonnes.
Gram – 10.13 million tonnes.
Tur – 3.59 million tonnes.
 Oilseeds – 32.26 million tonnes.
Soyabean – 13.79 million tonnes
Rapeseed and Mustard – 9.34million tonnes
Groundnut – 6.69 million tonnes
Cotton – 28.71 million bales (of 170 kg each)
Sugarcane – 400.16 million tonnes (record)
As per Fourth Advance Estimates for 2018-19, total Foodgrain production in country is estimated at 284.95 million tonnes which is
higher by 19.20 million tonnes than the previous five years’ (2013-14 to 2017-18) average production of foodgrain.
6. 7th Economic Census (EC), conducted by Ministry of Statistics and Programme Implementation (MoSPI) commenced from Tripura. It is
held after a gap of 5 years. As per previous Economic Census conducted in 2013, there were 58.5 million establishments employing around
131 million workers.
Implementing Agency is Common Services Centers (CSC) e-Governance Services India Limited, a Special Purpose Vehicle (SPV)
under Ministry of Electronics and Information Technology (MeITY).
Fieldwork will be completed by December and results at national level will be available by March 2020.
7. As part of measures for mitigating genuine difficulties of Start-ups, CBDT has decided to form a dedicated cell headed by Member (IT &C)
- Currently Pramod Chandra Mody (He is also CBDT Chairman). Cell will work towards redressal of grievances and mitigate tax-related
issues in case of Start-ups.
8. India signed $287 million loan with World Bank for Tamil Nadu Health System Reform Programme, aimed at improving quality of health
care, reduce burden of non-communicable diseases (NCDs), and fill equity gaps in reproductive and child health services in Tamil Nadu.
9. MOU signed between Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI) for data exchange, amid
increasing need for surveillance in context of Corporate Frauds affecting important sectors of economy. It will enable automated sharing of
related information among SEBI and MCA.
10. Atal Pension Yojana ((APY), launched in May 2015, has reached 1.68 crore subscribers so far. It aims at creating a universal social security
system for all Indians, especially the poor, the under-privileged and the workers in the unorganised sector.
11. A Committee constituted by Reserve Bank of India (RBI) submitted its Report to the RBI, recommending limit for collateral free lending
to be increased to Rs.20 lakh for MSMEs and Self-Help Groups (SHGs). Committee has also recommended revision of loan limit
sanctioned under MUDRA to Rs.20 lakh from Rs.10 lakh.
12. A joint venture company named Khanij Bidesh India limited (KABiL) has been set up with participation of 3 Central Public Sector
Enterprises - National Aluminium Company Limited, Hindustan Copper Limited and Mineral Exploration Company limited. KABIL will
ensure supply of critical Minerals to Indian domestic market. Equity participation between NALCO, HCL and MECL is in ratio of 40:30:30.
13. According to Credit Rating Agency (ICRA), India’s Current Account Deficit (CAD) will remain steady at a range of 16-17 billion dollars or
2.3 % of GDP (Gross Domestic Product) in first quarter, despite recent slowdown in Merchandise exports and imports.
CAD is expected to widen from 63 to 68 billion dollars in FY2020, from 57.2 billion dollars in FY2019, remaining steady at 2.1 % of
GDP.
Merchandise trade deficit is expected to widen about 193 billion to 198 billion dollars in FY20 from 180 billion dollars in FY18.
14. According to IDFC Institute’s Report on Reforming Urban India, Indian Cities contribute between 59% and 70% of India’s Gross
Domestic Product (GDP). They need urgent reforms in order to unlock their economic potential and transform the quality of life.
15. According to National Council of Applied Economic Research (NCAER), Business confidence index (BCI) of India slipped 9.1 % in fourth
quarter of 2018-19.Political Confidence Index (PCI) of businesses increased by 12.1% on a quarterly basis in Q4.
BCI is an indicator of business sentiments across Indian industry segments, compiled by NCAER on the basis of four components.
16. According to TransUnion CIBIL - SIDBI MSME Pulse Report -
Gujarat is ranked first in terms of performance and credit growth potential for MSME Corporate Lending in India, maintained since
past 4 years. Gujarat was followed by Andhra Pradesh, Haryana, Karnataka and Delhi.
Andhra Pradesh was ranked highest in market growth in FY19.
MSME corporate entities are borrowers with aggregate credit exposure of up to Rs 50 crore. Market size of this category is Rs 17.6
lakh crore as of March 2019.
17. Aditya Birla Idea Payments Bank (ABIPBL) will shut down its operations within 18 months of launch due to unanticipated developments
in the business landscape that have made the economic model unviable.
ABIPBL is a joint venture by Aditya Birla Nuvo Ltd (51% stake) and Idea Cellular (49%).
It is first payments bank to close down after Payment banks were approved by RBI in 2015.Payment banks are struggling due to
operational restrictions put by RBI related to operations.
18. Airtel Payments Bank partnered with Bharti AXA Life Insurance to offer Bharti AXA Life POS (Point of Sale) Saral Jeevan Bima Yojana, a
pure life term insurance plan up to Rs 5 lakh which is aimed at the under-insured and uninsured segments in India.
19. Amazon will acquire 49% stake in Kishore Biyani-led Future Coupons Ltd for an undisclosed amount.
20. An Internal Working Group of RBI on Comprehensive Review of Market Timings suggested calibrated extension of Currency Market
(Foreign Exchange Market) hours, from 9 am to 9 pm for both Over Counter (OTC) and Exchange Traded, from current closure time of 5
pm. Recommendations -
Call Market's timings could be extended till 6 pm. As Real Time Gross Settlement (RTGS) system is operational till such time.
Bond Market - On account of lack of demand from participants group recommended that the government bond market timing can be
retained and the market be closed at 5 pm.
G-Sec Trading - Currently there have been no requests from any market participants seeking extension of market hours for G-sec
trading.
21. As a mesaure for businesses to solve pre-GST disputes with tax authorities, Govt. notified Sabka Vishwas-Legacy Dispute Resolution
Scheme 2019. It will be operationalized from September 2019 and will continue till 31st December 2019. .
2 main components of Scheme are dispute resolution and amnesty. Dispute resolution is aimed at liquidating legacy cases of Central
Excise and Service Tax that are subsumed in GST and are pending in litigation at various forums. Amnesty Scheme offers an
opportunity to taxpayers to pay the outstanding tax and be free of any other consequence under the law.
Scheme provides substantial relief in tax dues for all categories of cases as well as full waiver of interest, fine, penalty.
22. As per Periodic Labour Force Survey (PLFS) 2017-18 by National Sample Survey Office (NSSO), 33% of India’s skilled youth are jobless.
Nearly a third of trained young men and more than a third of trained young women were unemployed.
23. As per 2nd edition of payments solution company Razorpay digital transactions quarterly report - ‘The Era of Rising Fintech’ -
Bengaluru is at top in list of “most digitised cities”, accounting for highest card payments. It is followed by Hyderabad, Mumbai,
Pune, and Delhi.
Top five digitised states - Karnataka, Maharashtra, Tamil Nadu, Andhra Pradesh, and New Delhi.
24. As per Crisil report, overall non-performing assets (NPAs) declined atto 9.3% in March 2019, compared to 11.5% in March 2018. The
decline is supported by RBI’s asset quality review and also with enactment of the bankruptcy law for resolving cases.
25. As per Data released by Controller General of Accounts (CGA), Government met fiscal deficit target of 3.4% for FY 2018-19, with Fiscal
deficit being 3.39 %. It was met through reduction in government spending, which also contributed to GDP growth slowing to 5.8% in Q4 of
FY19.
For FY19, the fiscal deficit stood at Rs 6.45 trillion(Lakh crore), slightly above than the revised estimate of Rs 6.34 trillion.
Expenditure of government was Rs 23.11 lakh crores, which is 1.5 lakh crores INR less than revised budget size of 24.57 lakh crores.
Revenue deficit for FY19 was 108.2% of full year target, compared to 102% for FY18.
Revenue for FY19 was 16.66 trillion, about Rs 1.57 trillion less than revised estimates of Rs 18.23 trillion. Net tax revenue for FY19
was at 88.7% of the revised full year target, compared to 97.9% for the same period last year.
26. As per External Sector Report of International Monetary Fund (IMF), India’s current account (CA) balance deficit rose to $68 billion in
2018-19 from $49 billion in 2017-18.
India's Net International Investment Position improved with deficit coming down from $438 billion in 2017-18 to $431 billion in
2018-19. India's overall international reserves, stood at $411.9 billion at end of March 2019, down from March last year by $12.5
billion.
27. As per LinkedIn’s fourth edition of Top Companies list for India 2019 -
Walmart Owned Flipkart ranked as best workplace in India.
Top 5 - Flipkart, Amazon, OYO, One97 Communications, Uber.
28. As per RBI Report on Benchmarking India’s Payment Systems -
Report said that India has strong regulatory system and robust large value and retail payment systems, which have contributed to the
rapid growth in volume of transactions in these payment systems. However, India needs to make more efforts to decrease volume of
paper clearing and increase acceptance infrastructure to promote digital payments.
With e-Money transactions of 345.9 Crores in 2017, Share of e-Money in India’s payment systems rose to 21.5 % in 2017 from 0.8 %
in 2012. India has 26 % of online transactions using e-Money, next only to China.
29. As per RBI report, bank frauds have been reached to INR 71,500 crores in 2018-19 with over 6,800 cases. In 2017-18, 5,916 cases were
reported by banks which involved Rs 41,167.03 crore. In last 11 fiscal years, 53334 cases of fraud were reported by banks involving amount
of INR 2.05 lakh crores.
 ICICI Bank Reported 6811 Frauds, most for any Bank , involving INR 5033 crores. SBI was 2nd with 6793 fraud cases involving Rs
23,734 crores.
30. As per report Status of Unaccounted Income/Wealth Both Inside and Outside the Country – A Critical Analysis of Standing Committee
on Finance headed by M Veerappa Moily -
3 separate studies which were conducted by 3 premier institutes- The National Institute of Public Policy and
Finance (NIPFP), National Council of Applied Economic Research (NCAER) and the National Institute of Financial
Management (NIFM) showed that the unaccounted wealth held by Indians was estimated in the range of $216.48 billion to $490
billion between 1980 and 2010.
NCAER study reported that unaccounted wealth accumulated outside India was estimated between $384 billion and $490 billion
during the 1980-2010 period.
NIFM reported illicit outflow at current value (including opportunity cost) from India in reform period (1990-2008) was $216.48
billion and illicit outflows from country was estimated on an average at 10% of estimated unaccounted income.
NIPFP reported that during 1997-2009, illicit financial outflows were in the range of 0.2% to 7.4% of the Gross Domestic Product
(GDP).
31. As per report Top 100 Retailers in Asia 2019 by market research firm Euromonitor International -
Walmart, which acquired Flipkart in 2018($16 Bn deal) topped rankings in India for 2018 with Gross Merchandise Volume(GMV) of
$14.49 Billion. Amazon is 2nd with $9.8 Bf GMV followed by Future Group with $3.8Bn GMV(3rd position) and Reliance 4th ($3.6
Bn).
32. Asian Development Bank (ADB) and Multilateral Investment Guarantee Agency (MIGA), political risk insurance arm of World Bank
Group, agreed to expand Development Finance in Asia and Pacific to increase flow of private sector investment.
33. Asian Development Bank sanctioned INR 1925 crore rupees project for upgradation of power generation and distribution in Tripura. It
Includes upgrading capacity of 63 MW Rokhia Project to 120 MW and modernising Gumti Hydro Electric Project.
34. Asian Infrastructure Investment Bank (AIIB) will provide $100-million loan to L&T (Larsen & Toubro) Infrastructure Finance
Company(LTIF) for wind and solar infrastructure projectsl, as first AIIB Loan to a non-banking finance company(NBFC).
This will help reduce carbon intensity by 30-35 % of 2005 levels by 2030, which is India’s commitment under Paris agreement.
35. AustralianSuper and Ontario Teachers’ Pension Plan will invest $1 billion each in the National Investment and Infrastructure Fund
(NIIF) Master Fund. The agreements include commitments of $250 million each in the Master Fund and co-investment rights of up to
$750 million each in future opportunities alongside Fund.
NIIF is India’s first sovereign wealth fund that was set up by the Government of India in February 2015. It manages over $4 billion of
capital commitments across three funds.
Fund invests in equity capital in core infrastructure sectors in India with a focus on transportation, energy and urban infrastructure.
36. Bandhan Bank partnered with multinational banking and financial services company Standard Chartered Bank to provide co-branded
credit cards, with credit period upto 52 days.
37. Bank of Baroda (BoB) and Edelweiss Group's ECL Finance partnered to explore co-lending opportunities to MSME, self-employed and
priority sector groups.
38. Bombay Stock Exchange (BSE) signed agreement with Haryana government to encourage state's micro, small and medium enterprises
(SMEs) to raise capital. It will facilitate SMEs in raise funds through BSE's dedicated platform for SMEs "BSE SME" where small
companies can raise productive capital and gain visibility.
39. Brand ‘Tata’ has been ranked as India’s most valuable brand in 2019, according to a report by London-based consultancy Brand Finance.
Tata’s brand value rose to $19.6billion (up 37% from last year), with LIC ($7.3 billion) and Infosys ($6.5 billion) at next 2 Places.
40. CARS24, online marketplace for buying and selling used cars received a license of a Non-banking Finance Company (NBFC) from RBI. It
will now venture into consumer lending business as a separate entity within Cars24 group. Cars24 Financial Services will facilitate vehicle
loans to customers as well as finance channel partners to help them expand their businesses.
41. Cabinet approved several amendments to Insolvency and Bankruptcy Code 2016, to speed up bankruptcy resolution process.
Amendments -
Resolution process must be completed within 330 days, up from 270 days currently.
Cabinet clarified rights of financial as well as operational creditors who have not spoken in favour of a resolution. Amendment
proposes that they will get a share of proceeds from the sale of the debtor company or its liquidation as per the hierarchy specified in
IBC.
Committee of Creditors (CoC) will have power to take commercial decisions on distribution of funds to various classes of creditors.
 Bankruptcy resolution or liquidation decided under bankruptcy framework is binding on central, state and local governments, to
whom insolvent company owes dues. This will prevent state authorities including income tax officials from questioning a rescue plan
adopted in a court-monitored process.
Amendment will ensure that a majority vote from creditors such as homebuyers will be counted as a 100% vote from that class of
creditors in favour of or against a resolution plan.
42. Canara Bank launched India’s first one-time password (OTP) facility for ATM withdrawals. The OTP will be activated for cash
withdrawals over Rs.10,000 per day at its ATMs to protect its cardholders from unauthorized withdrawal.
43. Central Board of Direct Taxes (CBDT) notified that small startups with a turnover of up to Rs 25 crore will continue to get the promised
tax holiday as specified in Section 80-IAC of Income Tax (IT) Act 1961. It provides a deduction for 100% of income of an eligible startup for
3 years out of 7 years from the year of its incorporation.
44. Competition Commission of India (CCI) approved merger of Indiabulls Housing Finance and Lakshmi Vilas Bank, in a share swap deal.
After merger, Indiabulls Housing Finance will get Long sought entry into Banking Space.
45. Confederation of Indian Industry (CII) launched a Fiscal Performance Index (FPI) to assess state and central budgets. It incorporates
qualitative assessments of revenue expenditure, capital expenditure, revenues, fiscal prudence and level of public debt arrive at a more
holistic picture of fiscal performance than fiscal deficit to GDP ratio. FPI has been constructed using United Nations Development
Programme’s (UNDP) Human Development Index methodology.
46. Department of Telecom (DoT) approved levying of penalty on Bharti Airtel and Vodafone Idea for denial of interconnection to Reliance
Jio Infocomm, when Jio entered market in 2016.
DoT asked Telecom Regulatory authority of India (TRAI) to review penalty amount worth INR 3050 crores, considering financial
stress in telecom sector.
In October 2016, TRAI recommended fine for Airtel and Vodafone amounting to INR 1050 crore each and for Idea it was 950 crores.
New Merged Entity Vodafone-Idea will have to bear combined burden.
47. Digital Communications Commission (DCC) approved cumulative penalty of INR 3050 crores that regulator TRAI had imposed on Bharti
Airtel and Vodafone Idea for not providing points of interconnection to Reliance Jio when it entered the market. DCC will send the
recommendation to Department of Telecom for their decision.
48. Economic Advisory Council to the Prime Minister (Headed by Bibek Debroy) released note titled ‘GDP estimation in India- Perspectives
and Facts’. It provides clear rationale for India’s switch to an improved GDP estimation methodology in January 2015.
New methodology uses 2011-12 as base year and includes two major improvements - Incorporation of MCA 21 database and
Incorporation of Recommendations of System of National Accounts (SNA) 2008.
The note Rejects Points noted in recently published paper titled India’s GDP Mis-estimation: Likelihood, Magnitudes, Mechanisms,
and Implications’ by Arvind Subramanian, which said that India’s GDP was over-estimated post 2011-12.
Note says that India’s GDP estimation methodology is not a perfect exercise and Ministry of Statistics and Program Implementation
is working to improve its accuracy. However, as of now, India’s GDP estimation methodology is at par with its global standing.
49. Export-Import Bank of India (Exim Bank) will provide Line of Credit (LoC) worth $150 million to Ghana and $95 million to Mozambique
for agricultural and railway projects.
50. Finance Minister Nirmala Sitharaman announced Merger of several Public sector Banks, aimed at minimizing administrative tasks and
maximize growth and profitability-
Merger 1 - Punjab National Bank + Oriental Bank of Commerce + United Bank
It will create 2nd largest PSB with business of 17.95 lakh crores.
Anchor Bank - Punjab National Bank
Merger 2 - Canara Bank + Syndicate Bank
It will create 4th largest PSB with business of 15.20 lakh crores.
Anchor Bank - Canara Bank
Merger 3 - Union Bank + Andhra Bank + Corporation Bank
It will create 5th largest PSB with business of 14.59 lakh crores.
Anchor Bank - Union Bank of India
Merger 4 - Indian Bank + Allahabad Bank
It will create 7th largest PSB with business of 8.08 lakh crores.
Anchor Bank - Indian Bank
Note That SBI Associate Banks were merged into SBI in May 2016 and Dena Bank and Vijaya bank were merged into Bank of Baroda
in April 2019.
 PSBs that are left out of this round of mergers - Bank of India, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of
Maharashtra and Punjab and Sind Bank.
After mergers, 12 PSBs will be functional in country.
51. Finance Minister Nirmala Sitharaman anounced several measures to boost economy, amid suspected slow down in economic growth. Key
points
INR 70000 crores capital to be provided to public sector banks, to boost lending and improving liquidity situation.
Surcharge on long and short term capital gains arising from transfer of equity shares has been withdrawn, which was announced in
Budget 2019-20. FPIs have pulled out Rs 23,000 crore from domestic equities in July and August, as Budget proposal to levy a
surcharge on higher tax-income groups affected 40 per cent of FPIs. It made investment in Indian equities unattractive.
To revive struggling Auto Sector -
BS IV vehicles bought before 31st March 2020 will remain operational for their full period of registration.
Hiking one time registration fees has been deferred till June 2020.
Ban on purchase of vehicles by government departments has been lifted, allowing additional 15 per cent depreciation, taking it
to 30 per cent, on vehicles acquired from now till March 2020.
Banks will pass on RBI rate cut benefits to borrowers through MCLR reduction. Banks will launch repo rate and external benchmark-
linked loan products that will lead to reduced easy monthly installments for housing, vehicle and other retail loans.
As a major relief to entrepreneurs and startups, 'angel tax' provision will be withdrawn for startups and their investors. Angel tax has
been a major issue among entrepreneurs and in startup ecosystem.
MSMEs to get all their pending GST refunds within 30 days. Also, all GST refunds of MSMEs will be paid within 60 days from date of
application.
Non-banking financial companies (NBFCs) will be permitted to use the Aadhaar based bank mandated KYC (Know Your Customer)
to avoid repeating the process for customers. It will simplify process of availing credit.
To boost credit support for purchase of houses, National Housing Bank (NHB) will offer additional liquidity support of Rs 20,000
crore to housing finance companies (HFCs). This will increase total liquidity support to Rs 30,000 crores.
52. Fincare Small Finance Bank and Kookmin Bank included in second schedule of Reserve Bank of India Act 1934. Both banks can now
broad-base its lines of funding and liquidity facilities.
53. Fitch Ratings certified long-term Issuer Default Ratings (IDRs) to six banks - State Bank of India(SBI), Bank of Baroda(New Zealand),
Punjab National Bank(PNB), Bank of Baroda (BOB), Canara Bank and Bank of India (BOI), with ‘BBB-‘ a stable outlook.
Rating of IDBI Bank’s long-term IDR was certified at ‘BB+’.
5 banks were also given the Viability Ratings (VR). BOB’s VR is maintained at Rating Watch Negative (RWN) and VR of Canara Bank
was downgraded to ‘bb-‘ from ‘bb’ as bank’s core capital position was not compared with its weak asset quality and earnings.
54. GST collectiong in May 2019 were INR 100289 crores (CGST - 17811 crore, SGST - 24462 crore, IGST - 49891 crore and Cess - 8125
crores). Its the third consecutive month of GST revenue being over 1 Lakh Crores INR. In April 2019, It was 113865 crores, highest ever
monthly receipts ever in GST regime.
55. Government decided to reduce rate of contribution under ESI Act from 6.5% to 4% (employers’ contribution being reduced from 4.75% to
3.25% and employees’ contribution beingreducedfrom 1.75% to 0.75%).
Reduced rates will be effective from July 2019, to benefit 3.6 crore employees and 12.85 lakh employers.
Reduced rate of contribution will bring substantial relief to workers and will facilitate further enrollment of workers under ESI
scheme and bring more workforce into formal sector.
Also, reduction in contribution of employers will reduce financial liability of employers, enhancing Ease of Doing Business.
Earlier, Government enhanced Wage ceiling from INR 15000 to 21000 per month from July 2017, to expand Social Security
Coverage to more and more people.
ESI Act 1948 provides for medical, cash, maternity, disability and dependent benefits to Insured Persons under Act, administered by
Employees’ State Insurance Corporation (ESIC).
56. Government eMarketplace and Steel Authority of India signed MoU to set up GeM Organizational Transformation Team - Project
Management Unit (GOTT-PMic. With this, SAIL became first PSU to establish GOTT PMU for transforming their procurement landscape
and increasing their footprint on GeM.
57. Government extended facility of Kisan Credit Card (KCC) to fisheries and animal husbandry farmers to help them meet their working
capital needs. It will help fisheries and animal husbandry farmers to meet their short term credit requirements of rearing of animals,
poultry birds and other aquatic organisms and capture of fish.
 Under KCC, credit limit is 3 lakh rupees is given to eligible beneficiaries, with interest subvention is at rate of 2 % per annum at
disbursal and additional interest subvention of 3 % per annum in case of prompt repayment.
58. Government fixed price at Rs.3443 per gram for the new series of Sovereign Gold Bonds (SGBs) opening July 8.
Government, in consultation with RBI, has formulated scheme for issuing Sovereign Gold Bonds every month from June - September
2019 as per Given calendar. Bonds will be sold through Scheduled Commercial banks, Stock Holding Corporation of India Limited
(SHCIL), designated post offices, and recognised stock exchanges - NSE and BSE.

S.No. Tranche Date of Subscription Date of Issuance

1 2019-20 Series I June 03-07, 2019 June 11, 2019 (Issue price to be INR 3196 per gram)

2 2019-20 Series II July 08–12, 2019 July 16, 2019 (Issue price to be INR 3443 per gram)

3 2019-20 Series III August 05-09, 2019 August 14, 2019

4 2019-20 Series IV September 09-13, 2019 September 17, 2019

Features -

Sl. No. Item Details

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and
Eligibility
Charitable Institutions.

Denomination The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.

The tenor of the Bond will be for a period of 8 years with exit option after 5th year to be exercised
Tenor
on the interest payment dates.

Minimum size Minimum permissible investment will be 1 gram of gold.

Maximum The maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for
limit trusts.

Joint holder In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.

Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of
Issue price gold of 999 purity. Issue price will be 50 per gram less for those who subscribe and Pay online.
Cash Payment of Max INR 20000 will be accepted.

The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-
Interest rate
annually on the nominal value.

Commission for distribution of the bond shall be paid at the rate of 1% of the total subscription
Commission
received. Receiving offices shall share at least 50% of commission with agents.

59. Government infused INR Rs 3.15 lakh crore into public sector banks(PSB) in the last 11 years up till 2018-19. Also, Govt. Banks have loans
of worth INR 1.50 trillion as wilful defaults in 2018-19, with SBI at top with INR 461.58 billion.
60. Government issued a scheme named Partial Credit Guarantee offered by Government of India (GoI) to Public Sector Banks (PSBs) for
purchasing high-rated pooled assets from financially sound Non-Banking Financial Companies (NBFCs)/Housing Finance Companies
(HFCs).
Scheme would enable public sector banks (PSBs) to purchase pooled assets of financially sound NBFCs amounting to Rs. one lakh
crore.
Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman in her Budget Speech for Union Budget 2019-20 had made the
announcement to support fundamentally sound Non-Banking Financial Companies (NBFCs) in getting continued funding from
banks.
Anouncement said - For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of Rupees One lakh
crore during the current financial year, Government will provide one time six months’ partial credit guarantee to Public Sector
Banks for first loss of up to 10%.
Window for one-time partial credit guarantee offered by Govt. will open from date of issuance of Scheme for period of six months, or
till such date by which Rupees One lakh crore assets get purchased by banks, whichever is earlier.
One-time guarantee provided by Govt. on pooled assets will be valid for 24 months and can be invoked on occurrence of default.
Eligible NBFCs/HFCs (as on as on 31-03-2019) -
CRAR of NBFCs/CAR of HFCs should not be below regulatory minimum (i.e. 15% for NBFCs and 12% for HFCs) as on 31-3-
2019.
Non-Performing Asset should not be more than 6% .
 Micro Finance Institutions and Core Investment Companies are not covered under the Scheme.
NBFCs/HFCs can sell up to a maximum of 20% of their standard assets subject to a cap of Rs. 5,000 crore at fair value. Any
additional amount above 5,000 crore will be considered on pro rata basis. Individual asset size in pool is capped at Rs. 5 crore.
NBFCs/HFCs will pay a fee equivalent to 0.25% per annum of the fair value of assets being purchased by bank under this Scheme to
GoI.
61. Government reduced interest rate for General Provident Fund (GPF) and other related schemes for Q2 of FY 2019-20 (July - Sep).
GPF is provident fund account where only government employees are entitled to be a member, Unlike PPF (Public Provident Fund)
which is open to all.
GPF rules are applicable to those central government employees who are appointed on or before December 31, 2003.
62. Govt. Approved Merger of 3 PSU General Insurance Companies - National Insurance Company Limited, United India Assurance
Company Limited and Oriental India Insurance Company Limited. It would be done by amending General Insurance Business
(Nationalisation) Act 1972, to enable merger of non-life insurance companies.
63. Govt. approved additional central assistance of Rs. 4432.10 crore to three States from National Disaster Response Fund (NDRF) -
3338.22 crores to Odisha for Cyclone Fani, 1029 crore toKarnataka for drought and 64.49 crore to Himachal Pradesh for avalanches and
hailstorm.
64. Govt. reduced interest rates for small savings schemes by 10 basis points for July-September quarter of FY 2019-20. Updated Rates of
Interest -
PPF and National Savings Certificate (NSC) will yield 7.9% interest (earlier 8%). KVP will fetch 7.6% with maturity of 113 months (as
compared with earlier 7.7% with maturity of 112 months).
Girl child savings scheme Sukanya Samriddhi will fetch a lower return of 8.4% (earlier 8.5%). Term deposits of 1-3 years will fetch
interest rate of 6.9% (paid quarterly), while 5 year Deposit will get 7.7%.
65. Gujarat Finance Minister Nitin Patel presented State Budget 2019-20, sizing INR 204815 crores, largest ever for Gujarat.
State government allotted INR 4500 crore for providing Tap water to every household by 2022.
State plans to increase installed power generetaion capacity to 30,000 megawatts (Mw) by 2022, from 8885 MW at present.
Sardar Sarovar Narmada Yojana To bring water to canal network to field the state, has been allotted 6595 crores.
Vhali Dikri Yojana new scheme introduced to improve girl childbirth rate of state, to provide Financial assistance between 4000 - 1
Lakh to a girl child.
66. HDFC Bank and Common Services Centres launched a co-branded ‘Small Business Money Back Credit Card’ for small traders and village-
level entrepreneurs (VLEs). It will give users easy access to credit for their business expenses.
67. HDFC sold over 4.22% stake in housing finance subsidiary Gruh Finance Ltd (Gruh), which is proposed to be amalgamated with Bandhan
Bank for INR 899.43 crores.
68. Housing sector regulator National Housing Bank (NHB) opened a liquidity infusion facility of Rs.10000 crore for Housing Finance
Companies (HFCs) to improve liquidity in sector, to boost lending and accelerate growth of Stressed NBFC Sector.
69. ICICI Bank acquired 9.9 % stake in BSE subsidiary INX - located at GIFT City Gujarat - for nearly Rs 31 crores.
70. ICICI Bank launched a new digital platform called ‘InstaBIZ’, targeted at MSMEs and self-employed customers, enabling them to
undertake their business banking transactions digitally . It offers over 115 products and services online through mobile phone or internet
banking platform.
It is first digital platform allows instant payment of GST using challan number. MSMEs can instantly apply for a Point-of-Sale(Pos)
machine and marine insurance policy.
71. ICICI Bank tied up with NBFC IndoStar Capital for vehicle financing for small and medium fleet owners to buy new and old commercial
vehicles.
72. IDBI Bank and Health Insurer Max Bupa signed Bancassurance corporate agency agreement. Under this, Bank will Promote Insurer's
products to its 2 crore customers. IDBI bank also signed similar bancassurance agreement with Tata AIG General Insurance Company.
73. In its 3rd Bi-monthly Monetary Policy Committee meeting, RBI reduced policy repo rate by 35 basis points (bps).
Repo rate under liquidity adjustment facility (LAF) was reduced from 5.75% to 5.40%, lowest since April 2010.
Reverse repo rate revised to 5.15% (from 5.50%).
Marginal standing facility (MSF) rate and Bank Rate revised to 5.65% (From 6 %).
RBI has also reduced GDP growth Projection for 2019-20 from 7% to 6.9%.
Cash Reserve Ratio (CRR) is 4 % and Statutory Liquidity Ratio (SLR) is 18.75 % (will update on October 12, 2019).
RBI Monetary Police Committee is headed by RBI Governor Shaktikanta Das with members – Ravindra H. Dholakia, Michael
Debabrata Patra, Bibhu Prasad Kanungo, Chetan Ghate and Pami Dua.
 RBI also stated to make available National Electronic Funds Transfer system on a 24x7 basis from December 2019 as per the
Payment System Vision 2021 document.
74. India Signed a $147 Million Loan Agreement with World Bank for improving basic urban services in Jharkhand and improve
management capacity of urban local bodies (ULBs) in State.
75. India signed $250 Million Loan Agreement with World Bank for First Resilient Kerala Program, which seeks to enhance State’s resilience
against impacts of natural disasters and climate change.
76. India signed $31.58 million Loan Agreement with World Bank Uttarakhand Public Financial Management Strengthening Project, that
will help improve State’s ability to manage its Financial Systems and lead to Better Utilization of Development Resources.
77. India signed $350 million loan agreement with Asian Development Bank(ADB), to rehabilitate and upgrade two state highways and 23
major district roads totaling about 850 kilometers in Chhattisgarh. It will improve connectivity and access to basic services and livelihood
opportunities in state. Total cost of the project is $521.69 million. State government will provide $171.69 million.
78. India signed Loan Agreement of $400 Million with World Bank, to expand coverage and quality of interventions for control of
Tuberculosis (TB), to support India’s National Strategic Plan to end TB in India by 2025.
79. India signed Loan Agreement of $328 Million with World Bank, to help improve quality and responsiveness of public health services in
Andhra Pradesh. The Loan will support Government of Andhra Pradesh as it scales-up its efforts to bring better health care to all its
citizens.
80. India signed US$ 250 Million Loan Agreement with World Bank, for Rajasthan State Highways Development Program II Project to build
State's capacity to better manage its highways and improve traffic flows on selected highways in State of Rajasthan.
81. India will be the first recipient of local currency financing by Asian Infrastructure and Investment Bank (AIIB), aimed at providing more
options to borrowers. India is second-largest shareholder of AIIB with a 7.5% stake, and has received $2-billion funding for various
projects so far. China holds 20.06% and Russia holds 5.92%.
82. India's HDFC Bank terminated and de-listed its 22 outstanding global depository receipts (GDRs) from Luxembourg Stock Exchange, due
to low trading volume of GDRs.
83. Indian GDP Growth Forecasts (August 2019) -
Ratings agency CRISIL has cut its forecast for India's GDP growth by 20 basis points for FY 2019-20 to 6.9% from 7.1%.
As per National Council of Applied Economic Research (NCAER), India’s GDP growth will be 6.2% in FY 2019-20, down from 6.8%
in 2018-19. The decline in estimation was due to flat growth in the agriculture sector as it depends largely on the south-west
monsoon.
Australia and New Zealand Banking Group (ANZ) slashed India’s GDP growth forecast expected to grow by 6.2 % in FY 2019-20,
from 6.5% earlier, amid sluggish domestic demand, and slowing down of Industry figures. ANZ also downgraded forecast for FY
2020-21 to 6.5% from 7.1% earlier.
Moody’s Investors Service reduced India’s GDP growth forecast for 2019 calendar year to 6.2% from the previous estimation of 6.8%.
India’s economy will grow at a median rate of 6% during first quarter of FY 2019-20, as per a FICCI report. In same Quarter an year
earlier, economy grew at 8.2%.
India Ratings and Research has revised its projection of India’s GDP growth in the financial year 2019-20 to 6.7%, from 7.3% earlier.
84. Indian GDP Growth Forecasts (Jul 2019) -
International Monetary Fund lowered its annual growth forecast for India from 7.3% to 7% in financial year 2019-20.
Asian Development Bank lowered India's GDP growth rate from 7.2% to 7% for current fiscal (FY 2019-20).
Singaporea Based DBS Bank estimated Indian GDP to grow at 6.8% in FY 2020. Reasons for slow growth include poor monsoon and
rural income & consumption will be pressured by persistent negative terms of trade in the agricultural sector.
85. Indian GDP Growth Forecasts (June 2019) -
American banking firm Goldman Sach Predicted Indian GDP Growth rate to be 7.2 % in 2019-20.
World Bank retained its forecast of India's growth rate at 7.5% for current financial year (FY 2019 - 20), In its Global Economic
Prospects report.
South Asia regional GDP is expected to expand to 6.9 % in 2019 (0.2 percentage point down from previous projections owing to
downward revisions for Pakistan).
World Bank also slashed global forecast for 2019 to 2.6% as compared to 2.9% earlier. Report stated that Growth slowdown
was because of deceleration in investments due to trade tensions between US and China.
Fitch Global Economic Outlook lowered India's growth forecast from 6.8% to 6.6% for FY 2019-20. It retained Indian GDP growth
forecast for the next fiscal (2020-21) at 7.1% and 7.0% for 2021-22.
 Singapore based DBS Bank revised India’s Gross Domestic Product (GDP) forecast for FY 2019-20 to 6.8%, from 7% Eaelier.
Inflation rate was estimated at 3.8% for FY20 against 3.4% of FY19.
86. India’s trade deficit expanded to a six-month high of $15.4 billion in May 2019, with import growth outpacing export growth. Exports
grew 3.93% in May, while imports rose 4.31%.
87. Industrial Credit and Investment Corporation of India (ICICI) launched a dedicated center in Bengaluru to provide hazel free services to
small business owners and startups. It provides services including capital loans and legal and valuation desk to help customers in resolving
challenges related to collateral for various loans.
88. Inter-Ministerial Committee on legality of cryptocurrencies and blockchain submitted its report to Finance Ministry.
Committee recommends All private cryptocurrencies, except any cryptocurrency issued by Govt. to be banned in India.
It also drafted a law, ‘Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019’, which mandates fine upto 25
Crores and imprisonment of up to 10 years for offences.
Committee was set up under Chairmanship of Economic Affairs Secretary Subhash Chandra Garg in 2017.
89. Jammu and Kashmir Bank came under purview of Right to Information Act and Central Vigilance Commission (CVC) guidelines, to
ensure greater transparency and accountability.
90. Japanese Investment Firm SoftBank invested around $250 million in India's Ola Electric Mobility, Making it a unicorn (1 Billion USD
Valuation).
91. Karnataka Bank launched web tool named ‘Vasool So-Ft’ (Vasool So-Fast) for digitizing the Non-Performing Asset (NPA) recovery
process.
92. Karur Vysya Bank partnered with Centrum Wealth Management Ltd to form private limited Joint Venture (JV) to provide wealth
management services to its clients. KVB will hold 51% of share capital, Centrum will hold 45% and 4% will be held by JV’s Staff.
93. Life Insurance Corporation of India has offered INR 1.25 trillion Line of Credit by 2024, to fund highway projects (25000 crore in a year).
Borrowings will be in the form of bonds to be issued by National Highways Authority of India.
94. Madhya Pradesh government presented budget 2019-20 with expenditure INR 214085 crores, after Congress Party Government led by
Kamal Nath was sworn in -
INR 132 crores were allocated for welfare of bovines and hiked grant to state Waqf Board and Haj committee. 3 fold hike in
honorarium for priests working in registered temples is also proposed.
Budgetary allocation of Rs 8,000 crore made to waive remaining loans of farmers.
95. Madhya Pradesh Govt. announced to waive off loans taken from non-licensed money-lenders by tribals living in 89 scheduled villages in
Chhindwara, to make tribals debt-free. Government will also provide tribals with debit cards. Through this, they can withdraw up to Rs
10,000 from ATMs installed at weekly markets.
State Government also announced “Mukhyamantri Madad Yojna” for providing assistance to tribal families on childbirth and death
of a family member. Under this, tribal family will get 50 kg of rice/wheat, on birth of a child. In case of death, 100 kg of rice or
wheat and utensils for cooking food would be given.
96. Maharashtra Government presented interim budget for the financial year 2019-20 with a revenue deficit of INR 20,292.94 crores, higher
than 2018 deficit of INR 14,960.04 crores. -
Estimated revenue expenditure is INR 3,34,933 crores, against receipts of 3,14,640.12 crores.
Insurance cover will be provisioned for all people in state (5.5 crores), under Gopinath Munde Shetkari Apghat Vima Yojana which
will be expanded with outlay of Rs 210 crores.
Aid for Sanjay Gandhi Niradhar Yojana and Shravan Bal Yojana is raised from Rs 600 to Rs 1,000.
A widow with one child will get aid of Rs 1,100 per month and those with two kids will get Rs 1,200 per month.
Project Chullah-free and smoke-free Maharashtra will be launched by Government of Maharashtra, aimed at providing smoke-free
environment in kitchen for women.
97. Manila (Philipppines) based Asian Development Bank (ADB) approved $200 million loan for improving road infrastructure in 34
districts of Maharashtra to connect rural areas with markets and services. The total cost of the project is $296 million.
98. Manila (Philipppines) based Asian Development Bank (ADB) signed agreement to invest $23 million in non-convertible
debentures(NCD) being issued by GRIL (GR Infraprojects Limited), to support road sector investment plans of India. This will promote
GIRL’s ability for construction of roads and highways in India through purchase of new building equipment.
99. Mastercard, RBL Bank and Samsung India tied up for launch of Samsung Pay for RBL Bank credit card holders, enabling RBL Bank
Mastercard card holders to make contactless mobile payments using their Samsung Pay-enabled phones.
100. Merger of Induslnd Bank and Bharat Financial Inclusion Ltd (BFIL) will be effective from 4 July 2019, as per an order by National
Company Law Tribunal (NCLT).
 The Merger process began in october 2018, with IndusInd Bank deciding to acquire leading micro-finance player BFIL, earlier known
as SKS Microfinance.
After merger, current CEO of BFIL, M R Rao, will become CEO of IndusInd Financial Inclusion Ltd (IFIL).
101. Minister for Finance and Corporate Affairs Nirmala Sitharaman Presented Union Budget 2019-20 in Parliament. It is First full Budget of
newly elected NDA Government forming 17th Lok Sabha, led by PM Narendra Modi. Key Highlights can be seen here.
102. Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman tabled Economic Survey 2018-19 in Parliament. It is prepared
under guidance of Chief Economic Adviser (Krishnamurthy Subramanian). Key Highlights -
State of Economy in 2018-19 -
India still fastest growing major economy in 2018-19.
Growth of GDP moderated to 6.8 % in 2018-19 from 7.2 % in 2017-18.
Inflation contained at 3.4 % in 2018-19.
Non-Performing Assets as percentage of Gross Advances reduced to 10.1 % at end December 2018 from 11.5 % at end March
2018.
Growth in fixed investment picked up from 8.3 % in 2016-17 to 9.3 % next year and further to 10.0 % in 2018-19.
Current account deficit manageable at 2.1 % of GDP.
Fiscal deficit of Central Government declined from 3.5 % of GDP in 2017-18 to 3.4 % in 2018-19.
Provisional Debt to GDP ratio is 44.5 %.
Survey estimates GDP growth of 7% for FY 2019-20.
The revised fiscal glide path envisages achieving fiscal deficit of 3 % of GDP by FY 2020-21 and Central Government debt to 40
% of GDP by 2024-25.
Theme is about enabling a “shifting of gears" to sustained economic growth for objective of $5 trillion by 2024-25. GDP Growth has
to stay above 8 % to become a $5 trillion by 2025. Private investment is key driver for demand, capacity, labor productivity, new
technology, creative destruction and job creation.
Using insights from behavioral economics to create an aspirational agenda for social change -
From ‘Beti Baco Beti Padhao’ to ‘BADLAV’ (Beti Aapki Dhan Lakshmi Aur Vijay Lakshmi).
From ‘Swachh Bharat’ to ‘Sundar Bharat’.
From ‘Give it up” for the LPG subsidy to ‘Think about the Subsidy’.
From ‘Tax evasion’ to ‘Tax compliance’.
Unshackling MSMEs and enabling them to grow by -
Sunset clause of under 10 years, with necessary grand-fathering, for all size-based incentives.
Deregulating labor law restrictions to create significantly more jobs.
Re-calibrating Priority Sector Lending (PSL) guidelines for direct credit flow to young firms in high employment elastic sectors.
Ending Matsyanyaya - Ramping up Capacity in Lower Judiciary -
Delays in contract enforcement and disposal resolution are biggest hurdle to ease of doing business and higher GDP growth.
Around 87.5 % of pending cases are in the District and Subordinate courts.
100 % clearance rate can be achieved by filling out 2279 vacancies in lower courts and 93 in High Courts.
Survey proposes reduction in economic policy uncertainty by -
Consistency of actual policy with forward guidance.
Quality assurance certification of processes in Government departments.
India's Demography at 2040 -
Sharp slowdown in population growth expected in next 2 decades.
Working age population to grow by 9.7mn per year during 2021-31 and 4.2mn per year during 2031-41.
Significant decline to be witnessed in elementary school-going children (5-14 age group) over next two decades.
Analysis of the Swachh Bharat Mission
Traceable health benefits brought about by Swachh Bharat Mission (SBM).
93.1% of the households have access to toilets.
Enabling Inclusive Growth through Affordable, Reliable and Sustainable Energy -
2.5 times increase in per capita energy consumption needed for India to increase its real per capita GDP by $5000 at 2010
prices, and enter upper-middle income group.
4 times increase in per capita energy consumption needed for India to achieve 0.8 Human Development Index score.
India is 4th in wind power, 5th in solar power and 5th in renewable power installed capacity.
Share of renewable (excluding hydro above 25 MW) in total electricity generation increased from 6% in 2014-15 to 10% in
2018-19. Thermal power still dominant with 60% share.
Market share of electric cars only 0.06% in India while it is 2% in China and 39% in Norway.
Survey proposes a well-designed minimum wage system for Inclusive Growth -
Present minimum wage system in India has 1,915 minimum wages for various scheduled job categories across states.
 ‘National Floor Minimum Wage’ should be notified by the Central Government, varying across five geographical regions.
Minimum wages by states should be fixed at levels not lower than ‘floor wage’.
‘National level dashboard’ under Ministry of Labour & Employment for regular notifications on minimum wages, proposed by
Survey.
Money Management and Financial Intermediation -
Insolvency and Bankruptcy Code led to recovery of significant amount of distressed assets and improved business culture.
Till March 31, 2019, CIRP yielded resolution of 94 cases involving claims worth INR 1,73359 crores.
As on 28 Feb 2019, 6079 cases involving INR 2.84 lakh crores have been withdrawn.
INR 50000 crore received by banks from previously non-performing accounts. Additional INR 50,000 crore "upgraded"
from non-standard to standard assets.
Financial flows remained constrained because of decline in equity finance raised from capital markets and stress in NBFC
sector -
Capital mobilized through public equity issuance declined by 81 % in 2018-19.
Credit growth rate y-o-y of NBFCs declined from 30 % in March 2018 to 9 % in March 2019.
Prices and Inflation -
Headline inflation based on CPI-C continued declining for 5 year, remaining under 4 % in last 2 years.
Food inflation based on Consumer Food Price Index declined for 5th year and remained below 2.0 % for last 2 years.
Sustainable Development and Climate Change -
India’s SDG Index Score ranges between 42 and 69 for States and between 57 and 68 for UTs:
Kerala and Himachal Pradesh are at top with score of 69 amongst states.
Chandigarh and Puducherry are at top in , Ts with a score of 68 and 65 respectively.
A comprehensive NCAP (National Clean Air Programme) launched in 2019 for - Prevention, control and abatement of air
pollution.
External Sector -
As per WTO, World trade growth slowed down to 3 % in 2018 from 4.6 % in 2017.
India’s External Debt was US$ 521.1 billion at end-December 2018, 1.6 % lower than its level at end-March 2018.
Total liabilities-to-GDP ratio, inclusive of both debt and non-debt components, declined from 43 % in 2015 to 38 % at end of
2018.
Exchange rate in 2018-19 has been more volatile than in previous year, mainly due to volatility in crude prices, but not much
due to net portfolio flows.
India’s exports and import basket in 2018-19 -
Exports (including re-exports) INR 2307663 Crores
Imports: INR 3594373 Crores
Top export items were Petroleum products, precious stones, drug formulations, gold and other precious metals.
Top import items are Crude petroleum, pearl, precious, semi-precious stones and gold.
India’s main trading partners continue to be the US, China, Hong Kong, the UAE and Saudi Arabia.
India signed 28 bilateral / multilateral trade agreements with various country/group of countries.
Agriculture and Food Management
Gross Value Added (GVA) in agriculture improved from a negative 0.2 % in 2014-15 to 6.3 % in 2016-17 but decelerated to 2.9
% in 2018-19.
Women’s participation in agriculture increased to 13.9 % in 2015-16 from 11.7 % in 2005-06 and their concentration is highest
(28 %) among small and marginal farmers.
89% of groundwater extracted is used for irrigation. Hence, focus should shift from land productivity to ‘irrigation water
productivity’.
Policies should focus on -
Dairying as India is the largest producer of milk.
Livestock rearing particularly of small ruminants.
Fisheries sector, as India is the second largest producer.
Industry and Infrastructure -
Overall Index of Eight Core Industries registered a growth rate of 4.3 % in 2018-19.
India’s ranking improved by 23 to 77th position in 2018 among 190 countries assessed by World Bank Doing Business (DB)
Report 2019.
Road construction grew @ 30 km per day in 2018-19 compared to 12 km per day in 2014-15.
Rail freight and passenger traffic grew by 5.33 % and 0.64 % respectively in 2018-19 as compared to 2017-18.
The installed capacity of electricity has increased to 3, 56,100 MW in 2019 from 3, 44,002 MW in 2018.
Services Sector
Services sector (excluding construction) has share of 54.3 % in India’s GVA and contributed over half of GVA growth in 2018-
19.
IT-BPM industry grew by 8.4 % in 2017-18 to US$ 167 billion and will become US$ 181 billion in 2018-19.
 The services sector growth declined marginally to 7.5 % in 2018-19 from 8.1 % in 2017-18.
Accelerated sub-sectors: Financial services, real estate and professional services.
Decelerated sub-sectors: Hotels, transport, communication and broadcasting services.
Services share in employment is 34 % in 2017.
10.6 million foreign tourists received in 2018-19 compared to 10.4 million in 2017-18. Forex earnings from tourism stood at
US$ 27.7 billion in 2018-19.
Social Infrastructure, Employment and Human Development -
Government expenditure (Centre plus States) as a percentage of GDP on -
Health - increased to 1.5 % in 2018-19 from 1.2 % in 2014-15. Government aims to raise health services expenditure to
2.5% of country’s GDP by 2025.
Education - increased from 2.8 % to 3 % during this period.
Net employment generation in formal sector was higher at 8.15 lakh in March 2019 as against 4.87 lakh in February 2018, as
per EPFO.
About 1.54 crore houses completed under Pradhan Mantri Awas Yojana (PMAY) as against a target of 1 crore pucca houses with
basic amenities by 31st March, 2019.
103. Ministry of Commerce and Industry's Government e Marketplace (GeM) signed MoU with Small Industries Development Bank of India
(SIDBI) to benefit MSMEs, women entrepreneurs, Self Help Groups (SHGs), and various beneficiaries under MUDRA and Stand-up India
scheme. It will enable promotion of special initiatives of GeM like Womaniya and Start-up Runway with SIDBI stakeholders.
104. Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs) published draft e-Commerce Guidelines
for consumer protection 2019, applicable on all business-to-consumer (B2C) e-commerce platforms.
It aims to make e-commerce platforms and their sellers more transparent and accountable to consumers.
It also seeks to curb sale of counterfeit products online and unfair trade practices by a series of consumer safeguards that forbid e-
commerce companies from influencing pricing, adopting unfair promotion methods or misrepresenting quality of goods / services.
It mandates e-commerce firms to self-declare compliance and also provide way for customers to contact them directly.
It proposes to make mandatory for e-commerce entities to accept returns in event products delivered are defective, wrong or spurious
or if they do not have characteristics or features advertised.
It makes mandatory for e-commerce platforms to declare all details about their sellers including address, website and email address.
105. Ministry of Corporate Affairs amended Companies (Share Capital & Debentures) Rules by removing Debenture Redemption Reserve
requirement for Listed Companies, NCFCs and HFCs. Provisions relating to creation of Debenture Redemption Reserve (DRR) have been
revised for -
Removing requirement for creation of a DRR of 25% of value of outstanding debentures in respect of listed companies, NBFCs
registered with RBI and for HFCs registered with National Housing Bank (NHB) both for public issue as well as private placements.
Reduction in DRR for unlisted companies from present 25% to 10% of outstanding debentures.
Till now, Listed Companies had to create a DRR for both Public Issue as well as Private Placement of Debentures, while NBFCs &
HFCs had to create DRR only when they opted for Public Issue of Debentures. It is aimed at creating a level-playing field between
NBFCs, HFCs and listed companies’ on one hand and also between them and Banking Companies & All India Financial Institutions
on other, which are already exempted from DRR.
106. Ministry of Corporate Affairs amended provisions relating to issue of shares with Differential Voting Rights (DVRs) under Companies Act
2013, to help startups by enabling promoters of Indian companies to retain control of their companies, even they raise equity capital from
global investors.
Raising equity capital from global investors with DVR shares now making up to 74% of total voting rights instead of existing 26%.
Requirement of distributable profits for 3 years period has removed for a company to be eligible to issue shares with DVR.
107. Ministry of Micro, Small and Medium Enterprises (MSMEs) will launch Bharatcraft portal e-commerce marketing platform, on lines of
e-commerce behemoths such as Alibaba and Amazon. It will provide platform for MSMEs to market and sell their products and boost the
sector.
MSME sector contributes nearly 29% to manufacturing segment and 40% to exports. Government aims to increase contribution of
MSMEs in manufacturing sector to 50% in 5 years.
108. Monetary limits for filing of appeals by Income Tax Department further enhanced by CBDT, To effectively reduce taxpayer grievances and
help Department focus on litigation involving complex legal issues and high tax effect.

Appellate Forum Existing Monetary Limit(Rs.) Revised Monetary Limit(Rs.)

Before Income Tax Appellate Tribunal 20,00,000 50,00,000

Before High Court 50,00,000 1,00,00,000

 Before Supreme Court 1,00,00,000 2,00,00,000
109. NBFC L&T Finanace Services Ltd launched “Digital Sakhi” educational program aimed at financial inclusion of rural women in
Villupuram District, Tamilnadu.
L&T Finance also launched ‘Sabse Khaas Loan’ for two-wheeler customers. , which provides burden-free and low-cost finance for
two-wheelers eliminates and need for hypothecation of vehicle to financier over tenure of loan.
110. NBFC Sundaram Finance Ltd (SFL) will acquire stakes held by BNP Paribas in their two joint venture companies for aprox INR 1000
Crores.
SFL will acquire 49.9 % stake of BNP Paribas in Sundaram BNP Paribas Home Finance limited (SBPHFL) for about Rs.999.66
crores.
SFL will also acquire 49% stake of BNP Paribas Securities Services in Sundaram BNP Paribas Fund Services (SBFS) for about 1.50
crores.
With the acquisitions, both joint ventures would become a wholly owned subsidiary of Sundaram Finance.
111. National Health Authority (NHA) and ICICI Foundation signed MoU to train 15,000 state and district personnel and Pradhan Mantri
Arogya Mitras to provide delivery of health services under Ayushman Bharat Scheme over 1 year.
112. National Payments Corporation of India (NPCI) and JCB International launched RuPay JCB Global Cards which can be used at all POS
terminals which accept RuPay cards and terminals outside India which accept JCB.
113. National Payments Corporation of India (NPCI) stated that Aadhaar enabled Payment System (AePS) stood at 220.18 million with
transaction value 9685 crores during July 2019. This will help improve the reaching out of financial inclusion in India. AePS allows a bank
customer to use Aadhaar as an identity to access respective Aadhaar enabled bank account and perform basic banking transactions.
114. National Small Industries Corporation signed MoU with Common Service Centres (CSC) e-Governance Services India for enhancing
new offerins for MSME sector by synergizing each others' competence. MoU will also enable CSCs to utilize plethora of NSIC offerings
through the NSIC portal (www.msmemart.com).
115. Newly Elected YSR Congress Government of Andhra Pradesh presented its maiden Budget, with outlay of INR 227975 crores -
Emphasis is on “Nava ratnalu”,9 promises made by YSR Congress Party in its election manifesto.
Setting up of agriculture price stabilisation fund with INR 3,000 crore, natural calamity fund with 2000 crores, 8750 crore for YSR
Rythu Bharosa (12,500 financial assistance for each farmer per annum), 100 crore for interest-free loans to farmers under YSR
Sunna Vaddi scheme, 1,163 crore for YSR crop insurance scheme and 250 crore for the proposed Kadapa steel plant.
For Amma Vodi scheme (giving grant of 15,000 per annum to each mother who sends her child to the school up to Intermediate
level), 6,455 crores are set.
For YSR Arogyasri medical insurance scheme, INR 1,740 crore was allocated in Budget.
116. No charges on RTGS / NEFT money transfers became effective from July 01, 2019. It was mentioned in Second Bi-monthly Monetary
Policy Statement for 2019-20.
Real-time gross settlement (RTGS) system is meant for large-value instantaneous fund transfers, while national electronic funds
transfer (NEFT) is used for fund transfers of up to Rs 2 lakh.
Recently, Committee led by Infosys Founder Nandan Nilekani also suggested making NEFT/RTGS free, for promoting digital
payments.
117. OYO Hotels & Homes acquired co-working venture Innov8., valued at aprox 200 crores.
118. Odisha government unveiled ‘Odisha Small Savings Incentive Scheme‘ for the calendar year 2019 under the notation “AQ” series. It aims
to stop people from transacting with ‘suspicious’ non-banking private financial institutions.
Any eligible person who deposits minimum amount INR 2000 in any Small Savings Schemes during 2019 can obtain a free web-
based coupon from designted offices.
A state-level lucky draw of the scheme will be held on April 26, 2020, in which the people can win cash award as an incentive for their
habit of thrift. First prize will be Rs 5 lakh.
119. Oil and Natural Gas Corporation (ONGC) overtook India Oil Corporation (IOC) as India’s most profitable Public Sector Undertakings
(PSU).
ONGC's net profit increased by 34% to INR 26716 crores as compared to it IOC's net profit of INR 17274 crores for FY 2018-19.
ONGC had lost the most Profitable PSU Title to IOC in previous two financial years (2016-17 and 2017-18).
120. PNB Housing Finance raised fresh equity of Rs 522 crore ($75 million) as External Commercial Borrowing (ECB) from Sumitomo Mitsui
Banking Corporation (SMBC) of Singapore.
121. PSU Bank Andhra Bank launched its AI (Artificial Intelligence) interactive assistant called ABHi, powered by AI startup Floatbot.ai.
122. Parliament adopted a statutory resolution for levying 200% duty on all goods exported from or originating in Pakistan. India had levied
basic custom duty to 200% on all goods exported from Pakistan with effect from 16 February 2019, after Pulwama Terror Attacks.
Besides, statutory resolution related to increasing basic custom duty on lentils, boric acid and diagnostic and laboratory reagents. On
lentils, duty increased from 40 to 50 %, on boric acid it is increased from 17.5 to 27.5 % and on diagnostic items from 20 to 30 %.
123. Payments startup EnKash launched India’s first corporate credit card called ‘Freedom Card’ for small and medium enterprises (SMEs)
and startups. Freedom card enables availing credit facility for immediate needs and to manage liquidity of startups.
124. Paytm Payments Bank had second most value of digital transactions in FY 2019-20, with 501.16 crores worth of Transactions. It is behind
only afer SBI in this regard. Paytm payments bank has share of 19% and 32% respectively in terms of mobile banking and UPI transactions.
Paytm PB has over 500 crore deposits in savings accounts, largest among payments bank in India.
125. Postal department will convert India Post Payments Bank into a small finance bank, enabling it to provide micro credit at the doorsteps to
individuals and SME's. Payments Banks are commercially unviable due to too many regulatory restrictions on operating procedures.
126. Private Bank YES Bank acquired a 9.47 % stake in dry cell battery maker, Eveready Industries India by invoking shares pledged by
McLeod Russel. This came after Indian tea company, McLeod Russel defaulted on repayment of credit extended by Yes bank, amounting
1800 - 2000 crores.
127. Private sector general insurance company HDFC ERGO General Insurance Company signed corporate agency partnership with Kerala
based Muthoottu Mini Financiers Limited, a non-deposit taking systemically important NBFC to provide general insurance for customers
of the NBFC.
128. Punjab & Sind Bank has set up a centralised hub Cen-MARG (Centralised MSME & Retail Group), envisioned to ensure qualitative
improvement in credit appraisal, improved turnaround time, uniform documentation, and efficient monitoring.
129. RBI Approved Scheduled bank status for Bengaluru Based Jana Small Finance Bank, which now has over 260 branches.
130. RBI Launched Complaint Management System (CMS), to be used for lodging complaints against banks and NBFCs with a view to
improve customer experience in timely redressal of grievances.
131. RBI Mandated that all Payment System Operators (PSOs) shall store entire payment data in systems located only in India, after PSOs
sought clarification on issue of data localization.
In April 2018, RBI issued a directive on ‘Storage of Payment System Data‘ by which it had advised all system providers to ensure that
within a 6 months period, entire data relating to payment systems operated by them is stored in a system only in India.
132. RBI Observed Financial Literacy Week Between June 3 - 7, 2019, with Theme Farmers, on how they can benefit by being a part of formal
banking system. RBI designed Audio visuals on “Basic Financial Literacy“, “Unified Payments Interface” (UPI) and “Going Digital” for
benefit of general public on topics relating to Financial Literacy.
133. RBI Second Bi-monthly Monetary Policy Review 2019-20 -
6 member RBI Monetary Policy Committee (MPC) is led by RBI Governor Shaktikanta Das.
RBI cuts Repo Rate by 25 bps, also changing other monetary policy metrices.
RBI revises GDP growth for year 2020 downwards to 7 % from 7.2 % projected earlier.
Minimum Liquidity Ratio for Domestic Systemically Important Banks (DSIBs) to be 4 %. For other banks, Minimum Liquidity Ratio
shall be 3.5 %.
Current Monetary Policy Rates -
Repo Rate - 5.75 %
Reverse Repo - 5.50 %
Bank Rate - 6 %
CRR (Cash Reserve Ratio) - 4 %
SLR (Statutory Liquidity ratio) - 19 % (RBI decided to reduce SLR from to 18.0% in six quarterly instalments beginning
January 2019)
Marginal Standing Facility (MSF) Rate - 6 %
134. RBI accepted recommendation of Expert Committee to Review Extant Economic Capital Framework of RBI, headed by former RBI
Governor Bimal Jalan, for transferring INR 176051 crores to government.
It comprises of Rs 123414 crore of surplus for 2018-19 and 52637 crore of excess provisions as per revised Economic Capital
Framework (ECF). Since 2013, RBI has been paying 99% of its disposable income to government. Other recommendations of
committee Include -
Committee recommended to maintain RBI’s Contingency Risk Buffer (CRB), as India’s fund to handle a financial stability. It
was recommended to be maintained between 5.5% to 6.5% of RBI’s balance sheet, which is above available level of 2.4% as on
June 2018.
 Panel recommended that revised economic capital framework, under which RBI decided to transfer Rs 52,637 crore excess
provisions to government, be reviewed every 5 years.
RBI accounting year (July-June) may be brought in sync with fiscal year (April to March) from FY year 2020-21, to reduce need
for interim dividend being paid by the RBI.
It has recommended a surplus distribution policy which targets not only the total economic capital (as per extant framework)
but also realised equity level of RBI’s capital. It will help bring about greater stability of surplus transfer to Government.
There will be no transfer of unrealised valuation buffers. These will be used as risk buffers against market risks. Interim
dividend to the government may be paid only under exceptional circumstances.
It recommended adopting Expected Shortfall (ES) methodology in place of extant Stressed-Value at Risk for measuring market
risk on which there was growing consensus among central banks as well as commercial banks over the recent years.
Central banks are seen to be adopting ES at 99% confidence level (CL). Committee recommended adoption of a target of
ES 99.5% CL and a range defined between target and downward risk tolerance of 97.5% (both under stress conditions).
135. RBI advised all Scheduled Commercial Banks to adopt Education Loan Scheme, formulated by Indian Banks Association. It provisions
Loan upto Rs 10 lakh for study in India, upto 20 lakh for study abroad and Collateral free loans upto 7.5 Lakh under Credit Guarantee Fund
Scheme for Education Loans (CGFSEL). Repayment period of 15 years.
136. RBI allowed Bank of China to offer regular banking services in India, Including Bank of China Limited in 2nd Schedule of RBI Act 1934.
137. RBI amended norms on banks’ exposure to large borrowers, to reduce concentration of risk and align them with global norms. It will help
in lending to Non-Banking Financial Companies (NBFC) in an effective way and invite scrutiny on structure of these entities.
As per revised ‘Large Exposures Framework’ (LEF) norms, sum of all exposure values of a bank to a single counter-party should not
be greater than 20% of bank’s available eligible capital base at all times.
With regards to connected counter-parties, sum of all exposure values of a bank to a group of connected counter-parties should not
be greater than 25% of bank’s available eligible capital base at all times.
On exposures to NBFCs, banks’ exposures to a single NBFC are restricted to 15% of their eligible capital base.
138. RBI announced to set up a foreign exchange trading platform for retail participants, to create a infrastructure that ensures fair pricing for
users of foreign exchange like Small and Medium Enterprises (SME) exporters & importers and individuals. It will be available to users
from early August 2019. Draft Guidelines were issued in Oct 2017.
Foreign exchange trading platform will enable customer to choose most competitive rate among all banks and buy forex.
Minimum order size would be USD 1000 and thereafter in multiples of USD 500. Maximum order size shall be USD 500,000.
139. RBI asked banks not to count failed transactions at ATMs due to technical reasons, as part of “free ATM transactions”, which are
permitted every month. RBI said that Using ATMs for non-cash withdrawal transactions also should be not part of the free transactions
facility.
140. RBI asked banks to ensure their ATMs are grouted to a structure preferably wall, pillar, or floor by End of September 2019, to enhance
security.
This is one of recommendations made by panel formed In October 2016, under D K Mohanty. The Committee on Currency
Movement (CCM) was tasked to review entire gamut of security of treasure in transit.
141. RBI barred both deposit-taking and non- deposit taking NBFCs (Non-Banking Finance Companies) from charging pre-payment
/foreclosure charges on any floating rate term loans sanctioned for purposes other than business to individual loan borrowers.
Earlier, RBI barred commercial banks from charging such penalties from individual borrowers with mortgage loans in May 2014.
142. RBI board finalised Three Year Roadmap to improve supervision and regulation, named Utkarsh 2022. Its a road map for medium term
objective to be achieved for improving regulation, supervision of RBI.
143. RBI extended timings of Real-Time Gross Settlement (RTGS) transactions by an hour from 7 AM instead of 8 AM with effect from August
26, 2019. RTGS was earlier available for customer transactions from 8 AM to 6 PM and for inter-bank transactions from 8 AM to 7.45 PM.
RBI had decided to allow National Electronic Funds Transfer (NEFT) services to be active 24×7 from December 2019 from the
current timings of 8.00 am to 7.00 pm on all working days.
144. RBI has Put Rs 1 crore Penalty on HDFC Bank, pertaining to submission of forged bill of entries (BoEs) by certain importers to HDFC
Bank for remittance of foreign currency.
145. RBI has put penalty of INR 1.5 crores on Bank of India for of ‘non-compliance with RBI direction on frauds’ in Rotomac Group
companies.
RBI has also imposed penalty of INR 50 lakh on Punjab National Bank (PNB) for delay in reporting of fraud observed in account of
Kingfisher Airlines Limited.
146. RBI has put penalty of INR 2 crores on Kotak Mahindra Bank for its failure to adhere to RBI’s diktat on promoter shareholding. RBI has
been in a dispute with Kotak Mahindra since 2014 over its failure to meet milestone for stake reduction by Its founder Uday Kotak.
Under RBI shareholding norms, Uday Kotak was required to cut his holding to 20 % from 30 % in Kotak Mahindra Bank, by
December 31, 2018 and to 15 % by March 2020.
147. RBI has put penalty of INR 7 crores on State Bank of India (SBI), for non-compliance on Income Recognition and Asset Classification
norms, code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large
Credits, and fraud risk management and classification and reporting of frauds.
RBI also imposed Rs 10 lakh fine on Union Bank of India for non compliance with directions on cyber security framework in banks.
148. RBI has set an average base rate of 9.18% for Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs), to be
charged from customers for quarter July - Sep 2019. RBI sets average base rate on basis of an average of base rate of the 5 largest
commercial banks.
149. RBI imposed collective penalty of Rs 11 crore on 7 public sector banks, for non-compliance with certain RBI directions related to 'Code of
Conduct for Opening and Operating Current Accounts.
Allahabad Bank and Bank of Maharashtra have been imposed with a penalty of Rs 2 crore each.
Bank of Baroda, Bank of India, Indian Overseas Bank and United Bank of India have been imposed with a penalty of Rs 1.5 crore
each.
Oriental Bank of Commerce has been imposed with a penalty of Rs 1 crore.
RBI has also imposed a fine of Rs 1 crore on Corporation Bank for non-compliance of norms related to cyber security framework for
banks, frauds classification and reporting.
150. RBI imposed penalties on four PSU Banks for violating Know Your Customer norms and anti-money laundering standards. Punjab
National Bank, Allahabad Bank, and UCO Bank were fined Rs 50 lakh each while Corporation Bank was fined Rs 25 lakh.
151. RBI imposed penalty Rs 11.25 lakh on two prepaid payment instrument (PPI) issuers Yes Bank and ZipCash, for non-compliance with
regulatory norms.
152. RBI issued a regulatory framework for setting up of financial benchmark administrator (FBA) for administering ‘significant benchmarks’
in markets for financial instruments. Significant benchmarks are notified by central bank taking into consideration its use, efficiency, and
relevance in domestic financial markets. Without obtaining RBI's authorization, FBA will not administer a ‘significant benchmark’.
FBAs will be incorporated in India as a company that will maintain a minimum net worth of Rs 1 crore.
153. RBI issued final draft enabling framework for regulatory sandbox (RS) for fintech startups, enabling them to set up their own regulatory
sandbox for live testing of innovative products in the areas of retail payments, digital KYC(Know your customer) and wealth management.
It will be for firms that have minimum net worth of INR 25 lakh.
RS refers to live testing of new products/services in a secure &controlled regulatory environment, where the regulators can allow
certain regulatory relaxations for the limited purpose of the testing.
It also permits carrying out field tests so that benefits and risks of emerging financial innovations can be evaluated.
Concept of Regulatory Sandbox was proposed by a committee headed by Sudarshan Sen, former executive director of RBI.
154. RBI issued guidelines on Interest Subvention Scheme (ISS) for Kisan Credit Card (KCC) to Fisheries and Animal Husbandry farmers
during 2018-19 and 2019-20.
Apart from existing KCC holders for crop loans, farmers involved in activities related to Animal Husbandry and Fisheries, through a
separate KCC will get at concessional interest rate of 7% during 2018-19 and 2019-20 for short loan up to 2 lakh.
Interest subvention is available for animal husbandry and fisheries farmers at the rate of 2% per annum at time of disbursal of loan.
Additional interest subvention of 3% per annum will be given for timely repayment.
Interest subvention & prompt repayment incentive benefits will be available only on an overall limit of 3 lakh per annum on availing
short term loan.
155. RBI issued new NPA guidelines Prudential framework for resolution of stressed assets to deal with bad loans, as per provisions
of Section 35AA of the Banking Regulation Act 1949. Previous circular that was issued by RBI in Feb 2019, was rejected by Supreme Court.
RBI mandated lenders to review accounts within 30 days of default and initiate a resolution plan before default. Its Mandatory to
sign inter-creditor agreement (ICA) by all lenders, which will provide for a majority decision making criteria.
Earlier norm of 100 % approval from creditors is also changed. ICA shall now provide any decision agreed by lenders representing 75
% by value of outstanding credit facilities and 60 % of lenders by number shall be binding upon all lenders.
Lenders must resolve over INR 2000 crores NPA account within 180 days.
Lenders will have to make 35 % provisions–first 20 % for 180 days and additional 15 % if no resolution is found within 365 days.
 For borrowers with exposure between INR 1500 - 2000 crores, new norms will be applicable from January 1, 2020. Terms for loans
up to 1500 crores will be announced shortly.
156. RBI permitted Asset Reconstruction Companies (ARCs) to acquire financial assets from peers (other ARCs), in view of amendment to
Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act 2002. . However, RBI
mandated that all such transactions have to be settled in cash. This will help improve liquidity in Asset Reconstruction Companies’ market.
157. RBI permitted processing of e-mandate on credit and debit cards for recurring transactions (merchant payments), with maximum limit of
INR 2000. While processing first transaction in e-mandate-based recurring transaction series, additional factor authentication (AFA)
validation should be performed.
It is applicable for transactions performed using all types of cards - debit, credit and Prepaid Payment Instruments (PPIs), including
wallets.
158. RBI relaxed regulations for Basic Savings Bank Deposit (BSBD) Accounts (also called no-frills accounts)
Now, BSBD account holders will get a cheque book and certain minimum facilities, free of charge by the bank. Previously, additional
facilities for these accounts attracted requirement of maintaining a minimum balance and other charges.
159. RBI stated that India’s Current Account Deficit (CAD) increased to $57.2 billion or 2.1% of Gross Domestic Product (GDP) in FY19,
against 1.8% of 2018 (which was $48.7 billion). It was highest in 6 years due to higher trade deficit caused by high crude oil imports.
Increase in trade deficit to $180.3 billion for 2019 (against $160 billion in 2018), led to widening of CAD in FY19.
160. RBI tightened fit-and-proper criteria for directors on boards of state-run Public Sector Banks (PSBs), to determine ‘fit and proper’ status
of person to be eligible to be elected as a director on PSBs. It has for the first time, laid down exhaustive list for the disqualification of
directors.
PSBs are required to constitute Nomination and Remuneration Committee (NRC) consisting of minimum of three non-executive
directors from amongst board of directors. Centre’s nominee director shall not be part of the NRC. Elected director shall hold office
for 3 years.
Several other conditions have been laid out by RBI.
161. RBI will set up a "Central Payment Fraud Registry", to track frauds in payment systems. Under this registry, payment system participants
will be provided access to it for near-real time fraud monitoring. The aggregated fraud data will be published to educate customers on
emerging risks. Currently, banks report all banking frauds to the Central Fraud Monitoring Cell of RBI.
162. RBL Bank and digital healthcare platform Practo partnered to launch an industry first co-branded health credit card, powered by
Mastercard.
163. Rajasthan Govt. Presented budget for 2019-20 -
Opening of Janata Clinics near the residential areas across the state and provide free medicines to the patients. CT (Computed
Tomography) scan has been made free in all state-run medical centers.
Free pilgrimage to Pashupati Nath temple in Nepal.
Separate feeder at a cost of 5200 crore will be established to provide uninterrupted electricity supply to farmers.
Scheme for promotion of small industries- ‘Rajasthan M-sand policy-2019’ for promotion of use of manufactured sand.
Increase in honorarium of Anganwadi workers from 6000 to 7500, from 4500 to 5750 for mini Anganwadi workers and from 3500 to
4250 for Anganwadi sahayika.
164. Registration for PM Kisan Maan Dhan Yojana began, as newly launched old age pension Scheme aimed at improving livelighoods of small
and marginal farmers.
Scheme is for farmers aged 18 to 40 years and a monthly pension of Rs. 3000 will be provided to them on attaining the age of 60
years.
The farmers will have to make a monthly contribution of Rs.55 to Rs.200, depending on their age of entry. Government will also
make an equal contribution of the same amount in the pension fund.
Life Insurance Corporation of India (LIC) shall be the Pension Fund Manager and responsible for Pension pay out.
165. Relaxing bank lending norms to Non-Banking Financial Companies (NBFCs), RBI allowed banks on lending through NBFCs (other than
MFIs- Microfinance Institutions) to Agriculture, MSMEs (Micro, Small and Medium Enterprises) and affordable housing to be treated as
priority sector lending for banks.
Banks have been allowed on-lending to agriculture (investment credit) up to Rs.10 lakh, MSMEs up to Rs. 20 lakh and housing up to
Rs.20 lakh per borrower (increased from Rs.10 lakh) to be classified as priority sector lending.
RBI also eased bank’s exposure limits to help NBFC sector under stress. It has raised bank’s exposure limit to a single NBFC to 20%
of Tier-I capital of bank against 15% earlier.
166. Reliance Jio became largest telecom company of India with 331.3 million subscribers overtaking Vodafone Idea whose customer base
stood at 320 million in quarter ended June 30, 2019. Airtel moved to the third position and Bharat Sanchar Nigam Limited (BSNL) 4th.
167. Reliance Jio topped telecom market with a 31.7 percent market share in the second quarter of 2019. Bharti Airtel has regained its second
spot, leaving behind Vodafone Idea.
168. Reserve Bank of India (RBI) released its Annual Report for FY 2018-19. Key Highlights (Stats as on June 30, 2019) -
RBI stated that growth deceleration is cyclical downswing and not a structural slowdown.
Balance sheet size of RBI increased by 13.42 % to Rs 41.03 lakh crore from 36.17 lakh crores an year ago.
RBI contingency fund, which is useful in fighting any exigency is reduced to Rs 1.96 lakh crores, after 52,000 crore excess payout to
government.
Income for 2018-19 increased by 146.59 % to Rs 1.93 lakh crore in 2018-2019. Expenditure decreased to Rs 17,045 crore, from 28,277
crore in 2017-18. Interest income grew by 44.62 % to Rs 1.06 lakh crore and other income rose to Rs 86199 crores.
RBI’s holding of government securities grew by 57.19 per cent, from Rs 6.29 lakh crore to Rs 9.89 lakh crores.
Year ended with an overall surplus of Rs 175987 crores as against 50000 crores in previous year.
RBI held 618.16 metric tonnes of gold as compared to 566.23 metric tonnes as on June 30, 2018.
After IL& FS crisis, credit flow from NBFCs to commercial sector dips 20%.
Value of bank fraud cases increased 74%, from 41,167 crore in FY18 to 71,543 crores in FY19.
Number of bank fraud cases rose from 5,900 in FY18 to 6,800 in FY19.
Gross non-performing assets (GNPA) ratio of banking system declined to 9.1 per cent in March 2019, from 11.2 per cent in previous
year.
Currency in circulation soars 17 % to Rs 21.10 trillion.
169. Revised Income Tax guidelines came into effect, aimed at making strict decision against tax invaders.
Under revised guidelines, those indulging in serious offences under black money and benami laws will not be able to get away just by
paying a penalty. Earlier, taxpayers were able to settle cases of tax evasion earlier by just paying the tax demand, penalty and interest.
Offences under serious criminal cases of money laundering, terror financing, corruption, possession of benami propertiesand
undisclosed foreign assets will be generally non-compoundable (will not be written-off). CBDT has listed 13 cases where the offences
are not to be generally compounded.
Finance Minister will be sole authority to relax the guidelines in a deserving case.
Offences under Sections 275A, 275B and 276 of Act will not be compounded. New guidelines supersede those issued in 2014.
170. SBI Life Insurance and Indian Bank have signed a bancassurance pact to offer holistic financial planning solutions to Bank’s customers.
Indian Bank also signed similar corporate agency agreement with Cholamandalam MS General Insurance Company Ltd.
Axis Bank signed similar bancassurance agreement with health insurer Aditya Birla Health Insurance Co Ltd (ABHICL).
Karur Vysya Bank signed a similar bancassurance agreement with General insurance company Digit Insurance.
Indian Bank signed Bancassurance Tie up with Tata AIG General Insurance.
171. SBI signed MOU with National Investment and Infrastructure Fund to boost availability of capital for infrastructure projects. Scope
includes equity investments, project funding, bond financing, renewable energy support and take-out finance for operating assets.
172. SEBI approved Singapore Stock Exchange and National Stock Exchange of India to operate jointly in Gujarat International Finance Tec-
City, Gandhinagar. The two entities will create a new platform for trading called NSE International Financial Service Centre (IFSC)-SGX
Connect.
173. Saudi Arabia’s oil firm Saudi Aramco will accquire 20 % stake of Reliance Industries’s oil and chemicals business for about $15 billion
(approx Rs 1.06 lakh crores).
As part of deal, Aramco will supply 700,000 barrels per day on a long-term basis of crude oil to Reliance’s twin refineries(Reliance &
petrochemical complex) at Jamnagar in Gujarat, which has capacity of 68.2 million tonnes per annum.
Reliance also announced launch of Jio Fiber, its promising optical fibre-based service that was announced last year. It will provide
broadband speeds upto 1GBPS, along with a bundled landline connection and DTH Service. Commercial launch of jio Fiber will begin
from Sep 5, 2019.
174. Securities and Exchange Board of India (SEBI) issued wider disclosure norms for Credit Rating Agencies (CRAs), amid rising instances of
debt defaults and credit rating agencies (CRAs) failing to forewarn investors of deteriorating credit profiles of firms.
Now, CRAs will be required to disclose a matrix on probability of default (PD) for various rated instruments. CRAs will also have to
comply with a uniform Standard Operating Procedure (SOP) in respect of tracking and timely recognition of default.
Standardised and uniform PD benchmarks shall be disclosed by CRAs, for ratings of long-term and short-term instruments, on a
consolidated basis for all financial instruments rated by a CRA.
175. Securities and Exchange Board of India (SEBI) allowed stock exchanges with Commodity Derivative Segment (CDS) to introduce futures
on commodity indices, to will facilitate mutual fund and institutional participation in commodity exchanges.
Stock exchanges are required take prior approval from SEBI to launch such contracts.
Constituent futures contracts should be in existence on the respective exchanges for at least the previous twelve months and they
should have been traded at least 90% of trading days during previous twelve months, with average daily turnover during previous 12
months at Rs 75 crore for agricultural and agri-processed commodities and Rs 500 crore for all other commodities.
176. Securities and Exchange Board of India (SEBI) relaxed compliance requirements for Foreign Portfolio Investors (FPI).
Relaxed norms for Municipal bonds to help smart cities and other registered entities working in areas of city planning and urban
development work.
SEBI decided to simplify KYC requirements for FPIs as well as broad based criteria for them. Also, FPIs would be classified into 2
categories instead of 3.
SEBI will amend its regulations for credit rating agencies to ensure that any listed or unlisted entity, before getting rated, gives an
explicit consent to agencies for obtaining full details about borrowings from their lenders.
SEBI would permit startups move from Innovators Growth Platform of stock exchanges to main board, provided that such entities
have a shareholder base of at least 200.
SEBI will reward informants with up to Rs 1 crore cash for any credible information about Insider Trading. These benefits would only
be available to individuals and corporates. Professionals like auditors would not be able to use this route.
To safeguard interests of investors, mutual fund houses would be asked to shift all their investments to listed or to-be-listed equity
and debt securities in a phased manner as well as reduce their exposure to unrated debt instruments from 25% to 5%.
SEBI eased its norms for buyback of shares by listed companies, especially those having subsidiaries in housing finance and NBFC
sectors. Buyback offer cannot exceed 25% of aggregate paid-up capital and free reserves of company, also shareholders’ approval is
required for size over 10%.
SEBI will allow route for other structures where a group of municipalities pool their resources together to jointly raise funds through
issuance of bonds. These are generally called Pooled Finance Development Funds.
In case of private placements, minimum subscription amount per investor is currently Rs 25 lakh, which is being proposed to be
reduced to Rs 10 lakh to align it with regulations for corporate bonds.
177. Securities and Exchange Board of India (SEBI) released a discussion paper for informant mechanism related to insider trading. Proposed
amendments to SEBI (Prohibition of Insider Trading) Regulations 2015 are aimed at providing confidentiality and safeguards.
It proposes monetary reward up to Rs 1 crore for genuine whistleblowers, or 10 % of Involved amount (whichever is less). It would be
in the case where money disgorged is at least Rs 5 crores.
Informant will be required to fill a Voluntary Information Disclosure Form (VIDF) which must include credible information.
SEBI suggested to set up Office of Informant Protection (OIP) which will act as a medium of exchange between informant and board.
178. Singapore based Financial firm DBS Bank tied up with Social Alpha, the non-profit start-up incubator to mentor & support start-ups
focusing including inclusion, healthcare, and the environment in India, over next 18 months.
179. Small Industries Development Bank of India (SIDBI) introduced a web-based application for contribution from Fund of Funds for
Startups (FFS), to improve turnaround time and increase transparency. SIDBI is implementing agency for FFS with a corpus of 10000
crores.
180. Small Industries Development Bank of India (SIDBI) partnered with Incuspaze Solutions Private Limited (Incuspaze) to open a first-of-
its-kind co-working space named @Workspaze, exclusively designed for MSMEs and startups.
181. State Bank of India (SBI) will become first bank to introduce repo-linked home loan products, from July 2019. Any changes in Repo Rate
by RBI would be passed on directly to customers.
Home loans up to 75 lakh will be priced at 2.65% over repo rate of 5.75% resulting in the interest rate of 8.40%. At present, SBI offers
home loans linked to its MCLR (Marginal Cost of Funds Based Lending Rate) at 8.55%.
SBI also reduced interest rate on Cash Credit Account (CC) and Overdraft (OD) customers with limits above Rs 1 lakh. Now, effective
Repo-Linked Lending Rate (RLLR) for CC/ OD customers is 8% whereas for savings deposits above Rs 1 lakh new rate is 3%.
In March, SBI had linked all CC accounts and ODs with limits above 1 lakh to repo rate plus a spread of 2.25%. For account
balance above 1 lakh, it had set its savings deposit rates to 2.75% below repo rate.
182. State Bank of India's (SBI) Shanghai branch got connected to China's National Advance Payment System (CNAPS), making SBI only
Indian bank to have obtained license to do business in local currency in China and also inducted to CNAPS by People's Bank of China
(PBOC).
CNAPS, launched in 2008 by People's Bank of China (PBOC) provides real-time settlement services for all payments.
183. Tata Mutual Fund launched side-pocketing (segregated portfolio) option to set aside its troubled investment in Dewan Housing Finance
Limited (DHFL). They are created for 3 schemes - Tata Corporate Bond Fund, Tata Medium Term Fund, and Tata Treasury Advantage
Fund.
This is India’s first formal use of side pocketing provisions, introduced by SEBI in December 2018.
Side pocketing -
Its a procedure introduced by SEBI allowing Asset Management Companies (AMCs) to separate out a section of their portfolio
corresponding to bad debt held by them.
Investors receive units in segregated portfolio and these units are held separately. No further inflows are allowed into the side-
pocketed component of the fund.
Investors can redeem these units when money is recovered from bad debt.
184. UK- based Standard Chartered will be first foreign bank to launch operations at Gujarat International Finance Tec-city (GIFT city), after
receiving in-principle regulatory approval for the same.
185. US Based Ebix acquired Indian travel portal Yatra Online for $337.8 million. Yatra will continue to serve customers under its brand,
alongside EbixCash two other travel brands 'Via' and 'Mercury'.
186. Walmart Labs acqui-hired Indian Startups FloCare (health tech) and B2B wholesale trading platform BigTrade, to strengthen customer
service. Acqui-hires are made for skills of the team, rather than for the products / services.
Also, Online grocery delivery platform Milkbasket acquired Bengaluru-based e-grocery distributor PSR Supply Chain.
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