[Current] Sep-2016: Economy, Banking, Finance: MPC Members, SBI Merger & Share Swapping, Stock Gaming, PFMS, Talgo Rails & Hyperloop TrainDevendra Vishwakarma
- Pillar#1: Banking-Finance
- Monetary policy committee (MPC)
- Monetary policy: Oct-2016 update
- RBI other developments
- NPA Related
- Banking: SBI Merger & share-swapping
- Finance: SEBI and NBFC related
- Finance: Insurance-Pension related
- Scams: Banks
- Scams: Share market
- Pillar#2: Budget, Public Finance
- Committee pe Committee
- Labour and wages
- Pillar-3: BoP and World Trade
- Pillar-5: Infrastructure
- Summits and Rankings
Compilation of selected current affairs related to economy from August and September 2016.
Monetary policy committee (MPC)
- Purpose- Maintain inflation within 2-6% of All India CPI.
- Setup on the recommendations of RBI’s Urjit Patel Committee.
- For long, the composition was stuck because Government wanted its officers in the Committee- with, but RBI feared this will hurt autonomy.
|3 from RBI side||3 from outside|
Want to learn more about this Committee? Watch lecture
Monetary policy: Oct-2016 Review & update
- Repo rate decreased by 0.25%. New repo rate is 6.25%
- Reverse repo rate 5.75%
- SLR, CRR unchanged.
- To understand theory- watch the lecture.
RBI other developments
|E-Kuber||RBI will administer the Sovereign gold bonds on through this e-portal.|
|Khan Panel (RBI)||
|Chandan Sinha working group (RBI)||
Banking: NPA related
|Insolvency and Bankruptcy board||
|Defaults||Banks can’t publish photos of all defaulters and their gurentators. Only wilful defaulter’s name can be published- says RBI.|
|Mallya||Says he wants to return from UK but government has suspended his passport. MEA says he can- by applying for an ’emergency certificate.’|
Banking: SBI Merger & share-swapping
- SBI Chairman Arundhati Bhattacharya given 1 year extension so she could complete the Merger of SBI, its 5 associated banks and Bharatiya Mahila Bank; and resolve NPA problem.
- Under the merger, existing shareholders of those 6 smaller banks will get SBI shares in following table.
- After share-swapping the existing shares of those khopchaa-banks will be cancelled.
|खोपचा-Banks||If you have __ shares||You will get__SBI shares|
||10 share of Rs. 10 each||
|State Bank of Mysore (SBM)
|State Bank of Travancore (SBT)||22 shares||
|State Bank of Patiala (SBP)||
|Bharatiya Mahila Bank Limited (BMBL)||100% govt owned||4.42 crore SBI shares to govt. (तो फिर बनाया ही क्यों था ये बेंक? except to harass IBPS aspirants?)|
To Understand the evolution of Banking sector in India. Watch Lecture
SBI: Misc. Developments
- Launched unit in GIFT city,Gandhinagar to deal in external-commercial borrowing and trade credit.
- SBI is 45th largest bank of the world with assets over Rs.37 billion.
Finance: SEBI and NBFC related
Finance: Insurance-Pension related
Last three responsible for managing Government sector NPS. In news because now PFRDA invited fresh bits to manage NPS funds- total 10 will be given ‘license.’
|Jan Dhan Data Dressing||
|Bank of Maharashtra||CMD Sushil Muhnot removed for allegedly occupying two houses.|
Scams: Share market
Pillar#2: Budget, Public Finance
|GST||Lot of updates but will cover in future lecture since the topic is still evolving.|
|Budget reform||Plan vs non-plan classification to be removed, Budget date to be advanced, rail budget to be merged…More in future lecture.|
|Income declaration scheme||
|E-nirvan||This portal is launched by CBDT to handle Income tax payers’ grievances.|
|1924||This is the toll free number to complaint against Indian Post.|
|Commodity boards||Commerce ministry suggests that in tea, coffee, rubber, tobacco board- the chairman should be a politician and IAS should be of dy. Secretary rank. Earlier IAS themselves used get appointed as Chairman.|
- Public financial management system (PFMA) is managed by Controller General of Accounts (CGA).
- This webportal gives real-time monitoring of the central funds allotted to various central schemes; with its treasury-bank interface.
- Doesn’t monitor state schemes.
- Voluntary for states to join, but government hopes by 2017,March all will join.
- W.Bengal not joined the portal, but Union assures it’s not ‘intrusive’, only central funds to CSS will be monitored.
- CGA also manages NRTP: Non-tax receipt portal.
- CGA’s new building inaugurated. Its name is “Mahalekha Niyantrak Bhavan”
Committee pe Committee
|Justice AP Shah Panel||
|CEA Arvind Subramanian Panel||
|Rajan P Watal committee||
|Sanjya Mitra committee||
|Body pe body||FM to setup a forum, which will apprise creation of new institutions/bodies/SPV etc.|
Labour and wages
Pillar-3: BoP and World Trade
|Bahama papers||After Panama papers, now Bahama papers leaked- detailing the shell firms registered by the rich to evade tax in their home countries. ~475 from India.|
|Exchange rate council||Comm. Min wants there should be a separate panel to decide the value of rupee against foreign currency. At present, rupee said to be 10% overvalued against dollar- hence negatively affecting exports.|
|Apple-Ireland||EU orders Apple to pay #13 billion Euro as back tax to Ireland. Ireland itself not keen to accept money fearing it’ll deter other investors from opening companies and creating jobs in Ireland.|
|Sasan UMPP||This ultra-mega powerplant is Located in Madhya Pradesh. Reliance power has mortgaged the coalmines linked to this project to lenders. But coalmin prohibited those lenders from transferring the leases to third parties without its consent.|
|Rail budget||To be merged with general budget. Will be covered in lecture.|
|Hyperloop train.||They run faster than aircraft at a speed of 1120 kmph. Niti Gadkari met SpaceX entrepreneur Elon Musk and suggested him to introduce such trains in INDIA!|
Summits and Rankings
|WEF||World economic freedom index 2016- India’s rank declined from earlier. Now we’re 112th most bogus country among 159 total countries. Hong Kong (1), Singapore (2).
It’s prepared by the Heritage Foundation in partnership with Wallstreet Journal.
|health index for SDG||
|Inequality of wealth||New World Wealth report : Japan is most equal country; Russia- most unequal; India- 2nd most unequal because millionaires control >50% of national wealth.|