Magazine

English
Banking & Financial Awareness

Current Affairs

Union Budget 2019-20 Highlights

  • Finance Minister Nirmala Sitharaman presented the maiden budget of Narendra Modi 2.0 government in the Lok Sabha. The key highlights of Union Budget 2019 are as follows:

Highlights-

 Taxes:

  • No change in personal income tax rates.
  • Increase in cess on fuel by 1 rupee, petrol & diesel to get costlier; while Customs duty on gold and precious items increased.
  • 3% surcharge hike on an income of Rs 2 crore; 7% on Rs 5 crore and above.
  • Corporate tax with turnover of up to Rs 400 crore slashed to 25 per cent from a current rate of 30 per cent.
  • Interchangeability of PAN and Aadhaar for ITR for those who don’t have PAN cards. ;
  • Advises GST Council to reduce tax rate on EVs from 12 per cent to 5 per cent.
  • Duty has been raised on: tiles, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV camera.

Affordable housing:

  • Rental laws to be reformed. Modern tenancy laws will be shared with states to promote house renting.
  • Additional Rs 1.5 lakh tax relief on home loan for purchase of a house up to Rs 45 lakh.

To promote digital payments:

  • 2% TDS on withdrawals of Rs 1 crore in a year from your bank account for business payments.

No charge on digital payment:

  • DR charges waived on cashless payment.

Ease of living:

  • Aadhaar card for NRIson arrival in India.
  • Rs 3,000 pension per month for workers from the informal sector.

Transportation:

  • Inter-operable One Nation One transport card: ATM-like Transport card for universal travel on various modes of transport (metro, road, railways etc).
  • Govt plans to create MRO (Manufacturing, Repair and Operate) industry.
  • PPP to be used to unleash faster development and the delivery of passenger freight services.
  • Comprehensive restructuring of National Highways Programme for creation of National Highways Grid.
  •  Government envisions using rivers for cargo transport to decongest roads and railways.

Economy:

  • Fiscal deficit in FY 19 at 3.3% of the GDP.
  • Govt will start raising part of borrowing in foreign currency.
  • Govt external debt to GDP is among the lowest in the world.

Women empowerment:

  • Nari tu Narayani: Women SHG Interest Subvention Programme to be expanded to all districts in India.
  • Rs 1 lakh loan to be provided for SHG women members under Mudra Scheme.
  • Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility.

Banking reform:

  • On purchase of high-rate pooled assets of NBFC amounting of Rs 1 lakh core in this FY, govt will provide one-time 6 month credit guarantee.
  • Propose to provide Rs 70,000 crore capital for PSU Banks.
  • Regulation of HFCs (Housing Finance Cos) to move to RBI from National Housing Bank.

Disinvestment: 

  • Govt to modify present policy of retaining 51% stake in PSUs.
  • Govt to continue with strategic divestment of select CPSEs.
  • Divestment target of Rs 1.05 lakh crore for FY 20.
  • Strategic disinvestment of Air India proposed to be re-initiated.

Railways: 

  • Budgetary allocation of Rs 65,837 crore and the highest ever outlay for capital expenditure amounting to Rs 1.60 lakh crore for railways.
  • A new PPP model will usher in the a new dawn of Indian railways.
  • Government to complete the dedicated freight corridor project by 2022.
  • Railways to be encouraged to invest more in suburban rail network via SPVs.
  • Railway infrastructure will need an investment of Rs 50 lakh crore between 2018 and 2030.
  • Massive programme for modernisation of railway stations to be launched in 2019.

MSME: 

  • Propose easing angel tax for startups.
  • Angel tax: Want required scrutiny from I-T department for startup.
  • E-verification mechanism for establishing investor identity and
  • source of funds for startups.
  • 2% interest subvention for GST-registered MSME on fresh or incremental loans.
  • ‘Stand Up India’ Scheme to continue till 2025.
  • New New television channel for start-ups.
  • Pension benefit extended to retail traders with annual turnover less than Rs 1.5 crore.
  • New payment platform for MSMEs to be created.

Education: 

  • Govt to launch ‘Study in India’ programme to attract foreign students in higher education.
  • Allocate Rs 400 crore for world-class higher education institutions in FY 20.
  • To unveil a new education policy.
  • National research foundat tion to fund, coordinate and to promote research in the country.
  • New Higher Education Commission with focus on higher autonomy.
  • New national education policy to propose changes in school, higher education.
  • To make the Indian youth ready to take up jobs in foreign countries, more emphasis on new-age skills like Artificial Intelligence, Internet of Things, Big Data, etc.

Tourism:

  • 17 iconic world-class tourist sites to be developed.

FDI: 

  • Local sourcing norms will be relaxed for the single-brand retail sector.
  • Govt to open FDI in aviation, insurance, animation AVGC and media.

Investment: 

  • Existing KYC norms for FPIs to be rationalized and simplified to make it more investor-friendly.
  • Long-term bonds for market. To allow FIIs & FPIs investment in debt securities issued by NBFCs.
  • Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus on infra sector
  • Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organisations.
  • To merge NRI portfolio route with FPI route.
  • To hike statutory limit for foreign investment in some companies.
  • To set up a credit guarantee enhancement corporation.
  •  Govt will take up measures to make RBI & SEBI depositories inter-operable.
  • SEBI to mull increasing minimum public shareholding to 35% from 25%.
  • User friendliness of trading platforms for corporate bonds will be reviewed, including issues arising out of capping of International Securities Identification Number.
  • To deepen corporate tri-party repo market in corporate debt securities. Plan to enable stock exchanges to allow AA rated bonds as collateral.
  • Annual Global Investors’ Meet for attracting global players to come and invest in India.
  • To allow FPIs to subscribe to listed debt papers of REITs.

Auto sector:

  • FAME II scheme aims to encourage faster adoption of electric vehicles through the right incentives and charging infrastructure.

For Rural India:

  • Gaon, Garib and Kisan are the focus of our government.
  • New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by 2024.
  • Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years.
  • Govt will set up 100 new clusters for 50,000 artisans in FY 20.
  • To invest Rs 80,250 crore for upgradation of roads under PM Gram Sadak Yojana.
  • Every single rural family, except those unwilling, to have electricity by 2022.

Agriculture:

  • Govt to promote innovative zero Budget farming.
  • 10,000 new farm produce organisations.
  • 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries.

Space:

  • India has emerged as a major space power. It is ti me to harness our ability commercially.
  • A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO.

Sports:

  • To popularise sports at all levels, National Sports Education Board for development of sportspersons to be set up under ‘Khelo India.’

State of the economy:

  • Railways will require investment of Rs 50 lakh crore from 2018-30.
  • Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improving our transport infrastructure.
  • ‘Gandhipedia’ is being developed to sensitize the youth about positive Gandhian values.
  • The unambiguous mandate by the people in the recent election has set the ball rolling for the New India.
  • NPAs recover Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the last one year.
  • Rashtriya Swachhta Kendra to be inaugurated at Rajghat on October 2.
  • The people of India have validated their two goals for our country’s future: National security and Economic growth.
  • It took us over 55 years to reach $1 trillion dollar economy, but we added $1 trillion in just 5 years.
  • We can very well reach $5 trillion in the next few years.
  • Last mile delivery stood out, citizens in every nook and corner of the country felt the difference; our objective was and continues to be Mazbooth Desh Ke Liye Mazbooth Nagarik.
  • Government lays out 10-point vision for the New India.

SBI slashes lending rates by 5 bps

  • SBI’s one-year MCLR cut from 55% to 8.5% effective 10 April
  • SBI reduces home loan rate by 10 bps for loans of up to ₹30 lakh
  • The lender’s one-year marginal cost of funds based lending rate (MCLR)will be 4% compared with 8.45%.

RBI panel moots change in timings for foreign exchange market.

  • An internal committee of the Reserve Bank of India (RBI), which was set up to review timings of different financial markets, suggested that the foreign exchange market could function from 9 am to 9 pm. At present, the currency market works from 9 am to 5 pm.
  1. RBI 25th Governor- Shaktikant Das
  2. Headquarters- Mumbai
  3. Founded- 1 April 1935, Kolkata

RBI fines SBI for flouting norms

  • The Reserve Bank of India (RBI) has penalised State Bank of India and Union Bank of India for violating certain regulatory guidelines.
  • SBI was fined 7 crore for non-compliance on Income Recognition and Asset Classification (IRAC) norms, code of conduct for opening and operating current accounts and reporting of data on Central Repository of Information on Large Credits (CRILC), and fraud risk management and classification and reporting of frauds.
  1. Chairman of SBI- Shri Rajnish Kumar
  2. MD & CEO of Union Bank of India – Shri Rajkiran Rai G.
  3. Chairman & Part-Time Non-Official Director of Union Bank of India- Shri Kewal Handa

HDFC Bank terminated & delisted its GDRs from Luxembourg Stock Exchange

  • Private sector lender HDFC Bank has terminated and de-listed its 22 outstanding global depository receipts (GDRs) from the Luxembourg Stock Exchange.
  • The action has been taken due to low trading volume of GDRs.
  1. HDFC bank founded in- August 1994
  2. Headquarters- Mumbai, Maharashtra
  3. MD- Aditya Puri

Centre cuts interest on GPF by 10 bps

  • Finance Ministryhas cut the rate of General provident fund (GPF) by 10 basis points from 8% to 7.9%.
  • During the year 2019-2020,accumulations at the credit of subscribers to the GPF and other similar funds shall carry interest at the rate of 7.9% with effect from July 1, 2019 to 30th September 2019.
  • Finance Ministry of India- Nirmala Sitharaman

ADB cuts India’s GDP growth rate from 7.2% to 7% for FY20

  • Asian Development Bank lowered India’s GDP growth rate from 2% to 7% for the current fiscal year.
  • India is expected to grow by 7% in 2019 and 2% in 2020, slightly slower than projected in April, ADB said in its supplement to the Asian Development Outlook 2019.

IMF lowers India’s growth outlook for FY20

  • The International Monetary Fund has lowered its annual growth forecast for India from3% to 7% in financial year 2019-20.

  1. Acting MD of IMF- David Lipton
  2. Headquarters – Washington DC, USA

Retail Inflation

  • Retail inflation rose to 18 percent in June, because of the costlier food products such as grains, pulses and protein-rich items meat and fish.
  • The Consumer Price Index (CPI) – based retail inflation was at 05 per cent in the preceding month of May 2019.
  • The overall food inflation based on consumer food price index rose to 17 per cent in June as against 1.83 per cent in June.
  • The Central Statistics Office (CSO) data released by the Ministry of Statistics and Programme Implementation showed.

CPI can be calculated as-

DID YOU KNOW?

  • Ink in the ATM

A blue ink bottle is placed inside the ATM, where notes are placed. If someone tries forcefully withdrawal a note or breaks the machine, then ink spreads on the notes.

  • Combination of 4 digits Pin number

For a 4 digit pin number between 0 to 9, 10,000 possible and valid passwords Combination is present. The most common of these is 1234, 1111 and 0000. The least commonly used password is 8068.