1. Unemployment rate at 23.4% in the week ending on April 5
- Centre for Monitoring of Indian Economy (CMIE) has found that unemployment rate was at 23.4% in the week ending on April 5.
- In March 2020, labour participation rate and employment rate were decreased to lowest levels and unemployment rate increased sharply.
- In Consumer Pyramids Household Survey (CPHS) carried out by CMIE, 2,289 households were observed over telephone in final week of last month and unemployment rate was found at 23.8%.
- In CPHS during final week of last month, Labour participation rate (LPR) and employment rate declined to 39% and 30%, respectively.
- 9,429 households were telephonically observed in the week ending on April 5 and employment rate stood at 23.4%.
- During the week ending on April 5, Labour Participation Rate (LPR) and employment rate declined to 36% and 27.7%, respectively.
- Employed people, unemployed people and people actively looking for employment are included in labour force.
- Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE) is privately owned company that was founded in 1976. Its headquarters lie in Mumbai. It surveys household income, expenditure and savings.
2. Sensex and Nifty index achieve biggest gain in single trading day since 2009
- Sensex and Nifty index has achieved biggest gain of 2,476 points and 708 points in single trading day since 2009.
- While Sensex gained 2,476 points and closed at 30,067 points, Nifty index gained 708 points and closed at 8,792.
- Global stock markets have also shown improvement and US stock markets improved by over 7% on 6 April.
- Declining number of cases of COVID-19 in Europe, $1-trillion stimulus likely by Japan and additional stimulus by US government has improved global stock markets.
- Sensex and Nifty index:
- Sensex includes 30 companies. They are traded on Bombay Stock Exchange (BSE). On the other hand, Nifty index includes 30 companies. They are listed on National Stock Exchange (NSE).
- While Sensex was started in 1986, Nifty index was started in 1996.
- While Sensex is a benchmark index of Bombay Stock Exchange, Nifty (National Stock Exchange Fifty) index is a benchmark index of National Stock Exchange.
3. SIDBI announces Rs 1 crore for MSMEs and increases limit for SAFE loans
- Small Industries Development Bank of India (SIDBI) has announced that it will provide Rs 1 crore as emergency working capital to MSMEs and increased limit for SIDBI Assistance to Facilitate Emergency response against Corona virus (SAFE) loans.
- The limit for SAFE loans has been increased from Rs 50 lakh to Rs 2 crore. SAFE loans were started on 26 March 2020 with a limit of Rs 50 lakh, 5 years repayment tenure and 5% interest rate.
- SAFE loans are provided to MSMEs manufacturing equipments required in fight against corona virus such as hand sanitizers, masks, testing labs, ventilators etc.
- Small Industries Development Bank of India (SIDBI):
- It was formed in 1990. Its headquarters lie in Lucknow. Its chairman and MD is Mohammad Mustafa.
- It functions under jurisdiction of Department of Financial Services, Ministry of Finance. RBI regulates and supervises SIDBI.
- SBI holds 16.73 % shares (largest) of SIDBI. Government of India and LIC also hold shares in SIDBI.
- Micro Units Development & Refinance Agency Ltd. (MUDRA) is a subsidiary of SIDBI.
4. BoM authorized for collecting contributions to PM CARES fund
- Government has authorized Bank of Maharashtra (BoM) for collecting contributions to PM CARES fund formed on March 28, 2020.
- Earlier, government has authorized HDFC Bank and Indian Overseas Bank for collecting contributions to PM CARES fund formed on March 28, 2020.
- Money can be contributed to PM CARES fund through any of the following means.
- RTGS (Real Time Gross Settlement)
- NEFT (National Electronics Funds Transfer)
- IMPS (Immediate Payment Service)
- Demand drafts
- Directly through electronic clearing system (ECS)
- Table summarizing important points about Bank of Maharashtra, HDFC Bank and Indian Overseas Bank:
Multiple Choice Questions (MCQs)
1. As per Centre for Monitoring of Indian Economy (CMIE), unemployment rate in the week ending on April 5 stood at
2. Recently, Sensex and Nifty index has achieved biggest gain in single trading day since 2009. When was Sensex established?
3. When was SIDBI Assistance to Facilitate Emergency response against Corona virus (SAFE) loan started by SIDBI?
- 22 March 2020
- 26 March 2020
- 29 March 2020
- 01 April 2020
- 06 April 2020
4. Which of the following banks has not been authorized by government for collecting contributions to PM CARES fund?
- Bank of Maharashtra
- HDFC Bank
- Indian Overseas Bank
- Bank of Baroda
- None of the above