1. NSO advance estimates show slower GDP growth rate
- Recently released first advanced estimates by NSO show that GDP growth rate for 2019-20 will remain slow at 5%.
- Earlier RBI, in its October monetary policy review had revised GDP growth estimates from 6.1% to 5% for 2019-20.
- As per the NSO estimates, manufacturing and construction sector growth for the FY 2019-20 will decline from 6.9% in 2018-19 to 2% and 8.7% in 2018-19 to 3.2%, respectively.
- NSO estimates show that growth rate in mining and quarrying sectors will be more than the previous year and government spending on public administration, defense and other services will also grow.
- As per NSO data, growth in agriculture remained at 2.8 % in 2019-20 from 2.9 %in 2018-19, and Private consumption will decline from 8.1% in FY19 to 5.8 % in FY20.
- NSO estimates that real Gross Value Added (GVA) growth rate will decline from 6.6% in 2018-19 to 4.9%, and nominal GDP growth rate for FY 20 will be 7.5%. In FY 19, it was 11.2%.
- 5% real GDP growth rate for FY20 will be lowest since the 2008 economic crisis.
- The decline in the nominal GDP growth rate for FY 20 to 7.5% will cause a decline in tax revenues and a rise in the fiscal deficit.
2. Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 amended
- Insolvency and Bankruptcy Board of India (IBBI) has changed IBBI (Liquidation Process) regulations related to persons ineligible for submitting resolution plans and secured creditors.
- As per revised norms, persons ineligible for submitting resolution plans for insolvency resolution of the corporate debtor will not be included in any settlement of corporate debtor, and lenders will not sell assets of the company to such persons.
- Amended norms say that secured creditors will pay liquidation process costs and workmen dues within 90 days of starting of liquidation and excess of realized value within 180 days of starting of liquidation. Otherwise, the assets will become part of the Liquidation Estate.
3. SCES decides to make three sub-groups
- At its first meeting, Standing Committee on Statistics (SCES) has decided that three subgroups will be formed to study PLFS & time use survey, IIP & ASI and Annual Survey of unincorporated sector enterprises & services sector data.
- Sub-group on Periodic Labour Force Survey and time use survey will be headed by Jeemol Unni.
- Sub-group on Index of Industrial Production (IIP) and Annual Survey of Industries (ASI) will be headed by Biswanath Goldar.
- Sub-group on the annual survey of unincorporated sector enterprises and services sector will be headed by Pronab Sen.
- The committee, at its first meeting, made an overall assessment of existing datasets and decided to meet on a quarterly basis.
- Standing Committee on Statistics (SCES):
- Against an earlier reported number of 28, the total number of SCES members is 27.
- SCES is having 10 non-official and 16 official members.
- The representatives of RBI, Ministry of Finance, NITI Aayog, and Tata Trust, two industrial chambers, economists and statisticians are also included in SCES.
4. RTGS may be made available 24×7
- RBI governor has said that the RTGS system may be made available 24×7.
- Earlier, timings for transactions in RTGS were increased from 4:30 pm to 6:00 pm.
- 24x7 National Electronic Funds Transfer (NEFT) has been already started from December 16, 2019.
- Liquidity Support (LS) facility to banks participating in the NEFT payment system has also been made available.
- Real-time gross settlement (RTGS):
- It is a gross settlement based electronic payment system.
- In RTGS, transactions are completed individually or on a one-to-one basis.
- As per RBI, the minimum limit for transactions in RTGS is Rs 2 lakh.
- As per RBI, there is no upper or maximum limit for transactions in RTGS.
5. NICB may become a Small Finance Bank (SFB)
- On January 18, a special general body meeting of New India Co-operative Bank (NICB) will be held to convert it into SFB according to RBI's scheme on the voluntary transition of UCBs into SFBs.
- Earlier, in-principle approval was given to Shivalik Mercantile Co-operative Bank for conversion into SFB.
- On September 27, 2018, RBI had launched a scheme on the voluntary transition of Primary (Urban) Co-operative Banks (UCBs) into Small Finance Banks(SFBs).
- The scheme was based on recommendations of the High Powered Committee on Urban Cooperative Banks (UCB) under the chairmanship of R. Gandhi.
- As per the scheme, UCBs with ₹50 crore minimum net worth and capital to risk (weighted) assets ratio of 9 % and above can apply for a voluntary transition to SFB.
- Under the scheme, eligible UCBs are required to identify promoters for applying to RBI for conversion into SFB.
- New India Co-operative Bank is a Mumbai based multi-state Urban Co-operative Bank.
- Shivalik Mercantile Co-operative Bank is an Uttar-Pradesh based multi-state Urban Co-operative Bank.
Multiple Choice Questions (MCQs)
1. As per recently released first advanced estimates by NSO, GDP growth rate for 2019-20 will remain at
2. As per amended IBBI (Liquidation Process) regulations, secured creditors will be required to pay liquidation process costs and workmen dues within
- 60 days of starting of liquidation
- 90 days of starting of liquidation
- 120 days of starting of liquidation
- 180 days of starting of liquidation
- 240 days of starting of liquidation
3. Who will head the Periodic Labour Force Survey and time use survey sub-group of Standing Committee on Statistics (SCES)?
- Jeemol Unni
- Biswanath Goldar
- Pronab Sen
- CP Chandrasekhar
- V. Sadananda Gowda
4. RBI has made NEFT facility available on 24x7 basis from
- December 16, 2019
- January 8, 2019
- November 16, 2019
- October 8, 2019
- None of the above
5. RBI scheme on the voluntary transition of Primary (Urban) Co-operative Banks (UCBs) into Small Finance Banks (SFBs) was launched in