1. Ajay Kumar Srivastava took charge as the MD & CEO of Indian Overseas Bank.
- He has become the MD and CEO of the bank for three years with effect from January 1, 2023.
- In September 2022, the Centre promoted Srivastava as MD and CEO of Indian Overseas Bank (IOB).
- He has replaced Partha Pratim Sengupta as MD and CEO.
- Indian Overseas Bank is a nationalized bank headquartered in Chennai. It is a public sector bank. It was founded in 1937.
2. RBI released fifth volume of Reserve Bank history (1997-2008) on 19 December 2022.
- The fifth volume covers the 11-year period from 1997 to 2008.
- The process of preparation of this volume was started by RBI in 2015 under guidance of an Advisory Committee.
- Dr. Narendra Jadhav, former Member of Parliament and former Principal Adviser & Chief Economist of the Reserve Bank chaired this committee.
- A team of writers led by the economic historian Dr. Tirthankar Roy has prepared the volume.
- Other members of the team were K. Kanagasabapathy, N. Gopalaswamy, F. R. Joseph and S.V.S. Dixit.
- It covers the tenures of three Governors. It covers the latter part of Dr. C. Rangarajan’s tenure, the complete tenure of Dr. Bimal Jalan and a major part of Dr. Y. V. Reddy’s tenure.
Topic: Indian Economy/Financial Market
3. India's unemployment rate risen to highest level in the last 16 months.
- According to the data from the Centre for Monitoring Indian Economy (CMIE), the overall unemployment rate has increased from 8% in November to 8.3% in December.
- The urban unemployment rate has increased from 8.96% in November to 10.09% in December.
- The rate of rural unemployment has decreased from 7.55% in November to 7.44% in December.
- The unemployment rate had decreased to 7.2% in the July-September quarter.
- The unemployment rate has risen to 37.4% in Haryana, followed by 28.5% in Rajasthan and 20.8% in Delhi.
Topic: Reports and Indices
4. India's manufacturing output reached to a 13-month high.
- India’s manufacturing sector activity hit to a 13-month high in December.
- S&P Global India Manufacturing Purchasing Managers’ Index (PMI) was at 57.8 in December, it was up from 55.7 of November.
- PMI data for December points towards an improvement in overall operating conditions for the 18th continued month.
- As per the survey, Advertising, product diversification and favourable economic conditions supported sales growth.
- For the third quarter of the current fiscal year, the PMI average was recorded highest in a year.
- The output of eight core sector industries grew by 5.4 percent in November.
- The cost pressures remained relatively low in December and the overall inflation rate was the second slowest since September 2020.
- PMI is a survey-based indicator of business conditions. It includes measures of business output, new orders, employment, costs, selling prices, etc.
- In PMI, score below 50 indicates contraction while score above 50 indicates expansion.
- The S&P Global India Manufacturing PMI is compiled by S&P Global.
5. Indian state-run companies will remain exempt from the minimum public shareholding (MPS) norm according to a government notification.
- MPS norm requires listed companies to maintain a 25% public shareholding.
- However, the exemptions granted will be valid for a specified period even in case of change in ownership or control after the exemption is granted.
- Extending the exemption granted to the state-run companies in case they are privatised may attract investors to purchase a stake in government companies.
6. Gujarat AAR has ruled food-beverages prepared in a restaurant will attract 5% GST.
- Gujarat’s Authority for Advanced Ruling (GAAR) has ruled that 5% GST is irrespective of whether they are consumed inside the restaurant or part of takeaway.
- If the beverage is not prepared in restaurant but served over the counter will attract GST of individual items.
- AAR rulings are applicable on applicant and jurisdictional tax official concerned. But they can be relied upon in similar matters.
Topic: Banking System
7. SBI, ICICI, and HDFC Bank remained systemically important banks.
- The top three Indian lenders - State Bank of India, ICICI Bank, and HDFC Bank continue to be domestic systemically important banks (D-SIBs).
- RBI places these banks in appropriate buckets upon their Systemic Importance Scores (SISs).
- ICICI Bank and HDFC Bank have been placed in the first bucket while the SBI has been placed in the third bucket.
- ICICI Bank and HDFC Bank have to maintain additional CET1 at 0.20 per cent of their RWAs.
- SBI has to maintain Additional Common Equity Tier 1 (CET1) at 0.60 per cent of its Risk Weighted Assets (RWAs).
- The additional CET1 requirement for D-SIBs has become fully effective from 1 April 2019.
- In 2014, RBI had issued the framework for dealing with Domestic Systemically Important Banks.
- RBI is required to disclose the name of the bank designated as D-SIB under the D-SIB framework.
- SBI and ICICI Bank had become D-SIBs in 2015 and 2016. HDFC Bank was also classified as a D-SIB in 2017.
- SIBs are perceived as ‘Too Big To Fail’ and their functioning is critical for essential banking services in the Indian Economy.
8. Supreme Court upheld Centre's decision of demonetization of 500 and 1000 rupees.
- A five-judge constitution bench dismissed 58 petitions challenging the central government's demonetisation decision.
- The bench headed by Nazeer said that this decision is of the economic policies of the government, so it cannot be changed.
- Delivering the verdict on the basis of majority, Justice B.R. Gavai said that the decision of the central government is correct, because before this there was a consultation between the government and the Reserve Bank.
- Justice S. Abul Nazir, B.R. Gavai, A.S. Bopanna, V.P. Ram Subrahmanyam and B.V. Nagaratna's five-judge constitution bench was hearing several petitions challenging the Centre's decisions.
- Justice Nagaratna dissented from the judgment.
- The government had told the court in an affidavit that the objective of demonetisation was to curb circulation of fake currency, black money, tax evasion and funding of terrorist activities.
- Government had decided to demonetise ₹500 and ₹1,000 currency notes through a gazette notification on November 8, 2016.
9. The government collected nearly one lakh 50 thousand crore rupees as GST revenue in December 2022.
- As per Finance Ministry, GST revenues in December 2022 are 15% higher than the GST revenues in December 2021.
- During December 2022, revenue from the import of goods was 8% higher than revenue from the import of goods during December 2021.
- During December 2022, revenue from the domestic transaction was 18% higher than the revenue from the domestic transaction during December 2021.
- As per the Ministry, the total revenue of the Centre is 63,380 crore rupees and the States is 64,451 crore rupees after regular settlements in December, last year.
(Source: News on AIR)
10. International Year of Millets (IYM) - 2023 began with focused activities.
- The Government of India under the leadership of the Prime Minister had submitted the proposal for the International Year of Millets (IYM) - 2023, which was accepted by the United Nations General Assembly (UNGA).
- Apart from this, Prime Minister Shri Narendra Modi has also shared his vision to establish India as a 'Global Hub for Millets' as well as to make IYM-2023 a 'Jan Andolan'.
- Several evidences for the consumption of millet during the Indus Valley Civilization suggest that it was one of the first crops to be cultivated in India.
- Millet is currently produced in more than 130 countries.
- Earlier in April 2018, millet was promoted as a "nutritional grain".
- After this, the year 2018 was declared the National Millet Year.
- The global market for millets is estimated to grow at a CAGR of 4.5 percent during the forecast period, 2021-2026.