Topic: Indian Economy/Financial Market
1. Central government has kept its borrowing target for first half (H1) of FY23 at ₹8.45-lakh crore.
- This target is about 60% of overall market borrowing target of ₹14.95-lakh crore for FY23 announced by government in the budget.
- Ways and Mean Advances (WMA) limit for H1 of FY 2022-23 has been fixed by RBI at ₹1.5 lakh crore.
- An increase of $11.5 billion has been recorded in India’s external debt during October-December 2021. This debt increased to $ 614.9 billion.
- India’s external debt as a percentage of GDP decreased from 20.3% as of September-end 2021 to 20% as of December-end 2021.
- As on 31 December 2021, short-term debt (residual maturity) accounted for 43.1% of foreign exchange reserves.
- Most of the external debt is private. General government external debt decreased from September 2021 to December 31, 2021. Non-government external debt increased.
- The components of external debt in decreasing order are commercial borrowings (36.8% share), non-resident deposits (23.1% share) and short-term trade credit (18.0% share).
- In terms of maturity, debt having original maturity up to one year increased to 18.6% of total external debt.
- Short-term debt on a residual maturity basis (to be paid within next 12 months regardless of its original maturity) increased to 44.4% of total external debt.
Topic: Indian Economy/Financial Market
2. Central government’s fiscal deficit has increased to 82.7% of target for FY22.
- The fiscal deficit up to 28 February stood at ₹13.17-lakh crore.
- This is 82.7% of revised estimate fiscal deficit of ₹15.91-lakh crore for FY22.
- Last year, the fiscal deficit stood at 76% as a percentage of revised estimate.
- In April-January 2021, the fiscal deficit was ₹9.37-lakh crore. This was 58.9% of budgeted fiscal deficit of ₹15.91-lakh crore.
- All India CPI-IW has decreased by 0.1 point in February 2022. It stood at 125 in February 2022. In comparison to January 2022, it decreased by 0.08%.
- In comparison with February 2021, CPI-IW increased by 0.68%.
- The contribution of food and beverage group to total decline in Consumer Price Index for Industrial Workers (CPI-IW) is 0.30%.
- Maximum decrease of 4.7 points in CPI-IW has been recorded in Salem, Tamil Nadu.
- Maximum increase of 2.9 points in CPI-IW has been recorded in Thane, Maharashtra.
Topic: Indian Economy/Financial Market
3. Union cabinet has decided to approve Rs 6,062-crore funding programme for small and medium businesses.
- The programme, Raising and Accelerating MSM Performance (RAMP) for MSMEs, has been approved by Cabinet Committee on Economic Affairs (CCEA).
- The RAMP programme is assisted by World Bank. It aims to improve access of small and medium businesses to market and credit.
- Rs 3,750 crore will be provided from World Bank loan. Central government will fund remaining Rs 2,312.45 crore.
Topic: Indian Economy/Financial Market
4. India’s current account deficit has increased to $23 billion in October-December quarter (Q3) of 2021-22.
- It stood at $9.9 billion in Q2 of 2021-22. It was $2.2 billion in previous year.
- Current account deficit has mainly increased on account of higher trade deficit.
- As a percentage of GDP, current account deficit stood at 2.7% in Q3 of 2021-22.
- Net services receipts have increased because of good performance of computer and business services.
- Private transfer receipts increased by 13.1% to $23.4 billion from previous year.
- The data is based on RBI’s statement on “Developments in India’s Balance of Payments during the Third Quarter (October-December) of 2021-22”.
- As per the statement, net outgo from primary income account also increased.
- Net outgo from primary income account mainly shows net overseas investment income payments.
- Net foreign direct investment has shown inflow of $5.1 billion. This is lower than a year ago period.
- Portfolio investment has shown net outflow. Net external commercial borrowings to India recorded outflow. Non-resident deposits recorded net inflow.
Topic: Indian Economy/Financial Market
5. Eight core industries output has increased to four month high level of 5.8% in February 2022.
- The output has contracted by 3.3% in February 2021. In January 2022, the output has shown an increase of 4%.
- During April-February 2022, cumulative growth in output of eight core industries stood at 11%.
- In February 2022, output growth has been recorded in six out of eight core industries.
- Contraction has been recorded in crude oil and fertilizers only.
- The withdrawal of 5% Tax Collected at Source on sale of overseas holiday package by Indian tour operators has been announced by the centre.
Topic: Corporates/Companies
6. Corporate Affairs Ministry has increased deadline for its mandatory audit trail norm by one year.
- Under mandatory audit trail norm, companies are required to use only accounting software with audit trail features.
- This norm will now be implemented for transactions of financial year starting from 1 April, 2023.
- This norm was to be earlier implemented from 1 April 2022.
- In March 2021, the Ministry has ordered that every company using accounting software to keep its books of accounts will only use software having audit trail feature for each and every transaction.
Topic: Banking System
7. Punjab National Bank has reported maximum value of frauds in April-December 2021 as per RBI data.
- The frauds reported by PNB amounted to Rs 4,820 crore. It reported third highest number (10) of frauds.
- Highest number (13) of frauds have been reported by Bank of India. Yes Bank reported second-highest number (11) of frauds.
- Bank of India reported second maximum value of frauds (Rs 3,925 crore).
- State Bank of India reported third highest value of frauds (Rs 3,902 crore).
- Total frauds of Rs 34,097 crore have been reported by 27 scheduled commercial banks and financial institution in April-December 2021.
- PSBs can take certified copies of passport of promoters or directors of companies taking loan of more than Rs 50 crore.
- The properties of fugitive economic offenders can be attached under Fugitive Economic Offenders Act, 2018.
Topic: RBI
8. 31 March 2023 is new deadline for implementation of cassette swap in all ATMs by banks.
- RBI has for the second time extended the deadline by one year.
- The banks were advised by RBI in July 2021 that they should use lockable cassettes in their ATMs.
- 31 March 2021 was the original deadline for all ATMs to get cassette swap. It was extended by one year.
- RBI had advised the banks on the basis of recommendations of the Committee on Currency Movement.
- Committee on Currency Movement was constituted by RBI under chairmanship of D.K. Mohanty.
Topic: Banking System
9. ADB and HSBC India (HSBC) have partnered to establish a $100 million partial guarantee program for MFIs in India.
- The partnership aims to support over 400,000 micro-borrowers and mostly women-owned microenterprises across India.
- Under the deal, total $30 million will be initially distributed to three microfinance institutions (MFIs) in India by April 2022.
- This is the first collaboration between ADB and HSBC.
- Through the partnership, HSBC will give loans to microfinance institutions (MFIs) and non-bank finance companies, with ADB partially guaranteeing loans.
- Asian Development Bank (ADB):
- It is a regional development bank established in 1966. Its members are 68 countries.
- Its headquarters is in Mandaluyong, Philippines. Its President is Masatsugu Asakawa.
- HSBC Bank India is a subsidiary of British bank, HSBC. Its headquarters is in Mumbai.
Topic: MoUs / Agreements
10. An MoU has been signed between IFSCA and the IRDAI.
- Injeti Srinivas, Chairperson of IFSCA and Debasish Panda, Chairperson of IRDAI have signed a MoU at IRDAI's head office in Hyderabad.
- This MoU focuses on the strengthening of inter-regulatory exchange of information, technical cooperation, and supervisory collaboration.
- Insurance Regulatory and Development Authority of India (IRDAI) is responsible for the overall development and regulation of the insurance sector in India.
- IFSCA has also signed MoU with Indian Institute of Management Ahmedabad (IIMA).
- This MoU has been signed for the purpose of policy research in the financial areas that are emerging.
- International Financial Services Centres Authority (IFSCA):
- It was established to regulate all financial services in International Financial Services Centres (IFSCs).
- It was established on April 27, 2020. It is headquartered at Gandhinagar in Gujarat.
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