Topic: Indian Economy/Financial Market
1. The Controller General of Accounts (CGA) issued data showing that the fiscal deficit from April to July was 17.2% of the target for the entire year.
- Based on CGA data, the fiscal deficit as of July-end was Rs 2,76,945 crore in absolute terms.
- The fiscal deficit for the same period in the previous fiscal year was around 34%.
- The government estimated in the Union Budget that it would reduce the fiscal deficit to 4.9% of GDP in FY25.
- In 2023–2024, the deficit amounted to 5.6% of the GDP.
- During the current fiscal year, the government aims to keep the deficit to an absolute minimum of Rs 16,13,312 crore.
- According to CGA, net tax income for the current fiscal year was Rs 7.15 lakh crore, or 27.7% of Budget Estimate (BE).
- The entire expenditure by the central government in the four months ending in July was Rs 13 lakh crore, or 27% of BE.
- The revenue account held Rs 10,39,091 crore of the total expenditure, while the capital account held Rs 2,61,260 crore.
- Of the overall revenue spending, Rs 1,25,639 crore was attributed to significant subsidies, and Rs 3,27,887 crore went towards interest payments.
- According to the CGA, up till July, the central government transferred Rs 3,66,630 crore to state governments as devolution of share of taxes.
- This is an increase of Rs 57,109 crore over the prior year.
- The difference between total government spending and revenue is known as the fiscal deficit. It shows the total amount of borrowing the government will require.
Topic: Banking/Financial/Govt Schemes
2. The e-Dispute Resolution Scheme (e-DRS) has been announced by the Income Tax Department.
- The government is attempting to reduce lawsuits via this scheme.
- A taxpayer may choose to use the scheme against the "specified order," as per e-DRS.
- This specified order includes an order wherein the total amount of proposed or made changes does not surpass ₹10 lakh, and the total amount of returned income for the applicable assessment year does not surpass ₹50 lakh.
- Furthermore, information obtained through a double taxation avoidance agreement or search or survey results should not be the basis for such an order.
- Through the scheme, a chosen taxpayer will be able to electronically submit a dispute resolution application to the DRC assigned to the Pr. CCIT region that has jurisdiction over them.
- In each of the nation's eighteen jurisdictional Principal Chief Commissioner of Income-tax (Pr. CCIT) zones, DRCs have been established.
- A DRC (Dispute Resolution Committee) may choose to give a decrease in penalty or waiver of prosecution in addition to making changes to the deviations in the specified order.
- The Committee must make a decision within six months of the end of the month in which it accepts an application for dispute settlement.
- Within one month of the date on which the stated order is received, the application for e-DRS in Form No. 34BC must be submitted via the Income Tax Department's e-filing system.
- If an appeal has been filed and is now ongoing before the Commissioner of Income-tax (Appeals), the e-DRS application must be submitted by September 30 at the latest.
Topic: Indian Economy/Financial Market
3. Combined Index of Eight Core Industries increased by 6.1% (provisional) in July, 2024 as against July, 2023.
- Core industries growth reached 2-month high level of 6.1% in July.
- Positive growth has been recorded in six of eight industries.
- Steel, Electricity, Coal, Refinery Products, Cement, and Fertilizers have recorded positive growth in July 2024.
- The final growth rate of Index of Eight Core Industries for April 2024 is 6.9%.
- The cumulative growth rate of ICI during April to July, 2024-25 is 6.1 % (provisional) as against corresponding period of 2023-24.
- Cement and Coal production increased by 5.5% and 6.8%, respectively, in July, 2024 over July, 2023.
- Electricity generation and Fertilizer production increased by 7.0% and 5.3%, respectively in July, 2024 over July, 2023.
- Crude Oil production and Natural Gas production declined by 2.9% and 1.3%, respectively in July, 2024 over July, 2023.
- Petroleum Refinery production and Steel production increased by 6.6% and 7.2% in July, 2024 over July, 2023.
- The Eight Core Industries make up 40.27% of the weight of items included in the Index of Industrial Production (IIP).
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Topic: MoUs/Agreements
4. An MoU has been signed between Tourism and Hospitality Skill Council and Visa.
- The MoU has been signed to upskill at least 20,000 Indian youth in tourism-relevant skills.
- The Tourism and Hospitality Skill Council (THSC) an arm of the Ministry of Skill Development and Entrepreneurship.
- Visa is an American digital payments company.
- Two have entered into a three-year partnership valued at up to $1 million.
- The partnership aims to train youth across 10 states, including Assam, Gujarat, Himachal Pradesh, and West Bengal.
- The tourism sector contributes significantly to India's economy.
- It accounts for over $231 billion in GDP and employed over 42 million people in 2023.
Topic: Banking System
5. DigiPassBook has been launched by HDFC Bank to consolidate investments under one roof.
- With this, users can manage and view all their ETFs, equity investments and demat accounts in the app.
- DigiPassBook, is a new feature on HDFC Bank’s SmartWealth app.
- DigiPassBook is supported by the account aggregator framework.
- It makes possible for users to consolidate financial assets from different institutions.
- Bond and insurance investments will be included to the DigiPassBook in the future by HDFC Bank.
- Since the end of July, the new feature has been available on the SmartWealth app.
- The DigiPassBook was only compatible with the current account-saving account system prior to this.
- HDFC Bank has plans to deploy one million of its recently introduced point-of-sale (PoS) devices annually.
- The new "all in one" PoS machine from HDFC Bank was unveiled at the global fintech festival.
- The PoS machine combines soundbox, QR code scanner, and point-of-sale (PoS) functions.
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Topic: Banking System
6. Mastercard launched its Payment Passkey Service in India.
- This service has been launched at the Global Fintech Fest in Mumbai.
- Mastercard has launched its Payment Passkey Service to make shopping more secure and easier.
- This service has been introduced in India as a pilot project with some of the nation’s largest payment players, such as Juspay, Razorpay, and PayU.
- Payment passkeys use device-based biometric authentication methods such as fingerprints or facial scans.
- Users could use biometric authentication mechanism features on their device—whether it’s a fingerprint, face scan, or PIN to confirm the payment.
- The payment passkeys will replace passwords and the OTP mechanism, and it will be more secure against fraud and scams.
- In the last two years, the incidence of fraud cases has surged by nearly 300 per cent in India.
Topic: RBI
7. A penalty of Rs 2.68 crore has been imposed by RBI on UCO Bank for violation of provisions.
- The bank violated provisions on opening of current accounts, interest rate on deposits and frauds classification.
- A penalty of Rs 2.1 lakh on has also been imposed by the RBI on the Cent Bank Home Finance Ltd.
- This penalty is for non-compliance with certain provisions of Know Your Customer (KYC) directions.
- UCO Bank is an Indian public sector bank. It is headquartered in Kolkata.
- It is the only Government of India owned bank in the east India. Ashwani Kumar is its MD & CEO.
Topic: Awards and Prizes
8. Ayushmann Khurrana and Neeraj Chopra get FICCI’s ‘Youth Icon of the Year’ award.
- Ayushmann Khurrana received FICCI’s Youth Icon Award 2024 in the Entertainment category.
- Neeraj Chopra received FICCI Young Leader Youth Icon Award 2024 in the sports category.
- Neeraj Chopra is Olympic gold medalist in javelin throw. Ayushmann Khurrana is a bollywood actor.
- The awards were presented by FICCI representatives, Shashwat Goenka and Aishwarya Bansal.
- The FICCI Young Leaders Awards 2024 recognises the next generation of change makers.
Topic: Corporates/Companies
9. SJVN, NHPC, RailTel and Solar Energy Corporation of India granted Navratna status by the Government of India.
- On August 30, Sutlej Jal Vidyut Nigam (SJVN) Limited, NHPC Limited, RailTel Corporation of India Limited, and Solar Energy Corporation of India Limited were granted 'Navratna' status by the Narendra Modi government.
- RailTel Corporation of India has become the 22nd 'Navratna', followed by Solar Energy Corporation of India 23rd, NHPC 24th, and Satluj Jal Vidyut Nigam 25th 'Navratna' in India.
- Shimla-based SJVN is a listed company with the following shareholding pattern: 55% stake held by the government of India, 26.85% by the government of Himachal Pradesh, and the remaining 18.15% by the public.
- NHPC, a Faridabad based company, is under the Ministry of Power.
- It is India's largest hydropower development organization, capable of undertaking a range of activities from conceptualization of hydropower projects to their commissioning.
- RailTel is a Central Public Sector Undertaking (CPSU) under the Ministry of Railways.
- Solar Energy Corporation of India Limited (SECI) is a nodal agency of the Central Government for auction of renewable energy projects.
- Navratna status:
- The Government of India grants Navratna status to top-ranked public sector undertakings (PSUs).
- This status allows organisations to make large investments of up to Rs 1,000 crore without approval from the Centre.
- These companies have the freedom to invest up to 30% of their total assets within a year, provided it is less than ₹1,000 crore.
- They can also form joint ventures, tie-ups, and set up subsidiaries abroad.
- For a company to be granted Navratna status, it must already have Miniratna Category I status and be listed under Schedule A of CPSEs.
Topic: Indian Economy/Financial Market
10. Indian economy grew by 6.7% in the April-June quarter, which is lower than the RBI's estimate.
- On August 30, as per the report of the Ministry of Statistics and Programme Implementation, the Indian economy grew by 6.7% in real terms during the April-June quarter of the financial year 2024-25.
- This growth rate is lower than the Reserve Bank of India's (RBI) forecast of 7.1%.
- India had recorded a growth rate of 8.2% during the same period last year.
- In terms of nominal GDP, the growth rate for the April-June quarter of 2024-25 was 9.7%, while it was 8.5% in the same quarter of the previous fiscal.
- The RBI has projected GDP growth of 7.2% for the full financial year 2024–25 during its recent monetary policy meeting.
- The central bank had forecast growth of 7.1% for the first quarter, with subsequent quarterly projections setting growth at 7.2% for the second quarter, 7.3% for the third quarter, and 7.2% for the fourth quarter.
- India's GDP grew by an impressive 8.2% in the financial year 2023-24, allowing it to maintain its position as the fastest-growing major economy.
- The International Monetary Fund (IMF) in July raised its forecast for India's 2024 growth to 7%.
- The World Bank also revised its forecast for India's GDP growth in 2024-25, raising it by 20 basis points to 6.6% from its earlier estimate of 6.4%.
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