1. CCI has given approval to the acquisition of the entire shareholding in AirAsia (India) Private Limited (Air Asia India) by Air India Ltd (AIL).
- Air India, an indirect wholly-owned subsidiary of TSPL, will acquire entire the equity share capital of Air Asia India.
- At present, TSPL holds 83.67% of the equity share capital of Air Asia India.
- Air Asia India operates under the brand name “AirAsia”. It is a joint venture between TSPL and Air India Investment Limited (AAIL).
- Competition Commission of India (CCI):
- CCI was formed on 14 October 2003 under the Competition Commission Act, 2002.
- It aims to eliminate practices that affect competition in the Indian market and protect the interests of the consumers.
- Current Chairperson: Ashok Kumar Gupta
Topic: Reports and Indices
2. National Statistical Office (NSO) released fourth annual report on the basis of PLFS carried out during July 2020-June 2021.
- The annual report of the Periodic Labour Force Survey (PLFS) for July 2020 to June 2021 showed the unemployment rate, as per usual status, declined from 4.8% in 2019-20 to 4.2% now.
- NSO data released on 14 June 2022 showed labour indicators recorded a sharp, all-round improvement in July 2020-June 2021 compared with the last three years.
- As per the current weekly status, the unemployment rate declined from 8.8% to 7.5% in 2020-21.
- The unemployment rate of 4.2% in 2020-21 is the lowest since the first PLFS. First PLFS had showed an unemployment rate of 6.1% in 2017-18.
- Labour Force Participation Rate (LFPR) was the highest in four years at 39.3% in 2020-21. Worker Population Ratio (WPR) was at 36.3% in 2020-21.
- The unemployment rate was higher for males (3.9%) in rural areas than for females (2.1%).
- In urban areas, the unemployment rate for females (8.6%) was higher than for males (6.1%).
- While the overall employment situation improved, there was a rise in low-quality, unpaid work.
- There was an increase in the unpaid self-employed category to 17.3% in 2020-21 and in rural unpaid employment to 21.3% in 2020-21.
- As per PLFS data, the share of the labour force engaged in agriculture continued to rise in 2020-21. It increased to 46.5%.
- The rise in the share of agricultural employment was recorded more for urban areas than rural areas.
- About PLFS:
- National Statistical Office (NSO) launched the Periodic Labour Force Survey (PLFS) in April 2017.
- Three Annual PLFS Reports were released on the basis of data collected in PLFS during July 2017- June 2018, July 2018-June 2019 and July 2019-June 2020.
- Definitions of Key Employment & Unemployment Indicators & Other Terms:
- Labour Force Participation Rate (LFPR): Percentage of persons in labour force (i.e. working or seeking or available for work) in the population.
- Worker Population Ratio (WPR) & Unemployment Rate (UR): WPR is the percentage of employed persons in the population (WPR). UR is the percentage of persons unemployed among the persons in the labour force.
- Activity Status- Usual Status: When the activity status is determined on the basis of the reference period of last 365 days preceding the date of survey, it is known as the usual activity status of the person.
- Activity Status- Current Weekly Status (CWS): The activity status determined on the basis of a reference period of last 7 days preceding the date of survey is known as the current weekly status (CWS) of the person.
- Principal Activity Status: The activity status on which a person spent relatively long time (major time criterion) during 365 days preceding the date of survey, was considered the usual principal activity status of the person.
- Subsidiary Economic Activity Status: The activity status in which a person in addition to his/her usual principal status, performs some economic activity for 30 days or more for the reference period of 365 days preceding the date of survey, was considered the subsidiary economic status of the person.
Topic: Indian Economy/Financial Market
3. Wholesale price-based inflation in May 2022 reached a new high of 15.88 %, due to increased food and crude oil prices.
- Wholesale Price Index based Inflation was 15.08 % in April and 13.11 % in May of last year.
- Prices of mineral oils, crude petroleum, and natural gas, food, non-food metals, chemicals & chemical products, and food goods have risen significantly in May 2022 as compared to the same month of the previous year.
- Since April 2021, WPI inflation has been in double digits for the 14th month in a row and has been in the upper trajectory for three straight months.
- Inflation in food articles stood at 12.34% in May, as prices of vegetables, wheat, fruits, and potatoes showed a sharp rise compared to a year ago.
- Inflation rates in May on certain items are:
Egg, Meat and Fish
Fuel and Power basket
Crude petroleum and Natural gas
- In May, retail inflation was 7.04 %, exceeding the RBI’s inflation target for the fifth month in a row. Retail inflation is measured by CPI.
- The RBI has raised repo rate by 40 basis points in May and 50 basis points in June to deal with high inflation.
- Last week, the central bank boosted its inflation forecast for 2022-23 by 100 basis points to 6.7%.
Topic: Banking System
4. Federal Bank has been named official banking partner of mRube platform.
- ‘mRube’ is the electronic trading platform of Rubber board. It connects buyers and sellers and enables trade at competitive prices.
- The bank will offer overdraft facility to rubber sellers at no extra charge for the initial six months, to facilitate advance payment.
- Federal Bank:
- It is an Indian private sector bank with headquarters in Aluva, Kochi.
- Federal Bank’s CEO is Shyam Srinivasan. Its tagline is your perfect banking partner.
5. RBI has asked the banks to conduct a review of finance provided by them to Government-owned entities.
- Further, it has asked banks to place a report on the status of their compliance with RBI’s instructions relating to “Bank finance to Government owned entities” within three months.
- RBI has asked banks to place the comprehensive report before their boards within 3 months.
- Banks were also not complying with RBI’s instructions on monitoring of end use of funds in respect of their financing of infrastructure/housing projects of government-owned entities.
6. Central government has nominated three industrialists and an academician to RBI central board.
- The names of the three industrialists are Anand Gopal Mahindra, Venu Srinivasan, and Pankaj Ramanbhai Patel.
- The name of the academician is Ravindra H. Dholakia. They (three industrialists and one academician) have been nominated by central government as part-time non-official Directors on the Central Board of RBI.
- Their nomination is for four years with effect from June 14 or until further orders, whichever is earlier.
- After these appointments, RBI’s central board now has 15 members.
- About nominated members:
- Anand Gopal Mahindra is part of Mahindra Group.
- Venu Srinivasan is Chairman Emeritus, TVS Motor Company.
- Pankaj Ramanbhai Patel is Chairman and Managing Director of Zydus Lifesciences.
- Ravindra H. Dholakia, a former Professor, Indian Institute of Management, Ahmedabad. He is also a former member of the Monetary Policy Committee.
- About RBI’s central board:
- It governs RBI’s affairs. It is appointed by the Government of India in keeping with the Reserve Bank of India Act for a period of four years.
- Its constitution is given below.
- Official Directors (Full-time): Governor and not more than four Deputy Governors
- Non-Official Directors:
- Nominated by Government: ten Directors from various fields and two government Official
- Others: four Directors - one each from four local boards
Topic: Reports and Indices
7. Tamil Nadu has become largest state in terms of the outstanding portfolio of microfinance loans as per MFIN Micrometer Q4 FY21-22.
- Tamil Nadu has replaced West Bengal as the largest state in terms of the outstanding portfolio of microfinance loans.
- As per MFIN Micrometer Q4 FY21-22 report, the gross loan portfolio (GLP) of Tamil Nadu as of March 31, 2022 is ₹36,806 crore.
- Tamil Nadu is followed by Bihar (₹35,941 crore) and West Bengal (₹34,016 crore).
- At the end of Q3FY22, West Bengal had the highest outstanding portfolio of loans at ₹32,880 crore.
- The top 10 States constitute 82.4 percent of the total gross loan portfolio (GLP).
- 12 banks held the largest share of the portfolio in micro-credit. NBFC-MFIs are the second-largest providers of micro-credit.
- MFIN Micrometer Q4 FY21-22 is a quarterly report. This is the 41st issue of the Micrometer report. It is published by Microfinance Institutions Network (MFIN).
- MFIN is an Association of Non-Bank Finance Company Micro Finance Institutions (NBFC-MFIs).
Topic: Regulatory Bodies/Financial Institutions
8. PFRDA has allowed NPS subscribers to change investment choices four times a year.
- National Pension System (NPS) subscribers are now allowed to change asset allocation four times in a financial year.
- Four changes each will be permitted for both Tier-I and Tier II accounts.
- Prior to this, PFRDA has allowed subscribers to change their asset allocation only two times a year.
- Under NPS, it is possible for subscribers to decide their allocation among four asset classes.
- These asset classes are equity, government securities, corporate bonds and alternative assets.
Topic: Indian Economy/Financial Market
9. Russia has become India’s second-biggest supplier of oil.
- It has recently overtaken Saudi Arabia. Iraq remained India’s biggest supplier of oil in May 2022.
- Saudi Arabia is now the third biggest supplier of oil to India.
- Indian refiners bought over 16% of all their oil imports from Russia in May.
- India is the world's third-biggest oil-importing and consuming nation.
- India is the world's third-largest consumer of oil after US and China. It imports over 85% of its consumption requirement.
Topic: World Economy
10. US Federal Reserve has raised rates by 0.75 percentage points.
- This is the biggest rate hike made by the US central bank since 1994.
- The central bank has raised the policy rate to a range of 1.5% to 1.75%.
- Federal Reserve Board Chairman: Jerome Powell
- Federal Reserve projected a slowing economy and rising unemployment in the months to come.