Topic: Indian Economy/Financial Market
1. Wholesale price inflation increased to 3.36% in June from 2.6% in May according to Commerce and Industry Ministry data.
- June inflation, measured by wholesale price index, was highest in 16 months.
- The WPI Food Index-based annual rate of inflation (y-o-y) increased to 8.68% in June from 7.4% in May.
- Inflation in vegetables increased to 38.8% in June 2024 from May’s nine-month highest level of 32.4%. Inflation in pulses increased 21.6% in June 2024.
- Producers’ inflation based on Wholesale Price Index increased to 3.4% in June as compared to 2.6% in May.
- On a month-on-month basis, wholesale prices increased 0.4% in June.
- The Food Index rose 2.5% and more than four times the 0.6% rate recorded in May. This was the fastest so far this calendar year.
- In June, however, the cost of manufactured goods increased by 0.14% over May. In the last four months, this was the slowest rise.
- For the fourth consecutive month, fuel and power inflation was sequentially negative at -1.93%.
Topic: RBI
2. RBI will revisit policy stance around September 2024, as per SBI’s “Ecowrap” report.
- The US inflation rate dropped by 0.1% month over month in June 2024.
- This brings the 12-month rate down to 3% and lays the groundwork for a September rate decrease by the Federal Reserve.
- In the Bank's "Ecowrap" report, Soumya Kanti Ghosh, Group Chief Economic Adviser at SBI, said, "We, therefore, feel RBI will revisit the policy stance round that time."
- In the April 8, 2022, bi-monthly monetary policy review, RBI had changed its stance from “accommodative” to “to remain accommodative while focussing on withdrawal of accommodation”.
- In its bi-monthly monetary policy review on June 08, 2022, RBI further tweaked its stance to “to remain focused on withdrawal of accommodation.”
- RBI has not changed its policy stance since then (bi-monthly monetary policy review on June 08, 2022).
Topic: Banking System
3. 'Safety Ring' has been introduced by Punjab National Bank (PNB) to improve online and mobile banking security.
- A new security feature called "Safety Ring" has been added to PNB’s online and mobile banking platforms.
- This feature was added by PNB in reaction to the rise in cybercrimes.
- In the case that fraudsters get unauthorized access, this feature offers an extra degree of protection to avoid any losses.
- The safety ring is an optional feature. Customers can use the online closure feature to set a daily transaction restriction for term deposits (TDs) or to use an overdraft facility on TDs up to a certain limit.
- The customer's limit should be the combined digital channels limit, up to which the customer can use TD's overdraft facility or shut their TD.
- Using all digital channels, TD cannot be closed, withdrawn, or used for loans above the customer-specified limit due to the Safety Ring.
Topic: Indian Economy/Financial Market
4. Funds raised through ECBs decreased by around 35% to $8.296 billion in the first two months of FY25.
- This decrease is in comparison to $12.847 billion during the same period last year.
- It's possible that Indian companies delayed their plans for fundraising until after the general elections.
- In May 2024, REC used the ECB's "Approval Route" to raise $300 million.
- Indian companies raised $4.012 billion in May 2024 and $4.284 billion in April 2024.
- External Commercial Borrowings (ECBs):
- ECBs are commercial loans, which are raised by eligible resident entities from recognised non-resident entities.
- These borrowings adhere to requirements such maximum all-in-cost cap, allowed and prohibited end-uses, minimum maturity, etc.
Topic: Indian Economy/Financial Market
5. In Q1 FY25, India transitioned from a net exporter to a net importer of steel.
- In Q1FY25 (April-June), India was a net importer of steel. Shipments to India surpassed exports by 0.6 million tons during this quarter.
- Due to China's competition and the decline in global demand, finished steel exports fell steadily during Q1FY25 (April–June).
- On the other hand, imports increased continuously.
- In the previous year, India was a net exporter of 0.7 million tons (MT) of steel.
- According to the Steel Ministry, 1.9 MT of steel were imported in Q1FY25.
- From 1.4 MT in the previous year, this was a 30% annual growth.
- Steel exports in Q1FY25 were 1.3 MT. Compared to the 2.1 MT of the previous year, this was a 38% year-over-year reduction.
- Steel imports in June were 0.55 MT. This was a 24% decrease from 0.72 MT of May.
- June's export of 0.34 MT was 20% less than the 0.43 MT recorded in May.
- June's export of 0.34 MT was 32% less than the 0.5 MT exported in June 2023.
- Finished steel production rose 1.2% sequentially in June to 12.1 MT from 11.923 MT in May.
- About 35.4 MT of finished steel were consumed in Q1FY25, an increase of 15% year over year. It was 30.833 MT at the time last year.
Topic: RBI
6. Revised Master Directions on Fraud Risk Management for the Regulated Entities has been issued by the RBI.
- Based on the review of the earlier Master Directions, Circular and emerging issues, these revised Master Directions have been prepared.
- These Master direction are principle-based. They strengthen the role of the Board in overall governance as well as oversight of fraud risk management in REs.
- These Directions has also emphasized the need for instituting robust internal audit and controls framework in the Regulated Entities (REs).
- These Revised Master Directions ask the lenders to set up Data Analytics and Market Intelligence Unit for the purpose of strengthening risk management systems.
- These Revised Master Directions also require lenders to make sure compliance with the natural justice principles in a time-bound manner before classifying Persons/Entities as fraud.
- These revised Master Directions are applicable to lenders/REs such as:
- Commercial banks (including Regional Rural Banks) and All India Financial Institutions
- Cooperative banks (Urban Cooperative Banks / State Cooperative Banks / Central Cooperative Banks)
- Non-Banking Finance Companies (including Housing Finance Companies)
- These revised Master Directions (MDs) have also been made applicable to Rural Cooperative Banks.
- With the issuance of three MDs on “Fraud Risk Management” for the three categories of lenders, existing 36 Circulars on the subject stand withdrawn, as per RBI.
Topic: Appointments
7. Robert J Ravi appointed CMD of BSNL by the Government.
- Robert Gerard Ravi has been appointed as the new Chairman and Managing Director of Bharat Sanchar Nigam Limited (BSNL) by the government from July 15.
- Extension of service has been denied to outgoing PK Purwar, who was serving as CMD of BSNL and MTNL since July 2019.
- This will be Ravi's second stint at BSNL. Prior to this, he had served as additional general manager at the state-run firm for nearly six years.
- Presently, he is working as Deputy Director General in the Department of Telecommunications.
Topic: Indian Economy/Financial Market
8. India's exports exceeded USD 200 billion in the first quarter (April–June) of 2024–25.
- The government has said that it is optimistic about reaching its USD 800 billion annual target.
- India's total exports, which include both merchandise and services, reached $65.47 billion in June, up 5.4% from the previous year, according to data from the commerce ministry.
- From $34.32 billion to $35.20 billion, merchandise exports increased.
- From $27.79 billion to $30.27 billion, services exports increased.
- In June, overall imports increased by 6.3% to $73.47 billion compared to the same period last year.
- India recorded record exports of $778 billion in the fiscal year 2023–24, slightly more than the $776.3 billion in the previous year.
- There has been a substantial rise in exports to nations including Singapore, China, Russia, Iraq, and the United Arab Emirates.
- The UK, Australia, Saudi Arabia, the Netherlands, and South Africa are some other important export destinations.
- From $898.0 billion in 2022–2023 to $853.8 billion in 2023–2024, India's overall imports decreased.
- The trade deficit has significantly improved as a result. The trade deficit narrowed from $121.6 billion to $75.6 billion over the same period.
Topic: Taxation
9. In FY25, net direct tax collections so far grew 19.5% to Rs 5.74 lakh crore.
- According to data released by the Income Tax department, the net direct tax collection for the financial year 2024-25 rose to Rs 5.74 lakh crore till July 11, 2024, showing a growth of 19.54% compared to the previous fiscal.
- Out of the ₹5.74 lakh crore, ₹3.46 lakh crore came from personal income tax, ₹2.10 lakh crore from corporate tax, ₹16,634 crore from securities transaction tax (STT), and ₹1,413 crore from 'other taxes'.
- Gross direct tax collection increased by 23.24% to Rs 6.45 lakh crore.
- As of July 11, 2024, out of the ₹6.45 lakh crore gross tax collection, ₹3.61 lakh crore came from personal income tax, ₹2.65 lakh crore from corporate tax, ₹16,634 crore from STT, and ₹1,426 crore from 'other taxes'.
- Meanwhile, income tax refund stood at Rs 70,902 crore, which is 64.49% higher than the corresponding figure for FY24.
- Out of the ₹70,902 crore in refunds, ₹55,063 crore was refunded to corporate taxpayers, ₹15,826 crore to personal income taxpayers, and ₹13 crore to 'other taxes'.
Topic: Summits/Conferences/Meetings
10. From November 20 to 24, 2024, India will host the inaugural World Audio Visual Entertainment Summit (WAVES) in Goa.
- India is among the world's largest film producing countries, according to Goa Chief Minister Pramod Sawant.
- Goa CM said WAVES will be the major occasion to shape the future of India’s media and entertainment industry.
- Information and Broadcasting Minister Ashwini Vaishnaw said that WAVES will mark a critical milestone in the growth of India's entertainment sector.
- WAVES will be a leading platform for discussion, trade cooperation, and innovation in the Media & Entertainment (M&E) sector.
- The Summit will bring together innovators, stakeholders, and leaders in the M&E industry.
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