Banking, Financial and Economic Awareness

2020-05-18

1. Second part of special economic package announced

  • Second part of special economic package has been announced by Finance Minister.
  • Finance minister said that farmers will be supported through extra emergency credit of Rs 30,000 crore through NABARD.
  • NABARD will also provide Rs 90,000 crore. Rs 2 lakh crore credit will also be provided through Kisan Credit Card by the centre.
  • Finance Minister has also announced supply of food grains to all migrants for two months, complete portability of ration cards by March 31, 2021 and implementation of one nation one ration card.
  • Finance Minister has also extended credit link subsidy scheme of 2017 till March 2021 and given 2% interest subvention to loans availed under Mudra Shishu loan.
  • As per the announcement made by finance minister, affordable rental housing scheme will be launched for migrant workers and a national floor-wise wage rate has been proposed for making wage rates uniform across all states. 
  • Finance Minister also announced sanctioning of 25 lakh new Kisan Credit Cards and creation of 7,200 new SHG groups.

2. Rs 1 lakh crore farm infrastructure fund announced by Finance Minister

  • Under third part of special economic package, Finance Minister has announced that government will create Rs 1 lakh crore farm infrastructure fund.
  • NABARD will finance and manage the farm infrastructure fund.
  • The Finance Minister has also announced that the government will launch Rs 10,000 crore worth scheme to help two lakh enterprises in micro-food processing sector.

(Source: The Hindu)

  • As announced by the Finance Minister, government will also create Rs 15,000 crore worth Animal Husbandry Infrastructure Fund.
  • PM Matsya Sampada Yojana was launched with an allocation of Rs. 20,000 crore.
  • All fruits and vegetables to be brought under Operation Greens.

3. Fourth part of special economic package announced

  • Finance Minister has announced fourth part of the special economic package, which focuses on industry, space and aviation.
  • Fourth part of package focuses on defence production in India, banning import of weapons and increasing foreign direct investment in defence manufacturing from 49% to 74%.
  • Government has started commercial mining of coal on a revenue sharing basis and allowed private companies to explore coal. Now, private companies can bid for coal blocks and sell them in open market.

(Source: The Hindu)

  • Government has also removed airspace restrictions and increased involvement of private sector in space by opening planetary exploration for private companies.
  • In the power sector, the government has announced that power distribution companies in UTs will be privatized.

4. Fifth part of special economic package announced

  • Finance Minister has also announced the fifth part of special economic package, which mainly focuses on reforms.
  • In the fifth part, the government has increased MGNREGA allocation by Rs 40,000 crore and suspended fresh insolvency proceedings for one year period.
  • Government has also increased minimum threshold limit for initiation of insolvency proceedings from Rs 1 lakh to Rs 1 crore.
  • As per the announcement made by Finance Minister, Indian public companies can directly list securities in allowed foreign jurisdictions.
  • Private companies listing non-convertible debentures will not be considered as listed companies.

(Source: The Hindu)

  • Government has announced that it will bring new policy for Public Sector Enterprises and announce strategic sectors where PSEs are needed.
  • At least one PSE will be kept in strategic sectors. All PSEs in nonstrategic sectors will be privatized.
  • Government has also announced that companies act will be decriminalised in matters of minor offences.
  • In health sector, government has announced that it will increase public expenditure on health and take measures to seal with future pandemics such as setting up of infectious disease hospital blocks.
  • In education sector, government has announced Swayam Prabha DTH channels and launching of PM eVidya programme, Manodarpan initiative and National framework Literacy and Numeracy Mission.
  • Government has also increased borrowing limits for states from 3% to 5% for 2020-21.

5. Government extends lockdown 4.0 till 31 May

  • The government has extended lockdown for the fourth time, and it will continue till 31 May.
  • During lockdown 4.0, red zones will be opened to economic activities and all non-essential movements will be prohibited in containment zones.
  • The government has announced the first lockdown on 24 March.

(Source: PIB)

  • The government has not opened air transport and metro train during lockdown 4.0. It has allowed buses and passenger vehicles within states and between states, except in containment zones.
  • Schools, restaurants, cinema halls, and shopping malls will not be opened.
  • District authorities will demarcate buffer zones and containment zones.

 

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