Banking, Financial and Economic Awareness

2020-06-05

1. RBI's Consumer Confidence Survey (CCS) shows fall in CSI and FEI

  • As per RBI's latest CCS, current situation index (CSI) and future expectations index (FEI) have fallen in May 2020.
  • While CSI have fallen from 85.6 in March 2020 to historic low level of 63.7 in May 2020, FEI have sharply fallen from 115.2 in March 2020 to 97.9 in May 2020.
  • The survey was carried out telephonically in 13 major cities between 5 May and 17 May, 2020.
  • RBI's Consumer Confidence Survey (CCS) shows current perceptions and future expectations on following parameters
    • General economic situation
    • Employment scenario
    • Overall price situation
    • Income and spending 
  • Current situation index (CSI) and future expectations index (FEI) are based on average of net responses of the parameters mentioned above.

2. SFBs planning to form separate industry body

  • Small Finance Banks (SFBs) are having plans to form a separate industry body to represent themselves before RBI.
  • As of now, 10 SFBs are members of IBA. Indian Banks' Association (IBA) has represented banking industry from 1946 onwards.
  • Earlier, RBI has launched a scheme, which allows urban co-operative banks to voluntarily convert into small finance banks.
  • Small Finance Banks should lend 75% of credit to priority sectors specified by RBI. This target is 40% for other banks.
  • By planning for a separate body, SFBs are following example of Microfinance Institutions Network (MFIN), which is an industry body comprising of NBFCs that are registered with RBI as MFIs.

3. Real-Time Electricity Market platform launched by IEX

  • Real-Time Electricity Market platform has been launched by Indian Energy Exchange, which is India's largest energy exchange.
  • The platform will have 48 auction sessions in a day. It has a provision for power delivery in 1 hour of bid closure to help discoms in managing demand-supply changes and 24x7 power supplies.
  • Indian Energy Exchange and Power Exchange India are offering Real-Time Electricity Market.

4. World Economic Forum's next annual meeting

  • World Economic Forum's next annual meeting will take place in January 2021 and its theme will be The Great Reset.
  • The meeting will take place in twin-summit format. This involves in person attendance of leaders and virtual dialogue.
  • The meeting takes place annually in January in Davos. The 50th meeting took place in January 21-24, 2020 and next meeting will be 51st.
  • World Economic Forum (WEF):
    • It was founded in January, 1971 by Klaus Schwab.
    • It is headquartered in Cologny, Switzerland.
    • Its motto is “committed to improving the state of the world”.
    • The theme of 50th meeting was Stakeholders for a Cohesive and Sustainable World.

5. Cabinet approves new mechanism for attracting investment in India

  • As part of the approved mechanism, Empowered Group of Secretaries and Project Development Cells will be created in Ministries or Departments of Central Government.
  • Project Development Cell (PDC) will develop investable projects. PDC will be headed by an officer lower in rank than Joint Secretary of ministries of central government. The officer will work under guidance of Cabinet Secretary.
  • The composition of Empowered Group of Secretaries is given below:

 

Chairperson

Cabinet Secretary

Member Convenor

Secretary, Department for Promotion of Industry, and Internal Trade

Members

Secretary, Department of Commerce

Secretary, Department of Revenue

Secretary, Department of Economic Affairs

CEO, Niti Aayog

 

  • The cabinet has also approved the re-establishment of PCIM&H. PCIM&H stands for Pharmacopoeia Commission for Indian Medicine & Homoeopathy.
  • PCIM&H will be established as Subordinate Office under AYUSH Ministry.
  • Two central laboratories will be merged for re-establishment of PCIM&H. They are Pharmacopoeia Laboratory for Indian Medicine (PLIM) and Homoeopathic Pharmacopoeia Laboratory (HPL)
  • As of now, PCIM&H is an autonomous body under AYUSH Ministry. It was established in 2010.
  • Cabinet has also approved proposal to change the name of Kolkata Port as Shyama Prasad Mukherjee Port.

6. World Bank releases a part of its GEP report

  • World Bank has released a part of its Global Economic Prospects (GEP) June 2020 report.
  • As per the report, COVID 19 pandemic will affect economic growth and emerging market and developing economies are more vulnerable.
  • David Malpass, who is the President of World Bank, has said that 60 million people will face extreme poverty.
  • World Bank has also said that lower level of output from advanced economies of the U.S., the Euro Area and China h will affect output from emerging market and developing economies.
  • World Bank releases its Global Economic Prospects (GEP) report semi-annually (twice in a year). The report is on the state of the world economy.

7. Essential Commodities Act 1955 amended

  • Essential Commodities Act 1955 has been amended to remove cereals, pulses, onion and potatoes from the essential commodities list.
  • As per Section 2 (A) of the Essential Commodities Act 1955, essential commodities are commodities listed in schedule of Essential Commodities Act 1955.
  • The act empowers central government for adding or removing commodities in the schedule.
  • The commodities included in this schedule can be grouped into nine groups given below.

 

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