Topic: Committees/Commissions/Task forces
1. Ashwini Vaishnaw will be chairperson of recently formed advisory committee for Semicon India.
- Rajeev Chandrasekhar will be the vice-chairperson of the committee.
- The advisory committee will meet at least once in three months and its term is one year. It will be reconstituted after one year.
- The committee also consists of senior government officials, academicians, industry experts and domain experts.
- Semicon India:
- It is a ₹72,000-crore project. It was approved by the union cabinet in December 2021.
- It aims to develop India into a global leader in semiconductor manufacturing, design and innovation.
2. India has achieved 99% of its marine products exports target for 2021-22.
- India’s marine products exports stood at $7.74 billion during 2021-22.
- Commerce Ministry has fixed the $7.809-billion marine products export target for 2021-22.
- US, China (2nd) and Japan (3rd) are the top three markets for India’s marine exports.
- US is top market for seafood exports for the previous 11 years.
- Arya.ag (a grain commerce platform) has joined UN Global Compact (UNGC) India.
- UN Global Compact (UNGC):
- It is the world’s largest corporate responsibility initiative. It is a non-binding pact. It is voluntary. It was formed in 2000.
- It requires members to carry out business as per 10 principles and to take steps to achieve SDGs.
Topic: Indian Economy
3. RBI kept repo rate unchanged and maintained accommodative monetary policy stance.
- The monetary policy committee (MPC) has decided to keep the repo rate and reverse repo rate unchanged.
- The repo rate remained unchanged at 4 % for the 11th time while the reverse repo rate remains unchanged at 3.35 %.
- MSF rate and Bank rate remained unchanged at 4.25 %.
- RBI has projected that retail inflation will rise to 5.7 % from 4.5 % projected earlier for FY23.
- RBI has reduced its GDP growth rate forecast from 7.8 % to 7.2 % for FY23.
- Repo rate is the interest rate at which the RBI provides short-term money to banks.
- Reverse Repo Rate is the interest rate at which the RBI absorbs liquidity from banks.
4. SEBI formed a committee under the chairmanship of its former member, G Mahalingam.
- SEBI formed a committee to examine and provide recommendations for improving governance norms at stock exchanges and other market infrastructure institutions (MIIs).
- G Mahalingam, a former full-time member of SEBI, will chair the six-member committee.
- The Committee has to make recommendations on measures for strengthening the role played by the governing board and committees of MIIs.
- In addition, the panel will review the requirements for the appointment, role, and responsibility of board directors and Key Managerial Persons (KMPs).
- Securities and Exchange Board of India (SEBI):
- SEBI was set up in 1988 and given statutory status in 1992. Its headquarters is located in Mumbai.
- It is a regulator of the securities market in India and aims to protect the interests of investors in securities.
- Madhabi Puri Buch is the current chairperson of SEBI.
Topic: Indian Economy
5. WMA limit for states and UTs has been lowered from Rs 51,560 crore to Rs 47,010 crore.
- Ways and Means Advances (WMA) limit was earlier increased by RBI to Rs 51,560 crore due to COVID-19 related uncertainties.
- The increased WMA limit was in effect until March 31, 2022. The reduced WMA limit has come into effect from April 1, 2022.
- RBI's decision to return to earlier WMA limits and timelines for Over Draft (OD) for state governments/Union Territories (UTs) is as per recommendations by Advisory Committee on WMA to State Governments.
- Advisory Committee on Ways and Means Advances to State Governments (Chairman: Sudhir Shrivastava) was set up by RBI in August 2019.
- Government of India’s WMA limit for the first half of financial year 2022-23 has been kept at Rs 1,50,000 crore.
6. RBI has started Standing Deposit Facility (SDF) at the interest rate of 3.75%.
- SDF has been kept at 25 basis points below the repo rate (4%) and Marginal Standing Facility (MSF) has been kept at 25 basis point above the repo rate (4%).
- As per RBI, SDF is an additional tool for absorbing liquidity without any collateral.
- RBI said SDF will take place of fixed rate reverse repo (FRRR) in the form of the floor of LAF corridor. RBI has kept FRRR at 3.35%.
- RBI has said that as of now, the scheduled commercial banks need not activate countercyclical capital buffer (CCyB).
- Banks may keep CCyB as Common Equity Tier 1 (CET 1) capital or other fully loss absorbing capital only.
- CCyB amount may be between 0 to 2.5% of the total risk weighted assets of the banks. CCyB indicators are given below.
- Credit-to-GDP gap
- Incremental credit-deposit ratio for 3 years
- Industry outlook assessment index
- Interest coverage ratio
Topic: Banking System
7. Super app "Union nxt" has been launched by Union Bank of India under its digital initiative "Sambhav".
- The bank is planning to invest Rs 1,000-crore under digital initiatives in the financial year 2022-23.
- The super app UnionNXT will reduce the need to visit branches physically.
- Union Bank of India will bring all the banking services on the Union nxt super app.
- Union Bank of India:
- It is a government-owned bank founded in 1919.
- Its CEO is Rajkiran Rai G. It is headquartered in Mumbai.
Topic: Regulatory Bodies/Financial Institutions
8. IRDAI may reduce Rs 100 crore initial capital limit for starting an insurance venture.
- IRDAI Chairman Debasish Panda said that it will request the government for this purpose.
- He also said that IRDAI will also focus on proposals such as Bima Mitras and lowering the compliance burden for insurance companies.
- IRDAI has also asked three loss-making public sector general insurers to provide business plans.
- The names of these insurers are National Insurance Company, Oriental Insurance Company and United Insurance Company.
Topic: Indian Economy
9. ADB has projected that India’s GDP will grow by 7.5% and 8% in FY2022 and FY2023, respectively.
- In its Asian Development Outlook (ADO) 2022, ADB has projected that the growth rate in South Asia will decline to 7% in 2022.
- ADB has also projected that the growth rate in South Asia will increase to 7.4% in 2023.
- Asian Development Bank (ADB) has estimated that Asia’s economies will grow by 5.2% in 2022 and 5.3% in 2023.
- Services PMI has increased from 51.8 in February to 53.6 in March.
- In March, finance and insurance sectors were the best performing sectors. Real estate and business services were the worst performers.
- Asian Development Outlook (ADO):
- It is a report of ADB, which is annually published in March/April. It covers most countries in Asia.
- An update to ADO is published in September. Brief supplements to ADO are published in July and December.
- Global Economic Prospects by World Bank Group and World Economic Outlook by International Monetary Fund are two other important economic reports.