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MARCH (1st March-10th March)
1. Climate change could put 4.5% of India’s GDP at risk: McKinsey Global
Institute
A report published by the McKinsey Global Institute (MGI) said climate change and
global warming may hit India’s GDP within a decade.By 2030, temperatures in India
could reach such levels that outdoor workers may be forced to cut short their daylight
working hours to beat the lethal heat waves.
Keypoints-
The MGI report has estimated that the impact of global heating on outdoor work
and the resultant loss in productivity could put 2.5% to 4.5 of India’s GDP at risk
annually.
As of 2017, in India, heat-exposed work produces about 50% of GDP, drives
about 30% of GDP growth and employs about 75% of the labour force, some 380
million people.
2. Kotak proposes ‘six-three-three’ formula for public sector banks
The chairman and managing director of the Kotak Mahindra Bank, Uday Kotak
proposed diluting government stake to 50% in three of the 12 state-owned banks and
running the other three under public-private partnership.
3. Only KYC verified investors to transact in MFs-AMFI circular
An AMFI circular will put an end to the old practice of accepting application forms and
cheques alongside KYC forms. Investors will have to first complete their KYC and their
status will have to appear as ‘verified’ with the KRA (KYC Registration Agency) such as
CVL or CAMS.
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4. OECD lowers India's FY21 GDP growth to 5.1 pc on coronavirus concerns
Global agency OECD lowered its India's GDP growth forecast to 5.1 per cent from the
earlier projection of 6.2 per cent for 2020 on concerns of impact of deadly coronavirus
on the domestic as well as the global economy.
5. Nabard infuses ₹1.46 lakh crore in rural banking system in 2019-20
National Bank for Agriculture and Rural Development has infused ₹1.46 lakh crore in
the rural banking system during the current fiscal. Nabard has been extending financial
support to the banks operating in rural areas to help them deploy their resources
effectively for meeting the credit needs of rural people, including farmers.
So far in the current fiscal, the development finance institution has extended ₹66,397
crore in short-term credit and ₹6,704 crore long-term credit to rural cooperative
banks.Regional rural banks have availed ₹14,141 crore in short-term credit and ₹8,417
crore in long-term credit.
6. Bank of Maharashtra to raise up to Rs 600 crore via bonds
State-run Bank of Maharashtra will raise up to Rs 600 crore by issuing of Basel III-
compliant unsecured, redeemable non-convertible tier II bonds of base issue of Rs 200
crore with green shoe option of Rs 400 crore aggregating to Rs 600 crore bonds on a
private placement basis.
To comply with Basel-III Capital Regulations, banks need to improve and strengthen
their capital planning processes. These norms are being implemented to mitigate
concerns on potential stresses on asset quality and consequential impact on
performance and profitability of banks. The Indian banking system has been
implementing Basel III standards in phases since April 1, 2013.
.
Bank Of Maharashtra
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HQ- Pune
Tagline- One Family One Bank
7. World Bank announces up to $12 billion in immediate funds for coronavirus
The World Bank announced an initial $12 billion (9.38 billion pounds) in immediate
funds to assist countries grappling with the health and economic impacts of the
coronavirus virus outbreak that has spread quickly from China to some 80 countries.
8. Supreme Court quashes RBI ban on cryptocurrency trade
The Supreme Court quashed an order by the Reserve bank of India (RBI) banning
financial services firms from trading in virtual currency or cryptocurrency. Its decision
comes after hearing several petitions challenging RBI's April 2018 order imposing a ban
on financial firms or individuals in India from trading in cryptocurrencies. While the order
revoked the ban on illegal cryptocurrency trade, it is worth noting that the government
already prepared a draft bill that seeks to prohibit mining, holding, selling, trade,
issuance, disposal or use of cryptocurrency in the country. Under the draft bill, all the
aforementioned activities can be punished with a fine or imprisonment up to 10 years, or
both in some cases.
9. Crisis at YES Bank highlights governance risk in banking sector: Fitch
The Reserve Bank imposed a moratorium on the capital-starved Yes Bank, capping
withdrawals at Rs 50,000 per account and superseded the board of the private sector
lender with immediate effect. According to Fitch rating, the RBI superseding the board
of Yes Bank casts light on governance risks in India's banking sector.
Keypoints-
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Fitch said there is a risk that the already poor operating environment for the
banking sector could suffer further impairment if the government's efforts to
tackle problems in the bank fail to provide reassurance to depositors and
investors.
The global rating agency said it is also possible that the domestic wholesale debt
markets may experience another crisis of confidence, resulting in a tightening of
financing conditions.
The bank subsequently struggled to address its capitalisation issues, against a
background of sluggish economic growth and a tougher financing environment.
As per RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent
stake for Rs 2,400 crore in the crisis-ridden Yes Bank under a government-approved
bailout plan.
10. U.N. trade body predicts big coronavirus hit to foreign direct investment
The UNCTAD report released indicated The coronavirus outbreak will cause global
foreign direct investment (FDI) to shrink by 5%-15% from previous forecasts, resulting in
only marginal growth in 2020-21, with automotive, airlines and energy industries hit
hardest. UNCTAD said that the negative impact of the virus would likely get worse.
Keypoints-
Of 100 multinational companies which UNCTAD tracks as a global economic
barometer, many are slowing capital expenditure in affected areas and 41 have
so far issued profit warnings, which will hit reinvested earnings, a major driver of
FDI.
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Most of the profit warnings are from consumer-facing companies, indicating that
slowing demand, for now, is expected to have more direct effects on earnings
than production or supply chain disruptions.
A wider sample of the top 5,000 listed companies showed earnings forecasts for
fiscal year 2020 have been revised down in the last month by an average 9%
due to the new virus.
The automotive industry (-44%), airlines (-42%) and energy and basic materials
(-13%) have been hit hardest.
In January, UNCTAD estimated that global FDI flows in 2019 were $1.39 trillion
and expected them to rise by around 5% in 2020. Now it thinks they may hit the
lowest level since the financial crisis in 2008 should the epidemic spread and
continue throughout the year.
East Asia will bear the brunt of lower FDI inflows. China has been the second-
largest FDI recipient country, therefore a significant decline of FDI flows to the
country in the short term will affect the level of global FDI flows.
United Nations Conference on Trade and Development
HQ: Geneva, Switzerland
Founded: 30 December 1964
11. SBI likely to buy 49 per cent stake in Yes Bank for Rs 2,400 crore: RBI
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The RBI's draft 'Yes Bank Ltd Reconstruction Scheme', 2020, said that the SBI has
expressed willingness to invest in Yes Bank. It is likely to pick up a 49 per cent stake
and pump in equity capital to revive the ailing private sector lender.
Keypoints-
As per preliminary estimates, SBI may fork out roughly Rs 2,400 crore in lieu
of the 49 per cent stake but cannot reduce its holding below 26 per cent for
three years from the date of capital infusion.
As part of the proposed scheme, Yes Bank’s authorised capital will be altered
to Rs 5,000 crore and paid-up capital to Rs 4,800 crore.
For 49 per cent stake, SBI's proposed capital infusion will be roughly Rs
2,400 crore at not less than Rs 10 per share (premium of Rs 8 per share), as
per RBI's draft reconstruction scheme.
Yes Bank's Additional Tier 1 capital (roughly Rs 8,800 crore) issued under
Basel III framework will be written off permanently and no account holder will
be entitled for compensation from SBI.
12.IIT Mandi Signs Deal with NABARD for Setting up Three FPOs in HP
The Indian Institute of Technology (IIT), Mandi & Enabling Women of Kamand (EWOK)
Society has inked a tripartite deal with the National Bank For Agriculture and Rural
Development for setting up three Farmer Producer Organization in Mandi, Himachal
Pradesh. NABARD has sanctioned an amount of Rs 35 lakhs to EWOK Society and IIT
Mandi for 3 FPOs to be established in the next 3 years.
13. Paytm arm gets IRDAI’s brokerage licence
Paytm subsidiary Paytm Insurance Broking has secured a brokerage licence from
sector regulator Insurance Regulatory and Authority of India (IRDAI). The company
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plans to offer insurance products across categories including automotive, health and
life.
14. Fitch lowers India’s economic growth forecast for FY20 to 4.9% from 5.1 %
Fitch Ratings has lowered India’s GDP forecast to 4.9% for the fiscal year –FY20 (2019-
2020) ending March 31,2020. It cuts the rate from 5.1% predicted earlier, due to
coronavirus, weak domestic demand and supply disruptions .
15. NMDC, IIT Hyderabad sign pact to support deep-tech start-ups
NMDC Ltd and Indian Institute of Technology (IIT) Hyderabad have signed an
agreement to support start-ups through a collaborative joint incubation programme and
set up an innovation and incubation centre.
NMDC will contribute Rs 10 crore for the five-year joint incubation programme and
intends to support at least 15 start-ups.
16. Pradhan Mantri Jan Dhan Yojana helps raise women’s ownership of bank
accounts to 77% in 2017, says MicroSave Consulting (MSC) report
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Consulting firm MicroSave Consulting (MSC) in a report titled 'The real story of women's
financial inclusion in India' said the country has succeeded in reducing the gender gap
in financial inclusion by 14 percentage points in three years (2014-17).
Keypoints-
Pradhan Mantri Jan Dhan Yojana has helped in raising women’s ownership of
bank accounts from 43 per cent in 2014 to 77 per cent in 2017,
Neighbouring countries like Bangladesh and Pakistan, are far behind with just 36
per cent and 7 per cent share in account ownership by women, respectively.
The report, however, pointed out that some accounts are still inactive.
17. Tata AIA Life Insurance's 'Bachhpan Ka Rakshakaran' initiative offers football
coaching to under-privileged girls
Tata AIA Life Insurance, through its unique initiative 'Bachhpan ka Rakshakaran', in
association with Oscar Foundation, aims to infuse interest in education for the under-
privileged girls, using football coaching as a medium. This, in turn, is expected to
counter issues like school dropouts, child labour, child marriage, drug abuse and
vulnerability to petty crime and makes Tata AIA Life their Rakshakarta.
18.Paytm and hyderabad metro tieupfor QR- based ticket
Hyderabad Metro Rail Ltd has launched Paytm’s QR-code-based metro ticketing
system. The new service will enable commuters to travel seamlessly and avoid queues
to buy tokens at the metro stations.
19.SBI to tap cash budget method of assessment for corporates
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State Bank of India (SBI) has initiated “Cash Budget Based Assessment (CBBA)” of
Fund Based Working Capital (FBWC) limits for units and intends to focus on refinancing
better rated corporates in a bid to achieve minimum 11.50 per cent year-on-year growth
in whole bank advances in FY2021. CBBA of limits has been initiated for assessment of
the FBWC limits for units with total FBWC exposure of more than ₹50 crore from the
banking system.
20. RBL, Zomato and Mastercard to launch new co-branded credit cards
Mastercard is banking big on its co-branded card in partnership with Zomato and RBL,
in a bid to tap the potential of online food delivery market, which has been expanding
beyond big cities.
RBL bank
HQ- Mumbai
Tagline- Apno ka Bank
21.ICICI Prudential AMC ties up Saraswat Co-op bank to tap rural potential
ICICI Prudential AMC has tied up with Saraswat Co-operative Bank, the largest in the
urban co-operative banking space in India, to distribute its products with the bank’s
customers. The tie-up Saraswat Co-operative Bank will offer investment products of
ICICI Prudential Mutual Fund to its customers, through its 280 branches, spread across
six States.
22. Female Labour-force Participation in India Dropped from 34% in 2006 to 24.8%
in 2020: Study
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According to UNGC India study, India is the only country among the 153 surveyed
countries where the economic gender gap is larger than the political gap. Its female
labour-force participation has declined from 34% in 2006 to 24.8% in 2020.
Keypoints
If women participation raised in the labour force same as men then it can boost
India’s GDP (Gross Domestic Product) by 27%.
Globally, 38.7% of employed women are working in agriculture, forestry and
fisheries, but only 13.8% of landholders are women.
23.UN report pegs India’s trade impact at $348 million for coronavirus
According to a UN report, the trade impact of the coronavirus epidemic for India is
estimated to be about 348 million dollars and the country figures among the top 15
economies most affected as slowdown of manufacturing in China disrupts world trade.
Keypoints-
Disruption of world trade could result in a 50 billion dollar decrease in exports
across global value chains.
The most affected sectors include precision instruments, machinery, automotive
and communication equipment.
Among the most affected economies are the European Union (USD 15.6 billion),
the United States (USD 5.8 billion), Japan (USD 5.2 billion), South Korea (USD
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3.8 billion), Taiwan Province of China (USD 2.6 billion) and Vietnam ( USD 2.3
billion).
The trade impact for India is less as compared to other economies such as EU,
the US, Japan and South Korea. Trade impact for Indonesia is 312 million
dollars.
For India, the trade impact is estimated to be the most for the chemicals sector at
129 million dollars, textiles and apparel at 64 million dollars, automotive sector at
34 million dollars, electrical machinery at 12 million dollars, leather products at 13
million dollars, metals and metal products at 27 million dollars and wood products
and furniture at 15 million dollars.
24. At USD 83.5 bn, India has 3rd highest trade-related illicit financial flow
globally: Report
According to US-based think tank Global Financial Integrity (GFI) report, India has the
third-highest trade-related illicit financial flow among over 135 countries with a whopping
USD 83.5 billion escaping the government's tax net owing to trade-based money
laundering tactics.
The GFI classifies as illicit flows funds which are illegally earned, transferred, and/or
utilised across an international border. The primary sources of illicit flows include grand
corruption, commercial tax evasion, and transnational crime.
Keypoints-
According to the report titled "Trade-related Illicit Financial Flows in 135
Developing Countries: 2008-2017 for 2017, five countries with the largest
identified value gaps were China at USD 457.7 billion, followed by Mexico at
USD 85.3 billion, India at USD 83.5 billion.
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In terms of the value gaps in the bilateral trade between 135 developing
countries and the 36 advanced economies in US dollars, India consistently
ranked among the top ten largest value gaps across the ten-year period
examined.
India registered the 6th largest value gap for the last six years of the ten-year
period, and ranked 6th in terms of the largest average size of the value gaps
among the 135 developing countries over the ten-year period.
The report said a staggering USD 8.8 trillion value gap was identified in trade
between 135 developing countries and 36 advanced economies over the period
of 2008-2017.
25. Freedom in the World 2020 report ranks India among least free democracies
According to a global survey, ‘The Freedom in the World 2020’ India has become one of
the world’s least free democracies.This report ranks India at the 83rd position, along
with Timor-Leste and Senegal. This is near the bottom of the pile among the countries
categorised as “Free”, with only Tunisia receiving a lower score.
Keypoints-
India’s score fell by four points to 71, the worst decline among the world’s 25
largest democracies this year.
The annulment of autonomy and the subsequent shutdown of Kashmir, the
National Register of Citizens and the Citizenship (Amendment) Act,
the crackdown on mass protests have been listed as the main signs of declining
freedom.
India scored 34 out of 40 points in the political rights category, but only 37 out of
60 in the civil liberties category, for a total score of 71, a drop from last year’s
score of 75.
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The report derives its methodology from the Universal Declaration of Human Rights,
adopted by the United Nations General Assembly in 1948. It covers 195 countries,
awarding scores based on political rights indicators such as the electoral process,
political pluralism and participation and government functioning, as well as civil liberties
indicators related to freedom of expression and belief associational and organisational
rights, the rule of law and personal autonomy and individual rights.
26. More than 81% account holders are Women under Stand Up India Scheme
More than 81% account holders under Stand Up India Scheme are women. 73,155
accounts have been opened for women. Rs. 16712.72 crore has been sanctioned for
women account holders and Rs. 9106.13 crore has been disbursed for women account
holders.
Stand-Up India Scheme
Stand Up India Scheme was launched on 5 April 2016 to promote entrepreneurship at
grass root level for economic empowerment and job creation.
This scheme seeks to leverage the institutional credit structure to reach out to the
underserved sector of people such as Scheduled Caste, Scheduled Tribe and Women
Entrepreneurs so as to enable them to participate in the economic growth of nation.
The objective of this scheme is to facilitate bank loans between Rs.10 lakh and Rs.1
crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at
least one woman borrower per bank branch of SCBs for setting up a Greenfield
enterprise.
27. MUDRA: 70% of the total loan borrowers are Women PMJDY
As on 31.01.2020, more than 22.53 crore loans have been sanctioned since launch of
the scheme.Out of this, more than 15.75 crore loans extended to women , thereby 70%
of the total loan borrowers are Women
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Pradhan Mantri MUDRA Yojana (PMMY)
PMMY was launched on April 8, 2015 for providing loans up to 10 lakh to the non-
corporate, non-farm small/micro enterprises. These loans are classified as MUDRA
loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance
Banks, MFIs and NBFCs.
Under the aegis of PMMY, MUDRA has created three products namely 'Shishu',
'Kishore' and 'Tarun' to signify the stage of growth
28. EPFO cuts interest rate to 8.5% for 2019-20 from 8.65%; restored pension
commutation under EPS
The EPFO (Employees Provident Fund Organisation) has declined interest rate on EPF
deposits for 2019-20 to seven years low by 0.15% or 15 basis points fom 8.65% to
8.5%.
29. Swachh Bharat Mission (Grameen) Phase-II has been launched
The Union Minister for Jal Shakti launched Phase II of Swachh Bharat Mission
(Grameen) [SBM (G)]. Phase – II of the SBM(G) will focus on sustaining the gains made
under the programme in last five years in terms of toilet access and usage, ensuring
that no one is left behind. It will ensure that effective solid and liquid waste management
(SLWM) is instituted in every Gram Panchayat of the country.
Keypoints-
It will be implemented from 2020-21 to 2024-25 in a mission mode with a total
outlay of Rs. 1,40,881 crores. Of this Rs. 52,497 crore will be allocated from the
budget of Department of Drinking Water and Sanitation.
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The Solid and Liquid Waste Management (SLWM) component of Open
Defecation Free (ODF) Plus, ODF Plus, will be monitored on the basis of output-
outcome indicators for four key areas: plastic waste management, bio-
degradable solid waste management (including animal waste management),
greywater management and fecal sludge management.
30. Study by Bill and Melinda Gates Foundation and UNICEF indicates significant
improvement in Suvidha, Suraksha & Swabhimaan for rural women due to
SBM(G)
A study ‘Impact of the Swachh Bharat Mission (Grameen) on the convenience, safety
and self-respect of women in rural India’ done by UNICEF and Bill and Melinda Gates
Foundation (BMGF) on the impact of the SBM(G) on rural women shows increased
access to household toilets has led to the improvement in the Suvidha, Suraksha and
Swabhimaan of women in rural India.
Keypoints-
It has surveyed 6,993 women across the 5 states of Bihar, Madhya Pradesh,
Maharashtra, Rajasthan and Uttar Pradesh, in February, 2020.
93% women feel safer from assault by not going out in the open to defecate.91%
women save up to one hour of their day, earlier spent on walking to defecation
sites. 88% of women are proud to own a toilet.