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ARTH Vol 21 (11th JUNE -20th JUNE)

1. RBI sets up 5-member Internal working group headed by P K Mohanty

The Reserve Bank of India (RBI) has set up a 5-member internal working group

(IWG) headed by Prasanna Kumar (PK) Mohanty to review ownership guidelines

and corporate structure for private banks in light of recent developments in the

banking sector.

Keypoints-

• The RBI has asked the panel to review the guidelines and licensing

regulations regarding ownership, promoters’ holding, requirement of

dilution, control and voting rights in private banks.

• The group will examine and review the eligibility criteria for individuals or

entities which/who apply for a banking license.

• Similarly, after issuance of the license at the initial/licensing stage, the Panel

will look into the existing provisions relating to the promoter’s shares and

make appropriate recommendations.

• The committee will also examine the present regulations on holding of

financial subsidiaries through a non-operative financial holding company

(NOFHC) and suggest solutions of migrating all banks to a uniform

regulation.

• This recent development of reviewing the promoter’s stake in private sector

banks is significant as the promoters of Kotak Mahindra Bank had a stake in

the out-of-court settlement between the RBI and the bank. The RBI limited

the voting rights to 15 %, allowing promoters to hold a 26 % stake in Kotak

Bank.

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• According to the current rules the promoter’s share will be reduced to 40% for

the three years after the bank commences operations, to 10% for 10 years

and 15% for 15 years.

2. India ranked 43rd on IMD's World Competitiveness Index

India continues to remain ranked 43rd on an annual World Competitiveness Index

with some traditional weaknesses like poor infrastructure and insufficient education

investment keeping its ranking low.

Keypoints-

The index is compiled by Institute for Management Development (IMD).

• Singapore has retained its top position on the 63-nation list.

• Denmark has moved up to the second position (from 8th last year),

Switzerland has gained one place to rank 3rd, the Netherlands has retained its

4th place and Hong Kong has slipped to the fifth place (from 2nd in 2019).

• The US has moved down to 10th place (from 3rd last year), while China has

also slipped from 14th to 20th place. Among the BRICS nations, India is

ranked second after China, followed by Russia (50th), Brazil (56th) and

South Africa (59th).

• India was ranked 41st on the IMD World Competitiveness Ranking, being

produced by the business school based in Switzerland and Singapore every

year since 1989, but had slipped to 45th in 2017 before improving to 44th in

2018 and then to 43rd in 2019.

• While its overall position has remained unchanged in the 2020 list, it has

recorded improvements in areas like long-term employment growth, current

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account balance, high-tech exports, foreign currency reserves, public

expenditure on education, political stability and overall productivity.

• However, it has moved down in areas like exchange rate stability, real GDP

growth, competition legislation and taxes.

• India continues to struggle on the list and the recent country rating

downgrade by Moody's reflects the uncertainties regarding the economy's

future.

• In ranking, the emphasize the traditional weaknesses of India -- poor

infrastructure, an important deficit in education investment, and a health

system that does not reach everybody.

• According to the report, for India to follow the path of China, it must stress its

intangible infrastructure.

• With the exception of Singapore, the Philippines, Taiwan and the Korean

Republic, most Asian economies dropped in rankings this year.

• The reason for the Asian economies' less stellar performance as a region, this

year is partly the result of the trade frictions between China and the US,

particularly because these economies are highly dependent on trade with

China.

• About Singapore, its position is largely driven by the relative ease of setting

up business, availability of skilled labour and its cutting-edge technological

infrastructure.

• In the ASEAN countries included in the survey, only Singapore and Thailand

have a positive performance in the effectiveness of the health

infrastructure.

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3. Around 45 mln pushed into global food insecurity- FAO report

According to a recent report, titled Policy Brief: The Impact of COVID-19 on Food

Security and Nutrition by the Food and Agriculture Organization (FAO),almost 45

million people were pushed into acute food insecurity since February 2020

because of the novel coronavirus disease (COVID-19) pandemic.

Keypoints-

• Almost 33 million of those who will be pushed into food insecurity reside in

South and Southeast Asia, with the remainder in Sub-Saharan Africa.

• The pandemic and measures to curb it may result in $8.5 trillion being shaved

off the global economy in the next two years.

• Over 49 million may fall into extreme poverty as well, with the most-affected

region being, again, Sub-Saharan Africa. Measures to curb the disease,

including lockdowns in several parts of the world, have disrupted entire food

supply chains.

• Deteriorating employment conditions due to COVID-19 have led to this

situation.

• Slowing harvests in some parts of the world left millions of seasonal

workers without livelihoods, while constraining transport of food to markets.

• Even before the pandemic, more than 820 million were already identified as

chronically food insecure in 2019.

4. RBI relaxes norms for the deployment of ATMs by white-label players

The Reserve Bank of India (RBI) has relaxed the deployment norms of automated

teller machines (ATMs) by white-label players, who will now not need to put up

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thousands of units every year. The central bank is for manageable annual targets, a

major departure from the stiff run-rates set under the licence terms in 2012.

Keypoint-

• The central bank has not announced a policy change, but industry sources said it

had been conveyed to deployers that they would now be evaluated on an

annual basis with more realistic targets and the kind of cities (from tier-I to

tier-VI) in which ATMs were put up. These targets are confidential and player-

specific.

• Of the eight WLATM players, Tata Communications Payment Solutions is

the largest deployer with 8,290 ATMs,.

White-label ATMs (WLATMs).

ATMs set up, owned, and operated by non-banks are called white-

label ATMs (WLATMs). Non-bank ATM operators are authorised under the Payment

and Settlement Systems Act, 2007, by the RBI. Deployments by white-label ATM

(WLATM) firms have been poor at 23,597 units, seven years after they began

operations. This is way off the 1,000-25,000 ATMs that would have been added

annually by each operator based on the schemes they had opted for.

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5. RBI releases discussion paper on 'Governance in Commercial Banks

With an objective to improve the quality of financial intermediaries, the Reserve

Bank of India (RBI) released a discussion paper on ‘Governance in Commercial

Banks in India' for public comments. The objective of the discussion paper is to align

the current regulatory framework with global best practices. The lender also said

that improving the quality of governance in financial intermediaries is an

important determinant of efficiency in the allocation of resources, protection of

depositors’ interest and maintaining financial stability.

Keypoints-

• The discussion paper aims to empower the board of directors to set the

culture and values of the organisation, recognise and manage conflicts of

interest, set the appetite for risk and manage risks within the appetite and

improve the supervisory oversight of senior management.

• Empower the assurance functions through various interventions.

• To achieve clear division of responsibilities between the board and the

management. RBI said that a management functionary who is not a

promoter or major shareholder can be a whole-time director (WTD) or chief

executive officer (CEO) of a bank for 15 consecutive years. Thereafter, the

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individual shall be eligible for re-appointment as WTD or CEO only after the

expiration of three years.

• During this three-year period the individual shall not be appointed or

associated with the bank in any capacity, either directly or indirectly,

advisory or otherwise.

• To build a robust culture of sound governance practice, professional

management of banks and to adopt the principle of separating ownership

from management, it is desirable to limit the tenure of the whole-time

directors (WTD) or chief executive officers (CEO).

• 10 years is time limit for a promoter or major shareholder of a bank as WTD

or CEO of the bank to stabilise its operations and to transition the

managerial leadership to a professional management.

• On the date of issuance of the guideline or directions on the matter by the

Reserve Bank, banks with WTDs or CEO who have completed 10 or 15 years

shall have two years or upto the expiry of the current tenure, whichever is

later, to identify and appoint a successor.

6. NSDC prepares a platform to ensure speedy skilling of migrant returnees

The National Skill Development Corporation (NSDC) has prepared a platform to

ensure speedy skilling of migrant returnees in 116 most-affected districts, where

states are struggling to rehabilitate livelihoods. The list of districts correspond to the

‘Atmanirbhar districts’ planned by the Centre across Uttar Pradesh, Bihar, Madhya

Pradesh, Jharkhand, Odisha, and Rajasthan. The government has directed that work

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under the Mahatma Gandhi National Rural Employment Guarantee Act be fast-

tracked in these states, along with more loans for small businesses.

7. FDI inflows into India may dip sharply in 2020: UNCTAD

According to the United Nations Conference on Trade and Development (UNCTAD),

Foreign direct investment (FDI) into India may decline sharply in 2020 because of

the impact of the coronavirus pandemic and the consequent lockdown measures,

supply chain disruptions and economic slowdown even as FDI inflows to Asia’s third

largest economy jumped over 20% to $51 billion in 2019.

Keypoints-

• According to the latest World Investment Report 2020 by UNCTAD, India

jumped from 12th position in 2018 to 9th position in 2019 among the world’s

largest FDI recipient.

• In South Asia, FDI is also expected to contract sharply. In India, the biggest

FDI host in the sub-region, with more than 70% of inward stock, the number

of greenfield investment announcements declined by 4% in the first quarter,

and M&As contracted by 58%.

• However, UNCTAD said India’s economy could prove the most resilient in

the region. FDI to India has been on a long-term growth trend. Positive, albeit

lower, economic growth in the post-pandemic period and India’s large market will

continue to attract market-seeking investments to the country.

• The report said India’s most sought-after industries, which include

professional services and the digital economy, could see a faster rebound as

global venture capital firms and technology companies continue to show

interest in India’s market through acquisitions.

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• Investors concluded deals worth over $650 million in the first quarter of 2020,

mostly in the digital sector.

• According to the report, global FDI flows are forecast to decrease by up to

40% in 2020, from their 2019 value of $1.54 trillion. This would bring FDI

below $1 trillion for the first time since 2005.

• In addition, FDI is projected to decrease by a further 5% to 10% in 2021 and to

initiate a recovery in 2022.

• Investment flows are expected to slowly recover starting 2022, led by global

value chains (GVCs) restructuring for resilience, replenishment of capital

stock and recovery of the global economy.

8. Urjit Patel, former RBI governor, appointed chairman of NIPFP

• Former governor of Reserve Bank of India (RBI) Urjit Patel has been

appointed as the chairman of the New Delhi Based economic think tank

National Institute of Public Finance and Policy (NIPFP) for a period of four

years for a four year term commencing June 22, 2020.

• The governing body of NIPFP met under the outgoing chairman Vijay Kelkar

where Patel’s name was cleared.

• The chairman’s role is advisory in nature and he does not interfere in day

today functioning of the institution. He chairs the board meetings which are

held at least three to four times in a year.

• The governing body of NIPFP comprises of three representatives of the

Ministry of Finance, one representative of the Niti Aayog, one

representative of the Reserve Bank of India, three representatives of

sponsoring state governments, three distinguished economists, three

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heads of sister research institutions, and members of other sponsoring

agencies and invitees.

9. India joins GPAI as founding member

India joined the Global Partnership on Artificial Intelligence (GPAI) as a founding

member to support the responsible and human-centric development and use of AI.

GPAI is an international and multi-stakeholder initiative to guide the responsible

development and use of AI, grounded in human rights, inclusion, diversity,

innovation, and economic growth.

Keypoints-

• With this, India has joined the league of leading economies including the US, the

UK, EU, Australia, Canada, France, Germany, Italy, Japan, Mexico, New

Zealand, Republic of Korea, Singapore to launch the global partnership.

• This is a first initiative of its kind to evolve better understanding of the

challenges and opportunities around AI using the experience and diversity of

participating countries.

• To achieve this goal, the initiative will look to bridge the gap between theory

and practice on AI by supporting cutting-edge research and applied

activities.

• In collaboration with partners and international organisations, GPAI will bring

together leading experts from industry, civil society, governments, and

academia to collaborate to promote responsible evolution of AI and will also

evolve methodologies to show how AI can be leveraged to better respond to the

present global crisis around Covid-19.

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10. Modi government to expand coverage of this start-up scheme- over 10 lakhs

to benefit

• The government will expand the coverage of its PM Van Dhan Yojana from the

current 18,000 SHGs to 50,000 Van Dhan SHGs.

• Van Dhan Start-ups, established under the scheme initiated by TRIFED under

the Ministry of Tribal Affairs has emerged as a source of employment

generation for tribal gatherers and forest dwellers and also the home-bound

labour and artisans.

• The aim of the Start-ups scheme is to treble the coverage to 10 lakh tribal

gatherers through the Covid-19 relief plan of the Ministry of Tribal Affairs.

• 1205 Tribal Enterprises have been established to provide employment

opportunities to 3.6 lakh tribal gatherers and 18000 Self-help groups in 22

States.

• The tribal enterprises have been able to create market linkages, transforming

tribal gatherers into entrepreneurs.

• States like Nagaland and Rajasthan have been the beneficiaries of this

scheme. It has ensured that the proceeds from the sales of these value-added

products go to the tribals directly.

• A TRIFED website was also commissioned for a trial run till 30 June (before

the formal launch by the Union Minister for Tribal Affairs) and a procurement

platform will be launched by 30 July 2020.

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PM Van Dhan Yojana

The Van Dhan Scheme is an initiative of the Ministry of Tribal Affairs and TRIFED. It

was launched on 14th April, 2018 and seeks to improve tribal incomes through

value addition of tribal products.

The scheme will be implemented through Ministry of Tribal Affairs as Nodal

Department at the Central Level and TRIFED as Nodal Agency at the National

Level. At State level, the State Nodal Agency for MFPs and the District collectors

are envisaged to play a pivot role in scheme implementation at grassroot level.

Locally the Kendras are proposed to be managed by a Managing Committee (an

SHG) consisting of representatives of Van Dhan SHGs in the cluster.

11.FIEO for fastening process of engagement with EU to seal free-trade pact

expeditiously

Exporters' body FIEO has urged Commerce and Indstry to fast-track the process of

engagement with the European Union on the long-pending free-trade agreement

(FTA) with India and conclude it in an expeditious manner. India and the EU are

negotiating a comprehensive FTA, officially dubbed as the Bilateral Trade and

Investment Agreement (BTIA), but the talks are stalled since May 2013 due to

differences on several matters.The EU is the largest market of our exports accounting

for 18 per cent of our exports. Vietnam is a close competitor of India in the market as

our exports to the EU.

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12. Sebi panel suggests tweaks to enhance regulator's enforcement function

The enforcement function of the Securities and Exchange Board of India (Sebi),

which is one its most critical, is set for an overhaul as a high-level committee led

by A R Dave, a retired Supreme Court judge, submitted a 424-page report aimed at

the enforcement mechanism.

Keypoints-

• The committee has considered various issues pertaining to the enforcement

mechanism of the board (Sebi) and made recommendations thereon to make

it more robust and efficient.

• The recommendations seek to introduce tactical, strategic, and systemic

changes to the enforcement process to improve capabilities of Sebi in

protecting investors and indicting defaulters.

• The panel has identified four areas for enhancing the enforcement function-

these are intermediary regulations, recovery of dues, quantification of ill-

gotten gains, and synergies between the securities and insolvency laws.

• The implementation of the panel recommendation would be akin to

upgrading the operating system for Sebi.

• The panel added that the processes followed by Sebi, under the

Intermediaries Regulation, 2008, are “unjustifiably drawn-out”.

• They have underscored the need to conclude a proceeding against an

intermediary in a timely manner. The intermediary could be a stock

exchange, depository, clearing corporation, mutual fund, or broker.

• Sebi is required to adhere to principles of natural justice in the course of its

proceedings against an intermediary. However, such adherence cannot be

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meant to extend the application to such an extent that permits holding the

system hostage at the cost of compromising the very interests of investors.

• It has called for the process leading to the issuance of a final order against

an intermediary to be faster.

• On the issue of recovering dues such as fees, penalties, or disgorgement

amounts, the mechanism followed by Sebi’s recovery officer needs several

modifications, given existing provisions don’t recognise concepts like clubbing

of income or e-auctions.

• On the area of disproportionate gains made by a violator, the panel has said

Sebi could make use of financial economics.

• The panel has cited examples of techniques used in jurisdictions such as

the US, acknowledging how difficult it is to quantify potential losses caused

to a shareholder due to securities fraud.

• The committee has examined the insolvency, recovery, and securities laws

jurisprudence of India and abroad, and suggested suitable changes in the

code to ensure the insolvency law is not used as a refuge by defaulters,

thereby protecting the interest of investors.

13. Union Minister launches R&D Portal “SATYABHAMA”

Union Minister for Coal, Mines and Parliamentary Affairs, Pralhad Joshi has

launched R&D Portal “Science and Technology Yojana for Aatmanirbhar Bharat in

Mining Advancement (SATYABHAMA)”. The portal has been launched for the prpose

of Science and Technology Programme Scheme of Ministry of Mines.

Keypoints-

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• The newly launched portal will increase efficiency as well as effectiveness in

the implementation of the Scheme as it allows online submission of project

proposals along with monitoring of the projects and utilization of

funds/grants.

• This R&D Portal SATYABHAMA has been designed,

developed and implemented by National Informatics Centre (NIC), Mines

Informatics Division.

• It has been integrated with NGO Darpan Portal of NITI Aayog. It also accepts

the researchers’ progress reports and Final Technical Reports of the

projects in the electronic format.

14.FATF: Indian officials attend virtual EAG plenary meet

Indian officials, including representatives from enforcement agencies attended the

virtual 32nd special Eurasian Group on Combating Money Laundering and

Financing of Terrorism (EAG) plenary meeting, under the aegis of the Financial Action

Task Force. The EAG is a regional body comprising nine countries: India, Russia,

China, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and

Belarus. It is an associate member of the FATF.

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15. SIDBI signs pact with urban affairs ministry to implement PM SVANidhi for 50 lakh street

vendors

PM SVANidhi is a central scheme fully funded by the ministry with the objective to

facilitate working capital loans to street vendors, thus enabling them to emerge

self-reliant after the impact of the Covid-19 pandemic and revive their livelihood

activity through formal access to credit.

KEYPOINTS-

• MoHUA has engaged SIDBI as the implementation agency for PM Street

Vendors’ AtmaNirbhar Nidhi.

• The Ministry of Housing and Urban Affairs (MoHUA) has signed a pact with

Small Industries Development Bank of India (Sidbi) to implement PM Street

Vendor's AtmaNirbhar Nidhi (PM SVANidhi) - a Special Micro-Credit Facility

for Street Vendors.

• The Ministry of Housing & Urban Affairs (of MoHUA) signed a Memorandum

of Understanding (MoU) with SIDBI to this effect.

• According to the MoU terms, SIDBI will implement the PM SVANidhi scheme

under the guidance of MoHUA.

• It will also manage the credit guarantee to the lending institutions through

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

• A customised and integrated IT platform will be developed and maintained

to provide end-to-end solutions, including documentation of all the

processes.

• A portal and a mobile app would also be made available to ensure

engagement and information flow between Urban Local Bodies (ULBs),

lending institutions, digital payment aggregators, and other stakeholders.

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• SIDBI will leverage the network of lending Institutions like Scheduled

Commercials Banks (SCBs), Non-Bank Finance Companies (NBFCs), Micro

Finance Institutions (MFIs), Co-operative Banks, Small Finance Banks

(SFBs) and Regional Rural Banks (RRBs) for the implementation of the credit

scheme.

• SIDBI will also provide a Project Management Unit (PMU), comprising of

domain experts in training/ capacity building, project and platform

management, Information Education and Communication (IEC), banking,

NBFC and MFI sectors for the period of PM SVANidhi, which is up till March

2022.

• Earlier, the MoHUA had launched the PM SVANidhi on June 1 for providing

affordable working capital loan to street vendors to help them resume their

livelihoods that have been adversely affected due to coronavirus lockdown.

• This scheme targets to benefit over 50 lakh street vendors. Under the

Scheme, the vendors can avail a working capital loan of up to Rs 10,000

which is repayable in monthly installments in tenure of one year.

• An interest subsidy @ 7 per cent per annum will be credited to the bank

accounts of beneficiaries through direct benefit transfer on a quarterly basis

on timely or early repayment of the loans. There will be no penalty on the

early repayment of loans.

• The scheme promotes digital transactions through cashback incentives up to

an amount of Rs 100 per month. Moreover, the vendors can achieve their

ambition of going up on the economic ladder by availing the facility of escalation

of the credit limit on timely or early repayment of the loan.

16.NIRF India Rankings 2020

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In the National Institutional Ranking Framework list of 2020, released by the

Human Resource Development Minister Maulana Azad Institute of Dental

Sciences, Delhi has topped the list of dental institutes in the county. This is the first

time that dental colleges have been ranked under NIRF. The Indian Institute of

Technology (IIT) Madras has topped the list of higher education institutes. IISc

Bengaluru has clinched second and IIT-Delhi has been ranked third in the HRD

ministry’s national ranking of higher instittes.

Miranda House of Delhi University has secured the top rank among colleges in

India for the fourth consecutive year in the NIRF Rankings 2020. The AIIMS New

Delhi has been named the foremost medical sciences institute in the country.

National Law School of India University, Bengaluru has topped the list for ‘Law’

Discipline.

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NIRF RANKING

The National Institutional Ranking Framework (NIRF) was launched by the Minister

of Human Resource Development on 29th September 2015.

This framework outlines a methodology to rank institutions across the country.

The parameters broadly cover

o Teaching, Learning and Resources,

o Research and Professional Practices,

o Graduation Outcomes,

o Outreach and Inclusivity and

o Perception.

NIRF rankings 2020 has been given under 9 categories: Overall, Universities,

Engineering, Medical, Management, Law, Architecture, Pharmacy and Colleges,

Dentist.

17.Nature Index 2020

India has ranked twelfth, globally in science research output as per the recently-

released Nature Index table 2020. This nature index is not linked with nature

conservation. It has only mentioned the rankings of research institutes in natural

and physical science. The top five positions have gone to the United States of

America, China, Germany, United Kingdom and Japan.

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Keypoints-

• The Nature Index is a database of author affiliation information collated from

research articles published in an independently selected group of 82 high-

quality science journals.

• It serves as an indicator of high-quality research in the Natural and Physical

Sciences.

• The database is compiled by Nature Research, a division of the international

scientific publishing company Springer Nature that publishes academic

journals.

• The index provides a close to the real-time proxy of high-quality research

output and collaboration at the institutional, national and regional level.

18. Union Finance Ministry proposes to decriminalise host of minor offences under 19

legislations

The Finance Ministry has proposed to decriminalise a host of minor offences,

including those relating to cheque bounce and repayment of loans, in as many as

19 legislations to help businesses tide over the crisis caused by the coronavirus

outbreak. The 19 legislations include Negotiable Instruments Act (cheque bounce),

SARFAESI Act (repayment of bank loans), LIC Act, PFRDA Act, RBI Act, NHB Act,

Banking Regulation Act and Chit Funds Act.

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Keypoints-

• Actions taken for decriminalisation of minor offences are expected to go a,”

long way in improving ease of doing business and helping unclog the court

system and prisons.

• It would also be a significant step in the Government of India’s objective of

achieving ‘Sabka Saath, Sabka Vikas and Sabka Vishwas’.

• Based on the feedback, the Department of Financial Services will take a call

as to a particular section should remain a criminal offence or that should be

suitably modified to decriminalise to improve ease of doing business.

• The other legislations listed in the document for consultation for suitable

amendments to decriminalise minor offences are Insurance Act, Payment

and Settlements Systems Act, NABARD Act, State Financial Corporations

Act, Credit Information Companies (Regulation) Act, and Factoring

Regulation Act.

• The Actuaries Act, the General Insurance Business (Nationalisation) Act,

the Banning of Unregulated Deposit Schemes Act, the DICGC Act and the

Prize Chits and Money Circulation Schemes (Banning) Act are also among

the legislations.

19. India's forex reserves cross $500 billion-mark

According to the data released by the Reserve Bank of India (RBI), India’s forex

reserves have now crossed the $ 500 billion mark. The reserves rose to $ 501.7

billion, marking an increase of $ 8.22 billion in a week. Reserves had surged $3.43

billion to a fresh all-time high of $493.48 billion in the week-ended May 29. Forex

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reserves consist of foreign currency assets, gold reserves, special drawing rights

and reserves in IMF. Of these, foreign currency assets are the biggest component

followed by gold.

20.Sahakar Mitra Scheme

The Union Ministry for Agriculture has launched Sahakar Mitra Scheme on Internship

Programme (SIP). The scheme is an initiative by the National Cooperative

Development Corporation (NCDC), the cooperative sector development finance

organization.

Keypoints-

• It aims to help cooperative institutions access innovative ideas of young

professionals while the interns will gain experience of working in the field to

be self-reliant.

• The scheme is expected to assist cooperative institutions to access new and

innovative ideas of young professionals while the interns gain experience

of working in the field giving the confidence to be self-reliant.

• Professional graduates in disciplines such as Agriculture and allied areas,

IT etc. will be eligible for an internship. Professionals who are pursuing or have

completed their MBA degrees in Agri-business, Cooperation, Finance,

International Trade, Forestry, Rural Development, Project Management etc.

will also be eligible.

• Each intern will get financial support over a 4 months internship period.

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21.Aizawl’s Rajiv Gandhi Stadium to be upgraded as KISCE under Khelo

India Scheme

The Union Sports Minister Kiren Rijiju announced that Aizawl’s Rajiv Gandhi

Stadium will be upgraded as Khelo India State Centre of Excellence under

the Khelo India Scheme. The Ministry plans to establish one KISCE in each

state and union territory, with an effort to create a robust sporting ecosystem in

the entire country. This will be a platform for multiplying existing talents in the

region towards India’s dream of excellence in the Olympics.

22.AIIB approves USD 750 million loan to India for Covid-19 response

Beijing-based Asian Infrastructure Investment Bank (AIIB) said it has approved a

USD 750 million (around Rs 5,714 crore) loan to India to help the government

strengthen its battle against the adverse impact of Covid-19 on poor and

vulnerable households. The budgetary support will go toward bolstering economic

aid for businesses, including for the informal sector, expanding social safety nets

for the needy, and strengthening the country’s health care systems. The current

loan will be the second for India under AIIB’s Covid-19 Crisis Recovery Facility

(CRF).While AIIB does not have a regular instrument for policy-based financing, the

Bank is extending such financing on an exceptional basis under the CRF to

support its members through projects cofinanced with the World Bank or the

Asian Development Bank.

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23.Odisha gets only 1.2 per cent of Centre’s irrigation aid

While the State has the potential to bring more area under micro-irrigation scheme

of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY- PDMC) to enhance water

use efficiency, its coverage in last five years has been only around 29,000

hectares (ha) of land. The Ministry of Agriculture and Farmers’ Empowerment has

made an allocation of `45 crore for Odisha under Centrally sponsored ‘Per Drop

More Crop’ component of PMKSY- PDMC for 2020-21 financial year, which is only

1.2 per cent of the Central budget of `3,445 crore under the scheme. States like

Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu have cornered `400

crore each.

Odisha has got `45 cr by Ministry of Agriculture under PMKSY- PDMC

Better performing states AP, Karnataka, Maharashtra and TN have cornered `400

crore each. So far, micro irrigation funds have been released to Andhra Pradesh and

Tamil Nadu for Rs 616.14 crore and for Rs 478.79 crore, respectively, through

NABARD. The area covered under these projects is 1.021 lakh hectare in Andhra

Pradesh and 1.76 lakh hectare in Tamil Nadu. During the last five years (2015-16 to

2019-20), an area of 46.96 lakh hectare has been covered under micro irrigation

through PMKSY-PDMC.

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24. Asian Development Outlook- The recent report

According to a new set of forecasts from the Asian Development Bank (ADB),

developing Asia will barely grow in 2020 as containment measures to address the

coronavirus disease (COVID-19) pandemic hamper economic activity and weaken

external demand. In a regular supplement to its annual flagship economic

publication, the Asian Development Outlook (ADO) 2020).

Keypoints-

• ADB forecasts growth of 0.1% for the region in 2020. This is down from the

2.2% forecast in April and would be the slowest growth for the region since

1961.

• Growth in 2021 is expected to rise to 6.2%, as forecast in April. Gross

domestic product (GDP) levels in 2021 will remain below what had been

envisioned and below pre-crisis trends.

• Excluding the newly industrialized economies of Hong Kong, China; the

Republic of Korea; Singapore; and Taipei,China, developing Asia is forecast

to grow 0.4% this year and 6.6% in 2021.

• Risks to the outlook remain on the downside.

• East Asia is forecast to grow 1.3% in 2020—the only subregion to experience

growth this year—while growth in 2021 will recover to 6.8%. Growth in the PRC

is forecast at 1.8% this year and 7.4% in 2021, compared to the April estimates

of 2.3% and 7.3%, respectively.

• Hit hard by COVID-19, South Asia is forecast to contract by 3.0% in 2020,

compared to 4.1% growth predicted in April. Growth prospects for 2021 are

revised down to 4.9% from 6.0%.

• India’s economy is forecast to contract by 4.0% in fiscal year (FY) 2020,

ending on 31 March 2021, before growing 5.0% in FY2021.

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• Central Asia’s economic activity is expected to contract by 0.5% compared to

the 2.8% growth forecast in April due to trade disruptions and low oil prices.

Growth is forecast to recover to 4.2% in 2021.

• Inflation for developing Asia is forecast at 2.9% in 2020, down from a forecast of

3.2% in April, reflecting depressed demand and lower oil prices. In 2021,

inflation is expected to ease to 2.4%.

25. Jal Shakti bats for control of 50% finance panel grants for rural local bodies

The Ministry of Jal Shakti has called for the Finance Commission grants for rural

and urban local bodies, currently under the administrative control of the Finance

Ministry, to be placed with three different ministries. The FC-XV had recommended a

Rs 90,000-crore grant for local bodies in 2020-21. Of this, Rs 29,250 crore is for

urban local bodies and Rs 60,750 crore is for rural local bodies. The grant for rural

local bodies is further bifurcated as 50 per cent basic or untied grant, and 50 per

cent tied grant (for sanitation and maintenance of ODF status; and supply of

drinking water, rain water harvesting and water recycling). Ministry of Jal Shakti

has proposed to get control of the 50 per cent tied grant.

Keypoints-

• Currently, Finance Commission grants for urban and rural local bodies come

under the Finance Ministry which, on the recommendations of the Ministry

of Panchayati Raj, releases grants for Panchayati Raj Institutions (PRIs) to

state governments in two instalments. The same is credited by the state

governments to their respective rural local bodies. However, the Ministry of Jal

Shakti now has proposed a new mechanism.

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• The ministry further suggested that other half of the Finance Commission

Grants to PRIs should be placed with the Ministry of Panchayati Raj.

• GPDP stands for Gram Panchayat Development Plan, which are supposed to

be prepared by the Gram Panchayats to achieve the goal of economic

development and social justice.

• FC Grants to ULBs (urban local bodies) may be placed with M/o Housing &

Urban Development. ULBs to prepare their five-year plan with reform targets

and funding should be linked to specific outputs/performance.”

• The ministry pegged the requirement of an amount of about Rs 82,000 crore as

a part of “sectoral allocations for infrastructural development” to achieve

drinking water security.

JAL JEEVAN MISSION

Jal Jeevan Mission, a central government initiative under the Ministry of Jal Shakti,

aims to ensure access of piped water for every household in India. Earmarking Rs

3.5 trillion for Jal Jeevan Mission, the Centre and states would work towards it in

coming years. The mission’s goal is to provide to all households in rural India safe

and adequate water through individual household tap connections by 2024.The

Har Ghar Nal Se Jal programme was announced by Finance Minister Nirmala

Sitharaman in her Budget 2019-20 speech. This programme forms a crucial part of the

Jal Jeevan Mission. The programme aims to implement source sustainability

measures as mandatory elements, such as recharge and reuse through grey

water management, water conservation, and rain water harvesting. The Jal Jeevan

Mission will be based on a community approach to water. According to the

government, the mission will include information, education and communication

as key components. The mission is meant to create a people's movement for water,

making it everyone’s priority.

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26. Narendra Modi launches ‘Garib Kalyan Rojgar Abhiyan’ for migrant workers

The government has launched an employment scheme for migrant workers ‘Garib

Kalyan Rozgar Abhiyaan’, to give a boost to development in rural areas. Talent has

returned from cities during the lockdown, those whose labour and skills were behind

the rapid growth of cities will now boost development of villages with the help of

this scheme. It is an endeavour of his government that workers get jobs near their

home and help in development of villages.

Keypoints-

• The Garib Kalyan Rozgar Abhiyaan was launched by Mr. Modi via video

conference in Katihar village in Bihar in the presence of Chief Ministers of

five states Bihar, Madhya Pradesh, Uttar Pradesh, Rajasthan, Jharkhand

and a minister of Odisha.

• The scheme will work in a mission mode in 116 districts across these six

States where the maximum number of the migrant workers have returned.

• It will give impetus to infrastrcture and internet connectivity of the villages.

27. India 2nd biggest driver of global energy consumption in 2019: BP Statistical

Review

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According to BP Statistical Review released India was second biggest growth driver

of primary energy consumption in the world, behind China, in 2019 even though it

witnessed fall in demand in oil and coal. Global primary energy consumption

growth slowed to 1.3 per cent last year, less than half the rate of growth in 2018 (2.8

per cent).

Keypoints-

• The increase in energy consumption was driven by renewables and natural

gas, which together contributed three quarters of the expansion. All fuels grew

at a slower rate than their 10-year averages, apart from nuclear.

• By country, China was by far the biggest driver of energy, accounting for

more than three quarters of net global growth. India and Indonesia were the

next largest contributors to growth, while the US and Germany posted the

largest declines.

• But the growth in 2019 was slower than 2018.

• In absolute terms, India's energy consumption was only behind that of China

(141.70 EJ) and US (94.65 EJ).

• Growth in energy markets slowed in 2019 in line with weaker economic growth

and a partial unwinding of some of the one-off factors that boosted energy

demand in 2018. This slowdown was particularly evident in the US, Russia

and India, each of which exhibited unusually strong growth in 2018.

• The energy consumption is made up of oil, natural gas, coal, electricity and

renewables.

28. Covid-19 impact: It is WPI deflation for the first time in 4.5 years

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Wholesale prices, whose increase or decline is measured in terms of

the wholesale price index (WPI), entered the deflationary zone for the first time in

over four and a half years as the marker fell 3.2 per cent in May due to slackening

demand in the economy, hit hard by the pandemic.

Keypoints-

• As this will translate into low retail inflation at some time, economists expect the

Reserve Bank of India (RBI) to go for another rate cut of 25 basis points.

• Before this, there was a decline in the WPI — at 3.68 per cent — in November

2015. During that time there had been deflation for over a year, with the

sharpest being in August 2015 at 6.14 per cent. The overall WPI was not

available for April this year due to lockdown.

WPI

Wholesale Price Index, or WPI, measures the changes in the prices of goods sold

and traded in bulk by wholesale businesses to other businesses. The numbers are

released by the Economic Advisor in the Ministry of Commerce and Industry. An

upward surge in the WPI print indicates inflationary pressure in the economy and

vice versa. The quantum of rise in the WPI month-after-month is used to measure

the level of wholesale inflation in the economy.

With an aim to align the index with the base year of other important economic indicators

such as GDP and IIP, the base year was updated to 2011-12 from 2004-05 for the

new series of Wholesale Price Index (WPI).

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29. Assistance to Disabled persons for purchasing/fitting of aids/appliances

(ADIP) scheme- First ever distribtion

Through virtual platform under ADIP Scheme of M/O Social Justice &

Empowerment in Firozpur, Punjab, first ever distribution of assistive aids &

devices to divyangjan. This is the first camp being organized by

the ALIMCO under DEPwD after opening of lockdown with the Standard

Operating Procedure (SOP) approved by the Government of India.

Keypoints-

• This scheme is being implemented by the Ministry of Social Justice &

Empowerment.

• This scheme assist the needy disabled persons in procuring durable,

sophisticated and scientifically manufactured, modern, standard aids

and appliances that can promote their physical, social and

psychological rehabilitation, by reducing the effects of disabilities and

enhance their economic potential.

• The scheme is implemented through implementing agencies such as

NGOs, National Institutes under the Ministry of Social Justice &

Empowerment and ALIMCO (a PSU that manufactures artificial limbs).

• The eligibility of the scheme is- A person satisfying all the following

conditions are eligible:

▪ Indian citizen of any age.

▪ Has 40% disability or more (must have the requisite certificate)

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▪ Monthly income, not more than Rs.20000.

▪ In the case of dependents, income of parents/guardians should

not exceed Rs.20000 per month.

▪ Must not have received assistance during the last 3 years for the

same purpose from any source. However, for children below

12years of age, this limit would be one year.

30. India’s first gas exchange

India’s first gas exchange — the Indian Gas Exchange (IGX) — was launched. The

IGX is a digital trading platform that will allow buyers and sellers of natural gas to

trade both in the spot market and in the forward market for imported natural gas

across three hubs- Dahej and Hazira in Gujarat, and Kakinada in Andhra Pradesh.

IGX said that a highly liquid gas exchange, which prices gas fairly may lead to the

government stepping away from pricing domestically produced gas. The exchange is

expected to facilitate transparent price discovery in natural gas, and facilitate the

growth of the share of natural gas in India’s energy basket.

Keypoints-

• Imported Liquified Natural Gas (LNG) will be regassified and sold to buyers

through the exchange, removing the requirement for buyers and sellers to

find each other.

• The exchange also allows much shorter contracts – for delivery on the next

day, and up to a month – while ordinarily contracts for natural gas supply

are as long as six months to a year. This, experts say, will allow buyers and

sellers greater flexibility.

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• The price of domestically produced natural gas is decided by the

government. It will not be sold on the gas exchange.

31.Labour ministry to fast-track National Employment Policy

The government has fast-tracked the proposed National Employment Policy (NEP),

which aims at formalisation of the country’s 500 million workforce including

migrants to ensure job and social security. The policy will lay out a sectoral roadmap

with incentives for employment generation, based on the recommendations of the

Thawar Chand Gehlot-led group of ministers in the wake of the Covid-19-induced

economic crisis. The NEP will have twin objectives of creating an enabling

environment for attracting new enterprises and industries to generate employment

opportunities while improving the skill sets of the existing workforce to make it

employable as India gears up to attract companies seeking to shift manufacturing

bases from China. The proposal to bring in NEP was first mooted in 2008. The idea

took some shape at first meeting of BRICS employment working group in 2016.

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32.India’s first climate change report offers a stern warning

The Ministry of Earth Sciences’ (MoES) ‘Assessment of Climate Change over the

Indian Region’ is the first-ever attempt to document and assess climate change in

different parts of India. The report describes the observed changes and future

projections of precipitation, temperature, monsoon, drought, sea level, tropical

cyclones, and extreme weather events. The report reveals that local climate change

is influenced not only by the increase in greenhouse gases but also by the

increase in air pollution and the local changes in the land-use pattern. The report

goes on to warn that the rapid changes in India’s climate will place increasing

stress on the country’s natural ecosystems, agricultural output, and fresh water

resources, while also causing escalating damage to infrastructure and economy.

Keypoints

• The report is edited by scientists of the Indian Institute of Tropical

Meteorology, Pune, and unlike the UN Intergovernmental Panel on Climate

Change (IPCC) assessment reports that are global, this report looks at

regional climate change projections based on the IITM Earth System Model

and Coordinated Regional Climate Downscaling Experiment datasets.

• According to the report, India’s average temperature has risen by around 0.7°C

during 1901–2018 and projects that the frequency of summer (April–June)

heat waves over India will be 3 to 4 times higher (approximately 4.4°C) by

the end of the 21st century as compared to the 1976–2005 baseline period.

• This in turn will lead to a high likelihood of an increase in the frequency and

intensity of droughts (>2 events per decade), compounded by the increased

variability of monsoon precipitation and increased water vapour demand in

a warmer atmosphere.

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• The seasonal monsoon rains during the June-September months, which

contribute to more than 75 percent of the annual rainfall, and are vital for

India’s agriculture and economy, has declined by around 6 percent from

1951 to 2015, with notable decreases over the Indo-Gangetic Plains and the

Western Ghats.

• There also has been a shift in the recent period toward more frequent dry spells

(27 percent higher during 1981–2011, relative to 1951–1980) and more

intense wet spells during the summer monsoon season.

• The report further cautions that the growing propensity for droughts and

floods because of changing rainfall patterns caused by climate change

would be detrimental to surface and groundwater recharge, posing threats to the

country’s water security.

• The report observes that the Himalayas and the Tibetan Plateau have

experienced a temperature rise of about 1.3°C during 1951–2014.

• Finally, the report concludes that rising temperatures are also likely to increase

energy demand for space cooling, which if met by thermal power would

constitute to global warming by increasing greenhouse gas emissions.

Moreover, a rise in water withdrawal by power plants would directly compete

with water withdrawal for agriculture and domestic consumption,

particularly in water-stressed areas.

33. 40th GST Council Meeting is likely to happen on 14 June 2020

The 40th Goods and Services Tax (GST) Council meeting is likely to happen on 14

June 2020. This meeting will be the most important one as it will be the first meeting

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since the outbreak of the COVID-19 in India. The conference will take place amid

pressure on tax collection. The GST collections have already taken a hit because of

the lockdown imposed on 25 March 2020 to control the spread of COVID-19.

Generally, the GST Council is headed by the Union Minister of Finance and

comprises members of all states and Union Territories (UTs). Due to the prevailing

conditions of COVID-19, the Council meeting scheduled might be held via video

conference.

GST COUNCIL

The GST Council is a federal body that aims to bring together states and the Centre on

a common platform for the nationwide rollout of the indirect tax reform. As per The

Constitution (One Hundred and First Amendment) Act, 2016, in case of a voting,

every decision of the GST Council has to be taken by a majority of not less than

three-fourths of the weighted votes of the members present. The vote of the central

government has a weightage of one-third of the total votes cast, and the votes of all

the state governments taken together have a weightage of two-thirds of the total

votes cast in that meeting.

34.ICICI Home Finance (ICICI HFC) has launched SARAL – an Affordable Housing

Loan

ICICI Home Finance (ICICI HFC) has launched SARAL – an Affordable Housing

Loan. This housing loan will be aimed to fund homes in urban and rural areas.

Keypoints-

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• It has been developed for women, lower-middle-income customers, and

economically weaker sections who have a maximum household income up

to Rs 6 lakhs annually.

• This housing loan is offered at an interest rate starting from 7.98 per cent

onwards. Under the SARAL affordable housing loan, one can opt for a loan

up to Rs 35 lakhs, and for a maximum tenure of 20 years.

• Additionally, people with pre-existing loans can also transfer their loans to ICICI

Home Finance’s SARAL affordable housing loan.

35. Karnataka Bank launches COVID-19 health insurance in partnership with

Universal Sompo

• Karnataka Bank said it has launched a health insurance policy for COVID-19

in a tie-up with Universal Sompo General Insurance Company.

• To protect the health of common man, Karnataka Bank has launched a

special health insurance policy to cover the uncertainties posed by COVID-19

pandemic.

• The private sector bank said the health cover can be availed at a nominal

premium of Rs 399, inclusive of all taxes.

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36. Bank of Baroda to completely digitise lending operations

India’s third largest lender Bank of Baroda is set to completely digitise it’s lending

operations including home, agriculture, MSME, personal and auto loans. The bank

which is looking to completely do away with paper-based lending has reached out to

the big four and some white shoe consultants like McKinsey and Boston Consulting

Group to help set up a “digital lending department”. The validation and disbursal

of fresh loans will happen via this digital platform while past loans will also be

digitised to cut costs and improve profitability. The bank is planning to digitise a

large proportion of its retail and MSME processes in the next six months.

37. RBI steps up monitoring of retail payment modes, modifies framework

The Reserve Bank of India (RBI) revised the supervisory framework for financial

market infrastructure (FMI) and retail payment systems (RPS). This is owing to the

bigger role the payment entities have been playing in the last few years. The RBI

has classified the National Payments Corporation of India (NPCI) as FMI, thereby

increasing the regulatory oversight on the entity.It also included the National Electronic

Funds Transfer (NEFT) in the FMI framework.

Keypoints-

• NPCI will now, as per disclosure framework prescribed in the principles of

FMI, have to disclose its self-assessment on compliance on an annual basis

and also submit a copy to the RBI.

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• Also, there will be on site inspection and assessment conducted bi-annually

by the department of payment and settlement systems (DPSS) or an

external agency.

• For NEFT, on site inspection and assessment will be conducted periodically.

NPCI has also been designated as a “system wide important payment

system (SWIPS).”

• Earlier, Real Time Gross Settlement System (RTGS), Securities Settlement

System (SSS), Clearing Corporation of India (CCIL) and Negotiated Dealing

System — Order Matching (NDS-OM) were part of the FMI.

• The applicability of principles for FMIs may also be extended to some important

retail payment systems.

• In case of retail payment systems, such as card payments network, system

audit reports and segmented financial statements for India-specific

operations have to be submitted to the RBI on an annual basis.

• Also, financial statements for India-specific operations have to be provided to

the RBI for each quarter and the entire year.

• The RBI has outlined a host of measures that retail payment systems such

as ATM networks, pre-paid payment instruments, Bharat Bill payment

system, trade receivable discounting systems and white lable ATM

operators have to undertake.

• The principles for FMIs are there to enhance safety and efficiency in payment,

clearing, settlement and recording arrangements. More broadly, to limit

systemic risk and foster transparency as well as financial stability.

• The RBI’s view is that, to promote safety, security and efficiency of FMIs and

retail payment systems, they should aim to have better governance

arrangements.

• In order to manage the risk from a participant default, they should consider

their impact by collateralising current and future credit exposures.

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• The RBI also said that they should preferably conduct their money

settlements in central bank money, where practical and available, to avoid

credit and liquidity risks.

38. Infosys joins Amazon's The Climate Pledge to be net zero carbon

Bengaluru-based IT major Infosys Ltd has joined The Climate Pledge, an initiative

co-founded by e-commerce firm Amazon and environment firm Global Optimism, to

make a commitment to meet the Paris Agreement 10 years early. The Climate Pledge

calls on new signatories to be net zero carbon across their businesses by 2040, a

decade ahead of the Paris Accord’s goal of 2050. Amazon plans to announce many

more signatories throughout 2020.

Keypoints-

• Infosys and other companies that sign The Climate Pledge agree to

regularly measure and report greenhouse gas emissions, implement

innovation-led de-carbonization strategies in line with the Paris Agreement,

and neutralize any remaining emissions to achieve net zero annual carbon

emissions by 2040.

• Infosys made a voluntary commitment in 2011, long before the Paris

Agreement, to become carbon neutral and is on track to achieve it well

ahead of 2040. Infosys is the first signatory to RE100 (the global corporate

renewable energy initiative) from India and is committed to completely

transitioning to renewable power for its electricity requirements.

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39. Fit India and MHRD launch special films to promote indigenous sports of India

The Human Resource Development (MHRD) and Sports Ministry have collaborated

to produce a series of special films promoting 10 indigenous sports of India. The

'Department of School Education and Literacy' under MHRD has joined hands with

sports ministry's flagship programme 'Fit India' under the 'Ek Bharat, Shrestha

Bharat' initiative.

40. Migrants to receive covid care via Ayushman Bharat scheme

The government is preparing a list of migrant workers from across states to offer

health insurance benefits under the flagship Ayushman Bharat Pradhan Mantri

Jan Arogya Yojana (AB-PMJAY) amid the coronavirus crisis. The National Health

Authority (NHA), the implementing agency that it was coordinating with state

governments to identify eligible beneficiaries, and is setting up a process to issue AB-

PMJAY e-cards to migrants at the earliest. The move is aimed at ensuring health

cover to the under-privileged during the pandemic. At present the cashless scheme

provides health cover of as much as ₹5 lakh per family a year for secondary and

tertiary care hospitalization to over 107.4 million poor and vulnerable families, or

about 530 million individuals. The NHA has also tied up with DigiLocker, the

flagship initiative of the ministry of electronics and IT (MeitY)’s Digital India

Programme, to provide access to authentic digital documents to the citizenry. The NHA

said all beneficiaries, including migrants, can easily access their cards online

anytime, anywhere.