Banking

Context: The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) have signed an agreement aimed at promoting the use of local currencies—the Indian Rupee (INR) and the Maldivian Rufiyaa (MVR)—in cross-border transactions. About Cross-Border Payments (CBPs) Cross-border payments involve financial transactions where the payer and the recipient …

Context: The CEO of Niti Aayog recently suggested that India should reconsider its decision not to join the Regional Comprehensive Economic Partnership (RCEP), especially in light of changing global trade dynamics and new opportunities. Background: In 2019, India decided not to join the RCEP, a trade agreement covering 30% of …

Context: Kerala has raised a challenge against the Centre’s imposition of a Net Borrowing Ceiling (NBC) in the Supreme Court, arguing that it infringes on fiscal independence and state sovereignty. The Court will examine whether the Centre’s borrowing limits potentially conflict with federal principles and the fiscal autonomy of States, …

Gross Domestic Product (GDP) represents the total monetary value of all goods and services produced within a country’s borders over a specified period. While it is widely used as an indicator of economic performance, it has significant limitations in assessing overall well-being and environmental health. Criticisms of GDP as an …

Context (TH|DDN): The Prime Minister has introduced the Ayushman Vaya Vandana Card as part of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY). Coverage: Provides an annual health cover of ₹5 lakh per family specifically targeting elderly individuals aged 70 years and above. If multiple elderly members are …

Context (IE | ET): Leaders in the fast-moving consumer goods (FMCG) sector have raised concerns over declining consumer demand among urban middle-income households. Reasons for Reduced Spending High Food Inflation & Essential Service Costs: Rising costs in areas like food, healthcare, and education have reduced disposable income, cutting into discretionary …

Context: Rising Litigation Costs and Case Backlogs in India (TH): Third-Party Litigation Funding (TPLF) is seen as a potential solution to rising litigation costs and case delays in India. A national regulatory framework for TPLF is being proposed to improve access to justice. What is TPLF? Definition: Third-Party Litigation Funding …

Context: Income inequality remains a critical global challenge, requiring comprehensive solutions. To achieve greater equity, there is a need to shift from the traditional “economies of scope and scale” to an “economy of purpose.” Key Strategies to Combat Income Inequality Implementing Progressive Taxation: Progressive tax systems are essential for redistributing …

Concept The article examines critical reforms in NPS Lite aimed at including the informal sector in the National Pension Scheme. This is significant as workers in this sector typically lack access to benefits like provident funds or gratuity. National Pension System-Lite (NPS-Lite) Launched by the Pension Fund Regulatory and Development …

Context: Indian industry bodies have expressed concerns regarding the Angel Tax, particularly its recent expansion in the Finance Bill 2023. This development comes amidst a decline in startup funding and job losses. Understanding Angel Tax: Angel Tax refers to the income tax levied on unlisted companies that issue shares to …

Introduction: The GREAT Scheme is an initiative by the Ministry of Textiles, Government of India. It aims to boost innovation and entrepreneurship in the technical textiles sector. Objectives: Promote research and development: GREAT encourages scientists, technologists, and startups to translate their ideas into commercially viable products and technologies for technical …

Reserve Bank of India Surplus Transfer: A Boon or Bane? GS3 :Reserve Bank Of India (RBI), Income and Expenditure of Central Bank, RBI Surplus Transfer To Government, Sources and Uses of RBI Surplus, Significance of RBI’s Surplus Transfer The Reserve Bank of India’s (RBI) recent announcement of a record-breaking ₹2.11 …

Concept Green bonds have emerged as a financial instrument aimed at channeling investments into environmentally sustainable projects. As the world grapples with climate change and environmental degradation, green bonds offer a mechanism to finance initiatives that mitigate environmental impact and promote sustainability. Definition of Green Bonds: Green bonds are debt …

TABLE OF CONTENTS News Concept Calculation Components of PMI PMI Releases News: Business activity in the services sectors likely clocked their fastest expansion in more than 13 and a half years in March, aided by a record uptick in export orders, as per the HSBC India Services Purchasing Managers’ Index …

TABLE OF CONTENTS News Concept Types of Exchange-Traded Currency Derivatives Currency Options News: The Reserve Bank of India (RBI) Thursday deferred the implementation of norms on exchange-traded currency derivatives (ETCDs) linked to Indian rupee until May 3 following concerns by investors. Concept : Derivatives are financial instruments whose value is …