RBI Guv Faces Board Queries on Financial Frauds
- Shaktikanta Das came under pressureat the bank’s board meeting last week.
- 2 external directors questioning howa string of frauds that have surfaced since 2018 remained undetected for years?????
- These incidents differ from eachother and are not exactly related, but a few members were quite vocal about it.
- The governor explained theinformation sharing system and collection of data by the RBI… In some cases, the data itself — even the audited numbers — were either inadequate or fudged.
- The external directors raised theissue at a time when the banking regulator is facing flak on social media, and facing the ire of depositors and financial market commentators.
Rev Secy on Tax Target
- Ajay Bhushan Pandey: government iswell on track to meet its tax targets.
- Any reduction in personal income taxwould depend on impact of the measures taken on revenue and the budget.
- Pandey strongly refuted criticism thatthe goods and services tax was the cause of the current economic slowdown.
- Asked about rate rationalisation or aslab rejig in GST: what is required is a balanced approach looking at the revenue collection position, the revenue requirement position and the need for rationalisation.
2-year Holiday on Spectrum Payments
- Telecom department is working on aplan.
- To provide a 2-year holiday onpayment of spectrum dues. Totalling over ₹40,000 crore by thethree private telcos. Any decision will be subject toapproval by the FM.
- ECONOMICS NOBEL WINNER’S TAKE ON INDIA
- Abhijit Banerjee: India’s economy wasin a “tailspin” and “doing very badly” . The government’s main focus has tobe on reviving demand. “I think demand is a huge problem right now in the economy.”
Falling MILLET Prices
- Mandi prices of millets such as ragiand bajra ruling at 15-24% below their minimum support prices (MSPs).
- Niti Aayog has recommended that theCentre offer 15-20% of MSP as commission to private traders to encourage them to buy coarse cereals at MSP.
- This will avoid distress sales byfarmers.
- If the proposal is implemented, theprivate trade will for the first time play a significant role in public procurement of grains.
- Using private agencies is still acheaper option than asking FCI.
- PM-Aasha scheme
- Price support scheme
- Price deficiency payment scheme
- Private procurement and stockist scheme
- Merchandise exports shrank 6.6%year-on-year in September to $26 billion. The 3rd contraction in six months.
- Reflecting the impact of not justexternal headwinds but also subdued domestic manufacturing.
- Goods trade deficit hit a 7-month lowof $10.86 billion in September.
- Imports plunged by almost 13.9%,mirroring a collapse in domestic consumption.
- Exports of 23 out of 30 key itemscontracted, while imports of as many as 25 of the 30 products dropped. Industrial outputGold importsRural distress
IMF on Indian GDP Growth
- International Monetary Fund: India’sGDP growth projections by 90 bps to 6.1% for FY20 and by 20 bps to 7% for FY21.
- World Bank had slashed India FY20growth estimate to 6% from its original call of 7.5%.
- Moody’s Investors Service: cut itsforecast for India’s FY20 GDP growth by 40 bps to 5.8%.
- Power Minister RK Singh: ‘coal versus renewableenergy’ debate is “based on the wrong premises”
- The country is working to attain the intendednationally determined contribution (INDC) target of reducing the emissions intensity of its GDP by 33- 35% by 2030 from the 2005 level.
- Coal Minister Pralhad Joshi: his ministry “isimplementing coal washeries, permitting only super critical coal plants and planting trees for capturing carbon naturally”, to reduce the carbon footprint.
Agri Secy on Oilseeds
- 10th National Seed Congress
- To boost domestic production ofoilseeds and cut dependency on import of edible oil.
- Scientists should develop high-yieldingvarieties of seeds, especially that of soyabean.
- Creating the world’s best traceabilitysystem to ensure availability of quality seeds to farmers. ‘Quality Seed for farmers’ Prosperity’
- The secretary also talked about theneed to boost seed exports.
- According to industry data, the overallimports of vegetable oils during November 2018 to September 2019 went up by 3 per cent to 14.17 million tonne.
- Agarwal said the government is in theprocess of bringing a new seed law and asked experts to give suggestions.
- Indian Council of Agricultural Research(ICAR) Director General Tirlochan Mohapatra spoke about DNA barcoding and stressed on developing protocol for DNA profiling.
- He said seed production should bebased on demand placed by state governments