World Bank Group approves USD 400 million for SNGRBP

Last week the Board of Executive Directors of the World Bank Group has approved a loan of USD 400 million for the rejuvenation of the Ganga River under the NAMAMI Gange Program of the Government of India. The loan approved by the World Bank Group is for strengthening the river basin.

• Back in 2015, the World Bank Group has approved USD 1 billion for the First National River Ganga Basin Project. 
• The loan approved for USD 400 million is for the Second National River Ganga Basin Project (SNGRBP).

Financing for the Project

• Lending arm of the World Bank Group- International Bank for Reconstruction and Development (IBRD) will be sanctioning the loan amount. 
• USD 381 million is the loan amount that will be sanctioned by IBRD, while USD 19 million is for the IBRD Payment Guarantee for the loan amount. 
• The Guarantee expiry date is 18 years for the date of effectiveness. 
• Including a grace period of 5 years, the loan amount has a maturity of 18.5 years.

Objectives of SNGRBP

• Expand the sewage treatment infrastructure to more cities in the Ganga Basin
• In the long term, the assets related to sewage treatment is operated and maintained effectively
• Help develop State-of-the-art tools for National Mission for Clean Ganga (NMCG) for effective management of the riverfront
• To help control pollution discharge, sewage networks and treatment plants will be set up in select cities across the Ganga Basin
• New infrastructure projects will be developed under the Hybrid Annuity Model (HAM) to ensure long term effectiveness and are well maintained

USD 750 Million approved under COVID-19 Emergency Response Program for MSMEs in India by World Bank Group

A USD 750 Million loan was approved for the Micro Small and Medium Enterprises (MSMEs) in India by the World Bank Group. The Approval for the loan amount was given on 30^th June 2020 by the Board of Executive Directors of the World Bank Group.  As a result of the COVID-19 pandemic, the MSME sector is under severe financial stress due to lack of exports and domestic businesses, loan approval is under Emergency Response Program to ensure increased financial support for the MSMEs in India.

• The loan amount will help in addressing the immediate need for liquidity and credit for around 15 lakh (1.5 million) MSMEs in the country. 
• The amount will be disbursed through Small Finance Banks (SFBs) and Non-Banking Financial Companies (NBFCs), which will further help in strengthening the SFBs and NBFCs.

Financing of the Loan Amount

• The loan amount will be sanctioned by the lending arm of the World Bank Group- International Bank for Reconstruction and Development (IBRD). 
• Including a grace period of 5 years, the loan amount will be has a maturity of 19 years.

Total of USD 2.75 billion committed to date

• With this USD 750 Million loan amount, this is the 3^rd loan amount that the World Bank Group has approved under Emergency COVID-19 response to India. 
• The first was USD 1 billion in the month of April 2020 for support to the health care sector, while another USD 1 billion in May 2020 for providing food benefits and cash transfers to the financially weaker sections of the society. 
• This takes the total World Bank Group has committed to India to USD 2.75 billion under the COVID-19 response to India

GoI releases Rs 6,195 crores of funds to 14 states

On May 11, 2020, the Government of India released Rs 6,195 crores to 14 states. This is the second equated monthly installment of Post Devolution Revenue Deficit.

Highlights

• The grant allocated to the states will act as additional source of income to the states. 
• The grant was recommended by the 15^th Finance Commission. 
• The Central Government under the grant allocated Rs 1,276 crores to Kerala, Rs 952 crores to Himachal Pradesh, Rs 638 crores to Punjab, Rs 631 crores to Assam, Rs 491 crore to Andhra Pradesh, Rs 417 crore to West Bengal and Rs 423 crore to Uttarakhand.

Significance

• The grant will help the states make preventive and mitigation measures to contain COVID-19. 
• The funds will be used for sample collection, quarantine facility, screening and setting up of additional testing laboratories. 
• The funds will also be used for purchase of PPE (Personal Protection Equipment), thermal scanners, air purifiers, ventilators, consumables in government hospitals.

Revenue Deficit

• The revenue deficit covers the gap between revenue and expenditure of a state. 
• According to Fiscal Responsibility and Budget Management Act, 2003, the states should maintain revenue deficit of zero. 
• According to the Constitution of India, state cannot raise a loan without consent of the Centre. 
• This is why, the Kerala Government in 2019 couldn’t claim the flood relief grants from Saudi Arabia. The centre did not permit.

INR-USD Futures and Options Contracts launched by Finance Minister

On May 9, 2020, the Union Finance Minister Smt Nirmala Sitaraman launched the INR-USD Futures and Options contracts in the BSE and NSE platforms. They were launched at the GIFT International Financial Service Centre (IFSC) in Gandhinagar, Gujarat through video conference.

Significance

• The contracts have been launched to increase economic activity and employment in the country. 
• A significant market share of India has moved to other International financial Centres in the last decade. 
• The move will help to bring back those businesses back to India.
• In Addition, the world-class business environment at the GIFT IFSC will help to bring in larger global participation.

What is Future and Option?

• Future and Options are financial products that allow investors to buy or sell shares at specific price by a specific date.
• Options contract give the right to buy or sell the shares at any time till the validity of the contract exists. 
• Under Futures contract, a buyer and seller can buy or sell only on specific future date.
• Types of Option
• There are two types of Option. 
• The Call Option is used to buy a stock at the strike price and put option is used to sell a stock at a specific price.

RBI announces Special Liquidity Mutual Funds worth Rs 50,000 crores

On April 27, 2020, the Reserve Bank of India announced the special liquidity facility for mutual funds of Rs 50,000 crores. The Reserve Bank of India is increasing liquidity flow in capital markets as COVID-19 has imposed liquidity strains on mutual funds.

Highlights

• The Special Liquidity Facility for Mutual Funds (SLF-MF) is to conduct repo operations for 90 days. 
• Under the scheme, the banks shall submit their bids on any days between Monday and Friday.

Key Features

The Funds are to be used by the banks exclusively to meet the following liquidity requirements

• To extend the loan period
• To undertake purchases of investment-grade corporate bonds, debentures and certificates of Deposit. A debenture is a long-term security that yields fixed rate of interest secured against assets.
• Under the scheme, the liquidity support even when exceeds 25% of total investment is to be permitted to be included as Held to Maturity.
• The banks shall decide the repo or the lending rates of the mutual funds. However, the Reserve Bank of India is to hold the tenor of repo rates for a minimum of three months.

Held to Maturity

The Held to Maturity are debt securities that are acquired to hold it till maturity. It is usually recorded as amortized cost in the financial statements of a company.

పన్ను సమస్య పరిష్కారానికి ఇ-నివారణ్‌

ఆన్‌లైన్‌ ద్వారా పన్ను సమస్య పరిష్కారానికి ఇ-నివారణ్‌ సదుపాయాన్ని కేంద్ర ప్రత్యక్ష పన్ను మండలి (సీబీడీటీ) అందుబాటులోకి తెచ్చింది. ఇది రీఫండ్లు, ఐటీఆర్‌లు, పాన్‌ వంటి వాటితోపాటు ఇతర పన్ను చెల్లింపుదార్ల ఫిర్యాదుకు త్వరితగతిన పరిష్కారం చూపనుంది.

సాఫ్ట్‌వేర్‌ రోబోటిక్స్‌ ప్రారంభించిన ఐసీఐసీఐ

ప్రైవేటు బ్యాంకింగ్‌ దిగ్గజం ఐసీఐసీఐ ‘సాఫ్ట్‌వేర్‌ రోబోటిక్స్‌’ లేదా ‘రోబోటిక్‌ ప్రాసెస్‌ ఆటోమేషన్‌’ను 2016 సెప్టెంబర్‌ 8న ముంబైలో ప్రారంభించింది.

వైఫల్యం చెందకూడని బ్యాంకుగా ఎస్‌బీఐ, ఐసీఐసీఐ

స్టేట్‌ బ్యాంక్‌ ఆఫ్‌ ఇండియా, ఐసీఐసీఐ బ్యాంకును రిజర్వ్‌ బ్యాంక్‌ ఆఫ్‌ ఇండియా 2016 ఆగస్టు 26న వైఫల్యం  చెందకూడని అతిపెద్ద బ్యాంకుగా ప్రకటించింది. ఇలాంటి హోదా ఈ బ్యాంకుకు లభించడం ఇది వరుసగా రెండోసారి. ఆర్థిక వ్యవస్థకు సంబంధించి వ్యవస్థీకృతంగా చాలా ప్రాముఖ్యత కలిగినవని ప్రకటించడమే ఈ హోదా ఉద్దేశం. దీనికి అనుగుణంగా ఆయా బ్యాంకు పటిష్టతకు గట్టి నిఘూ, పర్యవేక్షణ ఉంటాయి. 

గాంధీకి ఆర్‌బీఐ ద్రవ్య, పరపతి విధాన విభాగం బాధ్యతలు

ఆర్‌బీఐలో అత్యంత అనుభవమున్న డిప్యూటీ గవర్నర్‌ ఆర్‌.గాంధీకి ద్రవ్య, పరపతి విధాన విభాగం బాధ్యతలను అప్పగించారు. అంచనా, నమూనా విభాగం కూడా ఆయన కిందకే వస్తుంది. ఇప్పటివరకూ ఈ విభాగాన్ని కొత్త గవర్నర్‌ ఉర్జిత్‌ పటేల్‌ పర్యవేక్షిస్తూ వచ్చారు. రాజన్‌ నుంచి పటేల్‌కు ఆర్‌బీఐ పగ్గాలు మారిన రోజునే ఈ మార్పులు చోటుచేసుకున్నాయి. గాంధీ చేతిలో ఇప్పటికే నగదు నిర్వహణ, ఆర్థిక విధాన - పరిశోధన, విదేశీ పెట్టుబడులు - కార్యకలాపాలు, ప్రభుత్వ బ్యాంకు ఖాతాలు, స్టాక్‌ మార్కెట్‌ కార్యకలాపాలు, విదేశీ మారక ఎక్స్‌ఛేంజ్‌ విభాగాలు ఉన్నాయి.

ఆర్ధిక అంశాలు

ఆర్ధిక అంశాలు 

దేశవ్యాప్తంగా చెలామణీలో రూ.400 కోట్ల నకిలీ కరెన్సీ

దేశవ్యాప్తంగా రూ.400 కోట్ల మొత్తంలో నకిలీ కరెన్సీ చెలామణీలో ఉందనే విషయం కేంద్ర ప్రభుత్వం నిర్వహించిన తాజా అధ్యయనంలో వెల్లడైంది. జాతీయ భద్రతా సంస్థ (ఎన్‌ఐఏ) పర్యవేక్షణలో ఫేక్‌ ఇండియన్‌ కరెన్సీ నోట్‌ (ఎఫ్‌ఐసీఎన్‌) ఇష్యూస్‌ అనే పేరుతో ఇండియన్‌ స్టాటిస్టికల్‌ ఇన్‌స్టిట్యూట్‌ (ఐఎస్‌ఐ) ఈ అధ్యయనాన్ని నిర్వహించింది. ఈ అధ్యయనం ప్రకారం దేశవ్యాప్తంగా రూ.400 కోట్ల విలువైన నకిలీ కరెన్సీ చెలామణిలో ఉంది.

NIA - National Investigation Agency

FICN - Fake Indian Currency Note

ISI - Indian Statistical Institute