Recently,United States and UK yield curves had inverted for the first time since 2007 and 2008 respectively.This has led to the fear of global recession in the coming future. The yield curve is a graph showing the relationship between interest rates earned on lending money for different durations. A normal yield curve is one in… Continue reading What an inverted yield curve means
Category: Factly – Indian Economy
This category contains all Current Affairs Factly Articles for Prelims, related to the Indian economy. You can find all relevant Economy updates on this page. This page is specifically useful for UPSC Prelims exam.
Economy shows further weakening, needs larger push: Shaktikanta Das at MPC meet
The RBI has released the minutes of the monetary policy committee (MPC) meeting. During the meeting,RBI governor said that RBI had to cut the repo rate by an unconventional 35 basis points to 5.4% in view of weakening of domestic growth and unstable global macroeconomic environment. Further,the governor said that the rate cut was given… Continue reading Economy shows further weakening, needs larger push: Shaktikanta Das at MPC meet
IMF warns against rate cuts, currency intervention to improve trade balance
The International Monetary Fund(IMF) has warned the United States and China that higher bilateral tariffs are unlikely to reduce aggregate trade imbalances as they mainly divert trade to other countries. Instead,they are likely to harm both domestic and global growth by affecting business confidence and investment and disrupting global supply chains. The IMF has also… Continue reading IMF warns against rate cuts, currency intervention to improve trade balance
Tax notices to soon carry an identification number
Central Board of Direct taxes(CBDT) has said that all communications made by the tax department to tax assessees from October 1,2019 will have to carry a Document Identification Number(DIN). Document identification number(DIN) is the new system of identification number that Income tax department has introduced for the taxpayers. The DIN will be generated by the… Continue reading Tax notices to soon carry an identification number
Committee submits report on replacing I-T Act with Direct Tax Code
Government had constituted a committee to draft a new direct tax law to replace the existing Income Tax Act,1961.The committee was headed by Akhilesh Ranjan.It has submitted its report to the government. The objective of the task force was to draft direct tax laws in line with the norms prevalent in other countries, incorporating international… Continue reading Committee submits report on replacing I-T Act with Direct Tax Code
Govt exempts NBFCs, listed firms from debenture reserve requirements
Government has removed Debenture Redemption Reserve(DRR) requirement for listed companies,Non banking financial companies (NBFCs) and Housing finance companies(HFCs). At present,these companies have to set up a DRR to the tune of 25% of the value of their outstanding debentures.However,banking companies and financial institutions are already exempted from creating DRRs. This move will make it cheaper… Continue reading Govt exempts NBFCs, listed firms from debenture reserve requirements
RBI plans to formalise linking of new loans to repo rate
The Reserve Bank of India(RBI) is considering asking banks to link loans to an external benchmark such as the repo rate to improve transmission of policy rates and foster economic growth. Repo stands for ‘Repurchasing Option’.It refers to the rate at which commercial banks borrow money from the RBI. Currently,bank loans are linked to marginal… Continue reading RBI plans to formalise linking of new loans to repo rate
Explained: Bonds, yields, and inversions
The global economy continues to be hit as one big economy after another falters on economic growth.This increases the likelihood of a global recession in the coming future. As talk of a recession has started,Bond yields curve have also featured in the news both globally and within India as it most accurately reflects what investors… Continue reading Explained: Bonds, yields, and inversions
PSU banks kick off nationwide exercise to boost credit demand across sectors
Public sector banks(PSBs) has held a consultative process with their branch heads across the country to identify the issues and challenges faced by branches. This exercise was undertaken as part of a bottom-up approach to shape policies so that PSBs can act as a catalyst in making India a $5-trillion economy. The consultative process has… Continue reading PSU banks kick off nationwide exercise to boost credit demand across sectors
PM Economic Advisory Council: Need to set up GST Council-like body for public spending
The Economic Advisory Council to the Prime Minister(EAC-PM) has recommended a GST Council-like mechanism for the Centre and states to oversee public expenditure. EAC has said that fiscal consolidation issue as a reason behind this recommendation.The Centre’s fiscal deficit for 2019-20 is 3.3% of GDP. Hence,there are limits to public expenditure as there is a… Continue reading PM Economic Advisory Council: Need to set up GST Council-like body for public spending
