Government has operationalised a partial guarantee scheme announced in the budget for non-banking and housing finance companies(NBFCs and HFCs). The scheme provides for a one-time partial credit guarantee to Public sector banks(PSBs) for purchase of pooled assets of financially sound NBFCs. The scheme aims to address temporary asset liability mismatches of otherwise solvent NBFCs/HFCs without… Continue reading Government issues guidelines for ₹1 trillion partial credit guarantee for NBFCs
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.
Panchamirtham of Palani temple gets GI tag
Palani panchamirtham has been granted GI Tag. It is served as prasadam at the Murugan temple, Palani, Dindigul district, Tamil Nadu. The panchamirtham is a combination of five natural substances — banana, jaggery, cow ghee, honey and cardamom. Dates and diamond sugar candies are added for flavour. It is served in a semi-solid state. Not… Continue reading Panchamirtham of Palani temple gets GI tag
CSR expenditure may be made tax deductible, says committee
Government had formed a High Level Committee on Corporate social responsibility(CSR) under the Chairmanship of Corporate Affairs Secretary Injeti Srinivas. The committee was formed to review the existing CSR framework and make recommendations on strengthening the CSR ecosystem including monitoring implementation and evaluation of outcomes. The committee has recommended that CSR expenditure should be eligible… Continue reading CSR expenditure may be made tax deductible, says committee
RBI proposes easing of rules for sandbox model
The Reserve Bank of India(RBI) has issued the final framework for regulatory sandbox in order to enable innovations in the financial technology space. Regulatory sandbox(RS) is an infrastructure that helps financial technology (FinTech) players live test their products or solutions before getting the necessary regulatory approvals for a mass launch which saves start-up time and… Continue reading RBI proposes easing of rules for sandbox model
RBI takes over HFC regulation from NHB
The Reserve Bank of India(RBI) has approved a proposal to shift regulation of Housing finance companies(HFCs) from the National Housing Bank(NHB) to the RBI. Hence,HFCs will now be treated as one of the categories of non-banking financial companies(NBFCs) for regulatory purposes. Further,any housing finance institution which is a company desirous of making an application for… Continue reading RBI takes over HFC regulation from NHB
FinMin plans 16-point ‘KRA’ to push PSBs
Finance Ministry has planned to closely monitor Public sector banks (PSBs) achievements on 16 key performance indicators (KPIs) at the branch, region, State and national level. This step was taken in the backdrop of PSBs market share declining while that of private banks is rising.PSBs accounted for 63% of the outstanding credit of scheduled commercial… Continue reading FinMin plans 16-point ‘KRA’ to push PSBs
Why lower fiscal deficit isn’t always good news
According to the data,there is growing concern about the slowdown in India’s economic growth.Recently,RBI had also cut repo rates by 35 basis points, which was the sharpest cut in nine years. In macroeconomy,there are two components.One is the structural or the permanent component which is largely determined in the long term by factors such as… Continue reading Why lower fiscal deficit isn’t always good news
Govt looks to reverse economic slowdown with a stimulus package
The government is planning a set of measures to reverse an economic slowdown that is going through losses, layoffs and an investment freeze. The measures include (a)steps to boost infrastructure investments (b)goods and services tax(GST) relief to specific sectors (c)ways to further cut red tape on cross-border trade and (d)steps to improve ease of doing… Continue reading Govt looks to reverse economic slowdown with a stimulus package
Two ways to look at GDP
Researchers and academicians have raised doubts about the new methodology employed by the Central Statistics Office(CSO) to estimate India’s gross domestic product(GDP). In 2015,CSO had introduced a new series of National Account Statistics. The new series made several changes to estimate India’s gross domestic product(GDP).In particular,it revised the base year from 2004-05 to 2011-12. However,the… Continue reading Two ways to look at GDP
Wage code looks to check graft in inspection system
Parliament has passed the Code on Wages Bill, 2019.The Bill has subsumed existing laws related to workers remuneration. The bill will replace the (a)Payment of Wages Act,1936, (b)Minimum Wages Act,1948 (c)Payment of Bonus Act,1965 and the (d)Equal Remuneration Act,1976. The bill makes it difficult for companies to bribe labour inspectors of their region for favourable… Continue reading Wage code looks to check graft in inspection system
