The Supreme Court has struck down the Reserve Bank of India’s February 12 circular that dealt with resolution of stressed assets in the economy.The Supreme Court has held the February 12 circular ultra vires as a whole which means the RBI had gone beyond its powers in issuing the circular.Earlier,the apex Court had stayed the… Continue reading SC holds ultra vires RBI’s February 12 circular mandating insolvency proceedings
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.
Borrower behaviour will deteriorate
According to analysts,Supreme Court judgment striking down the Reserve Bank of India’s February 12 circular that dealt with the resolution of stressed assets will lead to deterioration of borrower behaviour and increase delays and litigation. On 12th February 2018,RBI had put out a circular on classification of non-performing assets that required (a)Banks to stipulate a… Continue reading Borrower behaviour will deteriorate
Credit negative for banks, says Moody’s
According to credit rating agency Moody,Supreme Court’s decision to strike down the February 12,2018 circular of the Reserve Bank of India (RBI) will be credit negative for Indian banks. They said that the circular had significantly tightened stressed loan recognition and resolution for large borrowers.But,with the Supreme court order,resolution of stressed loans impacted by the… Continue reading Credit negative for banks, says Moody’s
RBI order on defaulters lacked govt. nod, says SC
The Supreme Court has struck down the Reserve Bank of India’s Feb. 12 circular on the grounds that the regulator can give directions to banks on stressed assets only upon the central government’s authorisation and in case of a specific default. Several companies in the power,sugar,fertiliser and infrastructure sectors objected to the circular’s one size… Continue reading RBI order on defaulters lacked govt. nod, says SC
Manufacturing PMI at 6-month low
According to Nikkei India Manufacturing Purchasing Managers’ Index (PMI) data,manufacturing activity has slowed to a six-month low of 52.6 in March due to lower levels of new orders and production. PMI or a Purchasing Managers’ Index (PMI) is an indicator of business activity — both in the manufacturing and services sectors.It is a survey-based measures… Continue reading Manufacturing PMI at 6-month low
RBI tweaks NPA divergence disclosure norms
The Reserve Bank of India (RBI) has said that banks should disclose Non performing assets(NPA) divergences if there is a more than 10% difference in their assessment of bad loans versus that of the regulator. The divergence in non-performing assets is the difference between the central bank’s assessment and the bank’s reported non-performing loans. Earlier,the… Continue reading RBI tweaks NPA divergence disclosure norms
GST revenue hits a record high in March
Goods and Services Tax (GST) collection in March rose 15.6% from a year ago to hit Rs 1.06 lakh crore.It is the highest collection since the new indirect tax system took effect on July 1,2017. However,it is still short of the Union government’s target for the current fiscal(2018-19).The Centre had estimated the GST collections to… Continue reading GST revenue hits a record high in March
Core sector growth quickens in February
According to the Government data,India’s eight core industries grew by 2.1% in February 2019.It is due to fall in output of crude oil and refinery products. The eight core sectors which include (a)coal, (b)crude oil (c)natural gas (d)refinery products (e)fertilizers (f)steel (g)cement and (h)electricity had recorded a growth of 5.4% in February 2018. The data… Continue reading Core sector growth quickens in February
Coronary stents to cost more
Drug price regulator,National Pharmaceutical Pricing Authority (NPPA) has approved hike in prices of coronary stents by 4.2%.It was increased after taking into consideration the inflation of the previous year. As per the new prices notified by the NPPA,a bare metal stent (BMS) would now cost Rs 8,261 while the drug eluting stent (DES) will cost… Continue reading Coronary stents to cost more
Fugitive Offenders Act won’t help banks: Mallya
Fugitive businessman Vijay Mallya has told the Bombay High Court that confiscation of his properties under the newly-enacted Fugitive Economic Offenders Act (FEOA) was draconian and it will not help the creditors. Earlier,he had approached the high court challenging a January 5 order of a special court under the Prevention of Money Laundering Act (PMLA)… Continue reading Fugitive Offenders Act won’t help banks: Mallya
