India’s Pessimistic attitude towards Crypto currencies The Reserve Bank of India (RBI) is pessimistic about the use of Cryptocurrencies in India. Consistently, the RBI had highlighted the disadvantages of using cryptocurrencies. Further, in 2019, a high-level intermediate committee constituted by RBI recommended a blanket ban on private cryptocurrencies in India. The pessimistic attitude towards digital… Continue reading There’s no easy victory in the country’s crypto cold war
The issue of MSME financing gap
Synopsis: Micro, small and medium (MSME) enterprises act as the backbone of wealthy economies. However, pandemic has worsened the issue of delayed payments for their goods and services. It is causing MSME financing gap. What are the issues facing MSMEs? Micro, small and medium (MSME) enterprises are the backbone of a healthily balanced economy. They supply components, intermediate goods and services… Continue reading The issue of MSME financing gap
PMC Bank gets some cooperative support, but revival to take time
What are the regulatory conditions for Urban-Cooperative Banks in India? Context: The Centrum-Bharat Pe combined and takeover a bankrupt urban cooperative bank. The RBI has also granted an “in-principle” approval to Centrum Financial Services and BharatPe to set up a small finance bank (SFB). This marks the first instance of NBFCs, high-net worth individuals and fintech being allowed entry in the urban-cooperative bank (UCB) space. Regulatory conditions for urban-cooperative bank (UCB): The RBI in 2019 brought… Continue reading PMC Bank gets some cooperative support, but revival to take time
Towards a more federal structure
Why India needs better tax sharing mechanism between Center and States? Context: The current policy of tax sharing between center and states will increase the regional differences. Current policy of Tax sharing mechanism in India: In India, direct taxes go entirely to the Central government. State governments get funds from the Central government according to the Finance Commission’s recommendations. Though this is… Continue reading Towards a more federal structure
GST: A turning point?
How to improve Tax to GDP ratio with GST? Context: For the last 25 years, our tax-to-GDP ratio has been stuck at between 16 and 17 per cent. This is severely constraining our fiscal capacity to devote more resources to our underinvested sectors such as education and health. How to improve tax to GDP ratio with GST? The goods and services… Continue reading GST: A turning point?
China’s Huawei seeks access to Trusted Source Portal
News: Chinese telecom gear giant Huawei Technologies has sought permission for access to the government’s ‘Trusted Telecom Portal’ so that it can share details about the telecom products which telecom service providers have agreed to buy from it. What is the ‘Trusted Telecom Portal (TTP)’? Government recently launched a ‘trusted telecom’ portal as a part of the national security directive on the telecommunications… Continue reading China’s Huawei seeks access to Trusted Source Portal
World Investment Report 2021 released
Context: UN Conference on Trade and Development (UNCTAD) has released its World Investment report 2021 Key findings: – Specific to India FDI in 2020 India was 5th biggest recipient: India’s FDI rose 27% to $64 billion in a year when global investment flows shrank 35% to $1 trillion. This peculiar phenomenon happened due to the following reason: Mergers and acquisitions (M&A), especially in the technology… Continue reading World Investment Report 2021 released
Lakshadweep could face major coastal erosion due to rising sea levels: study
Context: Environmental impact of climate change on sea-level rise in Lakshadweep Islands. News: A group of scientists carried out a study to gauge the impact of climate change on sea-level rise in Lakshadweep islands. What are the findings of the study? Some key findings: Sea levels around Lakshadweep are estimated to rise between 0.4 mm and 0.9 mm annually, causing coastal erosion in… Continue reading Lakshadweep could face major coastal erosion due to rising sea levels: study
Share info with Govt, ban on ‘specific’ flash sales: Move to tighten e-commerce norms
Context: Tightening of norms for e-commerce companies News: The Ministry of Consumer Affairs, Food and Public Distribution is planning major changes to the Consumer Protection (E-Commerce) Rules, 2020. A range of amendments has been proposed. Comments sought from relevant stakeholders by July 6. Background In December 2018, the Industry Department had published changes to its foreign direct investment (FDI) policy for e-commerce. These changes were introduced to… Continue reading Share info with Govt, ban on ‘specific’ flash sales: Move to tighten e-commerce norms
CDS to chair meet on theatre commands
Context: Chief of Defence Staff (CDS) Gen. Bipin Rawat is scheduled to chair a meeting with the Vice-Chiefs of the three services, the Chief of Integrated Defence Staff, and the representatives from the Ministries of Defence, Home and Finance. This meeting is part of a broad plan to create four integrated tri-service (theatre) commands. What is a theatre command? A theatre command is a military structure wherein all the assets… Continue reading CDS to chair meet on theatre commands
