FDI blooms in COVID-19 gloom

FDI InflowsApprox Read Time: 4 min FDI Inflows In News: Foreign direct investment (FDI) inflows into India in the first five months of financial year 2020-21 have hit a record high. News Summary: Foreign direct investment (FDI) inflows into India in the first five months of financial year 2020-21 (starts in April) have hit a record high, despite a sharp 60% contraction in the first quarter.The Commerce and Industry Ministry…

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RBI offers on-tap TLTRO worth Rs 1 lakh crore, OMOs for state bonds to keep lid on yields

Improving liquidity through TLTRO/OMOApprox Read Time: 6 min In News: While keeping the key policy rates unchanged, the RBI has announced various measures to bring more liquidity in the financial markets, keep bond yields under control, and improve availability of debt to specific sectors. Improving liquidity through TLTRO/OMO Measures announced: On-tap TLTRO to improve liquidity:The RBI has introduced on-tap targeted long-term repo operations (TLTRO) of Rs 1 lakh crore for providing additional…

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Centre gives in, says will borrow to make up for states’ GST shortfall

GST ShortfallApprox Read Time: 4 min GST Shortfall In News: In a change from its earlier position, the Finance Ministry has said that the Centre would borrow from the market to pay the GST compensation shortfall of Rs 1.1 lakh crore to states.This change comes after the Goods and Services Tax (GST) Council had failed to reach an agreement on the issue of borrowings to meet the shortfalls in compensation cess collections. News…

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Banking Regulation (Amendment) Bill passed in Lok Sabha

Banking RegulationApprox Read Time: 6 min Banking Regulation In News: Considering the deteriorating condition of cooperative banks in the country, Lok Sabha passed the Banking Regulation (Amendment) Bill, 2020. News Summary: In order to protect the interests of crores of depositors, the Lok Sabha has passed the Banking Regulation (Amendment) Bill, 2020. The Bill proposes amendments to the Banking Regulation Act, 1949.With this new Bill, the central government aims to…

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Economic Updates: RBI accepts Kamath panel report on relief to 26 sectors

Kamath Committee’s RecommendationsApprox Read Time: 4 min In News: The Reserve Bank of India (RBI) on 4th Sept set up a 5-member expert committee under banker K V Kamath to suggest financial parameters for resolution of corona related stressed assets. News Summary: While the six-month moratorium on loan repayments ended on August 31, the RBI has allowed banks to recast loans which were classified as standard as on March 1, 2020.Banks have already…

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Economic Updates: FDI, FPI inflows propel forex reserves to record high

Forex Reserves at record highRead Time: 6 minutes In News: India’s foreign exchange reserves hit a fresh high of $513.25 billion in the week ended July 3, 2020. News Summary: According to the data released by RBI, India’s foreign exchange reserves jumped by $6.4 billion in the week ended July 3, 2020 to hit a fresh high of $513.25 billion. India’s foreign exchange reserves started rising since significantly from September 2019, and…

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Economic Updates: Fourth tranche of sovereign gold bond opens for subscription

Sovereign Gold BondsApprox Read Time: 6 minutes In News: The fourth tranche of sovereign gold bonds (SGBs) in the current financial year, opened for subscription on July 6.These bonds are issued by the Reserve Bank of India (RBI) on behalf of the government. News Summary: The fourth tranche of sovereign gold bonds (SGBs) in the current financial year, issued by the Reserve Bank of India on behalf of the government,…

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Editorial Analysis: Will expanded RBI oversight change cooperative banking?

Cooperative banking under supervisionApprox Read Time: 7 minutes  Cooperative banking under supervision Cooperative sector had some trouble over the last year: The PMC Bank (Punjab and Maharashtra Cooperative Bank) fiasco made clear the problems with the cooperative structure in India. These cooperative banks had a different kind of regulation from that of the commercial banks. Hence, while the PMC problem became an RBI problem, which had to be addressed, the fact remains…

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