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MARCH (1st March-10th March)

1. Climate change could put 4.5% of India’s GDP at risk: McKinsey Global

Institute

A report published by the McKinsey Global Institute (MGI) said climate change and

global warming may hit India’s GDP within a decade.By 2030, temperatures in India

could reach such levels that outdoor workers may be forced to cut short their daylight

working hours to beat the lethal heat waves.

Keypoints-

The MGI report has estimated that the impact of global heating on outdoor work

and the resultant loss in productivity could put 2.5% to 4.5 of India’s GDP at risk

annually.

As of 2017, in India, heat-exposed work produces about 50% of GDP, drives

about 30% of GDP growth and employs about 75% of the labour force, some 380

million people.

2. Kotak proposes ‘six-three-three’ formula for public sector banks

The chairman and managing director of the Kotak Mahindra Bank, Uday Kotak

proposed diluting government stake to 50% in three of the 12 state-owned banks and

running the other three under public-private partnership.

3. Only KYC verified investors to transact in MFs-AMFI circular

An AMFI circular will put an end to the old practice of accepting application forms and

cheques alongside KYC forms. Investors will have to first complete their KYC and their

status will have to appear as ‘verified’ with the KRA (KYC Registration Agency) such as

CVL or CAMS.

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4. OECD lowers India's FY21 GDP growth to 5.1 pc on coronavirus concerns

Global agency OECD lowered its India's GDP growth forecast to 5.1 per cent from the

earlier projection of 6.2 per cent for 2020 on concerns of impact of deadly coronavirus

on the domestic as well as the global economy.

5. Nabard infuses ₹1.46 lakh crore in rural banking system in 2019-20

National Bank for Agriculture and Rural Development has infused ₹1.46 lakh crore in

the rural banking system during the current fiscal. Nabard has been extending financial

support to the banks operating in rural areas to help them deploy their resources

effectively for meeting the credit needs of rural people, including farmers.

So far in the current fiscal, the development finance institution has extended ₹66,397

crore in short-term credit and ₹6,704 crore long-term credit to rural cooperative

banks.Regional rural banks have availed ₹14,141 crore in short-term credit and ₹8,417

crore in long-term credit.

6. Bank of Maharashtra to raise up to Rs 600 crore via bonds

State-run Bank of Maharashtra will raise up to Rs 600 crore by issuing of Basel III-

compliant unsecured, redeemable non-convertible tier II bonds of base issue of Rs 200

crore with green shoe option of Rs 400 crore aggregating to Rs 600 crore bonds on a

private placement basis.

To comply with Basel-III Capital Regulations, banks need to improve and strengthen

their capital planning processes. These norms are being implemented to mitigate

concerns on potential stresses on asset quality and consequential impact on

performance and profitability of banks. The Indian banking system has been

implementing Basel III standards in phases since April 1, 2013.

.

Bank Of Maharashtra

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HQ- Pune

Tagline- One Family One Bank

7. World Bank announces up to $12 billion in immediate funds for coronavirus

The World Bank announced an initial $12 billion (9.38 billion pounds) in immediate

funds to assist countries grappling with the health and economic impacts of the

coronavirus virus outbreak that has spread quickly from China to some 80 countries.

8. Supreme Court quashes RBI ban on cryptocurrency trade

The Supreme Court quashed an order by the Reserve bank of India (RBI) banning

financial services firms from trading in virtual currency or cryptocurrency. Its decision

comes after hearing several petitions challenging RBI's April 2018 order imposing a ban

on financial firms or individuals in India from trading in cryptocurrencies. While the order

revoked the ban on illegal cryptocurrency trade, it is worth noting that the government

already prepared a draft bill that seeks to prohibit mining, holding, selling, trade,

issuance, disposal or use of cryptocurrency in the country. Under the draft bill, all the

aforementioned activities can be punished with a fine or imprisonment up to 10 years, or

both in some cases.

9. Crisis at YES Bank highlights governance risk in banking sector: Fitch

The Reserve Bank imposed a moratorium on the capital-starved Yes Bank, capping

withdrawals at Rs 50,000 per account and superseded the board of the private sector

lender with immediate effect. According to Fitch rating, the RBI superseding the board

of Yes Bank casts light on governance risks in India's banking sector.

Keypoints-

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Fitch said there is a risk that the already poor operating environment for the

banking sector could suffer further impairment if the government's efforts to

tackle problems in the bank fail to provide reassurance to depositors and

investors.

The global rating agency said it is also possible that the domestic wholesale debt

markets may experience another crisis of confidence, resulting in a tightening of

financing conditions.

The bank subsequently struggled to address its capitalisation issues, against a

background of sluggish economic growth and a tougher financing environment.

As per RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent

stake for Rs 2,400 crore in the crisis-ridden Yes Bank under a government-approved

bailout plan.

10. U.N. trade body predicts big coronavirus hit to foreign direct investment

The UNCTAD report released indicated The coronavirus outbreak will cause global

foreign direct investment (FDI) to shrink by 5%-15% from previous forecasts, resulting in

only marginal growth in 2020-21, with automotive, airlines and energy industries hit

hardest. UNCTAD said that the negative impact of the virus would likely get worse.

Keypoints-

Of 100 multinational companies which UNCTAD tracks as a global economic

barometer, many are slowing capital expenditure in affected areas and 41 have

so far issued profit warnings, which will hit reinvested earnings, a major driver of

FDI.

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Most of the profit warnings are from consumer-facing companies, indicating that

slowing demand, for now, is expected to have more direct effects on earnings

than production or supply chain disruptions.

A wider sample of the top 5,000 listed companies showed earnings forecasts for

fiscal year 2020 have been revised down in the last month by an average 9%

due to the new virus.

The automotive industry (-44%), airlines (-42%) and energy and basic materials

(-13%) have been hit hardest.

In January, UNCTAD estimated that global FDI flows in 2019 were $1.39 trillion

and expected them to rise by around 5% in 2020. Now it thinks they may hit the

lowest level since the financial crisis in 2008 should the epidemic spread and

continue throughout the year.

East Asia will bear the brunt of lower FDI inflows. China has been the second-

largest FDI recipient country, therefore a significant decline of FDI flows to the

country in the short term will affect the level of global FDI flows.

United Nations Conference on Trade and Development

HQ: Geneva, Switzerland

Founded: 30 December 1964

11. SBI likely to buy 49 per cent stake in Yes Bank for Rs 2,400 crore: RBI

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The RBI's draft 'Yes Bank Ltd Reconstruction Scheme', 2020, said that the SBI has

expressed willingness to invest in Yes Bank. It is likely to pick up a 49 per cent stake

and pump in equity capital to revive the ailing private sector lender.

Keypoints-

As per preliminary estimates, SBI may fork out roughly Rs 2,400 crore in lieu

of the 49 per cent stake but cannot reduce its holding below 26 per cent for

three years from the date of capital infusion.

As part of the proposed scheme, Yes Bank’s authorised capital will be altered

to Rs 5,000 crore and paid-up capital to Rs 4,800 crore.

For 49 per cent stake, SBI's proposed capital infusion will be roughly Rs

2,400 crore at not less than Rs 10 per share (premium of Rs 8 per share), as

per RBI's draft reconstruction scheme.

Yes Bank's Additional Tier 1 capital (roughly Rs 8,800 crore) issued under

Basel III framework will be written off permanently and no account holder will

be entitled for compensation from SBI.

12.IIT Mandi Signs Deal with NABARD for Setting up Three FPOs in HP

The Indian Institute of Technology (IIT), Mandi & Enabling Women of Kamand (EWOK)

Society has inked a tripartite deal with the National Bank For Agriculture and Rural

Development for setting up three Farmer Producer Organization in Mandi, Himachal

Pradesh. NABARD has sanctioned an amount of Rs 35 lakhs to EWOK Society and IIT

Mandi for 3 FPOs to be established in the next 3 years.

13. Paytm arm gets IRDAI’s brokerage licence

Paytm subsidiary Paytm Insurance Broking has secured a brokerage licence from

sector regulator Insurance Regulatory and Authority of India (IRDAI). The company

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plans to offer insurance products across categories including automotive, health and

life.

14. Fitch lowers India’s economic growth forecast for FY20 to 4.9% from 5.1 %

Fitch Ratings has lowered India’s GDP forecast to 4.9% for the fiscal year –FY20 (2019-

2020) ending March 31,2020. It cuts the rate from 5.1% predicted earlier, due to

coronavirus, weak domestic demand and supply disruptions .

15. NMDC, IIT Hyderabad sign pact to support deep-tech start-ups

NMDC Ltd and Indian Institute of Technology (IIT) Hyderabad have signed an

agreement to support start-ups through a collaborative joint incubation programme and

set up an innovation and incubation centre.

NMDC will contribute Rs 10 crore for the five-year joint incubation programme and

intends to support at least 15 start-ups.

16. Pradhan Mantri Jan Dhan Yojana helps raise women’s ownership of bank

accounts to 77% in 2017, says MicroSave Consulting (MSC) report

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Consulting firm MicroSave Consulting (MSC) in a report titled 'The real story of women's

financial inclusion in India' said the country has succeeded in reducing the gender gap

in financial inclusion by 14 percentage points in three years (2014-17).

Keypoints-

Pradhan Mantri Jan Dhan Yojana has helped in raising women’s ownership of

bank accounts from 43 per cent in 2014 to 77 per cent in 2017,

Neighbouring countries like Bangladesh and Pakistan, are far behind with just 36

per cent and 7 per cent share in account ownership by women, respectively.

The report, however, pointed out that some accounts are still inactive.

17. Tata AIA Life Insurance's 'Bachhpan Ka Rakshakaran' initiative offers football

coaching to under-privileged girls

Tata AIA Life Insurance, through its unique initiative 'Bachhpan ka Rakshakaran', in

association with Oscar Foundation, aims to infuse interest in education for the under-

privileged girls, using football coaching as a medium. This, in turn, is expected to

counter issues like school dropouts, child labour, child marriage, drug abuse and

vulnerability to petty crime and makes Tata AIA Life their Rakshakarta.

18.Paytm and hyderabad metro tieupfor QR- based ticket

Hyderabad Metro Rail Ltd has launched Paytm’s QR-code-based metro ticketing

system. The new service will enable commuters to travel seamlessly and avoid queues

to buy tokens at the metro stations.

19.SBI to tap cash budget method of assessment for corporates

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State Bank of India (SBI) has initiated “Cash Budget Based Assessment (CBBA)” of

Fund Based Working Capital (FBWC) limits for units and intends to focus on refinancing

better rated corporates in a bid to achieve minimum 11.50 per cent year-on-year growth

in whole bank advances in FY2021. CBBA of limits has been initiated for assessment of

the FBWC limits for units with total FBWC exposure of more than ₹50 crore from the

banking system.

20. RBL, Zomato and Mastercard to launch new co-branded credit cards

Mastercard is banking big on its co-branded card in partnership with Zomato and RBL,

in a bid to tap the potential of online food delivery market, which has been expanding

beyond big cities.

RBL bank

HQ- Mumbai

Tagline- Apno ka Bank

21.ICICI Prudential AMC ties up Saraswat Co-op bank to tap rural potential

ICICI Prudential AMC has tied up with Saraswat Co-operative Bank, the largest in the

urban co-operative banking space in India, to distribute its products with the bank’s

customers. The tie-up Saraswat Co-operative Bank will offer investment products of

ICICI Prudential Mutual Fund to its customers, through its 280 branches, spread across

six States.

22. Female Labour-force Participation in India Dropped from 34% in 2006 to 24.8%

in 2020: Study

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According to UNGC India study, India is the only country among the 153 surveyed

countries where the economic gender gap is larger than the political gap. Its female

labour-force participation has declined from 34% in 2006 to 24.8% in 2020.

Keypoints

If women participation raised in the labour force same as men then it can boost

India’s GDP (Gross Domestic Product) by 27%.

Globally, 38.7% of employed women are working in agriculture, forestry and

fisheries, but only 13.8% of landholders are women.

23.UN report pegs India’s trade impact at $348 million for coronavirus

According to a UN report, the trade impact of the coronavirus epidemic for India is

estimated to be about 348 million dollars and the country figures among the top 15

economies most affected as slowdown of manufacturing in China disrupts world trade.

Keypoints-

Disruption of world trade could result in a 50 billion dollar decrease in exports

across global value chains.

The most affected sectors include precision instruments, machinery, automotive

and communication equipment.

Among the most affected economies are the European Union (USD 15.6 billion),

the United States (USD 5.8 billion), Japan (USD 5.2 billion), South Korea (USD

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3.8 billion), Taiwan Province of China (USD 2.6 billion) and Vietnam ( USD 2.3

billion).

The trade impact for India is less as compared to other economies such as EU,

the US, Japan and South Korea. Trade impact for Indonesia is 312 million

dollars.

For India, the trade impact is estimated to be the most for the chemicals sector at

129 million dollars, textiles and apparel at 64 million dollars, automotive sector at

34 million dollars, electrical machinery at 12 million dollars, leather products at 13

million dollars, metals and metal products at 27 million dollars and wood products

and furniture at 15 million dollars.

24. At USD 83.5 bn, India has 3rd highest trade-related illicit financial flow

globally: Report

According to US-based think tank Global Financial Integrity (GFI) report, India has the

third-highest trade-related illicit financial flow among over 135 countries with a whopping

USD 83.5 billion escaping the government's tax net owing to trade-based money

laundering tactics.

The GFI classifies as illicit flows funds which are illegally earned, transferred, and/or

utilised across an international border. The primary sources of illicit flows include grand

corruption, commercial tax evasion, and transnational crime.

Keypoints-

According to the report titled "Trade-related Illicit Financial Flows in 135

Developing Countries: 2008-2017 for 2017, five countries with the largest

identified value gaps were China at USD 457.7 billion, followed by Mexico at

USD 85.3 billion, India at USD 83.5 billion.

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In terms of the value gaps in the bilateral trade between 135 developing

countries and the 36 advanced economies in US dollars, India consistently

ranked among the top ten largest value gaps across the ten-year period

examined.

India registered the 6th largest value gap for the last six years of the ten-year

period, and ranked 6th in terms of the largest average size of the value gaps

among the 135 developing countries over the ten-year period.

The report said a staggering USD 8.8 trillion value gap was identified in trade

between 135 developing countries and 36 advanced economies over the period

of 2008-2017.

25. Freedom in the World 2020 report ranks India among least free democracies

According to a global survey, ‘The Freedom in the World 2020’ India has become one of

the world’s least free democracies.This report ranks India at the 83rd position, along

with Timor-Leste and Senegal. This is near the bottom of the pile among the countries

categorised as “Free”, with only Tunisia receiving a lower score.

Keypoints-

India’s score fell by four points to 71, the worst decline among the world’s 25

largest democracies this year.

The annulment of autonomy and the subsequent shutdown of Kashmir, the

National Register of Citizens and the Citizenship (Amendment) Act,

the crackdown on mass protests have been listed as the main signs of declining

freedom.

India scored 34 out of 40 points in the political rights category, but only 37 out of

60 in the civil liberties category, for a total score of 71, a drop from last year’s

score of 75.

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The report derives its methodology from the Universal Declaration of Human Rights,

adopted by the United Nations General Assembly in 1948. It covers 195 countries,

awarding scores based on political rights indicators such as the electoral process,

political pluralism and participation and government functioning, as well as civil liberties

indicators related to freedom of expression and belief associational and organisational

rights, the rule of law and personal autonomy and individual rights.

26. More than 81% account holders are Women under Stand Up India Scheme

More than 81% account holders under Stand Up India Scheme are women. 73,155

accounts have been opened for women. Rs. 16712.72 crore has been sanctioned for

women account holders and Rs. 9106.13 crore has been disbursed for women account

holders.

Stand-Up India Scheme

Stand Up India Scheme was launched on 5 April 2016 to promote entrepreneurship at

grass root level for economic empowerment and job creation.

This scheme seeks to leverage the institutional credit structure to reach out to the

underserved sector of people such as Scheduled Caste, Scheduled Tribe and Women

Entrepreneurs so as to enable them to participate in the economic growth of nation.

The objective of this scheme is to facilitate bank loans between Rs.10 lakh and Rs.1

crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at

least one woman borrower per bank branch of SCBs for setting up a Greenfield

enterprise.

27. MUDRA: 70% of the total loan borrowers are Women PMJDY

As on 31.01.2020, more than 22.53 crore loans have been sanctioned since launch of

the scheme.Out of this, more than 15.75 crore loans extended to women , thereby 70%

of the total loan borrowers are Women

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Pradhan Mantri MUDRA Yojana (PMMY)

PMMY was launched on April 8, 2015 for providing loans up to 10 lakh to the non-

corporate, non-farm small/micro enterprises. These loans are classified as MUDRA

loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance

Banks, MFIs and NBFCs.

Under the aegis of PMMY, MUDRA has created three products namely 'Shishu',

'Kishore' and 'Tarun' to signify the stage of growth

28. EPFO cuts interest rate to 8.5% for 2019-20 from 8.65%; restored pension

commutation under EPS

The EPFO (Employees Provident Fund Organisation) has declined interest rate on EPF

deposits for 2019-20 to seven years low by 0.15% or 15 basis points fom 8.65% to

8.5%.

29. Swachh Bharat Mission (Grameen) Phase-II has been launched

The Union Minister for Jal Shakti launched Phase II of Swachh Bharat Mission

(Grameen) [SBM (G)]. Phase – II of the SBM(G) will focus on sustaining the gains made

under the programme in last five years in terms of toilet access and usage, ensuring

that no one is left behind. It will ensure that effective solid and liquid waste management

(SLWM) is instituted in every Gram Panchayat of the country.

Keypoints-

It will be implemented from 2020-21 to 2024-25 in a mission mode with a total

outlay of Rs. 1,40,881 crores. Of this Rs. 52,497 crore will be allocated from the

budget of Department of Drinking Water and Sanitation.

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The Solid and Liquid Waste Management (SLWM) component of Open

Defecation Free (ODF) Plus, ODF Plus, will be monitored on the basis of output-

outcome indicators for four key areas: plastic waste management, bio-

degradable solid waste management (including animal waste management),

greywater management and fecal sludge management.

30. Study by Bill and Melinda Gates Foundation and UNICEF indicates significant

improvement in Suvidha, Suraksha & Swabhimaan for rural women due to

SBM(G)

A study ‘Impact of the Swachh Bharat Mission (Grameen) on the convenience, safety

and self-respect of women in rural India’ done by UNICEF and Bill and Melinda Gates

Foundation (BMGF) on the impact of the SBM(G) on rural women shows increased

access to household toilets has led to the improvement in the Suvidha, Suraksha and

Swabhimaan of women in rural India.

Keypoints-

It has surveyed 6,993 women across the 5 states of Bihar, Madhya Pradesh,

Maharashtra, Rajasthan and Uttar Pradesh, in February, 2020.

93% women feel safer from assault by not going out in the open to defecate.91%

women save up to one hour of their day, earlier spent on walking to defecation

sites. 88% of women are proud to own a toilet.