CA : Feb 2020

2020-03-10 12:54 :54

NBFCs

RBI asks to add Chief Risk officer (CRO) for NBFCs > Rs 5000cr ID
- measure mitigate, advise all credit products,
- report only to MD, CEO or special board,
- no other responsibility fixed tenure transferrable done to prevent liquidity crisis.
Reserve Bank Innovation Hub RBIH to encourage fin innovation in sustainable manner through institutional set up.
Bank Recapitalisation : infusion of more capital in state run banks. ![[Pasted image 20230113084447.png]] ![[Development Financial Institution.canvas]]
RBI has exempted banks from maintaining [[005 Monetary and Credit Policy#Cash Reserve Ratio CRR |CRR]] for loans given to retail and [[Static - Indian Economy and issues relating to planning, mobilisation of resources, growth, dev and employment#Mo MSME|MSME]] for 5 yrs if loans were given b/w Jan 31 and July 31 20
[[008 International Economic Organisation and India#3 1 Asian Development Bank ADB|ADB]] has listed its [[003 Fiscal System or Public Finance in India#Masala Bonds |Masala Bond]]
India INX : 1st international exchange HQ in GIFT city.
National Career Service #scheme to bridge gap b/w job seekers and employers had one of the worst utilisation of funds per Par. Standing Commi
[[003 Fiscal System or Public Finance in India#Ways and Means Advance|Ways and means advance WMA]], RBI announced 60% inc in to state gov
Targeted long term repo operation (TLTRO) period of 1 - 3 yrs to banks at prevailing repo rate
Helicopter money : printing large sums of money and distributing it to public
RBI measures to tackle COVID -
- 1st round cut [[005 Monetary and Credit Policy#Repo |Repo]], [[005 Monetary and Credit Policy#Reverse Repo |Reverse Rep]], Targeted LTRO.
- 2nd round : further cut repo to 3.75%, 50% of LTRO towards small and mid-sized NBFC, and MFIs, refinance [[Static - Statutory, Regulatory, Various Quasi Judicial Bodies#NABARD NHB|NABARD, NHB]] , SIDBI, [[003 Fiscal System or Public Finance in India#Ways and Means Advance WMA |WMA]] to gov, relax NPA norms.
Monetary Policy #committee : usually meets 6 times a year constituted under RBI act of 1934. Has 6 mem gov nominates 3. RBI governor is ex-officio chair, Gov nominees are not officials.
Atmanirbhar Bharat Abhiyan
Voluntary Retention route VRR #scheme : encourage [[Stock Market#FPIs |FPIs]] to take long term investments in[[003 Fiscal System or Public Finance in India#Debt |Debt]] market, greater operational flexibility to chose debt instrumednts and exemptions from regulatory requirements Limit of 40k cr in VRR Govt and 35k in VRR Corp, tenure of 3 yrs min
#Report Resolving Insolvency Index, India’s ranking jumped 56 places to 52 in 2019 under the WB EODB ‘Doing Business’ report.
De-criminalization of technical & procedural violations under Companies Act.
Simplified Proforma for Incorporating Company Electronically (SPICe) introduced which extends 8 services. SPICe+ replaced it. Online incorporation of name etc of companies is done.
RUN Reserve Unique Name : web service for name reservation for companies & LLPs
Ratings downgrade : [[Stock Market#Shares and Bonds |Bonds]] issued by IN are now riskier than before, difficult to raise funds by gov; [[007 External Sector and Foreign Trade#Forex |Forex]] reserves inc from $5.8 bil in 1991 to $493 bil in May 2020. 64% is in securities, 28% in foreign central bank, 7.4% in foreign commercial banks, 653 tonnes of gold (March 2020)
Garib Kalyan Rozgar Abhiyan #scheme
- provide livelihoods to migrants who have gone home, esp rural citizens, 116 districts for 125 days campaign
- 50,000 crore worth public works, village to join through KVKs
International Comparison Program (ICP) largest worldwide data-collection initiative, under UN Statistical Commission(UNSC) to produce PPPs data and Price Level Indices PLI data. PLI = ratio of PPP and its market exchange rate
National Centre for Financial Education NCFE #body : adopt 5C Content, Community, Capacity, Communication and Collaboration; fin literacy content for school children and integrate it to professional vocational courses, monitoring and evaluation
Sin goods : reduce consumption, compensate society for health system cost, inc resource for health
GST Shortfall :
- states borrow certain amount at an interest rate financed through compensation cess on certain demerit goods.
- Challenges : 14% projected growth on GST was ambitious. Need : amend constitution to reduce period from 5 to 3 yrs, C gov fund this from own revenue, C borrow half of cess fund #important
- GST compensation issue on cess shortfalls : C should borrow, GST compensation act 2017 5 yr compensation, economic slowdown, expected rev gap of Rs 3 lakh cr, Cess taken from pan masala, tobacco products.
Start Up Village entrepreneurship Program SVEP #scheme : providing self-employment opportunities w/ fin assistance, business mgt, soft skills
EASE (Enhanced Access and Service Excellence) 2.0 banking reform index institutionalize CLEAN and SMART banking #scheme
International Financial Services Centre IFSC #body
- provides fund raising services for individuals, asset mgt and global portfolio diversification, wealth mgt, global tax mgt, Risk mgt operations, provides regulatory sandbox in GIFT city, Gujarat, statutory body under [[1.2 Inclusive Growth and Budgeting#Mo Finance scheme|Mo Finance]]
- Composition of 1 Chair, 1 mem each from RBI, SEBI, IRDAI, PFRDA, 2 from Central Gov, 2 other full time/part time mem; 3 yr term.
- Infinity Forum inaugurated to bring leading minds together from FinTech.
Domestic Systematically Important insurers D-SIIs by [[##IRDAI]] will be subjected to enhanced regulatory supervision, raise level of corporate governance, ID all relevant risk, promote sound risk mgt culture
KV Kamath #Committee
- to make recom on norms for resolution of COVID 19 related stressed loans set up by RBI for Debt restructuring of MSME:
- Graded approach to restructure based on severity, classify as mild, moderate, severe
- five fin parameter to gauge health of industries; 26 sectors identified, scrutinise loans above 1500cr
Additional Tier AT 1 Bond
- are unsecured perpetual bonds to meet Basel III norms
Economy Noble Prize : auction theory new format,
Insurance Ombudsman #scheme by GOI by IRDAI
[[005 Monetary and Credit Policy#12 OMO|OMOs]]
Mohanty #committee on extant ownership guidelines and corporate restructure for Private Sector Banks. Recom : raise cap of promoters stake, large corporates be allowed after amending 1949 Act, additional supervisory mechanism for them.
Negative Yield bonds issued by Central Banks or Govt, CN 1st time issued, massive liquidity injected by global central bank has driven up prices yield went down, investors hedge their risks here.
- NYBs are debt instruments that pay investor amt lower than purchase price of the bond.
- Investors pay borrowers to keep their money with them.
- Done during times of stress and uncertainity to protect from significant erosion of wealth.
- Bond price and Yield are inversely related higher the price of bond lower is the yield.
Various types of recoveries : Z, V, U, W, L, J - V is the fastest. K Shaped recov when different sections recover at diff rates -> Secured income/ higher income households has seen savings inc -> fuel future consumption, unsecured/lower income households ones have been permanently been hit.
Atmanirbhar Bharat Rojgar Abhiyan : Gov will pay 24% contribution towards EPF for wages below 15,000 who lost employment due to COVID.
Asset under Management AUM : total value of all fin assets mgd on behalf of clients.
Recognition of Prior learning by Skill IN under SANKALP of MSDE.
Zero Coupon Bonds : special G secs that have no interest, non-transferable, recap bonds, non-tradeable ^0ccc32
Bad Banks : buys NPAs from Banks at market rates, Bank writes NPA off from balance sheet.
DG of Trade Remedies under Mo Commerce and Industry reviews anti-dumping duties on goods it is a quasi-judicial body.
G-SAP Govt : Securities Acquisition Program #scheme by RBI will purchase gov bonds worth 1 lk crore in 1st quarter of FY22.
- Will provide certainity to MF market -> reduce volatility in bond prices. Also dec aggregate cost of borrowing for centre and states.
State of Working India SWI #report by Azim Premji University : pandemic forced people out of their formal jobs to causal work, sudden inc in poverty, most in the manufacturing sector.
IPO Grey market is over the counter market where IPO shares and applications are traded before they become officially available for trading in the stock market. ==No regulations govern it==. Kostak rate is the price at which investor buys IP before it is listed.
Retail Direct #Scheme by RBI. Retailers can open direct gitl accounts directly w/ RBI to inc accessibility to GSecs -> allows them to buy, sell securities online in both primary and secondary markets.
Global Survey on Digital and Sustainable Trade Facilitaion by UNESCAP binannual report every 2 years to review progress of trade facilitation reforms. Various schemes implemented to enhance transparency are
- AEBAS : Aadhar Enabled Biometric Attendance for real time monitoring employee attendance
- e-Office : inter govt and intra govt transparency in transactions.
- GeM portal : for monitoring and buying supplies.
Non Tariff Barriers are trade restrictions as part of a countries political or economic strategy. Ex Quotas, embargo, sanction, levies, licenses, voluntary export restraints. Tariff barriers are OTH tax or duty imposed.
Early Harvest Deals EHD : precursor to FTA trading partners reduce tariff barriers on some goods to promote trade.
National Monetisation Pipeline NMP #scheme : infra assets of govt be sold over next 4 yrs, will unlock value in Brownfield/lying vacant projects. Ex in Roads, Railways, Power.
Future Mobility park : Make use of advances in data science, AI and sensing technology to provide cleaner transport, automation etc.
International Central Securities Depository ICSD settles trades in international securities such as Eurobonds. Ex Clearstream, Euroclear. It does things like safekeeping, Deposti and Withdrawal, Dividend, interest calculation etc.
Account Aggregator : NBFC regulated by RBI that helps individual securely and digitally access and share info from one fin institution to another.
IPO Grey market is unofficial market where IPO shares are bought or sold before they become available for trading on stock market. No one regulates it. Rate at which investor buys IPO before listing is called Kostak rate.
2 New RBI Schemes launched :
- RBI Retail Direct #scheme : to enhance acccess to gov securities market for retail investors. Offers new avenue for directly investing in securities issued by Centre or States. Free of cost accounts for investors to trade on gsecs.
- Reserve Bank Integrated Ombudsman #scheme RB-IOS : aimed at further improving grievance redressal mechanism for resolving complaints. Theme is to estd ‘One Nation - One Ombudsman’ with one portal, one email and one address for customers. Integrates 3 ombudsman schemes into 1. Removes jurisdictional limitations and limited grounds for complaints.
SEBI has stopped trading in derivative contracts of various farm commodities viz non basmati paddy, wheat, chana, mustard, soya bean, crude oil palm and moong for 1 yr.
RBI Working Group on digital lending recom :
- Separate legislation be enacted to oversee such lending and sep nodal agency for it.
- Self regulatory org be set up for its participants
- All loan disbursement to be made directly into bank accounts.
- Data collection must require prior consent of borrowers and be stored locally
Offline digital payments b/w Rs 200-2000 does not require internet or telecom connectivity. RBI has recently allowed it.
- Can be done using cards, wallets, mobile devices etc.
- Not require Additional factor of authentication.
Domestic-Systematically Important Bank D-SIBs are important for country’s growth. RBI notifies such banks taking into account size, complexity, lack of substitutability etc. Criteria is to have assets of them should be 2% of GDP.
- They need to maintain higher share of risk-weighted assets (RWAs) as Tier I equity. SBI needs to maintain Additional Common Equity Tier 1 at 0.60% of RWAs.
![[Pasted image 20221222201910.png]]

CA : April 2019 - Jan 2020

2019-04-28 11:33 :23

7th Economic census 2019 by MoSPI : w/ CSC of MEITY first done in 1976. Covers all entrepreneurial unit engaged in production. Used for computing their contri to GDP #report
Service Trade Restrictiveness Index (STRI) by OECDs. India has called it biased against developing countries #report
- shows service sector restrictive but it has got most FDI
- Regulatory measure introduced in one area decreases rating in other,
- data is arbitrarily generated
==35% IN graphite reserves Arunachal J&K Jharkhand Odisha per GSI==
Masala Bond : Rs denominated bond; raised by an overseas body who would want Rupee. But only for dev of township and affordable housing
Special regulator supervisor cadre to strengthen RBI for NBFC, urban coop banks, check default fraud as growing complexity diversity in sector
Large modern Currency Chest(CC) service charge inc Rs 5 to 8/100 piece deposit in non CC branch, Currency Chest is authorised by RBI deposit notes/coin limit is Rs 1000cr
RBI OMO inject Rs 15,000 cr through gov bond

Public Labour force survey (PLFS) #important
- by NSSO 2019 and 2020. IN first computer based survey
- UR rural + urban highest 1972 Since 2012 most among rural men
- Urban 7.8 from 7.7 Rural 5 from 5.3, UR Urban fem male
- 15-29 yr most affected esp educated.
New RBI policy on resolution of stressed asset :
- made voluntary for lenders to take defaulters to bankruptcy code
- gives 30 days time to resolve dispute
Reciprocal Trade Agreements (RTA) bilateral/regional : inc market access, mem grant special adv each other, eg GSP, FTA, Custom Union Common Market, [[005 Monetary and Credit Policy#Financial Dev and Stability Council FSDC|Fiscal Stability and Development Council (FSDC)]]] - Meity secy now also included in Members.
Cess levied on tax (direct + indirect) payable not on income, credited to CFI to meet specific purpose cannot be spend on anything else ex. Env cess, infra cess etc.

Trade Infrastructure for Support #Scheme to enhance export competitiveness - bridge infra gaps - last mile and first mile connectivity by Mo Commerce

International Cooperation #Scheme under Mo MSME enhance their competency and explore new tech to improve capacity, fin assistance is given
Overseas/sovereign bond :
- Gsecs issued to finance fiscal deficit, manage temporary cash mismatches.
- traded in secondary market and denominated both in domestic and foreign currency. In India it is done in domestic.
- risks quick increase in forex reserves make rupee strong -> discourage exports
- Sovereign Bonds to be issued by Gov. External Borrowing is done because domestic borrwoing is crowding out.
- More
SEBI is audited by CAG and surplus goes to General Fund of SEBI. Gov wants to transfer surplus to CFI, leaves only a reserve fund.
Fit and Proper criteria by RBI #important #scheme :
- SBI+ nationalised bank to form Nomination and Remuneration committee for appointing directors;
- 3 yr term maximum for 2 terms, 35-67yrs old
Monetary policy : use of monetary instruments to achieve financial goals. By RBI Act, 1934 ex Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) Bank Rate etc.
Partial Credit Guarantee #Scheme for PSB :
- gov provide 10% of amt defaulted for the 1st time after the purchase of the a high rate pooled asset by the PSB,
- to address temporary assets liability mismatches and distressed sale
Negative Rate policy : institutions are required to pay interest for parking excess reserves. Done in countries with low inflation as it impedes spending.
RBI regulatory Sandbox : businesses can test innovative products under relaxed regulatory conditions. Minimum net worth of ₹25 lakh incorporated and registered in the country or banks licensed
==IN fastest growing fintech market== projected that $1 trillion transaction by 2029 presently 3rd largest
Existing Microcredit Model: very small loans to impoverished borrowers eg entrepreneurs, rural labourers etc connect them to larger economy. It is failing.
Advisory Board for Banking frauds #body :
- (CVC) has constituted it for fraud of over ₹50 crore in Delhi
- (RBI) will provide required secretarial services, logistic and analytical support necessary funding.
RBI Panel on Economic Capital Framework:
- ECF refers to risk capital required by central bank to counter unforeseen risks.
- transfer of record Rs 1.76 lakh crore dividend and surplus reserves was recom by Bimal Jalan Committee
- RBI does not pay taxes on its earnings and profits
Merger of Banks : 10 PSB into 4; PNB, OBC and United Bank of India — 2nd largest bank.
CBDT has entered into multiple Advance Pricing Agreements (APA) under Fin act of 2015. APA are b/w taxpayer and tax authority determining the tax pricing methodology for pricing future international transactions.
Compulsory for banks to link their new floating rate home, auto and MSME loans to an external benchmark (chose 1 from 4 i.e. repo etc for borrowers to get benefit.
Bharat Bill Payment System run by NPCI is a one stop bill payment platform.
[[1.2 Inclusive Growth and Budgeting#Sovereign Gold Bond Scheme SGB |SGB]]

Asia Pacific Trade and Investment #Report 2019 by UNESCAP and UNCTAD. Findings : Non-tariff measures have increased -> affected 58% of trade and have direct impact on trading partners

IN launched BHIM 2.0 w/ additional features vis new languages, increased limit of high value transaction, donation gateway, link multiple bank account, apply for IPO, 3 levels of authentication etc. It hasUPI based payment interface by NPCI
Credit Suisse Group released 10th annual Global Wealth #Report. CN overtakes US w/ more people in top 10% of global wealth distribution, per IN adult it is Rs 10.31 lkh, accounts for 2% of global millionaires.
Merger of BSNL and MTNL : What will happen? allotment of 4g spectrum, debt restructuring, reducing employee cost, monetising assets. Why was it done? was uncompetitive, Overstaffed, expenses on managing employees, interference of DoT
Adjusted Gross Revenue(AGR) : ==usage and licensing fees== charged by DoT on telecom operators ==calculated on all revenues earned by telco==. SC has upheld the AGR calculation formula.
- Center has provided a 4 yr moratorium to pay dues on AGR and Spectrum charges. Option to convert the interest on moratorium into equity.
- Definition of AGR changed to remove all non-telecom rev.
Center for monitoring Indian Economy CMIE #report on Unemployment. Most decline in agri and female workers. CMIE is an independent think tank.
Global Microscope #report on Fin Inclusion by Economist Intelligence Unit EIU. Obs :
- IN among top nations with most condusive env for fin inclusion, overall it has improved.
- Steps taken by IN RBIs draft National Strategy for FI, high level committee to review existing status of digitisation etc.
Moody’s has cut IN outlook rating from stable to negative due to inc in fiscal deficit, NBFI’s crisis spread to retail, automobile, home sales etc.
Int Institute of Management SWZ’s World Talent Ranking #report . SWZ 1st IN slipped to 59th due to low quality of life, low expenditure on education and health and lesser women’s part in workforce.

Fiscal Deficit
Counter Cyclical Capital Buffer CCyB allows banks to hold capital when credit is growing to use it when financial cycle is down

Mo Mines

#scheme

2020-06-12 11:41:43

Pradhan Mantri Khanij Kshetra Kalyan Yojana PMKKKY

launched to provide for the welfare of areas and people affected by mining related operations
objective : To minimize/ mitigate the adverse impacts of mining
implemented by the [[2.1 Govt Policies and Intervention in sectors#^d39fa1|District Mineral Foundations (DMFs)]] set up as a Non-profit. It would be operated through funds that are collected under DMF.
60% of the funds will be utilised for high priority areas like drinking water etc rest for physical infrastructure.

Mo Railways

#scheme 2020-06-12 11:49:42

Avataran

is an umbrella program consists of 7 missions
Mission 25 Tonne to inc revenue by augmenting carrying capacity.
Mission Zero Accident
Mission PACE (Procurement and Consumption Efficiency)
Mission Raftaar - inc avg speed of freights trains
Mission Hundred for sidings
Mission Beyond book-keeping
Mission Capacity Utilisation

Rashtriya Rail Sanraksha Kosh or Rail Safety Fund receives allocation from Central Road Fund.

Mo MSME

#scheme 2020-06-12 11:40:11

What Are MSMEs

#todo
Contributes to 29% of Indian GDP Employ 120million people and make 45% of overall exports from India
MSME contribute about 6.11% of mfg GDP and 24.63% of GDP from service activities 33.4% of Indias mfg output.
20% of MSME are from from rural areas.
Udyam is the system of registration pre requisite for any MSME to avail concessions done online based on self declaration. Uploading of proofs not necessary.
Export of goods and services not to be counted while calculating turnover
Champions control room across country for facilitating registration.
MSME Samadhaan portal launched to clear delayed payments to MSMEs.

![[2.1 Govt Policies and Intervention in sectors#^b8651c]]

Challenges :
- High no of pending cases in MSME Samdhaan portal
- Difficult to access formal credit.
  - Women owned MSMEs have difficultu accessing formal finance
- Infra issues like high cost of land, diff to get power or water connection, logistics issue etc

Zero Defect and Zero Effect (ZED)

#scheme

Its goals are to develop an ecosystem for Zero Defect Manufacturing in MSMEs, and improve quality of products.
MSMEs are given financial assitance.
Quality Council of India has been appointed as implementing agency.
Gov institutions and Registered Industry Associations can only apply.

Khadi Vikas Yojana and Gramodyog Vikas Yojana

8 different schemes of Khadi Village industry was merged into Khadi Vikas Yojana’ and ‘Gramodyog Vikas Yojana’.

It includes :

Market Promotion & Development Assistance (MPDA)
Interest Subsidy Eligibility Certificate (ISEC)
Workshed, Strengthening Weak Infra
Village Industries Grant etc

Rozgar Yukta Gaon

component under Khadi Gramodyog Vikas Yojana introduced for enterprise based operation in Khadi sector

PMs Employment Generation Programme PMEGP

aimed at generating self-employment opportunities through ==establishment of micro-enterprises in non-farm sector==.
KVIC is nodal agency
target of 75 projects per district awarded.
high rate of subsidy 25-35% for women, SC/ST, OBC etc
loan of up to Rs.1 crore with subsidy of 15%
Mandatory geo tagging of units
Merger of Coir Udyami Yojana in PMEGP

Credit Linked Capital Subsidy Scheme

inc access of MSMEs to capital
based on the recom of the U K Sinha #committee
aims to raise MSME contribution to GDP from current 29% to 50%
provides an upfront subsidy of 15% on institutional credit up to Rs 1 crore
additional 10% subsidy for SC-ST entrepreneurs
Scheme is a demand driven one without any upper limit on overall annual spending

Udyog Aadhaar Memorandum Portal

started for registartion of MSME entrepreneurs, will improve EoDB

MSME Innovative Scheme

For Incubation -> promote creatvitiy and adoption of latest tech, Design -> provide expert advice and IPR -> to improve IP culture.
CHAMPIONS : for making smaller units big

Static - Indian Economy and Issues Relating to Planning, Mobilisation of Resources, Growth, Dev and Employment

2020-06-09 18:58:27

M Visvesvaraya proposed the 10 year plan for IN in 1934 1st attempt at planning - proposed to double the income of country
National Planning Committee NPC setup in 1938 under J Nehru emphasis of state owned heavy industries
Bombay plan - 1944 by leading industrialists - expansion of textile and consumer industries
MN Roy - Peoples plan, SN Agarwal - Gandhian Plan
Long term Goals of 5 year plans were Growth, Modernisation, Self-Reliance and Social Justice
1st Plan(1951-56) - stress on agriculture, 3.61% growth target of 2.1%
2nd Plan (1956-61) - estd of heavy industries/capital goods, based on Nehru-Mahalanobis model, achieved target
3rd Plan(1961 - 66) - balance industry and agri, aim was self-sustaining economy, 1st time borrowing from IMF, 62,65 wars and drought led to failure
Annual Plans (66-67, 67-68, 68-69) - inflation, floods, forex crisis, political instability due to death of Nehru, Shastri aka plan holiday
4th Plan (1969-74) - aim growth with stability, social emphasis education and employment, bank nationalisation, abolition of privy purses, green rev, oil shock, 71 war
5th plan (1974-79) - aim growth for social justice, cut short by Janata Party Gov its 6th FYP was removed from official records, 79-80 was Plan Holiday
Rolling Plan adopted in 1962 - b/w normal plan and plan holiday, are flexible and able to overcome the rigidity of fixed FYPs
6th Plan (1980-85) - Garibi Hatao, also emphasis on infrastructure, 5.7% growth more than target,
7th Plan (1985-90) : rapid growth in food grain production and employment, beginning of liberalisation, long term fiscal policy started, 3 year exim policy 1st time announced
2 Plan holidays 1990-91 and 1991-92 due to economic crisis
8th Plan (1992-97) : based on RaoManmohan Singh Model, Disinvestment started joined WTO, Constitutional basis to Panchayati Raj, SEBI made statutory body
Indicative Planning - Private sector given substantial role
9th FYP (1997-02) - political instability, East Asian Fin crisis 1997, Privatisation of PSU started
10th FYP (2002-07) - aim was 8% GDP growth, reduce poverty by 5%, gainful high quality employment, reduce gender gap in literacy
11th FYP (2007-2012) - Recession, Sovereign debt crisis in Greece, thrust was agri, education and infra
12th FYP (2012-17) - 8% growth rate,
NITI Aayog
- Governing council consists of CM of all states/Uts and Lt Govs
- Team India wing engages states and the Centre
- Knowledge and Innovation Hub - think tank capabilities
- 4 ex officio mem from Union council of ministers nominated by PM
- Part time mem - max 2 from leading univs
Planning Commission did not have reps from States/UT’s, PC was operational arm of the National Dev Council NDC a political institution, PC had more mem all were full time, PC had allocative functions

Corresponding Chapter from Notes/ Mapping Mains Syllabus

Indian Economy :
- [[001 Economy and Economics]]
- Economic Survey - 2022-2023 Summary
- Budget 2023-2024, 2022-2023.
- Ongoing Issues from Newspaper Notes.
Issues relating to Planning, mobilisation of resources,
- [[002 Planning]]
Issues related to Growth, Development and Employment :
Section titled “Issues related to Growth, Development and Employment :”

Nationalization of Banks Short

2019-12-28 10:42:32

Nationalisation of banks in 1969 14 private banks, six in 1980.

Why?

Large share of noninstitutional sources eg landlords,
traders and moneylenders failed to meet the credit needs of the rural areas;

Policy after 1969

new branch licensing policy -> branches had to be opened in unbanked rural areas
priority-sector lending was introduced : whereby 40% set aside credit for agriculture, MSME, housing etc,
differential interest rate scheme for the weakest sections,
Lead Bank scheme : a district was assigned to one bank
RRBs estd in 1975 to enlarge the supply of institutional credit
(NABARD) in 1982 to regulate cooperative banks and RRBs

Outcomes:

outstanding debt of rural households increased
growth of financial intermediation, bank deposits, gross savings rate rose, gross investment rate rose,
demonstrated the utility of monetary policy in furthering redistributionist goals

Post 1991 Narasimham Committee :

monetary policy should be divorced from redistributionist goals.
banks should be free to practise commercial modes viz profitability as the primary goal, open and close branches as they desired
Priority sector guidelines were diluted, rate regulations were removed

Impacts:

branches closed
growth of agricultural credit fell
total outstanding debt of rural households fell post;
2004 policy to double the flow of agricultural credit within three years
new branch authorisation policy,
Permission if RBI was satisfied that bank would serve underbanked areas
By 2011 mandated that at least 25% of new branches located in unbanked centres

Challenges:

encouraged public banks to lend more for retail and personal loans,
high-risk sectors banks funded by short-term deposit liabilities were taking on exposures that involved long-term risks
rising non-performing assets
fear of fiscal deficits

date updated: ‘2021-07-28T21:02:21+05:30’

PYQ : Indian Economy, Budget Mobilisation

2020-10-30 16:43:33

How are the principles followed by the NITI Aayog different from those followed by the erstwhile Planning Commission in India?	2018
Among several factors for India’s potential growth, savings rate is the most effective one. Do you agree? What are the other factors available for growth potential?	2017
Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports rather than capital-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports.	2017
What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyze and suggest measures for inclusive growth.	2017
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.	2016
Comment on the challenges for inclusive growth which include careless and useless manpower in the Indian context. Suggest measures to be taken for facing these challenges.	2016
The nature of economic growth in India in described as jobless growth. Do you agree with this view? Give arguments in favour of your answer.	2015
Craze for gold in Indians have led to a surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization Scheme.	2015
Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages shortsightedness and contributes to wide disparities between the rich and the poor. In this light, would it be correct to believe and adopt capitalism driving inclusive growth in India? Discuss.	2014
With a consideration towards the strategy of inclusive growth, the new companies bill, 2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also discuss other provisions in the bill and their implications.	2013
“Success of ‘Make in India’ programme depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments.	2015
While we found India’s demographic dividend, we ignore the dropping rates of employability. What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain.	2014

Answers and Analysis

Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India. (क्ा बाज़ार अथि्भव्यवस्ा के अन्ग्भत समावेिी नवकास सं भव है? भारत में आर्थिक नवकास की प्ात्प्त के ललए नवत्ीय समावेि के महत्व का उल्ेख कीजजए।) 2022

Economic growth in the recent past has been led by increase in labour productivity. Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity. (“हाल के हदनो का आर्थिक ं नवकास रिम उत्ादकता में वृगधि के कारण सं भव हआ है।” इस कथिन को समझाइए । ऐसे सं वृगधि प्नतरूप को प्स्तानवत कीजजए जो रिम उत्ादकता से समझौता हकए नबना असधक रोजगार उत्चत् में सहायक हो।) 2022

Explain the difference between computing methodology of India’s gross domestic product (GDP) before the year 2015 and after the year 2015. (भारत की सकल घरेलू उत्ाद (जी. डी. पी.) के वष्भ 2015 के पूव्भ तथिा वष्भ 2015 के पचिात पररकलन नवसध में अंतर की व्याख्ा कीजजए।) 2021

Do you agree that the Indian economy has recently experienced a V-shaped recovery? Give reasons in support of your answer. (क्ा आप सहमत हैं की भारतीय अथि्भव्यवस्ा ने हाल ही में V-आकार के पुनरुत्ान का अनुभव हकया है? कारण सहहत अपने उत्र की पुनटि कीजजए।) 2021

What are the salient features of the National Food Security Act, 2013? How has the Food Security Bill helped in eliminating hunger and malnutrition in India? (राटिट्ीय खाद्य सुरक्ा असधननयम, 2013 की मुख् नविेषताएँ क्ा हैं ? खाद्य सुरक्ा नवधेयक ने भारत में भूख तथिा कु पोषण को दूर करने में हकस प्कार सहायता की है?) 2021

Explain intra-generational and inter-generational issues of equity from the perspective of inclusive growth and sustainable development. (समावेिी संवृगधि एवं सं पोषणीय नवकास के पररप्ेक् में, आंतपीढ़ी एव अंतपीढ़ी साम्ा के नवषयो की ं व्याख्ा कीजजए।) 2020

Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (सं भाव्य स.घ.उ.(जी.डी.पी.) को पररभानषत कीजजए तथिा उसके ननधा्भरको की ं व्याख्ा कीजजए। वे कौन-से करक हैं, जो भारत को अपने सं भाव्य स.घ.उ. (जी.डी.पी.) को साकार करने से रोकते रहे हैं?) 2020

Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (क्ा आप इस मत से सहमत हैं की सकल घरेलू उत्ाद (जी. डी. पी) की स्ायी सं वृगधि तथिा ननम्न मुद्रास्ीनत के कारण भारतीय अथि्भव्यवस्ा अच्छी स्स्नत में है ? अपने तकमों के समथि्भन में कारण दीजजए।) 2019

It is argued that the strategy of inclusive growth is intended to meet the objectives of inclusiveness and sustainability together. Comment on this statement. (यह तक्भ हदया जाता है की समावेिी सं वृगधि की रणनीनत का आिय एकसाथि समावेशिता और धारणीयता के उदेश्यो को प् ं ाप्त हकया जाना है । इस कथिन पर हिपण्ी कीजजए।) 2019

How are the principles followed by the NITI Aayog different from those followed by the erstwhile Planning Commission in India? (भारत में नीनत आयोग द्ारा अनुसरण हकए जा रहे ससधिान् इससे पूव्भ के योजना आयोग द्ारा अनुसररत ससधिान्ो से ं हकस प्कार शभन्न हैं?) 2018

Among several factors for India’s potential growth, savings rate is the most effective one. Do you agree? What are the other factors available for growth potential? (भारत की सं भाव्य सं वृगधि के अनेक कारको में बचत दर, सवा्भसधक प्भावी है । क्ा आप इससे सहमत हैं ? सं वृगधि सं भाव्यता के अन् कौन से कारक उपलधि हैं ?) 2017

Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports rather than capital-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports. (रिम-प्धान ननया्भतो के ल ं क् को प्ाप्त करने में नवननमा्भण क्ेत्रक की नवफलता के कारण बताइए । पूंजी-प्धान ननया्भतो की अपेक् ं ा असधक रिम-प्धान ननया्भतो के ल ं लए, उपायो को सुझाइए।) ं 2017

What are the salient features of ‘inclusive growth’? Has India been experiencing such a growth process? Analyze and suggest measures for inclusive growth. (‘समावेिी सं वृगधि’ के प्मुख अशभलक्ण क्ा हैं ? क्ा भारत इस प्कार के सं वृगधि प्रिम का अनुभव करता रहा है ? नवश्ेषण कीजजए एवं समावेिी सं वृगधि हेतु उपाय सुझाइये।) 2017

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. (प्धान मं त्री जन-धन योजना (पी० एम० जे० डी० वाइ०) बैंकरहहतो को ं सं स्ागत नवत् में लाने के ललए आवश्यक है। क्ा आप सहमत हैं हक इससे भारतीय समाज के गरीब तबके के लोगो का ं नवत्ीय समावेि होगा? अपने मत की पुनटि के ललए तक्भ प्स्तुत कीजजए।) 2016

Comment on the challenges for inclusive growth which include careless and useless manpower in the Indian context. Suggest measures to be taken for facing these challenges. (भारतीय सन्भ्भ में समावेिी नवकास में ननहहत चुनौनतयो, ज ं जनमें लापरवाह और बेकार जनिक्ति िागमल है, पर हिप्पणी कीजजए। इन चुनौनतयो का सामना करने के उपाय ं सुझाइए।) 2016

The nature of economic growth in India in described as jobless growth. Do you agree with this view? Give arguments in favour of your answer. (हाल के समय में भारत में आर्थिक सं वृगधि की प्कृ नत का वण्भन असिर नौकरीहीन सं वृगधि के तौर पर हकया जाता है। क्ा आप इस नवचार से सहमत हैं? अपने उत्र के समथि्भन में तक्भ प्स्तुत कीजजए।) 2015

Craze for gold in Indians have led to a surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization Scheme. (सोने के ललए भारतीयो के उन् ं ाद ने हाल के वषमों में सोने के आयात में प्ोत्ष्भ (उछाल) उत्न्न कर हदया है और भुगतान-सं तुलन और रुपए के बाह्य मूल पर दबाव डाला है। इसको देखते हए, स्ण्भ मुद्रीकरण योजना के गुणो का परी ं क्ण कीजजए।) 2015

“Success of ‘Make in India’ programme depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments. (“भारत में बनाइए’ काय्भरिम की सफलता, ‘कौिल भारत’ काय्भरिम और आमूल रिम सुधारो की सफलता पर न ं नभ्भर करती है।” तक्भ सम्त दलीलो के सा ं थि चचा्भ कीजजए।) 2015

While we found India’s demographic dividend, we ignore the dropping rates of employability. What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain. (‘‘जजस समय हम भारत के जनसांहखकीय लाभांि को िान से प्द्भशित करते है, उस समय हम रोजगार-योग्यता की पतनिील दरों को नजरअंदाज कर देते है।’’ क्ा हम ऐसा करने में कोई चूक कर रहे है? भारत को जजन जॉबो की बेसबरी से दरकार है, वे जॉब कहां से आएंगे? स्प ं टि कीजजए।) 2014

Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages shortsightedness and contributes to wide disparities between the rich and the poor. In this light, would it be correct to believe and adopt capitalism driving inclusive growth in India? Discuss. (पूंजीवाद ने नवश् अथि्भव्यवस्ा का अभूतपूव्भ स्ृगधि तक हदिा-ननददेिन हकया है। परंतु हफर भी, वह असिर अदूरदर्िता को प्ोत्ाहहत करता है तथिा धनवानो और न ं नध्भनो के बीच ं नवस्तृत असमताओ को ब ं ढ़ावा देता है। इसके प्काि में, भारत में समावेिी संवृगधि को लाने के ललए क्ा पूंजीवाद में नवश्ास करना और उसको अपना लेना सही होगा? चचा्भ कीजजए।) 2014

With a consideration towards the strategy of inclusive growth, the new companies bill, 2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also discuss other provisions in the bill and their implications. (समावेिी नवकास की रणनीनत को ध्ान में रखते हए नए कम्पनी नबल 2013 ने ‘सामूहहक सामाजजक उत्रदाययत्व’ को अप्त्यक् रूप से अननवाय्भ कत््भव्य बना हदया है। इसके गंभीरता से पालन कराने में अपेशक्त चुनौनतयो की ं नववेचना कीजजए। इस नबल की अन् व्यवस्ाओ और उनकी उलझनो ं की भी च ं चा्भ करें।) 2013

CA : Feb 2020

CA : Feb 2020

NBFCs

CA : April 2019 - Jan 2020

Mo Mines

Pradhan Mantri Khanij Kshetra Kalyan Yojana PMKKKY

Mo Railways

Avataran

Mo MSME

What Are MSMEs

Zero Defect and Zero Effect (ZED)

Khadi Vikas Yojana and Gramodyog Vikas Yojana

Rozgar Yukta Gaon

PMs Employment Generation Programme PMEGP

Credit Linked Capital Subsidy Scheme

Udyog Aadhaar Memorandum Portal

MSME Innovative Scheme

Static - Indian Economy and Issues Relating to Planning, Mobilisation of Resources, Growth, Dev and Employment

Issues related to Growth, Development and Employment :

Nationalization of Banks Short

Why?

Policy after 1969

Outcomes:

Post 1991 Narasimham Committee :

Impacts:

Challenges:

PYQ : Indian Economy, Budget Mobilisation