·
Rebooting India (Penguin), by Nandan Nilekani
, co-authored with Viral Shah.
India is 4th largest user of cash in the world.
In the period 2010-11, the RBI spent nearly Rs 24 billion on printing money,
and an additional Rs 455 million on distributing that money nationwide. .
·
The End of Money
– by journalist David Wolman.
NO country in
the world is fully cash less however Belgium has the highest proportion of
cashless transactions in the world with
93 percent cashless transactions, followed by France -92 %, Canada 90,
UK 89, Sweden-89, Australia 86, Netherlands 85, US 80, Germany 76, South Korea
70, INDIA- 40%
·
No full stops in India - latest book by Mark tully former bureau
chief of BBC India.
·
Cashless methods
in India
. Cheques, IMPS, UPI(Unified Payment interface) , Mobile Banking, M-wallet, PPI(Pre
Paid Instruments), EFT/NEFT, Debit card, Credit cards, RTGS.
·
Earlier
demonitisations - The first
was when Rs1,000, Rs5,000, and Rs10,000 notes were taken out of circulation in
January 1946
(Before independence). All
three notes were reintroduced in 1954. Then under the prime ministership of
Morarji Desai
The
High Denomination Bank Notes (Demonetisation) Act, on Jan. 16, 1978, deemed
the Rs1,000, Rs5,000 and Rs10,000 notes illegal for the second time.
·
Prime minister
laid the foundation stone of Goa Greenfield (new) international airport on
13.Nov 2016. Minister of civil aviation – P Ashok Gajapathi Raju, Minister of
state civil aviation, Jayant sinha, Goa CM Laxmikant Parsekar.
·
EASE OF DOING
BUSINESS RANKING – INDIA and
INDIAN STATES
·
India's rank in the recently released global
Doing Business rankings was a lowly 130th, just one rank up from the previous
year's 'revised' ranking of 131st. Prime Minister Modi is keen to ensure that
India finds a place in the top 50 countries within a year or two.
·
Andhra Pradesh and Telengana have jointly topped
the 2016 all-India State/Union Territory-wise Ease of Doing Business rankings, while
last-year's topper Gujarat slipped to the
third spot. The Bank, along with the Centre's Department of Industrial Policy
& Promotion (DIPP) was involved in the process of reviewing the evidence
submitted by states/UTs regarding implementation of reforms for the rankings.
·
14th Nov. World Diabetes day. And
Children’s day.
·
Impact of demonetization of notes in India
– 1) The withdrawal of Rs500
and Rs1,000 notes could bring down inflation as some money goes out of
circulation, and pull down economic growth in the short term. 2) Bank deposits
will increase (specially CASA), this will bring excess liquidity in the banking
system and banks will be forced to bring down deposits as well as loan interest
rates. 3) deflationary trend will help RBI to bring down Repo rate, we will head towards low interest economy. 4)
Economic growth rate will come down in
the short term 5) Some parts of the currency gets permanently immobilised as a
result of demonetization means will never come back to the system. So RBI
liability in respect of currency will come down. 6) Certain sector which had a
role of black money like real estate, automobiles, jewellery etc. will be badly
hit. 7) Tax compliance will improve, which will increase Govt’s revenue, hence
govt. will have more money to expend. 8) counterfeit notes will be eliminated
and terrorist activities will be severely hit. 9) It will pave the way for
clean and fair elections. Role of black money in elections will be reduced significantly.
10) Big boost to cashless economy , digital
payments, e-wallets and credit debit cards.
·
Who has the
authority to withdraw currency notes in India . Central govt.
on the recommendation of Reserve bank of India can declare a currency or
part of currency as not legal tender, under section 26(2) of RBI act. RBI can
only recommend it. Public notice issued
by RBI in leading news paper said “ Government of India vide their notification no.
2652 dated nov.8 2016 have with drawn the legal tender status of RS. 500 and
1000 denominations of bank notes of the mahatma Gandhi series issued by th
Reserve Bank of India
till Nov. 8 2016. Hence Authority rests with Govt. of India.
·
Three main
reasons cited for withdrawal of currency- 1) to tackle the menace of
counterfeit currency 2) to nullify black money hoarded in cash. 3) To curb
funding of terrorism through fake and black money.
·
Features of
2000 and 500 new notes Mahatma Gandhi
series - Mangalyaan on 2000 and red fort on 500 note.
Color Magenta -2000 and stone grey -500. 7 angular bleed lines on 2000 and 5
angular bleed lines on 500 both sides. Swachcha bharat logo , Number small to
bigger size. Security thread changing colors from green to blue when tilted.
·
How American
economy will affect India.
– American economy has shown a
revival trend for quite some time. Economic growth and activities has
increased. Federal reserve is seriously contemplating interest rate increase
(similar to repo rate in India)
for quite some time. Under trump administration, public expenditure is expected
to increase so more borrowing by the govt through bonds. Bonds yield has
increased. More expenditure by govt
means more money in the economy. This will increase economic activities
and spur inflationary trend. Anticipating this, investors have already started
withdrawing funds from emerging market countries including India . this outflow has brought
the sensex down and rupee is weakening against dollar.
·
What is
bond yield. - A bond yield is the amount of return an investor realizes on a bond. A bond's current yield, also called "bond
yield," is the interest it pays annually divided by
the bond's price. When bonds prices in secondary
market gets reduced either because of
increase in interest rate in economy or possibility of increase in Govt.
borrowing then bond yield increases . In America both these factors are at
work.
·
Currency in
circulation in India.
Currently
Rs 17,54,000 crore worth of notes are in circulation according to the RBI’s database on the
Indian economy. Of this Rs 500 notes constituted almost 45% of the currency in circulation while 39% of the notes were of the
Rs 1,000 denomination. In value terms. Hence 86% of currency by value in India are of Rs 500 & Rs 1,000 denominations.
According to the RBI
press conference today, there are 16.5 billion ‘500-Rupee’notes and 6.7 billion
‘1000-rupee’ notes in circulation.
·
S4A- Scheme for sustainable structuring of
stressed asset. It is restructuring large ticket loans where the project is
up and running. Here the lenders are required to separate a sustainable loan
from an unsustainable loan. The bank would convert the unsustainable debt into
equity or equity related instruments. What are the pre-conditions to be
eligible for the scheme
The aggregate exposure of all lenders to the company should be more than Rs 500
crore.
The project should have commenced operations
An external consultant should endorse it as a viable project . How does RBI
define sustainable debt?
Simply put, the portion of the loan that can be serviced through the existing
cash flow is defined as sustainable debt. RBI has said that sustainable loan
should be at least 50% or more of the unsustainable debt. The loan can be
approved for S4A only if the Overseeing Committee endorses it.
·
Prime
minister Shri Narendra Modi visits japan .
Prime minister of Japan Shinjo Abe. Highlights – 1) Civil nuclear
agreement – India
will get nuclear fuel and technology to start new civil nuclear energy projects. this deal makes India the first non-NPT signatory to ink a
nuclear pact with Japan.
India
first conducted nuclear tests in 1974 which was code named 'Smiling Buddha'. A
series of nuclear tests were conducted again in 1998 known as the Pokhran-II.
The Indian PM, accompanied by Shinzo Abe, traveled to Kobe by the Shinkansen bullet train.
The same technology will be deployed for the Mumbai-Ahmedabad High-Speed
Railway.
GST . Union
Govt proposes 4 GST slabs. The Union Govt has proposed a
four-slab rate structure for the new indirect tax regime i.e. Goods &
Services Tax (GST) ranging from 0 to 26 per cent. It was proposed at the
meeting of the GST Council headed by Union Finance Minister Arun Jaitley and
included representatives from all states in New Delhi. The GST is proposed to
be levied at 6% (lower rate), 12% (Standard 1 rate), 18% (Standard 2 rate) and
26% (Higher rates) on the goods and services. It will be 0% on host of goods
and services, including food, health and education services, and 26% on luxury
items, such as fast-moving consumer goods and consumer durables.
The Constitution (One Hundred and Twenty-second Amendment)
Bill, 2016, for introduction of Goods and Services Tax (GST) in the country was
accorded assent by the President on 8th September, 2016, As per Article 279A of the
amended Constitution, the GST Council will be a joint forum of the Centre and the
States. This Council shall consist of the following members namely: -
a) Union Finance Minister... Chairperson
b) The Union Minister of State, in-charge of Revenue of
finance... Member
c) The Minister In-charge of finance or taxation or any
other Minister nominated by each State
Government... Members.
The Goods
and Services Tax (GST) Council is chaired by the Union Finance Minister and has
Minister of State in charge of revenue and state finance ministers as members.
Interestingly, every decision of the GST council needs to be
taken with a three-fourth majority. While the central government’s vote will
have a one-third weightage, the votes of all the state governments put together
will have a two-third weightage, thus making a near-consensus between the
centre and the states an imperative for any major decision. The GST will
subsume most of the indirect taxes of the centre and the states including
excise duty, service tax, value-added tax, entertainment tax, luxury tax and
octroi.
·
Typhoon
Megi Hits Taiwan., BRICS to set up credit rating agency.
·
India, Russia
sign 16 agreements across diverse sectors. Prime Minister
Narendra Modi and Russian President Vladimir Putin during the 17th India-Russia
Annual Bilateral Summit in Goa.
1. Agreement on cooperation in International Information Security.“2. MoU for
expansion of bilateral trade and economic cooperation.“3. Shareholder agreement
for establishing a Joint Venture to manufacture Ka-226T helicopter in India.“4. MoU
for developing smart cities in Andhra Pradesh and Haryana.“5. MoU for setting
up an investment fund of $1 billion by the National Investment and
Infrastructure Fund (NIIF) and the Russian Direct Investment Fund (RDIF).”
·
India, US Joint Military Training Exercise Yudh Abhyas 2016
concludes.
·
India, Russia
begin joint military exercise in Vladivostok.
The 8th edition of the Indo-Russia joint military exercise
‘Indra 2016’ was flagged off in Vladivostok in Russia.
Interestingly though, Russian troops arrived in Pakistan the same day for the
first-ever Pakistan-Russia joint military exercise dubbed “Friendship-2016″.
·
PM Narendra
Modi inaugurates Shaurya Smarak in Bhopal.
·
Nation
world’s largest solar power plant in TN. Adani Green Energy
(Tamil Nadu) Ltd, part of the Adani Group has dedicated to the nation the
world’s largest solar power plant of 648 megawatts (MW), set up at Kamuthi in
Ramanathapuram district of Tamil Nadu.
·
Irom
Sharmila announces formation of political party named PRJA.Human
rights activist Irom Sharmila announced the formation of her political party
named Peoples Resurgence and Justice Alliance (PRJA).
·
Gurgaon
officially renamed Gurugram. Telangana
Govt creates 21 new districts 21+10 old.
·
Delhi’s
Race Course Road renamed as Lok Kalyan Marg.
·
8th BRICS Summit concludes in Goa. The
eighth BRICS summit was held in Goa from 15
to16 October 2016. The summit concluded with adaptation of Goa Declaration. The
two day summit was attended by the Prime Minister Narendra Modi, Chinese
President Xi Jinping, Russian President Vladimir Putin, Brazilian President
Michel Temer and South African President Jacob Zuma. The theme for the summit
was “Building Responsive, Inclusive and Collective Solutions”. The ninth BRICS
Summit will be hosted by China
in 2017.
·
Bob Dylan
wins 2016 Nobel prize in literature. The 2016 Nobel Prize in
Literature has been awarded to American singer-songwriter Bob Dylan, for
“having created new poetic expressions within the great American song
tradition”. Dylan, 75, has won numerous awards, including twelve Grammys and
one Academy Award.
·
Nobel Peace
Prize awarded to Colombian President Juan Manuel Santos. The
Nobel Peace Prize for 2016 has been awarded to Co-lombian President Juan Manuel
Santos for his efforts to end his country’s 50-year civil war.
·
Three win
Nobel chemistry prize for molecular machines. Frenchman
Jean-Pierre Sauvage, British born J Fraser Stoddart and Dutch scientist Bernard
Feringa on 5th Oct won the Nobel Prize in chemistry for developing molecular
machines.
·
Thouless,
Haldane & Kosterlitz win the 2016 Nobel Prize in Physics. “for
theoretical discoveries of topological phase transitions and topological phases
of matter.”
·
Nobel Prize
in Medicine awarded to Yoshinori Ohsumi. The 2016 Nobel Prize
in Physiology or Medicine has been awarded to Yoshinori Ohsumi “for his
discoveries of mechanisms for autophagy.”
·
In the
First, Bank deposits cross Rs 100 lakh crore. According to the
data first time ever in September month of this year. With demand deposits
crossing Rs10 lakh crore and time deposits crossing the Rs 90 lakh crore mark..
·
Forex
reserves touch record high of $372 billion.
·
IMF revises India’s
economic growth upwards to 7.6% for FY17 and 18.
·
ISRO
successfully launches 8 satellites into two different orbits. Among
the eight satellites launched, three satellites were from India, three from Algeria
and one each from Canada and
United States.
·
Woman
wrestler Geeta Phogat appointed DSP in Haryana Police.
·
Antonio
Guterres appointed UN Secretary-GeneralPortugal’s former Prime
Minister Antonio Guterres was on 13 October appointed as the next
Secretary-General of the United Nations by the General Assembly. The 193 member
states of the General Assembly adopted the resolution by acclamation,
appointing 67-year-old Mr. Guterres as the ninth U.N. Secretary-General to take
over from Ban Ki-moon, whose tenure will end on December 31, 2016. Mr.
Guterres, who was Prime Minister of Portugal from 1995 to 2002, and the U.N.
High Commissioner for Refugees from June 2005 to December 2015, will assume his
new role on January 1, 2017 for a five-year term that can be renewed by member
states for an additional five years.
·
Jim Yong Kim
re-appointed as World Bank President. Jim Yong Kim has been re-appointed
as President of World Bank for a second five-year term beginning 1 July 2017.
·
Abu Dhabi
Crown Prince to be Chief Guest on 2017 Republic Day. The crown
prince of Abu Dhabi, Sheikh Mohammed bin Zayed Al Nahyan will be the chief
guest for the 68th Republic Day celebrations on 26 January 2017. Earlier Chief
guests of Republic Day parades: 2016- Francois Hollande (French President),
2015-Barack Obama (US President), 2014- Shinzo Abe (Japanese Prime Minister),
2013- Jigme Khesar Namgyel Wangchuck (King of Bhutan), 2012- Yingluck
Shinawatra (Then Prime Minister of Thailand), 2011- Susilo Bambang Yudhoyono
(Then President of Indonesia). It should be noted France
holds distinction of being the guest of honour for the maximum five times of Indian Republic
Day parade followed by Bhutan
(four times); Mauritius and Russia
(three times each).
·
World’s
largest radio telescope built in China. China has built
world’s largest radio telescope nicknamed Tianyan (Heavenly Eye” or “The Eye of
Heaven) or the five-hundred-metre aperture spherical radio telescope (FAST).
·
Book
President Pranab Mukherjee and Prime Minister Narendra Modi has launched Vice
President Mohd Hamid Ansari’s book titled “Citizen and Society”
·
Neeti aayog
index 2016- Agriculture marketing and
farmer friendly reforms index . Maharashtra adjudged most farmer friendly state in the
country as per neeti aayog index.
·
HDFC RAISED
500 crore through MASALA Bonds.
The masala bonds are instruments throudh Indian entities can raise funds by
accessing overseas capital markets in
rupee denominations.
·
SBI offers
loans at MCLR rates to new customers in
the brand name of Hope loan.
·
Banking data theft of ATM card was reported in India affecting
nearly 32 lakhs customers of five leading banks SBI, AXIS,ICICI, HDFC and YES
bank. Banks are either changing ATM cards or asking customer to change their
PIN immediately.
·
UDAN – Ude desh ka aam nagrik . Low cost flights
for regional connectivity. Maximum price capped at 2500/-.
·
RBI rates as
per monetary policy review 4th oct.
Repo rate cut by .25%. Now REPO rate is 6.25% , Reverse repo -5.75, Bank
rate and MSF 6.75 , CRR – 4%, SLR 20.75.
MONETARY
POLICY COMMITTEE – MEMBERS . The three are academics (Nominated by Govt. of
India)— Chetan Ghate, associate professor at Indian Statistical Institute; Pami
Dua, director, Delhi School of Economics; and Ravindra H Dholakia, professor of
economics at Indian Institute of Management (IIM), Ahmedabad. They will be
joined by three Reserve Bank members, making up a total of six, with Governor
Urjit Patel having a casting vote. The other two members are R Gandhi, deputy
governor in charge of monetary policy, and executive director Michael Patra.